Owner and petitioner, KZ Bar, Limited Partnership, is requesting annexation of a property legally described as Tract 2A, Certificate of Survey 3364, Amended, into the City of Billings pursuant to Section 7-2-4600 of the Montana Code Annotated (MCA). The subject property is located at the northwest corner of Zimmerman Trail and Avenue E. The petitioner is requesting annexation in order to obtain city services for a proposed medical facility on the property. The subject property is part of an 80-acre agricultural property that is surrounded by urban development. The Council acknowledged receipt of the petition at its April 26, 2010, 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).  For further indepth analysis, please see the "Summary" under Additional Headings.

The City can provide municipal services to the subject property. If the proposed annexation is approved, the property will contribute tax revenue to the City. For further indepth anaylsis, refer to the Summary section of this report.

The 1.91-acre subject property is located on the west side of Zimmerman Trail, north of Grand Avenue, just west of where Avenue E currently ends. In addition to property to be developed as a medical clinic, the annexation resolution takes in an area of land that will be dedicated to the City as right-of-way for Avenue E, after the annexation is approved. It is adjacent to properties within the city limits, and is within the red boundary of the limits of annextion as specified by the Annexation Map adopted by the City Council on June 8, 2009. The Summary section of this report provides indepth analysis of providing services to this property if it is annexed.

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 April 23, 2010, and published in the Billings Times on April 22, 2010. The Planning Division had received no public comments regarding the proposed annexation at the time this memo was drafted.

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).
• Improved public services and facilities (Economic Development Goal, page 10).
• Protection of groundwater, surface water, riparian areas, air quality and productive agricultural land (Natural Resources Goal, page 13).
• Protect public lives and property (Public Facilities and Services Goal, page 18).
• Sanitary and safe properties (Public Facilities and Services Goal, page 18).

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 and within the Urban Planning Area.
2. The City is able to provide adequate services.
3. The proposed improvements will be required to meet City standards.
4. As part of the Development Agreement, the owners will sign a Waiver of Right to Protest the creation of any Special Improvement Districts.
5. The proposed land use 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. Of the County Departments that were informed, only the County Public Works Department 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: The City currently provides water services to the area with an 18-inch water main in Zimmerman Trail. From this 18-inch main, there is an existing 10-inch water main stubbed into the subject property along Avenue E that shall be extended to the west end of the subject property at the developer’s expense.

• Sewer: The City currently provides sanitary sewer services to the area with a 12-inch sewer main in Zimmerman Trail. From this 12-inch main, there is an existing 12-inch sewer main stubbed into the subject property along Avenue E that shall be extended to the west end of the subject property at the developer’s expense.

• Stormwater: 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. The current proposal is for storm water drainage from the development to flow into a storm water pipe stubbed into the property along Avenue E from the 30-inch main in Zimmerman Trail.

• Transportation: The subject property has frontage on Zimmerman Trail, which is a principal arterial street, and on what will become Avenue E, which is a local street. The developer will be required to construct the segment of Avenue E that fronts the property at the time of site development. No new accesses will be allowed onto Zimmerman Trail. No issues have been identified by City Engineering or Street and Traffic staffs.

• Fire Stations: The subject property is currently served by the Billings Fire Department, which will continue to service the property upon annexation. Fire Station #7 located at 54th St. W. and Grand Ave. or Fire Station #3 at 1928 17th Street West, which are both approximately two miles from the subject property, can provide services to this property.

• Parks: Parkland dedication is not required for commercial development like this.

• Bicycle and pedestrian facilities: The property lies within the jurisdiction of the Heritage Trail Plan. Zimmerman Trail is identified on the trail map as having an existing multi-use path. This trail was constructed on the east side of Zimmerman Trail in 2006. On the west side of Zimmerman is a sidewalk for pedestrians.

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 with the annexation request. There are no bus routes along Zimmerman Trail at this time. The nearest bus route passes by Poly Drive and Zimmerman Trail approximately one-half mile to the north of the subject property.

• Fire: The Fire Department currently provides fire protection to the County parcel as it is within the Billings Urban Fire Service Area (BUFSA). The nearest station is located at 54th St. West and Grand Ave. The Department indicates that they are capable of serving this property in the future.

• Police: The Police Department states that the subject property is located in an established patrol area, and they are capable of serving the property once redeveloped.

• Public Utilities: The Public Works--Distribution and Collection Division has no objection with the annexation request as long as the owner agrees to fund the necessary water and sewer extension and connection costs.

• Public Works-Street and Traffic Division: The Street and Traffic Division does not have any concerns with the proposed annexation. It currently maintains Zimmerman Trail.

• Public Works-Solid Waste: The Solid Waste Division indicated that it can serve the property once annexed and developed. There is currently no trash service to the site.

• 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.

• 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.