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HomeMy WebLinkAbout01-28-19 City Commission Packet Materials - A1. Res 4972, Consideration of Property Annexation in Riverside District1 Commission Memorandum REPORT TO: Mayor and City Commission FROM: Chuck Winn, Assistant City Manager Andrea Surrat, City Manager SUBJECT: Commission Resolution 4972 stating conditions necessary for the City Commission to consider annexation of property located within the Riverside Water and Sewer District. MEETING DATE: January 28, 2019 AGENDA ITEM TYPE: Action RECOMMENDATION: That the City Commission adopt Resolution 4972 and direct staff to work with appropriate parties to initiate and complete the Riverside annexation. RECOMMENDED MOTION: I move to adopt Resolution 4972 and direct staff to work with the appropriate parties to initiate and complete the Riverside Annexation. STRATEGIC PLAN IMPLMEMENTATION: This action affects three different goals in the Strategic Plan; 4. A Well-Planned City - 4.2.a Manage Growth Adjacent to City, 4.3.e, Annexation of Islands and Critical Adjacent Lands, and, 6. A Sustainable Environment - 6.1.a Watershed Management. BACKGROUND: Fifty years ago the Riverside Manor development was subdivided. At that time the development was nearly three miles outside of City limits and a water and sewer district were created to provide services to the new subdivision. Today, the Riverside Water and Sewer District No. 310 (District) owns and operates facilities and systems that provide water and sewer services to approximately 59 single family homes, 64 townhouse units, and the Riverside Country Club. In December of 2011, the Montana Department of Environmental Quality (MDEQ) conducted an inspection of the District’s wastewater facilities and informed the District of a number of deficiencies requiring correction. Since that time the District has been exploring options to correct the violations. Two options have risen to the top for further consideration; construction of a new wastewater treatment plant for the District, and, connection to the City’s Water Reclamation Facility (WRF). On August 18, 2014 the Commission considered an action item that included an interlocal agreement with the District that would have allowed connection to the WRF with an annexation deferral for the properties within the District. Initially, the District requested a 10-year deferral while city staff recommended a five-year annexation deferral. The City Commission approved the interlocal agreement with a maximum 18-month deferral. The interlocal agreement was never signed by the District. 103 2 In the intervening years, city staff has met with District representatives on many occasions and discussed several options for connection to the WRF. Additionally, city staff has provided different cost analysis and done much work to provide information they requested to provide to their residents. The District has not yet petitioned for annexation. The main hurdle appears to be some residents’ concern with annexation into the City and how being Bozeman residents will impact their neighborhood. In an effort to provide as much certainty as possible to the residents as they consider annexation, we have prepared a resolution for Commission consideration that includes the main terms and conditions of annexation and sewer connection. On December 3, 2018 staff was prepared to present a version of this resolution to the Commission for consideration but the District asked for additional time to negotiate changes they believed would assist them in having productive conversations with residents within the District. The Commission approved additional time for further discussion and we are here tonight with Resolution 4972 for your review and possible adoption. As proposed, City Commission consideration of annexation would come through resident petition and staff believes this document must contain clear expectations and requirements as the residents within the District consider whether they wish to become part of the City of Bozeman. This memo summarizes city staff’s preliminary consideration of the issue and the unique elements of this request. GENERAL Annexation of the Riverside properties will occur through a request for annexation signed by more than 50% of the resident electors owning real property in the area to be annexed or the owner or owners of real property representing 50% or more of the total area to be annexed. • Upon annexation, the annexed properties will be part of the City for all municipal and governmental proposes including debts, taxation, city street and tree, arterial and collector district assessments, representation, enforcement of laws and ordinances including the City’s Unified Development Code (UDC), etc. • The City Commission will not immediately require, at the time of annexation, property owners to upgrade streets and sidewalks within the District to City standards though future city commissions may require property owners to do so. ANNEXATION Annexation needs to be of a mutual benefit to the City and the property owners and the City must be able to deliver municipal services upon annexation. The City receives, processes, and approves annexation requests every year. However, this circumstance is unusual due to the number of owners and that the District rather than individual owners are approaching the City. Therefore, there will likely be modification to the standard procedures. The City uses Part 46 annexation by petition wherever possible. This is the simplest option for annexation. Typically, the City relies upon an annexation agreement to address some elements of state law requirements for annexation. Due to the large number of owners and the unusual circumstances motivating the annexation, staff believes the use of an extension of services plan is a better option. However, this also means modifications in standard procedures. Staff will work with Riverside representatives to create an appropriate Petition by owners of land which will include the 104 3 request to be annexed and a waiver of right to protest creation of an SID to construct the needed sewer improvements. SEWER The City’s annexation policy, adopted by Commission Resolution 4400 calls for the annexation of any contiguous property for which City services are requested. The area of Riverside is contiguous along Springhill Road. See the attached map. The Riverside area is within the City’s sewer and water service boundaries. It is in the East Gallatin River drainage basin in the 2015 Wastewater Master Plan. It also within the City’s planned urban expansion area as shown on Figure 3-1 of the Bozeman Community Plan. The City’s water reclamation facility has the capacity to serve the additional load from 127 homes and the Riverside Country Club. The proposed service plan is to use the existing collection system and add a single lift station and force main to cross the East Gallatin River and connect to the WRF. The Riverside properties will be responsible for all costs of the project which is anticipated to be paid through the creation of a new Special Improvement District (SID). The City will own and operate the collection system but will not take ownership or responsibility for the existing treatment facilities. The City will have the opportunity to coordinate the installation of the new equipment for future connections to the Sypes Creek, Deer Creek, and Churn Creek drainage basins as anticipated in the Wastewater Facility Plan. The City has conducted inspection of the existing collection system with its TV camera van and finds the pipes to be in generally good condition but not to the City’s standards. As the new services will be provided entirely by the City any nutrient or other beneficial credits that are created by the change to municipal sewer service are to be provided solely to the City’s benefit. There is high ground water in the area and some of the homes discharge sump water into the sewer system which has a negative effect on WRF operations and consumes extra capacity. It will be the responsibility of each property owner to disconnect any sump pumps discharging into the sanitary sewer. Additionally, it is proposed that property owners install individual water meters so that proper and accurate sewer charges can be calculated. WATER The District currently provides their residents water for domestic consumption and firefighting purposes. They are proposing they remain responsible for water provision to the area after annexation and city staff is agreeable to this at this time. However, it is important that the District not expand its service area. The Fire Department has verified adequacy of firefighting flow although the amount available does not meet the gallons per minute standards normally expected in the City. The City has interest in future acquisition of the District’s water assets including the water rights. When such future transfer occurs, the City will be taking on the entire assets and obligations of the system and therefore such future transfer will occur at no cost to the City. During the interim, the entire system shall be maintained in good condition will all repairs and maintenance meeting City standards. These terms regarding water and sewer systems will be memorialized by a contract between the City and the District. FIRE SERVICES The area is currently served by the Central Valley Fire Department (Central Valley). State law requires that if Central Valley is carrying debt then the areas to be annexed must continue to meet 105 4 that obligation. We are assessing Central Valley debt related to the construction of a new fire station and will determine how that debt will be assessed to the annexed properties. STREETS The Riverside subdivisions have non-standard City streets. They appear to be operating adequately and were recently overlaid. At this time we do not see a need to immediately bring them to City standards. A rural street maintenance district is in place for maintenance of the streets. Springhill Road divides the area to be annexed and is an MDT jurisdiction street. The City must annex all streets within or adjacent to annexing property. The residents have requested the ability to pay for more frequent snow plowing and we have no objection to this request. RIVERSIDE COUNTRY CLUB The area to be annexed includes some or all of the Riverside Country Club and golf course. The size of the golf course has an impact on being able to meet the 50% threshold for petitions for annexation. The intent of the initial annexation is to capture all areas connected to the wastewater system and the golf course may not want to include all its property in the annexation area. A similar situation exists at the Valley View golf course with the clubhouse located in city limits but the majority of golf course outside. We need to have further conversation with the District on this particular issue but there appears to be options for a similar situation to occur with this annexation. POLICY IMPLICATIONS Since 1984, the City’s annexation policies have encouraged orderly annexation that considers ability to serve urban services boundaries while considering the cost impacts of providing those service. It is a large step for existing development to have to retrofit all of the existing streets, water, and sewer facilities at one time. Previously created community water and sewer systems typically have had some operational oversite from DEQ which is different from the individual onsite septic and well systems from most single lot annexations. As a rule, we believe it is better to have urban level development inside the City than not. This will require creativity and flexibility when annexing places like Riverside that originally developed in more rural areas when the City boundary was far away. City staff does not support creation of new non-municipal community water or sewer systems within the municipal water or sewer planning boundaries. The City should actively oppose permitting for such systems. Staff supports annexation processes that bring community systems into municipal operation and ownership and in the long term upgrades to municipal standards and connections. NEXT STEPS The action item before the Commission is to pass a resolution outlining key terms under which the City will consider annexation. This will enable the District and city staff to work together with owners in the annexation area to move the process forward with understanding of Commission priorities and concerns. Any and all agreements drafted will come back before the Commission for review. UNRESOLVED ISSUES: None determined at this time. ALTERNATIVES: As determined by the Commission. FISCAL EFFECTS: None identified. 106 5 Attachment A: Riverside Maps Attachment B: Resolution 4972 Report compiled on November 6, 2018 107 6 108 7 109 Page 1 of 14 COMMISSION RESOLUTION NO. 4972 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, STATING THE CONDITIONS NECESSARY FOR THE COMMISSION TO CONSIDER ANNEXATION OF PROPERTY LOCATED WITHIN THE RIVERSIDE COUNTY WATER AND SEWER DISTRICT NO. 310. WHEREAS, the City of Bozeman (“City”) has established comprehensive annexation goals and policies to provide for orderly, well-planned growth of the City; and WHEREAS, the City established these goals and policies in accordance with annexation statutes as set forth in Title 7, Chapter 2, MCA; and WHEREAS, it is the goal of the City to encourage annexations of land contiguous to the City; and WHEREAS, the City seeks to annex all property contracting with the City for services; and WHEREAS, it is the goal of the City to require annexation of all land proposed for development lying within the service boundary of the existing sewer system as depicted in the Bozeman Community Plan (Growth Policy), and to encourage annexations within the urban growth area identified in the Growth Policy; and WHEREAS, it is the policy of the City to require annexation of any contiguous property for which City services are requested or for which City services are currently being contracted; 110 Resolution 4972, Riverside Annexation Conditions Page 2 of 14 and WHEREAS, Riverside County Water and Sewer District No. 310 (“District”) is a water and sewer district organized and operating pursuant to §7-13-2200 et seq., MCA, and is located contiguous to the City; and WHEREAS, in December of 2011, the Montana Department of Environmental Quality (“MDEQ”) conducted an inspection of the District’s wastewater facilities and informed the District of a number of deficiencies that needed to be corrected with respect to treatment and disposal of its wastewater; and WHEREAS, the District is comprised of and serves properties contiguous to the City described as Riverside Manor Subdivision, Riverside Greens Subdivision, and Riverside Country Club (“Riverside Properties”); and WHEREAS, the City’s water reclamation facility (WRF) is contiguous to the Riverside Properties and has the capacity to treat and dispose of the wastewater that is collected within the District; and WHEREAS, in 2014, the City Commission heard a request from the District and several owners of Riverside Properties to enter into an interlocal agreement with the District that would have connected the District’s wastewater collection system to the WRF; at that time, the City Commission determined that should the City agree to assist the District and its residents in addressing the District’s wastewater issues, annexation could not be delayed for longer than 18 months after the connection; and WHEREAS, since 2014 the District has been pursuing options related to addressing the wastewater issues raised by the MDEQ; and WHEREAS, on March 17, 2016, the MDEQ issued its Administrative Order on Consent (AOC) (Docket No. WQ-15-18) requiring the District to develop a compliance plan explaining 111 Resolution 4972, Riverside Annexation Conditions Page 3 of 14 how the District intends to return its wastewater treatment operations to compliance with the Montana Water Quality Act and Montana’s Public Water Supply Laws; and WHEREAS, in May of 2018 the District communicated to MDEQ its preferred alternative for complying with MDEQ’s AOC is to connect its wastewater collection system to the City’s WRF; and WHEREAS, in 2018 the District and the City renewed discussions regarding entering into an agreement with the City whereby the City would treat and dispose of the wastewater collected within the District and Riverside Properties would petition to be annexed into the City as a condition of receiving wastewater services; and WHEREAS, §7-13-4314, MCA, and Sec. 40.03.1380, BMC, provide that any person, firm, or corporation receiving sewer or wastewater service outside of the incorporated city limits may be required by the City, as a condition to initiate or extend such service, to consent to annexation of the property served by the City; and WHEREAS, the City believes that annexation is an appropriate prerequisite to providing wastewater services to the Riverside Properties and, upon the filing of a petition for annexation pursuant to §7-2-4601, MCA, the City will provide a plan for the extension of municipal services to the area to be annexed; and WHEREAS, an extension of services plan can be specifically tailored to Riverside Properties, for extending each municipal service based on the present circumstances concerning existing services, systems, and facilities so as to, in part, recognize the character of existing neighborhoods; and WHEREAS, a petition for annexation and an extension of service plan may address issues that are in the best interests of the City and its inhabitants, as well as the Riverside Properties and their inhabitants, such as, but not limited to, rights of way, easements, transportation facilities, water rights or cash-in-lieu, waivers of right to protest creation of special improvement districts 112 Resolution 4972, Riverside Annexation Conditions Page 4 of 14 (SID) and/or special districts or maintenance districts, impact fees and water and sewer hookup fees, recognition of existing improvements and reservation of existing maintenance responsibilities; and WHEREAS, the City and the District may enter into an agreement for the City to acquire the District’s wastewater collection facilities and to treat and dispose of the wastewater collected within the Riverside Properties pursuant to §7-11-101 et seq. MCA (an “Interlocal Agreement”); and WHEREAS, the District represents to the City that connecting the District’s wastewater effluent to the City’s WRF, which will involve designing and constructing additional infrastructure (the “Project”) will address the issues raised by the MDEQ with the District as well as improve water quality in the East Gallatin River– a benefit to residents of the Riverside Properties, the residents of the City of Bozeman, Gallatin County, and the State of Montana; and WHEREAS, upon request of the District the City desires to provide the District and its residents a framework within which a petition for annexation will be favorably received for the Riverside Properties; and WHEREAS, the City recognizes that the Riverside Properties consists of existing platted subdivisions with more than 100 property owners with existing neighborhood characteristics; and WHEREAS, the City Commission recognizes providing such a framework in a non-binding manner may facilitate a final resolution to the District’s wastewater compliance issues with the MDEQ and facilitate resolving the issue of whether the City will participate in such a solution on behalf of the District and the Riverside Properties. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana: Section 1 113 Resolution 4972, Riverside Annexation Conditions Page 5 of 14 The Commission determines it will be in the best interests of the City of Bozeman and its residents, visitors, and businesses and of the owners and residents of the Riverside Properties to extend the boundaries of the City of Bozeman to include said Riverside Properties within the corporate limits of said City of Bozeman, Montana. The terms and conditions under which the City Commission would look favorably upon a petition for annexation, submitted pursuant to Title 7, Chapter 2, Part 46, MCA, are as follows: 1. Petition for Annexation. To consider annexation of the Riverside Properties the owners of the Riverside Properties must, along with paying all required fees, submit a written petition containing a description of the area requested to be annexed, the requested zoning, and signed by more than 50% of the resident electors owning real property in the area to be annexed or the owner or owners of real property representing 50% or more of the total area to be annexed. The Commission will look most favorably upon a petition containing more than 60% of the above. 2. Processing of the Petition. Upon receipt of a petition, the City will process the petition pursuant to Montana law in the same manner as all other petitions for annexation, including all applicable zoning procedures, so that the petition can be properly and timely placed on the City Commission agenda for consideration. 3. Post Annexation Treatment. Consistent with the City’s policy and the manner in which it treats other annexed properties, the Riverside Properties will become part of the City upon annexation for all municipal and governmental purposes including voting, debts, taxation, representation, enforcement of laws and ordinances including the City’s Unified Development Code (UDC), etc. Upon annexation, the Riverside Properties and their owners/residents shall be entitled to the same privileges and benefits as provided to other parts of the City and their residents. The Commission, however, recognizes that the Riverside Properties are unique in that they have been part of established neighborhoods with their own character for many years. As such, the Commission will not at this time require property owners to upgrade streets and sidewalks within the District to City 114 Resolution 4972, Riverside Annexation Conditions Page 6 of 14 standards at the time the Riverside Properties are annexed, or otherwise change the physical appearance of the neighborhoods. Such a decision, however, cannot bind future city commissions, which may require property owners to do so. a. Until the Project is completed, the District must be responsible for collecting and treating wastewater collected within its boundaries, as well as charging and collecting the appropriate fees for the same. b. Upon completion of the Project, the City will charge all costs for wastewater collection and processing directly to the owners/residents of the annexed properties in the same manner as all other City wastewater customers. The City will require property owners or the District as a condition of receiving wastewater service to install water meters on their water service to determine the volume of wastewater generated by the Riverside Properties. In addition, the City will determine the assessment rate and methodology for wastewater treatment including any additional charges for operation of any required lift stations. c. Property owners may plow their own streets though all properties within the area to be annexed will be subject to full City street maintenance assessments. 4. Existing Rural Improvement Districts (RIDs). The Commission recognizes the Riverside Properties appear to be included in Gallatin County’s Rural Improvement District (RID) Maintenance Program through RID 308 and RID 346. At the time of submission of the petition for annexation, the owners of the Riverside Properties will need to explain how these RIDs will be addressed, with the understanding the existence of the RIDs cannot reduce the assessments by the City for street and tree, and arterial and collector district assessments. The City will not be responsible for any outstanding maintenance assessments or indebtedness the Riverside Properties may have for these RIDs. The City 115 Resolution 4972, Riverside Annexation Conditions Page 7 of 14 encourages the Riverside Properties to request Gallatin County use existing RID funds to make scheduled maintenance. 5. Central Valley Fire District Debt. The City understands the Central Valley Fire District (CVFD), of which the Riverside Properties are currently located within, may have undertaken financial commitments related to construction of a new fire station. At the time of submission of a petition for annexation the District or the Riverside Properties must inform the City of the manner in which the District or the Riverside Properties will release and hold the City harmless from any ongoing or future debt services payments to the CVFD. 6. District/Riverside Properties Responsible for All Costs of the Project/Financing Options. The District and/or the Riverside Properties shall be solely responsible for paying for all costs of the Project. If the Riverside Properties desire for the City to create a SID for selling bonds to finance the costs of the Project, in addition to the petition for annexation, the owners of the Riverside Properties must submit a petition for the creation of a SID to fund the Project. The petition must be pursuant to §7-12-4102(3), MCA and must detail the costs to be covered by the SID assessments which such costs must include costs of design, construction, costs associated with the sale of bonds, and administrative costs including those applicable to the City’s SID revolving fund. If not all owners of the Riverside Properties sign such a petition for creation of a SID the petition for annexation must at a minimum include a waiver of right to protest creation of such a SID from every property owner signing the annexation petition. Waivers of right to protest such a SID must be provided in sufficient number to exceed the protest thresholds provided in §7- 12-4113, MCA. If the residents find alternative financing so as to not seek the City’s assistance in financing the Project the petition for annexation or the interlocal agreement with the District must indicate the method of financing and indicate such financing has been secured and will be made available to the City to pay for the City’s costs associated with the Project. The owners of the Riverside Properties recognize that for the City to create a SID to finance the Project the Riverside Properties must be annexed into the City prior to the City commencing the process to create the SID. 116 Resolution 4972, Riverside Annexation Conditions Page 8 of 14 7. Waivers of Rights to Protest for Infrastructure. Consistent with other annexation, the City seeks waivers of rights to protest for the financing of important public infrastructure. The petition for annexation must also include waivers of right to protest creation of (i) a special district for park and trail maintenance to be created pursuant to §7-11-1001 et seq., MCA; (ii) waivers of right to protest the creation of a SID for construction of all local streets to the City’s local street standard including all City requirements such as lighting, curb, gutter, sidewalks, etc.; and (iii) given the location of the Riverside Properties, waivers of right to protest the creation of a SID for future improvements to Springhill Road, the intersection of Springhill Road and Frontage Road and the intersection of Springhill Road and N. 19th Avenue. 8. Interlocal Agreement between the District and the City. The City and the District, prior to or concurrent with annexation, must enter into an interlocal agreement. The interlocal agreement must address: a. Conveying Infrastructure. The manner in which the City will acquire the District’s wastewater collection facilities following completion of the Project and which of its facilities the District will convey to the City. The District will retain possession of and maintain responsibility for its treatment system and all infrastructure connected to that system after the completion of the Project and the commencement of treatment of wastewater by the City. b. Indemnification. That the District release, hold the City harmless and indemnify the City from any claims or damages resulting from, arising out of, or in any way related to pollution and water quality compliance issues stemming from the District’s operation of its wastewater facilities for both past action and for any future issues related to the District’s facilities that City does not obtain. The indemnity obligation must also hold the City harmless from any delay in the District meeting DEQ’s required compliance schedule. The District must also release and hold the City harmless from any suit from any resident of the 117 Resolution 4972, Riverside Annexation Conditions Page 9 of 14 Riverside Properties regarding the formation of a SID to fund the Project and agree to take all steps necessary to secure financing for the Project should the City not be able to form such a SID. The District must secure and maintain adequate insurance to support its indemnity obligations. c. Financing. How design, financing, and construction of the Project will occur. The agreement must address: i. If the District and the Riverside Properties seek the City’s participation in financing the Project through a SID, the District’s financial and logistical participation as the City completes the design for the Project, secures financing, and bids, awards, and oversees a contract for the construction of the Project. ii. How, at its own cost, the District will be solely responsible for obtaining all necessary permits and easements for the Project provided that the same meet the standards and requirements of the MDEQ and the City. iii. That any easements or other right of way necessary for the City to provide wastewater service will be transferred to the City upon annexation. d. Water for Firefighting. Because the City will, upon annexation, rely on the District to ensure adequate water supply for fire suppression purposes, the District must agree to operate and maintain its water distribution, storage, and supply system to maximize available water flow for fire suppression from the system and to make all necessary repairs. The District must indemnify and hold the City harmless from any claims or damages resulting from, arising out of, or in any way related to inadequate water supply or flow related to a fire suppression effort. 118 Resolution 4972, Riverside Annexation Conditions Page 10 of 14 e. City Not Subject to DEQ Enforcement. That should the City finance the Project through the creation of a SID, the District will be solely responsible for ensuring compliance with any water quality violations and the act of the City to assist the District and the Riverside Properties in designing, constructing, and financing the Project will not subject the City to enforcement action by MDEQ for the District’s ongoing water quality violations. f. City Assumption of Wastewater Treatment. That at the time of completion and approval by the City of the construction of the Project and notice to the District the City is ready to assume wastewater services for the Riverside Properties, the District shall convey to the City its functioning wastewater collection facilities, including but not limited to the existing pipes, manholes, lift stations, and other wastewater infrastructure used to collect and deliver wastewater within the District’s boundaries to the WRF. After the City agrees to begin treating the District’s and Riverside Properties’ wastewater, the City shall be solely responsible for all collection, treatment and disposal of wastewater coming from the Riverside Properties. g. District to Maintain Responsibility for Its Wastewater Treatment Works. That the District will retain possession of and maintain responsibility for its existing wastewater treatment system and all infrastructure connected to that system after the completion of the Project and the commencement of treatment of wastewater by the City. h. District’s Water System. The City will not require transfer of the District’s water supply and distribution system or the District’s water rights to the City at the time of annexation and, as such, the District is retaining its water rights, water supply and distribution system. The District’s water supply and 119 Resolution 4972, Riverside Annexation Conditions Page 11 of 14 distribution system may be considered to demonstrate compliance with the City’s water adequacy requirements. i. If, however, the District’s water system is altered or modified, or no longer functioning, or the City determines demand for water in Riverside Properties is increased or not otherwise being met, the Riverside Properties must comply with the City’s water adequacy requirements in place at that time by either paying cash-in-lieu of water rights, or transfer ownership of water rights, or a combination thereof. ii. The interlocal agreement must address how the District would transfer ownership to the City of the District’s personal and real property necessary for the provision of water service to the Riverside Properties should the District request the City take over the water treatment and distribution system or should the District no longer be able to provide water service to the District. i. Nutrient Credits. The District must acknowledge any future nitrogen and/or phosphorus nutrient credits that result from removing the District’s wastewater treatment system from operation and which are provided by MDEQ will belong to the City to offset nutrient discharge limits at the WRF. j. District’s Ongoing Responsibilities. The interlocal agreement must also address how the District will continue to operate as it relates to providing water to the Riverside Properties, though it will cease to operate any sewer collection or treatment operations and how the District will exist for wastewater purposes solely to address any outstanding reclamation and indemnity obligations. k. No Expansion of Water Service Area. The District must agree that it will not expand its area of water service. 120 Resolution 4972, Riverside Annexation Conditions Page 12 of 14 9. No Action on Financing until Annexation. That the City shall take no action regarding the Project including financing the Project (if requested) until all properties proposed to be served by the City have been annexed into the City. 10. Impact Fees. Consistent with annexing other properties into the City, the Riverside Properties will be assessed impact fees for fire and wastewater. At the time of annexation, all the owners of the Riverside Properties must provide fire impact fees and wastewater impact fees. The City shall provide a listing of the cost of impact fees by individual property. The City will collect all fire impact fees and distribute such to the fire impact fee capital fund at the time of annexation. For wastewater impact fees, the City will place wastewater impact fees in a fund to be held by the City until the completion of the connection between the WRF and the Riverside Properties. At the time the City commences treating wastewater effluent from the Riverside Properties the City will transfer all wastewater impact fee to the wastewater impact fee capital fund. 11. Zoning. The petition for annexation must address the requested zoning designation of the Riverside Properties. The determination of zoning is a legislative act of the Commission and will be conducted pursuant to the requirements of Montana law and the City’s development regulations. The City Commission retains sole authority over the zoning designation. 12. Sump Pumps. At the time of submission of the Riverside Properties or the District must provide a plan to be approved by the City that requires property owners or the District to disconnect every sump pump within all structures disposing of such water into the District’s wastewater collection system and dispose of such water outside of the wastewater collection system in a manner that complies with all local, state, and federal requirements. The disconnection must occur prior to the City accepting wastewater for treatment. Section 2 121 Resolution 4972, Riverside Annexation Conditions Page 13 of 14 That upon receipt of a petition for annexation, the City, in cooperation with the District and the owners of the Riverside Properties, will prepare an extension of services plan specifically tailored to Riverside Properties, for extending each municipal service based on the present circumstances concerning existing services, systems, and facilities. Section 3 The conditions of this Resolution are non-binding as conditions may change from the date of this Resolution to the date a petition is submitted. The Commission adopts this Resolution in a good faith effort to communicate the Commission’s policy regarding the City assisting the Riverside Properties and the District in addressing their wastewater needs as established pursuant to MDEQ’s AOC and, as such, the Commission intends for the statements in this resolution to provide guidance as the District and Riverside Properties determine whether to move forward with a petition for annexation seeking the City’s assistance. 122 Resolution 4972, Riverside Annexation Conditions Page 14 of 14 PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 28th day of January, 2019. ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: _____________________________________ ROBIN CROUGH City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 123