A. All properties to be included within the service areas shall be annexed, included in an annexation district, or contained in an agreement for future annexation. Further, whenever possible, and subject to conditions for annexation imposed by the city commission, the property being considered for inclusion in the service areas shall be annexed to the city:
1. If the property is contiguous to the boundaries of the service areas for both water and wastewater; or
2. When annexation is in the best interests of the city.
B. Prior to submission of an application for service area enlargement for property not within the boundaries of the city, a prospective applicant shall first request that the city annex the property involved or include the property in an annexation district, or enter into an agreement for the deferral of annexation, or a combination of the foregoing as alternative requests. If the city manager considers the request to be in the best interest of the city, the manager shall submit it to the city commission for consideration. If the city commission determines that annexation is not in the best interest of the city at that time, it may consider alternative requests of the applicant for the creation of an annexation district or the deferral of annexation pursuant to an agreement. Any agreements or applications for waivers must be in legal form as approved by the city attorney; be recorded with the county clerk and recorder of Lewis and Clark County, Montana; run with the land; and be signed by owners of the land area and by the landowners of the area to be considered for inclusion in the water or wastewater service area.
C. An agreement for deferral of annexation and conditions for annexation will constitute a mutual agreement for provision of services as required by law and must include, at a minimum, provisions for the following items:
1. Consent to and waiver of protest of annexation when elected by the city;
2. Restrictions or conditions on future subdivision of the property or expanded development of property that increases demand for city services;
3. Prezoning of property and compliance with zoning regulations applicable to prezoning designation;
4. Compliance with city building and fire codes and, if in the best interest of the city, plan approval, payment of fees, and submission to inspection of improvements;
5. Financial responsibility, including consent to and waiver of protest of creation of special improvement districts, for the installation, construction and reconstruction of infrastructure to city standards, including, but not limited to, water mains and hydrants, sewer mains and lift stations, storm water facilities, streets, curbs and gutters, and sidewalks;
6. Compliance with any city code applicable to any service made available through service area enlargement, including installation of and access to approved meters;
7. Restrictions or mitigation conditions on uses of property that may injure, damage, or degrade services provided;
8. Plan approval, construction oversight, final acceptance, easements, and ownership by city of infrastructure installed for the city service being provided;
9. Payment of applicable fees relating to the city service being provided;
10. Legal and physical access provided to the property being served;
11. Upgrade and transfer to the city community served utility systems and appropriate utility easements;
12. Use of city provided solid waste services as soon as legally allowed;
13. Payment of any fees set by city commission for service area enlargement and city services provided; and
14. Responsibility for outstanding indebtedness against the property for rural improvement districts, fire districts, and other county established districts.
D. An annexation district must be created as provided by law and the agreement must consider those items contained in subsection C of this section, that are legally allowed for creation of annexation districts.
E. The city manager shall cause written notice to be given to the prospective applicant of the approval or denial of applicant's request for annexation, creation of an annexation district, or deferral of annexation pursuant to an agreement. The city manager shall also notify the prospective applicant of the approval or denial of enlargement of the service area. If approved, the applicant shall be notified when the requirements set forth in this section have been satisfactorily completed and that the applicant is authorized to proceed with the service area enlargement application. (Ord. 3055, 5-8-2006)