Owner and petitioner, Almon R. Blain Jr., is requesting annexation of a property legally described as a portion of the south 310 feet of lot 24, Sugar Subdivision, into the City of Billings pursuant to Section 7-2-4600 of the Montana Code Annotated (MCA). The 1.5 acre property is located on the northwest corner of King Avenue East and Calhoun Lane. The petitioner is requesting annexation in order to obtain city services and rezone the property for future commercial development. A City zone change application for the property to rezone it from Residential-9600 to Entryway General Commercial is being processed in coordination with this petition so that the City Council will hear the requests together at the January 24 Council meeting. The Council also is receiving a quitclaim deed from Yellowstone County for a portion of Calhoun Lane as part of the annexation process. The Council should accept the deed at this meeting. The subject property currently has one single family residence on it. The Council acknowledged receipt of the petition at its January 10, 2010 meeting. The Council will hold a public hearing and take action on the annexation request at this 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). A portion of the right-of-way of Calhoun Lane also is proposed to be annexed with this property to conform with State Law. Montana Code Annotated §7-2-4211 states that when a city annexes property it “shall include the full width of any public streets or roads, including the rights-of-way, that are adjacent to the property being annexed.” The County has quitclaim deeded its interest in a portion of Calhoun Lane right-of-way and the City Council should accept this deed as part of its action on this annexation petition.

The City is already providing water service to the subject property and can provide all other municipal services to the subject property. If the proposed annexation is approved, the property is expected to be redeveloped in the future and will contribute additional tax revenue to the City.

The 1.5-acre subject property is located on the northwest corner of the intersection of King Avenue East and Calhoun Lane. The annexation resolution also takes in all adjacent King Avenue East and Calhoun Lane right-of-way. It is surrounded by properties within the City limits, and is within the red boundary of the limits of annexation as specified by the Annexation Map adopted by the City Council on June 8, 2009.

PROCEDURAL HISTORY
• On December 6, 2010, the annexation petition was submitted to the Planning Division.
• On January 10, 2011, the City Council acknowledged receipt of the annexation petition and set a public hearing date for January 24.
• On January 24, 2011, the City Council will conduct the public hearing for the annexation and may take action on the request.
• On February 14, 2011, 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 February 28, 2011, 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 the City Council conduct a public hearing. Notice of the public hearing was posted on the property on January 7, 2011, and published in the Billings Times on Janaury 6, 2011. The Planning Division has 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 and within the Urban Planning Area.
2. The City already provides water service and is able to adequately provide all other municipal services.
3. The proposed improvements will be required to meet City standards.
4. As part of the Development Agreement, the owners will sign a Waiver of Right to Protest the creation of any Special Improvement Districts.
5. The proposed land use 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. Of the County Departments that were informed, only the County Public Works Department 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: The City currently provides water services to the subject property from an existing 12 inch main in Calhoun Lane.

• Sewer: The Public Works— There is no sewer to this property currently. The nearest sewer is an 8 inch diameter main in the alley north of King Avenue East at Calhoun Lane. This main will have to be extended to the property at the property owners expense.

• Stormwater: There is an existing 33 inch stormwater main in Calhoun Lane that drains into the city-county drain on the south side of King Avenue East. City Engineering does not believe the subject property is connected to this drain system. When the property is redeveloped in the future, all storm water improvements shall satisfy the criteria set forth by the City of Billings Stormwater Management Manual and will be subject to review and approval by the Public Works Department. City Engineering staff does not see any issues with the annexation.

• Transportation: The subject property has frontage on King Avenue East, which is a principal arterial street, and on Calhoun Lane, which is a collector street. The lot has an established residence on it, with an existing access off of Calhoun Lane. No issues have been identified by City Engineering or Street and Traffic staffs. If the property is developed in the future for commercial uses, acccess and parking requirements will be reviewed by the City at the time of development.

• Fire Stations: The subject property is currently served by the Billings Fire Department, which will continue to service the property upon annexation. The nearest fire station is Station #2 located at 501 South 28th Street, which is approximately 1.5 miles from the subject property.

• Parks: This Subdivision was platted in 1909 before parkland dedication requirements were in place. There are two large City parks within one mile of the property. Amend Park to the west and Optimist Park to the east.

• Bicycle and pedestrian facilities: The property lies within the jurisdiction of the Heritage Trail Plan. An existing multi-use trail is located along the south side of King Avenue East in this area and King Avenue East is also able to accomodate an on-street bike lane in the future. Sidewalks exist along King Avenue East in this area and as property along Calhoun Lane develops, additional sidewalk will be added in this area.

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. MET operates a fixed route on King Avenue East along the south property line of the subject property.

• Fire: The Fire Department currently provides fire protection to the County parcel as it is within the BUFSA. The Department indicates that they are capable of serving this property in the future.

• Police: The Police Department states that the subject property is located in an established patrol area and there should be no signficant impact to serving the property.

• 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 sewer connection costs, and sign a waiver of protest for a future SID.

• Public Works -Street and Traffic Division: The Street and Traffic Division stated that since the property is small and surrounded by the City it has no problems serving the property.

• Public Works-Solid Waste: The Solid Waste Division notes that it can serve the property with the existing residence on it, or when developed further, but noted that if a private trash collection service now serves the property, the City would be required to wait to serve the property for five years according to law.

• 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. The Finance Department commented that it had no concerns with the annexation. No comments were received from the 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 separated by open space (Land Use Element Goal, page 8).
• More housing and business choices within each neighborhood (Land Use Goal, page 9).
• Improved public services and facilities (Economic Development Goal, page 10).
• Protection of groundwater, surface water, riparian areas, air quality and productive agricultural land (Natural Resources Goal, page 13).
• Sanitary and safe properties (Public Facilities and Services Goal, page 18).