HomeMy WebLinkAboutSewer Late Comers Agreement with Farwest, LLC for Farwest Developers Overland and Locust Grove SEWER LATE COMERS AGREEMENT
FARWEST DEVELOPERS
This Agreement made and entered into this 23rd day of October, 2001, by and between
FARWEST LLC, an Idaho Limited Liability Company, hereafter referred to as "Developer", and the
CITY OF MERIDIAN, hereafker referred to as "City"
WITNESSETH:
WHEREAS, the City limits extend south of Overland Road and east and west of Locust Grove
Road, including Salmon Rapids and Los Alamitos Park Subdivisions, but prior to this Agreement and
constmefion referred to herein, a portion of such area w~s not provided sewer service by the City; and
WHEREAS, in 1995 the Developer extended sewer line(s) from existing sewer line(s) to an
area south of Overland Road and east and west of LoCUst Grove Road which sewer line extensions
were able to provide service to land south of Overland Road and east and west of Locust Grove Road;
and
WHEREAS, the sewer main constructed by the Developer 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 1995 will benefit other
land than only the land developed by Developer; that the land that can be served by the 1995 sewer
line(s) is shown in Exhibit "A", which is attached hereto and by this reference incorporated herein as if
set forth in full; that the land totals approximately 118.25 acres which, if developed under the zoning
SEWER LATE COMERS AGREEMENT Page - 1
shown on Exhibit "B", which is attached hereto and by this reference incorporated herein as if set forth
in full, with densities allowed in the zones shown on Exhibit "B", there could be 344 equivalent
residential units (ERL0 in the 118.25 acres; that the Developers subdivision(s) consists of 259 ERU in
87.93 acres; that on the basis that 75% of the land not included in the l)eveloper's subdivision would
be developed in ten years, the term that a late comers Agreement is allowed to mn, there could he 85
ERUin 10 years; and
WHEREAS, the total cost of constructing the 1995 sewer line(s) was borne by l)eveioper at a
cost of $25,781.05; whereas the sewer line(s) will benefit subdivisions which are being or have been
developed by l)eveloper and those subdivisions will comain 259 ERU on 8T93 acres, or 74.35% of
the total projected ERU to be benefited by the construction of the sewer line(s); therefore the cost to
Developer to provide sewer service to his own subdivisions would be $19,168.21; that by subtracting
the $19,168.21 from the total cost of $25,781.05, the total cost to all late comers is $6,610.26; and
then dividing the remaining projected number of ERU of 85 that could be served by the sewer line(s),
there should be a late comers fee of $103.69, plus interest, per ERU as shown in Exhibit "B"; 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 emended sewer line(s) shall he 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 contributed to the cost of the extended line; the above
fee is hereafter referred to as '~Late Comer Fee"; the above ordinance section provides that the hte
comers fee may he used to reimburse the person or persons so emending 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 expemas 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 connection charge which shall be known and referred to as the "Sewer
Constmetion Equivalency Fee".
NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:
1. The above recitals 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 "A".
3. The Developer has contributed $25,781.05 to total co~ruction costs of the above
sewer line(s) of wbich Developer is entitled to be reimbursed the sum of $6,610.26 plus interest, as
shown in Exhibit "B", 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 "A", subsequently conneeting to the sewer
line(s) referred to in Exhibit "A", except the land in Fa'west Developers subdivisions, the City will
charge the sum of $103.69 plus interest, per ERU as shown in Table m. ofExbibit '~B"; such users
shall hereafter be regraied to as HLATE COMERS"; that the charge is the sewer construction
equivalency fee authorized in 9-4-18 and established by this Agreement, which fee shall herein be
referred to as "LATE COMF_~ 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 "B" 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 ac. count to be designated the "FARWEST DEVELOPERS SEWER
PROJECT REIMBURSEMENT ACCOUNT" and shall be distributed quarterly to the Developer.
6. That the late comer fees assessed, which will go into the FARWEST DEVELOPERS
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SEWER PROJECT REIMBURSEMENT ACCOUNT, shall increase at a rate of 4% per annum;
the late comer fees for years 1 through 10 are shown in Table Ill of Exhibit "B";
7. That the late ¢om~ fees shail be collected by the City from all users subsequently
connecting to the line in Exhibit "A" for ERU in the land described in Exhibit "A", except the land in
Farwest Developer subdivisions.
8. That the City shall charge the FARWEST DEVELOPERS SEWER PROJECT
REIMBURSEMENT ACCOUNT the 10% administrative charge as authorized under 9-4-19.
9. That the City shall have prepared on an annual hasis an audit of ail 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 tbe sewer line(s) referanced in Exhibit "A" is the property of tbe 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 principai
sum of $6,610.26 plus interest, as determined in Paragraph 6, less the 10% administrative fee or, if this
is not achieved, for a period often (10) years. If the Developer has not been reimbursed the principai
sum plus inte~st less administrative fees after ten (10) yeats from the date of this Agreement; the
Agreement may be renewed 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. 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 AGREE-2vlENT Page - 4
DATED this Z~ day of (~_'~e.c ,2001.
BY:
ATTEST:
STATE OF IDAHO,)
~ $S.
County of Ada,)
On this~-~y of ~ ,2001, before me, the undersigned, a Notary Public in
and for said State, personally appeared ROBERT D. CORRIE and WILLIAM G. BERG, JR., known
to me to be the Mayor and City Clerk of the CITY OF btERIDIAN, Idaho, and who executed the
within instrument, and acknowledged to me that the CITY OF MERIDIAN executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day
and year first above written.
NOTARY PUBL_I~2 FOR IDAHO
RESIDING AT.,~
MY COMMISSION EXP{RE //-a,,~irO f~
SEWER LATE COMERS AGREEMENT Page - 5
FARWEST LLC
(corporate seal)
STATE OF IDAHO,)
~ SS.
County of Ada, )
Onthis~" dayof ~, ,2001, bef. oreme, the undersigned, a Notary Public in and
for said State, personally appeared ~M~ 4% (.9~$~.{-~x~ , known to me to be
the ~V~e,.~ t~.~r ofFARWEST LLC, an Idaho Limited Liability Company,
and who execut~ the within instrum~ on behalf of said Limited Liability Company, and
acknowledged to me that said Limited Liability Company executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and a~xed my official seal the day
and year first above written.
SEAL
MY CO mSSIO
SEWER LATE COMERS AGREEME~IT Page - 6
Farwest Developer's Sewer Latecomer Agreement
Exhibit 'A"
......... Sewer Mainline
500 0 500 1000 Feet
Goldsmith service area , ~
Farwest Developers Sewer Latecomer's Agreement
Exhibit "B"
AREA DETERMINATION:
DEVELOPER'S AREA & ERU DETERMINATION
SUBDIVISION NAME ZONE ACRES ' DENS1TY ERU'S % OF TOTAL
Salmon Rapids Subdi~sion No. 1, R4 15.41 2.92/Ac. 45 13.03
Salmon Rapids Subdivision No. 2 R4 1.02 1.92/Ac~ 2 0.86
Salmon Rapids Subdivision No. 3 R-4 10.06 3.28/Ac. 33 8.51
SalmOn Rapids Subdivision No. 4 R-4 15,55 3.28/Ac. 51 13.15
Los Alamito~ Park Subdivision No. 1 R4 8.16 2.82/Ac. 23 6.90
Los Alamitce Park Subdivision No.1 R-4 15.53 3.03/Ac. 47 13,13
Los Alamitos Park Subdivision No,1 R-4 22.20 2.61/Ac. 58 18.77
Totals 87.93 259 74.35
TABLE I
LA TECOMER'S AP.,__Ed & ER U DETERMINA TION
SUBDIVISION/PARCEL NAME ZONE ACRES DENSITY ERU'S % OF TOTAL
Tamwood Subdivision R4 12.80 2.50/Ac. 32 10.83
S1120325425 (Williamson) RT 1.36 :1:3.04/Ac. 4 1.15
Sl120325550 (Babbitt) RT L01 :k3.04/Ac. 3 0.85
S1120325725 (Jennings) RT 1.33 ff-3.04/Ac. 4 1.13
S1120325652 (Sooter) RT 2.76 +3.04/Ac. 8 2.33
S1120325750 (Babbitt) RT 5.96 :k3.044Ac. 18 5.04
S1120325777 (Sl'dpley) RT 5.10 ff3.04/Ae. 16 4.31
Totals 30.32 85 25.64
TABLE I[
(Developer's Area Total + Latecomer's Area Total = Total Service Area)
87.93 Acres + 30.32 Acres = 118.25 Acres
DEVELOPER'S OFF-SITE SEWER CONTRIlilJTION:
$25,781.05 From Billings
DISTRIBUTION OF DEVELOPER'S CONTRIBUTION:
Developer's Off-Site Sewer Contribution:
Developer's Actual/Propesod ERU's:
Developer's Pementage of Total Service Are~
Developer's Share of Off-Site Constmc'fion Co~:
Latecomer's Sha~e of Off-Site Construction Costs:
(74.35% x $25,781.05) =
(25.64% x $25,781.05) =
$25,781.05
259
74.35%
$19,168.21
$6,610.26
(Latecomer's Share of Off-Site Construction Costs / Latecomer's Total ERU's = Latecomer's Fee)
$6,610.26 / 85 ERU's = $77.77 per ERU
$77.77 / 75% = $103.69 per ERU Latecomer Fcc
Assuming a payback period of ten years, and an overall rate of growth ct 75% within the latecomer's area over that
ten years.
Farwest Developers Sewer Lateeomer's Agreement
REIMbURSEMeNT SCHEDULE:
The fees assessed to each latecomer ~h~ll be adjusted annually on O~ober t~, at a rate of 4.00% p~r annum. The
latecomer fes shall be as follows:
Effective Date Latecomer Fee per ERU
October 1, 2001 $98.23
October 1, 2002 $107.84
October 1, 2003 $112.15
October 1~ 2004 $116.64
October 1, 2005 $121.30
October 1, 2006 $126.15
October 1~ 2007 $131.20
October 1~ 2008 $136.45
October 1~ 2009 $141.91
October 1, 2010 $147.58