HomeMy WebLinkAboutSewer Late Comers Agreement with Skyline Development Company for Landing Subdivision
SEWER LATE COMERS AGREEMENT
LANDING SUBDIVISION NO. 7
This Agreement made and entered mto this 23rd day of October, 2001, by and between
SKYLINE DEVELOPMENT COMPANY, an Idaho Limited Partnership, hereafter referred to as
"Developer", and the CITY OF MERIDIAN, hereafter referred to as "City"
WITNESSETH:
WHEREAS, the City limits extend south of Pintail Drive and east ot'Linder Road, including
Landing Subdivision No. 7, but prior to this Agreement and construction referred to herein, a portion
of such area was not provided sewer service by the City; and
WHEREAS, in 1994 the Developer extended sewer line(s) fi-om existing sewer line(s) to an
area south of Pintail Drive and east of Linder Road which sewer line extensions were able to provide
service to land south ot'Pintail Drive and east and west ot'L'mder Road; and
WHEREAS, the sewer main constructed by the l)eveloper will benefit other land than only the
land being developed by the Developer; and
WHEREAS, the total sewer line(s) constructed by the Developer in 1994 will benefit other
land than only the land developed by Developer, that the land that can be served by the 1994 sewer
line(s) is shown in Exhibit "B", which is attached hereto and by this reference incorporated herein as if
set forth in full; that the land totals approximately 36.3 or, res which, if developed under the zoning
shown on Exhibit "C", which is attached hereto and by this reference incorporated herein as if set forth
SEWER LATE COMERS AGREEMENT Page - 1
in full, with densities allowed in the zones shown on Exhibit "C", there could be 121 equivalent
residential units (ERU) in the 36.3 ar, res; that the Developers subdivision(s) consists of 45 ERU in 12.4
acres; that on the basis that 50% of the land not included in the Developer's subdivision would be
developed in ten years, the tm-iii that a late comers Agreement is allowed to run, there could be 38
ERU in 10 years; and
WHEREAS, the total cost of constructing the 1994 sewer line(s) was borne by Developer at a
cost of $40,699.25; whereas the sewer line(s) will benefit Landing Subdivision No. 7 which are being
or have been developed by Developer and those subdivisions wilt contain 45 ERU on 12.4 acres, or
37.2% of the total projected ERU to be benefited by the construction of the sewer line(s); therefore the
cost to Developer to provide sewer sexvice to his own mbdivision would be $15,140.12; that by
subtracting the $15,140.12 fi, om the total cost of $40,699.12, the total cost to all late comers is
$25,559.13; and then dividing the remaining projected number of ERU of 38 that could be served by
the sewer line(s), there should be a late comers fee of $672.61, plus interest, per ERU as shown in
Table 1I. of Exhibit "C"; and
WHEREAS, Section 9-4-19 of the Sewer Ordinance provides that the City may enter into
sewer line extension and reimbursement agreements and that section further provides that sewer users
who subsequently connect to the extended sewer line(s) shall be charged an eight (8) inch diameter
sewer line equivalency fee; said fees are in addition to the connection and user charges normally
assessed a user due to the fact the user has not cos,hibuted to the cost of the extended line; the above
fee is hereafter referred to as "Late Comer Foe"; the above ordinance section provides that the late
comers fee may be used to reimburse the person or persons so extending the sewer line(s).
WHEREAS, pursuant to Section 9-4-18 of the Sewer Ordinance, the City is required to
charge a Sewer Construction Equivalency Fee to any person or property owner who has not otherwise
paid for, or contributed proportionately toward the costs and expenses of constructing a sewer line,
SEWER LATE COMERS AGREEMENT Page - 2
whether that construction has been performed by the City, a local improvement district or a private
entity, or combination thereof; and who subsequently desires to connect to the City sewer system, shall
be required to pay an additional conn~don charge which shall be known and referred to as the "Sewer
Construction Equivalency Fee".
NOW, THEREFORE, IT IS HERFltY AGREED AS FOLLOWS:
1. The above m~citals are contractual and are incorporated herein as if set forth in full.
2. That the Developer has engineered, planned, and constructed the trunk sewer line(s)
shown in Exhibit "A", and which will benefit the land shown in Exhibit "B".
3. The Devdoper has contributed $40,355.25 to total construction costs of the above
sewer line(s) of which DeveloPer is entitled to be reimbursed the sum of $25,343.10 plus interest, as
shown in Exhibit "C", which represents land that could be served by the sewer line extension(s) but is
not included in Developer's subdivision.
4. That for all ERU in the land in Exhibit "B", subsequently connecting to the sewer
line(s) referred to in Exhibit "A", except the land in Landing Subdivision No. 7, the City will charge the
sum of $666.92 plus interest, per ERU as shown in Table II. ofExbi'bit "C"; such users shall hereafter
be referred to as "LATE COMERS"; that the charge is the sewer constmcedon equivalency fee
authorized in 9-4- t 8 and established by this Agreement, which fee shall herein be referred to as "LATE
COMERS FEE'; the fee is in addition to any other sewer charges for connection to the sewer system;
the computation of the Late Comers Fee is shown on Exhibit "C" attached hereto and by this reference
incorporated herein.
5. That all the late comer fees assessed above in Paragraph 4 shall be set aside and
deposited to a special account to be designated the "LANDING gq SEWER PRO,1ECT
REIMBURSEMENT ACCOLrI~'' and shall be distributed quarterly to the Devdoper.
6. That the late comer fees assessed, which will go into the LANDING gq SEWER
SEWER LATE COMERS AGREEMENT Page - 3
PROJECT REIMBURSEMENT ACCOUNT, shall inereese at a rate of 4% per annum; the late
comer fees for years I through 10 axe shown in Table II of Exhibit "CM;
7. That the late comer fees shall be collected by the City from all users subsequently
connecting to the line in Exhi~oit "A'' for ERU in the land described in Exhibit "B"~ except the land in
Landing Subdivision No. 7.
8. That the City shall charge the LANDING #7 SEWER PROJECT
REIMBURSEMENT ACCOUNT the 10% administrative charge as authorized under 9-4-19.
9. That the City shall have prepared on an ammal basis an audit of all funds collected
pursuant to this Agreement, which audit shall coincide with the general audit of the City; that the cost
of this audit shall be paid by the City as part of its adminis~five costs.
10. It is agreed that the sewer line(s) referenced in Exhibit "A" is the property of the City
and shall henceforth be maintained by the City at its sole cost and expense.
i 1 The term of this Agreement shall be until Developer has been reimbursed the principal
sum of $25,343.10 plus interest, as determined in Paragraph 6, less the 10% administrative fee or, if
this is not achieved, for a period often (10) years, ffthe Developer has not been reimbursed the
principal sum plus interest less admim'str~e fees after ten (t0) years from the date of this Agreement,
the Agreement may he renewed by mutual Agreenaent of the City and the Developer, at such time as
the City ordinance allows for extension ora ten year time frame. If the City does not amend this
ordinance, then this agreement shall have a ten year life span. Developer shall not be entitled to any
other fee or reimbursement for said sewer lines.
12. This Agreement shall be binding on the assigns and successors of the parties hereto.
SEWER LATE COMERS AGREEMENT Page - 4
DATED this~.3.__~day of Oo-'['~ ~r ~ 2001.
BY:
ATTEST:
R~6B~i~T D.- CORR., MAYOR
WILLIAM G. BERG, JR., ~CLERK
STATE OF IDAHO,)
~ SS.
County of Ada,)
On ~_ ~y o~' ~~ ,2001, ~o,'e me, the,~der~iw~, a Notre ~,~ic i~
and for s~d S~ p~o~y ~ ROBOT D. CO~ ~d ~ ] ~ G. B~G, ~, ~o~
to me to be ~e ~yor ~d C~ Cl~k of ~e ~ OF ~~, I~o, ~d who ~uted ~e
~ ~ ~d ~o~ to me ~ ~e ~ OF ~~ ex~t~ the sine.
IN WITNESS ~OF, I have hereunto set my hand and affixed my otficial seal the day
and year first above written.
t o..., 7'"-.'" %
-.,. %.* ....',.,qg
NOTARY PUBLIC FOR IDAHO
~SIDe4G aT
MY COMMISSION EXPIRES
SEWER LATE COMERS AGRg. g. MENT Page - 5
SKYLINE DEVELOPMENT COMPANY
(corporate seal)
Tuc~M. Johns-on
Vice President of Skyline Corporation (the General Partner)
STATE OF IDAHO,)
~ SS.
County of Ada,)
On this ~}_ day of ~)O'~O ~_.~, 2001, before me, the undersigned, a Notary Public in and
for said State, personally appeared Tucker M. Johnson, known to me to be the Vice President of
Skyline Corporation, the General Partner of SKYLINE DEVELOPMENT COMPANY, an Idaho
Limited Partnership, and who executed the within instrument on behalf of said limited partnership, and
acknowledged to me that said limited partnership executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and aff~xed my official seal the day
and year first above written.
NOTARY PUBLIC_FOR, IDAHO
m smINOAX
MY COMMISSION EXPIRES ~
SEWER LATE COMERS AGREEMENT Page - 6
SKYLINE CORPORATION (LANDING SUBDIVISION #7)
SEWER LATECOMERS AGREEMENT
FEE COMPUTATION'
Table I. AREA & ERU DETERMINATIONS (Including Dew ~per's Subdivision)
Projected ERU
Area Predominant Density Projected Projected % of
No. Description Zone ERU/Ac Acreage ERU's Total
1 West ofLinder & Ustick R-4 3.2 15.7 50 41.3
2 East ofLinder & Ustick R-4 3.2 8.2 26 21.5
3 East of Linder (Landing Sub. #7) R-4 3.6 12.4 45 37.2
TOTALS 36.3 121 100%
DEVELOPER'S AREA & ERU
Landing Subdivision NO. 7
Average Density = 45 ERU / 12.4 = 3.6 ERU/Ac
ORIGINAL COST TO DEVELOPER:
Late Comer Agreement Preparation Fee (688 x ~)
Amoum Eligible for Reimbursement to Developer:
Original Developer's Projected ERU's:
Original Developer's Percentage of Total Service Arm:
Original Developer's Share of Construction Costs:
Latecomer's Share:
45 ERU 12.69 Ac
$344.00
$40,699.25
45
37.2
= 37.2% x $40,699.25 = $15,140.12
= :$40,699.25 - $15,140.12 = $25,559.13
LATECOMER UNIT COST FORMULA:
Assume payback period of ten years and an overall gro,~ah rate of 50% in latecomer area over that ten
years.
Unit Cost / ERU = Lateeomer's Share + (Projected Latecomer ERU's x 50% Development)
COMPUTATION:
Unit Cost / ERU = $25,559.13 -v (76x50%) = 672.61
REIMBU, RSEMENT SCHEDUI~E:
Skyline Corporation paid the costs of installing the sewer line. The Latecomer Fee paid by each ERU
who connects to the subject sewer line will be paid to Skyline Corporation.
The late comer fee assessed to each Late Comer shall be adjusted annualty on September 30 at an annual
percentage rate of 4%. The late comer fee shall be as follows:
Table II
Effective Date Late Comer Fee
10/1/01 $672.61
10/t/02 $699.51
10/1/03 $727.49
10/1/04 ,$756.59
10/1/05 $786.86
10/t/06 $818.3,3
10/1/07 $851.07
10/1/08 $885.11
10/1/09 $920.51
10/1/10 $957.33