20200831Tall Timber Comment.pdf

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CONSULTING
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August 3L,2O2O
Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, lD 83720-0074
Re: SUZ-W-?0-OL
Dear PUC Commissioners
I am submitting these comments as a residential land developer in the Treasure Valley for over 20
years and as a consultant that supports other developers and landowners in the land development
process.
When ! learned about a new fee being charged by Suez and authorized by the ldaho Public Utilities
Commission (Contributions in Aid of Construction or CIAC), which is an additional2L.So/o to the
cost of the water system, I was shocked. After learning about this added expense, I have
explained this added cost to severa! potentia! development clients. The result of the added cost
has caused some new development projects to be put on hold until the cost of housing increases
enough to cover the added cost to develop. ln one specific example, the cost would increase the
price of each home over 52,500 per home. I know of a multifamily development that was put on
hold until the rents increased enough to cover the added cost. Waiting for price or rents to
increase sufficiently to cover added costs is a difficult and potentially precarious position to be in.
As I consider developing new subdivisions, I have realized that the new CIAC fee creates a distinct
competitive disadvantage to private systems. Since the CIAC charges only apply to private water
systems, the increased costs are inequitably charged to new development depending on its water
provider. lf a new development is served by a private water system like SUEZ, the CIAC is charged;
but the fee is not charged if the development is served by a government owned water system.
The housing market continues to become more expensive and less affordable to both buyers and
renters. I appreciate your help to reduce burdensome costs whenever possible so that we can
pass on these savings to our customers. I respectfully request that you eliminate the CIAC fee.
Sincerely,
Dave Yorgason
[phone] 14254 W. Battenberg Drive, Boise, Idaho 83713