At a recent Water Agency
Board of Director’s workshop staff
was directed to begin asking for hook up fees in advance of a project’s permit
stage. Ryland is the first such developer to receive the request. In the
past the water agency has accepted the fees at the time of the permitting of
any construction or at the finaling of the construction itself. This newly
implemented policy that is provided for in the agency’s water code is important
according to Water Agency General Manager Jim Abercrombie to lessen the impacts
of new development on current rate payers. Abercrombie states that the agency is committed to lessening
financial burdens on current ratepayers when developers require new
infrastructure and current infrastructure improvements but are not asked to pay
for those improvements until the new buildings are under construction or
finished. This is the basis for the request to Ryland Homes for payment
of water connections upfront. This lapse between the water agency’s outlay of
capital and the payment form developers could be several months to several
years and someone must absorb the cost of those improvements during the
meantime. Abercrombie states the Water Agency is committed to making sure that
“somebody” is not current customers. Ryland Homes, in the end, expressed that
there is some flexibility in the payment of these fees and they will attempt to
work with the water agency.
Friday, 23 March 2007 04:53
Water Agency Begins Asking Developers For Money Upfront
Yesterday’s Amador Water
Agency meeting brought some interesting news from Ryland Homes, the developer
of the Wildflower subdivision in Ione. Ryland’s representatives stated that the water agency’s request for cash
upfront payments for water connections for the planned 276 home neighborhood
may be beyond the company’s scope at this point. The dollar amount being
discussed is around the 1.3 million dollar mark and Ryland representatives
state that the company has already invested 28 million dollars into the project
and this additional investment may not be feasible based on the City of Ione’s current sewer and
water constraints.
At a recent Water Agency
Board of Director’s workshop staff
was directed to begin asking for hook up fees in advance of a project’s permit
stage. Ryland is the first such developer to receive the request. In the
past the water agency has accepted the fees at the time of the permitting of
any construction or at the finaling of the construction itself. This newly
implemented policy that is provided for in the agency’s water code is important
according to Water Agency General Manager Jim Abercrombie to lessen the impacts
of new development on current rate payers. Abercrombie states that the agency is committed to lessening
financial burdens on current ratepayers when developers require new
infrastructure and current infrastructure improvements but are not asked to pay
for those improvements until the new buildings are under construction or
finished. This is the basis for the request to Ryland Homes for payment
of water connections upfront. This lapse between the water agency’s outlay of
capital and the payment form developers could be several months to several
years and someone must absorb the cost of those improvements during the
meantime. Abercrombie states the Water Agency is committed to making sure that
“somebody” is not current customers. Ryland Homes, in the end, expressed that
there is some flexibility in the payment of these fees and they will attempt to
work with the water agency.
