REGULAR MEETING OF THE BOARD OF COUNTY COMMISSIONERS
Tuesday June 30, 2026
PRESENT: Commissioner Morse, Chair; Commissioners Waters and White; Board Clerk Teri Reitz; Clerk and Recorder Jeff Martin.
PLEDGE: MOMENT OF SILENCE, Held.
9:00 a.m. BID OPENING – Bid Opening for Janitorial Services – The Bid Due Date has been Extended to July 6, 2026.
9:00 a.m. ZONE CHANGE PUBLIC HEARINGS – A.) Return Item – County Zone Change 736 – 5415 Rustic Ave. – RR3 to RR1 – A Zone Change Request from Rural Residential 3 (RR3) to Rural Residential 1 (RR1). Ms. Karen Husman, Zoning Coordinator stated Zone change 736 is a return item. Basically, staff went back to confirm that the application was for a one-acre portion of the parcel to RR1, and the remaining property will be remaining as RR3 Zoning Commission recommended approval. Commissioner Morse opened the Public Hearing. Hearing no comments Commissioner Morse closed the Public Hearing. Commissioner Waters made a MOTION to approve Zone Change 736 with the 11 criteria, Commissioner White seconded. Passed Unanimous. B.) Return Item – County Zone Change 735 – 1232 Johnson Ln – A to I2 – A zone Change request from Agriculture (A) to Heavy Industrial (I2). Ms. Karen Husman, Zoning Coordinator stated that change 735 is a request to change property in Lockwood from agricultural to heavy industrial, and this is a return item for the property shown in blue there, currently agricultural, you asked us to come back with some more information about the traffic. So, I'm just going to go through those quickly.
How many trips per day exist on the current BNSF line? An average of between 25 and 32. Approximate amount of time each of the main line trips close Johnson Lane, currently about 2 to 5 minutes on the main line.
How many more trips could BNSF run currently on the main line? There's nothing in place that would restrict them from adding trips or the time frame that they're blocking Johnson Lane.
Does the railroad have maximum amount of time that they can close the road? It's generally not more than 10 minutes.
How many trips per day exist on the proposed new par spur? Currently operating assumptions, they anticipate about two to four train deliveries and departures per month. The rail spur that crosses Johnson Lane is only the entrance to the unloading facility, so the physical act of unloading would not block Johnson Lane.
Approximate amount of time each trip on the spur will close Johnson Lane. The estimate maximum is 10 minutes, which we've already covered. There may be other delays that cause them to cross the line longer, but those are rare and specific situations. Based on the current operating assumptions, the proposed spur would add a maximum of approximately 40 to 80 minutes of crossing occupancy per month.
Approximate amount of time each trip on the spur will close Johnson Lane, about .2% increase in the time about 80 minutes per month, additional.
How many vehicle trips per day exist on Johnson Lane? According to annual average daily traffic count from 2024, about 399 vehicles at the Johnson Lane crossing.
Does MDT have any concern regarding queuing associated with the spur? MDT would be having internal discussions regarding the impact of the spur, so there's an ongoing investigation on their part. You've been provided with a letter from MDT confirming that they have been looking at the emergency access and they've indicated they're working to reestablish that connection.
How
many vehicle trips per day will Par add to Johnson Lane with the new facility?
The project will create 6 to 12 new jobs, so the employees would be traveling
approximately 12 to 24 trips per day. The final route for the employees has not
been determined. They may use Johnson Lane, and they may use their alternate
route through the refinery facility, as well as the working trucks, about 12
trips per day from 6 to 8 months out of the year. Also, that route could be
utilized through their existing oil refinery. The Zoning Commission has
recommended approval. Commissioner Morse opened the Public Hearing. Mr.
Chris Clyde a representative from PC Land Holdings stated that they own
properties at 1355 and 1347 Johnson Lane. We appreciate that Par Montana has
engaged constructively with us over the last 30 days through this extension. The
dialogue has been genuine and productive, and good steps have been made to
address the egress and emergency access issues related to this zone change as
it affects Johnson Lane and the rail crossing. However, due to the short time
frame, we've been unable to come to a firm agreement on how those issues will
be mitigated. These are public safety matters and need to be resolved before
the rezone is approved. We're asking for a continuance of an additional 30
days, it would give PAR and us space to finalize binding commitments on egress,
emergency access, and the rail spur crossing design so that then the county can
approve the rezone with certainty that public safety is protected and that
business access to the heavy industrial area is properly managed. A 30-day
continuance protects the county's interest and allows us to get a resolution
that works for all parties. Mr. Dan Gold, Chief Commercial Officer at Weave
Industries stated that they are headquartered at 2348 North Frontage Road in Lockwood,
but we own, lease, and conduct trucking, construction, mining, and farming
operations on multiple parcels of land on Johnson Lane. We would like to go on
record that Par has made efforts to evaluate the feasibility and construction
of secondary access for the Johnson Lane corridor north of their proposed rail
spur crossing. We have engaged in multiple discussions with Par to identify the
terms under which secondary access would be constructed but have not reached an
agreement at this time. We remain committed to working toward an acceptable
solution and ask that Par, the county, the other stakeholders do the same. We
also ask that the county monitors progress of the negotiations and considers
the status of the secondary access when future approvals are required for the
project. Mr. Kevin McGovern of MC Property Holdings stated he owned some land
down off Johnson Lane and then off Colson Road as well. In accordance with Dan,
we have met with Par and talked about it. As we know the heavy controlled
industrial requires two accesses to be provided as you guys are aware. I just
submitted my application to sit on the TEDD Advisory Committee Board, and known
that the TEDD has been underway for some time, it seems like the TEDD is not
really a discussion item at this point, which I think it should be as it
relates to utilities, the investment that was just installed underneath the
interstate and how it's going carry forward to serve the TEDD and Lockwood.
Knowing that there's going to be construction on that road, there’s not much
engineering thought or discussion has been put forth on how those utilities may
be affected based on this road construction. I really think that that should be
a requirement because the county has invested a lot of time and money. That
should really be a part of this review. In line with PCL, I do think
additional time is required because this moving at a great rate of speed. I
got an MOU from FAR last Monday and it just, there's a lot of things that need
to occur for those things to be finalized. So, with that, I just want to go on
record to share those comments with you, as you consider this zone change. I
do think it is appropriate to delay or extend this. Mr. Jeff Dusche, Par,
Montana. At the last hearing, you guys motioned to extend this decision out
for 30 days around criteria number six. We appreciate that direction and used
the past month to respond and work with both the county and our neighbors on
criteria 6 and the concerns that they had mentioned. We provided additional
information, including rail operations, anticipated rail movements, traffic
volumes on Johnson Lane and the expected traffic volumes with the project. We
also engaged Triple Tree Engineering to evaluate a potential extension of
Johnson Lane to the Billings bypass. That work includes surveying preliminary
roadway alignment and evaluation of permitting necessary to complete that. We used
that data to go work with our neighbors, as they mentioned, to develop a draft
memorandum of understanding that establishes a framework for continued
collaboration together and outlines Par's proposal to construct Johnson Lane extension.
As mentioned, you know, while the MOU is not finalized, I think the discussions
have been constructive and represent meaningful progress towards addressing
concerns raised during this process. We appreciate the board's willingness to
allow additional time across the past 30 days to evaluate the issues. During
the time we strengthened the transportation record, advanced engineering of
potential long-term solutions, and worked collaboratively with neighbors. The
property remains surrounded by existing industrial uses is consistent with the
Lockwood Growth Policy. The planning staff has supplemented the record with
the transportation information I'd mentioned, and we reviewed.
And approval of this zoning request is really the first step into a $100
million private investment in Yellowstone County that creates jobs, progresses
economic development, and expands the county's tax base. For these reasons, we
respectfully request your approval for this zone change 735. Ms. Kimberly
Bailey, Big Sky Economic Development, just wanted to state that let's refocus
the intent here, which is a conformity of land use between 2 heavy industrial
zoned areas and an agricultural parcel in between those areas. So, the request
is conforming to the overall land use in that jurisdictional area. We respect
and really embrace all the industrial use along that Johnson Lane corridor.
Those are good economic vitality measures. And the TEDD was mentioned, which is
something as administrative board that we oversee as well. And we've had some
good dialogue with that committee on this topic. So, today's request is really
the allowance of land use for Par to continue with its mining permits and BNSF
operational allowances, which is a long process to continue with. And we feel
through that long process and duration, we can come to a conclusion approach on
the Johnson Lane improvements. And then as well as planning has specified on
your behalf is that MDOT is looking to evoke and reestablish that egress pass as
well on that corridor. So, I think the fundamentals are there to get us to
where we need to be to have a harmonious operational industrial district
corridor, but it is still going to be a long process in that continuing
negotiation efforts. And we just wanted to give you that commentary.
Commissioner Morse asked Ms. Vickers, that our action today, is either must
approve or deny the zone change, it cannot be extended according to law,
correct? Ms. Vickers stated that she had a conversation with legal and my
understanding is that because we've already used the postponement that we must
approve or deny the application at this point. Hearing no other comments
Commissioner Morse closed the Public Hearing. Commissioner Waters made a MOTION
to approve Zone Change 735 – 1232 Johnson Lane with the 11 criteria,
Commissioner White seconded. Passed Unanimous.
PUBLIC COMMENT ON REGULAR, CONSENT AND FILED AGENDA ITEMS – Hearing no comment Commissioner Morse continued the Board Meeting.
PLANNING DEPARTMENT – Resolution of Intent 26-81 to Adopt West End Neighborhood Plan – Setting the Public Hearing for Tuesday, July 14, 2026, at 9:00 a.m. in Room 309 of the John V. Ostlund Building. Commissioner Waters made a MOTION to approve Resolution 26-81, Commissioner White seconded. Passed Unanimous.
CLAIMS – Batches 26-170, 26-171, 26-172, 26-173, 26-174, 26-175, 26-176, 26-177, 26-178 and 26-179. Commissioner White made a MOTION to approve the Claims, Commissioner Waters seconded. Passed Unanimous.
CONSENT AGENDA – 1. COMMISSIONERS – A.) Term End Thank You Letters – Randall Robison, Huntley Project Fire Service Area Board. B.) Board Reappointments – Monica Plecker & Douglas Clerk to Planning & Zoning Commissioner. C.) Collective Bargaining Agreement between Yellowstone County and Teamsters Representing the Detention Facility. D.) Revised FY27 Salary Increase for Non-Union Employees. 2. COUNTY ATTORNEY – A.) Prosecutorial Assistance in State v. NDL. B.) NILE Lease Extension. 3. FINANCE – A.) Resolution 26-65 to Cancel Old Checks 8 Years and Older. B.) 2027 Victims of Crime Act (VOCA) Award Letter and Special Conditions. C.) MOU between BBWA & Yellowstone County for the 2026 DNRC RRG Grant Project. D.) Resolution #26-80 Waiving the Convenience Fees for Online Card Transactions Only. E.) Resolution 26-72 for a Large Taxpayer Reserve Fund pursuant to SB117. F.) 2026 DNRC RRG Project Submission Extension Request Letter. G.) MOU with Big Sky Economic Development to Allocate Funding. H.) Facilities Contract – Star Service, Inc. – YCDF Water Heater. 4. PUBLIC WORKS – A.) Change Order #2 – Askin Construction, Lockwood Sidewalks. B.) Notice of Award & Contract – Envirotech Services, LLC, 2026 Dust Suppressant. C.) Corrected MOU – City of Billings, Traffic Signals at Central Avenue & 48th Street West. 5. SHERIFF – A.) MOU for School Resource Officer Program during the 2026-2027 School Year. B.) Vehicle Title for Auction. 6. SUPERINTENDENT OF SCHOOLS – FY27 Contract with Matthew Henry. 7. HUMAN RESOURCES – PERSONNEL ACTION REPORTS – IT- 1 Termination.
FILE ITEMS – 1. AUDITOR – Payroll Audit June 1 to June 15, 2026. 2. CLERK AND RECORDER – Laurel Outlook’s Sworn Statement of Circulation. 3. COMMISSIONERS – Board Minutes – County Water District of Billings Heights. 4. HUMAN RESOURCES – June 1 – June 15 Payroll Audit. Commissioner Waters made a MOTION to approve the Consent Agenda and place the File Items to file, Commissioner White seconded. Passed Unanimous.
PUBLIC COMMENTS ON COUNTY BUSINESS – Hearing no comments Commissioner Morse adjourned the meeting at 9:19 a.m.
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