TROY – As tensions between the city of Troy and Public Water Supply District 2 (PWSD) rise, one ongoing financial matter does not seem to be helping.

An $8,000 dispute over two sewer taps for Oasis and Bridge of Hope remains unresolved one year later and leaves more questions than answers about whether or not the amount is valid.

On Nov. 20, 2023, Troy Alderman voted 3-2 in a closed session meeting to “allow Public Water Supply District #2 to purchase two sewer connections for Oasis Resource Center and Bridge of Hope.”

According to the closed minutes provided to the Lincoln County Journal by PWSD 2, Alderman Rachel Dunard and Harold Horner voted against the sale and Kay Diekemper (recently resigned), Gary Liefert, and Steven Jones voted in favor of it. While there is no cost noted in the document, there is a short redacted portion of the minutes following the vote. It is unknown if the blacked out contents pertains to the $4,000 for each tap for Oasis and Bridge of Hope totaling $8,000 or not.

In order to understand the complications of this matter, it is important to note three contacts exist between the two entities. Due to its agreements with the city, PWSD 2 maintains all fees are covered and paid and therefore is not obligated to pay the $8,000.

The original contract from 2001 allows for the water district to “construct sewer lines for 125 existing houses” with additional 35 hookups totaling 160 taps. Two years later, in 2003, the Board of Alderman approved 56 more taps. Then in November 2004, a supplemental contract was signed between the two entities which “ratified the prior two sewer contracts and expressly continued them.” Also, there was a provision to the paragraph authorizing the additional 35 residential hookups and commercial hookups, stating ‘any structures utilized by governmental entities or places of worship shall not be subject to such restrictions.’” While there seems to be no disagreement about the original contract, there does seem to be contention with agreements two and three. The water district is contending that either agreements two or three are valid and apply to the Oasis and Bridge of Hope taps.

According to PWSD, Bridge of Hope, located on county-owned land, and Oasis Resource Center’s connections are covered by the government exemption or the 56 taps allocated in the second contract, making them exempt from connection fees.

However, Troy Mayor Ron Sconce says the second and third agreement with the 56 additional taps is not applicable because it focused on a specific area for development that never came to fruition.

“Our position is that particular development never took place,” Sconce said. “These taps were specific to that area. We don’t even know where the area was exactly but it talks about the developments to be built within the district. It never took place and they’re looking at it now saying, ‘oh, yeah, that’s supposed to be additional taps.’ We don’t see it that way.”

Further, of the 2003 contract, Sconce says, “the district shall have constructed at the expense of a third party, a sewer truck line connecting the city. The only reason someone would bear the cost of constructing a sewer main is if that main would provide service to their project.”

In addition, he notes the 2004 supplemental

agreement applies to the original 2001 contract and “since the district has used all the allotted sewer taps and has been requesting additional taps for the last 10 to 12 years, I don’t think any reference could be made to sewer connections granted by the city in November of 2023.”

In a Nov. 21, 2023 email, the city’s attorney notified the water district of the approval of the two water taps and the $8,000 fee. That same day, the lawyer for PWSD 2 responded in an email noting the update and the need for a “proposed contract.”

Last month, the water district’s attorney sent a letter to the city stating there was nothing in the November 2023 minutes permitting a connection fee to be paid and that present agreements do not call for one since the connections “are to the district’s system not the city system.” Adding “as you know Missouri law requires agreements between the city and the district to be in writing.”

“We did not receive a contract or any kind of statement that was approved by the board requesting $8,000,” said David Lenk, PWSD 2 board president. “Our attorney asked for proof that is what the board approved and we have not got that.”

Sconce says the amount owed to the city is based on an ordinance that charges $4,000 per tap sewer right to connect fee.

“They approved selling a tap. That’s the price. They don’t set a price. It’s by ordinance. It’s the law,” he said.

But Lenk says the city and the water district have always had contracts. Additionally, if the city is issuing two more taps, he said there should be “a mutually signed contract.”

“The district was never required to pay for the 160 taps and the agreement for the 56 taps never mentioned a tap fee or ordinance requiring a fee,” he said. “The district builds and maintains our own lines. However, our board would consider tap fees in the third amended supplemental contract for sewer service during negotiations. To our knowledge the third supplemental contract was never presented to the board of alderman for consideration by the mayor.”