Council approves Lockwood Water & Sewer amendment to serve proposed truck-wash; requires waiver of protest

The Billings City Council voted to approve an amendment to the Lockwood Water & Sewer District service area so a roughly 8.5-acre island parcel near the I-90 Johnson Lane interchange may receive water and sewer service from Lockwood. Staff recommended approval of Amendment 2 and asked the council to require a waiver of the property owner’s right to protest future annexation.

Lewis Singles, the city’s water quality superintendent, reviewed the 2008 wastewater-treatment agreement with Lockwood and a 2021 amendment adding the TED (Targeted Economic Development) area, explaining that Lockwood is a separate district that owns its pipes and pays the city for treatment. Singles said staff’s recommendation was the conservative approach: approve the amendment and require the property owner to waive protest rights to protect future city options.

Mike Aristia, manager for Lockwood Water & Sewer District, told the council the district would provide both water and sewer within the capacity the district already pays for and that the parcel’s omission from prior boundaries appeared to be an oversight.

Craig Dalton, agent for the property owner, and Don Boos, director of real estate for Blue Beacon (the proposed operator), described the parcel as an island within the Lockwood boundary and urged approval. Blue Beacon said the site would be its first Montana location, require multimillion-dollar investment and would employ roughly 60 people; the company said it would not wash animal or chemical tanker interiors and that wash water would be routed to sanitary sewer.

Public commenters raised concerns about fairness—county properties receiving city-supported treatment without city tax revenues—and environmental risks tied to truck-wash wastewater and treatment capacity for potentially higher-strength discharges. Council members discussed surcharges: Lockwood pays reserve-capacity fees to the city (original area surcharge ~6%, TED area surcharge ~18%) and pays for treatment and capacity under the wholesale agreement.

Councilmember Boyette moved to approve the amendment as recommended by staff, including waiving BMCC sections 26-203 and 26-204 and requiring a waiver of right to protest annexation; the motion passed. Mayor Nelson announced one nay (Doctor Nicholson) and one recusal (Councilmember Aspen Leiter) during the voice vote.

Next steps: The district and property owner will complete any required documentation (including the waiver of right to protest annexation) and Lockwood will provide service consistent with the existing treatment agreement and capacity payments.