Wayne Laufer has submitted a petition to annex land to the City of Billings under 7-2-4600 MCA. The subject property is 14.87 acres in size and is located west of Highway 87 and north of the existing commercial development that includes American Pharmaceuticals in the Billings Heights. The property is legally described as Tract 2D of C/S 2776, Amended. The parcel is currently undeveloped and is bordered by Five Mile Creek on its north side. The property owner is requesting annexation in order to obtain City services for future development of the property. The property was included in the five year annexation area of the City's Limits of Annexation Map when it was updated by the City Council on May 23, 2011. The Council acknowledged receipt of the petition at its September 12, 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 subject property is 14.87 acres in size and is located west of Highway 87 and north of the existing commercial development that includes American Pharmaceuticals in the Billings Heights. The City Limits are on the south 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 August 5, 2011, the annexation petition was submitted to the Planning Division.
• On September 12, 2011, the City Council acknowledged receipt of the annexation petition and set a public hearing for September 26.
• On September 26, 2011, the City Council will conduct the public hearing for the annexation and may take action on the request.
• On October 11, 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 II City Council boundary will be conducted.
• On October 24, 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 that the City Council conduct a public hearing. Notice of the public hearing was posted on the property on September 9, 2011, and published in the Billings Times on September 8, 2011. The Planning Division had 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 municipal services. The property will be served by the County Water District of Billings Heights for water.  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 Community Commercial. 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 from the County Water District of Billings Heights (CWDBH). A portion of the subject property is already in the CWDBH service boundary. For water service to be provided to the entire property, a portion of the property will need to be annexed into the County Water District of Billings Heights service area through a separate process with CWDBH.

• Sewer: The property may be served by the developer connecting to the existing sanitary sewer in Pemberton Lane. The existing 5-mile lift station will be reconstructed in fiscal year 2012 to facilitate service to this property and other properties in this area of the City. The cost to extend sewer service for the property will be at the developer's expense.

• Stormwater: There are no stormwater facilities in the area of this property and on-site retention and/or detention may be required. Storm water impacts will be identified during the subdivision and/or site development process and mitigating measures developed at that time meeting the requirements of the city and the public works department at the time of development.

• Transportation: The subject property has frontage on Highway 87, which is a principal arterial street. No issues have been identified by City Engineering or Street and Traffic staffs. Traffic impacts will be identified during the subdivision and/or site development process and mitigating measures developed at that time.

• 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 #6 located at 1601 St. Andrews Drive about 2 miles by road southwest of the subject property.

• Parks: The subject property is zoned Community Commercial 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 bike lane is proposed in the future along Highway 87 and a future trail corridor is identified along Five Mile Creek at the north edge of the subject property. The creek trail corridor could be identified during future subdivision or site development development of the property.

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 currently operates a route along Pemberton Lane that could serve the property.

• Police: The Police Department states that the subject property currently exceeds the northern boundary of an established patrol area. The entire Heights is currently served by 2-4 officers. While there should be no significant impact to including the property in a patrol area, continued expansion of the City limits will require more officers in the future.

• 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 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, but noted that Senate Bill 234 passed the 2011 State Legislature 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. No comments were received from the Finance Department or 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:

• Business Development and Rejuvenation in the Heights (Economic Development Element Goal, page 8).
• More housing and business choices within each neighborhood (Land Use Goal, page 6).
• Protection of groundwater, surface water, riparian areas, air quality and productive agricultural land (Natural Resources Goal, page 13).

Annexation of this property would adhere to the following goals, objectives and policies of the Billings Heights Neighborhood Plan:

• Attract small and medium businesses to the Heights (Economic Development Goal, Page 32).
• To provide housing and commercial development compatible with existing development (Housing Goal, Page 23).