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2. Annexation of Wholly Surrounded PropertyPLANNING FOR THE FUTURE MONTANA REPORT TO: Honorable Mayor and City Council FROM: Tom Jentz, Planning Director Dan Diehl, Fire Chief Jane Howington, City Manager SUBJECT: Annexation of Wholly Surrounded Property MEETING DATE: August 23, 2010 (Work session) Planning Department 201 V Avenue East Kalispell, MT 59901 Phone: (406) 758-7940 Fax: (406) 758-7739 www.kafispell.com/planning BACKGROUND: Following a fire along South Meridian several years ago in a home located in the county, but wholly surrounded by the city, the council directed staff to begin reviewing the potential annexation of wholly surrounded areas. Over the past two to three years, the council has discussed the potential annexation of 22 wholly surrounded areas. The areas were placed in four groups based on the issues presented. A number of properties have been annexed by the council over that time. The first group included six properties which were small, isolated widgets. The second group included eight areas which either were receiving city utilities or had them nearby. The remaining seven areas include developed rural subdivisions or rural neighborhoods lacking sufficient infrastructure. These areas generally are larger neighborhoods with much more complex issues than the areas which have previously been annexed. For identification purposes, each of the areas has been assigned a number and are shown on the attached maps. ANNEXATION OF WHOLLY SURROUNDED LAND IN GENERAL Under Montana statutes, there are a number of different methods of annexation. The most common is annexation by petition, whereby a property owner asks to be annexed, typically in order to obtain city services for a subdivision. In recent years, the city has also annexed property contiguous to the city limits without a petition from the property owners (Village Greens and a portion of the Greenacres area). Those annexations were generally limited to areas already hooked up to and receiving water or sewer service or both. Sections 7-2-4501, MCA, et set, provide the procedures to be followed when the city wishes to annex wholly surrounded land. The process is very similar to the annexation of contiguous land. The primary difference is that there is no right of legal protest when property is wholly surrounded. If the council directed staff to proceed, we would contact all property owners in a specific area and hold one or more neighborhood meetings for the purpose of answering questions and providing information to the owners. Essentially, the council must pass a resolution of intent to annex, provide notice to registered voters in the area to be annexed, and then, after considering written comments, pass a resolution of annexation. As part of that process, an extension of services plan must be provided. Additionally, the council will also need to zone the property. One potential approach is to establish an effective date in the resolution of annexation three months from the date of the resolution. The time lag would then allow for the zoning of the property to proceed through the planning board and the council. It is estimated that each annexation would cost approximately $200 - $400 to pay for the public notice, obtaining property owner and registered voters lists, and other processing costs. The extension of services plan will follow current city policy for the extension of services. Note that the process that Kalispell uses was upheld by the Montana Supreme Court in the 2004 case involving the City of Whitefish when they annexed 5 adjacent neighborhoods. The proposed services, as was used in the previously wholly surrounded annexations, would be as follows: Police and Fire - City police and fire services would immediately be made available to the residents annexed. Fire Chief Dan Diehl has indicated that, for residential development and residential scale structure fires, he does not need immediate access to fire hydrants as in most cases he carries enough water on board his trucks to attack a fire. Furthermore, he has recently acquired a water tender, which will provide additional protection. Parks and Recreation - The city parks department would take over maintenance of any county parks. Roads - The city public works department would immediately take over maintenance and ownership of the county roads much the same as the city has when the county transfers over other roads from county to city. Sewer - Property owners would continue using their private septic tanks and drain fields. They would have the option of hooking up to city sewer either through individual extensions or a neighborhood SID financed by the neighborhood. Water - Property owners would have the option of continuing to use their private wells or, as in the case of North Haven, their community water system. They would have the option of hooking up to city water either through individual extensions or a neighborhood SID financed by the neighborhood. Solid Waste - State law limits the city from providing municipal garbage collection for 5 years from the date of annexation thus garbage collection would not change for newly annexed residents. Newly annexed properties would not be assessed for collection services unless, at the end of the 5 year period, they requested municipal services. IMPACT FEES: Impact fees are calculated using the Public Works Department's fee determination schedule. Figures are based on assumptions made at the time of annexation and may not represent accurately the costs associated with the existing property. Water and sewer impact fees would not be collected until such time as a property owner actually connected to these facilities. Stone water fees are not collected for existing construction as the impervious areas (buildings, driveways, walks, etc.) were in place in 2006 when the original stormwater impact fee study was conducted and as such has already been accounted for. Police and fire impact fees are not collected as the presumption is that wholly surrounded properties are already benefiting from the fact that the city surrounds them and for practical purposes have been receiving the benefit of these services for some time without paying for them. 1 1 i '• 1N 1• Below is a list of remaining wholly surrounded properties. The areas have been prioritized by city staff if the city council wishes to proceed with annexation. It should be noted that in the past, the city has been hesitant about annexing areas such as North Haven because, while the subdivision has a community water system, it lacks fire hydrants. Fire Chief Dan Diehl has indicated that this should not be a limiting factor for fire service as a typical fire truck carries an adequate supply of water to address most single family residential house fires. Area #l: North Haven Heights (24.8 acres): The subdivision contains approximately 32 residential lots and a county park. It has paved county maintained roads built to a rural standard, a community water system without hydrants, and individual septic tanks/drain fields. The nearest municipal water and sewer lines would be in Summit Ridge Drive to the south and The Meadows off of Four Mile Drive to the north. There is also a sewer line to the west in a phase of Northland which has not yet been to final plat. Area #2: Meadowland Subdivision (40.4 acres): This subdivision was created in 1972, and is adjacent to Northridge. Several annexations over the last four years (Empire Estates, Northview Heights, and Northland) have wholly surrounded the 46-lot subdivision. Each of the surrounding subdivisions has water and sewer lines. Meadowland has paved roads built to a rural standard, a community water system without hydrants, and individual septic tanks/drain fields. Area #3: Parcels on Two Mile Drive east of Greenbriar (3.68 acres): These 4 homes are wholly surrounded due to the fact that Two Mile Drive to the north of the lots was annexed into the city. The homes themselves are on wells and septics. The nearest city services are water and sewer lines to the south of the parcels running from Cooper Lane to Greenbriar, and to the west (across Spring Creek) at the north end of Greenbriar. Area #4: Tract IAE and IAA near W Montana and 8th Ave WN (1.81 acres): This parcel is mostly vacant, with one building being used for metal fabrication. It is zoned county I-1. The zoning designation and use is important to note because state law does not allow the annexation of wholly surrounded land used for an industrial purpose without the owner's consent. The owner has been contacted and would consider an annexation by petition (i.e. formally requesting annexation). The property is adjacent to city water, with city sewer about a half block away. This area also includes a portion of railroad right-of-way owned by the BNSF Railroad. Areas #5: Ashley Creek area (76.9 acres): This area generally follows Ashley Creek from Airport Road to Sunnyside Drive, and contains about 37 parcels and portions of parcels. The area would be considered residential, and does contain some homes. However, the majority of the area is in the floodplain and not particularly suited for development. Its best use may be as horse pasture (it is currently used in that manner in large part). About three years ago, the Council adopted an amendment to the City Code which would allow the keeping of horses. Area #6: Greenacres/81h Avenue East (162.0 acres): This area is the largest in terms ofboth area and number of lots (about 265 parcels/portions of parcels). It can be broken down into 4 distinct sub -parts: (a) Greenacres; (b) 81h Avenue East south of 14th Street; (c) properties accessed off of 5th Avenue East and 14th Street; and (d) properties accessed off of 3rd Avenue East. (a) Greenacres: Greenacres is a primarily single-family residential area (about 170 lots, mostly containing residential structures). The city annexed a portion of the general area in 2003. The council opted to annex only those properties which were on city water and sewer, or had immediate access to those services. Rather than annex the entire area, the annexation was comprised of properties along Kelly Road and in Meadow Park. The remaining properties generally are served by a community water system and septics, although several houses are on city sewer. (b) 8th Avenue East: The properties extending down 8th Avenue East south of 14th Street are mostly larger residential lots (about 28 homes). The city provides service through a small water line (2") extending for some distance down 8th Avenue. The water line is not owned or maintained by the city, and is not sufficient for hydrants. Additionally, the 1400 $ road dead -ends without a cul-de-sac and there is not sufficient right-of-way to construct one. The properties have septics, and there are no sewer lines within the area. (c) 5th Avenue East: These properties (approximately 27 parcels, although several parcels are held in common ownership and are smaller parcels which are part of a larger property) are mostly located to the east and south of 5th Avenue. Many of the properties have the front of the lot in the city, but the rear yard was left in the county. The line was apparently drawn in that manner as an effective tax break by leaving some of the land under the county tax structure. Other lots are entirely in the county and are accessed by common driveways which serve the essentially landlocked parcels. Many of those parcels have city water, but use septic systems. (d) 3rd Avenue East: The area on the east side of 3rd Avenue between the old Forest Service building and a bit north of Scotty's contains about a dozen parcels. Most of the properties are commercial, although there are a couple houses. There is a mix of utilities, with some having both water and sewer, and some on a well and septic. Public utilities are available, and provision of services would not appear to be a problem. RECOMMENDATION: The Council should direct staff to proceed with the annexation of Area #1 (North Haven). ALTERNATIVES: As suggested by the Council. ATTACHMENTS: City Map Identifying Areas Vicinity Maps for Areas #1-6 City Utility Maps for Areas #1-6 Respectfully submitted, Tom Jentz Planning Director Dan Diehl Fire Chief Jane Howington City Manager Report compiled August 6, 2010 Wholly Surrounded Properties - Insufficient Infrastructure .�r1FLY1pWL� Lw royF � r�irr # oF�lrorxv. M � p,+T � ern • /I,R�5i1X 81 � ■ryl816Y A�LlO L1R i 60 "I+I TIYI[X[il}II ]t .' 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M�IQS YI[IILMK-� ,► �5�-'a Fw.1+4'lL hr 1 LE DR Four Mile UR MILE DR LOT 2' QrECL4-Rr:D fAWCIW VSlrk LOOP 7)'E Mr�AOOVVS AT FOUR MILE I -4W 7 OR NOR MAVEN" - HAVEA DR 140' 2140 ADD 17 14 7 NORTH' #JAVEN N 9. 22 AT�f HAVEN DR FIGHTS summit �, Dr BLIK ,p Scale 1" '250' Wh,{fllv Properties 0 \ox-Ll--, ftd-veii 1-1v-i0ALs. 1st. & 2nd Addlihon arid TrtxcLIC & If-' in Sectior 1, T28N., A8sessoi-s Tj�aQts IrlulUP10 Who ly S urrounded Properties #1 & City Utilities Lo aticn North Haven Heights & Vicinity (imagery from June of 009) 52 V V 4L9CK 13 4EMUST CW L u, . -j HILO-CIP A -6j— VEN 76 HILL TC)p 7' A 7" NOR THRjoG "Orthridge D, 6t-NowrilLAND sua m4 z 140RIHLAN6 Uri Ph I --.q 61 ik4 7? L5 CrN Parkfidge j)r PA N K R'rDG E OR36 3 1. - , 5,-: Apt "-m-rou-Acd Propertics g'P2 K'l(--!ado-vvlaT-,d Subdivision in Section 1, T�M., k2-.N. Assessors "Frack — rnulLiple Wholly Surrounded Properties #2 & City Utilities Location leadowland Subdivision Units 1 & 2 (Imagery from June of 2009) xJF" a + ` N uAYlp off• ''� y � i r • i su�+wrr:p�oaeaR 1 { ALLEY ALLEY • O� t" •i+""t r 1 , PAFLP: MCA; 4dT HEARSTOR jr � - '� a - - g.4LIsv T f rIPA am{ dt J� - ¢k girl F r f.l7 Wr } E+i{rtRnLIp � ± } 'WNBC[TRVJ9VVLW-4V w W w f TOP 4R IP, F . Y { }? 1�ML CARr,fC_dEl}R{ . # • � •' +f + r= Tim E44 4 i14 , a� } Lipp qF r ' Vnr:6CRIWLT,Dl' '9 4 a,i R�F#tLRR M! # ' # F •STA Lfl4 4C1 v OL 16 4. ti I' "r I 1lk } r %- s reoRT}fwFW GTE 16 ■ r 4 ice' t rock E iN F D$I rt a71} Legend r _ � CII4 L. inllti Suttlwry Sewer System Starmwater• �iysta Alipm.imMH)hway94 Mme I Water System StOrM F'OMa ]AM114rip i 0 PORTA VILLA V-,3 PL Co OvLiDtAi2 ,"a 1. Iii. FL TOM ji --->L Ei r J GATEWAy or FHE tw. L,7 OF Ll=r epd* AMu VVE3 Ir A1310 r FWWA f - WLYPTIV t-m "T&WAy v$4 M-T vr4 L." kr. u cc -r;"E RE &MM nm . 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Ass(S-s4.s,or• '1'•c�t. — M tj1f.ip1 Wholly Surrounded Properties #4 & City Utilities Location Railroad & 8th Ave West North Vicinity (Imagery from June of 2009) 171 p 7- 4 Aa a —A, VAD Y, El 21.5 14 KM A Db 1 au EQ r7 -I W. di 'jA all)(Illaux PTr_ F, r,- 110 J� ONE U (ITP' IV t7 Trl�, g. 15 Posro.N "T:'A AUT) LA, - wt -Sunnystdel) 33j ISELSLAR 7 1 i., 3P AGE' 17 BTRATFORD VlLDt.-,'-.r BlUe 'I L L .4 _SfoJUUTH IWEAf)OWS PH I .4sHI RI 19EGG PARR Of A SJ Nj.1; al 40 w In SO U SOUTH MEADOWS 0%) 1.1 z"a 01-341" .Tw !pF & 'rw N, k-x-t"At .41 vi r; ID2 1-4 EA U sc a I c o o . . I._ Whol-v "�urrounded Proportics #5 kfu!t-iple TracLs in Sections 1B & 1-9 As,z,c-,sors Trachs - iwiltiple Wholly Surrounded Properties #5 & City Utilities LoCation unnyside Drive. DenverAvenue. Ashley Creek Vicinity (Imagery from June of 2009) IL Jf'31 % L-6 % ju lb L di 4 1! LI LGIL. KTIR EA 21 21M IL 4 qjq 11 4 #3 jP. aria. 01D W.. tk : 0A '443 ' 7,5 L 00 44 IM -L, 1-1� L7 Ci r, L ' pm MLP4; I 055EV A go M- 4P 4-4 L *F LL ;r M M r'p d 4W 4M % -3 ob k In 4C %7 41p. it DA") -13ii j 4 'Tr -w MLD j SUN tp �reffv Rd AtL A t Lw Allk' 4 70 Wholly SiirrOLU-ided 1-1F,aport-1v;s j16 Greenacres k'-'-ubdivjsi,:>ns and MuMpIc Tracts In SecLions 17 & no, of 'r28N., 1 1W. Assessci's Ti-acts -.1-lultiple Wholly Surrounded Properties #6 & City Utilities Location reenacres Subdivisions & Vicinity (Imagery from June of 009)