The last day of February saw the El Dorado Irrigation District board OK a new agreement to replace the Weber Advanced Funding Agreement (Weber AFA).
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The extension had been sought by developers who had paid $4 million to upgrade Weber Dam in return for discounted water hookups.
Under the original Weber AFA, which was approved in 2000, the district received $4 million in private, non-reimbursible funding to repair Weber Dam. In exchange, the district granted 10-year contractual water service commitments to the funding parties (referred to as the “Interested Parties” in the agreement) and some other landowners from existing district resources.
Late last year, the “Interested Parties” requested — in light of the deep recession in the housing market — that the district extend the Weber AFA an additional 10 years to allow them to fully exercise their contractual water service commitments. After negotiations, the board and the “Interested Parties” reached a satisfactory agreement.
The new agreement, approved Feb. 28, will replace the Weber AFA. It will extend the Interested Parties’ unexercised water service commitments for 10 years and the associated $3,390-per-unit hookup fee discount for five years.
The new agreement will also authorize the Interested Parties to transfer the Weber AFA service commitments among themselves and apply them to any property they own in the El Dorado Hills area. Additionally, the board stipulated that the Interested Parties must use these entitlements first when purchasing new water service.
“The way I used to run my business was to be fair and I think we’ve reached a fair and reasonable compromise,” said EID Board President Harry Norris. “I don’t think we will see much improvement in the economy, particularly for commercial projects in the near term, so giving them a little more time to use these benefits is the right thing to do.”