Brent Nelson submitted a petition to annex land to the City of Billings under 7-2-4600 MCA. The subject property is composed of three parcels totaling about 0.85 acres and located on Lincoln Lane in the Billings Heights. The property is addressed as 337 and 325 Lincoln Lane. Two of the parcels have single family homes on them and one parcel is undeveloped. The property owner is requesting annexation in order to obtain City services for redevelopment of the property for multi-family housing. The property is located within the five year annexation area of the City's Limits of Annexation Map and appears to meet many of the City's Annexation Policy criteria.

The Council acknowledged receipt of the petition at its April 9, 2012, meeting and set a public hearing for its April 23rd meeting. Before the Council voted to set the public hearing for April 23rd, Council Member Cimmino made a motion to delay action on the annexation petition until the Council's May 14 meeting. Council Member Cimmino stated that the Heights Task Force had not had time to meet and review the proposed annexation and the delay would give the Task Force time to do so. Staff informed the Council that the public hearing had already been advertised for April 23 and the property also had been posted with this date. Staff also informed Council that while it is not required by law, task forces are routinely informed of annexation petitions in their areas as a courtesy during the annexation process. Council Member Cimmino then amended her motion to conduct the public hearing on April 23 and continue it until May 14 to allow time for task force review. Staff informed Council that while there was nothing in State Law dictating the timing of action on annexations aside from public hearing requirements, the applicant had expressed interest in concluding the hearing on April 23rd and for the Council to act on the petition. The applicant was in attendance and stated this to Council. The Council did not approve the motion to extend the hearing until May 14.

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 sewer service to the subject property and the County Water District of Billings Heights can provide water service to the property. It will be the responsibility of the owner to extend City sewer and Heights Water services to the property from services in Lincoln Lane. Staff is recommending a standard condition of approval for this annexation be that a development agreement between the City and the property owner be executed to clarify how City services will be provided. If the proposed annexation is approved, the property is expected to be developed in the future for residential purposes and will contribute additional tax revenue to the City.

The subject property is composed of three parcels totaling about 0.85 acres and located on Lincoln Lane in the Billings Heights. The property is addressed as 337 and 325 Lincoln Lane. . The City Limits is at the west edge of the subject property on Lincoln Lane  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 February 27, 2012, the annexation petition was submitted to the Planning Division.
• On April 9, the City Council acknowledged receipt of the annexation petition and set a public hearing for April 23.
• On April 23, the City Council will conduct the public hearing for the annexation and may take action on the request.
• On May 14, 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 May 29, 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 April 6 and published in the Billings Times on April 5. The Planning Division received one phone inquiry regarding the proposed annexation at the time this memo was prepared. The caller was concerned that her property might also be annexed with this action. She was informed that it would not.

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 sewer services and the property is within the County Water District of Billings Heights service area for water. Sewer and water services will require extension of lines by the property owner at the time of development from existing lines in Lincoln Lane.
3. Any proposed improvements to the property will meet City standards.
4. As part of a Development 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. The County Public Works Departments 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 by connecting to a service line in Lincoln Lane adjacent to the subject property. The cost to extend service for the property will be at the developer's expense.

• Sewer: The property may be served by the developer connecting to the existing City sanitary sewer in Lincoln Lane. The cost to extend sewer service for the property will be at the developer's expense.

• Stormwater: There is a stormwater line in Lincoln Lane. Storm water impacts will be identified during the 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 Lincoln Lane, which is a residential street .  No issues have been identified by City Engineering or Street and Traffic staffs. Any specific traffic impacts will be identified during the 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, about 2.3 miles north of the subject property.

• Parks: The subject property is zoned Community Commercial and very small in size, so no park land dedication will be provided if this property is subdivided.

• Bicycle and pedestrian facilities: The property lies within the jurisdiction of the Billings Area Bikeway and Trail Master Plan. No off-street trail or bike lanes are proposed on Lincoln Lane at the west edge of the subject 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, but the nearest bus route follows Main Street in the Billings Heights and is about 1/4 mile west of the subject property.

• Police: The Police Department states that the subject property is near an established patrol area and there should be no significant impact to including the property in a patrol area.

• 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 agrees to a waiver of protest for future SIDs through a Development Agreement or Subdivision Improvement Agreement as condition in the Annexation Resolution.

• 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 in the 2011 State Legislature 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:

• Contiguous development focused in and around existing population centers (Land Use Goal, Page 6).
• 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 and objectives of the Billings Heights Neighborhood Plan:

• To encourage infill development and housing development that meets residents’ desire to have similar housing within their neighborhood (Land Use Goal, Page 20).
• To encourage the annexation of county parcels into the City of Billings. (Land Use Objective, Page 20).
• Encourage infill housing (Housing Goal, Page 23).