The region's nonprofit trade association for members of the building industry is challenging the legality of Hayden's sewage cap fees.

It's more a fact finding mission than an attack, said Larry Jeffres, executive director of the North Idaho Building Contractors Association.

"That was the main issue in discussions all along, the process in which the fees were issued and implemented," Jeffres said. "That's what we want to know."

Representatives of the organization met with the group's attorney and Hayden city officials on Monday, to discuss how the fees were developed and how they are being used.

The city has agreed to present specific numbers about the fee's implementation, Jeffres added, which the group's lawyer will review.

"I think that was a very positive move on behalf of the city of Hayden," Jeffres said. "The willingness for them to do their homework and for us to do ours gives a great sense of encouragement."

NIBCA is not planning to file a lawsuit against the city, he emphasized.

"The intent of both sides, I believe, is to better understand the process in which fees are developed and implemented," he said. "We think and believe that future discussions will lead to a resolution."

Some builders and contractors have voiced concerns about Hayden's $8,795 sewer cap fee, which they say requires them to raise the price of new homes to make up for the cost.

Coeur d'Alene's sewer cap fee is $2,788. Post Falls cap fee is $5,693.

City Administrator Stephen Chatwin has defended the fee, justifying that it's necessary to accommodate the needs of the city's water treatment facility.

The city will work with NIBCA in reviewing the ins and outs of the cap fee, Chatwin said Monday.

"I appreciate their concerns," Chatwin said. "We'll look at their concerns, as well as anybody else's."

The fee rate is based off a feasibility review by an engineering firm, he added, which pinpoints the need.

NIBCA's attorney John Jameson said NIBCA is concerned about how the collected fee is used.

Impact fees are charged to accommodate for new growth, he said, while other fees are collected for maintenance of existing equipment.

After reviewing the financial implementation plan provided by HARSB (Hayden Area Regional Sewer Board), Jameson believes the cap fee is funding maintenance and upkeep for current sewer treatment, he said, as well as expansion of the treatment program.

"If it's used for expansion, it comes close to a development impact fee," said Jameson, who is with Risch and Pisca out of Boise.

If the fees aren't being properly collected, he said, it is possible the fee could be reduced, or that the city could go through the correct processes to re-implement the fee.

For now, more numbers need to be presented and discussed, he added.

Chatwin said Monday's meeting was very preliminary.

He couldn't predict what the outcome of the discussions would be.

"We're just gathering information regarding what their concerns are," he said.

Not all developers complain about the cap fee, Chatwin added.

"Some feel it's too high, some feel it's appropriate," he said.

A follow-up meeting between the two entities is set for June.