Friday, 11 June 2010 06:11

AWA Moves Toward 5% Up-Front Will-Serve Fees

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slide4-awa_moves_toward_5_up-front_will-serve_fees.pngAmador County – The Amador Water Agency board of directors voted 3-2 toward charging a 5 percent of developer fees up-front fee to issue a conditional will-serve, directing staff to revise an ordinance to change the fee policy. The board in late May had voted 3-2 to remove any up-front fees, after an original draft of the proposed ordinance would have charged 10 percent at the time of signing up for the will-serve. Gary Thomas was the only AWA director to vote for both, siding with Don Cooper and Terence Moore on May 27th to direct staff to remove the 10 percent. Then on Thursday (June 10th), Thomas said he would “vote for a compromise,” approving the 5 percent fee, to be prepared by agency attorney Steve Kronick. Thomas voted with President Bill Condrashoff and Vice President Debbie Dunn to make the change, which also would include making the up-front 5 percent non-refundable, and earmarking it to be used for “more global” improvements to benefit all customers in an area, said General Manager Gene Mancebo. Moore said “I have no intention of voting for ‘no growth,’ ” and he would not hesitate to call anyone who voted for it a “no-growth-er.” He said it would only have the effect of making developers move on to another county, or hold their request for a conditional will-serve until the last minute. The draft ordinance also set time periods for fee installment payments for the will-serve, including a 10 percent fee to renew a conditional will-serve. Thomas asked about the letter to the board saying Ione Villages was not being given its will-serve commitments, after 4 months. Kronick said “the agency is within his rules” and he was not worried about it. He said a 60-day time period would end June 15th to give those commitments. Moore asked if the letter was correct in alleging that the fees violated state law. Kronick said the letter referred to an improper code section, while another section “specifically says” that law “does not apply to water and sewer capacity fees.” He said developers seem to think the agency is increasing its participation fees, but it is not, “it only has to do with the timing of payments.” Condrashoff urged bringing back his original 10 percent up-front fees, say it would make up for years of stranded assets, including 600 “free” will-serve commitments in the Central Amador Water Project area, and 1,400 total around the county. He said the uncollected fees of $9,000 to $10,000 each would amount to about $14 million. Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.
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