Commissioners direct staff to continue negotiating possible transfer of Munger sewer line; no purchase approved

The Teton County Board of County Commissioners on June 16 directed staff to continue negotiating a potential transfer agreement with the Teton County School District (TCSD) for the Munger sewer line but did not approve any purchase or reimbursement amount. County staff and the school district described the sewer line as a roughly 4‑mile wastewater conveyance installed when Munger Mountain Elementary was built; the district increased pipe diameter at construction from 4 to 6 inches to allow additional capacity beyond the school's needs.

Chris Peltz, Teton County Water Resources coordinator, said the current draft transfer agreement contemplates a cash payment to the district, a waiver of county connection fees and assignment of system assets, easements and agreements to Teton County. He told commissioners staff had begun limited due diligence and had opened discussions with Town of Jackson engineering about capacity and connection approvals. Director Reynolds (Teton County School District) and Superintendent Chapman participated in the meeting to answer questions.

Commissioners raised three principal issues: the draft reimbursement amount the school district put forward (described in the meeting as "about $300,000" to "$355,000" in various remarks), the county's willingness to accept future operational costs and the need to resolve terms with the Town of Jackson about treatment plant capacity and connection fees.

Commissioner Gardner said he supports continued negotiations but stated he would not accept a six‑figure reimbursement on the current timeline and budget; several other commissioners likewise expressed reluctance to pay the amount cited by the district. Commissioner Cromwell (Carlman) and Commissioner Probst argued the sewer line and its long‑term costs are properly a county responsibility and that the county should assume future operating obligations rather than leaving them with the school district.

Board members asked staff for a tiered approach to due diligence: a targeted technical and financial analysis sufficient to inform a transfer decision (cost estimates, likely connection fees, short‑term operating cost such as the current contractor operation cost estimated in the meeting at about $85,000 per year) without requiring an exhaustive, high‑cost study. Commissioners discussed using SPET or other public funding to subsidize certain hookups for public purposes (for example, school‑district housing or deed‑restricted housing) and suggested a possible fee waiver with a sunset provision for qualifying connections.

County Attorney Stout and staff advised that some aspects of the town/county connection discussion require a party to the connection and use agreement and that the county's ability to negotiate certain details with the Town of Jackson would be clearer if the county were the system owner. The easement route includes an existing Melody Ranch Investments utility easement that staff said needs review. Commissioners asked staff to pursue negotiations with the school district and to return with options that include costed due diligence scopes and recommended negotiation parameters.

No formal transfer motion or payment was approved at this meeting. The board's direction was to continue negotiation and return with specific due diligence options and proposed negotiation parameters.