Amador County – Amador Water Agency last week approved an early will-serve fee payment agreement with JTS Communities in Ione worth $1.2 million by 2013.

AWA General Manger Gene Mancebo credited former President Bill Condrashoff with the idea, because he wanted to look at some will-serve commitments that the agency had out there. JTS has 148 lots at Castle Oaks Village 3 entitled to get service, which would not have been paid until a house was built, or service requested, or they sold. JTS agreed to lower payments, paid early, and also deferred redeeming $110,000 in fee credits.

The fee per Equivalent Dwelling Unit was reduced from $11,300 to $8,000. Condrashoff said: “This is a give-away. This is so bad. This is not my idea.”

Condrashoff asked about a $6 million improvement in 1992 at the Ione water plant, and why it was not part of a rate study used to determine fees. He said “$16 million in assets came out of the fee study.” Director Art Toy asked for an explanation.

Mancebo said the 2007 study did not include the 1992 improvement because that capacity was already used. Fees are “specific to this agreement and the water treatment component that we are not moving forward with,” which was removed from the fee methodology. Capacity guaranteed with JTS fees is based on incrementally added capacity at Ione and Tanner plants.

Mancebo said raw water and treatment components were separated and they “can’t charge those to the new developer.” They can only charge for “those components that remain to have capacity.” They “took out raw water and the plant from the buy-in methodology.” The water treatment plant was replaced with other future assets to be made from “incremental expansion and the costs associated with it.”

Board President Don Cooper asked if they collected fees in advance and no lots were built on, would the Agency have to refund the fees paid. Mancebo said there would be no refunds, and that is “the risk the developer takes.”

Mancebo said the money will go into a replacement reserve fund in the Amador Water System, where all participation fees go.

Toy asked about a new rate study and the new plant project. AWA Counsel Stephen Kronick said a new study would take “a minimum 6 months.” Mancebo said a study could cost $20,000 to $30,000 and risks getting a finding that shows participation fees should go down.

Mancebo said a new plant would give “8,000 to 10,000 EDUs” but is “not going to happen any time soon.” He said incremental expansion at the treatment plants remained in the “participation fee of $8,000 that I am suggesting.” They continue to provide for buy-in “you are not taking from the existing assets.”

The Board voted 4-0 to approve the JTS agreement, with Director Gary Thomas absent.

Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.