The City Annexation Committee recommends the City Council conduct a joint public hearing and adopt the Resolution to Amend the Limits of Annexation Map and the Resolution to Amend the City Annexation Policy and Corresponding Annexation Map format changes. After taking public comment during the hearing, this item will require two actions by Council one on each of the two resolutions attached.

To provide guidance on Annexation Policy and Map amendments, an Annexation Committee, consisting of representatives from Administration, Airport, Fire, Parks, Planning, Police, Public Works, and Transit advises the City Council. The Committee meets to review the Annexation Policy, discuss revisions to the map, and develop strategies for long-term growth management and service delivery. The Committee usually solicits requests from private property owners and considers any City-initiated amendments to the Annexation Map each winter/spring with the City CIP review/approval. The Committee is recommending changes to the map in two areas as described below and shown on the attached draft Limits of Annexation Map. The Committee is also recommending Annexation Policy and Map Format changes.

The City Council was scheduled to take action on all of these items at its July 10 meeting, but only acted on one element of the Annexation Map amendments and delayed the remaining items to discuss further at the July 31 Work Session and then bring back the items at a future Council Meeting. The amendment the Council acted positively on at its July 10 meeting was amending the Limits of Annexation Map to include the area long Central Avenue in the City Annexation Petition Area. The Council conducted a review and discussion at the Work Session on the Dover Ranch and Sweetgrass Meadows map amendment requests, and the Annexation Policy amendments regarding the new Zones. Based on the Work Session discussion, staff schedule formal action on these annexation map and policy items for this meeting.

The City Council first adopted an Annexation Policy and accompanying Map 19 years ago in May 2002 and it was most recently amended in 2017. The original adoption of the Policy was driven by annexations in the early 2000s of areas like Rehberg Ranch and Briarwood that were placing significant service demands on City services and the Council realized it needed a formal process and criteria to make future annexation decisions. To provide guidance on Annexation Policy and Map amendments, an Annexation Committee was formed to advise the City Council. The current adopted policy established two limits of annexation. The City Annexation Petition Area (Red) defines an area where annexation petitions may be supported in the short term. The Long Range Urban Planning Area (Orange) covers areas where City services may be extended but would require additional analysis and funding to support those services. The City of Billings has annexed about 6 square miles since 2004 (39 to 45 sq. mi.) when the Policy and Limits of Annexation Map were further refined to be similar to what they are today. The community’s growth over this period has challenged the City’s ability to balance serving new areas and maintaining a high level of service to present citizens. Recent discussions and funding efforts centered on the need to increase public safety services has been a core part of these service issues. These challenges have meant the Committee continues to be cautious in recommending any expansion of the annexation areas. However, ensuring proper municipal infrastructure is positioned to serve City expansion long term and that low-density County development does not occur in the way of these efforts are also critical elements in the community's sustainability. In this case, specific new development projects in, and on the edge of, the Long Range Urban Planning Area that the City wants to ensure are developed in the City to City standards for long term continuity of services and sustainability supports these map amendments.

Red Area Recommendations: The Annexation Committee is presenting two recommendations to City Council to expand the City Annexation Petition Area (See draft map attached). These areas are being recommended based on City Department analysis and evaluation, Council direction and action to provide municipal services where urban developed on City services and to City standards is desired, and based on long-range infrastructure and land use planning activity utility services in the Billings Heights, utility extension along the Central Avenue Corridor, and public safety considerations in far west Billings.

Dover Ranch (High Sierra) - This property is about 743 acres directly north of the now developing High Sierra Subdivision project that is building out north of the Annandale Road alignment, Lake Hills Golf Course, and Skyview High School. The applicant/developer is asking for inclusion in the City Annexation Petition Area so that they can gradually annex portions of the property over time and develop it for residential and neighborhood commercial type use. While the residential development may be similar to the existing High Sierra development underway, the City's zoning code will require a mix of residential districts and densities as well as some neighborhood office or commercial elements to serve this large area. The full build out of the area over an estimated time horizon of 15-25 years, with assumptions of various residential districts and some commercial elements, is about 9,000 people.

-Water and Sewer Utilities: This area is expected to be served by City Water and Sewer given the proximity of these utilities in the High Sierra development south of the subject property. The ability to coordinate developer and City service extensions is feasible and will help to further loop and connect City infrastructure in this area. The City is aware that the County Water District of Billings Heights (CWDBH) is proposing a new water trunk line across the top of the subject property (Alexander Road alignment) and down the Gleneagles Boulevard alignment. Given the existing proximity of City Water lines in this area it does not make sense for the CWDBH to extend services where the City is already planning to provide water.  City Administration, Public Works and Planning staff have informed CWDBH of the City's intent as part of comment on its water line extension project proposal.

-Transportation Infrastructure: There are multiple opportunities for transportation corridor connections to the subject property both from the south and, ultimately, the northeast via an extension of Alexander Road. Connections from the south include Gleneagles Boulevard (Principal Arterial), High Sierra Boulevard (Collector), Annandale Road (Minor Arterial) East/West) and Las Palmas (Local). Staff has provided an attached document to this memo from the most current Functional Classification Map regarding the existing and proposed transportation corridors in the area of this property to visually show the Council these connection options. These connections provide ample connectivity as well as shared infrastructure cost opportunities between the City and the developer as this area is built out over time.

-Public Safety Services: Recent passage of the Public Safety Mill Levy has created opportunity for public safety services to both address existing challenges in providing adequate response as well as planning for future service demands. While ultimate build out of this area over several decades may not be accommodated by current public safety service capacity, the Police Department and Fire Department have resources and have made recent changes in service delivery that equip them to handle initial expansion in this area. Added Police officers as well as the new Community Service Officers has helped with capacity across the City. Since the Police Department is already responding to the High Sierra and Lake Elmo areas of the City, connecting to new neighborhoods in this area over time can be accommodated. The subject property is within the Billings Urban Fire Service Area (BUFSA) and so is currently provided with fire protection through the BUFSA service agreement. The opening of Fire Station #8 on Lake Elmo Road will significantly improve response capacity in the entire Billings Heights area and the deployment of Mobile Response Teams (MRTs) is also reducing the demand on fire truck call responses to focus more on fire calls and leave the medical calls to MRTs and AMR.

-Parks, Transit: Provision of park and open space development will occur as annexation, zoning and subdivision requirements are applied to the subject property during development review. Given the large area, it is anticipated that a variety of parks and trail corridors will be provided that extend from the existing High Sierra development and also are added as new elements. Sidewalks, bike lanes, and some multi-use pathways adjacent to the arterial and collector roadways also are anticipated to provide connectivity throughout the area.

While MET Transit will not immediately serve this area directly, current MET routes south of the subject property will provide some transit access and opportunities for future route expansion or modifications. Having the development area ultimately connect to Alexander road and out to Highway 87 provides a long range option for future transit looping in the north area of the Heights for both residential and commercial areas.

Recommendation: The Annexation Committee recommends the Dover Ranch property be included in the City Annexation Petition Area based on the desire to see urban development to City standards in this area of the Billings Heights.


Sweetgrass Meadows (SW of Rimrock Road/70th Street West intersection) - This property is about 240 acres located at the southwest corner of the intersection of Rimrock Road and 70th Street West just south of the most recent Copper Ridge Subdivision development. The applicant/developer is asking for inclusion in the City Annexation Petition Area so that they can gradually annex portions of the property over time and develop it for residential and neighborhood commercial type uses. The estimate at full build out is about 1,100 housing units or about 2,750 people. While the residential development may be similar to the adjacent Copper Ridge development, the City's zoning code will require a mix of residential districts and densities as well as some neighborhood office or commercial elements likely at the intersection of Rimrock Road and 70th Street West. The full build out of the area is estimated over about 10 years per the applicant's market demand expectations.

-Water and Sewer Utilities: This property has some service challenges in terms of full build out as gravity sewer will function on about half of the north portion of the property. A potential lift station or pressure sewer will be needed to service approximately the southern half of the property. Water service could be extended to the entire property utilizing water line extensions in Rimrock Road across the north boundary of the subject property and the east boundary of the property along 70th Street West. This property also has some challenges relating to pumping capacity of the pump station that serves the area. The area is already deficient in peak pumping capacity during the summer. As the property is built out, it will further contribute to the need for an additional pump station to be located on 58th street west, between Grand Avenue and Rimrock Road. Most of the cost to extend water and sewer lines would be at developer expense with the potential for the City to participate in some oversizing of main lines that could serve future development in the area.

-Transportation Infrastructure: City Engineering has some concerns with future improvements to the transportation corridors in this area given that 70th Street West and Grand Avenue that provide connectivity for the subject property to the south are not built to City standard. Staff has provided an attached document to this memo from the most current Functional Classification Map regarding the existing and proposed transportation corridors in the area of this property for added reference. Also, given that the area directly east of the subject property across 70th Street down to Grand Avenue and the Grand Avenue Corridor between 62nd Street West and 70th Street West is expected to remain as large lot development in the County for many years, improving 70th and Grand to a higher standard in the area would not be feasible. Traffic analysis provided by the applicant shows the majority of the traffic from the development utilizing Rimrock Road, which is City controlled even though the south side of the corridor from 70th Street West back to 62nd Street West is in the County. The City would secure some contributions from the new development for future improvements to the Rimrock Road in the area. However, it is important the City Council understand that there could be future CIP projects identified for Rimrock Road in this area and further east that would require use of City arterial and gas tax funds in combination with some development contributions as impacts to the corridor require improvements.

-Public Safety Services: The subject property is not within the Billings Urban Fire Service Area (BUFSA) and is instead in the Molt Volunteer Fire Department (Molt VFD) response area. This means that brining this property into the City would bring an area not currently serviced by the City Fire Department into its service area. However, the Fire Department would prefer to have this area develop in the City even if it adds service demand. The Billings Fire Department already responds to areas of the Molt VFD since Molt VFD has no capacity for fighting structure fires and the Billings Fire Department would prefer City water supply and not dry hydrant systems in this area. The Fire Department also finds that since 70th Street West and Grand Avenue are paved even though they are not to City standard they do not pose a problem for access for responding from Fire Station #7. This provides access from Rimrock Road and 70th Street West to this area. Also, with the new Mobile Response Teams (MRTs) now taking non fire calls and reducing the fire truck responses, there is more capacity for fire calls in the area of Station #7.

The Police Department also had no concerns with access as it also can utilize Grand Avenue and 70th Street West in this area for response along with Rimrock Road for multiple access options. While the Police Department is already providing services to Copper Ridge Subdivision to the north and has added some officer capacity, it is likely that with full build out of this area and other areas of the City, more resources will be needed over time. This area is a long way from the Billings Operation Center and Downtown Police Department where City Police are based out of for the City.

-Parks, Transit and other Services: Provision of park and open space development will occur as annexation, zoning and subdivision requirements are applied to the subject property during development review. Given the large area, it is anticipated that a variety of parks and trail corridors will be provided that may utilize the Little Cove Creek drainage and Stahly Tributary drainage through the property. Sidewalks, bike lanes, and some multi-use pathways adjacent to Rimrock Road and 70th Street West also are anticipated to provide connectivity throughout the area.

MET Transit is not expected to serve this area in the foreseeable future with fixed route service. The location is too remote from the main area of the City and current residential density and no commercial development make transit unfeasible at this time.

Recommendation: The Annexation Committee recommends the Sweetgrass Meadows property be included in the City Annexation Petition Area based on the desire to see urban development to City standards in this area of West Billings for public safety and to ensure urban development to City standards. By bringing the property into the City, the City would have control over the development and immediate streets adjacent. However, the City also will provide all services to the property and not be able to control some of the street improvements to the south in the County. While no immediate increases in cost of service delivery would be anticipated and there would be some offset of taxes, fees and assessments for services, this area is very far west Billings with County developed land in the area which makes some service delivery less efficient.


Annexation Policy and Map Format Change Recommendations

The Annexation Committee has evaluated the current Limits of Annexation Map and is recommending some formatting changes to provide Council, City staff and the public with a better sense of what areas may be annexed and developed at any time, what areas have County development that may remain as is in the County for many years, and what areas the City expects ultimately may be annexed in the future but need further service evaluation and analysis first. These updates are partly driven by the areas shown on the existing Limits of Annexation Map that appear to be able to be annexed and developed as they are in the "Red" area but are actually fully developed as County residential neighborhoods and will not come into the City unless there is an environmental situation with the area's water supply or septic systems. These updates are also recommended to Council to continue to reinforce with property owners and developers that the City would prefer to discuss annexation and providing services for urban development before a property begins the process of developing in the County and creating barriers to future City expansion, infrastructure improvements, and service delivery challenges.

The Committee is recommending Council create three "Zones" for the Limits of Annexation Map, adding a third Zone to the current two areas of City Annexation Petition Area and Long Range Planning Area called County Developed Area and then making text amendments to the Annexation Policy to reflect these Zones and how the City will approach requests. See the attached Resolution regarding the Map and Policy amendments that depict these changes.

The newly proposed map includes Zone 1 the Petition area and Zone 2 the Long-Range area which function exactly as they currently do in the existing policy. Map colors have been revised. Zone 1 is green indicating the ability to proceed with annexation, Zone 2 is yellow, indicating you can proceed with further analysis and finally Zone 3 is red, indicating these properties are not suitable for annexation due to already existing development. The most substantive change to the policy is related to Zone 3. The policy does not prevent these properties from petitioning for annexation, but it focuses on the reality of the parcels. In other words, it recognizes these parcels have been developed in the county and have existing uses that do not require city services. These properties are served by cisterns, existing wells and existing septic systems. Zone 3 describes these areas as only needing annexation in the event of an environmental circumstance which prevents the continued use of their existing systems or some other unforeseen circumstance that would likely be considered an emergency situation. Staff is recommending the Zone 3 be added to the policy and map to serve as a visual indicator that these properties are not raw land and available for new development. By depicting these properties this way, the Zone 1 or petition area is more accurate to evaluate potential city growth. Other amendments to the policy are intended to provide clarity. In summary, the policy will continue to function as it presently does.

Staff reviewed the policy amendments with the City Council at the Work Session and walked through some proposed amendments from the Mayor and Council Member Neese that had been shared just before the July 10 Council Meeting. Staff is generally comfortable with the proposed policy edits from the Council, mainly stressing the need for conditions of annexation to be tied to mitigation of impacts from a proposed annexation and development to provide for some consistency and certainty for the development community and also for staff during the annexation process. Staff has attached the policy showing these changes to this memo again for reference by Council and included the edits in the attached resolution to amend the Policy.


The City Council approved a contract with Baker Tilly to complete a Cost of Service Study for the City at its June Meeting. The Committee understands and expects that the Limits of Annexation Map and Policy may be reviewed and further modified after the results of the Cost of Service Study are completed. However, the Committee recommends the Council make these changes to the Map and Policy now so that the development community and property owners are best informed of the City's intensions in the short term and the City does not miss any opportunities to consider annexations and development within its Limits of Annexation Map areas that are to urban standards. 
 

Amendments to the City Limits of Annexation Map and Annexation Policy are completed through a public hearing and action on resolutions by the City Council. The public hearing for this meeting was advertised as required. Property owners or agents also attended the City Annexation Committee meetings and have been kept informed of the review and Council meeting schedule. The public also was able to attend the Council Work Session on July 31 and provide comment on the proposed amendments. The general public also is able to participate in the process by providing comments to the staff. Aside from the extensive discussions with the applicants for the map amendments and the discussions with the Council at the Work Session, staff has not received additional comments on the Map amendments or Policy amendments at the time this memo was drafted.

The City Council may:

• Amend the Limits of Annexation Map and Policy per the Annexation Committee's recommendations and recent City Council direction; or
• Not Amend the Limits of Annexation Map and Policy per the Annexation Committee's recommendations and recent City Council direction; or
• Make modifications to the Limits of Annexation Map and Policy different than the Annexation Committee's recommendations. If the Council decides to make significant modifications not included in the Annexation Committee's recommendations, staff will need to revise the resolutions and map and bring the item back for action at a future Council meeting.

NOTE: The Annexation Committee anticipates the City's execution of a Cost of Service Study and Growth Policy update may ultimately affect how the City's Annexation Policy and Map are designed and used in the future. However, the Committee urges the Council to make these Map and Policy amendments now to ensure short term development projects are completed in the City to City Standards and further modifications may be informed later by the Cost of Service Study information.

Making amendments to the City Limits of Annexation Map and Annexation Policy does not immediately impact the City budget. However, by including these areas in the Annexation Petition area, the City is acknowledging that City services will be made available over time as the areas develop. Future annexations in the areas that are included in the City Annexation Petition Area will have both additional revenue and cost implications for City service delivery. Future decisions in the CIP process about additional infrastructure projects also will have an impact on where the City invests in long-range City growth and expansion. There is a balance the City must achieve between efficient service delivery to existing City residents and future expansion to provide services for high quality urban development. Not identifying future areas of City expansion and making long-term investments can also have a significant cost as rural development occurs in places that interrupts future City expansion and makes future service delivery more complicated and costly. However, the Annexation Committee has been intentional about the areas it has recommended for inclusion in the Annexation Petition Area based on the elements for City expansion and urban development noted above.