HomeMy WebLinkAboutWater Line Late Comers Agreement with Capital Development, Inc. for Baldwin ParkWATERLINE LATE COMERS AGREEMENT
BALDWIN PARK WATER LINE EXTENSION
CAPITAL DEVELOPMENT, INC.
This Agreement made and entered into this /~~day of ~~~~ 2003, by and between
CAPITAL DEVELOPMENT, INC., an Idaho Corporation, hereafter referred to as "Developer",
andtheCITYOF MERIDIAN, hereafter referred to as "City"
WITNESSETH:
WHEREAS, the City limits extend north of Ustick Road, but prior to this Agreement and
the construction referred to herein, such areawas not provided water service by the City; and
WHEREAS, the Developer constructed a water line from an existing water line to an area
east and west of Linder Road and north of Ustick Road, as shown in "Exhibit A", which water
line is able to provide service to land north of Ustick 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 179.75 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 could be 449 equivalent residential
units (ERU) in the 179.75 acres; that the Developers subdivision(s) consists of 59 ERU; that on the
land not included in the Developer's subdivision, there could be 390 ERU; and
WATER LINE LATE COM ERS AGREEM ENT Page - 1 of 6
WHEREAS, the water line constructed by the Developer will benefit land other than only
the land dev~oped by Developer; that the land that can be served by the said water line is shown in
Exhrbit "A";that the develop able land that can be served by the water line could contain 449 ERU's;
that the existing developed areas that eventually connect to the water line serviced by the City will
be subject to the latecomer fees described herein; that 80% of the land not included in the
Developer's subdivision would be developed in ten years, the term a late comers Agreement is
allowed to run, and
WHEREAS, the total cost of constructing the said water line borne by the Developer was
$109,790.00; whereas the water line will benefit the Developer's Subdivision(s) which could
contain 59 ERU's, or 13.1% of the total area to be benefited by the construction of the water line;
therefore the cost to Developer to construct the water line to his own subdivision(s) would be
$14,415.83;that by subtractingthis amount as the total Developer's cost share, the total cost to all
late comers is $95,374.17; and then dividing by 80% of the remaining number of ERU's that could
be served by the water line; and then adding a 5% administration fee to be included with each Late
Comer payment (City Code Section 9-1-13), there should be a late comers fee of $320.69, 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;
WATER LINE LATECOMERS AGREEMENT Page - 2 of 6
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 AGRF,ED AS FOLLOWS:
1. The above recitals are contractual and are incarp orated herein as if set forth in full
2. That the Developer has paid 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. The Developer has contributed $109,790.00 to total construction costs of the said
water line; of which Developer is entitled to be reimbursed the sum of $95,374.17 plus interest,
which represents land that could be served by the water line but is not included in Developer's
subdivision.
4. That for all land in Exhibit "A" subsequently connecting to the water line referred to
in Exh>bit "A", except the land in Developer's Subdivision(s), the City will charge the sum of
$320.69 plus interest, perERU as shown in Exhibit "C";such user, shall hereafter be referred to as
"LATE COMERS"; that the charge is the water construction equivalency fee authorized in 9-1-12
WATER LINELATECOMERS AGREEMENT Page- 3 of 6
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 speaal account to be designated the "BALDWIN PARK WATER LINE PROJECT
REINIBURSENII+I~1T ACCOUNT" and shall reflect interest at a rate of 6% to be accnied 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 the Developer.
6. That the late comer fees assessed, which will go into the BALDWIN PARK
WATER LINE REIlVIBURSENIINT ACCOUNT, shall increase at a rate of 6% per annum as
shown in Table I of Exhibit "C".
7. That the late comer fees shall be collected by the City from all users subsequently
connectingto the water line shown in Exhibit "A" for the land also shown in ExhilUit "A", except the
land in Developer's Subdivision.
8. That the City shall charge the BALDWIN PARK WATER LINE PROJECT
REIlVIBURSENIINT ACCOUNT the5% feeauthorizedby 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 paldby 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
WATER LINE LATE COM ERS AGRF~M ENT Page - 4 of 6
City and shall henceforth be maintained by the City at its sole cost and e~ ense.
11 The term of this Agreement shall be unt>7 Developer has been reimbursed the
principal sum of $95,374.17, plus interest, as determined in Paragraph 6, less the 5% administrative
fee or, if this is not achieved, for a period of ten (10) years or, unto such time the water line
described herein is abandoned. If the Developer has not been reimbursed the principal sum plus
ingest 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 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 y ear life sp an.
12. This Agreement shall be binding on the assigns and successors of theparties hero.
DATED this ~/day of ~br~+`~J , 2003.
BY: ``,`,~„~,u~urri-,i,,~~~~ Y F MII2ID
~~ ~ ;, ERT D. CORRIE, MAYOR
~~AL
.. '9 M
ATTEST: y ~ ~~r ts~ ~~ ~ `
O ~~„
~~~{'~,,q~Cbl ,,t`~~~.~``~~ WILLIAM G. BERG, J ., CI Y CLERK
Approved By City Council: ~ (~~ /d3
CAPITAL DEVELQPMENT, INC.
(corporate seal)
By
RAM ON (~OR~ASON, President
WATER LINE LATE COMERS AGREEMENT Page- 5 of 6
STATE OF IDAHO,)
County of Ada,
ss.
On this ~ -' day of , 2003, before me,the undersigned, a Notary Public in
and for said State, personally appeared OBERT 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 y ear first above written.
•+rMrrrr•
~. N S,~
OT~'•
.~; ~
SEAL
~°:~OF~
STATE OF IDAHO,)
ss.
County of Ada, )
~11a~-i,4rrulE-~
NOTARY PUBLIC ORIDAHO
RESIDING AT ~' , ~~~' ~"
MYCOMMISSIONEXPIIZES ~-Z~~DS'
On this 3 ~y of ~" , 2003, before me, the undersigned, a Notary Public in and
for said State, personally appeared Ramon Yorgason, known to me to be the President of CAPITAL
DEVELOPMENT, INC., and who executed the within instrument on behalf of said Corporation,
and acknowledged to me that said Corporation executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and aff~ed my official seal the day
and y ear first above written.
.~
DeVONA D. LUKE
EALNOTARY PUBLIC NO
STATE OF IDAHO RES
MY
WATER LINE LATE COMERS AGREEMENT
oC,~~~i'~1Gn~et1 oC.~C , u~i.e~
TARY PUBLIC FORIDAHO
IDINGAT ~~~n-~,
COM MISSION EXPIIZES o 8 ~ a ~ -a
Page-6of6
JAN 29 '83 10 22 FR PUBLIC WORKS
2088871297 TO 3753271 P.02i02
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LATECOMER AREA
DEVELOPER AREA
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~ .~~. a EXHIBIT "A" '`p{~,
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** TOTAL PAGE.02 **
"EXHIBIT B"
CAPITAL DEVELOPMENT
BALDWIN PARK WATER LINE LATE COMERS' AGREEMENT
ERU CALCULATIONS
Total Area: 179.75 Ac
Developer's Area: 17.97 Ac
Middle School Area: 40 Ac
Watersong Estates:
Remaining Area:
Projected ERU Density:
Projected Res. Latecomer ERU's:
Middle School ERVs
40 Ac
81.78 Ac
3 ERU's/Ac.
245.34 ERU's
20 Actual Assessment
Watersong Estates ERU's: 125 Preliminary Plat
Total Latecomer ERU's: 390.34
"EXHIBIT C"
CAPITAL DEVELOPMENT
BALDWIN PARK WATER LINE LATE COMERS' AGREEMENT
FEE COMPUTATIONS
AREA DETERMINATION:
Total Service Area = 179.75 Gross Acres
Latecomers Area =Total Service Area -Developer's Area
OF
TOTAL
TOTAL SERVICE AREA PROJECTED ERU's: 449 100.0
OF
TOTAL
DEVELOPER'SAREA PROJECTED ERU's: 59 13.1
OF
TOTAL
LATE COMER'S PROJECTED ERU's: I 390 86.9
FEE COMPUTATION:
DEVELOPER'S CONTRIBU770N.• $ 109,790.00 Verified from Billings
PORTIONATTRIBUTABLE TO DEVELOPER'S SUBDIVISION.•
13.1% x $109,790.00 = $14,415.83
PORTION OF DEVELOPER'S CONTRIBU770NELIGIBLEFQR REIMBURSEMENT.•
Total Service Area (100%) -Developer's Percentage =Percentage Eligible = 86.9%
86.9% x $ 109,790.00 =
$95,374.17
LATE COMER FORMULA:
(Eligible Reimbursement/Late Comer's Service AreaERVs =Late Comer Fee per ERIn
$ 95,374.17 - $244.34
390.34
REIMBURSEMENT BASIS:
Assume payback period often years and an overall growth rate of 80%
within the Late Comer area over that ten years. The Adjusted Late Comer
fee per ERU =
$ 244.34 = $305.42
80%
ADMINISTRATIVE FEE:
An administrative fee will be added to the latecomer fee to cover costs to the 5%
Latecomer Fee w/ City Administration Cost:
$305.42 x 5% _ $320.69
REIMBURSEMENT SCHEDULE:
The Developer paid the costs of installing the water line. The Late
Comer fee paid by each parcel, or portion thereof, who connects to the
subject water 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 er ERU
October 1, 2002 $320.69
October 1, 2003 $339.93
October 1, 2004 $360.33
October 1, 2005 $381.95
October 1, 2006 $404.87
October 1, 2007 $429.16
October 1, 2008 $454.91
October 1, 2009 $482.20
October 1, 2010 $511.13
October 1, 2011 $541.80
Table I