Public Works engaged AE2S Nexus to calculate an appropriate System Development Fee (SDF) for ExxonMobill Corporation to pay prior to connection to the City's wastewater system.  SDFs are one-time fees that are assessed on new connections and are necessary to provide adequate funding for growth related capital improvements. 

MCA 7-6-1604 requires governmental entities to have an advisory committee to review calculating, assessing, and spending of system development fees.  The Public Works Board and Public Works staff is currently serving in the capacity of the SDF advisory committee.  The committee met in April 2018 to review the preliminary SDF for ExxonMobil Corporation and reviewed the final SDF results in September 2018 and unanimously supports the recommendation being made to City Council.  The attached resolution specifies the proposed SDF calculated for ExxonMobil Corporation.

The City Council must hold a public hearing and then may:

• approve the resolution
• not approve the resolution.  If Council does not approve the resolution, an amended resolution will need to be considered at a future City Council meeting in order to meet the terms of the Pretreatment Service Agreement between the City of Billings and ExxonMobil Corporation approved by Council in December 2016.

The proposed System Development fee will generate a one-time revenue of $3,562,806 for the wastewater fund to be use for growth related capital projects.

Staff recommends that the City Council conduct a public hearing and approve the proposed resolution adopting the System Development Fee for ExxonMobil Corporation.