Herriman - Hi-Country Estates II

HerrimanMemoNovember 23, 2010To: Brett Wood, City ManagerCC: Heather Upshaw, Bryn McCarty, Justun Edwards, Mark JensenFrom: Gordon M. Haight II, Community Development Director/City EngineerDate: November 23,2010Re: High Country Estates Phase II Annexation ReviewAttached is the City response to the questions Tom Chace raised with the City regardingannexation to the City of Herriman. The City's current annexation declaration includes HighCountry I and II. The general purpose for most property owners to annex into a City is totake advantage of development opportunities. This appears to be the reason that Tom hassubmitted the annexation petition to the City. The questions that Tom raised were to explorethe City's policies regarding development and how development opportunities for theproperty owners in High Country Estates II could be enhanced over what is currently beingoffered by Salt Lake County. The requests focus on two main issues: InfrastructureDeficiencies and Hill Side Zoning restrictions. The property owners in High Country EstatesII have made it clear that they will not accept any changes to their land use plan (i.e. no morethan one home on 2.5 acres). With this requirement in mind I will address the two mainissues.Infrastructure DeficienciesProperty owners who own undeveloped lots in High Country Estates II have not been able todevelop their property due to the lack of inadequate utilities and public infrastructure. Of theessential infrastructure that is needed, there have been two studies to determine feasibilityand cost. The first study that was completed was for a sewer system. The study includedproperties in High Country Estates I and II to distribute the cost. The study concluded thatthe total infrastructure cost would be around $14,000,000. A water study was also createdwhich included a price for only High Country Estates II of about $7,000,000. Roads andstorm drain systems would also need to be considered as essential infrastructure; howeverno studies have been completed on either system.

The cost of just the water and the sewer makes any future development unfeasible with apossible build out of 500 homes. It has been proposed that the property tax collected fromHigh Country Estates II and the Home Owners Association fees could be used to offsetthese costs. In considering these funding sources, it is clear that there will never be enoughfunds to provide just for the water and sewer even if all the funds were to be used for capitalimprovements. When streets and storm drain systems are considered there is no feasibleway to fund the infrastructure deficiencies by the available funds.Hill Side Zoning RequirementsSalt Lake County currently has hill side zoning requirements that have and will continue torestrict many of the lots in High Country Estates II from being buildable. The City has somehill side zoning requirements that would likely place the same restrictions on propertyowners. Also, the City is currently in its final draft of a comprehensive hill side ordinancewhich, while more flexible then Salt Lake County's hill side ordinance, will likely continuewith the same building restrictions.ConclusionWhile the City anticipates annexing High Country Estate II, the City does not see anyadvantage for the undeveloped properties that exists in High Country Estates II at this time.If the existing annexation were to proceed, it is my belief that the property owners would nothave any greater opportunity to develop their lots then they currently have in the county.

1. HCEII would deed the water rights and roads to Herriman. In return, Herriman wouldtake over and complete all infrastructure within a reasonable time frame (three to fiveyears)—sewer, paved roads, natural gas line, and an adequate water system (completedto same standard to all HCEII properties). The yearly Hi Country assessments wouldcontinue until infrastructure is complete (time limit) and be used to contribute to fundsfor necessary infrastructure. Herriman would need to honor pre-paid water connectioncontracts that some property owners have with HCEII. Herriman would cap the waterconnection fee for new connections and not charge additional impact fees for water.Monthly water fees would be comparable with the rest of Herriman City. Herrimanwould also be able to collect past due association fees.HCEII would deed the water rights and roads to Herriman. In return, Herriman wouldtake over and complete all infrastructure within a reasonable time frame (three to fiveyears)—sewer, paved roads, natural gas line, and an adequate water system (completedto same standard to all HCEII properties)The water right that the city is contracted to purchase from HCEII is valued atapproximately 1.8 million. The infrastructure that would be needed to allow futuredevelopment is significantly more than this and the city would not be willing to take overresponsibility or own any of the HCEII infrastructure until it was brought up to Cityminimum standards or a financial mechanism was in place to assure all projects could becompleted.The yearly Hi Country assessments would continue until infrastructure is complete(time limit) and be used to contribute to funds for necessary infrastructure.The yearly assessment could be a mechanism to help cover the cost of infrastructure,however, the current assessment rate would be far too low for the upgrades necessary tomeet City minimum standards.Herriman would need to honor pre-paid water connection contracts that some propertyowners have with HCEII.Herriman will not commit to honor the contracts without knowing the conditions of thecontracts. The Psomas HCEII water master plan indicated that approximately $7 millionis needed for the build out of an additional 500 units. The value of the water shares thatthe City is purchasing could cover $3.8 million of that cost. If all undeveloped lotswere to be built, the water impact fee would likely exceed $10,000 per connection.

Herriman would cap the water connection fee for new connections and not chargeadditional impact fees for water.Herriman would conduct an Impact Fee analysis to determine the connection and impactfees that would be charged to new connections. The fees would need to pay forapproximately $7 million in new and upgraded water infrastructure. This cost would bethe burden of all existing and future home owners and developers.Monthly water fees would be comparable with the rest of Herriman City.Herriman would conduct a water rate analysis to determine the needed revenue forthe increased pumping cost due to the high elevation of HCE II water tanks, and theincreased maintenance cost of the deteriorating infrastructure and upgrades neededto bring the system to current DDW standards and regulations.2. Annexation into Herriman would remove the Salt Lake County's Foothills andCanyons Overlay Zone. Herriman would grandfather special zoning over HCEH toallow development of all property as originally planned, rural residential. In 1973 theentire subdivision was planned as residential building lots and should be able to becompleted as planned without the current FCOZ type restrictions or Forest Recreation2.5. The zoning would maintain the lot size at 2.5 acres. If there is clustering, all lostwould be divided by 2.5 acres to determine the number of homes possible in a cluster.Annexation into Herriman would remove the Salt Lake County's Foothills andCanyons Overlay Zone. Herriman would grandfather special zoning over HCEH toallow development of all property as originally planned, rural residential,Herriman City would annex the property with the same zoning they have in the county,which would likely be Forestry Recreation 2.5 (FR-2.5). The City does not have aFoothills and Canyons Overlay Zone, but is in the process of adopting a Hillside Overlayzone, which would apply to Hi Country if it were annexed.The zoning would maintain the lot size at 2.5 acres. If there is clustering, all lotswould be divided by 2.5 acres to determine the number of homes possible in a cluster.The City would maintain a density of one unit per 2.5 acres. If the property owners wishto work together to develop their properties, then homes could be clustered at a maximumdensity of one unit per 2.5 acres. This would potentially create much smaller buildinglots, while allowing more open space to remain on the unbuildable areas.3. There would be no ridgeline restrictions, or restrictions on house site slope, road slope,cuts across slopes and driveway slopes as long as they are property engineered.The current ridgeline restrictions found in the FR-2.5 zone would apply, as well as anyrestrictions in the new Hillside Overlay zone. The City does not allow homes to be built on

slopes greater than 30%. The City has adopted engineering standards which would apply toall driveways and right-of-ways.4. Driveways would be able to access seven houses. Driveways can be narrower road - 12feet wide with reasonable spaced turnouts and "Y" turns for fire trucks subject toapproval by the fire departmentDriveways would be able to access seven houses.The current Herriman City ordinance only allows 1 home on a driveway. Exceptionscould be made on a case by case basis, but in no case would more than 2 or 3 homes beallowed to access off of one driveway. Driveways cannot be excessively long and homesshould be in relative proximity to a public or private road.Driveways can be narrower road — 12 feet wide with reasonable spaced turnouts and"Y" turns for fire trucks subject to approval by the fire department,Driveways are required to be 20 feet wide and provide adequate fire turnarounds asrequired by the adopted City standards.5. There should be variances for setbacks and frontages because of the hilly terrains,unusual topography and layout of original lots. Exceptions regarding setbacks,frontage, and other unanticipated development problems or situations will not bearbitrarily or unreasonably denied.The FR-2.5 zone has no specific building setbacks, because of the unique nature of thetopography and climatic conditions of the areas in the forestry recreation zones. The side,rear and front yard requirements will be approved on an individual basis by the PlanningCommission,6. Herriman would guarantee there would be enough water for all properties when HCEIIis fully developed. The water connection fee and monthly water cost would be at thesame rate as the rest of Herriman City.Herriman would supply the water needed for build-out of HCEII. Please see #1 for theanswers regarding water fees.7. Herriman would not have arbitrary or unreasonable restrictions on the agricultural useof the land, storage of agricultural equipment, recreation vehicles, motor homes,trailers, and boats, etc.Agriculture is a permitted use in the FR-2.5 zone and all storage in relation to an agriculturaluse would be allowed. Storage of recreation vehicles, boats, etc, would have to meet theCity's adopted nuisance ordinance.

8. Property owners should have the ability to remain in greenbelt per countyrequirements...5 acres if not developed, 5.25 if built on.The City has no jurisdiction over greenbelt qualifications. This remains under therequirements of the County Assessor.9. A property owner would have the right to cut, clear, grade, etc, on their own propertywithout a permit. A property owner would have the right to landscape without apermit.Property cannot be clear cut or graded without first obtaining a grading permit from theHerriraan City Building department. The FR zone also requires Planning Commission reviewfor the removal of any vegetation. A property owner can landscape without a permit,however retaining structures over 4 feet high need a building permit.10. There would be no permit required for working on an existing structure or adding toan existing structure as long as it doesn't exceed 15 percent of the original permittedstructure area and meets Uniform Building Code.All work on existing and new structures will require a building permit.11. There would be no minimum or maximum size of structure. You should be able to havea vacation home size. There would be only one residence on a lot, but you should beable to have as many other structures on the property as you need, such as barns, sheds,stable, guest house, etc.There would be no minimum or maximum size of structure. You should be able to havea vacation home size.The City does not have any minimum or maximum home size requirements, as long asthe home meets all required setbacks and building code requirements. There are,however, adopted single family dwelling standards regarding such things as roof pitch,building materials, and minimum width of a dwelling.There would be only one residence on a lot, but you should be able to have as manyother structures on the property as you need, such as barns, sheds, stable, guest house,etc.Only one single family dwelling is allowed per lot. Bams and stables would be allowedas part of an agricultural use. Guest houses are not a permitted or conditional use in theFR-2.5 zone.12. The cost of living by annexing into Herriman (Herriman property tax and Herrimanfee) will not exceed the current Salt Lake County Tax, fees, and the HOA yearlyassessments.

The current County fees and taxes will have no bearing on what the City determines are theappropriate fees are taxes for Herriman residents.13. Voting on issues that affect the Hi Country property owners will be voted on by usingthe voting unit system grandfathered in HCEII for 37 years. Herriman will respect theHCEII Protective Covenants.The City will not interfere in the HOA or the established voting system. The existingcovenants can remain in effect so long as they do not violate Herriman City ordinances. TheCity does not enforce HOA covenants.In looking at the Cost to bring the HCEII development up to City standards to allow any futurebuilding permits, the costs appear to be prohibitive. Studies have been done on the water andsewer improvements. These two items alone total approximately $21 million. With an estimatedbuild out of 500 additional homes to cover the sewer and water infrastructure it should beanticipated that each new home would contribute $42,000 before a building permit is issued.This does not include the roads or any other upgraded infrastructure. If all 500 units don't buildout, this cost per unit could go much higher.In our meeting there were references to funding from grants and other state or federalorganizations. It appears that until any other additional funds are found, all future development inHCEII, either in the county or in Herriman, is severely limited.There has also been considerable discussion regarding the political structure of the HCEII HOA.The City will not get involved in this discussion but is willing to make agreements with whoeveris determined to be the legal authority for the HCEII HOA. Before any work on this issue can goforward, it would be advisable to have these issues resolved, so that the city can negotiate withthose in authority. While we recognize that you have submitted the annexation petition, the citydoesn't recognize you as the authority to negotiate on behalf of the HCEII HOA.