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Hayden council backs HARSB cost-allocation change despite warning of long-running dispute
Summary
Hayden City Council voted to accept the Hayden Area Regional Sewer Board’s proposed cost-allocation option (referred to as option 2), a change staff said would raise the city's share by about $11,012.20 per year. Council members discussed the long-running dispute and the risk of budgetary consequences if the board refuses to approve a budget.
The Hayden City Council on Sept. 23 directed the city’s representative to the Hayden Area Regional Sewer Board (HARSB) to accept the district’s preferred cost-allocation option 2, even as several council members described the wider dispute with the district as prolonged and costly.
The council was responding to a memo from the sewer district’s attorney that identified three possible options for allocating operation and maintenance costs under the board’s Joint Powers Agreement (JPA). Staff said option 2 is the district’s preferred approach and, while the city’s earlier preference had been a different option, staff recommended acquiescing to avoid further budget disruption.
Why it matters: Staff told council the change would increase Hayden’s annual payment by approximately $11,012.20 (about $900 per month). Council members emphasized that while the amount is not large in isolation, the underlying dispute has generated legal and administrative costs over an extended period and carries the risk that a single board member could block budget approval.
Council discussion and staff warnings
Council members said the district’s insistence on option 2 has been part of repeated, difficult negotiations. A council member said the district has at times “held us hostage” by threatening to withhold a unanimous budget approval; staff described potential consequences including mediation, litigation and significant legal expense. Staff said Hayden’s recently enacted distribution-rate changes would enable the city to absorb the option-2 increase for the near term but that the city might need to recover the added cost in future budgets.
The council voted unanimously to instruct its HARSB representative to support option 2, and staff indicated they would continue to pursue broader resolution options, including mediation or legal remedies if necessary.
