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17. Evergreen Annexationt It 0i @11 Incorporated 1892 Telephone (406) 758-7700 FAX (406) 758-7758 Post Office Box 1997 Kalispell, Montana Zip 59903-1997 MEMO To: Mayor & City Council From: Al Thelen, Interim City Manager ' Date: July 24, 1996 Re.: Evergreen Annexation The Evergreen Annexation that we are proposing as an initial step includes the commercial strip between the current City boundary and West Cottonwood Drive, which includes approximately thirty-five (35) properties. The specific numbers will be presented on Monday. The proposed boundary is designed so that we will have waiver's of the right to protest/request to withdraw from the fire district from more than fifty (50) percent of the property owners. Our current numbers set the property taxable values at about $400,000, and the potential increase in property taxes to the City is at $200,000, street assessments at $15,000, storm sewer assessments at $12,000, and gambling revenues at $75,000, for an estimated total of $302,000. Personal property taxes will be added to this total, but will not increase it significantly. The properties to be annexed will not be required to pay the current Road Levy, which is currently 15 mills; therefore, their county taxes will be Douglas Rauthe Mayor Al Thelen Interim City Manager City Council Members: Gary W. Nystul Ward I Cliff Collins Ward I Norbert F. Donahue Ward II Dale Haarr Ward II Jim Atkinson Ward III Lauren Granmo Ward III Pamela B. Kennedy Ward IV M. Duane Larson Ward IV Mayor and City Council Page 2 July 25, 1996 reduced by $6,000. Our preliminary service study reflects that we can serve this area with our existing manpower and equipment so the major advantage to the City will be the increased tax base. Attached is a memo from City Attorney Glen Neier that indicates two legal approaches to annexation. We will be using section 7-2-4314, which allows for 50% + 1 of the owners to protest out the annexation. As Glen's opinion indicates if boundaries are designed so that 50% + 1 of the owners have consented to the annexation, no legal protest could be filed. The time table for their proposal includes: July 29 Council Workshop -Define Boundaries -Identify All Affected Tracts -Discuss Revenues/Costs -Draft Extension of Services Plan August 12 Council Workshop -Discussion of Resolution of Intent August 19 Vote on Resolution of Intent August 20 Send Notice to Property Owners & Purchasers Under Contract for Deed August 20 Submit Notice to Daily Inter Lake for Publication August 25 Notice Published September 1 Notice Published 2nd Time September 14 End of 20-Day Protest Period September 16 Council Hearing on Question of Annexation Mayor and City Council Page 3 July 25, 1996 It is anticipated that the second phase of the annexation will proceed after October 1, 1996 and will include the balance of the so called "commercial strip" and the Attorney General's opinion referred to in Glen's memo will be the legal basis for Phase II. It can be implemented prior to the end of the calendar year. Incorporated 1892 Telephone (406) 758-7700 Douglas Rauthe FAX (406) 758-7758 Mayor post Office Box 1997 Kalispell, Montana Bruce Williams Zip 59903-1997 City Manager DATE: July 22, 1996 City Council Members: TO: Al Thelen Gary W. Nystut Ward I FROM: Glen Neier0+ Cliff Collins Ward I RE: Protest Scenarios Greenacres/Evergreen Annexations Norbert F. Donahue Ward it Over the past several weeks the City staff has been working Dale Haarr on two proposals to annex a portion of the Greenacres area Wardll South of Kalispell and a portion of the Evergreen Strip. You have requested an analysis of the number of properties Atkinson W subject to annexation within each area based upon the Ward III number of consents or waivers possessed by the City. Lauren Granmo Ward III The City would probably attempt to annex both areas under Title 7 Chapter 2 Part 43 Annexation of Contiguous Land Pamela B. Kennedy � P � g Ward IV Montana Code Annotated. Assuming that preliminary matters are in order and the Council passes a Resolution of M. Duane Larson Intention in either annexation, protests to the annexation Ward IV are dealt with as follows: S 7-2-4314 2) The resolution (finally annexing the property) may not be adopted by the city council if disapproved in writing by a majority of the real property owners of the area proposed to be annexed, and further resolutions relating to the annexation of the area or any portion of the area may not be considered or acted upon by the council on its own initiative without petition, for a period of 1 year from the date of disapproval. The City has in its possession Consent to Annex forms signed by many "property owners" within both the Evergreen and Greenacres area. If boundaries are established for an area in which over 50% of the "property owners" have consented to annexation, the City should be able to resist any challenge to the annexation based upon protest from the Al Thelen July 22, 1996 Page 2 area. "Property owners" for purpose of protest would be the owners of platted tracts or the owners of unplatted tracts for which there is a survey. (§ 7-2-4311, MCA) Each tract, platted or unplatted, would have one vote in protest. If certain properties protested, having previously consented, the City could use the consents to defeat the protest. Under a previous memo, I discussed the effect of a certain A.G. opinion which held a municipality may adopt a rule conditioning receipt or continuation of water and sewer service on annexation. If such a rule was in effect, the City, according to the opinion, could decline to recognize protests because of the election to receive or continue service. As that opinion applies to Greenacres, it would appear to me that the City could argue that individuals within the area to be annexed are served by the sewer and/or water and, therefore subject to annexation under the A.G. opinion. The interpretation would generally increase the number of tracts subject to annexation because there are more lots receiving service than have consented to the annexation. It should be pointed out that the A.G. opinion has not been litigated so there would conceivably be a challenge to an attempt by the City using the opinion as a basis to reject protests. However, if the opinion holds up, the City would be able to annex twice the number of properties that it actually serves. The A.G. opinion has less applicability to Evergreen than Greenacres. In Evergreen, the City is not providing service directly to those individuals served by Flathead Water and Sewer District. I don't believe the City could successfully bootstrap service to a District into consent of individual property owners in order to annex. However, in the Evergreen strip area we have quite a number of recorded consents, which may be used to counter protest received from real property owners within the strip area. GN/sh PC: City Council Pursuant to Sections 7-2-4305 and 7-2-4732 Montana Code Anotated, this document will present a plan for the extension of municipal services to the area identified for annexation in Resolution of Intent # . The area under consideration encompasses approximately 54 acres of public and private land in addition to approximately one (1) mile of U.S. Highway #2 right -or -way. The area is dominated by highway -oriented commercial land uses.There are six single-family dwellings in the affected area and two multiple -dwelling properties. The residential population of the area under consideration is estimated to be no greater than sixty. This report is designed to analyze the demands upon City of Kalispell services that would be realized upon annexation of the area. A service plan is a requirement for all methods of annexation under Section 7-2- 4305, MCA, and must address how a municipality will meet the costs incurred by extending services into the annexed area. This report will demonstrate how municipal law enforcement, fire protection and infrastructure maintenance will be provided to the newly annexed area in a manner and at a level commensurate. with the services being provided to the current City of Kalispell residents. A strategy to finance the services is included as well. In addition to the City of .Kalispell Extension of Services Plan, adopted by the city council in November of 1995, the city's Fire, Police, Parks and Public Works Departments have independently conducted analyses of their respective service needs and costs associated with the proposed annexation. A. LAND -35 Properties Totalling 2,342,918 sq. Ft. (+/- 54 acres) Plus Approximately One Mile of U. S. Highway #2 Right -of -Way -28 Separate Businesses -6 Single -Family Residences -2 Multiple Dwelling Properties B. CURRENT TAXATION 1. Real Property Market Value $10,489,205.00 Taxable Value 404,882.43 ----------------------------------------------------------------------- 1995 Tax $ 164,989.83 2. Personal Property 1995 Tax (estimated) TOTAL C. ANTICIPATED CITY TAX & ASSESSMENTS 1. Real Property 2. Personal Property (estimated) 3. Street Assessments 4. Storm Sewer Assessments $ 40,000.00 ------------------ $ 204,989.83 $ 200,927.93 50,000.00 10,493.20 10, 844.73 $ 272,265.86 Net Increase : $67,276.03 or $0.028 per square foot The Evergreen Water and Sewer District currently provides water service to the area. All or a portion of each property being considered for annexation lies within the boundary of the Evergreen Sewer and Water District. SEWER: The area is served by the Kalispell wastewater treatment plant via the Evergreen sewage collection system. This collection system was constructed in 1993-94 and is owned and operated by the independent Evergreen Water and Sewer District. The District, by contract, has been allotted a 22% share of the City of Kalispell's wastewater treatment plant's current capacity. There are no public storm water drainage facilities within the territory to be annexed. STREETS: The public street system within the area to be annexed includes portions of Woodland Park Drive, Flathead Drive, West Cottonwood Drive and River Road, Montclair Drive in its entirety, and, as is mentioned above, approximately one (1) mile of U. S. Highway #2 right-of-way. Contract haulers currently provide refuse collection and disposal services to the area. The area to be annexed is within the jurisdiction of the Flathead County Sheriffs Department. The Evergreen Rural Fire District provides fire protection service to the area. In terms of land area, the proposed annexation represents less than one-half of one percent (05%) of the rural fire district's jurisdiction. The tax loss to the district will amount to an estimated 2- to 3-percent of their total levy. M ItQt7:y9DIfti D D 1 'l The existing public water supply services of the Evergreen Water and Sewer District will continue to serve the needs of those properties to be annexed. Ownership and operation of the water system will remain with the Evergreen District upon annexation. SEWER: The Evergreen Water and Sewer District will continue to own, operate and maintain the sewage collection system which serves the area to be annexed. And, per the Interlocal Agreement between the City of Kalispell and the Water and Sewer District dated July 25, 1990, effluent from the area will be treated at the city's wastewater treatment plant. No storm drainage infrastructure exists at this time in the area to be annexed. Upon annexation, the area will be incorporated into the city's master storm drainage plan, with improvements designed and installed as financing allows. Following annexation, property owners in the affected area will pay, as do all property owners in the city, an annual Storm Water Maintenance Assessment. Assessments are based on the use and square -footage of the property and range from $.0013735 to .005494 per square -foot. As vacant land in the area to be annexed is developed, and as improved sites are redeveloped, the city will have the opportunity, through the building permit and site review processes, to require proper storm water management. STREETS: It is expected that upon annexation that the City of Kalispell will accept dedication from Flathead County of Montclair Drive and those portions of Flathead Drive, West Cottonwood Drive, Woodland Park Drive and River Road that lie within the area of annexation. The annexation would in no way affect the status of U. S. Highway #2. CpjLn& Rights -of -Way presumed to be dedicated: Woodland Park Dr.- Hwy. 2 to Shady Glen Dr. 0.17 mi. Flathead Drive - Hwy. 2 to Montclair Drive 0.31 mi. Montclair Drive - Flathead Drive to NWNW 9-28-21 0.40 mi. River Road- Hwy. 2 to N. Boundary of W. Cottonwood Dr. 0.07 mi. W. Cottonwood Dr.- River Road to SWSW 4-28-21 0.13 mi. Maintenance costs, including snow plowing, sanding, de-icing, sweeping, patching, and all associated materials, are estimated to be $10,000.00 annually. No new equipment purchases are needed to serve the area, and no additional personnel are required. Asphalt overlays on the streets to be acquired will be needed in the next two to three years. Total estimated cost of overlaying the +/- one mile of roads is $90,000.00. REFUSE SERVICE: The City of Kalispell, in accord with the provisions of 7-2-4736, M.C.A., will not provide solid waste disposal service to the area to be annexed for a period of at least five (5) years from the effective date of the annexation, unless otherwise allowed by the same statute. POLICE PROTECTION: The Kalispell Police Department (KPD), at its current staffing level, will provide police services to the area to be annexed at a level commensurate with that afforded all other city residents and properties. The area under consideration is in closer proximity to City Hall and the Police Department's headquarters than the northerly reaches of the city limits, and because of the presence of Highway #2, much more accessible. The KPD's highly -visible patrol pattern can easily be extended to include the subject property without jeopardizing its efficiency or effectiveness. Furthermore the KPD can generally provide quicker response times than the Flathead County Sheriff's Department for service calls in this area. The sheriff's department, with a documented shortage of manpower, is charged with law enforcement duties county -wide; placing this commercial area in the jurisdiction of the KPD will allow the sheriff to devote more attention to other areas of the county. 1. 4 1t,f The City of Kalispell Fire Department will provide fire protection services to the area upon annexation. The Department has 18 full-time firefighters and three officers. All areas of the city are served by hydrants, the Department is equipped with adequate and up-to-date fire -fighting apparatus, and enjoys an insurance rating of "5". Fire protection is currently provided to residents of the city as far as 2.9 miles from City Hall, with response times to those areas in the 6- to 8-minute range. The easternmost boundary of the annexation is 2.5 miles from City Hall and can be reached in 4 to 5 minutes.. Response times for firefighters and equipment to this area, though equidistant from the fire station, are better than those to the Gateway West Mall on Kalispell's west side. The direct route from the fire station to Highway 2 (East Idaho Street) and then east to the Evergreen area account for the difference in response times. In addition to providing fire fighting services, the city will also be providing fire inspection services to the area to be annexed. Including this area in the city's jurisdiction will also facilitate coordinated building permit plan review between the city's building and fire departments. This coordination will insure that new construction in the area meets all applicable fire codes. One service which is already provided to the subject area, at no cost to the individual taxpayers receiving the benefit, is the Kalispell Fire Department ambulance service. This is a service which will continue to be provided to areas outside the city limits whether this annexation occurs or not. Current fire personnel, equipment and facilities can adequately serve the area. The lone expense associated with the annexation would be that of incorporating the traffic signal at Highway 2 and Wal-Mart into the city's Opticom system. Estimated cost: $3,000.00. Located in the area under consideration is the Conrad Complex - a multiple -use sports complex which represents more than 40,000 visitor use hours per year. Currently, the facility is managed and maintained by the Flathead County Parks Department. Discussions between the city and county regarding the possible transfer of these responsibilities to the city's Parks Department have been initiated. The Conrad Complex land is owned by the Conrad Memorial Cemetery and leased to Flathead County through the year 2006. Renewal of the lease is not expected to be a problem. The county also maintains the landscaped medians in U.S. Highway #2 through an agreement with the Montana Department of Transportation. MDOT has paid to the county $100,000 in trust to maintain these areas through the year 2006. Upon annexation, and with the cooperation of the county, these responsibilities would be'assumed by the city's parks and Recreation Department. As funding is in place, there would be no expense to the city. NET BIPACT AND CONCLUSIONS: As there is expected to be some $375,000.00 ($75,000.00 of which is estimated gaming revenue) of annual revenue realized, to pay annual costs estimated at far less than $100,000.00, the City of Kalispell can effectively and efficiently serve the area being considered for annexation. The owners of property in the affected area will receive municipal services on the same basis and in the same manner as such services are provided throughout the municipality.