SARATOGA SPRINGS -- The town and its major development have resolved their long-held disagreement over who should provide water to residents.

The Town Council unanimously passed an agreement Tuesday resolving the dispute.Saratoga Springs Development Co. owns a private water company, Lake Mountain Mutual Water Co., which is now providing the town's water. Town officials have been concerned that the development's private water company is the sole provider and could control accessibility to water and new development.

Tim Taylor, attorney for Saratoga Springs Development, said part of the agreement calls for the water company to turn over all of the infrastructure such as pipes and valves but to retain the wells and well capacity. That would make the city responsible for operating and maintaining the water system.

The transfer should happen March 1.

The issue surfaced last summer, said city Administrator William Way, when the town realized it had a responsibility to provide water so residents in all areas are treated fairly. Last summer, it passed an ordinance establishing its own water company and requiring all new development to be connected to a town waterline, which at the time did not exist.

In response to the ordinance, Saratoga Springs circulated a petition among residents to force a special election where they could vote to prevent the town from acquiring a water system.

Taylor said the town refused to hold an election. In October, the private water company filed a lawsuit in 4th District Court challenging the city's ability to require all new developments to connect to the city water company.

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Now the town has received the necessary state approvals to drill wells and construct waterlines and storage facilities and has put out to bid some parts of the project, Way said. That part of the water system will serve the southern part of town, along the western shore of Utah Lake.

Once the agreement is finalized, another 4,000 units of development can begin, Way said.

The agreement also sets up a water rate board.

Taylor said after the meeting that he will immediately file a motion to dismiss the lawsuit.

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