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Staff briefs commission on possible ordinance to allow in‑lieu water‑fee for city water shares
Summary
City staff told the Planning Committee the city is drafting an ordinance to allow developers to pay an in‑lieu fee in exchange for the city assigning its available water shares for new lots; the change requires a public hearing and will be scheduled for future commission and council consideration.
City staff briefed the Woodland Hills Planning Committee Aug. 20 on a proposed change to city ordinance that would allow developers to contribute the cash value of a water right to the city in lieu of transferring an external water share through the state process. Staff said the change would allow the city to assign available city water shares to new lots within the city when the developer pays an equivalent in‑lieu fee.
Staff explained this approach differs from the current procedure, which requires a developer to acquire shares from canal companies or private sellers and process a transfer through the Utah Division of Water Rights. The city attorney advised staff that the ordinance change requires a public hearing because it constitutes a land‑use regulation; staff therefore will place the item on a future agenda for a public hearing before the commission and City Council.
Commissioners asked about availability and pricing. Staff said market prices for a water share vary and cited a general current range of approximately $4,500–$6,000 per share, and that one home typically requires about 0.9 acre‑feet (often referred to as a share). Staff said the city holds some excess shares but intends to reserve available shares for facilitating in‑city development rather than selling individual shares to private buyers. A resident, Spencer Wells of Screen Drive, asked whether property owners could buy a share directly from the city; staff replied the city expects to hold shares for development needs and not sell them individually to existing property owners.
The ordinance draft will be reviewed by the city attorney and scheduled for a public hearing; staff indicated the change would also require subsequent City Council action.
