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Billings staff present Lockwood service‑area amendment; council directs formal application and annexation waiver be returned
Summary
City staff outlined a proposed amendment to include an 8.5‑acre parcel in the Lockwood Water & Sewer District. Council asked staff to bring a written application and a service agreement including a waiver of the right to protest annexation for formal consideration next week.
City staff presented background and legal context for a proposed Amendment 2 to the Lockwood Water & Sewer District service area, asking the council to consider adding a contiguous 8.5‑acre commercial parcel between previously amended areas.
Louis Singles, the city’s Water Quality Superintendent, said the city has treated Lockwood wastewater under a 2008 agreement (amended in 2021 to add the Lockwood Targeted Economic Development District) and that the contract is both flow‑limited and concentration‑limited. “We accept their wastewater and treat it before returning it to the Yellowstone,” Singles said, and noted the existing flow cap and other contract terms.
Staff described the city code requirements that apply to service‑area enlargements — citing sections 26‑203 and 26‑204 (contiguity and annexation or attempted annexation) and 26‑207 (allowing a council waiver after public hearing but requiring a waiver of right to protest annexation). During questions, staff said Lockwood currently pays roughly $500,000 annually under the contract and that the rate calculation includes a 15% rate of return plus a 6% surcharge; an 18% surcharge applies for the TED area if it builds out.
Council members debated whether to require a waiver of right to protest annexation for this parcel, noting past practice sometimes omitted waivers. Legal staff advised that section 26‑207’s waiver requirement appears to be mandatory based on language added in 2016 and cautioned that inconsistent practice can pose legal risks.
Rather than decide tonight, council signaled consensus that staff should bring a formal written application and a draft service agreement that includes a waiver of the right to protest annexation back to council for decision next week.
Next steps: staff will prepare an application, schedule the required public hearing and return with a proposed resolution and service agreement so the council can decide whether to approve the enlargement and any waivers.
