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R2017-174 2017-08-31RESOLUTION NO. R2017-174 A Resolution of the City Council of the City of Pearland, Texas, directing staff to prepare annexation service plans for Areas "I," "L" and "P." Area "I" being comprised of approximately 344 acres located north of Southbelt Industrial Drive, west of Almeda School Road, south of Beltway 8, and east of FM 521; Area "L" being comprised of approximately 1,002 acres located northeast of SH35, between Dixie Farm Road and County Road 129; and Area "P" being comprised of approximately 277 acres located just south of Magnolia Road, just north of Bailey Road, west of Manvel Road, and east of Webber Drive and Deerbrook Court. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That the City Council hereby directs staff to prepare service plans for the proposed annexation of the areas more particularly depicted in Exhibits "A", attached hereto. PASSED. APPROVED, AND ADOPTED this 31st day of August, A.D., 2017. ATTEST: Y• NG LQ`RFING Y SE ETARY APPROVED AS TO FORM: DARRIN M. COKER CITY ATTORNEY TOM REID MAYOR x m 0, 0 r c m x 0 3 z l z .O D X N O v v •A SECTION 2: GROWTH CAPACITY AND INFRASTRUCTURE The City can consider how well it is applying the Principles of Smart Growth identified by the Smart Growth Network, recognizing that Pearland may just be reaching a point of maturity in some aspects of its growth and development progression for certain principles to even be relevant or attainable locally. Pearland can also identify and apply measurable indicators as benchmarks for tracking progress on each of the principles as illustrated in Table 2.1, Smart Growth Principles. Additional resource publications include: Smart Growth Audits (American Planning Association, PAS Report 512); Jobs -Housing Balance (APA, PAS Report 516); and Getting to Smart Growth: 100 Strategies for Implementation (Smart Growth Network and ICMA, publication 02-202). ACTION: ACCOMMODATION OF "GREEN" BUILDING PRACTICES Pearland should continue to monitor trends and best practices in the building code, land development, and public facilities arenas related to "green" building and operational standards (including for energy efficiency; water conservation, capture, and re -use; waste reduction and recycling, etc.) to ensure that the City's codes and policies promote and do not discourage such activity locally. The National Green Building Program sponsored by the National Association of Home Builders is an important information clearinghouse, along with other governmental and non-profit resources. Additionally, the Texas Gulf Coast Chapter of the U.S. Green Building Council, based in Houston (www.usgbc- houston.org), provides a regional forum for public and private sector coordination and information exchange. Annexation Outlook This section considers the potential extent and timing of future annexation of areas currently in the City's extraterritorial jurisdiction (ETJ) and the associated rationale. This information is included in the Comprehensive Plan for general planning purposes only. More detailed study and planning would be necessary to satisfy statutory requirements and procedures for initiating specific annexations as contained in Chapter 43, Municipal Annexation, of the Texas Local Government Code. In conjunction with the City's Land Use Plan map (in Section 7, Land Use and Character), Thoroughfare Plan map (in Section 3, Mobility), and the outlook for utility infrastructure extensions and upgrades summarized in this plan section (with more detail in the 2013 update of the City's Water and Wastewater Impact Fee Report and related master plans), this information provides a broad overview of where and when Pearland might grow and extend municipal services beyond its current City limits. ANNEXATION FACTORS Compiled in the list below are five major factors that typically enter into decisions to annex certain ETJ areas sooner than later, or to defer annexation in some locations until later, if ever. Under each major factor are related considerations. Beyond this list, other intangibles include consideration of the potential degree of contention and opposition that particular annexation initiatives may provoke, plus the basic capacity o= City officials and staff — in a large, rapidly - growing community — to devote the necessary time and effort that annexation proceedings require. 1. Fiscal • Value added relative to cost to serve (based on various factors including land use) • Municipal Utility District (MUD) debt/timing (a potential annexation date for each MUD in the City's ETJ can be projected based on when each district's outstanding debt will be paid off as summarized in Table 2.2, Annexation of MUDs in ETJ). TABLE 2.2, Annexation of MUDS in ETJ Source: City of Pearland Finance Department Note: Dates are based on the timing of when all MUD debt will be paid off. Municipal Utility District (MUD) MUD 2 Potential Date of Annexation After 02/01/2017 Potential to Issue More Debt MUD 3 After 09/01/2020 MUD6 After 09/01/2024 MUD 21 After 09/01/2039 No No No Yes MUD 22 Not yet issued any debt but will in the future Yes r-T•Z' • • • = • 201 2.29 2.30 ADOPTED SEPTEMBER 21, 2015 2. Service Provision • Proximity to current incorporated area • Feasibility and realistic timing of service extension — and whether City prefers to be the service provider • Extent of existing population/development • Already providing certain municipal services to area (and ETJ residents already benefitting from use of in -City streets, parks, etc.) • Other service providers • Health/safety (housing/building conditions, sanitation, emergency response) 3. Growth • Proximity to current incorporated area • Available/developable land (including for schools, parks, other public facilities) without significant constraints or legacy issues (e.g., unplanned development, brownfields, etc.) • Market/development community interest and/ or economic development potential • Already planned facility/service extensions 4. Other Community Objectives • Orderly growth progression and effective land use management in prime areas and corridors • Land use compatibility and quality (including to protect nearby in -City neighborhoods and developed areas) • Resource protection (e.g., floodplains, well fields, creek corridors) • Asset protection and area planning (e.g., airport vicinity) • Community image/aesthetics (e.g., gateways, corridors) • Amenity acquisition or future potential 5. Statutory / Strategic • Ease of annexation (especially the Chapter 43 exemption, from the three-year annexation process, of areas with 99 or fewer tracts where each tract has one or more residential dwellings) • Strategic or "defensive" annexations to set the stage for future actions and/or prevent potential adverse actions by other nearby cities POTENTIAL ANNEXATION PHASING Displayed in Map 2.2, Potential Annexation Phasing, are the results from a general evaluation of ETJ areas eligible for potential annexation and related discussions between City and consultant personnel that touched on many of the factors itemized above. Based on this assessment, 19 areas (labeled "A" through "S" on the map) were classified as appropriate for potential annexation in one of three timeframes, subject in all cases to more detailed and area -specific study and deliberation by City officials, staff and other stakeholders: • Short Term (0-5 years) • Medium Term (5-10 years) • Long Term (10+ years) It should be noted that the timing is meant to convey when annexation proceedings might be initiated but not necessarily completed. Also, while each area is identified for a particular timeframe, this does not mean that all of the land within an area would necessarily be annexed at that time given the more detailed area -specific analysis that will occur before any final decisions. As displayed on Map 2.2 and in the accompanying Table 2.3, Primary Factors in Potential Annexation Phasing: • The Short Term category includes eight areas, A through H, that account for nearly 10 percent of the ETJ (1,317 acres and 2.1 square miles). • The Medium Term category includes four areas, I through L, that encompass 25 percent of the ETJ (3,458 acres and 5.4 square miles). • The Long Term category has the seven remaining areas, M through S, which together are 65 percent of the ETJ (8,939 acres and 14 square miles). To elaborate on the summary presentation in Table 2.3, below is a compilation of the primary factors considered in classifying each of the 19 areas, recognizing that lesser considerations in other or all five of the "annexation factor" categories might apply in some cases. In general, more checkmarks for a particular area in Table 2.3 suggests more — or more significant — reasons for expediting possible annexation in either the Short or Medium Term relative to areas in the Long Term category. AREA Fiscal Service Provision Growth Other Community Objectives Statutory / Strategic SHORT TERM (0 - 5 YEARS) A B c ✓ ✓ ✓ D E ✓ ✓ F G H SECTION 2: GROWTH CAPACITY AND INFRASTRUCTURE TABLE 2.3, Primary Factors in Potential Annexation Phasing (in conjunction with Map 2.2) 1 J K L M N 0 P a R S ✓ ✓ LONG TERM (10+ YEARS) ✓ ✓ ✓ ✓ 2.32 ADOPTED SEPTEMBER 21, 2015 SHORT TERM AREA A • Adjacent to planned subdivisions with premier high value residential areas AREA B (portion of Area 4 from 2009-2010 initiated by the City) • Includes new City water plant (required tie-ins within 1,000 feet of City service) • Intersection of County Roads 48 and 59 (Minor Retail Node on Land Use Plan, current vacant property on northwest and northeast corners) • Protection of nearby in -City areas (Southern Trails) • <100 residential parcels AREA C • Vacant land • Protection of nearby in -City areas (Country Place) • Proximity to Clear Creek (potential trailhead location) and Torn Bass Regional Park AREA D • Located within the Magnolia Corridor Overlay District • Surrounded by planned subdivisions and in close proximity to three schools on Manvel Road AREA E (Area 1 from 2009-2010 planning) • Importance of Bailey Road corridor and related street improvements • Land use management along north Bailey Road frontage within ETJ • Intersection of Bailey Road and Cullen Parkway (Minor Retail Node on Land Use Plan) • <100 residential parcels AREA F (Area 2 from 2009-2010 planning) • Importance of Bailey Road corridor and related street improvements • Land use management along south Bailey Road frontage within ETJ (with current City limits on north side) • Intersections of Bailey with Manvel and Harkey Roads (Minor Retail Nodes on Land Use Plan) • <100 residential parcels AREA G • Vacant land • Development potential with transition of Massey Ranch property AREA H • Largely in regional storm water detention and open space near Dixie Farm Road MEDIUM TERM AREA I • Existing and potential additional industrial development (some vacant property) • City water service extensions • East -west roadway improvements on Thoroughfare Plan • Tollway / Beltway 8 proximity AREA J • Significant existing commercial development • Strategic location and high-profile area of city • MUD debt / timing considerations (2, 3, 6) AREA K (Area 5 from 2009-2010 planning) • Interim services agreement in place • Industrial focus on Land Use Plan (extraction activity in meantime) • Dixie Farm Road extension on Thoroughfare Plan • Eventual extension and improvement of County Road 129 and link across Main St/SH 35 to County Road 128 (Hastings Cannon Road) on Thoroughfare Plan • City gateway factor (along with Area L) behind Main St/SH 35 frontage already in city AREA L (portion of Area 6 from 2009-2010 initiated by the City) • Pearland Regional Airport and vicinity to south (airport protection/buffering and economic development potential) • Industrial focus toward Main St/SH 35 on Land Use Plan • Pearland Parkway eventual extension on Thoroughfare Plan • East -west Zink across Main St/SH 35 involving County Roads 414 and 130 on Thoroughfare Plan (airport access) SECTION 2: GROWTH CAPACITY AND INFRASTRUCTURE • Extension and improvement of County Road 129 and link across Main St/SH 35 to County Road 128 (Hastings Cannon Road) on Thoroughfare Plan • City gateway factor (along with Area K) behind Main St/SH 35 frontage already in city LONG TERM AREA M • Legacy of scattered residential development with uncoordinated platting and street network, not up to in -City standards • Necessary upgrades to streets/infrastructure and other public service challenges (fiscal factor) • Predominantly Low Density Residential on Land Use Plan • Limited City interest in FM 521 frontage • MUD debt / timing considerations in southern portion toward SH 6 (21, 22 - Lakes of Savannah) AREA N • All public land managed by Harris County (Tom Bass Regional Park) AREA 0 • Previously disannexed • Minimal vacant land with park and storm water detention areas plus low density residential use • MUD debt / timing considerations (16) AREA P • Existing low-density residential development with same designation on Land Use Plan (fiscal factor) • Minimal vacant land AREA C2 • Existing low-density residential development with same designation on Land Use Plan (fiscal factor) • Only some scattered vacant properties AREA R • Isolated property at edge of city amid low- density residential use AREA S (portion of Area 6 from 2009-2010 initiated by the City) • Largely existing low-density residential development with same designation north of airport on Land Use Plan (fiscal factor) • Only some scattered vacant properties ANNEXATION POLICIES The written policy statements below may be used by City officials and staff as a guide and reference when making decisions regarding potential annexation activity or related growth guidance measures. FISCALLY RESPONSIBLE 1. All annexation decisions should require fiscal impact assessments to determine that the annexation is fiscally responsible from the perspective of City operations, maintenance, capital investments, and debt. 2. The City should not annex special districts, such as municipal utility districts (e.g., MUDs) until the district's debt is paid off and/or the economic benefits outweigh the immediate and long-term costs of assuming the district's debt and providing municipal services. The City can negotiate a schedule to establish a future plan for voluntary annexation. 3. When an annexation is not fiscally feasible, the City should consider service agreements in lieu of annexation agreements to extend aspects of the City's regulatory authority without committing to provision of full City services or transrer of debt. EFFICIENT INFRASTRUCTURE 4. The City should avoid strip and piecemeal. annexations given the potential high cost of extending services in such situations. Annexations can be used in a strip or piecemeal nature to establish the contiguity necessary for eventual expansion into strategic areas if there is a Tong -term plan to annex the unincorporated, "passed over" land. 5. Wherever possible, existing infrastructure systems in areas proposed for annexation should have near or fully adequate capacities to accommodate current and projected development demands in such areas without the City bearing an inordinate burden for capital investment in the near or longer term. 6. To maximize the use and efficiency of existing City infrastructure, growth should first be directed toward vacant parcels and Pat ' 201 2.33 2.34 ADOPTED SEPTEMBER 21, 2015 underutilized lands within the City limits before extensive development is considered or encouraged within future growth areas beyond the City limits. 7. The City should promote reuse and/or redevelopment of obsolete, vacant buildings and underutilized properties to maximize the efficiencies of existing infrastructure and municipal services, along with the overall community and tax base benefits of restoring such properties to productive use. ECONOMIC DEVELOPMENT 8. Annexation decisions should be consistent with the economic development objectives of the City as stated in this Comprehensive Plan and the Pearland 20/20 Strategic Plan. 9. Annexation agreements and voluntary ETJ agreements should be used as tools to secure the City's long-term jurisdictional interests and protect its growth trajectory and future development options in the ETJ. QUALITY DEVELOPMENT 10. The City should prioritize annexations in highly visible areas at community gateways and along key corridors to ensure sound regulation of the type, pattern, and quality of development. 11. The City should weigh the intangible benefits of annexation and the possible costs of inaction, such as potential lost opportunities to extend the City's proposed zoning authority to undeveloped areas where growth is anticipated. 12. The City should use development agreements and/or strategic partnership agreements as a negotiation tool to increase the quality of site and building design, when appropriate. 13. Annexation should occur in strict compliance with the policies and planning guidance in this Comprehensive Plan, particularly the Land Use Plan and Thoroughfare Plan. COORDINATION AND PARTNERSHIPS 14. Annexation and strategic partnership agreements should be used as vehicles to partner with and mutually define growth objectives with private landowners to ensure land is devoted to its highest and best use whenever possible, along with consideration of other community objectives and priorities. 15. The City should consider entering into interlocal agreements to facilitate ETJ boundary adjustments with adjacent municipalities in exchange for areas of strategic importance and equivalent value (i.e., "ETJ swaps"), when appropriate. ANNEXATION PARAMETERS Given the amount of territory already included within Peariand's corporate limits (roughly 46 square miles), the City has the ability to add considerable acreage through annexation where desired and feasible. As specified in Chapter 43 of the Texas Local Government Code, in any given year the City may annex a quantity of acreage that is equivalent to up to 10 percent of its current incorporated land area (i.e., approximately 4.6 square miles). If it does not annex all of the land that is allowed, the difference rolls over to the next year. The City can make two such rollovers, meaning it can annex up to 30 percent of its land area in a single year (i.e., nearly 14 square miles currently). The flip side of this opportunity is that, even more so since Chapter 43 was significantly amended in 1999, Texas annexation statutes impose stringent standards for extending municipal services to newly - annexed areas in a timely and adequate manner, which must be comparable to pre-existing services and service levels in similar incorporated areas. Growth Guidance Tools Cities have an array of strategies for influencing the location, pattern and timing of development. Some methods simply aim to minimize the adverse effects of growth without affecting its direction or the nature of the development. Other techniques allow a city to guide and shape growth more directly. Given the limitations of Texas enabling laws for city and county government, there are few, if any, mechanisms currently available to entirely prevent scattered or "leapfrog" development trends, particularly within a City's ETJ. Instead, Texas cities are faced with a complex set of rules regarding their ability to manage all aspects of future growth and development. While there are some ways to better manage peripheral development, there are also factors over which the City has little control (e.g., no building permit requirements or code enforcement in the ETJ). Within this context, it is wise for Pearland to consider ways in which it can exert more influence over the direction, timing, pattern, and quality of fringe development that it ultimately must serve. The intent 1 ma aiMMIMEN.11