So I am not in the same boat as many of you with the water shares, as my connection fee was paid by the previous owner, but I thought I'd add my two cents. I spent a good 45 minutes talking to Kip Painter(secretary on the irrigation board) tonight about the water shares. I think that what has happened is a mis-communication between Saddler and the lot owners with water shares in the subdivision. Having a water share makes a lot worth more money, or having access to water makes a lot worth more. On the open market if you were to take two almost identical lots, the only difference being that one had a share of water and the other didn't, the one with water would be naturally worth more money. I think this is why you paid $2000.00 more for the lots with water. Now whether or not this was communicated by Saddler, the irrigation company doesn't care, as their fees are separate from those associated with the purchase of your lot.
I have a hunch that many of you feel misled... the creation of this blog is proof that things havent gone as promised. So I think that if you were promised water for $2000.00 more then you should pursue Saddler footing the bill, you never know it could be worth a try.
The fee breakdown goes as follows, $300 hookup fee, $50 water stock transfer fee. (both of these are one time fees, that according to Kip need to be paid to bring your stock "current") then there is a yearly $50 water association fee, and a $10 per share fee (except there is a $20 min. fee for this, so if you have one share like we all do, then you have to pay $70 total a year.) So $420.00 is the sum of all these, next year if nothing is paid, then it will be $490.00, another years fees added to the original $420.00.
I feel like I have a pretty good understanding about the water shares and how they function, and would be happy to talk anyone through any questions they have. I couldn't stay at the meeting tonight but CJ was there, maybe the committee had some other things to say, so CJ if something different was said tonight please let us know...
I wasn't around when Saddler was selling lots, so I dont know what was said or promised. Unfortunately this might turn into a "he said she said" situation...
I don't intend to stir up any fires, this is just my two cents from an outside looking in point of view.
Randy
5 comments:
Thanks Randy:) Kip also said that the water shares are in our names but they will not release the certificates until the $420 is paid.
They want to keep the water shares here in our subdivision. Ideally they would have liked to have sold the water shares to the HOA of our subdivision, but we don't have one set up.
That's the best explanation I've heard yet. Thanks Randy!
Thanks Randy. That is the way I understand it as explained last night at the meeting. It is my understanding that any lot owners who owned lots in the subdivision in 2008 now owe $490.00. Those who bought lots in 2009 owe $420.00. Unfortunately, we supposedly purchased a share with our lot but all of the shares allotted to the subdivision have been taken. So Tania and I have that to work out with Sadler. Randy said it all but here's the cost breakdown again with some additional detail.
$300.00 connection fee - which DOES NOT mean that the irrigation company does anything to actually connect something or put on a valve. It means that you have paid for a share (the $2000.00) and now are paying to connect into the system. It is my understanding that this portion does not need to be paid until you are going to use the water. Apparently Sadler was supposed to put an individual valve on each lot that water shares were connected to, but instead put one valve off the main trunk and stubs on each lot. The RIC recommends all property owners put an individual valve on their lot to reduce liability and avoid screwing up everyone's water if something happens to one. This can be done on your own at the cost of $35-40.
$50.00 - water stock transfer fee. This must be paid in order to get a certificate, whether or not you are going to use the water. You paid a couple grand for the share so you definitely want the certificate.
$70.00 - assessment fee for 2008. This is broken down as Randy explained and must be paid whether or not you used the water.
$70.00 - assessment fee for 2009. This must be paid whether or not you used the water.
According to the RIC, all of these fees are typically paid by the purchasing party. I can only speak for Tania and I. I know that Sadler's agent never discussed these fees with us but they also really don't have to do with purchasing the share, they have to do with connection, maintenance, etc. So I don't see reason to pursue Sadler on those particular charges from our standpoint. Again, that's just us.
If you are not interested in the share you can sell it. Market value is between $2000-3000, though it sounds like the RIC would prefer they stay in the subdivision. The company has been lenient but the bylaws do state that you will forfeit the shares if the fees are not paid.
Also, the RIC will only transfer the shares to owners themselves. If they are connected to a lot that becomes a title company issue.
I'm happy to respond to any questions as well. The board members are also very friendly and are willing to answer any questions.
CJ, about the individual valve on each lot, I think there is one in place, it is a stop and waste valve. It should be a 4" pipe next to the one sticking out of the ground. This is where you put the sprinkler key down the pipe to turn the irrigation on and off. I know I have one because Bradley filled it full of rocks for me =).
Randy
Also some other info is our connection fees do not cover any breakage. If the line breaks on your property you are responsible for repairs. Also water share's have been sold between 2-3k for the last 10 or so years, all this is per Terri Spackman (the president of the irrigation company). So value wise we didn't get robbed, yes their might of been some cost that we didn't know about. But Terri also said that they could choose to grant or deny selling a share. If we sold to another neighbor in the subdivision they would likely grant the sale of the water share. But if we tryed to sell the share to someone else in Richmond they have the ability to deny the sale. The irrigation district is trying to straighten out the Saddler mess just like the rest of us and that is why we haven't received any billings unless you have already paid for your share. Because technically if you haven't paid for your connection fee and are not using the water you don't have a connection fee, is what I understood Terri say. I don't owe a connection fee because I'm not connected yet (my water is not turned on). He said this to me after I told him that we were thinking about selling, because we didnt use the share and were worried about a bill. Scott from NNHC said that we are lucky here in Richmond, some places who have water shares don't have lines or water pressure. They have to put in the lines, pumps and electricity just to use the water so paying the connection fee is a small price for almost free, water. Once it's turned on, you just have to turn a valve to use it. :)
NNHC note:
Scott from accounting is looking into paper work for connection fee's too just in case. For the those who built through them.
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