Owners, Timothy and Sheryl Dernbach and Jeff and Dana Sorenson, have submitted a petition to annex land to the City of Billings under 7-2-4600 MCA. The subject property is composed of two parcels and adjacent City-owned parkland totaling about 4.06 acres. It is located on the south side of Highway 3, just west of Hickok Circle. The two privately owned properties are vacant but are planned for single family homes in the future. The property owners are requesting annexation in order to obtain City services for development of the property. 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 June 11, 2012, meeting and set a public hearing for its June 25th 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).

The City can provide municipal water and sewer services to the subject property. It will be the responsibility of the owner to extend these services to the property from existing service lines along Highway 3. 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 in the future for residential purposes and will contribute additional tax revenue to the City.

The subject property is composed of two private parcels and adjacent Highway 3 right of way, and adjacent city-owned parkland totaling about 4.06 acres.  The City Limits are ajacent to the south and east, and the subject properties are 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 April 27, 2012, the annexation petition was submitted to the Planning Division.
• On June 11, 2012 the City Council acknowledged receipt of the annexation petition and set a public hearing for June 25, 2012.
• On June 25th the City Council will conduct the public hearing for the annexation and may take action on the request.
• On July 9, 2012, 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 July 23, 2012, 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 June 8, and published in the Billings Times on June 7, 2012. The Planning Division has not received any comments on 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 should be 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 along Highway 3.
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 will be automatically zoned Residential-9600 if annexed. 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: Municipal water service is available to the property by connecting to a service line on the north side of Highway 3. The cost to extend service for the property will be at the property owners' expense and the owners have been made aware that this will likely require boring under Highway 3 to extend the service lines.

• Sewer: The property may be served by the developer connecting to the existing low-pressure City sanitary sewer on the south side of Highway 3. The cost to extend sewer service for the property will be at the owners'expense.

• Stormwater: There are no storm water lines in the vicinity so on-site retention will be necessary. Storm water impacts will be identified during the site development process and mitigating measures will be developed at that time to meet the requirements of the city and the public works department.

• Transportation: The subject property has frontage on Highway 3, which is a State highway.  There is an existing approach serving both properties in question and no new accesses are proposed or approved.  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 either Station #3 at 1928 17th Street West or Station #1 located at 2305 8th Avenue North. Both are 4 miles from the subject property.

• Parks: The subject property is adjacent to City parkland to the south. Much of this parkland is rimlands with various trails. Because portions of those City-owned parks directly adjacent are not within the City limits, PRPL has requested that they also be annexed at this time to bring them under the City's park laws and enforcement. 

• Bicycle and pedestrian facilities: The property lies within the jurisdiction of the Billings Area Bikeway and Trail Master Plan. There are existing informal paths along the rims just south of this property within the City's parkland. No new improvements are expected with the future development of these lots.

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 responded that at this time there are no plans to extend a bus route to this area

• 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; it is uncertain if 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).