Who is paying for this?

Saratoga Town Council, developer discuss payment of tap fees

As Saratoga sees substantial development for the first time in many years, the Town of Saratoga and the Saratoga-Carbon County Impact Joint Powers Board (SCCIJPB) appear to be in disagreement on the subject of tap fees in relation to subdivision development.

During the June 15 meeting of the Saratoga Town Council, Kristen Stocks, co-owner of Octagon Construction, appeared before the governing body to provide updates on Octagon Estates, a subdivision being developed south of Shively Airfield.

“I think, while you’re here, we might as well talk about what came up at the joint powers board and just have that discussion now,” said Councilmember Jon Nelson. “Basically, there was a request for a clarification. Essentially, the clarification was raised concerning tap fees.”

Nelson, who serves as the council representative on the SCCIJPB, said the joint powers board had recommended the Town of Saratoga waive any tap fees for Octagon Construction in relation to their subdivision. Director of Public Works Jon Winter, however, countered Nelson and said the joint powers board did not vote to waive the tap fees. Another recommendation from the SCCIJPB was for the governing body to review and rewrite the municipal code regarding tap fees.

Under section 13.16.010(D) of the Saratoga Municipal Code it reads “The aforesaid fees shall be collected in advance before a permit is issued to tap or make any connection with the water mains of the town. The town may implement, repeal or amend this section at any time, but only once during each calendar year.”

Additionally, section 13.40.020(B) reads “Such fees shall be collected in advance before a permit is issued to tap or make any connections with sewer mains of the town.”

“So I had the impression that when a subdivision is put in, that part of the fees that are collected when the taps are made to each of the lots … that they’re collected when the taps are installed,” said Nelson. “It’s no secret I lost that vote. The majority of the joint powers board disagreed and has essentially recommended the town council rewrite the code.”

Currently, section 13.16.010 of the town code dictates a charge of $3,500 per three-quarter inch water supply line if town employees do the work or $2,500 if a property owner hires a contractor under the surveillance of a town employee. A charge of $2,500 per sewer tap is dictated by 13.40.020. With approximately 35 lots, Nelson estimated a fee of $175,000 for Octagon Construction to tap into both the water and sewer mains.

Those mains, however, have not yet been turned over to the Town of Saratoga and are still owned by Octagon Construction. According to Stocks, there was never a request from her company to waive tap fees. Instead, it was a question as to if the developer could install the water and sewer taps prior to turning the mains over to the Town.

“If we don’t do the taps now, then we have to cut the road every single place we need a tap to go under the road to make sure we get to both sides. So, it’s kind of a Catch-22 that we don’t want to put in just the main and then pave it and then all of a sudden this thing goes into development and you cut this freshly paved road every time there’s a connection,” said Stocks. “On the flipside, let’s say we spend whatever we’re spending on this subdivision, I don’t want to spend another $175,000 on the off-chance that I’m not going to recoup the cost I already have in it plus that. If the economy crashes tomorrow, I’m out a good bit of money. I don’t want to have an extra $175,000 sitting out there.”

In addition to the initial tap fees that could be charged per lot, another consideration was the monthly fee charged for both water and sewer. As discussion continued, the concern was raised by members of the council of past subdivisions which had tapped into the system but had not paid a tap fee.

“I had a long talk with Jon (Winter) on these tap fees and stuff and the Town has multiple areas where we can’t find a record of the tap fee being paid and that needs to stop and it should have stopped a long time ago,” said Councilmember Ron Hutchins. “It’s not just the tap fee the Town would be missing out on, it would be that monthly fee. If you don’t pay for the tap, we can’t bill you the fee.”

Stocks responded to Hutchins by stating Octagon Construction had no intention of turning on any of the taps until the lots had been developed and a house had been built.

Nelson, citing the Wyoming Rural Water Association, said both the Town and the SCCIJPB had an obligation to ensure a water source for users of the system. He added both the tap fees and the monthly charge were intended for the day-to-day maintenance of and upgrades to the system.

“When you add more lots and more users and more taps, we’re obligated to go out and invest. Whether that’s more storage, a sixth well, perhaps a seventh well. All of those things that are important to ensure that the system is sized properly and can adequately handle the demand,” said Nelson. “If we don’t collect fees when the time comes to collect them, then the cost to go put in additional wells or additional storage tanks falls on all the other users of the system even though the system got expanded and maybe the appropriate fees weren’t collected at that time.”

Stocks, again, said the discussion wasn’t about avoiding the tap fees but rather if the physical work could be done by her company with the Town charging the individual property owner when the lots sold.

“Right now, as it stands, we can put these lines in with no taps and still turn it over to the Town at the end of the day. Now, when these individual houses do go to connect it means that the newest paved road in town is going to be cut every single time there’s a connection because that’s our option,” Stocks said. “What we’re requesting is we’ll put in the physical portion of the tap but the actual tap fee itself will be borne by the homeowner when the lot is sold.”

Under section 17.28.100 of the Saratoga Municipal Code, developers of subdivisions are required to make improvements to the subdivision and this includes the water supply and sewer disposal. According to town code, while the developer is required to connect with both the water and sewer system and provide lines throughout the subdivision, there does not appear to be a charge to do so.

As discussion went back and forth between Stocks and the council, Winter weighed in on the matter. According to the public works director, there was a value to Octagon Construction making the taps prior to handing over ownership of the water and sewer mains to the Town of Saratoga. Winter said by having those taps already placed, it would save time his staff could spend on other projects.

The only formal action taken by the council was to table the discussion until either the next town council meeting or until a workshop could be held between the council and the SSCIJPB.

The next meeting of the Saratoga Town Council will be at 6 p.m. on July 6 at the Saratoga Town Hall.

 

Reader Comments(0)