The Clancy Water & Sewer District board is leaning toward an easement agreement for its new well site while the county attorney reviews protective language for water infrastructure built on private property.
The board faces two options: negotiate a permanent easement with property owner Steve Marks or purchase the property outright. At the Feb. 25 meeting, board members weighed residents’ need for water against concerns about what might happen to its planned wells and treatment facility if the district were to dissolve or the easement face legal challenges.
Envisioning a future scenario, district board member Bob Johnson outlined the group’s key concern. “We’ve got these beautiful wells, we’ve got the treatment facility and the sheds and the fencing and all that other stuff,” he said. “Something happens, that can’t fall back on the property owner because those were made and done with public funds.”
The discussion came as Great West Engineering, the firm hired by the district, prepares to submit plans and specifications for well construction to the Montana Department of Environmental Quality this week, with construction bids potentially going out within the next month.
The firm has been working to finalize an easement that would give the district permanent access to the well site without owning the land. The alternative – purchasing the property – would give the district full ownership but come with significant hurdles.
Collette Anderson, project manager at Great West, emphasized that entering the easement wouldn’t prevent the district from purchasing the property later. But she warned that switching to pursue a purchase now would significantly delay the project and likely cause the district to lose remaining American Rescue Plan Act (ARPA) funding, which must be spent by June 30.
“If we don’t move forward with the easement, and you want to pursue the property for purchase, that’s going to take much longer,” said Anderson. “We’ll probably lose the rest of that ARPA money, so we won’t be able to get this up to bid and construct it.”
A purchase would also require subdivision review by DEQ if the district breaks off a parcel from Marks’ larger property, a process Anderson said would take considerable time. Board member Bill Hammer raised the possibility of pursuing both tracks simultaneously: executing an easement while also getting a property appraisal.
“I’d love to know what the dollar price of that approximate acre is,” Hammer said. “If we owned it, it would make you sleep a lot better at night.”
But when Hammer asked whether the board should get an appraisal, Johnson pushed back.
“I don’t know if that’s what we want to spend the money on at this point in time,” Johnson said. “Let’s say, 18 months down the road, we now have the ability to move forward with the project – that appraisal won’t be any good.”
Anderson added that permanent easements are common practice for similar water projects across Montana. She cited the Central Montana Regional Water Authority, which uses permanent easements for its wells in central Montana. The city of Three Forks recently completed well projects, with one well on a permanent lease agreement and another on property the city owns.
Anderson noted that funding agencies are unlikely to pay more than an appraisal value, which could complicate negotiations if Marks believes the property is worth more.
The board ultimately decided to delay its easement vote until after Jefferson County Attorney Steve Haddon reviews the protective language.
“I think having that legal mind just take a look at it, make sure it’s good, is a good idea,” Anderson said.
The easement includes provisions for Marks to connect up to 10 future residential lots to the water system without paying impact fees, though those connections would pay the same rates as other district users. Marks has waived any annual lease payment in exchange for the future connections.
Johnson said he supports that arrangement. “More users would be a benefit to the people within the district who are paying a very high price,” Johnson said.
The board’s next meeting is scheduled for March 25.
