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Item 8.
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| City Council Regular | |
| Date: | 08/23/2021 |
| Title: | Resolution to Amend the City Limits of Annexation Map - Public Hearing |
| Presented by: | Wyeth Friday |
| Department: | Planning & Community Services |
| Presentation: | Yes |
RECOMMENDATION
The City Annexation Committee recommends the City Council conduct a public hearing and adopt the Resolution to Amend the Limits of Annexation Map.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
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 fall as the City CIP is reviewed. However, City Council gave staff direction at its Work Session on July 6 to enter compensation agreements to provide water and sewer services to two properties located in the City's Long Range Urban Planning Area portion of the Annexation Map. The Council then formally entered a compensation agreement with one of the property owners at its regular meeting on July 12, and will execute the other agreement at a later date when the property owner moves forward with annexation. Based on this Council action as well as the ongoing work to construct and plan services for the Inner Belt Loop, 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 not recommending any changes to the Policy at this time.
The City Council first adopted an Annexation Policy and accompanying Map 19 years ago in May 2002. 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 5 square miles since 2004 (39 to 44 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 is also a critical element in the community's sustainability. In this case, specific new development projects in the Long Range Urban Planning Area that the City Council wants to ensure are developed in the City to City standards for long term continuity of services and sustainability brought these map amendments forward at this time.
Red Area Recommendations: The Annexation Committee is making two recommendations to City Council to expand the City Annexation Petition Area (See draft map attached). Both of these areas are being recommended due to recent Council direction and action to provide municipal services to the areas, and long-range infrastructure and land use planning activity (Inner Belt Loop Corridor) that will influence these areas for urban development.
Inner Belt Loop Corridor Influence Area - Before the City was awarded a BUILD Grant in September 2020 to construct the Inner Belt Loop (IBL) and the Skyline Trail, there was already significant long-term planning and potential development activity along the Highway 3 Corridor west of the Airport. Since the grant was awarded and work leading up to construction has moved ahead, City staff in Public Works have begun planning efforts to evaluate the extension of water and sewer services along and in the area of the IBL Corridor. Planning staff also has been in discussions with Public Works and some property owners along the corridor to understand property owner plans as well as determine what additional land use and area planning is needed to inform the water and sewer infrastructure needs and determine what it will cost for developers and the City to extend services and support development in the City in the IBL Corridor influence area.
The City has limited water and sewer infrastructure in this vicinity at this time but is planning and evaluating further service expansion as noted above. The Airport continues to monitor development impacts to its operations. Some rezoning in the past 5 years in the area and recent annexations has led to initial development by Billings Flying Service north of Highway 3. The Rehberg Ranch Subdivision also has substantial area master planned for development that is viable with the IBL constructed and utility infrastructure further expanded. The MPO's completion of the Highway 3 Corridor Study in 2015 and the adoption in 2020 of the Inner Belt Loop Corridor Study by the City and County, also identified high-level future urban development potential for the IBL Corridor and areas along Highway 3. The City made an initial amendment to the Limits of Annexation Map in October 2020 to include areas along Highway 3 and at the eastern side of the IBL at the intersection of Highway 3 and Rod and Gun Club Road. This was done realizing this area is critical for development in the City and for future planning for City services.
The Annexation Committee in reviewing the City's ongoing and increasing attention on utility and land use planning for the entire IBL Corridor influence area, as well as the Council decision in July to begin extending utilities up Alkali Creek Road in anticipation of the Mitchell development and also future development and utility connections at the east end of the IBL, is recommending the entire IBL Corridor Influence Area be included in the City Annexation Petition Area of the Limits of Annexation Map. This will send a clear and consistent message to property owners and the community that the City expects the area to develop in the City in the long term, wants to discuss development plans with property owners in this area first before they contemplate County development, and is working to achieve this goal through assessment of water and sewer planning and land use planning.
.
Harnish Trade Center/East Lane Area - Based on the City Council's direction at its Work Session on July 6, and action on a compensation agreement with Messinger Company, LLC (Coca-Cola) at its meeting on July 12, the Annexation Committee is recommending amendments to the City Annexation Petition Area in the Harnish Trade Center/East Lane area. The Committee utilized the planned extension of water and sewer services to reach the Coca-Cola property along the South Frontage Road, existing City water service along East Lane from a crossing under I-90, as well as ongoing phased annexation and extension of services through the Annafeld Subdivision to East Lane, as a basis for the area it is recommended by included at this time. The change reflects the expected inclusion of this area south of Interstate-90 in the City over time to result in development at City standards and on municipal services to reduce impacts to the Yellowstone River from individual septic systems and wells. The development of the Coca-Cola manufacturing and distribution facility is expected to move relatively quickly with annexation in late 2021 and construction to begin in 2022. Additional property in the area that is proposed for inclusion in the City Annexation Petition Area is expected to annex in the future based on development or redevelopment of the property.
The City Council first adopted an Annexation Policy and accompanying Map 19 years ago in May 2002. 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 5 square miles since 2004 (39 to 44 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 is also a critical element in the community's sustainability. In this case, specific new development projects in the Long Range Urban Planning Area that the City Council wants to ensure are developed in the City to City standards for long term continuity of services and sustainability brought these map amendments forward at this time.
Red Area Recommendations: The Annexation Committee is making two recommendations to City Council to expand the City Annexation Petition Area (See draft map attached). Both of these areas are being recommended due to recent Council direction and action to provide municipal services to the areas, and long-range infrastructure and land use planning activity (Inner Belt Loop Corridor) that will influence these areas for urban development.
Inner Belt Loop Corridor Influence Area - Before the City was awarded a BUILD Grant in September 2020 to construct the Inner Belt Loop (IBL) and the Skyline Trail, there was already significant long-term planning and potential development activity along the Highway 3 Corridor west of the Airport. Since the grant was awarded and work leading up to construction has moved ahead, City staff in Public Works have begun planning efforts to evaluate the extension of water and sewer services along and in the area of the IBL Corridor. Planning staff also has been in discussions with Public Works and some property owners along the corridor to understand property owner plans as well as determine what additional land use and area planning is needed to inform the water and sewer infrastructure needs and determine what it will cost for developers and the City to extend services and support development in the City in the IBL Corridor influence area.
The City has limited water and sewer infrastructure in this vicinity at this time but is planning and evaluating further service expansion as noted above. The Airport continues to monitor development impacts to its operations. Some rezoning in the past 5 years in the area and recent annexations has led to initial development by Billings Flying Service north of Highway 3. The Rehberg Ranch Subdivision also has substantial area master planned for development that is viable with the IBL constructed and utility infrastructure further expanded. The MPO's completion of the Highway 3 Corridor Study in 2015 and the adoption in 2020 of the Inner Belt Loop Corridor Study by the City and County, also identified high-level future urban development potential for the IBL Corridor and areas along Highway 3. The City made an initial amendment to the Limits of Annexation Map in October 2020 to include areas along Highway 3 and at the eastern side of the IBL at the intersection of Highway 3 and Rod and Gun Club Road. This was done realizing this area is critical for development in the City and for future planning for City services.
The Annexation Committee in reviewing the City's ongoing and increasing attention on utility and land use planning for the entire IBL Corridor influence area, as well as the Council decision in July to begin extending utilities up Alkali Creek Road in anticipation of the Mitchell development and also future development and utility connections at the east end of the IBL, is recommending the entire IBL Corridor Influence Area be included in the City Annexation Petition Area of the Limits of Annexation Map. This will send a clear and consistent message to property owners and the community that the City expects the area to develop in the City in the long term, wants to discuss development plans with property owners in this area first before they contemplate County development, and is working to achieve this goal through assessment of water and sewer planning and land use planning.
.
Harnish Trade Center/East Lane Area - Based on the City Council's direction at its Work Session on July 6, and action on a compensation agreement with Messinger Company, LLC (Coca-Cola) at its meeting on July 12, the Annexation Committee is recommending amendments to the City Annexation Petition Area in the Harnish Trade Center/East Lane area. The Committee utilized the planned extension of water and sewer services to reach the Coca-Cola property along the South Frontage Road, existing City water service along East Lane from a crossing under I-90, as well as ongoing phased annexation and extension of services through the Annafeld Subdivision to East Lane, as a basis for the area it is recommended by included at this time. The change reflects the expected inclusion of this area south of Interstate-90 in the City over time to result in development at City standards and on municipal services to reduce impacts to the Yellowstone River from individual septic systems and wells. The development of the Coca-Cola manufacturing and distribution facility is expected to move relatively quickly with annexation in late 2021 and construction to begin in 2022. Additional property in the area that is proposed for inclusion in the City Annexation Petition Area is expected to annex in the future based on development or redevelopment of the property.
STAKEHOLDERS
Amendments to the City Limits of Annexation Map are completed through a public hearing and action on a resolution by the City Council. The public hearing was advertised as required. Several property owners or agents also attended the City Council July 6 Work Session when this issue was discussed and Council provided direction to staff to move forward with compensation agreements for utility services. Staff has also been in contact with other property owners in the area of these map amendments. The general public also is able to participate in the process by providing comments to the staff, or at the public hearing for this item at the City Council meeting. Staff had not received any comments on the map amendments at the time this memo was drafted.
ALTERNATIVES
The City Council may:
- Amend the Limits of Annexation Map per the Annexation Committee's recommendations and recent City Council direction; or
- Not Amend the Limits of Annexation Map per the Annexation Committee's recommendations and recent City Council direction; or
- Make modifications to the Limits of Annexation Map different than the Annexation Committee's recommendations. If the Council decides to make other modifications not included in the Annexation Committee's recommendations, staff will need to revise the resolution and map and bring the item back for action at a future Council meeting.
FISCAL EFFECTS
Making amendments to the City Limits of Annexation Map does not immediately impact the City budget. However, the Council in agreeing to enter compensation agreements and to assist in funding utility extensions for the Coca-Cola project in the Harnish Trade Center area and the Mitchel development at the east end of the Inner Belt Loop Corridor area along Alkali Creek, did commit to expending funds for these areas to be annexed.The Coca-Cola project contribution from the City is $250,000 and the utility extension projects for the Inner Belt Loop east area is about $3.1 million. Both of these expenditures are accommodated in the FY22 Public Works Budget.
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 two areas it has recommended for inclusion in the Annexation Petition Area based on recent Council direction.
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 two areas it has recommended for inclusion in the Annexation Petition Area based on recent Council direction.