This is a discussion item and does not require council action at this time. 

The Lockwood Water and Sewer District (LWSD) is seeking to amend the agreed-upon wastewater service area to provide service to a commercial property that is directly adjacent to the existing service area. This change in wastewater service area requires City Council approval because the City provides wastewater treatment for the LWSD.   

Since 2008, the City has had an agreement with the Lockwood Water and Sewer District (LWSD) to discharge to the City's wastewater treatment plant. In 2020, the City approved the first amendment to the agreement to expand wastewater services to the Lockwood Targeted Economic Development District (TEDD). A single parcel of 8.46 acres lies between the original approved service area and the TEDD service area which was approved in 2020. The parcel is therefore surrounded by the approved LWSD service area but not included in this service area. The owner of this parcel is seeking to include their property in the LWSD service area. The agreement has a provision that LWSD cannot expand its service area without the consent of the City. A second amendment to the LWSD has been proposed to include this parcel. 

The Billings, Montana City Code (BMCC), Section 26-203, requires that the property at the time of application for sanitary sewer service be contiguous to the boundary of the service area, entirely within the Red area on the Limits of Annexation Map, and entirely within the City's facilities planning area. This section also requires that the applicant complete the annexation requirements outlined in BMCC, Section 26-204. These requirements include annexation or attempt at annexation in order to obtain water or sewer service to a property, although a "waiver of right to protest annexation" may be accepted in lieu of annexation at the City's discretion. However, per BMCC, Section 26-207, City Council can waive the requirements of BMCC, Sections 26-203 and 26-204 by a simple majority vote after holding a public hearing. The City Council is being asked to consider waiving the requirements of BMCC, Sections 26-203 and 26-204 regarding petitions for service and annexation, and approving the amendment to the agreement between LWSD and the City.

The addition of the 8.46 AC parcel is expected to create a small increase to wastewater revenue funds. At this time, the wastewater volume is unknown but will contribute to the overall revenue generated by the LWSD Agreement.

City Council may, at a future regular business meeting:

• Grant a waiver to BMCC, Sections 26-203 and 26-204 to provide sanitary sewer service to the aforementioned property without annexation and approve the amendment to the agreement with LWSD contingent on the Lockwood Water and Sewer District Board approving the expansion and amendment to the agreement; or
• Not approve the waiver or the amendment. If not approved, the City and LWSD would not be able to provide sanitary service to the aforementioned property.