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HomeMy WebLinkAboutLate Comers Agreement with McBee IncLATE COMERS AGREEMENT This Agreement made and entered into this 21st day of February 1997, by and between McBEE, INC., an Idaho Corporation, hereafter referred to as "DEVELOPER", and the CITY OF MERIDIAN, hereafter referred to as "CITY" W I T N E S S E T H: WHEREAS, the CITY limits extend north of Cherry Lane and east anu west of Ter_ Nile Road, 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 1992 the DEVELOPER extended a water line from existing water lines to an area north of Cherry Lane which water line extension was able to provide service to land east and west of Ten Mile Road; and WHEREAS, the CITY and DEVELOPER attempted to enter into a Later Comers Agreement in 1993 to establish repayment to DEVELOPER of the funds that it spent and expended constructing and placing that 1992 water line, but that Agreement was not ultimately culminated; and WHEREAS, in 1994 the CITY deemed that it was necessary to require DEVELOPER to install an extension to the water line that DEVELOPER installed in 1992 which will provide water service for an additional amount of land prior to the installation and construction of the 1994 water line placed by DEVELOPER; and WHEREAS, the total water line constructed by the DEVELOPER in LATE COMERS AGREEMENT Page - 1 1992 and 1994 will benefit other land than just the land being developed by DEVELOPER; that the land that can be served by both the 1992 and 1994 water lines 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 225. 5 acres which if developed under the zoning shown on Exhibit "C", 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 "C" there could be 897 ~ equivalent residential units (ERU) in the 225.5 acres; that on the basis that the land would be developed at an overall rate of 50o in ten years, the term that a late comers Agreement is allowed to run, there could have been 507 ERUs in 10 years; and WHEREAS, the total cost of constructing the 1992 and 1994 water lines was born by DEVELOPER at a cost of $114,285.00; whereas with 507 ~ ERUs and with an unpaid balance of $114,285.00 there could be a late comers fee of $225.41 per ERU; that the water line will benefit Candlelight Subdivision which is being developed by DEVELOPER and the subdivision will contain 116 ERUs on 37.5 acres; therefore the cost to DEVELOPER to provide water service to his own subdivision would be $26,148.41 that by subtracting the $26,148.41 from the total cost of $114,285.00 and then dividing the remaining number of equivalent connections of 391 that could be served by the water line, there should be a late comers fee of $225.42 per dwelling unit; and LATE COMERS AGREEMENT Page - 2 WHEREAS, Section 5-124B 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 lines shall be charged a ten (10) 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 lines. WHEREAS, the CITY and DEVELOPER, believed that a Late Comers Agreement had been entered into an agreement having been signed by the DEVELOPER but not having been adopted, approved, and signed by the CITY, the CITY assessed the proposed Late Comer Fee to people paying for building permits in the area initially determined to be the area which benefited from the initial water line constructed b~,~ DEVELOPER in 1992, and the CITY paid 90 ~ of those Late Comer Fees to the DEVELOPER; and WHEREAS, pursuant to 5-124A, 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, LATE COMERS AGREEMENT Page - 3 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". WHEREAS, if a Late Comers Agreement had in fact been entered into by the CITY and the DEVELOPER, the CITY would have charged the Late Comers fees just as it in fact did and the people paying for building permits would have paid the late comers fees that they were in fact charged and 90~ of those late comer fees would have, in fact, been paid to DEVELOPER; and WHEREAS, the Parties believed the CITY and DEVELOPER had entered into a Later Comers Agreement, had taken action as if such an Agreement had, in fact, been entered into, DEVELOPER had requested that such an agreement be entered into, and the CITY has, and had, taken action based on believing that such an agreement had been entered into, that such a Late Comers Agreement should now be entered into based on facts that existed in 1993 for the line installed then and based on the facts that exist now for the line that was installed in 1994; and the people who in fact did pay a Later Comers Fee would have been charged a Water Construction Equivalency Fee which likely would have been the same, or a close proximity, to the Late Comers Fee that they in fact did pay, there likely would have been the same cost to those people to receive water, so there was no loss, and will be no loss, to those people who did pay the Late Comers Fee; and LATE. COMERS AGREEMENT Page - 4 WHEREAS, the DEVELOPER was required to extend the 1992 water line by construction of the 1994 water line and an additional amount of land will be able to be served with both the 1992 and 1994 water lines, it was deemed best by both parties to enter into a Late Comers Agreement to provide for the repayment to DEVELOPER of 90° of the cost for constructing the 1992 and 1994 water lines; and WHEREAS, DEVELOPER has been reimbursed a large portion of the cost of the water line constructed in 1992, which cost the DEVELOPER $79,323.00, of which $18,149.10 was to pay for the cost to provide water service for its own subdivision, and the total cost of both water lines constructed in 1992 and 1994 was $114,285.00, of which $26,148.41 was to pay the cost to provide water service for its own subdivision, and therefore DEVELOPER should be reimbursed the sum of $88,135.31, if completed in ten (10) years from the date of this agreement, of which $52,991.00 must be reimbursed by October 13, 2003, ten (10) years from the date the first Late Comers Fee was charged by the CITY for the water line constructed in 1992. 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 water line shown in Exhibit "B, and which will benefit the land shown in Exhibit "A". LATE COMERS AGREEMENT Page - 5 3. The DEVELOPER has contributed $114,285.00 to construction costs of the above line of which DEVELOPER is entitled to be reimbursed the sum of $88,135.31 which represents land that could be served that is not included in DEVELOPER'S subdivision. 4. That for all ERUs in the land described in Exhibit "A", subsequently connecting to the water line referred to in Exhibit "B", except the land in Candlelight Subdivision, the CITY will charge the sum of $225.42; such users shall hereafter be referred to as "LATE COMERS"; that the charge is the water construction equivalency fee authorized in 5-124B and established by this Agreement, which fee shall herein be referred to as "LATE COMERS FEE"; the fee is in addition to any other water charges for connection to the water system; the computation of the Late Comers ,Fee is shown on Exhibit "C" attached hereto and by this reference incorporated herein. 5. That all the late comer fees assessed above in paragraph 4. shall be set aside and deposited to a special account to be designated the "McBEE WATER PROJECT REIMBURSEMENT ACCOUNT" and shall be distributed monthly to the DEVELOPER. 6. That the late comer fees which go into the McBEE WATER PROJECT REIMBURSEMENT ACCOUNT shall be adjusted annually on October 1st to reflect interest which the DEVELOPER would have earned on the funds expended for the total cost of construction; the interest rate shall be based upon the prime rate of First Security Bank of Idahc, N.A., as of the annual date of adjustment. LATE COMERS AGREEMENT Page - 6 1 DATED this o~ ~ day of ~~.jy~yetT CITY OF MERIDIAN 199 c ',,```~N1N111l1 1~~ ~~ ~~ ~` ~~ = SJ6AL ' ~~~ '-,,~'~Q,~ `fir 1s~ • ~•~, r~ ~~ i IAM G. BERG,.JR., IT CLERK ~~~ ~~~ '_' ,1' ~~, 1 i 1r ~;'. 1 approved by the City Council 11-6,-9'g `"~ + '.,' c. McBEE , INC . i.` ~~' ti . ~.'~ B GC.• Gn~~'k~~C Pre 'dent B ecr ary LATE COMERS AGREEMENT Page - 8 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No. 5907 State of cc, County of On ~~YUGiYV a~. ~99~ before me, ~ © U , DA ~ NAME, TITLE OF OFFICER - E.G., "JANE DOE, NOTARY BLIC" personally appeared ~J NAME(S) OF SIGNER(S) `®-personally known to me - OR - ^ proved to me on the basis of satisfactory evidence to be the person~s~ whose name Is are subscribed to the within instrument and ac- knowledged to me that ~sh~executed the same in is hex~t~a.ai-~ authorized capacity(i an that by is "°~'r~~r signature~'on the instrument the person.($j; or the entity upon behalf of which -the ~_~__~~.~,^_ person(s~acted, executed the instrument. '~' ~ COMM. ~i~~~J350 ~ -'~~ ~~~~ ' ~ .NOT!:?Y f li3! Ir - CALifOR;~aIA ~ '~S'' rrY c WITNESS my hand and official seal. ~~~E~~. ~~~/4,"t 71 19y9 .- ,Act ~~-~~ SIGNATURE OF NO ARY OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ^ INDIVIDUAL I~ CORCCPORATE OFFICER c~eC r~ r,' ~/ J TITLE(S) ^ PARTNER(S) ^ LIMITED ^ GENERAL ^ ATTORNEY-IN-FACT ^ TRUSTEE(S) ^ GUARDIAN/CONSERVATOR ^ OTHER: ~- a /-~j ~ DATE OF DOCUMENT SIGNER IS REPRESENTING: ~ , I~ n~~~ NAME OF PERSON(S) OR ENTITY(IES) ~~ M ( J ~YI('~ieL°, -SyJe` SIGNER(S) OTHER THAN NAMED ABOVE ,. DESCRIPTION OF ATTACHED DOCUMENT TITLE OR TYPE OF 9 NUMBER OF PAGES ©1993 NATIONAL NOTARY ASSOCIATION • 8236 Remmet Ave., P.O. Box 7184 • Canoga Park, CA 91309-7184 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No. 5907 State of _ ~ A L ~ ~ o ~z ~, , ,~. County of ~~Eti ~ ~,~ On TEB2Ur42 ~/ 2~ X997 before me, p-~-,~u ~~ ~«,v ~o- 2 ~~~~c , ATE ~ NAME, TITLE OF OFFICER - E.G., "JANE DOE, TARY PUBLIC" personally appeared _Lu ~Q ~ ~ ~ _ rL ~ ~ Co,,,, E~ ~ , NAME(S) OF SIGNER(S) - R - f~proved to me on the basis of satisfactory evidence to be the person( whose name,( Is afi~ subscribed to the within instrument and ac- knowledged to me that he/she/they executed the same in hi h~/tl~f authorized capacity(., and that by Is I~/tf~ir signatures on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. ANN BROWN WITNESS my hand and official seal. . ~~, ~ ~ Commission # 1122650 z ~ -~^:;r .~-. _'= ~ Ntt[ary Pudic--Caffornia n /~ '' • Varltura County (/ Jt.,,,~- My Comm. Expires Jan 15, 2001 ~~~ SIGNATURE OF NOTARY OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ^ INDIVIDUAL CORPOnRATE OFFICER /'2CS i DE~U % TITLE(S) ^ PARTNER(S) ^ LIMITED ^ GENERAL ^ ATTORNEY-IN-FACT ^ TRUSTEE(S) ^ GUARDIAN/CONSERVATOR ^ OTHER: DESCRIPTION OF ATTACHED DOCUMENT L~%C. ~DM~2S ~~2E~/U~.r~ TITLE OR TYPE OF DOCUMENT NUMBER OF PAGES ~EB2 s,2~2 / l~ j 7 DAT OF DOCUMENT SIGNER IS REPRESENTING: NAME OF PERSON(S) OR ENTITY(IES) `T~~ yc~ ~ _ /3G/ ~ G C ,.5 ~ G fjEC --TAG- SIGNER(S) OTHER THAN NAMED ABOVE ©1993 NATIONAL NOTARY ASSOCIATION • 8236 Remmet Ave., P.O. Box 7184 • Canoga Park, CA 91309-7184 STATE OF IDAHO,) County of Ada, ss. On this ~~~ day of ~p,0^ryv , 1997, before me, the undersigned, a otary 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, official seal the day and `,,~~~f1111ffff~, ~.~~E ~• G '•. s; ?~ ~®~ ARy SEAL ° _ ~ ~ . ~ i~`~' 1J B a-~ 4` ~ ~. ~~~i~i~~e~~ STATE OF IDAHO,) ss. County of Ada, ) have hereunto set my hand and affixed my year first above written. On this day of 1997, before me, the undersigned, a Notary Public in and for said State, personally appeared and known to me to be the President and the Secretary of McBEE, 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 affixed my official seal the day and year first above written. SEAL NOTARY PUBLIC FOR IDAHO RESIDING AT MY COMMISSION EXPIRES LATE COMERS AGREEMENT Page - 9 .~ NTS RT ''ti w ~ o ~ uNF yr = _ ~ ~ sunrf~MS~, -~~ ~ l~~ - ~, ,~~ i 0 __ _ _ -- - _. I RT -- =--~t RT -- ~ ~~~~ ~~ ~ ;~ ~ -- ~~~~ ~ R-4 R1~A -- ~~ ~ ~~ ~ , -- '~ ~~~ .. --_ , ~ ---- 1--- .. F I ~ a S / R I r E S 4 1 I u ~~, .~ ~ ~~, ~ h ~ I,~ - r ?~!' m ~` l ", hail Nh ~\ 4Y^ti M ~~'~'' ~ as 8 'I~~l~~ ~ ~, 6,' y+`ri~G~~~~+'i It,Y' R-4 ~` ,~"dlll"~~~,il~Jl'ul~~l~y''~IIIII~ ~I~II~i,I~ OK --. - -N0.4 iuumu~i~ r~; "~_ -' `- i n~o ONE -~%1&uawi < iuBOrvrSlo ~~~„ i ~ ~ II01 ~ _ wa '~~=1 of ~Q ,PtwrsroE__ -,a ~ / ~ 1'~1---t ~ -r'ri^.z._ . i EXHIBIT A CANDLELIGHT SUBDIV1S10N WATER LATE COMERS SERVICE AREA W~ti~, I --, _ ~ ~~ ~nu~u~ New Mainline ~ - ~ ,. RT - _ RT ~- ~~ . ' NTS I \`'~~~ R-4 C~•. ~ iv ~ I IIi u' i ~. \ \ ~~ \ ----- ~ ~~\, __~,~-=m ==-~i ~ I y~ ~ - y sy?,1 i ' R-8 '~~~H M ~ ~~ ~~~~ ~ ~. ~ ~ w -~~e u ~ J ~I~~ ~~"' ~ OK ~ R-4 ~~~P~n~~h~ `'~ - i E~ '; ~ ~IfNNf6 ~ war~uai-_.. i~ ~_ / ~ /ANE V! VIA ~ SUN ~' -~ ~`\ I /_ ~ ~ av~Dw ~7 -_ r 7 1f ILr -..~: ~ _- j- r" , ~ w ` pT ~~ ~ ` R ~ ~SU~ ` ~ANOIf' \ SUB i_ 1 r ~ '~ue~~~r~' { >` , - ,~ ~ ~ ~ .~ _ C" ~ ~ nio ,_ \ ' ~ ~ - ~-- 'I `,~ ONE i gaa~uotroQ ( ~ARAfS'~ ~ i ' ~ ~ tjBDtNI _ _ ~, ~~ ~~ ISUBONIS'!O - - i I n I ~ jU~ON15/OlY ~Q ~ U. ~ ~ ~~~ .~ ~ ~~ ~ - PARRSf/~f-~` ~~ -~~ '-vv~~rtt[ ,~ ,, ~ N ~ _ -- -I- -~-~ T~-f(~vF : VINEYIRD' EXHIBIT B CANDLELIGHT SUBDIVISION WATER LATE COMERS WATER MAIN ALIGNMENT EXHIBIT C CANDLELIGHT SUBDIVISION WATER LATE COMERS FEE COMPUTATIONS AREA DETERMINATION: DEL'F.LOPER 5 AREA AREA ZnNF FRiT/A(` A(`RFC FRiT Candlelight Subdivision -Phases I, II and III R-4 3.12 37.5 116~t~ SUB-TOTAL 37.5 116 (1) Actual platted, buildable lots (112) plus landscape irrigation assessment (4) ERU's. LA TF. COMER :S AREA AREA ZnNE F.Ri 1/A(' A(RRC *FRi i The westerly ±895 foot portion of the SW'/a, SW'/a, Sec. 35, T4N, R1W, B.M. R-4 3.2 27 86 SW'/a, NW'/a, Sec. 2, T3N, R1W, B.M. R-4 3.2 40 128 NW'/a, SW'/a, Sec. 2, T3N, R1W, B.M. R-4 3.2 40 128 NEB/a, NE'/a, Sec. 3, T3N, R1W, B.M. R-4 3.2 40 128 SEA/a, NEi/a, Sec. 3, T3N, R1 W, B.M. R-4 3.2 15 48 R-8 3.8 6 23 R-15 12 20 240 SUB -TOTAL 188 781 TOTAL 225.5 897 (Developer's Area Total + Late Comer's Area Total =Total Service Area) 37.5 Acres + 188 Acres = 225.5 Acres Page 1 of 2 c ottice~wpwinstdforttu ('.\\ULE:_IL'O ~701~'235 DEVELOPER'S CONSTRUCTION COSTS: Phase I - $79,323.00 Phase II - $34.962.00 $114,285.00 REIMBURSEMENT BASIS: acf~~ ~~ / ~~ ~ ~ ~C~~ ~ , '97 ~1~R 1~ P('1 ~ 1`t RECCE ~' ;`., .~. ~ u.;~.ST 0 Assume pay back period often years and an overall growth rate of 50% within the latecomer area over that ten years. Project Latecomer ERU's @. 10 Years = 781 x 50% = 391 Latecomer ERU's Deve]oper's ERU's = see previous page = 116 ERU's Total Expected ERU's within Service Area = 116 + 391 = 507 ERU's Unit Cost/ ERU = Construction Costs Total ERU's (developer's and latecomers) DEVELOPER'S SHARE OF CONSTRUCTION COSTS: Construction Cost: Developer's ERU Percentage of Total Service Area: = 116 ERU's _ 507 ERU's = Developer's Share of Construction Costs: _ $114,285.00 x 22.88% _ Latecomer's Share of Construction Costs: _ $114,285.00 - $26,148.41 = COMPUTATION: Urit Cost/Latecomer ERU: _ $88,136.59 = 391 Lateccomer ERU's Developer's Unit Cost: _ $26,148.41 - 116 ERU's Potential A.:lount of Reimbursement to Developer: Less 10% Administrative Cost to City of Meridian Total Potential Reimbursement to Developer = $ l 14,285.00 22.88% $26,148.41 $88,136.59 $225.41 per Latecomer ERU $225.42 per ERU = 391 ERU's x $225.41 _ $88,135.31 _ $ 8.813.53 $79,321.78 Page '' of ~ c o8icelwpwin stdturmi G\~DLG:_Li~U ,'~ vx crrv of ~R:!'~{i "~, erl~lcn _~,~ ~~~,, ~ IL7AI10 y y~Ce~ER ~Me TREhSUftE VIW'"Y /~ SINCE 1903 MAYOR Tammy de Weerd CITY COUNCIL MEMBERS Keith Bird Joseph W. Borton Charles M. Rountree Shaun Wardle CITY DEPARTMENTS City Attorney/HR 703 Main Street 898-5506 (City Attorney) 898-5503 (H1Z) Fax 884-8723 Fire 540 F.. Franklin Road 888-1.234 /fax 895-0390 Parks & Recreation 1] W. Bower Street 888-3579/fax 898-5501 ADA COUNTY RECORDER J. DAVID NAVARRO AMOUNT .00 BOISE IDAHO 03!09106 02:08 PM DEPUTY Neava Haney ~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~ ~~~ RECORDED-REQUEST OF Meridian City 106036~~8 RELEASE OF AGREEMENT For: LATECOMERS AGREEMENT Agreement between CITY OF MERIDIAN MCBee, Inc. The agreement entered into February 21, 1997 by and between the CITY of MERIDIAN, a municipal corporation of the State of Idaho, and Mc$e~, ~"""`"'~~,, been satisfied by the City of Meridian. We request you release tl;le~,~ ~ f``~~, recorded 3/12/1997 under your instrumen~t~mber #97019235:~~ ~o'~ ~~ ~' /' y STATE OF IDAHO ) Planning 660 E. Watertower Lane Suite 202 884-5533 / Eax 888-6844 Poh~e 1401 E. Watertower Lane 888-6678/fax 846-7366 Public Works 660 E. Watertower Lane Suite 200 898-5500/fax 895-9557. - Building 660 E. Watertower Lane Suite 150 887-2211 /fax 887-1297 - Wastewater 3401 N. Ten Mile Road 888-2191 /fax 884-0744 - Water 2235 N.W. 8th Street 888-5242/fax 884-1159 County of Ada SS William G. Berg,lr. ~„" _ ~y C ~ .~ . ~ r, r ~/ ~M fy ~ ~,~. On this ~D~"' day of (~ (~YCh , 2006, before me, a Nota>Iy Public, personally appeared William G. Berg, Jr., know or identified to me to be the City Clerk, respectively, of the City of Meridian, who executed the instrument or the person that executed the instrument of behalf of said City, and acknowledged to me that such City executed the same. (SEAI.~, • ~ • • • • Ali. G~,•.• •• i ~~~'oza.~~~~ ~ ~ '~ ~ s ' ~ ~ ~ ~ ~ • ' ~ • ~ ~ i ~ • \ • • i ~` ~ % • ~,1 ~:' •~~• ~~ otary Public ~Qr Idaho Residing at: ~d. ~~~ ~ , ~ h Commission expires: ~~ 1 " ~ J~ CITY HALL 33 EAST IDAHO AVENUE .MERIDIAN, IDAHO 83642 (208) 888-4433 CITY CLERK -FAX 888-4218 FINANCE & UTTL[TY BILLING -FAX 887-4813 MAYOR'S OFFICE -FAX 884-8119 Printed on recycled paper