Donald Lee has submitted a petition on behalf of owners BL Realty, Inc., the Estate of Richard E. Lee, the Estate of Donald R. Lee, and OE Lee and Company to annex land to the City of Billings under 7-2-4600 MCA. The subject property is composed of two parcels totaling 6.3 acres and located on Nall Avenue with frontage on South 27th Street. The property is addressed as 108 Nall Avenue. One of the parcels is currently undeveloped and the other has a single family home on it. The property owner is requesting annexation in order to obtain City services for development of a warehouse facility. The property owner is working with The Boyer Company, the development firm hired by the Government Services Administration to provide a new office building and warehouse facility in Billings. 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.  The Council acknowledged receipt of the petition at its February 13, 2012, meeting. The Council will hold a public hearing and take action on the annexation request at this meeting. The City Public Works Department also has worked with the applicants to draft a Development Agreement for improvements for the subject property that will be considered by the City Council as a second action on this request.

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 services to the subject property. It will be the responsibility of the owner to extend City water and sewer services to the property from services in Nall Avenue and South 27th Street. Staff is recommending a condition of approval for this annexation be that a development agreement between the City and the property owner be executed to clarify how services will be provided. The City Council is scheduled to act on the Development Agreement for this property following its action on this Annexation Petition. If the proposed annexation is approved, the property is expected to be developed in the future for commercial purposes and will contribute additional tax revenue to the City.

The subject property is 6.3 acres in size and is located on Nall Avenue with frontage on South 27th Street. The property is addressed as 108 Nall Avenue. . The City Limits are on the north and northeast sides of the subject property 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 January 9, 2012, the annexation petition was submitted to the Planning Division.
• On February 13, the City Council acknowledged receipt of the annexation petition and set a public hearing for February 27.
• On February 27, the City Council will conduct the public hearing for the annexation and may take action on the request.
• On March 12, if the resolution to annex is approved by the City Council, a public hearing and first reading of an ordinance to expand the Ward I City Council boundary will be conducted.
• On March 26, 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 February 10 and published in the Billings Times on February 9. The Planning Division had received no public comments regarding the proposed annexation 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 services. The property will be served by City water and sewer. Sewer and water services will require extension of lines by the property owner at the time of development from existing lines in Nall Avenue and South 27th Street.
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 Controlled Industrial and Highway 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 City by connecting to a service line in Nall 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 sanitary sewer in South 27th Street. The cost to extend sewer service for the property will be at the developer's expense.

• Stormwater: There are no stormwater facilities in the area of this property and on-site retention and/or detention may be required. 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 Nall Avenue, which is a residential street that dead ends at the north end of the property before it reaches South 27th 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 #2 located at 501 South 28th Street, about 1 mile north of the subject property.

• Parks: The subject property is zoned Controlled Industrial and Highway Commercial, 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. A bike lane is proposed in the future along South 27th Street at the east 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 South 27th Street and State Avenue and is north 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 the 2011 State Legislature and 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).