TMWA delays growth fees

Developers worried about rising costs on current projects were satisfied with Truckee Meadows Water Authority's decision last week to push back the date it plans to start charging new fees.

The audience that included more than a dozen developers applauded quietly when the water authority's board of directors voted to relax its proposed timeline on fees for new construction.

The new fees were scheduled to take effect July 1.

But the board decided that developers could pay the current, lower fees as long as new project applications were filed with TMWA by the end of that day, June 18, and subsequent contracts with the water utility were signed by Dec.

31.

Any projects with applications submitted after June 18, or projects in which developers failed to sign a contract with TMWA by the end of the year, will be subject to the new fee structure (see box).

The fees are designed to make growth pay for growth and not force existing water customers to finance new feeder mains, supply and treatment and storage facilities demanded by new construction.

They will also serve to slow growth in Reno-Sparks area, according to a few citizens and at least one developer who testified at the board meeting.

"Just so we know where we're going here, you want to cut back on growth, which is fine," said Mike Burgess with developer Trammell Crow.

But Burgess and others complained that TMWA was doing it at the expense of builders if they tacked on new fees to projects already in the pipeline.

The biggest complaint was not the fees themselves, which all but one developer supported, but the plan to impose them without giving the developers plenty of notice.

"We were considered by both Sierra Pacific and TMWA to be one of the top five developers," said Burgess.

"And we were notified on May 15."

Burgess, and others, said the new fees also come on top of substantial increases in other construction fees, particularly fees for road access.

"This fee will stop us from doing what we were going to do," said Dave Rigdon, who is developing a piece of land in Reno that has been targeted for redevelopment.

"$1,800 on top of other fees makes it infeasible."

Rigdon was the only developer to speak out against the fees themselves, but even his opposition was just about imposing the fees on downtown redevelopment land with 20-year-old master plans.

Developers also said it is unfair of TMWA to impose fees on applications now in the works since much of the delays in the process are out of a developer's control, and sometimes the fault of the water utility.

"I've had one project in the hopper since March and the documents for it got lost at TMWA for four weeks," said Paul McKinzie, a developer based in Truckee, Calif.

"Now you're going to impose a fee because you lost my plans for four weeks, didn't tell me what you wanted in the first place, and couldn't communicate with my engineer?"

According to TMWA staff, the water utility currently has 180 pending applications, 39 of which are incomplete, meaning they would have been subject to the new fees under the old plan.

Now all of those projects will fall under the old fee system as long as developers sign contracts for them by the end of the year.

Other developers asked that TMWA consider exempting non-profits and affordable housing projects, but in the end the board didn't address that issue.

According to Marlene Olsen, spokeswoman for TMWA, the water authority has a standing policy against cross subsidization, or forcing one type of customer to subsidize the costs of another type.

TMWA board member Dave Aiazzi asked if it would be possible to let developers pay the new fees, once they go into effect, in stages.

But Jeff Tissier, TMWA's manager, financial and administrative services, warned that TMWA was in no position to essentially act as a lender.

"TMWA is highly leveraged," said Tissier.

"TMWA has a very clear plan to deal with that debt.We want to restructure it to the benefit of everyone ...We are not in a position of flexibility."

The new fees, like the current fees, will be due in full when a contract is signed.

In the end, developers were satisfied, if not overjoyed.

Said developer Dave Snelgrove: "What they did with the timeline was reasonable." Growth to pay for growth The Truckee Meadows Water Authority will soon charge fees to developers for new construction.

The fees cover the costs of building new feeder mains, as well as supply and treatment and storage facilities.

Price per gpm Feeder mains: Location South Truckee Meadows $346 Sparks-East Reno $1,117 Sparks-East Reno (A) $559 U.S.

40 Northwest Reno up to $91 Pyramid-Sparks upgrade $141 Vista up to $1,221 Sun Valley-Sullivan pump zones $720 Mogul $800 Sierra-North Virginia pump system $1,800 Lakeridge-Plumas pump system $480 Stead area To be determined Supply and treatment facility unit cost (all locations) $1,510 Storage facility unit cost (all locations) $1,122 Source: TMWA