Teton County commissioners on Jan. 13 instructed staff to continue negotiating with the Teton County School District to explore transfer of the Munger Mountain sewer line to county ownership, and asked for further technical, financial and policy analysis before any final agreement.

The request followed a workshop in which county staff, school district leaders and engineering contractors described the line — built alongside Munger Mountain Elementary School in 2018 and upsized during school construction — and discussed questions about future connections, costs and governance. "Munger Mountain Elementary School was built in 2018, to alleviate a capacity issue of our in town elementary schools," Gillian Chapman, superintendent of Teton County School District No. 1, told the commission. Chapman said the state funded the initial sewer work and the district chose to upsize the line "for the benefit of the community." She added the district does not consider sewer ownership part of its core responsibilities and would like a different entity to manage the asset.

Why it matters: Commissioners said county ownership could better align the sewer asset with water-quality goals and make it easier to incentivize connections for failing septic systems in low-lying areas along the line. Commissioners also flagged long-range consequences: ownership could influence development pressure and zoning choices in the South Park Loop / Hog Island area, potentially changing the scale and type of future growth.

Key facts and numbers discussed
- The county voucher meeting record shows the commission directed staff to continue negotiations rather than approve a final transfer that day. No binding sale or transfer was executed at the Jan. 13 meeting.
- The town of Jackson revised its wastewater capacity fee to about $5,345 for a three‑bedroom house; the school district’s internal hookup fee was stated as $6,600 per equivalent residential unit (ERU) in the workshop. County staff noted earlier materials had an outdated $2,172 figure.
- The school district reported initial upsizing costs of roughly $324,000 and said its current operations run at a deficit; the system as configured and with the existing pump station will handle about 233 ERUs, while the six‑inch line’s hydraulic capacity could serve roughly 400–500 ERUs if pump capacity were increased.
- Staff identified a wide range of possible future capital needs — roughly $1 million to $4 million — depending on upgrades such as pump station expansions or rehabilitation of sections of the line.
- Typical private connection costs vary: bringing a service from a house to a main may run $5,000–$10,000 on the low end and $20,000–$30,000 on the high end; replacement septic systems were discussed in the range of $60,000–$80,000.

What commissioners asked staff to do
Commissioners asked staff to:
- Continue negotiations with the school district to draft a possible transfer agreement and return with a negotiated contract for future consideration. The board indicated it did not need to delay beginning negotiations to complete all technical work.
- Ask the Water Quality Advisory Board to take up a techno‑economic analysis and to advise on governance options, including an enterprise fund model, a county‑run utility model (similar to Adams Canyon), or formation of an improvement service district (ISD) in the future.
- Explore the possibility of a service‑area agreement with the Town of Jackson that would define permitting, connection rules and how town capacity fees would be handled if the county owned the line.
- Evaluate options for incentivizing connections for existing homes (including the Evans trailer park) and for identifying thresholds or timelines for when capital upgrades would be needed.

Staff recommendations and next steps
County water resources staff and public works recommended retaining outside professional services to complete a rate and feasibility study that would clarify long‑term capital needs, operational costs and whether an enterprise fund is feasible at different build‑out scenarios. Chris Peltz, the county’s water resources coordinator, told commissioners that work should include: a) an updated capacity and operations analysis, b) a financial model showing short‑ and long‑term subsidy needs and potential cost‑recovery mechanisms, and c) legal review of easements (including Melody Ranch Investments and the Scenic Preserve Trust) and town connection requirements.

School district perspective
Gillian Chapman, superintendent, said the district upsized the sewer line because it anticipated broader community benefit but does not see ongoing sewer management as core to the school district’s mission. Chapman said the district has received inquiries from landowners seeking hookups and that district staff spend significant time on line operations and billing; the district would need board approval on any change in policy about waiving fees for future district uses.

Concerns and caveats raised
Commissioners and staff repeatedly emphasized three interrelated points: (1) ownership is only the first step — decisions about extensions, fees and permits implicate the town and local zoning; (2) county ownership could create pressure for development along the line, so the commission needs a planning framework for the Hog Island / South Park Loop area; and (3) many financial outcomes depend on how many ERUs ultimately connect, so analyses should show both current deficits and projected performance at several build‑out scenarios.

Quote
"I think we want to move forward with this effort," Commissioner Carlman said during the workshop. "I want us to take ownership of it." Commissioner Gardiner (first reference: Commissioner Gardiner) voiced a similar view and urged staff to proceed without delaying necessary negotiations.

What was not decided
No final agreement to transfer the sewer line was signed on Jan. 13. Commissioners directed staff to continue negotiations and to return with more detailed analyses and a proposed contract for formal action at a future meeting.

What to watch for next
Staff will summarize the workshop for the commission by email, pursue contract negotiations with the school district if directed, and seek outside consultants to complete the techno‑economic analysis. Commissioners asked staff to coordinate with the Water Quality Advisory Board and the Town of Jackson and to report back with a negotiated agreement and recommended financing/governance options.

Ending
County staff said they will circulate a summary of the meeting, continue discussions with the school district and the town, and return to the commission with a negotiated agreement and supporting analyses for future action.