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HomeMy WebLinkAboutLate Comers Agreement with Lochsa Falls, LLC for Ten Mile Road Water Line ExtensionADA COUNTY RECORDER J. DAVID NAVARRO AMOUNT .00 13 BOISE IDAH010118104 09:01 AM DEPUTY Joanne Hooper III IIIIIIIIIIIIIIIIIIIIIIIIIIII III III RECORDED-REQUEST OF 1041~~C99 MERIDIAN CITY TEN MILE ROAD WATER LINE EXTENSION LATE COMERS AGREEMENT This Agreement made and entered into this ~ day of , 2004, by and between LOCHSA FALLS LLC, an Idaho Limited Liability Company, hereafter referred to as "Lochsa", and the CITY OF MERIDIAN, hereinafter referred to as "City." WITNESSETH: WHEREAS, the City limits extend North of McMillan Road, but prior to this Agreement and the construction referred to herein, such area was not provided water service by the City; and WHEREAS, Lochsa constructed a water line from an existing water line to an area North of McMillan Road and in Ten Mile Road as shown in Exhibit "A", which water lines are able to provide service to land North and South of McMillan Road to the land shown in Exhibit "A" which is attached hereto and by this reference incorporated as if set forth in full; that the Total Service Area is approximately 212:37 acres which, if developed under the land use density projections shown on Exhibit "B", which is attached hereto and by this reference incorporated herein as if set forth in full, with land use densities shown on Exhibit "B", there would be a total of 467 equivalent residential units (ERU) in the 212.37 acres; and WHEREAS, Lochsa and E.L. Bews, owners of another development within the aforementioned Total Service Area, have already made separate arrangements for E.L. Bews to reimburse Lochsa for a share of the cost of construction of the aforementioned water line, and to share in the amounts collected by Lochsa under this Late Comers Agreement, such that Lochsa and E.L. Bews properties shall be collectively referred to herein as "Lochsa Properties" for convenience purposes, which properties collectively consist of 88 ERU and that on the land not included in the Lochsa Properties, there would be 379 ERU; and WHEREAS, the water line constructed by Lochsa will benefit land other than only the Lochsa Properties; that the land that can be served by the said water line is shown in Exhibit "A"; that the developable land that can be served by the water line could contain 467 ERU's; that the existing developed areas that eventually connect to the water line serviced by the City TEN MILE WATER LINE LATE COMERS AGREEMENT Page 1 ,~~~~~® will be subject to the latecomer fees described herein; that seventy-eight percent (78%) of the land not included in the Lochsa Properties would be developed in ten years, the term that a Latecomers Agreement is allowed to run by law, and WHEREAS, the total cost of constructing the said water line borne by Lochsa was, $104,286.97; and the water line will benefit the Lochsa Properties which could contain 88 ERU's, or 18.84% of the total area to be benefited by the construction of the water line; therefore the cost to Lochsa to construct the water line to and through his own subdivision(s) would be $19,650.92; that by subtracting this amount as the total Lochsa's cost share, the total cost to all latecomers is $84,636.05; and then dividing by 78% of the remaining number of ERU's that could be served by the water line; and then adding 10% for City Administration Cost, there should be a latecomers fee of $315.59, plus interest, per ERU as shown in 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 an eight (8) 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 Bove 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, pursuant to Section 9-1-12 of the Water Ordinance, 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 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 AGREED AS FOLLOWS: 1. The above recitals are contractual and are incorporated herein as if set forth in full. TEN MILE WATER LINE LATE COMERS AGREEMENT Page 2 ~~~~~._L.~L 2. That Lochsa has paid or will pay for engineering, planning and construction of the water line shown in Exhibit "A", and which will benefit the land also shown in Exhibit "A". 3. Lochsa has contributed or will contribute $104,286.97 to total construction costs of the said water line, of which Lochsa is entitled to be reimbursed the sum of $84,636.05 plus interest, which represents land that could be served by the water line but is not included in Lochsa Properties. 4. That for all land in Exhibit "A" subsequently connecting to the water line referred to in Exhibit "A", except the land in the Lochsa Properties, the City will charge the sum of $315.59 plus interest, per ERU as shown in Exhibit "C"; such users shall hereafter be referred to as "LATE COMERS"; that the charge is the Water Construction Equivalency Fee authorized in section 9-1-12 and established by this Agreement, 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 "TEN MILE WATER LINE EXTENSION PROJECT REIMBURSEMENT ACCOUNT" and shall reflect interest at a rate of 6% 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 the agreement, and shall be distributed quarterly to Lochsa. 6. That the latecomer fees assessed, which will go into the TEN MILE WATER LINE EXTENSION PROJECT REIMBURSEMENT ACCOUNT, shall increase at a rate of 6% per annum as shown in Table 1 of Exhibit "D". 7. That the late comer fees shall be collected by the City from all users subsequently connecting to the water line shown in Exhibit "A" for the land also shown in Exhibit "A", except the land in the Lochsa Properties. 8. That the City shall charge the TEN MILE WATER LINE EXTENSION PROJECT REIMBURSEMENT ACCOUNT the 10% fee authorized by 9-1-13. TEN MILE WATER LINE LATE COMERS AGREEMENT Page 3 z'~~'~- 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. 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 Lochsa has been reimbursed the principal sum of $84,636.05, plus interest, as determined in Paragraph 6 or, if this is not achieved, for a period of ten (10) years or, until such time the water line described herein is abandoned. If Lochsa has not been reimbursed the principal sum plus interest less administrative fees after ten (10) years from the date of this Agreement, the Agreement may be renewed by mutual Agreement of the City and Lochsa, at such time as the City ordinance allows for extension of a ten year time frame. If the City does not amend this ordinance, then this agreement shall have a ten year life span. 12. This Agreement shall be binding on the assigns and successors of the parties hereto. DATED this ~~ day of 2004. BY: ATTEST: CITY OF MERIDIAN ~~ TAMMY DE ~ MAYOR \``4~,t~+ ~,~~~,~,,,~~~~ WILLIAM G. BERG, JR., CITI~ CLF~$~K ~ r~ ti~ `~'~ •~ Q ~ Approved By City Council the ~ day of ~ ~, , 2004. ~ ~ `"' r; r < ~ `~ i °'~' { . (corporate seal) TEN MILE WATER LINE LATE COMERS AGREEMENT Page 4 ."w a ", ~ Lochsa Falls, LLC. By ~~,,n,,.~ Marty goldsmith, Member TEN MILE WATER LINE LATE COMERS AGREEMENT Page 5 ~'agP ~ 0~ STATE OF IDAHO ) } ss. County of Ada, ) On this ~ day of ~~~~, , 2004, before me, the undersigned, a Notary Public in and for said State, personally appeared TAMMY DE WEERD 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 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. '~4ecseer.•^RnRa, ,;e :,. ~,~o ~,~~®~®®~e.~.~eo y.,~,. (SEAL) ~ '~ b° ^~.•'~. .~~. T ~ ~ ~ ~"'' '~.1~` a ~ `~ Y}'i ® ~ O ~' ay~j 9® fir., o ?' ~ }; . STATE OF IDAHO ) } ss. County of Ada ) `'r ~~N TARY P LIC FOR IDAHO Pg ~~*` Residing at: ;,y°~ Commission Expire -a- On this I b~ day of ~e.~-~'unn et' , 2004, before me, the undersigned, a Notary Public in and for said State, perso 11 yan ppeared MARTY GOLDSMITH, known and identified to me to be the member of LOCHSA FALLS L.L.C. that executed the instrument or the person who executed the instrument on behalf of said limited liability company, and acknowledged to me that such limited liability company executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this ~.~~i~l~~:te first above written. ~ !- ..«w. ~'l ~pTgRr NOTARY PUBLIC FOR IDAHO (SEAL) * ~~~ * • Residing at: -"-~~ ~ °~;~~w ~,UB1.1C. Commission expires: ~'12~ 0~. ~!' ti. ~O T~T~ OF 19~:•~ TEN MILE WATER LINE LATE COMERS AGREEMENT Page 6 Page~n~ d W U W H O QH Z H~ ~~ W W ~ W W Z W H w O O H O W z a as d~ ~~ ~U z~x ~~ ~'a~~¢!~ EXHIBIT B LATECOMER'S AREA ERU's Protected ID PARCEL OWNER ACREAGE ZONECODE per acre ERU's 15111 S0427141800 JANICEK PROPERTIES LLC 27.740 RUT 2.80 78 15112 S0427142323 JOHNSON MICHAEL L & 2.265 RUT 2.80 6 15148 S0428233815 GOLDSMITH MARTY 25.42 RUT NA 71 15114 S0427410000 " BEWS E L 40.000 RUT 2.80 112 15124 S0427430000 BEWS E L 40.000 RUT 2.80 112 135.43 379 Denotes portion of parcel within latecomer's area Note: Any parcel less than 1.0 acre not considered for redevelopment and assigned 1 ERU P- EXHIBIT B -CONT. DEVELOPER'S AREA ERU's Projected ID PARCEL OWNER ACREAGE ZONECODE per acre ERU's 15151 S0427430000 SEWS E L 76.940 1.14 88 Denotes portion of parcel within developer's area ~~~ EXHIBIT B -CONT. SUMMARY: Acreage ERU's Developer's Area Only: 76.94 88 Latecomer's Area Only: 135.43 379 Total Net Benefit Are (incl. Developer's area) 212.37 467 Area Basis ERU Basis Percentage Developer's: 36.23°~ 18.84% Percentage Latecomer's: 63.77% 81.16% raee~-~ EXHIBIT C ERU DETERMINATION: Total Service Area = 212.37 Gross Acres Latecomer's Service Area = 135.43 Gross Acres Projected Percent of ERU's Total ERU's TOTAL SERVICE AREA: 467 100.00% DEVELOPERS AREA: 88 18.84% LATECOMER'S AREA: 379 81.16% FEE COMPUTATION: DEVELOPER'S CONTRIBUTION (ve rified from billings): $104,286.97 PORTION ATTRIBUTABLE TO DEVELOPER'S SUBDIVISION: (Developer's % of projected total ERU's) X (Developer's Contribution) 18.84% X $104,286.97 = $19,650.92 PORTION OF DEVELOPER'S CONTRIBUTION ELIGIBLE FOR REIMBURSEMENT: (Latecomer's % of projected total ERU's) X (Developer's Contribution) 81.16% X $104,286.97 = $84,636.05 LATECOMER FEE PER ERU: (Eligible Reimbursement) / (Latecomer's ERU's) $84,636.05 / 379.01 = $223.31 REIMBURSEMENT BASIS: (Latecomer fee per ERU) / (% Developed burring Payback Period) Payback Period (years) 10 Development Percentage = 78% $223.31 / 78% _ $286.90 ADMINISTRATIVE FEE: (Reimbun~ement Basis) X (110% - (10% Administrative Fee)) $286.90 X 110% _ $315.59 ~~~ EXHIBIT D REIMBURSEMENT SCHEDULE: The developer paid the costs of instating the sewer line. The Latecomer fee paid by each parcel, or portion thereof, who connects to the subject sewer line will be paid per the above agreement. The fees assessed to each latecomer shall be adjusted annually on October 1st, at an annual percentage rate of 6%. The latecomer fees shall be: Effective Date Latecomer Fee per ERU October 1, 2003 $315.59 October 1, 2004 $334.53 October 1, 2005 $347.91 October 1, 2006 $361.83 October 1, 2007 $376.30 October 1, 2008 $391.35 October 1, 2009 $407.00 October 1, 2010 $423.28 October 1, 2011 $440.22 October 1, 2012 $457.82 October 2, 2013 $476.14 '~~3~..o~S.~ Parcels Ex acted to Develo Within 10 Years ERU's Projected ID PARCEL OWNER ACREAGE ZONECODE er acre ERU's 15148 S0426233815 GOLDSMITH MARTY 25.42 RUT NA 71 15114 S0427410000 BEWS E L 40.000 RUT 2.80 112 15124 S0427430000 BEWS E L 40.000 RUT 2.80 112 Totals of arcels ex cted to develo within the next 10 ears: 105.42 295 °~ of parcels to develop within the Total Service Area within the next 10 years: Area Basis ERU Basis (excluding the Developer's Area) 77.84°~ 77.83% * Denotes only part of parcel is included. -J~~