The purpose of this Chapter is to provide a process for extension of the Payson City corporate limits through annexation. The process will allow the City Council, staff and citizens of the community to carefully consider the effect of any proposed annexation and provide a method to mitigate potential negative impacts.

It is the intent of this ordinance to conduct annexation proceedings in accordance with Utah Code and in particular Utah Code § 10-2-401 et. seq., and any other applicable federal, state, or local laws governing municipal extension. If there is any conflict between this Chapter and the provisions of the Utah Code, the provisions of the Utah Code shall dictate. When amendments are made to the Utah Code they shall cause like amendments to this Chapter. The requirements of this Chapter are supplementary and in addition to those found in the Utah Code.

For the purposes of this Chapter, the proponent, petitioner, applicant, or developer shall be defined as those persons who have signed the annexation petition in favor of annexing their real property to Payson City. Reference to the singular shall include plural when appropriate.

All annexations should be consistent with the Payson City General Plan. If the proponent of an annexation proposes an annexation that is inconsistent with the General Plan, the proponent may be required to submit an application for an amendment to the Payson City General Plan that would allow the proposed annexation to be consistent. The applicant will be required to pay all fees associated with a General Plan amendment in addition to the fees required for review of the proposed annexation.

The process for a General Plan amendment may be completed concurrently with review of the proposed annexation if the requirements for each process are completely satisfied. Public hearings on annexations and General Plan amendments shall be held separately with the General Plan amendment public hearing occurring prior to the hearing on the proposed annexation.

Consistency with the General Plan includes all elements of the plan including, but not limited to, the Land Use Element, Transportation Element, Trails Element, Open Space Element, and any other element adopted as part of the General Plan.

The proponent for annexation shall make application on a form provided by the City and pay all applicable fees prior to any review by staff, the Planning Commission or the City Council. The application shall include, at a minimum, the following information:

1. An ownership plat map from the Utah County Recorder’s Office showing all property owners in the City within five hundred (500) feet of the proposed annexation and 1/2 mile of the annexation in the unincorporated area of Utah County.
2. Signatures from the owners of real property located in the area proposed for annexation that covers a majority of the private land and is equal in value to at least one-third 1/3 of the value of all private property, as shown by the latest tax assessment rolls of Utah County, in the proposed annexation.
3. An accurate map prepared by a licensed surveyor of the area proposed for annexation suitable for recordation in the office of the Utah County Recorder.
4. Documentation for conveyance of water rights, public rights-of-way, streets, and other dedications required by this Chapter or other federal, state, or local laws or ordinances.
5. An agreement to observe and obey all applicable laws, ordinances, and resolutions recognized by Payson City.
6. The proposed zoning designation of the area to be annexed or an indication that a Specific Plan will be prepared in accordance with PCC 13.26.110 Zoning Designation or Specific Plan, herein for the area proposed to be annexed. If a specific plan has not been adopted for the annexation petition area it may be zoned A-5-H, Annexation Holding Zone and allow a specific plan to be prepared prior to or at the time of development approval.

Once an applicant has completed the application procedure in accordance with PCC 13.26.030, the petition will be reviewed by the City Council within fourteen (14) days. The fourteen (14) day notice period shall not begin until the petition has been deemed complete by the Development Services Director in accordance with PCC 13.26.030. An incomplete petition will not be presented to the City Council for review.

At the time of petition review, the City Council shall determine if a specific plan and infrastructure study should be required prior to annexation or if the studies may be delayed and completed prior to development.

After acceptance for further review by the City Council and if a specific plan is not in place for the annexation area, the Planning Commission may recommend application of the A-5-H, Annexation Holding Zone and allow a specific plan to be completed after annexation or at the time of development. The Planning Commission may also recommend the petitioner complete a specific plan for the area, prior to annexation.

If the petition for annexation is not accepted for further review, the proponent is eligible for a partial refund in accordance with the fee resolution of Payson City. Denial of a petition for annexation will have the effect of ending any further review of the proposed annexation. In order to have the land annexed into Payson City, the applicant will need to re-submit the proposed annexation as a new petition and satisfy each of the requirements of this Chapter including the payment of all review fees.

If a petitioner sells, transfers, or otherwise disposes of some or all of the property in an annexation petition, the City Council may choose to deny the annexation petition and require the new owner to submit a new petition including the payment of fees and preparation of a Specific Plan.

Annexation is a municipal legislative decision. If the City Council takes action to deny a petition for annexation, there will be no municipal appeal process.

All petitions accepted for future review shall comply with the following procedures:

1. Staff will review the petition and generate a list of items needed to complete the review of the proposed annexation. An applicant may appeal, to the City Council, the need for particular information at a regular meeting of the City Council.
2. Once staff has received all of the information requested, staff shall prepare a recommendation to present to the Planning Commission. The recommendation should be based on the requirements of this Chapter and any other information that would mitigate negative impacts of the annexation.
3. The Planning Commission shall recommend whether the proposed annexation petition is consistent with the Payson City General Plan and review the proposed zoning designation and/or Specific Plan.
4. After reviewing the information provided by staff, the Planning Commission shall forward a recommendation to approve, approve with conditions or deny the proposed annexation petition.
5. The City Council shall review the recommendation of the Planning Commission, along with the petition for annexation and any other relevant information. After a public hearing, the City Council shall determine if the petition satisfies the requirements of this Chapter and ensure that all review fees have been paid. The City Council shall also determine whether the proposed annexation petition is consistent with the Payson City General Plan and/or specific plan, if required. Following the review of the petition, the City Council shall approve the annexation petition, approve the petition based on the satisfaction of certain conditions, remand the petition back to the Planning Commission for further review, or deny the petition for annexation.

Annexations are legislative matters and the City is not required to approve any petition for annexation, regardless of location, even if the proponent of an annexation is prepared to comply with all provisions required for annexation. At any point in the approval process, the City Council may deny the petition for annexation by notifying the applicant in writing.

If a petition for annexation is denied by the City Council, the proponent of the annexation shall be required to submit a new application and pay all associated fees in order to have the petition reviewed again by the staff and the City Council.

Following acceptance of an annexation petition by the City Council, notice will be provided to all affected entities within the annexation area. The notice shall inform all entities that their property is included in a recently filed annexation petition, and shall include the date of the filing, the names of the petitioners and a description of the area proposed for annexation. The applicant shall provide pre-addressed stamped envelopes complete with the names of each property owner as shown on the latest Utah County tax assessment rolls for this notice.

The City shall provide notice in accordance with Utah Code § 10-2-406.

Courtesy notice of the public hearing shall be mailed to property owners in the City within five hundred (500) feet of the proposed annexation and those owners in the unincorporated area located within 1/2 mile of the area to be annexed. The applicant shall provide pre-addressed stamped envelopes complete with the names of each property owner as shown on the latest Utah County tax assessment rolls. The City will prepare the letter and mail the notices to each property owner.

The notice shall contain the place, time and date of the public hearing on the proposed annexation along with a general description of the area proposed to be annexed. The notice shall state that public input will be accepted at the hearing and how to contact the City to obtain additional information.

There are several annexation guidelines that applicants should be aware of prior to submission of a petition for annexation. Some of these guidelines are dictated by State statute and others are policy of Payson City. In any instance, the following guidelines shall be reviewed upon submission of each annexation petition.

1. An annexation that would create, or have the effect of creating, an unincorporated island or peninsula, as defined in State statute will not be approved.
2. Existing uses, including animal rights, agricultural uses, and other land uses may be allowed following annexation, unless the use is deemed inappropriate to the proposed zoning classification or the land use designation indicated on the specific plan.
3. The petitioner for an annexation must demonstrate how all existing dwellings in the proposed annexation will be connected to Payson City utilities and other municipal services, including solid waste removal. The City Council may require the petitioner(s) to participate financially in the provision of City services.
4. For annexations in an area where the city has not adopted a specific plan, the annexation area shall include no less than one hundred (100) acres, unless the Payson City Council determines the annexation area is critical to achieve the land use and economic development goals of the city.

There are financial factors that should be considered with each annexation. For instance, following annexation, Payson City is responsible for maintaining roadways and providing services within the annexation area. To fully understand the financial impacts of a proposed annexation, the City may require the applicant to prepare a financial analysis of the annexation for consideration by the City Council. At a minimum, the financial analysis should include:

1. An analysis of the tax consequences to residents of the area proposed for annexation, current residents of Payson City, and Utah County. The analysis shall include sufficient information to determine the fiscal impact of the proposed annexation taking into consideration City service provision.
2. Identification of the anticipated demand on City provided facilities and services for the area to be annexed. These services include, but are not limited to, drinking water, pressurized irrigation, wastewater, transportation facilities, drainage, emergency services provision, solid waste disposal, potential students and distances to public schools, and parks and recreation.
3. Information about the impact the annexation will have on the Capital Improvements Program (CIP). The information should indicate whether the proposed annexation will advance or inhibit the completion of the CIP. The proponent shall also indicate the proposed timing of capital improvements and how the services will be financed.

Each proponent of an annexation shall mitigate the water concerns prior to approval of the proposed annexation. The City Council reserves the right to evaluate any water rights proposed for transfer to the City, and refuse to accept any right, if it is determined that the quantity, quality or ability to transfer the water is in question.

1. Prior to development approval or connection to municipal services, each proponent of an annexation will be required to complete the transfer of adequate water, including changing the point of diversion for current and future use into the name of Payson City. The amount of water transferred shall be determined by zoning district and be consistent with the regulations of Title 10, Water Ordinance of the Payson City Code.
2. The City Council may waive or modify the water rights requirement, dependent upon proposed usage, for any land owned by federal, state, county, or local municipal governments.
3. Water may be used for agriculture, or any other appropriate use, upon the land being annexed if an agreement acceptable to the City Council has been reached between the proponent of an annexation and the City.
4. A petitioner for annexation is required to identify and resolve all conflict with private irrigation lines that may traverse the area proposed for annexation.

The proponent of an annexation will be required to mitigate, including payment of any fee or reimbursement, any concerns and issues brought forward by the Strawberry Electric Service District or other electric service provider. Evidence that these concerns have been addressed may be evidenced by a signed consent to serve agreement between Payson City and the Strawberry Electric Service District. The consent agreement must hold harmless Payson City from any future payment of fees or reimbursement.

All applicants seeking approval of an annexation petition will be required to satisfy the obligations of an agreement reached between Payson City and the Strawberry Electric Service District dated March 25, 1998. Any costs associated with the satisfaction of the obligations in the agreement will be the responsibility of the proponent of the proposed annexation.

Upon receipt of all information required by this Chapter and any additional information requested by the staff, Planning Commission, or City Council, staff will complete a review of the proposed annexation and render a report to the City Council. The report will include the findings of the staff concerning the accuracy of the information provided by the applicant, consistency with the General Plan and other City ordinances, and provide recommendations that would be beneficial in the formation of a decision regarding the proposed annexation. If necessary, staff will prepare an annexation agreement for review by the City Council. The City Council may request changes in the annexation agreement prior to formulating a decision regarding the proposed annexation. If a change is proposed, the applicant will be contacted in regards to the proposed changes.

The City Council may require the annexation petitioners to enter into an annexation agreement specifying the terms and conditions of the annexation. Each annexation agreement will be based on a site-specific basis and the elements of the agreement may, and probably will, differ on each annexation. Because each annexation agreement may differ, each annexation will be processed on a case-by-case basis with no precedent set by previous annexation agreements.

The items listed below are issues that may be addressed in the annexation agreement, but is not necessarily a complete list of items that may be addressed by the City Council or staff.

1. A description of the property complete with a legal description and amount of acreage that shall be depicted on a plat drawn to scale in a manner and on a medium that can be recorded in the office of the Utah County Recorder.
2. The designated zoning district and proposed project density. The City Council may require actual density to be indicated in the annexation agreement as well as proposed development layout and proposed provision of services. The circulation pattern for the area and alignment of other City services will be indicated to the approval of the City Council. However, approval of an annexation shall not be considered development approval. Following annexation approval, each applicant shall be required to complete the development approval process.
3. Indicate areas proposed for trails, open space and recreation areas. The agreement will specify ownership of these areas and proposed maintenance arrangements. If the annexation area includes an area that requires unusual fire prevention measures as an open space area, the agreement will indicate specific measures that will be taken to minimize potential fire hazard.
4. Include the documentation for conveyance of water rights, public right-of-ways streets, and other dedications required by this Chapter or other federal, state, or local laws or ordinances.
5. Based on the land use inventory, specify which existing uses will be allowed to continue after annexation.
6. Identify the responsibilities of applicant, petitioners, and property owners in providing municipal services for existing structures.
7. The City Council may impose any other appropriate requirements in the annexation agreement that will mitigate potential impacts to Payson City.
8. Ratify any outstanding obligations and coordination with other entities.

These are in no way intended to be the only items that will be reviewed at annexation and the City Council may include any conditions or requirements, which, in their judgment, are necessary or desirous prior to approving the proposed annexation.

Each annexation agreement shall be signed by the Mayor of Payson City, upon ratification by the City Council, and the proponent(s) of the annexation. By signing the annexation agreement, all parties agree to uphold the provisions of the agreement as written.

Should the proponent of an annexation default on any provisions of the agreement, the City may pursue appropriate legal action to enforce the provisions of the agreement, including revocation of the annexation and disconnection from the City.

The land use goals of Payson City may evolve over time and may require the terms of the annexation agreement to be amended or altered. Only by a majority vote of the Payson City Council may the annexation agreement be amended or altered. Prior to any amendment or alteration, the landowners within the boundaries of the annexation will be notified in writing and given an opportunity to submit written comments for consideration by the City Council.

In the event that an annexation agreement is not required, the following standards will apply to the properties included in the annexation:

1. The City Council will identify the zoning designation of the property at the time of annexation approval.
2. A specific plan, consistent with the requirements herein, shall be prepared prior to any zone change to accommodate more intense development within the annexation area. If consulting services are necessary, the property owners in the annexation area will be required to reimburse Payson City a proportionate share of the cost of the specific plan at the time each property owner develops its parcel(s).
3. Existing uses in the annexation area may continue, unless otherwise specified by the City Council at the time of annexation. Following annexation, all land uses, including the keeping of animals, must comply with the ordinances, resolutions and policies of Payson City. If a property owner can demonstrate that a use legally existed prior to annexation, the City council may, but is not obligated to, allow the use to continue as a non-conforming use until the property is further developed.
4. Animals must be kept in accordance with PCC 7, Animal Control Ordinance and the property owner is responsible to maintain the animals in a manner that does not create a nuisance as defined in the Payson Municipal Code.
5. Existing structures shall connect to municipal utility services when the utility service(s) is within three hundred (300) feet of the existing structure or when the parcel on which the structure is located is developed.

If the proposed annexation is approved by the City Council, the annexation plat and the annexation agreement shall be recorded in the office of the Utah County Recorder. Prior to recordation, the final local entity plat must be reviewed by the Utah County Surveyor. Any review and/or recording fees shall be the responsibility of the proponent of the annexation.

The proponent of an annexation shall agree to pay any and all Payson City costs related to the annexation proceedings including appeals, reimbursement, special studies, recordation, and other annexation related expenses. Because each annexation is different, the costs associated with each particular annexation may vary.

The proponent of an annexation shall pay an annexation review fee as set forth in the Payson City Fee Schedule. Annexation review fees do not include other review fees including, but not limited to, development review fees, impact fees, building permit fees, and connection fees.

Annexation of certain parcels of land located within the Payson City Annexation Policy Plan boundaries may be essential to accomplish the land use and economic development goals of the City. Payson City may initiate the annexation petition process to secure those parcels. When Payson City is the annexation sponsor, the following procedures and policies shall be incorporated in the annexation process.

1. The fees associated with processing the annexation request as defined in PCC 13.26.030 shall be waived.
2. If a specific plan has not been adopted, the area being annexed may be zoned A-5-H, Annexation Holding Zone, and allow a specific plan to be prepared prior to or at the time of development approval.
3. If the City Council deems the annexation area vital to the land use and economic development goals of the City, the minimum acreage recommendation in PCC 13.26.070 General Annexation Guidelines, may be modified or waived.
4. The City Council may modify or waive the requirement to prepare a financial analysis as described in PCC 13.26.080.

The City Council may require a specific plan for any area proposed for annexation. The zoning designation of the area may be indicated on the Zoning Map as being a specific plan and shall reference the file number of the adopted specific plan. Unless expressly indicated in the specific plan or an annexation agreement, development of the area annexed shall satisfy all requirements of the development ordinances of Payson City including, but not limited to, the Zoning Ordinance, Subdivision Ordinance, Sensitive Lands Ordinance, and the Development Guidelines of Payson City.

Following implementation of a specific plan and in order to eliminate the potential of non-conforming uses of property included in a specific plan area, the City Council may choose to require the applicant to obtain a zone change consistent with the requirements of PCC 13.06.080. The zone change will indicate the underlying zoning of each parcel included in the Specific Plan.

If the City Council requires the preparation of a specific plan, the plan will need to include, at a minimum, the following information:

1. The condition of existing infrastructure including water lines, sewer lines, power lines, roadway improvements, roadway surface condition, drainage facilities and other infrastructure providing municipal type services to the area proposed for annexation. The report should include information about the ownership of the facilities and the proposed future ownership and maintenance.
2. An infrastructure analysis indicating the ability of Payson City to provide municipal services to the area included in the Specific Plan or the upgrades to the infrastructure systems of Payson City necessary to provide municipal services.
3. Anticipated use of the property in the Specific Plan including the primary use, connection to trails, parks and public spaces, churches and schools, government facilities, open space, land use transition areas and other land use considerations.
4. A complete geotechnical report when deemed appropriate due to potential seismic activity, landslide potential, floodplain or risk of flooding, steep slopes, high water table, wetland areas, poor soil structure or other geologic hazard.
5. If a land use study and/or infrastructure analysis has been completed for the annexation area and paid for by Payson City, the petitioner shall reimburse the City the proportionate share of the cost of the study. The proportionate share will be determined by the total acres of the study area and the total acres of the annexation petition.