Revocation of Cash-In-Lieu Preference
On August 17, 2021, City Council passed Resolution 2021-57 which terminates the cash-in-lieu of water dedication preference. What this means is that any project that requires water dedication would be required to dedicate acceptable water rights to the City rather than pay cash in lieu of dedication. Requests to provide cash-in-lieu will need to be made on a project-by-project basis. If the dedication requirement is less than 10 acre-feet of water, the Public Works Director may authorize the cash-in-lieu of dedication. If the project requires dedication of more than 10 acre-feet of water, City Council will need to approve the request.
Adjustment to Cash-in-Lieu Amount
On August 17, 2021, City Council also adopted Resolution 2021-56, which adjusts the cash-in-lieu rate from $18.900 per acre-foot to $85,700 per acre-foot. The revised cash-in-lieu amount reflects current market cost for water. The significant increase in the amount reflects the fact that this value has not been adjusted since 2016.
The resolution contained the following exceptions with regard to existing projects.
Residential Project Exceptions
- Existing Agreements. Residential subdivision and developments for which a different cash-in-lieu amount is established in an agreement that was approved by City Council and executed by an authorized City official on or before the effective date, subject to the terms and conditions of the agreement. Any amendments to the agreement or if the agreement expires, the exception is nullified.
- Approved Projects under Construction. Any residential subdivision or development that as of August 17, 2021:
- Has received final plat approval and construction of public improvements and at least one residential building permit has been issued, and
- The developer pays the previously established cash-in-lieu value of $18,900 per acre-foot of water required to be dedicated for all remaining residential units within the subdivision filing or development by February 13, 2022.
- This exception is only valid for the approved filing or phase that meets the condition in a. above.
If you have a project that is eligible for an exception under #2 above, please reach out to email@example.com with the name of the project, a list of unpermitted lots along with legal descriptions and addresses to coordinate payment of funds.
Non-Residential Development Exceptions
- Existing Agreements. Non-residential subdivisions and developments for which a different cash-in-lieu amount is established in an agreement that was approved by City Council and executed by an authorized City official on or before the effective date, subject to the terms and conditions of the agreement. Any amendments to the agreement or if the agreement expires, the exception is nullified.
- Pending Permits. Non-residential developments that have submitted a building and utility service permit application deemed complete by City Staff, including payment of all permit review fees, as long as the permits are issued within 180-days after the applications were filed with the City, or within an additional period of time authorized by the building official, and the building permit application is not otherwise deemed abandoned at any time after the effective date of resolution.
- Issued Permits. Non-residential developments that have a valid building permit issued before August 17, 2021 for which all permit and utility service permit fees have been paid, provided that the building permit does not expire or is otherwise invalidated due to lack of construction activity or abandonment of the project. Any new permits issued would be required to pay the difference between the cash-in-lieu amounts of the new permits from the expired permit.
If you have a pending permit that you need to pay permit review fees on, please reach out to firstname.lastname@example.org prior to September 30, 2021 with your permit number and address.
View the City Council Staff Report
View Resolution 2021-56
View Resolution 2021-57