Owner John Clifford Zimmerman has submitted a petition to annex land to the City of Billings under 7-2-4600 MCA. The subject property is composed of one parcel totaling about 2 acres, plus approximately 7,260 square feet designated as street right-of-way. It is located on the north side of Grand Avenue just west of the intersection with 48th Street West. The property has a residence on it but is proposed for a private Montessori school. The property owner is requesting annexation in order to obtain City services for development of the property. Since the property will default to Residential-9600 (R-96) zoning when annexed, a concurrent special review application is being processed to allow a private school in the R-96 zoning district. 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 criteria in its Annexation Policy. Staff also is working with the County to ensure the County deeds all interest in the Grand Avenue road tract or right of way to the City.

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 and water service to the subject property. It will be the responsibility of the owner to extend City sewer and water services to the property from services in Grand Avenue. 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 as a private school and will contribute additional tax revenue to the City.

The subject property is composed of one parcel totaling about 2 acres, with an additional approximately 7,260 square feet designated as street right-of-way. It is located on the north side of Grand Avenue just west of the intersection of Grand Avenue and 48th Street West. The property has a residence on it but is proposed for a private Montessori school. The property owner is requesting annexation in order to obtain City services for development of the property. Since the property will default to Residential-9600 (R-96) zoning if it is brought into the City, a concurrent special review application is being processed to allow a private school in the R-96 zoning district. The Council is scheduled to consider the special review immediately after it acts on this annexation at the August 27 meeting.

During processing of this annexation petition, staff determined that the right-of-way in front of this property on Grand Avenue is identifed as a road tract on the north half and a road easement on the south half. Section 7-2-4211 of the Montana Code Annotated (MCA) requires a city to annex the entire width of a road with the properties it annexes. To comply with Section 7-2-4211 MCA, the City must secure a quit claim deed from the County for the north half, with the County deeding any interest it may have in the road tract to the City. This also means the City must seek a quit claim deed from the property owner to the south for the road easement portion of Grand Avenue. The County is scheduled to act on its quit claim deed on August 28. The City is still in the process of contacting the property owner for the southern easement. Due to the timing of acting on annexation of this property in concurrence with a special review application, if the City Council approves the annexation, City staff will return to the Council at a future meeting for it to accept the deeds for these two portions of Grand Avenue.

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 criteria in its Annexation Policy. While there are no City Limits immediately adjacent to the subject property, 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 14, 2012.

PROCEDURAL HISTORY
• On July 2, 2012, the annexation petition was submitted to the Planning Division.
• On August 13, the City Council acknowledged receipt of the annexation petition and set a public hearing for August 27
• On August 27, the City Council will conduct the public hearing for the annexation and may take action on the request.
• On September 10, if the resolution to annex is approved by the City Council, a public hearing and first reading of an ordinance to expand the Ward IV City Council boundary will be conducted.
• On September 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 August 13 and published in the Billings Times on August 9. The Planning Division had not received any inquiries into this petition 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 water and sewer services. Sewer and water services will require extension of lines by the property owner at the time of development from existing lines in Grand Avenue.
3. Any proposed improvements to the property will 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. If annexed, the property will be zoned Residential 9600 (R-96). 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. City departments responded favorably and detailed responses are provided below. The County Public Works Department did not responded to 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 service line in Grand Avenue 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 Grand Avenue. The cost to extend sewer service for the property will be at the developer's expense.

• Stormwater: There is a no stormwater line in Grand Avenue in this area. 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 Grand Avenue, which is a Principal Arterial 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 Billings Fire Chief stated that as this and other annexations are built out, additional fire department resources will be needed. The nearest fire station is Station #7 located at 1501 54th Street West, about 0.7 miles northwest of the subject property.

• Parks: The subject property will be zoned Residential-9600 if annexed. Park land dedication could be provided if this property is subdivided. The applicant currently plans development of a private school on the property which would not trigger parkland dedication.

• Bicycle and pedestrian facilities: The property lies within the jurisdiction of the Billings Area Bikeway and Trail Master Plan. A bike lane is proposed on Grand Avenue in front of the subject property with future improvements to Grand Avenue.

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 does not go further west on Grand Avenue than Rehberg Lane, about 2.3 miles east 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 water and 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. The Finance Department responded that it did not see any issues with the petition request.

• 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:

• More housing and business choices within each neighborhood (Land Use Goal, page 6).
• Promote excellence in education and safe and healthy school facilities (Economic Development Element Goal, Page 8). 
• Protection of groundwater, surface water, riparian areas, air quality and productive agricultural land (Natural Resources Goal, page 13).

The West Billings Plan identifies the area of this property for residential development. However, schools are expected to be in residential areas to serve the students in those residences so a residential or school use on this property would be in accordance with the West Billings Plan's future land use map.