HomeMy WebLinkAboutLate Comers Agreement with Farwest, LLC for Linder Road Water Line ExtensionLINDER ROAD WATER LINE EXTENSION
LATE COMERS AGREEMENT
This Agreement made and entered into this /6~ day of ~ , 2003, by
and between FARWEST LLC, an Idaho Limited Liability Company, hereafter referred to as
"Farwest", 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, Farwest constructed a water line from an existing water line to an area
North of McMillan Road and in Linder 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 369.36 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 1,075 equivalent residential units (ERU) in the 369.36 acres; and
WHEREAS, Farwest and Paramount LLC, owners of another development within the
aforementioned Total Service Area, have already made separate arrangements for Paramount to
reimburse Farwest for a share of the cost of construction of the aforementioned water line, and to
share in the amounts collected by Farwest under this Late Comers Agreement, such that Farwest
and Paramount properties shall be collectively referred to herein as "Farwest Properties" for
convenience purposes, which properties collectively consist of 390 ERU and that on the land not
included in the Farwest Properties, there would be 686 ERU; and
WHEREAS, the water line constructed by Farwest will benefit land other than only the
Farwest 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 1,075 ERU's;
that the existing developed areas that eventually connect to the water line serviced by the City
CINDER WATER LINE LATE COMERS AGREEMENT
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will be subject to the latecomer fees described herein; that sixty-eight percent (68%) of the land
not included in the Farwest 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 Farwest was, is or
will be $266,096.45; and the water line will benefit the Farwest Properties which could contain
390 ERU's, or 36.23% of the total area to be benefited by the construction of the water line;
therefore the cost to Farwest to construct the water line to and through his own subdivision(s)
would be $96,404.25; that by subtracting this amount as the total Farwest's cost share, the total
cost to all latecomers is $169,692.20; and then dividing by 68% 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 $400.73, 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 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, 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.
CINDER WATER LINE LATE COMERS AGREEMENT
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2. That Farwest 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. Farwest has contributed or will contribute $266,096.45 to total construction costs
of the said water line, of which Farwest is entitled to be reimbursed the sum of $169,692.20 plus
interest, which represents land that could be served by the water line but is not included in
Farwest 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 Farwest Properties, the City will charge the sum of
$400.73 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 "CINDER 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 Farwest.
6. That the latecomer fees assessed, which will go into the CINDER 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 Farwest Properties.
8. That the City shall charge the CINDER WATER LINE EXTENSION
PROJECT REIMBURSEMENT ACCOUNT the 10% fee authorized by 9-1-13.
CINDER WATER LINE LATE COMERS AGREEMENT
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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 Farwest has been reimbursed the
principal sum of $169,692.20, 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 Farwest has not been reimbursed the principal sum plus interest less
administrative fees after ten (10) years from the date of this Agreement, the Agreement maybe
renewed by mutual Agreement of the City and Farwest, 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 ~d ~ day of p~ , 2003.
BY:
MERIDIAN `\\~u~~~iiiiiiur~~~
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D. CORRIE, AY(~R _
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ATTEST:
Approved By City Council the ~ day of , 2003.
(corporate seal)
UNDER WATER LINE LATE COMERS AGREEMENT
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ILLIAM G. BERG, ., ITY C ~ Y ~ `0~~~```\
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FARWEST, LLC.
By: Developer Services, Inc. ' s Me er
C
By
Br i . Mc 11, its President
STATE OF IDAHO )
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County of Ada, )
On this ~`~day of ~~.t~/ , 2003, 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 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.
(SEAL)
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NOTARY PUBLIC FOR IDAHO
Residing at: ,~c(~ Cvcvrc~y ~J~~
Commission Expires: ~! ~ 2 $ _p
STATE OF IDAHO. )
County of Ada.
ss.
On this ~ day of ,~ , 2003, before me (here insert the
name and quality of the of er), personally appeared Brian F. McColl, known and
identified to me to be the President of Developers Services, Inc., an Idaho corporation
and member of Farwest LLC, 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 certificate first above written.
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TEN MILE SEWER LINE LATE COMERS AGREEMENT
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EXHIBIT B
LATECOMER'S AREA
ERU's Projected
ID PARCEL OWNER ACREAGE ZONECODE per acre ERU's
14484 S0436223400 EBBINGHAUS JOHN R JR 7.320 RUT 2.80 20
14485 S0436223250 BRUCK JACK L 1.200 RUT 2.80 3
14486 S0436223100 BRUCK JACK L 5.920 RUT 2.80 17
14487 S0436223050 HUFFMAN DONALD R & LINDA 10.300 RUT 2.80. 29
14492 S0436223440 ENGLISH BRIAN L & 4.800 RUT 2.80 13
14493 S0436223550 CONVERSE ALAN K & 5.000 RUT 2.80 14
14494 S0436223570 FISHER FRANK N & 3.820 RUT 2.80 11
14495 S0436223580 FISHER FRANK N & 1.000 RUT 1.00 1
14496 S0436233860 " YORGASON J RAMON 11.510 RUT 2.80 32
14583 S0435110025 SEWS E L 40.000 R-4 4.00 160
14589 S0435141800 " BRINEGAR E E 11.510 RUT 2.80 32
15154 S0426417200 NELSON CATHERINE L 2.790 RUT 2.80 8
15155 S0426417220 LUKEHART BEN W 2.480 RUT 2.80 7
15159 S0426449900 FULFER KELLY 19.600 RUT 2.80 55
15162 S0426449740 FULFER JACK G 9.090 RUT 2.80 25
15163 S0426449850 FULFER KELLY 8.440 RUT 2.80 24
15164 S0426449825 FULFER KELLY 1.150 RUT 2.80 3
15167 S0425223000 ' HUARTE FAMILY TRUST 15.000 RUT 2.80 42
15175 S0425233700 STEWART ARCHIE D & 5.000 RUT 2.80 14
15181 S0425233800 KOOYERS SHERIDAN C 1.890 RUT 2.80 5
15186 S0425233880 KOOYERS SHERIDAN C 1.223 RUT 2.80 3
15193 S0425325425 GOLDSMITH MARTY 0.585 RUT 1.00 1
15194 S0425325460 `MERIDIAN JOINT SCHOOL DIST NO 2 37.120 RUT 2.80 104
15198 S0425325500 STRUCKMAN DONN AND 2.310 RUT 2.80 6
15199 S0425336040 HANKS RONALD G & 1.140 R1 1.00 1
15201 S0425336560 ' LEGARRETA FULGENCIO 19.000 RUT 2.80 53
15204 S0425336090 LEGARRETA FULGENCIO 1.000 RUT 1.00 1
230.20 686
Denotes portion of parcel within latecomer's area
Note: Any parcel less than 1.0 acre not considered for redevelopment and assigned 1 ERU
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EXHIBIT B -CONT.
DEVELOPER'S AREA
ERU's Projected
ID PARCEL OWNER ACREAGE ZONECODE per acre ERU's
15139 S0426120650 LEROY E BRANDY FAMILY LIMITED LIABILITY PARTNERSHIP 15.00 RUT 2.80 42.00
15145 S0426244210 GOLDSMITH MARTY 20.00 RUT 2.80 56.00
15146 S0426244210 GOLDSMITH MARTY
15149 " S0426141810 GOLDSMITH MARTY 20.00 RUT 2.80 56.00
15153 " S0426427810 GOLDSMITH MARTY 33.10 RUT 2.80 92.68
15176 S0425233605 PARAMOUNT LLC 10.000 RUT 2.80 28
15188 S0425233690 PARAMOUNT LLC 17.360 RUT 2.80 49
15182 S0425233885 PARAMOUNT LLC 2.717 RUT 2.80 8
15190 S0425233910 PARAMOUNT LLC 2.300 RUT 2.80 6
15200 S0425336080 PARAMOUNT LLC 18.680 RUT 2.80 52
139.16 390
' Denotes portion of parcel within developer's area
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EXHIBIT B -CONT.
SUMMARY:
Acreage ERU's
Developer's Area Only: 139.16 390
Latecomer's Area Only: 230.20 686
Total Net Benefit Are (incl. Developer's area) 369.36 1,075
Area Basis ERU Basis
Percentage Developer's: 37.68% 36.23%
Percentage Latecomer's: 62.32% 63.77%
P~
EXHIBIT C
ERU DETERMINATION:
Total Service Area = 369.36 Gross Acres
Latecomer's Service Area = 230.20 Gross Acres
Projected Percent of
ERU's Total ERU's
TOTAL SERVICE AREA: 1,075 100.00%
DEVELOPERS AREA: 390 36.23%
LATECOMER'S AREA: 686 63.77%
FEE COMPUTATION:
DEVELOPER'S CONTRIBUTION (verified from billings): $266,096.45
PORTION ATTRIBUTABLE TO DEV ELOPER'S SUBDIVISION:
(Developer's % of projected total ERU's) X (Developer's Contribution)
36.23% X $266,096.45 = $96,404.25
PORTION OF DEVELOPER'S CONTRIBUTION ELIGIBLE FOR REIMBURSE MENT:
(Latecomer's % of projected total ERU's) X (Developer's Contribution)
63.77% X $266,096.45 = $169,692.20
LATECOMER FEE PER ERU:
(Eligible Reimbursement) / (Latecomer's ERU's)
$169,692.20 / 685.85 = $247.42
REIMBURSEMENT BASIS:
(Latecomer fee per ERU) / (% Developed burring Payback Period)
Payback Period (years) = 10
Development Percentage = 68%
$247.42 / 68% _ $364.30
ADMINISTRATIVE FEE:
(Reimbursement Basis) X (110% - (10% Administrative Fee))
$364.30 X 110% _ $400.73
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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 $400.73
October 1, 2004 $424.77
October 1, 2005 $441.76
October 1, 2006 $459.43
October 1, 2007 $477.81
October 1, 2008 $496.92
October 1, 2009 $516.80
October 1, 2010 $537.47
October 1, 2011 $558.97
October 1, 2012 $581.33
October 2, 2013 $604.58
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