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Item 3.
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| City Council Regular | |
| Date: | 12/15/2025 |
| Title: | Public Hearing and W.O. 24-34 Jellison Road Water Main Extension - Water Service Agreement for Meadowlark Mobile Home Park |
| Presented by: | Debi Meling |
| Department: | Public Works |
| Presentation: | Yes |
| Legal Review: | Yes |
| Project Number: | N/A |
RECOMMENDATION
After holding a public hearing, staff recommends that City Council grant a waiver to BMCC sections 26-203 and 26-204, to provide water service to Meadowlark mobile home court without annexation, contingent upon executing a water service agreement with Meadowlark Billings, LLC.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
A public hearing is required prior to the City providing water service to an area located outside of the City limits as per City Code (BMCC) Section 26-206. City Council will conduct a public hearing and consider granting a waiver of annexation requirements of Sections 26-203 and 26-204 to provide water service to Meadowlark mobile home court. This action is contingent upon executing a waiver of right to protest annexation and executing a water service agreement with Meadowlark that will be provided at a subsequent Council meeting for approval.
The Meadowlark manufactured home court is located on Jellison Road, generally north of the City landfill and west of Blue Creek Road. The court consists of about 220 manufactured homes, currently served by the City sewer system and a privately owned and operated public water supply system utilizing multiple groundwater wells. The City of Billings allowed a sewer connection for the manufactured home court to the City system without annexation in 2016. The Meadowlark water system has challenges with drinking water and has poor aesthetics, including odors and discolored water. Meadowlark water system personnel have been working with the Montana Department of Environmental Quality (DEQ) and the City of Billings to address water quality concerns.
The discoloration and odors in the drinking water indicate high levels of iron and manganese. The Meadowlark Mobile Home Park has a water treatment plant that was placed into service in either 2009 or 2010. The water treatment plant was designed specifically for iron and manganese removal. For several years, the treatment plant reduced the iron and manganese levels in the water system to tolerable and acceptable levels. However, the effectiveness of the plant has diminished. With it, the manganese in the water exceeds EPA’s secondary maximum contaminant level (SMCL), and residents’ complaints about the water quality have increased. Additionally, manganese is one of the substances on the Environmental Protection Agency’s (EPA) list of emerging contaminants.
The owners of the Meadowlark Mobile Home Park have decided that the most affordable, long-term solution is to secure funding through the Montana Department of Environmental Quality (MTDEQ) Emerging Contaminant Grant and connect to the City of Billings’ water distribution system. Funding has been obtained through DEQ in order to construct the water main and pay the City water system development fee. The overall cost of the project is estimated at $2,364,253. The City is simply acting as the grant recipient in order to complete the project, as required by DEQ funding requirements. Through the agreement with DEQ, the City will be reimbursed by the DEQ grant for the cost of the project. In order for Meadowlark Mobile Home Park to connect to the City of Billings water distribution system, several agreements must be executed.
Similar to the waiver granted when sewer service was provided to the court in 2016, Council is asked to grant a waiver for service without annexation. Sections 26-203 and 26-204 are generally annexation requirements. Section 26-207 in City ordinance allows a waiver from the requirements of BMCC sections 26-203 and 26-204, "if in their discretion there exists unique or exceptional circumstances that convince them that such requirements within these two sections are unnecessary or impractical." One reason for waiving the annexation requirement is that the property cannot meet the proximity requirements (the property is not contiguous to the boundary of the service area) and another reason is to protect public health and safety by providing water service, given the water quality circumstances at the court. Further, adding this area that is already served by the Yellowstone County Sheriff and the Blue Creek Fire District would add to the demand for City police and fire services in an isolated, remote area. As required by Section 26-207, a waiver of right to protest annexation will be completed by Meadowlark (attached). The public hearing was advertised in the Yellowstone County News on November 21, November 28, December 5, and December 12, 2025.
In order to provide water service to the manufactured home park, there are four agreements and Council actions. These four agreements will be considered at a future council meeting:
A) Agreement between the City and Meadowlark to provide water service without annexation inclusive of the attached "waiver of right to protest annexation."
B) Memorandum of understanding (MOU) between the City and Meadowlark Capital, LLC. for a consecutive water system and water metering system
C) Agreement between the City and DEQ to provide grant funding for the project
D) Agreement between the City and Performance Engineering for engineering services to design and perform construction contract administration for the water main extension
Staff requests Council hold a public hearing and consider waiving annexation requirements to provide Meadowlark mobile home park with water service, contingent on executing the water service agreement at a future council meeting.
The Meadowlark manufactured home court is located on Jellison Road, generally north of the City landfill and west of Blue Creek Road. The court consists of about 220 manufactured homes, currently served by the City sewer system and a privately owned and operated public water supply system utilizing multiple groundwater wells. The City of Billings allowed a sewer connection for the manufactured home court to the City system without annexation in 2016. The Meadowlark water system has challenges with drinking water and has poor aesthetics, including odors and discolored water. Meadowlark water system personnel have been working with the Montana Department of Environmental Quality (DEQ) and the City of Billings to address water quality concerns.
The discoloration and odors in the drinking water indicate high levels of iron and manganese. The Meadowlark Mobile Home Park has a water treatment plant that was placed into service in either 2009 or 2010. The water treatment plant was designed specifically for iron and manganese removal. For several years, the treatment plant reduced the iron and manganese levels in the water system to tolerable and acceptable levels. However, the effectiveness of the plant has diminished. With it, the manganese in the water exceeds EPA’s secondary maximum contaminant level (SMCL), and residents’ complaints about the water quality have increased. Additionally, manganese is one of the substances on the Environmental Protection Agency’s (EPA) list of emerging contaminants.
The owners of the Meadowlark Mobile Home Park have decided that the most affordable, long-term solution is to secure funding through the Montana Department of Environmental Quality (MTDEQ) Emerging Contaminant Grant and connect to the City of Billings’ water distribution system. Funding has been obtained through DEQ in order to construct the water main and pay the City water system development fee. The overall cost of the project is estimated at $2,364,253. The City is simply acting as the grant recipient in order to complete the project, as required by DEQ funding requirements. Through the agreement with DEQ, the City will be reimbursed by the DEQ grant for the cost of the project. In order for Meadowlark Mobile Home Park to connect to the City of Billings water distribution system, several agreements must be executed.
Similar to the waiver granted when sewer service was provided to the court in 2016, Council is asked to grant a waiver for service without annexation. Sections 26-203 and 26-204 are generally annexation requirements. Section 26-207 in City ordinance allows a waiver from the requirements of BMCC sections 26-203 and 26-204, "if in their discretion there exists unique or exceptional circumstances that convince them that such requirements within these two sections are unnecessary or impractical." One reason for waiving the annexation requirement is that the property cannot meet the proximity requirements (the property is not contiguous to the boundary of the service area) and another reason is to protect public health and safety by providing water service, given the water quality circumstances at the court. Further, adding this area that is already served by the Yellowstone County Sheriff and the Blue Creek Fire District would add to the demand for City police and fire services in an isolated, remote area. As required by Section 26-207, a waiver of right to protest annexation will be completed by Meadowlark (attached). The public hearing was advertised in the Yellowstone County News on November 21, November 28, December 5, and December 12, 2025.
In order to provide water service to the manufactured home park, there are four agreements and Council actions. These four agreements will be considered at a future council meeting:
A) Agreement between the City and Meadowlark to provide water service without annexation inclusive of the attached "waiver of right to protest annexation."
B) Memorandum of understanding (MOU) between the City and Meadowlark Capital, LLC. for a consecutive water system and water metering system
C) Agreement between the City and DEQ to provide grant funding for the project
D) Agreement between the City and Performance Engineering for engineering services to design and perform construction contract administration for the water main extension
Staff requests Council hold a public hearing and consider waiving annexation requirements to provide Meadowlark mobile home park with water service, contingent on executing the water service agreement at a future council meeting.
ALTERNATIVES
City Council may:
- Grant a waiver to BMCC sections 26-203 and 26-204 for annexation requirements to provide water service contingent on a water service agreement or,
- Not approve the waiver of annexation requirements. If the waiver of annexation requirements is not approved, Meadowlark Mobile Home Park will continue to have water quality challenges, will not be provided City water service for its residents, and will have to solve the challenge another way in the County.
- Not approve the waiver of annexation requirements, and require annexation to provide water service.
FISCAL EFFECTS
There is no significant financial impact to the City to waive the annexation requirements and provide water service to Meadowlark Mobile Home Park. The City will pay the construction costs for extending the water main and will be reimbursed by DEQ for these costs by agreement, including staff time. In addition, DEQ grant funds will pay the City water system development fee. Meadowlark will pay the monthly water fees at the rates established by Council, which include the metered volume charges and the fixed monthly water charges for customers outside the City. In summary, the City will be reimbursed for its costs to construct the project and Meadowlark will pay for the cost of monthly water service. Alternatively, requiring annexation would increase calls for service for both the Police Department and the Fire Department which would likely cost more than the City would receive in additional tax revenue. Information related to these costs will be presented at the meeting.