Bill Morgan of Sanderson Stewart on behalf of William and Kathy Baumann, has submitted a petition to annex two parcels using the provisions of Section 7-2-4600, MCA. The subject property is 8.733 gross acres and is described as Tract 3 of Certificate of Survey No. 2866 and that portion of unplatted land being described as the N1/2,S1/2,N1/2,SE1/4,NW1/4 of Section 22, T.1N., R.26E., P.M.M., Yellowstone County. The property is located east of Lake Elmo Drive and south of Unita Park Drive in the Heights. The northern parcel is used as a single-family dwelling and the southern parcel is vacant, however its proposed use is an affordable senior living facility. The property is adjacent to City Limits to the east, north and west.  The owner is requesting annexation in order to develop the property to receive city services including water and sewer. The property is located within the City Annexation Petition Area on the City's Limits of Annexation Map and appears to meet 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 the time of public hearing.

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 via an existing main in the adjacent rights-of-way. Staff is recommending two standard conditions of approval: That the applicant shall enter into a Development Agreement with the city of Billings prior to site improvements; or the applicant will execute a Subdivision Improvement Agreement (SIA) as part of a subdivision process. For this annexation, the petitioners will be entering into a Development Agreement which will also is scheduled to be acted on during the May 14 City Council Meeting following action on the annexation petition. The City will receive property tax revenue and payment for fees and assessments for City services.

The subject property is 8.733 gross acres. The property is located east of Lake Elmo Drive and south of Unita Park Drive in the Heights. The property is part of a residential subdivision. The single family dwelling currently receives municipal water service but does not have access to city sewer services. It is adjacent to City Limits to the east, north and west. The property meets the City's criteria in its Annexation Policy.

PROCEDURAL HISTORY

• On March 20, 2018, the annexation petition was submitted to the Planning Division by the owner's agent.
• On May 14, the City Council will conduct the public hearing for the annexation and may take action on the request.
• On May 28, if the City Council approves the annexation resolution, a public hearing and first reading of an ordinance to include the property in City Council Ward II will be conducted.
• On June 11, the City Council will conduct the second and final reading for the ordinance expanding the Ward II 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 April 27 and published in the Yellowstone County News on April 27th and May 4th. The Planning Division has not received any inquiries about this petition at the time this memo was prepared.

Although Montana Code does not require the City to prepare a provision of public services plan for Annexation by Petition (Section 7-2-4600, MCA), it is the City’s custom to have staff prepare an analysis of predicted impacts to services and facilities, and information on how services will be provided to the property after annexation. The proposed annexation complies with the adopted Annexation Policy criteria as follows:

1. The area is located within the City's Annexation Petition Area on its Limits of Annexation Map.
2. The City is able to provide municipal water and sewer services to the property.
3. Any proposed public improvements within the area to be annexed will 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.
5. If annexed, any proposed land use will comply with the zoning. The property is currently zoned Residential Multi-Family.

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/sewer: Sanitary sewer service is available from existing mains located in Lake Elmo Road and Uinta Park Drive.  This property is located within The County Water District of Billings Heights and will receive water service from the District.      

• Storm water: All of the storm water runoff from this property will need to meet the City of Billings requirements for storm water management. Any future development will follow the City of Billings storm water regulations. The developer will be required to meet all storm water requirements at the time of development.  

• Transportation: The developer will be required to identify and mitigate all traffic impacts at the time of development.

• 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 Billings Fire Department stated that as these annexations occur, additional fire department resources will be needed, especially if the parcels are developed as a high-density use.

• Parks: Unita Park is approximately 50 feet away and Arrowhead Park is approximately 900 feet away. At this time there is no PMD or expansion required.

• Bicycle and pedestrian facilities: The property lies within the jurisdiction of the Billings Area Bikeway and Trail Master Plan. A shared use path is shown along the eastern edge of this property along Lake Elmo Drive. The property does not have sidewalk at this time. Sidewalk construction will need to occur as part of the Development Agreement between the petitioner or future property owner and the City of Billings. 

• School facilities: The subject property would be served by Billings School District #2 for elementary, middle school and high school. The property is expected to develop for residential use, but the demand on schools in the area would be minimal if the development is focused on senior living facilities. This property would be served by Bench Elementary, Medicine Crow Middle School, and Skyview High School.

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 Fire Department in its comments above did note its concerns as additional property is annexed into the City.

• Transit: MET transit system operators have no objections to the annexation request. Rt. 18 goes by the property on Lake Elmo Drive currently.

• Police: The Police Department staff stated that while the Department can serve the area as it is already in an established patrol area, continued annexation and development will eventually adversely impact the Department's ability to deliver services.

• Public Utilities: The Public Works  Distribution and Collection Division had no concerns with the annexation request.

• Public Works: Street and Traffic Division: The Street and Traffic Division stated that it has no concerns with serving the property.

• Public Works: Solid Waste: The Solid Waste Division has no concerns with annexing the property, but pointed out that State Law allows the property owner to choose which 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 property 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 and did not provide any comments with the 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. The Planning Division staff supports the annexation because the property is in the City Annexation Petition Area, has access to City services, is in an area that in the long term should develop to City standards, and with the proposed development is expected to bring in more revenue to cover the costs of delivering services to the property. It is a good example of infill development.

Annexation of this property would adhere to the following guidelines of the 2016 City of Billings Growth Policy:

• Strong Neighborhoods: Implementation of the Infill Policy is important to encourage development of underutilized properties in existing neighborhoods.
• Home Base: a mix of housing types that meet the needs of a diverse population is important. Development of infill housing will ensure development that is healthy and safe.

The development is in accordance with the Heights Neighborhood Plan in the following ways:

• To annex county property that is wholly surrounded by City services to provide city services to residents.
• To encourage infill housing.