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HomeMy WebLinkAboutLatecomers Agreement Sewer Line Cherry Lane Dev AGREEMENT This Agreement made and entered into this°C~h day of ~, 1991, by and between the CITY OF MERIDIAN, a municipal corporation of the State of Idaho, hereafter referred to as "CITY", and CHERRY LANE DEVELOPMENT, a general partnership, hereafter referred to as "PARTNERSHIP". W I T N E S S E T H: WHEREAS, the City limits extend east and west of Ten Mile Road but prior to this Agreement and construction referred to herein, a portion of such area was not provided sewer service by the City; and WHEREAS, the Partnership owns land west of Ten Mile Road and north of Cherry Lane and is developing its property for resale and desires to have sewer service; and WHEREAS, the Partnership agreed to pay a portion of the cost of extending sewer lines from existing sewer lines to an area west of Ten Mile Road and northeast of Cherry lane Subdivision No. 2, and the City agreed to pay a portion of the cost of extending sewer lines along Ten Mile Road to serve land east and west of Ten _ AMBROSE, FITZGERALD 3CROOKSTON ~neye and neelors P.O. Boz 421 Merldlsn, Idaho 83842 Telephone 8884481 Mile Road and north and south of Cherry Lane; WHEREAS, the sewer lines constructed by Partnership and the City will benefit land other than that owned by Partnership; and WHEREAS, the total cost of constructing the sewer lines was born by the Partnership and the City; and LATE COMERS AGREEMENT - PAGE 1 AMBROSE, FITZGERALD BCROOKSTON ~rneys and unselors P.O. Box 427 Merldlan, Idaho eaaaz Telephone 888.4481 WHEREAS, Section 7-5276 of the Sewer Ordinance provides that the City may enter into co-operative sewer line extension and re- imbursement agreements and that section further provides that sewer users who subsequently connect to the extended sewer lines shall be charged an eight (8) inch diameter sewer- 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 comer fee may be used to reimburse the person or persons so extending the sewer lines; and WHEREAS, Sections 7-5276 indicates that normally a user extending a sewer line will not be re-imbursed the total cost of extending the line due to the fact the line or lines will benefit the land owned by the user and the benefit to Partnership's land has been reflected in this Agreement. 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 Partnership and City have engineered, planned, and constructed the trunk sewer line described in Exhibit "A", and such has been approved by the City. 3. The Partnership and City have jointly contributed $123,637.56 to construction costs of the above line of which a portion will benefit the Partnership's own land, and a substantial portion will benefit land in the City; at this time no person has LATE COMERS AGREEMENT - PAGE 2 contributed to the cost of such lines other than the City and the Partnership. 4. That the City will charge all users, except for users in the Partnership's land which is described in Exhibit "B" and incorporated herein and subsequently connecting to the sewer line referred to in Exhibit "A" which such users shall hereafter be referred to as "LATE COMERS", the sewer construction equivalency fee authorized in 7-5276 which fee shall herein be referred to as "Late Comer Fees". 5. That the City contributed $84,000.56 to said line and the Partnership contributed $39,637.00; that of the amount contributed by the Partnership only $7,634.00 is eligible for reimbursement; that all of the $84,000.56 contributed by the City is eligible for reimbursement but the City determines the late comers fee on its portion at 40% of the number of dwelling units capable of connecting to the line over the period of the late comers agreernent. 6. That from the late comer fee assessed pursuant to AMBROSE, FIT2GERALD &CROOKSTON ~rneys and unaelora P.O. Box 427 Meridian, Idaho 83842 Telephone 888.4481 Section 7-5276 for each equivalent single family residential connection to the sewer line referenced in Exhibit "A", FIFTY-TWO AND NO/100 DOLLARS ($52.00) shall be set aside and deposited to a special account to be designated the "City of Meridian/Cherry Lane Development Re-imbursement Account", which shall hereinafter be referred to as the "Re-imbursement Account"; that from the funds accumulated in the re-imbursement account the City shall receive ten percent (10%) of the total accumulated for LATE COMERS AGREEMENT - PAGE 3 • administrative expenses of this Agreement; that the balance in the account shall be paid to the Partnership; that if there is an accumulation in the account, the account shall be disbursed monthly. 7. That the balance of the late comer fee, after the payment to the Partnership of $52.00, shall be paid to the City. 8. That the $52.00 of the late comer fees which goes into AMBROSE, FITZGERALD &CROOKSTON mays and unselore P.O. Box 427 Merldlan, Ideho 83842 Telephone 888.4481 the Re-imbursement Account shall be adjusted annually on October 1st, to reflect the then current cost of constructing said lines and to reflect interest which the City and Partnership 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 Idaho, N.A., as of the annual date of adjustment. 9. That the late comer fees shall be collected by the City from all users subsequently connecting to the lines in Exhibit "A", except for users in what is now Partnership's land as shown in Exhibit "6. 10. 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. 11. That the total amount capable of being re-imbursed to the Partnership shall be the sum of SEUEN THOUSAND SIX HUNDRED THIRTY-FOUR AND NO/100 DOLLARS ($7,634.00) as annually adjusted for increases in then current costs of construction engineering LATE COMERS AGREEMENT - PAGE 4 i and interest, less the 10~ administrative fee. 12. It is agreed that the sewer line referenced in Exhibit "A" is the property of the City and shall henceforth be maintained by the City at its sole cost and expense. 13. The term of this Agreement shall be until the Partnership has been re-imbursed the amount determined as set forth in paragraph 11 above but not longer than ten (10) years even if the amount in paragraph 11 has not been paid to Partnership. 14. This Agreement shall be personal to the Partnership and may not be assigned by the Partnership without the written consent of the city, which the City covenants not to withhold unreasonably. 15. This Agreement shall be binding on the assigns and successors of the parties hereto. DATED this~p}h day of ~ `_, 1991. CITY OF MERIDIAN CI~I G AY R AMBROSE, FITZGERALD &CROOKSTON rneye and unaelora P.O. Boz 427 Merldlan, Idaho 83eaz Telephone 88&4481 C ERRY LANE DEVELOPMENT ~_.._ __„_._~_~ r _ LATE COMERS AGREEMENT - PAGE 5 1 AMBROSE,~~ .~~- FITZGERA~~ e' & CROOKST81¢~ ~rneys arm - unselore P.O. Boz 427 Merldlan, Idaho e3e4z Telephono 88B-1181 STATE OF IDAHO, ) ss. County of Ada, ) On this 21 day of Au ust 1991, before me, the undersigned, a ITotary Pu ~c ~n anav~or-said State, personally appeared GRANT P. KINGSFORD and JACK NIEMANN, 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, my official seal the day `.~ ,. ,-_ .~_ ~.- ' x A 1. ~^ . _ u ~~tr q~~~'1 ~'~. i~ ~ SEAL ~ '~ G ~" ~' A „~+ ES4 ~~~Nmeu~~°~ STATE OF''`I"DAHO, ) County of Ada, ) On this '2~i day undersigned, ~Vot ry app ed l-es~ art erg ian, ~ aho, an3~ acknowledged to me that I have hereunto set my hand and affixed and year first above written. ~~ UBL C FOR IDAHO E IDING AT MERIDIAN, IDAHO M commission expires 04/01/93 ss. of LC 1991, before me, the Pu is n an or said State, personally ~ ~_ known to me to be the ~~ o CFierry Lane Development, who executed the within instrument, and Cherry Lane Development executed the same. IN WITNESS WHEREOF, my official seal the day - - ..;/; . 4 `~'_ ~~~-E AL I have hereunto set my hand and affixed and year 'rst abov.~._.w- ten. T, ,, .._ . ,,. ~ ~~` NOTARY PUBLIC FOR IDAHO RESIDING AT~~d, IDAHO ~O ~~s' ~. -,. ~J~~~~LATE COMERS AGREEMENT - PAGE 6 • .. AMBROSE, FITZGERALD & CROOKSTON ~eys and unaelora P.O. Boz 427 Merldlan, Idaho 83842 Telephone888J481 STATE OF IDAHO, ) ss. County of Ada, ) On this day of 1991, before me, the undersigned, a rotary Pu ~c in an or said State, personally appeared known to me to be the __~~ _ ~ o~Cherry Lane Development, eri pan, aho, an who executed the within instrument, and acknowledged to me that Cherry Lane Development 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 STATE OF IDAHO, ) ss. County of Ada, ) 1~OTA~PIJBL I C FOR I DAHOy~~~~ RESIDING AT MERIDIAN, IDAHO On this day of 1991, before me, the undersigned, a Notary Pu is ~n~ a~~~or said State, personally appeared PAUL WHITE, known to me to be the _ _ of Cherry Lane Development, Meridian, Idaho, and who executed the within instrument, and acknowledged to me that Cherry Lane Development 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 N ARY PUB~~~OR IDAH RESIDING AT MERIDIAN, IDAHO LATE COMERS AGREEMENT - PAGE 7