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Friday, 23 March 2007 04:53

Water Agency Begins Asking Developers For Money Upfront

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slide12Yesterday’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.
slide14 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.
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