Work resumes for Octagon

Following discussion between Octagon Construction and the Saratoga Town Council during their June 15 meeting, the question remained as to who should pay water and sewer connection fees; the developer of a subdivision or the individual lot owner.

A two-and-a-half hour workshop between the governing body and the Saratoga-Carbon County Impact Joint Powers Board (SCCIJPB) on June 23 and a special council meeting on June 25 appeared to have answered that question … for now.

As was reported previously (see “Who is paying for this?” on page 1 of the June 23 Saratoga Sun), Councilmember Jon Nelson reported to the council the SCCIJPB had voted to waive tap fees for Octagon Estates, a subdivision currently under development by Octagon Construction. As discussion took place in the council meeting,  however, it became apparent the issue was not of waiving connection fees but a need to clarify who pays and when.

The council ultimately decided to table the discussion until they were able to hold a workshop with the joint powers board. They didn’t have to wait long, however, as SCCIJPB Chairman Richard Raymer and Mayor Creed James called for a workshop on June 23. Despite the hastily called workshop between the joint powers board and the governing body, an audience of contractors and residents were in attendance.

Raymer, citing Nelson’s report to the town council on June 15, informed the Saratoga Town Council the SCCIJPB had not voted to waive tap fees. While Nelson had made a motion that connection fees were to be collected upfront, it ultimately failed. Reading from draft minutes of the joint powers board, Raymer referenced a motion by Joe Parsons that tap fees were collected at the time the building permit was pulled. That motion had, according to the minutes, passed unanimously.

Throughout the workshop, the governing body cited two sections from the Saratoga Municipal Code as their reasoning for collecting connection fees up front.

Section 13.16.010(D) 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”.

Further, Section 13.40.020(B) dictates “such fees shall be collected in advance before a permit is issued to tap or make any connections with sewer mains of the town”. Craig Kopasz, a member of the SCCIJPB and engineer through Engineering Associates for Octagon Estates, argued the definition of permit under Section 13.16.010(D) was unclear.

While Title 13 does not have a section for definitions, section 13.04.060(B) reads “Any person desiring water from the town waterworks must first make a written application to the director of public works, through the town clerk, stating fully the use for which the water is wanted and the name of the licensed plumber selected to do the work. The application must be signed by the owner of the premises. A permit for the performance of the work described in the application and no other work may be issued to the applicant and the licensed plumber”.

The joint powers board, for their part, cited Section 18.09.020(D)(4) as their basis for who should pay for the connection fees. That portion of the municipal code reads “Prior to the building permit being issued, the water and sewer tap fees and the fee for the water meter must be purchased for all new home/commercial building construction.”

As the two boards continued to discuss the different sections of town code, Bo and Kristen Stocks, owners of Octagon Construction, also weighed in. With other contractors wondering what the final decision would be from the governing body, Bo Stocks stated several times he would abandon the project if made to pay tap fees midway through the process. The Stocks added that, upon arriving in Saratoga and beginning to develop Octagon Estates, they had consulted with other contractors in the area as to when connection fees were paid and by whom. The Vista Dawn subdivision, which was recently purchased by Triple D Construction following the bankruptcy of the former developer, and the Saratoga Inn Overlook were given as examples.

It was this precedent, in fact, the SCCIJPB cited by Parson when making his motion which was unanimously approved.

Another point, raised by SCCIJPB member Roger Cox, was the connections being made by Octagon Construction were to a main which had not yet been turned over to or accepted by the Town of Saratoga. As such, the mains were still owned and maintained by the Stocks. 

With the last meeting of the council being on June 15 and the next one not until July 6, the Stocks told members of the Saratoga Town Council they were anticipating a decision sooner rather than later. Due to the length of time work had already been stalled on the Octagon Estates project, James set a special meeting for June 25.

During the special meeting, Nelson made the motion that Section 18.09.020(D)(4) superseded the two sections cited by the council during the June 23 workshop until a new ordinance was passed and recodified the tap fee language. 

Councilmember Ron Hutchins, citing the constitutionality clause in Section 1.01.100 of the Saratoga Municipal Code, stated he did not believe the codes were in conflict with each other, calling it “a stretch”.

The motion passed unanimously.