The URL can be used to link to this page

Home My WebLink About01/17/2023 10. Update on cost and timing of Annexation Study • \LL41100F) BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 10. For Meeting of: January 17, 2023 ITEM TITLE: Update on cost and timing of Annexation Study SUBMITTED BY: Joan Davenport, Community Development Director Joseph Calhoun, Planning Manager SUMMARY EXPLANATION: At the October 11 , 2022 Study Session, City Council requested that staff provide information about the potential cost of conducting an Annexation Study for the Urban Growth Area. Staff has gathered some preliminary information which is summarized in the attached report. ITEM BUDGETED: STRATEGIC PRIORITY: Neighborhood and Community Building APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Direct staff to proceed with a consultant led Annexation Study as described in the report. ATTACHMENTS: Description Upload Date Type D uost or Annexation Study and Preliminary Stategy 1/3/2023 Corer Memo 2 MEMORANDUM To: Bob Harrison, City Manager From: Joan Davenport, Community Development Director Date: January 17, 2023 Subject: Cost of Annexation Study and Preliminary Growth Area Strategy Here are the preliminary findings regarding a study to address annexations and Urban Growth Areas. 1. Cost Estimate of General Annexation Report: On October 11, 2022 staff presented a summary"Annexation Overview Report" to the City Council. Some of the variables outlined in the report included the relationship of the growth area for annexation with utility planning, transportation capacity and suitability,as well as financial considerations. The Council requested a cost estimate to prepare a follow-up detailed report. I have had general conversations with four consulting firms to discuss a range of costs and timeline to perform the tasks the City would like to include in such a study. The price range for the study is estimated between $40,000 and$60,000 which would take approximately 6=9 months to complete. 2. Process to Select a Qualified Professional Firm: If authorized by the City Council,a Request for Proposals (RFP) would be developed that included specific tasks, deliverables and schedule. A minimum of three firms would need to be solicited and proposals evaluated. Once a firm is selected,a draft contract is prepared, reviewed by Legal then submitted to the City Council for approval. Time period from RFP to contract execution averages 3 months, depending on level of interviews and review panels. 3. Funding an Annexation Analysis: The City has approximately$21,000 in cost savings from the Fee Study Report in 2022. If directed, this savings could be repurposed for the Annexation Analysis. An additional $28,000 would be necessary to support this study. No grant funds were identified to defray the cost of this study. However, in support of the relationship between annexation, utility planning and fiscal responsibility, the Public Works Department indicates that the study can be partially funded by the utility divisions. Completion of this study at this time would provide a good foundation for future infrastructure and growth scenarios. 4. Correlation of an Annexation Report to Fiscal Stability and Economic Development: Annexations are often utility service motivated. One of the most needed portions of the analysis is to evaluate timing, fiscal advantages and service obligations of annexation to Yakima within the UGA by generalized regions. Portions of the Urban Growth Area (UGA) have different situations regarding provision of public services, depending on characteristics such as existing public sewer lines, water service, fire districts, refuse pick-up, existing urban-level street improvements and flood plains. Annexations most often involve property petitions of smaller areas consisting mostly of vacant land which is ready for urban level development. Many property owners are motivated to join the City of Yakima to reduce 1 3 the sewer connection charges and rates to customers. These petition requests are often piece-meal and not efficiently coordinated. Annexation petitions requires multiple,complex steps and coordination of various agencies. A thorough annexation analysis may identify strategies to encourage property owners to combine or join Annexation Petitions, prior to the development of the official legal description. Development of such a strategy could help reduce costs and time necessary to annex to the City. 5. How does an Annexation Report fit into Growth Management Act(GMA)Comprehensive Plan Update and Urban Growth Area (UGA)? In 2022,the Washington State Legislature modified several portions of the Growth Management Act that influence the City of Yakima mandated Comprehensive Plan Update. a. HB 1241 moved the deadline for adopting Comprehensive Plan updates from 2024 to 2026 and changed the update schedule from every 8 years to every 10 years; b. HB 5593 added new elements and criteria regarding changes to, or planning for,or modifying urban growth areas; c. HB 1220 created substantial changes to the housing-related provisions of GMA. d. The Washington State Department of Commerce has identified grant funding to support local governments GMA Comp Plan Updates.The City will receive$175,000(or more,depending on population) in June of 2024 for the 2026 GMA Update. 6. Analysis of the Urban Growth Area is critical to Growth Management Planning: Yakima County staff have stated they hope to begin Countywide UGA analysis and issue housing/population capacity estimates for each city in 2023 so the jurisdictions will have the requirements in 2024,when GMA plan updates will likely begin. Having analysis and data regarding the feasibility of annexation, housing capacity and development as well as areas for employment opportunities in the UGA are foundational to the City Comprehensive Plan Update. The study will assist the City of Yakima in the evaluation of appropriate growth strategies to guide a fiscally responsible land use plan and annexation implementation. This study may result in recommendations that identify annexation areas that are or are not suitable and fiscally responsible to provide urban level services.Yakima County is the arbitrator for Urban Growth Areas. If the City of Yakima desires to expand, contract or modify their Urban Area, the request to change the boundary goes to Yakima County. 7. Recommended Action of the City Council at this time The Department of Community Development supports the following action by City Council: Proceed with a consultant led "Annexation Fiscal Analysis and Growth Area Study", utilizing a combination of cost savings from the 2022 Fee Study as well as utility enterprise funds,at an estimated cost of approximately$40,000 to$60,000. 2 4 BACKGROUND INFORMATION Summary of Generalized Annexation Regions for Evaluation Yaklma Pltlge e 5♦♦ na -, , �fx _ " F neii L, ^ v � ea a.e,Fe ^.w Area 1 z onaiwwuav _ 3m Yeklma Ev..0 ma... �� ".rea 4 -F -,.r WW- ee. West Valley ie..no Mo.vee Va//eY ,n..n... w a ..' Area 2 ' a, Area 3 _ IanGad — tit .Fe= c n r ^ m.[e oes 4 V� n ja m Area 1:Terrace Heights. Approximately 8 square miles, east of the Yakima River.This area maintains a public water district and sewer service territory as a wholesale purchaser from the City of Yakima. Via a contract, Terrace Heights district also provides sewer service to the City of Moxee.The City of Yakima does not have any Outside Utility Agreements(OUA's)in this vicinity. It is estimated by the US Census Bureau that approximately 8,917 persons live in this unincorporated place. Yakima County provides public safety services to this location. Terrace Heights Elementary School is located in this area,which is part of East Valley School District. Area 2:South Airport to Ahtanum Road. Approximately 1.0 square miles in size.The southern boundary of this area is Ahtanum Road. It is southwest of the airport and south of SOZO Park. At present, most of the land is vacant and zoned for residential use, but some area could be suited to industrial or commercial uses, due to the proximity to the airport. 100-Year Floodplain and Floodway corridors traverse the area. Union Gap's Growth Boundary is south of Ahtanum Road. On August 17, 2022, property owners in this area submitted a Notice of Intent to Commence Annexation for approximately 90 acres south west of the SOZO park.The annexation petition covers less than 20%of Area 2. Area 3: Bachelor Creek,Spring Creek to Wiley City. Approximately 1.8 square miles in size.This area extends southwest to include the unincorporated community of Wiley City. This area has considerable land encumbered by 100-year Floodplain and Floodway of multiple streams flowing toward Wide Hollow Creek and ultimately the Yakima River.Wiley City was once a terminus of the Yakima Valley Trolley line. Area 4:West Valley to Dazet and Estes Road. Approximately 3.4 square miles.This area has been subject to considerable urban development and is largely zoned residential. Multiple east-west arterial streets traverse the area, but few north -south streets are continuous at this time. West valley High School and Cottonwood Elementary School are located in this annexation region and part of West Valley School District. 3 5 Area 5: Northwest Scenic Road to Cowiche Creek. Approximately 1.87 square miles in size. This region has considerable topographic elevation changes and some steep slopes. Cowiche Creek provides a natural boundary on the north side of the area. The region is currently sparsely populated with some standing fruit orchards. There is also the opportunity of fairly rapid development in this area given development interest in housing in this area. 4