HomeMy WebLinkAboutWater Late Comers Agreement with Farwest, LLC for Farwest DevelopersWATER LATE COMERS AGREEMENT
FARWEST DEVELOPERS
This Agreement made and entenxl 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, hereafter referred to as "City"
WlTNESSETH:
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
construction referred to herein, a portion of such area was not provided water service by the City; and
WHEREAS, in 1995 the Developer extended water line(s) from existing water line(s) to an
area south of Overland Road and east and west of Locust Grove Road which water line extensions
woe able to provide service to land south of Overland Road and east and west of Locust Grove Road;
and
WHEREAS, the watec 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) constructed by the Developer in 1995 will benefit other
land than only the land developed by Developer, that the land that can he served by the 1995 water
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 124.80 acres which, if developed under the zoning
shown in Table I 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 in Table I on Exhibit "B" there could be
LATE COMERS AGREEMENT Page - 1
366 equivalent residential units (ERU) in the 124.80 acres; that the Developer's subdivision(s) consists
of 281 ERU in 94.48 acres; that 75% 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 85
ERU in 10 years; and
WHEREAS, the total share of the cost of constructing the 1995 water line(s) borne by
Developer was $61,005.10; whereas the water line(s) will benefit subdivisions which are being or have
been developed by Developer and those subdivisions wilt contain 281 ERU on 94.48 acres, or 75.71%
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 $46,186.96; that by subtracting
the $46,186.96 fi.om the total cost of $61,005.10 and then dividing by the remaining projected number
of ERU of 85 that could be served by the water line(s), there should be a late comers fee of $232.44
plus interest, per ERU as shown in Exhibit "B"; and
WHEREAS, Section 9-1-t3 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 erumded water line(s) shall be charged a ten (10) inch diameter water
line equivalency fee; said fees are in ~ddition to the connection and user charges normally assessed a
user due to tho fact the user has not conm'buted 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 late comers
fee may be used to reimburse the person or persons so extending the water line(s).
WHEREAS, pursuanf to 9-1-12, the City is required to charge a Water 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 water line, whether that construction
has been performed by the City, a local improvement district or a private entity, or combination
LATE COMERS AGREEMENT Page - 2
thereof, and who subsequently desires to 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 AGRF. FI3 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 conslmcted the trunk water line(s)
shown in Exl,abit "A", and which will berteflt the land shown in Exhibit "A".
3. The Developer has conm'buted $61,005.10 to total construction costs of the above
water line(s) of which Developer is entitled to be reimbursed the sum of $14,818.14 plus interest, as
shown in Exhi'bit "B", 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 "A", subsequently connecting to the
water tine(s) referred to in Exl~'oit "A", except the land in Farwest Developers subdivisions, the City
will charge the sum of $232.44 plus interest, per ERU as shown in Table III of Exhibit "B"; such users
shall hereafter be referred to as 'q_,ATE COMERS"; that the charge is the water construction
equivalency fee authorized in 9-1-12 and established by this Agreement, which fee shall herein be
referred to as 'Z,ATE 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 "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 account to be designated the "FARWEST DEVELOPERS WATER
PROJECT REIMBURSEMENT ACCOUNT" and shall reflect interest at a rate of 4% to be
accrued on the unpaid balance once a year at the City's Fiscal Year End, 9/30 each year for the term of
LATE COMERS AGREEMENT Page - 3
the agreement, and shall be distributed quarterly to the Developer.
6. That the late comer fees assessed, which will go into the FARWEST DEVELOPERS
WATER PROJECT REIMBURSF_.3~NT ACCOUNT, shall increase at a rate of 4% per
annum as shown in Table HI of Exhibit "B".
That the late comer fees shall 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 Developers subdivisions.
8. That the City shall charge the FARWEST DEVELOPERS WATER PROJECT
REIMBURSEMENT ACCOU31T the l 0% administrative charge as authorized under 9-1-13.
9. That the City shall have prepared on an annual basis an audit of all fimds 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 Ag~ement shall be until Developer has been reimbursed the principal
sum of $14,81g.14 plus interest, as determined in Paragraph 6, less the 10% admini~halive fee or, if
this is not achieved, for a period often (10) years or, until such time the water line described herein is
abandoned. If the lleveloper has not been reimlmrsed the principal sum plus interest less
administrative fees after ten (10) years fi.om the date of this Agreement, the A4;reement 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 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 water line.
LATE COMERS AGRg. gMENT Page - 4
12. This Agreemem shall be binding on the assigns and successors of the parties hereto.
DATED this ~ay of OoJco~'' ,2001.
BY:
ATTEST:
~T DTcoRRIE~ MAYOR- - ~
WILLIAM G. BERG, JR.,//CiT~ CLERK
STATE OF IDAHO,)
~ SS.
County of Ada,)
On this~ S~ay of ~ ,2001, before me, the undersigned, a Notary Public in
and for said Star personally appeared ROBERT D. CORRIE and WIII.IAM G. BERG, JR., known
to me to be the Mayor and City Clerk of the CITY OF MERIDIAN, Idaho, and who executed the
within instmme~, 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 PUBLIC FOR IDAHO
RESIDING AT ~
MY COMMISSION EXPmES
LATE COMERS AGREEMENT Page - 5
FARWEST LLC
(corporate seal)
STATE OF IDAHO,)
~ ~S.
County of Ada, )
On this L~_4~day of Oe.~k~ ,2001, before me, the undersigned, a Notary Public in and
for said State, personally appeared N/~ -~. (--~o~e~ S~-~ , known to me
tobethe }tM&,r~v,~,.~ IX. aL,.a~.~a4' ofFARWESTLLC, an ldaho Limited
Liability Company, and who executed the within instrument 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 at'fixed my official seal the day
and year first above written.
SEAL
LATE COMERS AGREEMENT Page - 6
S:kl~blie Worka~.ober t_F~L~eCom~ms~RF.Fa-we~t.lateeomem-wa~r Agmem~a~.d~c
Farwest Developer's Water Latecomer Agreement
Exhibit "A"
Water Mainline
Goldsmith service area
500 0 500 1000 1500 Feet
Farwest Developer's Water Latecomer's Agreement
Exhibit "B'
SUBDMSION NAME ZONE ACRES DENSITY ERU'S % OF TOTAL
Salmon Rapids Subdivision No. I R-4 15Al 2.92/Ac, 45 12.35
Salmtm Rapids Stlbdivision No. 2 R-4 1.02 1.92/Ac. 2 0.82
Salmon Rapids Subdivision No. 3 R-4 10.06 3.28/Ac. 33 8.06
Salmon Rapids Subdivizion No. 4 R-4 15.55 3.28/Ac. 51 , 12,46
~mlmoll Rapids Subdivision No. 5 R4 6.55 3.36/Ac. 22 5.25
L~ Alamitos Pafir Subdivision No. 1 R4 8.16 2.g ,2/Ac. 23 6.54
Los Alamitos Park Subdivision No.l R-4 15.53 3.03/Ac. 47 12,44
Los Alamitos Park Subdivision No. 1 R4 ,22.20 2.6l/Ac. 58 17.79
Totals 94.48 281 75.71
LA TECOMER'$ AREA & ERU DETERMINATION
SUBDIVISION/PARCEL NAME ZONE ACRES DENSITY ERU'S % OF TOTAL
Tarawood Subdivision R-4 12.80 ,2.50/A¢. 32 10.25
Sl120325425 (Willinmnon) ' RT 1.36 _~3.04/Ac. 4 1.09
S1120325550 (Babbitt) RT 1.01 ~3.04/Ac. 3 0.81
Sl120325725 (Jenninss) ' RT 1.33 :k3.04/Ac. 4 1.06
S1120325652 (Sooter) RT 2.76 ,+.3.04/Ac. 8 2.21
S1120325750 (Babbitt) RT 5.96 :~3.04/Ac. 18 4.78
SI 120325777 ($hipley) RT 5.10 +_3.04/A¢, 16 4.09
Totals 30.32 85 24.29
(Developer's Area Total + Latecomer's Area Total = Total Service Area)
94.48 Acres + 30.32 Acres = 124.80 Ac~es
DEVELOPER'S OFF-SITE WATER CONTRIBIYlION:
$61,005.10 F~om Billings
DISTRIBUTION OF DEVELOPER, S CONTRmUTION:
Developer's Off*Site Water Co~lrilmlton:
Developer's Actual/Prolx~ ERU's:
Developer's Pereenlagc of Total Service Axe~
Developer's Share of Off-Site ~cfion Costs:
Latccomer's Share of off-Site Conslrucfion Costs:
(75.71% x $61,005.10) =
(24.29% x $61,005,10) =
$61,005.10
281
75.71%
$46,186.96
$14,818.14
(Latecemer's Share of Off-Site Col~slnmfion Costs / Lateeomer's Total ERU's = Latecomer's Fee)
$14,818. I4 / 85 ERU's -- $174.33 per ERU
$174.33 / 75% = $232.44 ~ ERU Lnl~mer Fee
Ass~mlng a ~ period often yem's, and an overall rate of gsowth of 75% wJthln thc latecomer's area over that
ten years.
Farwest Developer's Water Late omer's Agreement
REIMBURSEI~NT SCHEDUI.3i::
The fees assessed to each latt~m~r ~h~H be adjusted annually on October 1~, at a rate of 4.00% p~ annum. The
lat~mer icc shall be as follows:
Rffeetive,Date Latecomer Fee'per ERU
October 1, 2001 $232.44
October 1~ 2002 $24!,74
October 1, 2003 $251.41
Octobcr 1, 2004 $261.47 '
October Ir 200~ $271.93
October 1, 2006 $282.81
October 1, 2007 $294.12
October 1~ 2008 $305.88
Octobea' 1, 2009 $318.12
October 1~ 2010 $330.84