Owner Elysian School submitted a petition to annex land to the City of Billings under Section 7-2-4600, MCA. The subject property is a parcel totaling about 20 acres. The property is located at the southwest corner of the intersection of Elysian Road and East Lane and is the site of the Elysian School with some vacant land around the school. The property owner is requesting annexation in order to obtain City services for a new addition/expansion of the school. The City Council on April 13 awarded a $3 million contract for the water and sewer extension that would serve the school property. The addition is almost complete and the school anticipates that if annexed, it will be able to connect to utilities later this year. The property is currently zoned Public.

The property is located within the five-year annexation area of the City's Limits of Annexation Map and appears to meet some of the City's criteria in its Annexation Policy. The City is able to serve the property and further analysis and discussion is provided in the Consistency with Adopted Plans and Policies section of this memo. The City Council considers this annexation at two separate Council meetings. At the first meeting on May 26, the Council accepted the annexation petition for this property and set a public hearing date for June 8. At this meeting, the Council will conduct the hearing and decide if it will annex the property. 

The City Council may approve or deny a petition submitted by owners of 50% or more of the real property in the area to be annexed (7-2-4601 (3)(b), MCA). The only alternative that is consistent with City Council policy and state law is to conduct a public hearing and review the request before taking action.   

The City is able to provide municipal water and sewer to the subject property. Utilities may be extended from Mullowney Lane. Staff is recommending one condition of approval for this annexation; that a Development Agreement be executed with the City to identify infrastructure improvements and timing of those improvements to serve the property. Elysian School is in discussions with City Engineering Division staff to complete a Development Agreement.

The subject property totals about 20 acres. It is located at the southwest corner of the intersection of Elysian Road and East Lane. The property is currently partly developed with the Elysian School. It is zoned Public, which is the correct zoning for a school and any associated uses. The property is located within the five year annexation area of the City's Limits of Annexation Map and appears to meet some of the City's criteria in its Annexation Policy. The city limits are currently located about a half a mile to the north and a half a mile to the east of the subject property. However, the Limits of Annexation Map indicates that the property between the school and the current City Limits is within the Red Area and is expected to be annexed within the next five years.

PROCEDURAL HISTORY

• In November 2013, Elysian School in coordination with multiple property owners east of East Lane and south of Elysian Road submitted an Urban Planning Study to request an amendment to the City's Limits of Annexation Map to bring its property into the Red Area for future consideration for annexation.
• The Annexation Committee considered the request in the winter of 2013-2014. During this time, City Public Works, developers, and the property owners who had requested the map amendment entered into discussions about providing water and sewer service to the area to facilitate future annexation and how such a project might be funded.
• On April 28, 2014, the City Council amended the Limits of Annexation Map to include the Elysian School and other properties in the area in the Red Area of the Map. At the same time, the City's Capital Improvement Plan included a project to extend water and sewer lines from their existing terminus at Mullowney Lane to near the school property.
• On April 9, 2015, the annexation petition was submitted to the Planning Division by the owner.
• On April 13, 2015, the City Council Approved Work Order 14-13 for about $3.2 million to install water and sewer lines to serve Elysian School and other property in the area.
• On May 26, the City Council accepted the petition to annex the property and set a public hearing date for June 8.
• On June 8, the City Council will conduct the public hearing for the annexation and may take action on the request.
• On June 22, if the resolution to annex is approved by the City Council, a public hearing and first reading of an ordinance to include the property in City Council Ward III will be conducted.
• On July 13, the City Council will conduct the second and final reading for the ordinance expanding the Ward III boundary.

Annexation by petition does not require notification of adjoining landowners; however, it does require that the City Council conduct a public hearing and post the property with information on the annexation petition and public hearing. Notice of the public hearing was posted on the property on May 22 and published in the Billings Times on May 21. The Planning Division has not received any inquiries about this petition at the time this memo was prepared.

Although MCA 7-2-4400-4407 does not specify the need to prepare a public services plan, it is the City’s custom to have staff prepare a brief analysis of predicted impacts to services and facilities. 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 to the property.
3. Any proposed public improvements within the area to be annexed must meet City standards.
4. All property owners within the area to be annexed must sign a Waiver of Right to Protest future Special Improvement Districts. The proposed condition of annexation in the Resolution that the property owner enter into a Development Agreement with the City will ensure that the waiver is signed. 
5. If annexed, any proposed land use will comply with the zoning. The property is currently zoned Public and the school use complies with the zoning.

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 respond to this annexation request. 

City Facilities:
Specific comments from City Departments are provided below:

• Water: This property is intended to be served by a new water line (W.O. 14-13) to be installed in Elysian Road between Mullowney Lane and the subject property.

• Sewer: Access to sewer service for the property is intended to be served by a new sewer line (W.O. 14-13) to be installed in road right-of-way and via property easements between Mullowney Lane and the subject property.

• Storm Water: All of the runoff from this property will need to be contained on site and meet the City of Billings requirements for storm water management. Any future development will be constructed in compliance with City of Billings storm water regulations.

• Transportation: The subject property has frontage on Elysian Road on the north and East Lane on the east. Access to the property currently is from both Elysian Road and East Lane. Traffic impacts will be identified during the development agreement drafting process and current site development process for the school addition and mitigating measures developed at that time.

Elysian Road and East Lane Road Easements:  60-foot road easements for East Lane and Elysian Road run along the school property on the north and east sides. The City is required by State of Montana Code to include all adjacent road rights-of-way into the City Limits when it annexes property. Montana Code Annotated §7-2-4211 provides that in all cases of annexations of property, the city “shall include the full width of any public streets or roads, including the rights-of-way, that are adjacent to the property being annexed.”  This law, enacted by the 2003 session of the Montana Legislature, requires the City to annex the road easement for Elysian Road and East Lane in this area since it is adjacent to the property proposed to be annexed. Staff has been in discussions with the property owner on the east side of East Lane whose property has half (30 ft.) of the road easement on his property, and a property owner on Elysian Road who has half (30 ft.) of the road easement on his property regarding the options of the City annexing the easement and the property remaining under private ownership, or deeding the easement to the City. Final decisions from the property owners were not reached when this memo was prepared and so the road easements are currently included for annexation with the property owners retaining ownership at this time. Since there will be no assessments to the annexed road easement property until November 2016 if the annexation occurs in June 2015, there is adequate time for owners and staff to complete an agreement to transfer the easements to the City, if that is the property owners' desire.

• 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 serve the property upon annexation. The property is also already partially developed with Elysian School. 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 #5, located at 604 South 24th Street West, about 3 miles northeast of the subject property.

• Parks: The subject property is a school and is zoned Public. It is expected that most of the property will remain as school and school-related uses, so while no park land would be dedicated in the future, the open space and fields at the school may be utilized by the community for outdoor recreation.

• Bicycle and pedestrian facilities: The property lies within the jurisdiction of the Billings Area Bikeway and Trail Master Plan. The Plan calls for a bike lane on Elysian Road and East Lane past the subject property. When Elysian Road and East Lane are improved to City standards in this area, bike lanes will be installed.

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, however the Police and Fire (See Fire comment above and Police below) departments did express concerns with providing additional services in newly annexed areas without additional resources.

• Transit: MET transit system operators have no objections to the annexation request. Bus service is not currently available near this property, with the closest service about a mile and a half a mile northeast of the subject property at the intersection of Mullowney Lane and the Frontage Road near Interstate 90.

• Police: The Police Department stated that this property is somewhat removed from established patrol areas and will be difficult to patrol on a regular basis. Staff also stated that the location of this property also is expected to burden existing resources.

• Public Utilities: The Public Works-- Distribution and Collection Division had no objection to the annexation request.

• 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 had no concerns with annexing the property, but pointed out that State Law allows the property owner to choose what garbage hauler may service the property after it is in the City. 

• 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 may be 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. Both departments responded that they do 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 the property whether it is in the City or the County. Planning staff stated that this annexation is in an area that is expected to begin developing and the school is a key part of the types of development that may come to this area. The school also will have more flexibility in service and expansion with water and sewer provided.

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

• Promote excellence in education and safe and healthy school facilities (Economic Development Goal, Page 8).
• Protection of groundwater, surface water, riparian areas, air quality, and productive agricultural lands (Natural Resource Goal, Page 9).
• Coordinated land use and facility planning among local governments, school districts, and private industries (Public Facilities and Service Goal, Page 14).