Memorandum

City of Lawrence

 

TO:

David L. Corliss, City Manager

 

FROM:

Diane Stoddard, Assistant City Manager

 

CC:

Management Team

 

Date:

January 27, 2011

 

RE:

Miller/Wells Acres  - Exploration of Possible Annexation

 

General Background:

The Miller/Wells Acres unincorporated residential development is generally located north of Riverridge Road and east of North Iowa.  (See attached map)  The area is surrounded by the city limits on approximately three and a half sides.  Miller Acres and Wells Acres are rural subdivisions established approximately 50 years ago. In recent years the City of Lawrence has annexed properties near its boundaries and built City infrastructure serving the Miller/Wells Acres area, including North Michigan and Riverridge Road.  When Riverridge Road was built as a City/KDOT STP project, the City purchased the Rural Water District No. 1 service lines serving the Miller/Wells Acres area because the road construction necessitated the removal of the RWD transmission line. When the road project and water service transition occurred there was a general discussion about possible City annexation with some residents in the area.  The City is now responsible for water service in the Miller/Wells Acres area and the users pay outside City water rates.  The waterlines serving the Miller/Wells Acres area are not City standard size and would not provide adequate fire protection service if the area was annexed. 

 

Over the years, the City has received inquiries regarding sanitary sewer service as septic systems have failed.  Several properties on the periphery of the area have been annexed into the City in recent years and two of these properties have been connected to City sanitary sewer service without annexation.  In the cases that sanitary sewer service has been requested from the City, the properties making the request have been immediately adjacent to the served area.

 

Staff Recommendation regarding Exploration of Annexation:

Staff is recommending that the City Commission take initial exploration steps to determine whether the annexation of the existing unincorporated area is appropriate.  Property owners within the area have not been formally contacted about this possible annexation consideration as staff is seeking permission to have a formal meeting with impacted property owners on this issue.  Owners would be notified of the meeting and also formally notified if the City Commission indicates that annexation should proceed.  Communication with property owners will be an important aspect of the preparation of a service delivery plan.

 

There appears to be a number of advantages to City annexation which make it worthy of consideration:

 

 

Western Hills Project:

In the 1980s, the City annexed the Western Hills rural subdivision, which today is bordered by Bob Billings Parkway, Monterey Way, and the area generally south of Harvard Road.  At the time of annexation, the City acknowledged the likelihood of sanitary sewer facilities to serve the Western Hills area and that such facilities would not be mandated absent a public health concern.  As septic systems in the area began to fail, a special assessment benefit district was established, with a maximum cap on assessments to property owners, and a substantial City at large financial participation in the benefit district. In addition to the capped special assessment amount, property owners were responsible for connecting their private lines to the benefit district installed public lines, and for system development charges and related inspection fees.

 

In staff discussions concerning the Miller/Wells Acres area, the model of the Western Hills special assessment benefit district has been mentioned for possible application to the Miller/Wells Acres area in the future.

 

Service Issues and Comparisons

 

            Water Service

The existing water lines purchased from the Rural Water District serving the area are not sized to provide fire protection and need to be upgraded to the current city standard of 8-inch mains.  By constructing 8-inch water lines and fire hydrants, Miller/Wells Acres would meet the fire protection codes of the City.  While the upgrade to the water lines would improve the lines and accommodate fire protection, the residents would not see a noticeable difference in water pressure. 

 

The Utilities Department has prepared a preliminary report on the layout and cost of the water line installation. The report calls for a two-phase water main replacement project totaling approximately $126,000.  Staff would suggest that this cost be paid by the City-at-large since it is an upgrade project to an existing system owned and maintained by the City. 

 

In addition to fire protection, annexation would result in the residents receiving city water (and sewer) rates instead of outside the city water rates.  Using the adopted 2011 water rates, the average water bill savings per year for Miller/Wells Acres residents would be approximately $84 with the high being $214 and the low being $12.

 

Fire Protection

Fire protection to Miller/Wells Acres is currently provided by Wakarusa Township.   Annexation and the subsequent water main improvements would provide the necessary fire flows for Lawrence/Douglas County Fire Medical.  Additionally, the water main project would provide the required fire hydrants to serve the area. 

Fire equipment has been driven through the area and can successfully navigate the streets.

 

Property owners may receive a financial benefit in the way of lower property insurance costs if the property is annexed based upon fire protection services provided by the City, which has an ISO (International Service Organization) rating of 2 versus the Wakarusa Township rating of 9. Fire protection service supported by fire hydrants is generally viewed as more favorable than fire service provided by tender truck service which transports water to a fire site via trucks.  However, individual savings will most likely vary due to several external factors. 

 

Sanitary Sewer Service

According to Richard Ziesenis at the Lawrence-Douglas County Health Department, there are 48 septic systems in this area.  There have been 6 reported failures since 1995 with the last one being in 2001.  Mr. Ziesenis indicates that the replacement of septic systems on the approximately one acre lots in this area is extremely challenging.  Any replacement septic systems would be substandard and contrary to County codes, which were revised in 1997 to require three acre minimum lots for septic systems.  Additionally, if the septic systems were replaced on these lots, they would not be as effective as a system on a larger lot. 

 

The attached report prepared by the Utilities Department provides information on future sanitary sewer service to the area.  Staff is proposing that a benefit district could be created to extend the sanitary sewer service to the area in the future, possibly to include City-at-large participation as was done in the Western Hills annexation process.   The estimated cost of the eventual sanitary sewer improvements needed to serve the unincorporated area is approximately $900,000.

 

Streets

The existing streets within Miller/Wells Acres are without curb and gutter and do not meet current City standards.  However, no street improvements are envisioned with the annexation.  Public Works staff has analyzed the existing pavement conditions and has found the pavement to be in fair condition. Microsurfacing and minor repairs would be added to the City’s regular street maintenance program at a cost of approximately $10,000-$25,000 in the next few years.  There are no sidewalks in the area.

 

Drainage

The Public Works Department has prepared a memo outlining drainage issues within the area.  With annexation, the City would assume maintenance of ditches and driveway tubes.  The estimated $4 in storm water fees per residence would general approximately $2200 annually to assist with stormwater maintenance activities. 

 

Police Service

Upon annexation, the annexed area would receive police and patrol services from the Lawrence Police Department. 

 

Property Tax and other Financial Consequences for Annexation:

If unincorporated property is annexed into the City, the Wakarusa Township mill levy and the library district levy would be removed and the City mill levy added.  If annexation would proceed in 2011, property tax changes would occur with the 2013 budget year and the property tax bills distributed in November 2012. Our review of the 53 parcels located north of Riverridge Road indicates that Wakarusa Township would lose $15,782 in property taxes, the City of Lawrence would gain $25,221 in property taxes, meaning that there would be a total additional tax increase of $8,259 on these parcels combined.  The average property within the area with a valuation of $150,000 would see approximately a $150.79 increase in property taxes. The following table demonstrates the change in overall levy assuming an average $150,000 residential property within the area.  

 

The following table demonstrates the change in overall levy and other service costs assuming an average $150,000 residential property within the area. 

 

Property Tax Cost Illustration Before and After Annexation using average $150,000 property

 

Cost prior to annexation

Cost after annexation

Jurisdiction/Service

Levy

Property Taxes

Jurisdiction/Service

Levy

Property Taxes

State of Kansas

1.5

$ 25.88

State of Kansas

1.5

$ 25.88

Douglas County

35.748

616.65

Douglas County

35.748

616.65

Wakarusa Township

16.705

288.16

City of Lawrence*

26.697

460.52

USD 497

59.646

1,028.89

USD 497

59.646

1,028.89

Northeast KS Library

1.25

21.56

 

 

 

Total

114.849

1,981.15

Total

123.591

2,131.94

2011 estimated increase in property taxes for a $150,000 house

$150.79

*City mill levy includes library and other city services

 

As previously stated, the property owners will experience a change in services once annexed in to City limits. The charges associated with these services will also change, including water, solid waste and stormwater. The following table demonstrates the change in other service costs for an average $150,000 residential property within the area. The total average monthly savings are approximately $6.03.

 

Other Services Cost Illustration Before and After Annexation using average $150,000 property

 

Service

Before Annexation

After Annexation

Water*

$25.32/month

$18.27/month

Solid Waste

$16.83/month**

$13.85/month

Stormwater

$0/month

$4.00/month

Total

$42.15/month

$36.12/month

*monthly average from November 2009 - 2010

**rate from Honey Creek Disposal, which currently serves the area 

 

General Land Use Characteristics and Land Use Policies:

There area north of Riverridge Road between N. Iowa Street and Northfield Addition contains approximately 44 acres located outside of the City and is residentially developed.  The majority of these properties are included in Miller Acres and Wells Acres, County Subdivisions recorded in 1959 and 1963 respectively.

 

Miller Acres contains approximately 27 acres and 30 lots.  All but one (Lot 27) have been developed.  The lots are generally one-half to three-quarters of an acre in size and were originally laid out so that lots could be further subdivided in thirds.  It appears that many of the houses were sited so that the lots could be split, although more likely in half rather than thirds.

 

Wells Acres contains approximately 10 acres and 20 lots.  Two of those lots (Lots 3 & 4) have been annexed into the city and are served by the sanitary sewer line in Northfield Addition.  The lots are similar in size to those platted in Miller Acres.  Homes are located on 16 of the remaining 18 lots.  The two undeveloped lots (Lots 19 & 20) are owned by the owner of Lot 18 and do not currently have improved road frontage.  Many of the homes are also sited so that a number of the lots could be split in half.

 

There is also approximately 7 acres of unplatted property in the general area.  Two are located along the east side of E 1326 Road with the property at the northeast corner of Riverridge Road and E 1326 Road residentially developed and the parcel to the north undeveloped.

 

There are also 6 approximately one acre, unplatted parcels along the east side of N. Iowa Street that abut the west boundary of Miller Acres.  Of the 6 parcels, 2 are within the city limits.  One of the 6 properties was annexed in 2009 in order to receive city sanitary sewer service.  These parcels would be logical additions to any initiative to annex this area as sanitary sewer is readily available to these parcels. 

 

This area is located within Service Area 1 of the Lawrence Urban Growth Area in Horizon 2020.  These properties are all designated for low-density residential development on Map 3-1.  When Lot 4, Wells Acres was rezoned in 2005, the staff report indicated that this area was almost completely surrounded by the city and would likely be annexed when services were extended.  While the lots are over a half-acre in size, the property was rezoned to RS-1 (converted to RS10) in recognition that the area potentially provides additional infill development.  Rezoning to RS7 or RS10 would be appropriate for the majority of these parcels.

 

The parcels that front on N. Iowa Street are north of Northfield Estates which is zoned RM12D.  Wrigley Lane was platted to the northern boundary of this subdivision so that it could potentially be extended to the north as properties redevelop.  The parcels that front on N. Iowa Street could be rezoned to RS10 or perhaps RM12 with an expectation that there may be future development in the area.

 

Horizon 2020 provides guidance to seek annexation within the UGA and develop Service Area 1 prior to significant development in other areas.  The majority of policy statements regarding annexation are in Chapter 4 – Growth Management and Chapter 5 – Residential Land Use.  These include:

 

Pg. 4-2: 

Service Area 1.  This area includes lands which are proximate to the existing city limits and can be readily served by community facilities and services.  Future land uses for property within Service Area 1 are depicted in color on Map 3-1.  The city should actively seek annexation and development of these areas prior to the significant development of the remaining service areas.  Development within Service Area 1 shall be preceded by annexation and will be subject to the recommendations contained in the Comprehensive Plan.

 

Pg. 4-5: 

ANNEXATION POLICIES

 

The following policies apply to the annexation of lands to Lawrence:

 

1.       Lawrence will actively seek voluntary annexation of land within the UGA as development is proposed.

2.       Annexation shall be required prior to development in Service Area 1 of the Lawrence Urban Growth Area.

3.       Non-contiguous parcels of land may be developed subject to the policies of the Comprehensive Plan and upon agreement by the owner to annex at the time the parcel of land becomes contiguous to the city.

 

Pg. 4-7:

Policy 1.3:    Limit Premature Development

 

a.       Encourage the gradual expansion of urbanization outward from corporate limits.  Require annexation or agreements to annex for developments in the UGA which are not contiguous to the city limits.

 

b.       Require property in Service Area 1 to annex prior to development.

 

Pg. 4-10:

Policy 3.1:    Areas Immediately Adjacent to the City Limits

 

a.       Areas immediately adjacent to municipalities (Lawrence, Eudora, Baldwin City and Lecompton) should be encouraged to annex voluntarily if utility services are available to them.

 

b.       Developments in need of the extension of city utilities or city services shall first be required to annex.

 

c.       Properties within the UGA’s should be encouraged to annex consistent with a service delivery plan.

 

Policy 3.2:    Proposed Annexation Areas

 

a.       Unilateral annexation should be initiated to include those areas which are needed to complete sewer or water line extensions for a closed (looped) system.

 

c.       A broad mosaic for future land uses proposed for near-term annexation areas are set forth in the Plan’s land use maps. [See Map 3-1]

 

Pg. 4-11:

Policy 3.3:   Specific Annexation Policies

 

a.       Lawrence will proceed with annexation of 'unincorporated islands' which are completely surrounded by the city in the immediate future.

 

b.       Whenever an opportunity arises to annex portions of the immediate growth areas, such annexation should be executed by the City Commission.

 

Pg. 5-1:

STRATEGIES:  RESIDENTIAL DEVELOPMENT

 

The principal strategies for approaching residential land use areas are:

 

•                    Infill residential development should be considered prior to annexation of new residential areas.

 

•        A mixture of housing types, styles and economic levels should be encouraged for new residential and infill developments.

 

Pg. 5-8:

SPECIFIC RECOMMENDATIONS FOR SELECT AREAS

 

·                     Riverridge Residential Area

 

Unlike most other neighborhood areas of the city, the Riverridge neighborhood includes substantial portions which are currently unincorporated and are not served with municipal sewer and water facilities.  In order to permit continued and orderly development of the greater neighborhood area, it is desirable that the Riverridge area be serviced with utilities and improved street/roads to enable the extension of the systems to adjoining areas.

 

Pg. 5-12:

Policy 1.1:    Consider Land Use Relationships within the Urban Growth Area

 

a.       Require development contiguous to the city limits to annex and develop to city standards.

 

Pg. 5-13:

Policy 1.2:    Protect Areas Planned for Low-Density Development

 

b.       Prohibit the installation of new on-site wastewater management systems on property within Service Area 1 of the UGA.

 

c.       Develop a utilities extension policy for Lawrence which ensures the phased connection of all development in its UGA to water and wastewater services as property is annexed into the city.

 

Policy 1.4:    Limit Premature Development

 

a.       Encourage the gradual expansion of urbanization outward from corporate limits to avoid leapfrog development.  Require annexation agreements for developments in the Urban Growth Areas of a city.

 

b.       Require subdivisions contiguous to the city limits to annex and develop to city standards.

 

c.       Adopt an annexation plan and policy consistent with Growth Management techniques described in this document. 

 

Policy 1.5:    Ensure Adequate Infrastructure Facilities

 

Develop a utilities extension policy for Lawrence which ensures the phased connection of all development in its UGA to water and wastewater services.

 

Possible Timetable:

Staff suggests holding a meeting with property owners in late January or early February 2011.  Staff could then report back to the City Commission after the property owner meeting and after the development of a service delivery plan for the area in mid-to-late February 2011.   Should the Commission wish to proceed with annexation of the area at that time, the annexation process would take approximately 90-120 days to complete. Water improvements could commence upon annexation and take approximately 3 months to complete, depending upon the time of year of the annexation.  The sanitary sewer improvements could take place in the future after a benefit district has been established by the property owners and would take approximately one year to complete after the district is created.  Other city services would be provided immediately upon annexation.

 

Recommendation and Requested Action:   

Direct staff to conduct a public meeting with area property owners and prepare a service delivery plan for the unincorporated area.  Place the issue back on a future City Commission agenda after the public meeting, for direction on whether to begin proceedings for annexation.