HomeMy WebLinkAboutLetter from Attorney Timothy Tyree
II1EII HAWLEYTRoXELL
. ENNIS ~lo!t:-~~m
877 Main Street, Suite 1000
P.O. Box 1617
Boise, Idaho 83701-1617
(208) 344-6000 Fax (208) 342~3829
www.hteh.com
TIMOTHY W. TYREE
ADMITTED TO PRACTICE LAW IN IDAHO
EMAIL: TWT@HTEH.COM
DIRECT DIAL: (208) 388-4873
RECEIVED
December 5, 2006
DEe "" 5 2006
City of Meridian
City Clerk Offic~
VIA HAND DELIVERY
Mayor de Weerd
City Council Members
City of Meridian
33 E. Idaho Ave.
Meridian, ID 83642-2300
Re: Meridian Heights Water And Sewer Assoc., Inc.
Dear Mayor de Weerd and Members of the City Council:
This letter summarizes the essential terms by which the Meridian Heights Water
and Sewer Association, Inc. ("Association") may connect its water and sewer systems
to the City of Meridian's ("City") water and sewer systems. Below are the material
terms by which an agreement might be drawn between the City and the Association:
1. Water/Sewer Hook Up Fee: $1,111,785 for 285 homes. This fee
excludes water meters and their installation. The fee shall be paid in two
installments. The first installment of $375,000 shall be paid at the time the
water connection is made pursuant to an offset for the amount due for the
Association's water rights and the balance shall be due at the time the
sewer connection is made.
2. Water/Sewer Connections: Two connections, one for Meridian
Heights and one for Kentucky Ridge. The Association will be responsible
for the cost of making the connections.
3. Rates: Standard water rates would apply. Sewer would be billed at
a flat rate calculated on winter water usage.
4. System Ownership: The City shall assume ownership of the water
and sewer lines upon connection to the City's respective systems.
40853.0001.902760.1
Mayor de Weerd
Members of the City Council
December 5, 2006
Page 2
5. Billing: The City will bill the Association for the water and sewer fees
and the Association will bill the individual home owners.
6. Water Rights: Upon connection to the water system, the City shall
purchase the Association's water rights for $375,000. This amount shall
be credited to the Water/Sewer Hook Up Fee.
7. Sewer Lagoon Water: After connection to the sewer system, the City
will allow the pond effluent to enter the City's sewer lines at no cost
according to a schedule established by the City. Cost of pumping the
water into the sewer lines will be paid for by the Association.
8. Annexation: Upon connection to the water system, the consent of
the homeowners will be assumed and the subdivisions may be annexed
into the City.
9. Non-binding: It is understood that this is a letter of intent only and
while the parties hereto agree in principle to the contents hereof and agree
to proceed in good faith to work out the details of the agreement, neither
of them shall have any legal obligation to the other as a result of this letter.
Accordingly, this letter does not constitute a binding agreement nor does it
constitute an agreement to enter an agreement and the terms hereof are
subject to the execution and delivery of formal agreements.
Very truly yours,
TWT
cc: Val Hill
Len Grady
Bill Nary
40853.0001.902760.1