HomeMy WebLinkAboutWater Late Comers Agreement with Skyline Development Company for Landing SubdivisionWATER LATE COMERS AGREEMENT
LANDING SUBDMSION NO. 7
This Agreement made and entered into this 23rd day of October 2001, by and between
SKYLINE DEVELOPMENT COMPANY, an Idaho Limited Partnership, hereatter referred to as
"Developer", and the C1TY OF MERIDIAN, hereafter referred to as "City"
WITNESSETH:
WHEREAS, the City limits extend south of Pintail Drive and east of 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 water service by the City; and
WHEREAS, in 1994 the l)evdoper extended water line(s) from existing water line(s) to an
area south of Pintail Drive and east of Linder Road which water line extensions were able to provide
service to land south of Pintall Drive and east and west of Linder Road; and
WHEREAS, the water main constructed by the Developer will benefit other land than only the
land being developed by the Developer; and
WHEREAS, the total water line(s) constxucted 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 water
line(s) is shown in Exhibit '~B", which i.s attached hereto and by this reference incorporated herein as if
set forth in full; that the land totals approximately 36.3 acres which, if developed under the zoning
shown in Table I on Exhibit "C", which is attached hereto and by this reference incorporated heroin as
if set forth in full, with densities allowed in the zones shown in Table I on Exhibit "C" here could he
LATE COMERS AGREEMENT Page - 1
121 equivalem residential units (ERU) in the 36.3 acres; that the Dewdoper's subdivision(s) consists of
45: ERU in 12.4 acres; that 50% of the land not included in the Developer's subdivision would be
developed in ten years, the term that a late comers Agreement is allowed to mn, there could be 38
ERU in 10 years; and
WHEREAS, the total share of the cost of constructing the 1994 water line(s) Ix)me by
Developer was $32,195.05; whereas the water line(s) will benefit Landing Subdivision No. 7 which are
being or have been developed by Developer and those subdivisions will contain 45 ERU on 12.4 acres,
or 37.2% of the total projected ERU to be benefited by the construction of the water line(s); therefore
the cost to Developer to provide water service to his own subdivision would be $11,976.56; that by
subtracting the $11,976.56 fi-om flae total cost of $32,195.05 and then dividing the remaining projected
number of ERU of 38 that could be served by the water line(s), there should be a late comers fee of
$532.07 plus interest, per ERU as shown in Table II of Exhibit "C"; and
WHEREAS, Section 9-1-13 of the Water Ordinance provides that the City may enter into
water line extension and reimbursement agreements and that section further provides that water users
who subsequently connect to the extended water line(s) shall be charged a ten (10) inch diameter water
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 contributed to the cost of the extended line; the above fee is
hereafter ref~ed to as "Late Comer Fee,; the above ordinance section provides that the late comers
fce may be used to reimburse the person or persons so extending the water line(s)- WHEREA3~
pursuant to 9-1 - 1 2~ the City is required to charge a Water Construction Equivalency Fee to any person
or propen'y owner who haa not otherwise paid for, or eonffibuted proportionately toward the costs and
expenses of constructing a water line, whether that construction has been performed by the City~ a
local im40rovement district or a private entity, or combination thereof~ and who subsequently desires to
LATE COMERS AGREEMENT Page - 2
connect to the City water system, shall be required to pay an additional connection charge which shall
be known and referred to as the "Water Construction Equivalency Fee".
NOW, THEREFORE, IT IS HEREBY AGIIF, F.D AS FOLLOWS:
1. The above recitals are contractual and are incorporated herein as if set forth in full.
2. That the l)eveloper has engineered, planned, and constructed the trunk water line(s)
shown in Exhibit "A", and which will benefit the land shown in Exhibit "B".
3. The l)eveloper has contributed $32,195.05 to total construction costs of the above
water line(s) of which Developer is entitled to be reimbursed the sum of $20,218.49 plus interest, as
shown in Exhibit "C", which represents land that could be served by the water line extension(s) but is
not included in Developer's subdivision.
4. That for all ERU in the land shown in Exhibit '~B", subsequently connecting to the
water line(s) referred to in Exhl~t "A", except the land in Landing Subdivision No. 7, the City will
charge the sum of $532.07 plus interest, per ERU as shown in Table II of Exhibit "C"; such users shall
hereafter be referred to as "LATE COMERS"; that the charge is the water construction equivalency
fee authorized in 9-1-12 and established by this A~reement, which fee shall herein be referred to as
"LATE COMERS FEE"; the fee is in addition to any other water charges for connection to the water
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 ~/ WATER PROJECT
REIMBUI~gEMEblT ACCOUNT" and shall reflect interest at a rote of 4% to be accrued on the
unpaid bahh'w~ once a year at the City's Fiscal Year End, 9/30 each year for the term of the agreement,
and shall be distributed quarterly to the Developer.
LATE COMERS AGREEMENT
Page - 3
6. That the late comer fees assessed, which will go into the LANDING #7 WATER
PROJECT REIMBURSEMENT ACCOUNT, shall increase at a rate of 4% per annum as shown
in Table II of Exhibit "C".
7. That the late comer fees shall he collected by the City from all users subsequently
connecting to the line in Exhibit "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 g'7 WATER PROJECT
REIMBURSEMENT ACCOtINT the 10% administrative charge as authorized under 9-1-13.
9. That the City shall have prepared on an annual 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 administrative costs.
10. It is agreed that the water 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.
11. The term of this Agreement shall be until Developer has been reimbursed the principal
sum of $20,218.49 plus imerest, as determined in Paragraph 6, less the 10% administrative fee, or, until
theg2, day of (Da3cok:~.t ,201[ . l. fthe Developer has not been reimbursed the prindpal sum
plus interest less administrative fees after ten (t0) years from the date of this Agreement, the
Agreement may be extended by mutual Agreement of the
City and the Developer, at such time as the City ordinance allows for extension of a ten year time
flame. Ii'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 water line.
12. This Agreement shall be binding on the assigl~s and successors of the parties hereto.
LATE COMERS AGREEMENT Page - 4
DATED this22~ day of C)e..-¥~i:mF' ., 2001.
BY:
ATTEST:
STATE OF IDAHO,)
County .tAch,)
On thi~lS__~y of ~~ ,2001, before me, the undersigned, a Notary Public in
and for said State, personally appeared ROBERT D. CORRIE and WILLIAM G. BERG, JR., known
to me to be the Mayor and City Clerk of the CITY OF MERIDIAN, Idaho, and who executed the
within instrument, and admowledged to me that the CITY OF MERIDIAN executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day
and year first above written.
NOTARY PUBLIC FOR IDAHO
RESIDING AT e~.~td ~
MY COMMISSION EXPIRES
LATE COMERS AGRI~.MENT Page - 5
SKYLINE DEVELOPMENT COMPANY
(corporate seal)
/l~cker M. Johnson
Vice President of Skyfine Corporation (the General Partner)
STATE OF IDAHO,)
: SS.
County of Ada, )
On this ~__ day of~_6~(___, 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 affixed my official seal the day
and year first above written.
NOTARY PUBLIC FOR IDAH~
RESIDING AT /~d i~., 2F--
MY COMMISSION EXPIRES
LATE COMERS AGREEMENT Page - 6
B2ONI9
E6L
"EXHIBIT C"
SKYLINE CORPORATION (LANDING SUBDIVISION #7)
WATER LATECOMERS AGREEMENT
FEE COMPUTATION
Table I. AREA & ERU DETERMINATIONS (Includes Devela ~er's Subdivision)
Projected ERU
Area Predominant Density Projected Projected % of
No. Description Zone ERU/Ac ERU's 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 28 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 (688 x aA)
Amount Eligible for Reimbursemem to Developer:
Original Developer's Projected ERU's:
Original Developer's Percentage of Total Service Area:
Original Developer's Share of Construction Costs:
Latecomer's Share:
45 ERU 12.4 Ac
$344.00
$32,195.05
45
37.2
= 37.2%x $32,195.05 = $11,976.56
= $32,195.05 - $11,976.56 = $20,218.49
LATECOMER UNIT COST FORMULA:
Assume payback period often years and an overall growth rate of 50% in latecomer area over that ten
years.
Unit Cost / ERU = Latecomer's Share + (Projected Latecomer ERU's x 50% Development)
COMPUTATION:
Unit Cost/ERU = $20,218.49 + (76 x 50%) = $532.07
REIMBURSEMENT SCHY~DULE:
Skyline Corporation paid the costs of installing the water line. The Latecomer Fee paid by each ERU
who connects to the subject water line will be paid to Skyline Corporation.
The late comer fee assessed to each L~e Comer shall be adjusted annually 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
I0/1/01 $532.07
10/1/02 $553.35
10/1/03 $575:49
10/1/04 $598.51
10/1/05 $622.45
10/1/06 $647.34
10/1/07 $673.24
10/1/08 $700.17
10/1/09 $728.17
10/1/10 $757.30