Teton County commissioners on Jan. 13 heard a workshop presentation on the potential transfer of ownership of the Munger Mountain sewer line from Teton County School District No. 1 and directed staff to continue negotiations while seeking further technical and financial analysis.

The discussion centered on whether county ownership could improve water-quality outcomes and make it easier to connect existing properties on failing septic systems in the South Park Loop/Munger Mountain area. Chris Peltz, Teton County water resources coordinator, framed the options for the board: maintain the status quo, negotiate a direct transfer with the school district, or consider broader policy implications of county ownership and future connections.

Peltz said the board could focus initially on a narrow agreement with the school district and the town of Jackson and defer broader policy questions to the Water Quality Advisory Board. "There may be several things that we could do. The status quo would be nothing. One option would be for you to give us direction to engage with contract negotiations," he said.

Gillian Chapman, superintendent of Teton County School District No. 1, described why the district built and upsized the line during construction of Munger Mountain Elementary School in 2018 and why the district now wants to transfer ownership. "We upsized thinking that it would eventually become an ISD. That never happened...it is definitely not something that I learned about when I was in superintendent school and it's really just an asset that should not be part of the school district," Chapman said.

County and district staff reported several immediate facts relevant to negotiations: the Town of Jackson revised its wastewater capacity fee to $5,345 for a three-bedroom house; the school district charges a separate connection fee of $6,600 per equivalent residential unit (ERU) to tie onto its privately operated line; the initial upsizing cost reported was $324,000; and the district currently operates the line at a deficit. Matt Ostic of Rendezvous Engineering said the existing pump station can handle about 233 ERUs but the six-inch main has theoretical capacity for roughly 400–500 ERUs if pump capacity is increased.

Commissioners and staff discussed specific policy and financial steps they want before finalizing any transfer. Several commissioners urged prompt action to address public-health risks from failing septic systems, such as those serving Evans Mobile Home Park, while also flagging the risk that a sewer line can induce future development. Commissioner Carlman summarized the immediate preference: "I hope we transfer, we take ownership of the sewer line. That's the light switch question, yes or no. The answer is yes for me."

Board members asked staff to pursue the following steps and analyses before concluding a final agreement: retain consultants to perform a rate study and techno-economic analysis; task the Water Quality Advisory Board to review planning, capacity and funding scenarios (including consideration of an enterprise fund); explore a negotiated service-area agreement with the Town of Jackson so the town would pre-approve service for a defined area and the county could pay capacity fees up front; identify potential capital needs (estimates in staff materials ranged from $1 million to $4 million); and clarify easement and notification requirements related to Melody Ranch Investments and the Teton County Scenic Preserve Trust. Several commissioners also asked staff to quantify what county subsidies would be required under multiple growth and hookup scenarios.

School district leaders reiterated that the district would likely ask its board of trustees to approve specific terms, and that the district has historically expected that future district-related connections would not be charged a hookup fee unless negotiated otherwise. Town of Jackson Public Works Director Florent Palacio cautioned that even if the county owned the line, town capacity fees and permitting requirements would still apply, though the town could be part of a service-area agreement.

The board did not approve transfer paperwork on Jan. 13. Instead, commissioners gave staff direction to continue contract negotiations with the school district and the town, to retain outside professional services for financial and operational studies, and to involve the Water Quality Advisory Board in policy-level work. Heather Overholser, Teton County director of public works, told the board the county could operate the line under existing conditions while staff negotiated and performed further analyses, and that any usage and connection fees would be topics for negotiation.

Commissioners emphasized a dual goal: move with sufficient speed to address imminent public-health needs while building a technical and policy foundation that guides how future connections and potential development are managed in the Hog Island/South Park Loop area. Next steps identified by staff include returning with a negotiated agreement and more detailed cost and governance analyses.