Knife River Inc. has submitted a petition to annex land to the City of Billings under 7-2-4600 MCA. The subject property is 16.94 acres in size and is located on the South Frontage Road, west of the intersection of Sugar Avenue and South Frontage Road. The property is addressed as 3128 South Frontage Road. The parcel is currently undeveloped and has been used as a pig farm and gravel pit in the past. The property owner is requesting annexation in order to obtain City services for future development of the property. There are no plans to develop the property at this time, according to the owner's agent, Land Use Consulting. The property is located within the five year annexation area of the City's Limits of Annexation Map. The Council acknowledged receipt of the petition at its August 22, 2011, meeting. The Council will hold a public hearing and take action on the annexation request at this meeting.

The City Council may approve or deny a petition submitted by owners of 50% of the real property in the area to be annexed (7-2-4601 (3)(b), MCA).

The City can provide municipal services to the subject property. It will be the responsibility of the owner to extend City water and sewer services to the property. Staff is recommending a condition of approval for this annexation be that a development agreement between the City and the property owner be executed before water and sewer infrastructure is extended to the site to clarify how services will be provided. If the proposed annexation is approved, the property may be developed in the future and will contribute additional tax revenue to the City.

The 16.94-acre subject property is located on the South Frontage Road, west of the intersection of Sugar Avenue and South Frontage Road. The property is addressed as 3128 South Frontage Road. The Frontage Road adjacent to this property is already within the City Limits and does not need to be annexed with this property. The City Limits are on the north side of the subject property and it is within the red boundary of the limits of annexation as specified by the Annexation Map last adopted by the City Council on May 23, 2011.

PROCEDURAL HISTORY
• On July 15, 2011, the annexation petition was submitted to the Planning Division.
• On August 22, 2011, the City Council acknowledged receipt of the annexation petition and set a public hearing date for September 12.
• On September 12, 2011, the City Council will conduct the public hearing for the annexation and may take action on the request.
• On September 26, 2011, if the resolution to annex is approved by the City Council, a public hearing and first reading of an ordinance to expand the Ward I City Council boundary will be conducted.
• On October 11, the City Council will conduct the second and final reading for the ordinance expanding the ward boundary.

Annexation by petition does not require notification of adjoining landowners; however, it does require the City Council conduct a public hearing. Notice of the public hearing was posted on the property on August 26, 2011, and published in the Billings Times on August 24, 2011. The Planning Division has received no public comments regarding the proposed annexation at the time this memo was prepared.

The City Council has expressed concerns regarding how annexing additional properties may affect the City’s ability to provide services to new developments without diminishing the services provided to existing City residents. To address these concerns, the City Council adopted an annexation policy that lists criteria for suitable annexations. The proposed annexation complies with the adopted Annexation Policy criteria as follows:

1. The area is located within the Limits of Annexation.
2. The City is able to adequately provide all municipal services. However, water and sewer services will require extension of lines by the property owner at the time of development.
3. Any proposed improvements will be required to meet City standards.
4. As part of a Development Agreement or Subdivision Improvement Agreement, the owners will sign a Waiver of Right to Protest the creation of any Special Improvement Districts.
5. The property is zoned Controlled Industrial and any proposed land use will comply with the zoning. Future development also may conform to the goals of the City of Billings and Yellowstone County Growth Policy.

Although MCA 7-2-4600 allows the municipality to waive the requirement of an annexation public services plan, it is the City’s custom to have staff prepare a brief analysis of predicted impacts to services and facilities. State law lists the required contents of a public services plan including a 5-year (minimum) plan that outlines how and when services and infrastructure will be extended to the annexed area and how they will be financed. This report follows that general format.

Departmental Response: City and County Departments were given the opportunity to comment on this annexation. All City departments responded favorably and detailed responses are provided below. None of the County Departments that were informed responded, indicating that there are no issues with this annexation request.

City Facilities: The following improvements and facilities are necessary to provide adequate services to the subject property.

• Water: Water service is available to this property from two existing water lines. One is located at the intersection of Garden Avenue and South Frontage Road about 800 feet to the east of the property. The other water line is located at the intersection of Washington Street and the South Frontage Road about 1,344 feet west of the property. The property owner/developer will be responsible for extending the water service to the property.



• Sewer: The property may be served by the developer constructing a parallel main to the existing sanitary sewer line that is in the South Frontage Road and tying into that main.

• Stormwater: There are no stormwater facilities in the area of this property and on-site retention and/or detention may be required. When the property is developed in the future, all storm water improvements shall satisfy the criteria set forth by the City of Billings Stormwater Management Manual and will be subject to review and approval by the Public Works Department.

• Transportation: The subject property has frontage on the South Frontage Road, which is a  minor arterial street. No issues have been identified by City Engineering or Street and Traffic staffs. When the property is developed in the future, access and parking requirements will be reviewed by the City Engineering Department at the time of development.

• Fire Stations: The subject property is currently served by the Billings Fire Department through the Billings Urban Fire Service Area and the Billings Fire Department will continue to service the property upon annexation. The nearest fire station is Station #2 located at 501 South 28th Street, which is approximately 2.5 miles north of the subject property.

• Parks: The subject property is zoned Controlled Industrial and so no park land dedication will be provided if this property is subdivided. However, as part of a Development Agreement at the time of property development, the owners will sign a Waiver of Right to Protest the creation of any Special Improvement Districts that might include maintenance of parks in the area or City-wide.

• Bicycle and pedestrian facilities: The property lies within the jurisdiction of the Billings Area Bikeway and Trail Master Plan. A 30-foot-wide pedestrian pathway easement  is located along the southern edge of the property near the Yellowstone River. A trail in this easement may be constructed either at the time of property development or when further trail connections are made between River Front Park and Mystic Park.

General City Services: These are the City services that are provided to all residents and businesses in the City, such as police and fire protection, street and storm drain maintenance, and garbage collection and disposal. The service providers that responded did not object to the annexation of this property.

• Transit: MET transit system operators have no objections to the annexation request. MET does not operate a route in this area currently and does not have any plan to in the near future. However, MET will continue to monitor this area for future route alignments.

• Police: The Police Department states that the subject property is located at the edge of an established patrol area but there should be no significant impact to serving the property.

• Public Utilities: The Public Works-- Distribution and Collection Division had no objection with the annexation request as long as the owner agrees to fund the necessary water and sewer connection costs, and signs a waiver of protest for future SIDs.

• Public Works -Street and Traffic Division: The Street and Traffic Division stated that it has no problems serving the property.

• Public Works-Solid Waste: The Solid Waste Division notes that it can serve the property when developed further, but noted that Senate Bill 234 passed the State Legislature this year and dictates that it is up to the property owner as to whether the City or a private carrier collects solid waste from the property.

• Ambulance Service: The City does not provide ambulance service, however it does dictate the level of service provided by American Medical Response (AMR). By City ordinance, 90% of ambulance calls must be answered within 8 minutes; this annexation is within the area of acceptable response time.

• Legal and Finance: General Fund services, such as the Legal and Finance Departments should not be negatively impacted by this annexation. The Finance Department commented that it had no concerns with the annexation although it would create another City peninsula south of the I-90 corridor. No comments were received from the Legal Department at the time this report was prepared.

• Other Departments: City/County services including Library, Planning, and Environmental Health are only slightly affected by the annexation since they will continue to serve new development whether in the City or the County.

Annexation of this property would adhere to the following goals, objectives and policies of the Yellowstone County and City of Billings
2008 Growth Policy:

• Contiguous development focused in and around existing population centers separated by open space (Land Use Element Goal, page 8).
• More housing and business choices within each neighborhood (Land Use Goal, page 9).
• Protection of groundwater, surface water, riparian areas, air quality and productive agricultural land (Natural Resources Goal, page 13).
• Sanitary and safe properties (Public Facilities and Services Goal, page 18).