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Council hears public comment on proposed water policy allowing fee-in-lieu for developer water rights
Summary
City staff presented a draft code amendment that would let developers pay a fee instead of dedicating water shares where the city has surplus rights; residents questioned long-term supply and build-out assumptions and the city said the option can be rescinded if needed.
Woodland Hills city staff opened a public hearing and described a proposed amendment to city code 8.5.1 that would allow developers, in some cases, to pay a fee in lieu of bringing water shares to the city when they build new developments.
Public works director Ted explained that the city currently requires developers to acquire and dedicate water shares to the city. He told the council the city currently has a surplus of water rights and the fee-in-lieu option would allow the city to allocate some of that excess water to developments while collecting revenue now instead of spending taxpayer dollars to expand storage. Ted said the policy would be optional for developers and the city could later rescind the fee-in-lieu option if water availability tightens.
Residents raised questions about long-range carry-through of the water surplus, build-out assumptions and who bears the long-term risk. One resident asked whether the current water surplus will be adequate if zoning and densities change across the city; Ted said staff has evaluated build-out population through the city’s planning horizon (to about 2060) and believes current surplus shares will cover demand for decades but reiterated the city can reverse the fee option if needed. Another resident asked whether single-property owners who develop their lots must still bring water shares; staff said developers of multi-lot developments will bring shares for the development and that individual lot purchasers typically are covered if a developer dedicates the water for the subdivision.
Other technical points raised during the hearing included: - Availability and ownership: Ted and other staff explained surplus water resources are held by the city and any sale or allocation is subject to state water law and beneficial-use rules; staff said Salem City operates the relevant public water system for the area under an interlocal agreement. - Pricing and billing: Council discussion noted the city uses tiered water rates for customers; staff said any developer purchases of surplus water would be at rates and terms consistent with the public-water system and subject to availability. - Safeguards: Staff said the fee-in-lieu policy would be subject to review and could be rescinded when the city determines the amount of surplus has been allocated.
No final council action on the code amendment was recorded in the transcript; the item was presented, public testimony was taken and councilmembers asked questions of staff. Council staff and the public will continue technical review and drafting before any ordinance adoption.
