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CU) V) Ckk\I • n oof.e TOOLBOX OF GROWTH MANAGEMENT TECHNIQUES CITY OF COLLEGE STATION,TEXAS "The best way to predict your future is to create it."1 INTRODUCTION Over the course of the last six decades, College Station has experienced rapid growth, averaging 90 percent per decade. Excluding the 1940s(263 percent)and 1970s(111 percent), the average rate of growth per decade has been 42 percent. While the amount of growth has slowed since 1980, with 29 percent growth during the 1990s (compared to 111 percent and 41 percent during the 1970s and 1980s, respectively)it exceeds the rate of growth of Brazos County(34 percent)and Texas(22 percent).2 From an economic perspective, the increase in population and corresponding employment growth is a positive indicator of the City's economic competitiveness and stability.A continuation of this economic growth is —and must remain—a primary goal of the community. I c,.ir'� 1 Historic Grrwil Pattc'rrts -7-_:- ContigucLs - in'c, era• it* irr , ir c ir *04*.AtH..:1* L t Scattered Sporadic Sprawling M PP PPP Increasing Development Fragmentation "lu:tiro'In twill i, , beco,~rm, I-Peter Drucker 2 This is partially explained by the relative size of the respective jurisdictions. A question confronting this community, however, is not only how to attract and sustain economic development but how to maximize its net fiscal benefits. The pattern of growth and efficiency of service provision are contributing factors, among others. As displayed in Figure 1, Historic Growth Patterns, beginning in the 1970s the form of development has become increasingly scattered.In fact,since the Year 2000, the number of platted lots in the ETJ has averaged 16.6 percent of the total annual platted lots?As for the projected population, assuming a continuation of recent trends, the ETJ is expected to increase in population by 17 percent by the Year 2016.4 The trend of peripheral growth is long-standing as development began to scatter in 1980s and has since increasing sprawled outward. Continuation of this pattern — and trend — will become increasingly problematic, resulting in an increased inefficiency of services thereby lessening the economic gain and placing a growing strain on the fiscal resources of the community. Reasons for the Growth Pattern There are several reasons why this growth pattern has occurred, including, but not limited to, the following: • There is a lure to green field development due to the ease of development approval,particularly since the City has no authority within its ETJ to regulate: - The use of any building or property for business,industrial,residential,or other purposes; - The bulk,height,or number of buildings constructed on a particular tract; - The size of a building that can be constructed on a particular tract of land, including without limitation any restriction on the ratio of building floor space to the land square footage; - The number of residential units that can be built per acre of land;or - The size,type,or method of construction of a water or wastewater facility that can be constructed to serve a developed tract of land,subject to specified criteria.5 • The City's oversize participation ordinance allows the City to pay up to 100 percent of the total cost for any over-sizing of improvements that it requires in anticipation of future development.There are no stated exceptions or criteria regarding its cost effectiveness; financial feasibility; or conformance with utility master plans, the comprehensive plan, or other development policies. Furthermore, the current Comprehensive Plan does not define a designated growth area nor is it directly coordinated with the utility master plans. Therefore, there is no mechanism to coordinate the pattern and timing of development and ensure cost efficiency in the provision of adequate public facilities and services. This must be a focus of the current Comprehensive Plan, coordinated with updates of the City's water,wastewater,and drainage master plans. • The City's decision to extend its Certificate of Convenience and Necessity(CCN)boundary for sewer service to coincide generally with its ETJ enables development to occur throughout the ETJ. While there are advantages by way of limiting the number of private package plants and controlling the quality of sewer infrastructure, this contributes to an inefficient pattern of development. Without a growth sequencing plan to direct the location and timing of development, consistent with the City's infrastructure planning and capital programming, the City has limited control of its development pattern. • The fiscal impact analysis used to judge the feasibility of annexation appears to be an abbreviated model that does not fully account for the long-term operating and maintenance costs, the distance 3 Based upon plat data provided by the City 4 Based on a City forecast,"Development Trends in the Extra-territorial Jurisdiction(ETJ) 5 Section 212.003,Extension of Rules to Extraterritorial Jurisdiction Draft 01/04/08 Page 2 of 27 required to extend utility services, or the timing of build-out.Further, the City's future land use plan and corresponding zoning districts are too general and thus, do not offer a clear indication of the likely uses and densities. Therefore, to more accurately determine the net fiscal benefit of annexation a more elaborate,robust model must be developed and used. • There are both allowances and limitations within the zoning ordinance,including: - The minimum lot size within the Agricultural-Open"A-O" district is only five acres.Instead,the minimum lot size could be increased to 20 acres or larger ensuring preservation of the agricultural character and enabling the City to determine the timing by which facilities will be provided and urban development is allowed. Zoning, in this case, may serve as an effective growth management tool. - The Rural Residential Subdivision "A-OR" district allows a minimum lot size of one acre meaning that residences on septic systems and wells are permitted. Use of this district in the outlying areas of the corporate limits where adequate municipal facilities are not yet available is contributing to development fragmentation. There are a relatively large number of use-based zoning districts. Essentially, this means that a zone change is necessary to respond to a shift in the market, which adds process and delays development. This is a disincentive for development to occur in the City rather than the ETJ where it is much easier and with less delay. Instead, the ordinance should allow more flexibility while increasing the development standards in line with the City's expectations and desired outcomes. - There is a multi-step process required for the Planned Mixed-Use "P-MUD" and Planned Development "PDD" districts, which lengthens the review and approval time, increases development costs,and is a disincentive for what is otherwise a preferred development type. - The ordinance allows for zoning classification at the time of annexation without any criteria as to when and under what circumstances the City will consider a change in zoning.Therefore,a zone change to a more intensive district may be allowed without consideration as to its consistency with the City's growth plan,capital improvement plan,or other criterion. - There are no incentives, such as density bonuses, integrated into the ordinance to encourage certain development types. An increased density in exchange for development clustering and increased open space could allow a rural development environment within the City limits rather than necessitating ETJ development to achieve this character. The requirements for use transitions and buffering are generally ineffective providing reason to develop in the open countryside in relief of the impacts of abutting development. • There are several rural water providers(Wellborn Special Utility District,Brushy Creek Water Supply Corporation, and Wickson Creek Special Utility District) and sewer providers (Carter Lake Water Supply Corporation and River Side Wastewater Treatment Plan) around the periphery of the City and ETJ,meaning that development may get access to public water and sewer systems that meets the standards of the Texas Council on Environmental Quality (TCEQ) without requiring connection to the City's utility systems. • The Brazos County Health Department's requirements for permitting septic systems is a minimum of a one acre lot, whether there is public water available or a private well. This exceeds the State's one- half acre minimum, and is now being considered by the County Commission for an increase to a minimum of two acres. While an increase in the minimum allowable lot size for authorization to construct a septic system is both warranted and helpful, unless it is further increased it still allows rural development throughout the ETJ. Draft 01/04/08 Page 3 of 27 • There is a five-acre exemption of the platting requirements within State law that allows rural development to occur without platting and thus, without any provision for right-of-way dedication, delineation of easements,or other applicable—and warranted-development requirements.6 • The City's parkland dedication requirements apply only within the City limits meaning that there are no requirements for the provision of parkland or payment in-lieu of land dedication. Therefore, effectively, this is an economic advantage for developing outside of the City limits to avoid payment of these fees. • Development outside the City limits does not pay City taxes. Therefore, residents and businesses outside the City limits benefit from access to municipal facilities and services, such as parks, trails, libraries,and other community facilities,but do not share the tax burden associated with constructing and maintaining those facilities and services. Over time this increases the tax burden on in-City residents. • Land is less expensive outside the City limits due,in part, to the absence of public infrastructure and improvements,which equates to cheaper development and hence,lower home costs. • There is an attraction to the open, rural landscape, which will slowly disappear with increasing development over time and a lack of land use controls to protect the desirable character. Potential Implications of Sprawl While the growth of the community has brought great opportunity, without adequate foresight and preparedness it may involve long-term consequences,including: Erosion of a defined community edge thereby blurring its boundaries and contributing to a loss of community identity. This can be most readily seen along each of the entrances into the community where there is a proliferation of uses extending well beyond the City limits. • Degradation of environmental resources,e.g.floodplains,wetlands,habitat,vegetated areas,etc. • Overwhelmed public infrastructure (e.g., roads, water, and wastewater systems) and services (e.g., police and fire protection,parks,libraries,and schools),in some cases,creating unsafe conditions. • A lack of coordinated planning between individual developments leading to, among other things, a discontinuous and disjointed street system and inability to plan for linear linkages and greenways. • Premature and unexpected shifts in traffic patterns causing congestion and environmental impacts as development occurs in an uncoordinated fashion before adequate road infrastructure is in place. • The provision of private streets and infrastructure systems such as package treatment plants, for which the burden may shift to the City in future years without the requisite funding to pay for it. • Cumulative impacts on the natural environment due to stormwater runoff and non-point source pollution of area streams and watercourses. • Inefficient provision of services meaning a larger investment in infrastructure systems with fewer than the optimal number of connections to pay for it. • Increased traffic, as vehicles have to traverse relatively longer distances to reach places of work, shopping, services, education, recreation, and entertainment. This means that more public dollars must be expended on road building,expansion,maintenance,street lighting,and traffic enforcement. • Declining community character and agricultural operations, as formerly large, contiguous farms are broken up by scattered development and the proliferation of "exurban", 5-plus acre lots. The agricultural industry is a significant sector of the regional economy, and the presence of local 6 Section 212.004.Plat required(a) Draft 01/04/08 Page 4 of 27 agricultural products is good for local consumers. Moreover, farming is an important part of the region's heritage that continues to contribute to the quality of life and identity of the community. GROWTH MANAGEMENT APPROACHES Often, the elements that fuel growth(e.g., community livability, quality schools, economic diversity,etc.) are slowly and ultimately sacrificed by the pattern, quality, and character of development. The integrity of public fiscal resources is also compromised because the new development is inefficient and does not contribute sufficient revenues to cover the costs of the services it demands. Modern "growth management" is a combination of techniques that allow municipalities to direct its pattern of growth and the timing of infrastructure provision, leading to better long-term economic sustainability. In broad terms,growth management techniques include: • Comprehensive planning to establish the policy basis for the institution and administration of growth regulations; • Regulatory approaches, including zoning and subdivision controls, which to varying degrees, directly impact the character,form,location,and quality of development. • Annexation, which expands the geographic jurisdiction of the City to implement a full range of regulatory and fiscal approaches to growth management. • Development and/or participation agreements,which provide for infrastructure funding(and may,in some instances,include land use controls). • Impact fees, which provide funding for capital improvements that are needed to serve new development. • Improvement districts and political subdivisions, which are independent entities that provide for infrastructure funding and operation. • Interlocal cooperation contracts as a means for local governments to agree with other units of government with regard to providing administrative functions,infrastructure,and public services. • Extension of publicly-owned utilities by way of capital improvement programming. In Texas, state law provides a complex set of rules regarding which growth management techniques are available, and how those techniques may be implemented. The purpose of this issue paper is to summarize the provisions that may serve as viable and practical solutions for the City to manage its community character, efficient provision of adequate public infrastructure and services, and long-term fiscal health. This paper also establishes a framework for growth management, with strategic directions as to the changes in policies and practices to better manage future growth and development.' There are an array of strategies for managing the pattern and timing of development, ranging from simply minimizing the impacts of growth without affecting the pattern to strictly controlling it.Given the limitations of Texas law there are few, if any, mechanisms currently available to entirely prevent sprawl. For the purposes of this discussion the growth management techniques are as follows: 7 This review of the applicable statutes is intended to provide a general overview of available tools and techniques,and shall not be considered legal advice with regard to the validity of any of the identified approaches or the potential legal consequences of implementing any particular approach.Potential risks are identified only if explicitly set out in the statutes.KKC recommends that the City consult with its attorney with respect to the legality and potential risks and exposures presented by any particular approach. Draft 01/04/08 Page 5 of 27 Comprehensive Planning Chapter 213 of the Texas Local Government Code contains a broad authorization to develop and adopt a Comprehensive Plans The statute allows the City to decide for itself what its Comprehensive Plan will address_and_how_ to the land development regulations. With regard to_content, the statute says a Comprehensive Plan may: • Include, but is not limited to, provisions on land use, transportation, and public facilities; • consist of a single plan or a coordinated set of plans organized by subject and geographic area; and, • be used to coordinate and guide the establishment of development regulations. State law provides that "A municipality may define, tirttlar th in its charter or b ordinance, the relationshipin eagenient technique depends upon the type of Y r r icet f to g.. general law or home rule),the population Of between a Comprehensive Plan and development I F1, County. one Ce population and geography of the City, regulations, and may provide standards for ihe City of Station is a home rule municipality with a determining the consistency required between a 4000 opukitioi of 67,890 person;. P(�r Section 42.021 of the plan and development regulations." In other words, e xos Local Go uernnient Code, the extraterritorial jurisdiction there is not a requirement that the comprehensive )extends 3 miles from the City limits. College Station is be applied in strict terms in all land use located i n B azos County, which has a 2000 population of planpp -152,415 person,. decision-making. However, there is latitude regarding the extent to which the land development regulations may be used to implement the plan.This is essential if the City is to successfully control its destiny. It does not appear that the City Charter specifically authorizes the purpose or use of a Comprehensive Plan. While a plan is generally recognized as a "guide" for decision-making, given its relevance and essential role in managing the City's growth and development, it is advisable for the City to specify its value in its long-range planning interests. Therefore, this may be an opportunity to make the plan for authoritative in land development decisions and capital expenditures. The City's Unified Development Ordinance (UDO) identifies as one of its objectives to "Implement the Comprehensive Plan through compliance with its individual elements." Furthermore, the relationship between the UDO and Comprehensive Plan is expressed as follows: • "It is intended that this UDO implement the City's planning policies as adopted as part of the City's Comprehensive Plan,as amended and periodically updated. • The City's Comprehensive Plan, and any associated plans or studies adopted by the City Council, shall be required to be amended prior to, or concurrent with, permitting development which would conflict with the plan. • The alignments of proposed thoroughfares and bikeways on the"College Station Thoroughfare Plan map?And the"College Station Bikeway and Pedestrian Plan map" are generalized locations that are subject to modifications to fit local conditions,budget constraints, and right-of-way availability that warrant further refinement as development occurs. Alignments within'1,000 feet of the alignment shown on the aforementioned maps will not require a thoroughfare plan amendment." 8 Chapter 213 is not the only source of authority to adopt a comprehensive plan.Home rule may also be a source of authority,which is accomplished via the City charter is some Texas communities,e.g.Georgetown. 9 Section 1.6,Relationship to the Comprehensive Plan,Unified Development Ordinance,July 3,2006 Draft 01/04/08 Page 6 of 27 Therefore, to further strengthen the relationship between the Comprehensive Plan and UDO, the following should occur in the interest of better managing growth: • Areas within the City limits that are not within the defined "growth area(s)" should be zoned Agricultural-Open"A-0",provided the minimum lot size in increased from five to 20 acres,or more. • The decision as to the zoning of newly annexed property must strictly adhere to the City's growth plan. Annexation of land that is not within the defined "growth area(s)" must be zoned "A-O", giving the City the decision as to the timing of development and its provision of services. • The area defined as"Rural" on the Land Use Plan10 should strictly adhere to the City's growth plan. Those portions of this area that are inadequately served and are not feasible for the extension of adequate public facilities and services should be re-designated as Agricultural-Open. • The Rural Residential Subdivision "A-OR" district should coincide with the boundaries of the "Rural" designation on the Land Use Plan.The ordinance should subsequently be revised to increase the minimum lot size from one to five acres, with density bonuses for development clustering and increased open space. • The use designations on the Future Land Use Plan should be reconciled with the zoning districts. Rather than indicating land use with a general reference to density,both should more clearly define the intended character of development. In other words, low, medium, and high density residential should include additional performance standards to ensure the intended character. Standards such as maximum gross density and open space and floor area ratios will better ensure the development outcomes. Otherwise, if more than one zoning district is allowed and there are not definitive standards, there is no mechanism for the City to control the development character. As it relates to growth management this is essential as a means for improved utility systems planning (since the density and hence, infrastructure demands are known) as well as controlling the form and character of development. The Comprehensive Plan offers the ability for the City to establish its growth policies,which must then be directly related to the zoning regulations to effectuate them. This must be accomplished in tandem with the City's water, wastewater, and drainage master plans, as well as the capital improvement program. Generally, the Comprehensive Plan should direct development first, to the areas where there is already adequate infrastructure and secondly, to the areas that may be readily and efficiently served with public facilities and services. Targeted upgrades of the infrastructure may be required to facilitate an infill development program. Lastly, the areas around the periphery of the City that may not be efficiently served-or are simply premature for development—should be reserved in the near term for agricultural (Agricultural-Open) or very low intensity uses (Rural Residential Subdivisions) with infrastructure staging for longer-term development. The means of executing these general policies are described in detail below. The City's over-sizing policy should cite as an exception for refusing to extend water or wastewater mains consistency with the Comprehensive Plan. The update of the plan must then define the area for which urban development is to be accommodated.More specifically perhaps is the definition of the areas that are not intended for infrastructure investment during the horizon of the plan and thus,subject to the growth control mechanisms of this paper. In so doing, rather than responding to development, instead, 10 Land Use Plan,November 2004 Draft 01/04/08 Page 7 of 27 the City may proactively direct development to occur in appropriate locations and concurrent with the availability and provision of adequate public facilities and services. Through the course of plan development the following areas should be identified and delineated, as displayed in the illustrative examples: • The developed area is where there is existing 'L" i infrastructure. Remaining opportunities within :7 0 this defined area would consist of infill .._ development,redevelopment, and areas that are immediately contiguous to existing development. It is important to note than there is approximately 2,010 acres of vacant, i 1 ,'' ' residentially-zoned land within the City limits. This amount of developable land will support .. .,` I an additional population of 18,650 persons11, which is approximately 60 percent of a mid- range estimate of added population by the Year j 2025. Therefore, the plan must quantify and determine the area necessary to support the . projected population and employment 1 increases, and coordinate the infrastructure plans accordingly. #0 • The protection area encompasses areas of floodplain,wetland,streams and drainage ways, or other natural areas that warrant permanent protection. These are areas where the City's zoning or subdivision regulations should prohibit development. The protection area may Cj also include the Agricultural-Open "A-O �� district that is intended to remain in agricultural use and where residential development is restricted. • The growth area is where new growth is to be T encouraged for which there are readily available f services that may be efficiently extended. This is � . the area where the City will commit to extending infrastructure and improvements to support urban development. The size of this area should support 20 years of development potential. This area may be further delineated to include five-year growth increments to be timed with the extension of facilities and services. It is common to upsize this area by 20 to 30 percent to allow market flexibility.The size and location of the growth areas need to be closely evaluated and clearly defined given the amount of currently available land.The City would also need to revisit these areas and make periodic adjustments. u This assumes four units per acre and 2.32 persons per dwelling unit(U.S.Census,2000) Draft 01/04/08 Page 8 of 27 • The holding zone is all remaining land in the ETJ and outside of that identified above 0 described areas. Due to the limitations of State law, this is the most difficult of the four areas to address. Given the reasons identified earlier, development may now occur within this area. Development in areas for which the City cannot readily and efficiently provide services is clearly premature and results in sprawl. Therefore, the question is to what extent the City is willing to enact control by the below described growth management techniques. In order for the City to manage the location of development it must employ some of the techniques described below. Effectively, the strategy should — — direct a vast majority of development to occur in the developed and growth areas as infill or contiguous 0 development. The controls must be designed to minimize the amount of urban development in the holding zone. Amendment of the Subdivision Regulations The most readily available means for minimizing the impacts of peripheral growth is by way of amending the subdivision regulations. However, while certain controls may be put in place to solve anticipated problems, this approach will not have any material affect on the pattern or timing of urban growth. It remains though, a warranted and necessary step to rr� _a__ ensure quality development and to ameliorate -- unnecessary problems. Unlike zoning regulations,the value of the subdivision regulations is that they may be extended into the ETJ.12 While subdivision controls typically include requirements for lot size, access, and infrastructure, State law also authorizes the City to adopt"other municipal ordinances relating to access to public roads or the pumping,extraction,and use of groundwater by persons other than retail public utilities.. .for the purpose of preventing the use or contact with groundwater that presents an actual or potential threat to human health"within the ETJ.13 12 Unlike subdivision controls within the City,enforcement of the subdivision regulations in the ETJ is limited to injunctive relief (fines and criminal penalties in the ETJ are prohibited).See§212.003(b)and(c),TLGC. 13 Section 212.003,Texas Local Government Code Draft 01/04/08 Page 9 of 27 Provided the Comprehensive Plan is sufficiently specific, subdivision controls can be a strong tool for ensuring that Summary: Subdivision Controls adequate water, sewer, and road service is provided to new Purpose: Generally,the purpose of development in the City, and more importantly, in the ETJ. subdivision controls is to regulate the dimensions of lots This is so because State law provides that a plat shall be and the provision of access, approved if: utilities, and public facilities. • it conforms to the general plan of the municipality and its Strengths: Along with zoning, access current and future streets, alleys, parks, playgrounds, and management, and other regulatory tools, subdivision public utility facilities; controls are an important • it conforms to the general plan for the extension of the means to ensure adequate municipality and its roads, streets, and public highways infrastructure and regulate community character. within the municipality and in its extraterritorial Generally, utilities may not be jurisdiction, taking into account access to and extension of connected to subdivided sewer and water mains and the instrumentalities of public property without an approved plat. utilities; Subdivision controls enerall • it conforms to any[adopted subdivision]rules... .14 Weaknesses: generally must stand alone in the ETJ (where zoning is not allowed By implication, the plat can be denied if the standards are not without consent).Statutes do met. This requires a Comprehensive Plan that sufficiently not allow regulation(without consent)as to land use, bulk, defines the standards by which development must uphold. height, number of buildings, For instance,the thoroughfare plan must encompass the entire size of buildings,or residential ETJ—and beyond in some cases—with denoted alignments of units per acre in the ETJ. collector and arterial streets, and other regional, intra- and inter-state highways. Potential amendments to the subdivision regulations may include the following: (1) Access management standards could — and should - -, , be imposed consistent or similar to those recommended by TxDOT. For example, if the spacing requirement between driveways is 360 feet (recommended for streets with 45 m.p.h. posted speed), then 100 to 200 foot frontage lots with individual drives would not be allowed. This would „ km preserve the safety and traffic carrying capacity of roadways that may be improved to collector or '' w{ ,�1Fi ��'u�usarterial standards in the future. Strict application of 3021 spacing requirements would: (1) encourage platting (which is required when infrastructure — here, access streets — is dedicated); or (2) likely reduce lot depth, which would make more efficient use of the land. 14 Section 212.010,Texas Local Government Code Draft 01/04/08 Page 10 of 27 Section 212.004, of the:Texas Local Government Code exit=mets from subdivision requirements"a division of land into Although the City is not ts greater tn fie acres, whereach prt s (2) regulate"the number of . .units ed to acre"in no public improvemvei t is being dedicated.''Exempt" pt" and p development encourages lots that are narrow and deep, with the ETJ, as a practical matter, because the City 100 to 200 feet of frontage and 2,178 to 1.089 feet of depth. may regulate the dimensions and layout of the This development four, creates a number of challenges. lots, density maybe, more or less, influenced by •N rrro -tots often fronto on roads th at are intendedly serve a city acle mobility function Connecting residential driveways authorized rules like minimum lot size, to these roads invites future traffic conflicts. minimum lot width, and right-of-way . Narrow lots alter the rural character of the landscape--and dimensions.15 Therefore, if the City were to the rural c cortomy-in five ways: 1 Buildings are closely spaced and close to the street require a minimum lot size of five acres, for blocking views from the street of the open spares behind instance, due to the capacity of the adjoining them, roadway and/or where there are not public 2,The lots are"too small to faun and too big to mow,"so it is water and sewer systems available,effectively, a not uncommon for the yards to be poorly maintained; 3.fhe land within the lots is often lost to agrrcultur<al use relationship may be forged between lot size, because such uses generally reed large regularly-shaped infrastructure demands, and the availability of parcels, and assembling a reasonable leasehold from adequate public facilities. This authority is separate residential landowners, 100 to 21))feet at a time, granted to the City "to promote the health, :s not practical(especially since the early mowing noise incdust from agricultural Operations is ultimately likely to safety, morals, or general welfare of the be a point of consentiou between n the homeowner and the municipality and the safe, orderly, and healthful farmer); development of the municipality."16 1 The new resideritial uses are usually riot compatible with the existing agricultural uses, which generates increasing (3) Together with the requirements for an increased political pressure against agriculture; and lot size could be an allowance-or incentive-for 5.When they reach a critical moa- the new residential uses development clustering. The option would be attract supporting commercial uses that further squeeze to the land owner as to whether theyagricultural land and agriculture-supportive commercial given es. choose to develop with a large lot size or select a clustering option that allows more density. In other words, rather than constructing a rural large lot subdivision with no public open space, smaller lots would be required with a high ratio of public open space. The result allows the rural character to remain with the advantages of fewer required access points, less impervious cover, reduced water demands, increased recharge, and land conservation. Given certain performance standards, the open land could continue to be used for agricultural purposes. (4) Through the delineation of"protection areas" the City may strengthen their standards relating to the protection and preservation of its resources.While the , City has regulations for floodplain areas, there are few ■_ other standards for the delineation and protection of '" '- t"E`I411 wetlands, habitats, mature vegetated areas, or other ■ '" •r •I natural features. Resource protection standards '. s a • r' Ace. so wouldg rovide a method and means for requiring s``--., e +¢" ■ p q varying degrees of protection of resource features, depending on their scale and significance, with By clustering development open views may be development flexibility and incentives by way of protected thereby preserving <�l rr al, open character. density bonuses for constructing on the developable portions of the site. The use of density bonuses 15 Such rules are permitted by Section 212.010(4), TLGC, which allows the same rules for subdivision in the ETJ as in the municipality.Of course,in the ETJ,these rules are limited by Section 212.003,TLGC,so,for example,if a developer found a market for multiple homes or buildings on a single lot in the ETJ,the City could not prohibit the development. 16 Section 212.002,Rules,Subchapter A,Regulation of Subdivisions,Texas Local Government Code Draft 01/04/08 Page 11 of 27 may allow a higher gross density as an incentive by adjusting lots sizes or using different housing types in combination with an open space ratio. (5) A development plat is a way for the City to regulate development within the City limits and ETJ that may otherwise be exempt from the subdivision plat process 17 The City has provisions for development plats, with stated exemptions. It is advisable for the City to reconsider the waiver allowance as well as the exemptions and instead, require submittal of a development plat for all projects in the ETJ. Such a requirement would be of great value to document all improvements, easements, and rights-of-way, and most importantly,because it must be approved to conform to: (1) the general plans,rules, and ordinances of the municipality concerning its current and future streets, sidewalks, alleys, parks, playgrounds, and public utility facilities; (2) the general plans, rules, and ordinances for the extension of the municipality or the extension, improvement, or widening of its roads, streets, and public highways within the municipality and in its extraterritorial jurisdiction, taking into account access to and extension of sewer and water mains and the instrumentalities of public utilities; and (3) [the subdivision plat regulations]. The subdivision plat process does not allow the municipality to require building permits or enforce its building code in the ETJ.18 (6) Incorporation of the parkland dedication requirements into the subdivision regulations,which will allow the dedication or fee in-lieu provisions to be extended into and throughout the ETJ. Effectively, this will ensure that development outside of the City limits is fulfilling its proportionate demands on the community's park system similar to the requirements for development inside the City. This would remove this current advantage for developing in the ETJ. Annexation The means that most communities use to exercise control of the pattern and type of development outside of the City limits is to extend the City limits by annexation. Annexation allows the City the ability to impose its land development regulations, which provides an essential growth management tool to implement the Comprehensive Plan. Annexation also extends the City's ETJ enabling it to regulate the subdivision and development of land over a larger area. However,it is important to realize the stringent requirements mandated by State law for extending 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.Requirements for annexation include: • A three-year annexation plan to identify specific properties the City intends to annex following a three-year waiting period; • Acting on annexation proposals within 31 days after the three-year waiting period to prevent the subject properties from becoming exempt from annexation for another five years; • Inventorying all current services in the annexation are(including services provided by all entities,the condition of facilities,existing public safety response times,and current service costs); • Preparing a municipal service plan for the targeted area within 10 months of receiving data for the service inventory; • Immediately extending basic public services (police, fire, and EMS) and "full municipal services," including necessary capital improvements, within 2.5 years of annexation, unless certain exceptions apply(such as a negotiated service schedule for a requested annexation); • Possibly negotiating agreements in lieu of annexation to formalize interim service provision and cost- sharing arrangements and possible compliance with City ordinances or development standards; 17 The authority to require a development plats is provided in Section 212.044,Local Government Code. 18 Section 212.049,Texas Local Government Code Draft 01/04/08 Page 12 of 27 • Potentially entering into arbitration proceedings if annexation planning and negotiation is unsuccessful;and, • Potentially negotiating"strategic partnership agreements"with special districts. Of significance in the law is an exemption from the above requirements for annexation proposals - that will involve fewer than 100 tracts of land ` -" where each tract contains at least one residential If the level of services, infrastructure, and dwelling. With the exception of sizeable infrastructure developments, most annexations are exempt maintenance in the Then services, infrastructure, and affected area before infrastructure maintenance must from the above requirements.Also,the City may not annex more than 10 percent of its land area annexation was: be: year. If it does not annex all of the Lower than in the "Comparable to the level . . . in any givenmunicipality available in other parts of the land that is allowed, the difference rolls over to municipality with topography, land the next year. If multiple carryovers are use, and population density similar to those reasonably contemplated accumulated, the City can annex up to 30 or projected in the[annexed] percent of its land area in a single year. area." Equal to the municipality "[T]hat same[pre-annexation]level State law provides for the minimum level of • . • service that must be extended to the annexed Superior to the / areas,as described in Table 1,Annexation Level municipality of Service Requirements. �i Re: services "Comparable to the level . . . available in other parts of the municipality with topography, land Significantly, State law does "not require that a use, and population density similar uniform level of full municipal services be , to those reasonably contemplated provided to each area of the municipality if or projected in the[annexed] area." different characteristics of topography, land use, Re:operating and Equal to or superior to the pre- and population density constitute a sufficient maintaining annexation level. basis for providing different levels of service."19 _ infrastructure Therefore, the law appears to allow the City to annex territory and provide minimal services if those services are commensurate with that provided in areas of similar "topography, land use, and population density" within the City. Yet such a strategy is not necessarily without risk -- disputes with affected landowners over levels of service could expose the municipality to civil penalties, court costs, and attorneys' fees.20 Accordingly, the City should plan carefully and involve the City Attorney early in the process if it chooses a growth management strategy that involves providing a minimal(rural)level of service to a newly annexed area. • Often,there are warranted reasons for considering annexation,including,among others,the ability to impose the City's land development regulations along major transportation corridors and in prime development areas that may otherwise compromise the community's long-term interests. There are several areas for which the City is now considering annexation. Since the primary purpose for annexing these areas is to exert control of probable growth areas,_it is advisable for the City to employ 19 Section 43.056(m),Texas Local Government Code 2°Section 43.056(1),Texas Local Government Code Draft 01/04/08 Page 13 of 27 growth management techniques in these areas to prevent premature development. For instance, unless the City is prepared to extend full municipal facilities and services—and such are determined to be efficient and feasible—these area should be zoned for Agricultural-Open,which may serve as a holding zone until which time as the City determined development to be appropriate and of fiscal benefit. Zoning Regulations Chapter 211 of the Texas Local Government Code authorizes the City to enact zoning regulations to 70 [eyuiation:, must be designed to control building height and size; lot coverage; yards lessen oiigest on in the streets; and open spaces; population density; the location ;_secure safety front fire, pa lc, and other dang(r°� and use of buildings; the location of land that may 3 promote health and the genera welfare be put to various business, industrial, residential, or `''provide etheoveadequate light g o sir, ;, prevent ent overcrowding of iand, other purposes; the extraction of groundwater 6 tivoid ur roue .oncor trauion of population; (except by retail public utilities); and, in home-rule -caitf'te the adequate provision of trarbpou_.,,o 1 municipalities like College Station, the bulk of er` ` ::iopls, parks, and other public roan rements. buildings. Zoning regulations are not authorized coLscC. s6ctrar €i 1.00=1 tornpli.lrl(;F_' 'dirt bentDietlerhivt He. outside of the municipality's corporate boundaries without the consent of the affected landowner(s)21 In concert with annexation, all newly incorporated areas should to be zoned "A-O" Agricultural-Open, without consideration of any other zoning district classification unless merited by way of being within a defined "growth area." However, to serve its growth management function, the minimum lot size must be increased from five to 20 or more acres. Therefore, the open, rural character of these areas would be maintained and their rezoning to another district classification could be timed with the City's staged growth plan and infrastructure improvement plans. The City could allow for very low density residential r' development in these agriculturally zoned areas by d A allowing extreme clustering. This enables there to be development value to this land and also allows for construction of additional homes. As an example, one dwelling unit per 20 acres with no required open space equates to a gross density of 0.050 units per acre. A one acre lot with a septic system and well and 85 percent open t space allows an increase to 0.070 units per acre. Similarly, a one acre lot with a septic system and public water and 90 percent open space equates to the same 0.150 units per rr acre. Therefore, clustered residential development may be development value while presevr allowed with a corresponding high open space the rural, open character. 21 Generally,the power to zone may only be exercised within the municipality."The governing body of a municipality may divide the municipality into districts of a number,shape,and size the governing body considers best for carrying out this subchapter." § 211.005(a),TLGC(emphasis added). However, one way to enforce zoning regulations in the ETJ is to enter into a development agreement with the affected landowner pursuant to Subchapter G of Chapter 212 of the Texas Local Government Code. See § 212.172(b),TLGC. Draft 01/04/08 Page 14 of 27 requirement to preserve the agricultural character.Slightly higher levels of density may also be permitted to allow more development value without compromising the character of pattern of peripheral development. The most viable means of growth management for the City,given the limitations of State law,is to annex the maximum allowable 30 percent of its land area,followed by annexations of the maximum allowed 10 percent each year until the incorporated area encompasses land sufficient to support 30 to 50 years of growth, all areas of strategic interest, and the defined long-term growth boundary. This strategy, however, requires the City to establish that there are areas within the corporate limits that have similar "topography, land use, and population density" to those being annexed for which there are minimal facilities and services being provided. If this is the case, a uniform level of municipal service is not mandated making large-scale annexation more feasible.If this cannot be established, a service plan must be prepared and robust cost-benefit analysis conducted to determine the feasibility of the annexations. Then, a policy decision would be necessary to consider the value of annexation and growth control versus the added cost for providing the state mandated services. Zoning Ordinance Simplification and Development Streamlining If the City is to successfully entice development to occur within the City limits rather than the ETJ, its development processes and timing of approvals must not be a constraint.Since a plat is the only required approval for development(of less than five acre lots)in the ETJ,the complexity of the process and length of time to gain approval within the City may outweigh the benefits of in-City development (public utilities, improved emergency response times, increased convenience, zoning controls, etc.). Therefore, although the City's current process is not atypical, there are significant improvements to be made, of which the more significant and relevant include the following: • First and foremost, there are opportunities to reduce the number of zoning districts. The structure of the current districts requires a zone change should a property owner decide to development more than one use or to change the use. At the same time, use-based districts offer no assurance of the character of compatibility of abutting developments. • The use-based districts may be consolidated into fewer districts that are based on the intended character of the district. For residential districts, character is defined by the allowable density and required open space ratio, as well as other performance standards relating to the floor area ratio (FAR), landscaping, etc. The character of non-residential districts is defined by the use intensity (measured by FAR) and a landscape surface ratio, along with standards relating to building scale, lighting, signage, and other design requirements. As displayed in Figure 3, Illustrative District Classification, within each district is allowed a range of development options, each with corresponding standards to retain the intended character.The benefits of this approach include: - Ability to determine the character of future development. - Increased certainty in the development process and assurance of outcomes. - Improved compatibility within and between districts. Multiple development options within each district adding flexibility while preserving development character. - Fewer zoning map amendments. - Ability to preserve resources while achieving an equivalent or higher density. - Ability to better plan for infrastructure needs. - Allowance for mixed use without a separate Planned Development District zoning process. Draft 01/04/08 Page 15 of 27 - District and Development Min. Density Required Minimum Site Type OSR Max.Gross Max. Utilities Area et Suburban(S) Single-Family 0.10 1.92 1.92 public 15,000 sf _ Cluster 0.30 2.17 2.17 public 5 ac _ Planned 0.85 2.25 3.50 public 15 ac. Auto-Urban(AU) - - Single-Family 0.10 2.61 2.90 public 20,000 sf. _ Cluster 0.30 3.23 5.54 public 10,000 sf. - Planned 0.35 4.37 7.50 public 10,000 sf. Urban(U) Single-Family 0.10 3.27 3.64 public 15,000 sf. Cluster 1 0.25 4.15 5.54 public 8,000 sf. _ Planned 0.35 5.56 8.50 public 6,000 sf. - Buffering commensurate with the level of impact. - Lessens use incompatibility due to the cumulative nature of the current districts. • The above approach incorporates planned development as an option that is permitted by right, subject to applicable standards.Density bonuses are used as an incentive for encouraging this type of development, offering more density in exchange for increased open space and amenities. Therefore, the approval process is streamlined by avoiding the timely zoning map amendment process. Adequate Public Facilities Requirements An approach that may help to manage the pattern of growth is allowing development to occur only as adequate facilities and services are available.This requires other growth management provisions though, to determine where and when infrastructure will be provided. If the City commits to provide sewer service with an expanded CCN and water is readily available through other sources, then the question of adequate public facility availability is a moot point. If however, facilities are requested outside of the City's designated growth area, this mechanism may be effective if there is not other means of acquiring the requisite infrastructure. .. :, , ; Also known as concurrency requirements, essentially this F ""iY mechanism ensures that infrastructure is existing or _ : readily— and efficiently - available prior to or concurrent with development. Adequate Public Facilities Ordinances (APFOs) require applicants for new development to demonstrate that facilities and services will be available to serve the project at the time the development is available Draft 01/04/08 Page 16 of 27 for occupancy. Utilizing this system, the City is able to adopt level-of-service standards, which can be used as criterion for judging conformance with the subdivision regulations. The provisions of State lawn allow the City to condition property development for a portion of the infrastructure costs, which supports this method. As an alternative, higher impact fees and/or increased developer participation in infrastructure construction and financing may be necessary to shorten development timeframes. This approach is practical in that it ties development to the capacity of the infrastructure systems to support it.The value of this approach is its ability to establish a direct, causal link between the provision of public facilities and the public health,safety,and welfare.The general components include: 1. Determining a service threshold at which demand exceeds the desired capacity of public facilities, whether it is water and wastewater systems, roadways, parks, or schools. Generally, the difference between the established threshold and the existing level of service is the amount available for development. 2. Determining if there are projects that will be exempted or receive flexibility in meeting the threshold requirements by way of achieving other community objectives, such as infill development, mixed use,affordable housing,etc. 3. Determining the measures to remedy situations when the threshold is exceeded, including delay of development until such time as the project no longer exceeds the threshold, reducing the project's impact to the point that it meets requirements, or mitigating the impact of the project by upgrading public facilities or infrastructure. 4. Reserving the amount of capacity projected for a development during the time between approval of a project and its completion, which counts against the total capacity of public facilities in future applications for development.An expiration date for approved projects may be necessary so as not to unnecessarily burden or deny other projects. Provisions related to adequate public facilities could be added to the subdivision regulations. For instance, the following— or similar—language could be used: "The City does not directly regulate the use, density, or intensity of development in the ETJ. However, neither subdivision plat nor development plat approval shall be granted for property located in the ETJ unless all of the following are demonstrated: 1. The water service to or within the development is sufficient to provide necessary potable water and sufficient volume and pressure for fire flows to an appropriate number of appropriately spaced fire hydrants that are necessary to protect the development. 2. The wastewater service to or within the development is sufficient to protect the health of the residents or the general public. 3. The proposed subdivision plat or development plat has no material potential to cause contamination of a municipal water supply that the City has jurisdiction to protect." Market Performance Standards This approach is an alternative to an APFO, which better addresses the conflict between property rights and the City's obligation to provide infrastructure and services in a fiscally responsible manner. It accomplishes the same things as performance standards in terms of added flexibility and clustering,but it alters the approach to density and infrastructure level of service. u Section 212.904,Apportionment of Municipal Infrastructure Costs Draft 01/04/08 Page 17 of 27 Many argue that the market is the best way to regulate development. This has merit only when all elements are properly priced in the market. A problem as it relates to infrastructure, though, is that support of development by adequate roads, police and fire services, schools, and other public services is not part of the market equation. For example, road improvement and long-term maintenance are not considered in a real estate transaction. A person who purchases a home on a gravel road does not necessarily pay less for the home. Therefore, when the road requires maintenance it becomes the City's obligation to make the improvements. Except for the most expensive housing, the tax revenue from residential development is insufficient to cover the requisite costly infrastructure improvements and service expansion. A market performance ordinance addresses the capacity of infrastructure. Where growth occurs roads will eventually require widening or surface improvements as the traffic volumes exceed the road capacity. Therefore,market performance ordinances create what is known as traffic-sheds for unimproved and under-improved roads. Since the traffic volumes and capacity of the road may be known, there may be an allotment of dwelling units per acre based upon a proportionate share of the road capacity. Therefore, the capacity is .. spread evenly across all properties in the traffic-shed rather than on a first-come-first-serve basis as in the APFO approach. li Each landowner has the right to use their proportionate share of the available road capacity. Roads with very low capacity or where there is ,attic si lify the a very large area within the traffic-shed result in lower densities. The has e 10 1(1,1(3 allot Ind an adifference is that the market offers the landowner a range of options not o.h�-<}rndn; r based upon a I rf r, :<,I � ;rc of roar; capacity. available under other types of ordinances,including the following: • The allowable density may be altered by improving the road as part of the development cost.If a few hundred feet of improvements are needed to improve capacity, the improvements will likely be funded.If there is a long distance that must be improved it is unlikely that it will be funded,meaning that the development pattern occurs in a more contiguous—rather than leapfrog-manner. • A new road may be constructed to create a new traffic-shed,which may reduce the size of the traffic- shed allowing increased density. This option is available only where there is direct access to an improved collector or arterial roadway. • Development may occur in phases reserving the balance of land for subsequent phases as additional capacity becomes available upon improvement of the road. • Development may occur at the permitted density with large acreages.If the acreages are of sufficient size and have proper frontage, there may be added development potential upon improvement of the road. • There may be a transfer of development rights to other property. Upon improvement of the road the agricultural area may receive additional density allowing development at that time. • A landowner or group of landowners could form an improvement district to pay for road improvements,subject to City standards and criteria. Draft 01/04/08 Page 18 of 27 Since State law specifically indicates that "a municipality shall not regulate: ... (4) the number of residential units that can be built per acre of land",23 there would have to be a legal basis established for the ordinance based on the City's jurisdiction to"promote the health,safety,morals,or general welfare of the municipality and the safe,orderly,and healthful development of the municipality."24 Impact Fees Impact fees are charged to new development for the construction of new infrastructure that is needed to serve the development. They are related to special assessments, except that: (1) they are charged to new development upon approval rather than to all owners within a particular district; and (2) they may only be charged for the fair share of infrastructure required as a result of the new development. Provided in Table 2,Impact Fees, is a summary of their purpose,strengths, ible 2, Imeact Fees, and limitations. ummary Purpose: To allocate the costs of Impact fees facilitate a planned, coordinated approach to providing additional providing infrastructure. In Texas, impact fees may be used to infrastructure to serve new fund water supply, treatment, and distribution facilities; development to that new wastewater collection and treatment facilities; storm water, development. Strengths: Fair share fee allocation; cash drainage, and flood control facilities; and roadway facilities payments help avoid that are needed to serve new development according to a potentially dangerous capital improvements plan (including planning, engineering, piecemeal improvements to land acquisition, and construction).25 They cannot be used to dedicated rights-of-way. Limitations: No street impact fees may be fund: charged in the ETJ(where • Facilities that are not in the capital improvements plan; formerly rural roads are likely to • Repairs,operation,or maintenance of existing facilities; be more easily overwhelmed • Upgrades to existing facilities to meet new standards; by new development). • Upgrades to existing facilities to better serve existing development; • Operating costs of the local government;and • Payments on debt that isnot related to expenditures that may be paid by impact fees. Impact fees must be supported by technical analysis of qualified professionals, set out in a capital improvements plan.The plan must: • Describe existing capital improvements and projected costs to meet existing needs(including stricter safety,efficiency,environmental,or regulatory standards,if applicable); • Analyze the total capacity, the level of current usage, and commitments for usage of capacity of the existing capital improvements; • Describe the capital improvements (including costs) that are necessitated by and attributable to new development based on the approved land use assumptions; • Provide a definitive table that relates capital improvements costs to "service units" that will serve as the basis for impact fees; 23 Section 212.003,Extension of Rules of Extraterritorial Jurisdiction,Texas Local Government Code 24 Section 212.002,Rules,Texas Local Government Code 25 Impact fees for roadway facilities may not be charged in the extraterritorial jurisdiction.See§395.011(b),TLGC. Draft 01/04/08 Page 19 of 27 • Estimate the total number of projected service units necessitated by and attributable to new development within the service area,based on the approved land use assumptions and calculated in accordance with generally accepted engineering or planning criteria;and • Project the demand for capital improvements required by new service units,over a reasonable period of time up to 10 years. Impact fees use the same theoretical basis as adequate public facilities ordinances. Essentially, the City would establish the capacity of all applicable facilities and the required standard;for example,the level of service (LOS) for roads or number of acres of parks per one thousand persons. The impact fee is then established to generate the funds needed to provide the desired level of service for all facilities. Rather than exhausting capacity,impact fees require payment for a proportionate share of the burden created. Since the City has impact fees for some defined service areas,26 this instrument could be expanded to encompass other areas of the City and ETJ, as allowed by State law. Impact fees may be particularly appropriate for portions of the City's defined growth area for which there are no plans for infrastructure improvements within the five-year capital improvement program. This would essentially allow development to occur consistent with the growth plan, but without committing the City to prematurely construct such facilities and services.Specific criteria must be established as to the appropriateness of and under what circumstances the City may consider the use of impact fees to allow development to occur— or not occur—in areas outside of the defined growth area(s). This would be an essential prerequisite for the development of this program to ensure that the integrity of the City's growth strategy may be upheld. Conservation Easements Conservation easements cover a broad range of purposes, whether it is for wildlife or resource management, scenic preservation, or to limit the use of land. A few communities are using conservation easements to control their growth and preserve their agricultural areas, such as Solebury Township in Bucks County, Pennsylvania. With a conservation easement, the landowner continues to own the land and is responsible to maintain it. The land remains on the tax roles although there may be significant tax advantages to the landowner for the dedication of an easement,which also lowers the cost of acquisition. An agricultural easement could allow the landowner the right to continue to farm the land and keep their home and buildings.It could also allow some additional development. An important aspect of this concept is its flexibility. It can identify a variety of restrictions and development options that may be tailored to the needs of the landowner and the City as the agency accepting the conservation easement. This provides an opportunity to tailor the acquisition to meet landowner concerns and reduce the cost of the easement. This instrument is most appropriate for and may best be used to supplement a host of other management techniques, rather than as an independent method of conserving resources and open space. For instance, there may be attractive incentives integrated into the zoning ordinance whereby density bonuses are offered in exchange for preservation of open space. This tool can and is being used effectively in some jurisdictions. 26 Chapter 15,Impact Fees Draft 01/04/08 Page 20 of 27 • Development Agreements Development agreements are written contracts that can be used for a wide variety of purposes,including to impose land use and environmental controls (planning authority, existing zoning regulations, new land development regulations, or specific_uses and development, and environmental regulations) over property in the ETJ in exchange for the provision of infrastructure and public services (e.g., streets; drainage; and water, wastewater, and other utilities), and/or a guarantee to annex the property (on agreed upon terms), or not to annex the property for a period of not more than 15 years. Development agreements run with the land,but do not bind end-buyers of fully developed lots,except with respect to land use and development regulations that apply to the lots. Provided in Table 3, Development Agreements,is a summary of their purpose,strengths,and limitations. Development agreements are contracts, and as such, require ; t negotiation and execution by the City and developer. In many ' cases, there is little incentive for the developer to enter into a Purpose: Allow municipalities and development agreement because the City has relatively little developers within the ETJ to negotiate and agree to terms leverage.For example: regarding annexation,land • The City may not condition the provision of municipal use controls, infrastructure and utilities on the execution of a development agreement 27 utilities. • No leverage is created by impact fees for roadway facilities Strengths: Allows municipalities to because such fees "may not be enacted or imposed in the exercise some control over the use, character and quality of extraterritorial jurisdiction." This is apparently so even if the development within the the roadway facilities are provided by development ETJ, provided that the agreement. landowner consents. Limitations: Many limitations reduce the • Developers have several alternatives to provide for leverage of the municipality to infrastructure and utilities, such as a petition for the encourage developers to creation of a political subdivision(as described below).The enter into a development City may place only very limited conditions on the agreement. formation of the political subdivision.28 This is not to say however, that the City has no leverage. Indeed, cooperation may bring mutual advantages to the City and developer, especially if the City is able to provide timely infrastructure and services on reasonable terms. Since the City may enter into development agreements with landowners in the ETJ29 this may offer an opportunity for providing services in exchange for abiding by the City's development regulations and meeting other community objectives,e.g.resource protection,etc. Improvement Districts Improvement districts may be created to fund infrastructure improvements by special assessment against the property owners who principally benefit from them in fair proportion to the level of their benefit. Improvement districts are run by the governmental unit that creates them, in this case, the City. They have the power to impose a special assessment, but not to tax. Provided in Table 4, Improvement Districts,is a summary of their purpose,strengths,and limitations. 27"A municipality may not require[a development) agreement. . . as a condition for providing water,sewer, electricity, gas,or other utility service from a municipally owned or municipally operated utility that provides any of those services."§212.174,TLGC. 28 The conditions do not involve land use controls or annexation. 29 Development agreements are authorized by Subchapter G of Chapter 212,Texas Local Government Code. Draft 01/04/08 Page 21 of 27 Public improvements that may be funded by an improvement district include: 1. landscaping; 2. erection of fountains,distinctive lighting,and signs; 3. acquiring, constructing, improving, widening, narrowing, closing, or rerouting of sidewalks or of streets, any other Pur urrimary Purpose: To fund public improvements roadways,or their rights-of-way; and programs by assessing 4. construction or improvement of pedestrian malls; those landowners who benefit 5. acquisition and installation of pieces of art; from them. 6. acquisition,construction,or improvement of libraries; Strengths: Those who pay special 7. acquisition, construction, or improvement of off-street assessments are those who directly benefit from the parking facilities; improvements funded by 8. acquisition, construction, improvement, or rerouting of them; improvement districts mass transportation facilities; are administered by the 9. acquisition, construction, or improvement of water, governmental unit that formed them. wastewater,or drainage facilities or improvements; Limitations: Potentially lengthy process for 10. the establishment or improvement of parks; improvement district 11. projects similar to those listed in 1 through 10 above; formation. 12. acquisition, by purchase or otherwise, of real property in connection with an authorized improvement; 13. special supplemental services for improvement and promotion of the district, including services relating to advertising, promotion, health and sanitation, water and wastewater, public safety, security,business recruitment,development,recreation,and cultural enhancement;and 14. payment of expenses incurred in the establishment, administration, and operation of the district. And,in the case of home rule municipalities like College Station: 15. levying, straightening, widening, enclosing, or otherwise improving a river, creek, bayou, stream, other body of water,street,or alley; [and] 16. draining, grading, filling, and otherwise protecting and improving the territory within the municipality's limits. The City may create an improvement district within its corporate limits or ETJ,after a process in which: • A petition is initiated by the affected landowners or the local government; • One or more public hearings are held regarding: the advisability of the improvement; the nature of the improvement; the estimated cost of the improvement; the boundaries of the public improvement district; the method of assessment; and the apportionment of costs between the district and the municipality or county as a whole; • The local government issues an improvement order(by majority vote);and • Notice of the order is published 30 An ongoing service plan must be approved by the City. The plan "must cover a period of at least five years and must also define the annual indebtedness and the projected costs for improvements." The 30 The local government may also undertake a feasibility study and appoint an advisory committee with regard to the formation of the improvement district.See§§372.007 and 372.008,TLGC. Draft 01/04/08 Page 22 of 27 service plan must include an assessment plan31 and must "be reviewed and updated annually for the purpose of determining the annual budget for improvements." Use of this instrument may be feasible and warranted as a means for meeting the infrastructure needs within the City's"growth area(s)"for which the City is not yet prepared to commit capital resources.This may include outlying portions of the "growth area(s)" where near-term infrastructure provision and service expansion is not yet feasible. Interlocal Cooperation Contracts Interlocal cooperation contracts are authorized by Chapter 791, Texas Government Code (TGC). The purpose of the interlocal cooperation contract is to: "increase the efficiency and effectiveness of local governments by authorizing them to contract, to the greatest possible extent, with one another and with agencies of the state." Provided in Table 5, Interlocal Cooperation Contracts, is a summary of their purpose, strengths, and limitations. Chapter 791 provides broad authority for municipalities to contract with each other, with counties,with special districts and political subdivisions,with federally recognized tribal governments that are located in the state of Texas, and fable 5, Interlocal Coo eration Contracts with state agencies to provide "governmental function[s] or wo, service[s] that each party to the contract is authorized to Purpose: To increase the efficiency of perform individually."Such functions and services include: local governments by • "Functions normally associated with the routine operation enhancing cooperation of government, including tax assessment and collection, among them. personnel services, purchasing, records management Strengths: High degree of flexibility to services, data processing, warehousing, equipment repair, contract in order to provide a wide variety of governmental and printing." services. • "Police protection and detention services; . . . fire Limitations: Interlocal cooperation protection; . . . streets, roads, and drainage; . . . public contracts facilitate the use of health and welfare;. . .parks and recreation;. ..library and other growth management museum services; . . . records center services; . . waste tools,therefore their effectiveness depends largely disposal; . . . planning; . . . engineering; . . . administrative upon how well they are functions; . . . public funds investment; . . . comprehensive implemented and what they health care and hospital services; or . . . other provide for. governmental functions in which the contracting parties are mutually interested." • Water supply and wastewater treatment, various types of correctional and criminal justice facilities, transportation infrastructure,and purchasing contracts.32 Growth management is most effective when approached from several levels of government. Therefore, interlocal cooperation contracts are advised between the City, Brazos County, as well as each of the applicable water control and improvement districts(WCIDs). 31 City and County owned property is not exempt from assessment.See§§372.014,TLGC. 32 Sections 791.021 et seq.,TGC set out additional substantive and procedural requirements for these types of agreements. Draft 01/04/08 Page 23 of 27 STRATEGIC DIRECTIONS Given limited mechanisms within State law to directly manage growth,33 the City must use a multi- pronged strategy to effectively direct its future growth and development in a contiguous and fiscally responsible manner. First and foremost, the City must have a_sound statement of its growth policies through the Comprehensive Plan,effectively stating the purpose and intent for managing the timing and pattern of urban development. The Comprehensive Plan must be sufficiently detailed to express the general pattern and character of future development, as well as the general plan for providing (or allowing to be provided) the infrastructure (i.e. streets, water and sewer lines, drainage facilities, parks, etc.)required to support it.Without a certain degree of specificity as to the City's sequential growth plan- and its corresponding capital infrastructure plan - the City will be handicapped in its ability to adequately regulate the subdivision of land in the peripheral and outlying portions of its ETJ. The standards of approval set out by the Texas Local Government Code,34 state that: (a) The municipal authority responsible for approving plats shall approve a plat if: 1. it conforms to the general plan of the municipality and its current and future streets, alleys, parks,playgrounds,and public utility facilities; 2. it conforms to the general plan for the extension of the municipality and its roads,streets,and public highways within the municipality and in its extraterritorial jurisdiction, taking into account access to and extension of sewer and water mains and the instrumentalities of public utilities,et al; Since the approval of subdivision development is ministerial in function given the above requirement,the City must use the authority granted to it by Chapter 212, Municipal Regulation of Subdivisions and Property Development, to spell out its"general plan"and what is required for the subdivision of land.In other words, "level the playing field" with regard to the expectations of development standards in the ETJ that are proportional and comparable to that in the City limits. After all it is the expectation that the ETJ will become part of the City at an appropriate point in the future thereby warranting adherence to the City's plan. Lastly, the City must consider its authority to annex land into the corporate limits, which offers the most direct control as to managing the timing, pattern, and character of future development. While strengthening the subdivision regulations is an essential step, its most substantive benefit is to affect the standard of development without the benefit of specifying the use or character (density, intensity, bulk, height, etc.) of land 35 The City must therefore, consider its plan for incorporating that portion of the ETJ that is within its defined growth area,either by way of landowner petition or City-initiated annexation.In and of itself, incorporating land does not necessarily commit it for urban development. Rather, depending on the plan and timing for the provision of adequate facilities and services, the City may choose to zone areas outside of the defined near-term growth area (to be defined through the Comprehensive Plan process) Agriculture-Open "A-O" until which time as it is appropriate to extend adequate facilities and services. 33 There are no growth management provisions per se within State law other than the methods and means outlined in this paper. -34 Section 212.010.Standards for Approval,Texas Local Government Code 35 Section 212.003, Extension of Rules to Extraterritorial Jurisdiction, Texas Local Government Code, limits the City's ability to regulate in the ETJ the use,bulk,height,or size of buildings or property;the number of buildings or residential units;and the size, type,or method of construction of a water or wastewater facility that meets minimum standards of state and federal regulatory entities,et al. Draft 01/04/08 Page 24 of 27 There are a series of steps that are advisable for the City to take in its commitment to manage its urban form.These include: 1. Strengthen the Sewer Extension Policy — The application requesting a Certificate of Convenience ------ - and Necessity(CCN)that generally coincides with the boundaries of the ETJ(assuming authorization by the Texas Commission on Environmental Quality) obligates the City to provide sewer service when it is requested and consistent with its sewer extension policy. It is therefore, essential that the City critically review and subsequently clarify and strengthen its sewer extension policy to ensure that development occurs in a manner that is consistent and compatible with its growth plan and capital infrastructure plan.The policy should include,but not limited to,provisions regarding: a. Consistency with the strategic growth staging plan and future land use plan outlined in the Comprehensive Plan; b. Conformance with the City's utility master plans and the five-year capital improvement plan; c. Strict adherence to the City's growth policies and rural development standards, including verifiable demonstration on behalf of the subdivider that adequate facilities and services (i.e. minimum required fire flows, on-site drainage capacity, road capacity,parkland dedication,etc.) are present or will be present concurrent with development phasing;and d. Criteria regarding the cost effectiveness and fiscal impact on the City for its participation in over- sizing improvements that it requires for future development. 2. Amend the Subdivision Regulations—The following amendments are advisable: a. Establish a minimum lot size of 20 acres for rural development that is within the ETJ. So as not to be inconsistent with the limitation of State law concerning regulating the density of development in the ETJ, allow an equivalent density to coincide with the five acre platting exemption36 with a mandatory requirement for development clustering. Effectively,this approach reallocates density and does not limit it below what is allowed by State law. For instance, the lot size may be reduced to two acres as long as the density remains at 0.25 units per acre. As an incentive, the City may also allow a reduction in lot size to as small as one acre(or greater should it increase to two acres as now being considered by the County Commission) to coincide with the Brazos County Health Department's requirement for permitting septic systems, with an increase in density from 0.25 to 0.30 or more. b. Clarify and strengthen the provision in the current subdivision regulations stating that "All subdivisions shall be provided with water supply and distribution systems for fire protection and domestic use."37 More specifically, the regulations should establish under what circumstances development is required to connect to a public potable water system or is allowed on-site service. Furthermore, minimum quantity (gallons per minute), pressure (psi), hydrant spacing, and minimum line size should be established within the City's standards. In cases where fire protection demands are greater than set forth by City standards, then the supply and pressure requirements for fire protection should control. Fire hydrants should be placed in accordance with City standards, State Board of Insurance, Insurance Service Organization, or adopted Fire Code requirements,whichever is most stringent. 36 Section 212.004,Plat Required,Texas Local Government Code,provides that"A division of land under this subsection does not include a division of land into parts greater than five acres, where each part has access and no public improvement is being dedicated. 37 Section 8: General Requirements and Minimum Standards of Design, Subsection 8-0, Water Supply, City of College Station Subdivision Regulations(reference Ordinance No.1971 of August 27,1992) Draft 01/04/08 Page 25 of 27 1. For public water systems,provisions should be added to the City's standards specifying that water service by a public water supply approved by TCEQ may be permitted if the subdivider provides an executed agreement with a retail public utility demonstrating that: a. the retail public utility has or will have the ability to supply the total flow anticipated from the ultimate development and occupancy of the proposed subdivision;and b. The subdivider has paid the cost of water meters and other necessary connection equipment, membership fees, water rights acquisition costs in accordance with provisions of the City Code on water rights. 2. For non-public water systems, the subdivider should have prepared and provide a copy of a groundwater availability study and certifies long-term quantity and quality of available groundwater supplies, and a demonstration that the water meets standards for water quality required for community water systems as set forth by the State. c. To preserve the safety and traffic carrying capacity of rural roadways,which may become urban arterials in the future, adopt access management requirements for rural development that are consistent or similar to those recommended by the Texas Department of Transportation(TxDOT). The minimum spacing of property access points should be based on the posted speed limit,with greater spacing required for roads with higher posted speeds.The minimum widths of lots must then correspond to the access standards to allow adequate access for each property or development. In the example outlined in 2.a. above, a clustered development should have a single point of joint access rather than individual driveways accessing the abutting roadway. Application of these access requirements would encourage platting and likely reduce lot depth. d. The above recommended amendment pertaining to access management will help to control the number and location of access points to rural roadways but does not restrict the volume of traffic that may be generated by development relative to the capacity of the adjacent roadway. In the outlying portions of the ETJ the City should consider the use of traffic sheds, together with the increased minimum rural lot size requirements, as an important approach to ensure that traffic does not outstrip the capacity of the rural roadway. This approach controls the amount of development by the capacity of the roads in the traffic shed by dividing the capacity of the traffic shed in a peak hour by the number of acres in the traffic shed. Each landowner would then have the right to use their proportion share of the available capacity. (Note: The options available to the landowner are outlined on Page 18.) 3. Amend the Zoning Ordinance—For those portions of the future growth area that are within the City limits but not yet suitable for urban development there are advisable amendments to the zoning ordinance,as follows: a. Similar to the above recommended minimum lot size for rural development, increase the minimum lot size of the Agriculture-Open "A-O" district from five to 20 acres. A series of development options should be allowed within the district allowing smaller lots sizes and increased densities with corresponding increases in the amount of open space. For instance, development types may include farmstead, cluster, and planned options with density bonuses provided for cluster and planned development. This approach will prevent sprawling large-lot development and instead, result in development clustering thereby preserving the open, agricultural character. b. Prepare infill development standards so as to allow feasible development of vacant parcels within the developed area of the City. Undeveloped tracts within the City limits usually remain vacant for a variety of reasons, sometimes resulting from "green field" development Draft 01/04/08 Page 26 of 27 requirements or a publicly infeasible zone change.In these instances there need to be options and standards in place to allow compatible development. 4. Annexation of Areas Prone to Development- a. For the purpose of protecting the City's long-term interests regarding ETJ development, strategic community assets, and adjacent to major transportation corridors, seek first, to attain by way of voluntary petition inclusion of properties into the ETJ 38 To establish reason for such voluntary inclusion the City may consider negotiation of a non-annexation development agreement39 with those landowners that are outside of the 10-year growth area and not interested in development. A certain amount of development may be granted subject to the recommendations of 2.a.above. b. Use the City's annexation authority on an "as needed" basis to incorporate other development pressure areas. The City may annex up to 10 percent of its land area each year,with a maximum carryover up to 30 percent.To enable maximum growth control the City should seek to annex the primary growth areas (to be defined through the Comprehensive Plan), which will generally constitute a 10-year holding capacity. c. The City is obligated to provide for the extension of full municipal services (including police protection, fire protection, emergency medical services, solid waste collection with stated exceptions, and operation and maintenance of water and wastewater facilities not within the service areas of another provider; roads and streets including lighting; parks, playgrounds, and swimming pools;and other publicly owned facilities,buildings,or services.However,the level of services,infrastructure, and infrastructure maintenance is only required to be comparable to that available in other parts of the municipality with topography, land use, and population density. Therefore, it is advisable for the City to undertake a study to gauge the level of service within similar areas within the City limits to establish a legal basis as to the requirement for the provision of"full municipal services." 5. Intergovernmental Cooperation — Coordinate and cooperate with the Brazos County Health Department's pursuit of increasing the minimum required lot size for permitting septic systems from one to two acres. This will further the City's pursuit of preserving the rural, agricultural character of the outlying portions of the ETJ that are not within the horizon of the growth plan. 38 Chapter 42,Extraterritorial Jurisdiction of Municipalities,Section 42.022,Expansion of Extraterritorial Jurisdiction,provides that "The extraterritorial jurisdiction of a municipality may expand beyond the distance limitations imposed by Section 42.021 to include an area contiguous to the otherwise existing extraterritorial jurisdiction of the municipality if the owners of the area request expansion. 38 Section 212.172,Development Agreement,authorizes the City to make a written contract with an owner of land in the ETJ to, among other things, guarantee the continuation of the extraterritorial status of the land and its immunity from annexation for a period not to exceed 15 years. Draft 01/04/08 Page 27 of 27