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14-989 Extending the Coop Construction and Reimbursement Agmt with JLJCITY OF MERIDIAN RESOLUTION NO. BY THE CITY COUNCIL: BIRD, BORTON, CAVENER, MILAM, ROUNTREE, ZAREMBA A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MERIDIAN EXTENDING THE COOPERATIVE CONSTRUCTION AND REIMBURSEMENT AGREEMENT WITH JLJ ENTERPRISES FOR A 12 INCH WATER MAIN FROM THE INTERSECTION OF OVERLAND AND LINDER ROADS WEST APPROXIMATELY 5000 FEET WHEREAS, the City of Meridian entered into a Cooperative Construction and Reimbursement Agreement with JLJ Enterprises on or about March 10-12, 2009; and WHEREAS, the basis of the Agreement was for the reimbursement of a portion of a 12 inch water main; and WHEREAS, a copy is hereby attached to this resolution as Exhibit "A;" and WHEREAS, the remaining balance owed on this project pursuant to the agreement is $28,856.23 the entirety of which is to be paid from the assessment fees collected for the development of Southridge Subdivision; and WHEREAS, the Original Agreement was set to expire on or about March 11, 2014 the City by a separate settlement agreement, a copy of which is attached as Exhibit `B," has agreed to extend the Original Agreement until March 11, 2019; and WHEREAS, any payments received between March 11, 2014 until March 11, 2015 by the City pursuant to the Original Agreement shall be paid to the Bittercreek HOA as described in Exhibit "B" and after that date shall then be paid to JLJ Enterprises, or its successor in interest, until the expiration of the Agreement on March 11, 2019. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF MERIDIAN, IDAHO, AS FOLLOWS: Section 1. That the above noted Cooperative Construction and Reimbursement Agreement with JLJ Enterprises and the City of Meridian entered into on or about March 10-12, 2009 is hereby extended to March 11, 2019. Section 2. That any payments received between March 11, 2014 and March 11, 2015 shall be paid to the Bittercreek HOA. After the latter date the payments shall be paid to JLJ Enterprises, or its successor in interest, until the expiration of the Agreement. ADOPTED by the City Council of the City of Meridian, Idaho, this day of May, 2014. APPROVED by the Mayor of;t4e&ityf-of,,Meridi CITYT-MERIDIAN: _ ,,s, ,r Atte s Tammy de Weerd, Mayor Ja c Idaho, this "day of May, 2014. . Holman, City Clerk RESOLUTION EXTENDING THE COOPERATIVE CONSTRUCTION AND REIMBURSEMENT AGREEMENT WITH JLJ ENTERPRISES AND THE CITY OF MERIDIAN ENTERED INTO ON OR ABOUT MARCH 10-12,2009 RESOLUTION EXTENDING THE COOPERATIVE CONSTRUCTION AND REIMBURSEMENT AGREEMENT WITH JLJ ENTERPRISES AND THE CITY OF MERIDIAN ENTERED INTO ON OR ABOUT MARCH 10-12, 2009 COOPERATIVE CONSTRUCTION AND REIMBURSEMENT AGREEMENT 12 -INCH WATER MAIN FROM THE INTERSECTION OF OVERLAND AND 1-iNDER ROADS WEST APPROXIMATELY 5000 FEET THIS AGREEMENT made this1day of 2009, by and between the CITY OF MERIDIAN, a municipscorporation, hereinafter called "CITY," and JW Enterprises, Inc., hereinafter called "DEVELOPER", WITNESSETH: WHEREAS, DEVELOPER owns land inside the corporate limits of the City of Meridian and desires to construct approximately 6,000 fest of 12 -inch water main, along Overland Road, to be owned, operated, and maintained by CITY to serve DEVELOPER's property, South Ridge Subdivisions• (shown on Exhibit "A"), and has requested reimbursement for a portion of the 12 -inch water main; WHEREAS, upon recommendation of the Public Works Department, the City Council of CITY accepted and approved the proposal of DEVELOPER to construct the said 12 -inch water main system, subject to all conditions hereinafter provided by this Agreement; NOW THEREFORE, in consideration of the foregoing premises, CITY and DEVELOPER hereby agree: A. Preparation of Plans, DEVELOPER has prepared plans and specifications, drawings, instructions, bid proposal and all other contract documents for the construction and installation of the 12 -Inch water main system (hereinafter called "Projecf'), shown on preliminary pians (hereinafter called "Exhibit "13% including rights-of-way, grades and elevation, and materials used in the construction and installation of said Project. B. Final ,Approval of Plans. Prior to commencement of construction, CITY shall approve or reject, in its discretion, the Project plans. CITY and DEVELOPER shall acknowledge in writing the final plans, Page 1 of 11 and said plans shall not thereafter be modified In any material way unless such modifications are approved in writing signed by CITY and DEVELOPER. C. Solicitation of Bids. DEVELOPER will solicit bids for construction using the City Purchasing Department's bid procedures at a minimum. DEVELOPER Shall work with the City Purchasing Manager in developing the bid and establishing a due date. A representative of the City Purchasing Department must attend the bid opening. DEVELOPER will award the construction contract to the lowest responsible bidder after obtaining concurrence from the CITY Purchasing Manager of low bidder and City Council approval. D. Contract Terms. DEVELOPER shall provide CITY with a copy of the executed construction contract(s) prior to the stark of any construction. All construction contract(s) shall include, at a minimum, the following previsions: 1. A requirement that the contractor provide payment and performance bonds in the amount of one hundred percent (100%) of the total Project cost naming CITY as an additional beneficiary as required by the Public Works Contractors License Act, Chapter 19, Title 54 of the Idaho Code. 2. A requirement that the successful bidder be licensed as a public works contractor as required by Idaho State Statute 54-1902. 3. A requirement that the construction of the Project shall be in accordance with the approved designs, plans, and specifications and be Substantially Complete by June 1, 2009. Forthe purposes of this Agreement, the term "Substantially Complete" shall mean that the Project and all components thereof can be safely used for their intended purpose(s) despite the fact that some item or items remain uncompleted. 4. A provision that the time for Substantial Completion will only be extended by (a) acts of God, (b) war, (c) delays caused by CITY, (d) weather, (e) review and/or approval processes required by outside agencies not otherwise parties to this Agreement (t) any request for extension of time approved in writing by CITY. 5. A requirement that the contractor shall maintain liability insurance insuring against bodily injury or death with, limits of not less than One Million Dollars ($1,000,000.00) per person and per occurrence, and property damage with a limit of One Million Dollars ($1,000,000.00) per occurrence, naming the City as an additional insured and provide a certificate of said insurance prior to the start of construction. Said requirement is extinguished upon acceptance of Project by City. 6. A provision that the contractor shall indemnify CITY and DEVELOPER from any and all claims by third persons arising out of the performance of the contract. Page 2 of 11 7. �A provision, that the contractor shall comply with all applicable laws, rules, and regulations, and that the contractor shall secure all applicable permits and pay all applicable fees. 8. A provision providing at least a one (1) year warranty on the operation and materials of the Project, which warranty shall be assignable to CITY, to be secured by the posting of a performance bond in favor of City upon project completion in the amount of ten percent *(10%) of the total Project cost, E. Conditions Precedent to Execution of Construction Contract(s). Prior to execution of any construction contract, the following conditions shall be satisfied: 1. Prior to the start of construction in 2009 the DEVELOPER shall secure financial surety acceptable to ACHD guaranteeing the completion of the Overland Road realignment project. 2. DEVELOPER shall provide proof to CITY that the completion of the Overland Road realignment project has not been canceled or postponed, 3. DEVELOPER shall obtain written approval from CITY of the form and terms of such construction contract, which approval may be withheld for any reason, including but not limited to DEVELOPER's failure to obtain a construction contract that contains the provisions required by this Agreement, but which approval shall not otherwise be unreasonably withheld. 4. Any easements required for the Project or the construction thereof shall be deeded to CITY and recorded prior to construction of the Project. P. DEVELOPER and CITY Responsibility for Costs. Because the DEVELOPER will construct the Project, as shower on Exhibit "B", it is mutually agreed that the cost of the Project will be subject to actual cost verification by CITY. DEVELOPER shall fund 100% of the cost of the Project, estimated at $229,896.90. The -City will reimburse the DEVELOPER for 60% of the project estimate (subject to cost verification) less an administration fee of $9,384.60 as listed In paragraph J. Go Construction of the Prolect. 1. DEVELOPER shall install and, construct the Project in compliance with and subject to all conditions provided herein. Page 3 of 11 2. DEVELOPER shall obtain and/or provide all engineering, surveying, contract administration, and/or permanent and temporary easements necessary for the construction of the Project. 3. DEVELOPER shall undertake and/or provlde all testing, sampling and other normally conducted measures for quality control/quality assurance regarding any and all installed systems, 4. CiTY shall provide inspection services for the construction of the Project in accordance with CITY standards. H. Chance orders to Construction Contract, DEVELOPER shall obtain the written approval of CITY before approving any change order to the construction contract. In the event of a change order, CITY and DEVELOPER shall execute an amendment to this Agreement to record the amount of the change order to be reimbursed to DEVELOPER, if any. In the event that a change order or other amendment to ,the construction contract results In a cost savings, CITY and DEVELOPER shall execute an amendment to this Agreement to reflect how the cost savings will be allocated between CITY and DEVELOPER. I. Completion of the Prolect. 1. It is the desire of the City and in agreement with the Developer that this project be substantially completed by June 30, 2009 to be in alignment with the Ada County Highway District's needs for the road system in this area. The DEVELOPER and the CITY discussed and agreed to this completion date on September 16, 2008 in a City Council meeting. 2, Upon final completion of the Project, DEVELOPER shall furnish to CI'T'Y written certification that the Project has been completed in accordance with the approved . plans. Within fifteen (1 a) days after delivery of the certificate.0 completion, CiTY shall either accept the same or provide a written itemization of those matters it reasonably finds to be non -conforming with the approved plans, in which case DEVELOPER shall promptly cause the remediation of all non -conforming matters, 3. Upon completion of the Project, DEVELOPER shall deliver to CITY comprehensive as -built drawings for the Project in both a reproducible, printed format, on both mylar and in electronic files In AutoCAD format. 4, Upon completion of the Project, DEVELOPER shall complete all paperwork necessary to assign to CITY the contractor's one (1) year warranty of the work and materials on the Project. Page 4 of 11 a. Upon completion of the Project, DEVELOPER shall represent and warrant that the Project is free and clear of all liens and encumbrances not created by or with the written consent of CITY. 6. Upon completion of the Project, CITY'shall issue an approval letter accepting ownership to DEVELOPER. J. ftrnburserneritto DP ELOPER. Because DEVELOPER will construct the Project, CITY shall reimburse to DEVELOPER 50% 50% of the project estimate (subject to cost verification) less an administration fee of $9,384.60 as listed below. Construction Cost $229,896.90 City portion of Construction Cost $115,214.20 Less Administration fee of -$ 9,384.60 Design & Engineering Costs $ 12,806.25 Soft Costs $ 10 220.38 Total City Responsibility $128,856.23 CITY to pay $100,000.00 to DEVELOPER within thirty (30) Day's upon project completion, which shall be no later than June 30, 2009 unless delay is caused by something outside the control of the DEVELOPER, and CITY's acceptance of the project. The City shall not be obligated to pay any amount after June 30, 2009 unless the DEVELOPER can prove to the CITY that they delay was outside of his control. if such showing is made the CITY may allow for a reasonable period of time to cure the default and shall pay this amount at the later designated date, The CITY Project Manager well conduct an audit of this agreement on a quarterly basis, beginning three months from the date of this agreement, and reimburse the DEVELOPER the remainder of the. CITY's responsibility in. accordance with this agreement from the assessment fees..collected during the aO t period for the DEVELOPERS property, South Ridge Subdivision. K. Term of Agreement. Payments shall continue under this agreement for a period of 6 (five) years from the date of execution of this agreement by CITY, or until DEVELOPER is reimbursed the full amount of $128,858.23, whichever occurs first. The City ordinance in effect at the time of -execution of this agreement does not allow the term of this agreement to extend beyond 5 (five) years. If the DEVELOPER has not been reimbursed the estimated "amount as shown above after five.(6) years from the date of this agreement, and if the CITY ordinance has been amended to allow this agreement to be extended beyond a five year period, then this agreement may be extended by mutual Agreement of the CITY and the DEVELOPER. This provision is intended to allow CITY to Page 5of11 consider extending this agreement if allowed by ordinance and does not commit CiTY to agree to such an extension if allowable. L. Mater and Sewer Lines on DEVELOPER's Property. As a condition for CITY entering this Agreement, DEVELOPER has or will request and submit to inspections by the Public Works Department and/or the Building Department of CiTY whenever a building is to be connected to any and all portions of the Project constructed and installed bn and/or within DEVELOPER's property. M. Compliance with Laws. 1. In constructing and installing the Project on and/or within its property, DEVELOPER, at its sole expense, shall comply with any and all laws, orders and regulations of f=ederal, State and local authorities and at DEVELOPER's sole expense shall obtain any and all licenses or permits which may be required for or in the course of the performance of this Agreement. 2. Upon connection to the City of Meridian water and sanitary system, DEVELOPER shall abide by all applicable CiTY laws, rules and regulations pertaining to water and sanitary sewer systems, N. Indemnification and Insurance. DEVELOPER shall include in all contracts between DEVELOPER and the contractors the indemnification and insurance requirements as set forth in this paragraph. All contractors shall indemnify and save and hold harmless CITY and DEVELOPER from and for any and all losses, claims, actions, judgments for damages, and/or Injury to persons or property and' lasses and expenses caused or incurred by contractorsr their servants, agents, employees, guests, and/or business invitees, and not caused by pr arising out of tortious conduct of CITY or ifs employees or its DEVELOPER. In addition all contractors shall maintain, and specifically agrees that it will maintain, throughout the pendency of this Agreement, liability insurance in which CITY and DEVELOPER shall be named insured in the minimum amount as specified in the Idaho Tort Claims Act set forth in Title 6, Chapter 9 of the Idaho Code. "The limits of such insurance shall not be deemed a limitation of the covenants to Indemnify and save and hold harmless CITY and DEVELOPER, and if CITY and -DEVELOPER become liable for an amount in excess of the. insurance limits herein provided City and DEVELOPER covenants and agrees to indemnify and save and hold harmless CITY from and for all such losses, claims,•actions and/or judgments for damages and/or liability to persons and/or property. DEVELOPER shall provide CITY with a certificate of insurance evidencing DEVELOPER'S compliance with the requirements of this paragraph by filing such proof of insurance with the City Purchasing Manager. In the event the insurance minimums of the Idaho Tort Claims Act are changed, CITY shall notify Page 6 of 11 DEVELOPER of such change, and DEVELOPER shall immediately submit proof of compliance with the changed limit. City hereby indemnifies and saves and holds harmless DEVELOPER from and for any and all losses, claims, actions judgments for damages, and/or injury to persons or property and losses and expenses caused or incurred by CITY, its servants, agents, employees, -and those parties under the control or direction of the CITY. The duty to indemnify shall also include the duty to defend DEVELOPER at the CITY'S cost. 0. No Assignment. DEVELOPER shall not assign any portion of this Agreement or any privilege here under, either voluntarily or involuntarily, without the prior written consent of the CITY, which consent shall not be unreasonably withheld. P. Remedies upon Default. 1. Default by DEVELOPER. In addition to such other remedies at law or inequity that CiTY may have, in the event DEVELOPER fails or neglects to perform its obligations under the terms and provisions of this Agreement in the time and manner required herein, CITY may withhold any reimbursement due to DEVELOPER hereunder until such default is corrected to the satisfaction of CITY. 2. Default by CITY. In the event CITY fails or neglects to perform its obligations under the terms and provisions of this Agreement in the time and manner required herein, DEVELOPER shall be entitled to all remedies available at law or in equity. Q. Attornev Fees. Should either party find it necessary to employ an attorney for representation in any action seeking enforcement of any provision of this Agreement, or to recover damages for breach of this Agreement, or to resolve any disagreement as to the interpretation of this Agreement, the unsuccessful party in any final judgment or award entered pursuant to such action shall reimburse the prevailing party for all reasonable costs, charges and expenses, including attorneys' fees expended or incurred by the prevailing party in connection therewith and In connection with any appeal, and the same may be included in such judgment or award. This provision shall be deemed to be a separate contract between the parties and shall survive any default, termination or forfeiture of this Agreement. R, Notices. Page 7 of I I Any notice desired by the parties and/or required by this Agreement shall be sent via United States Mail, registered or certified mail, postage prepaid, return receipt requested, and shall be addressed as follows; CITY: City Engineer City of Meridian 33 E. Broadway Ave, Suite # 102 Meridian, Idaho 83642 with copy to: Purchasing Manager City of Meridian 33 E. Broadway Ave, Suite # 106 Meridian, Idaho 83642 DEVELOPER: JLJ Enterprises Inc. 1660 Carol Street Meridian, Idaho 83642 Such notice shall be deemed delivered if and when delivery is accepted orthree (3) days after deposit in the United States Mail. Either party shall have the right to change its address by delivering to the other party a written notification thereof in accordance with the requirements of this section. S. Governing Law, This Agregment shall be governed by and construed in a_peordance with the laws„of the State of Idaho and the ordinances of the City of Meridian. All exhibits to this Agreement are incorporated by reference and made a part of this Agreement as if the exhibits were set forth in their entirety in this Agreement. U, gntil re Agreement, This Agreement and the exhibits hereto constitute the full and entire understanding and agreement between the parties with regard to the transaction contemplated herein, and Page 8 of 11 no party shall be liable or bound to any other in any manner by any representations, warranties, covenants and.agreements except as specifically set forth herein. The term "DEVELOPER's Property" in the Agreempnt shall mean the parcels shown on Exhibit "A" attached hereto, and more specifically all of the property Included in the South Ridge Subdivision, W. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their heirs, successors and assigns, and shall survive any transfer by DEVELOPER of DEVELOPER'S Propgrty. X. Reports and Information; At such times and in such forms as the CITY may require, DEVELOPER shall furnish to CITY such statements, records, reports, data.and information as the CITY may. request pertaining to matters covered by this Agreement. Y. Audits and inspectlans. At anytime during business hours and as often as the CITY may deem necessary, there shajI be made available to.the CITY for examinatign all of DEVELOPER's.. records with respect to all matters covered by this Agreement. DEVELOPER shall permit the CITY to audit, examine, and copy such records, and to make,audits of all contracts, invoices, materials, payrolls, records of personnel, conditions of employment and other data relating to all matters covered by this Agreement. Z. Construction and Severability. If any part of this Agreement is held to be invalid or unenforceable, such holding will not affect the validity or enforceability of any other part of this Agreement so long as the remainder of the Agreement is reasonably capable of completion. Page 9 of 11 IN WITNESS WHEREOF, the parties shall cause this Agreement to be executed by their duty authorized officers the day and year first above written,- DEVELOPER: ritten; DEVELOPER: JLJ Enterprises, Inc Tittle t2-bv� Bate BYY �l6 TAMMY de WPARD, MAYOR Date FQ ..r�-H Vr iTY o Approved as to Content TH WATTS, PURCHASING MANAGER Dated: i Page 10 of 11 STATE OF IDAHO ) County of Ada ) On this 12' day of_&A116 k 2009, before me the undersigned, a Notary Public in and for said State, personally appeared -ame s L, Se-y'dil known or identified to me to be the person whose name is subscribed to the within instrument, and acknowledged to me that he/she executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. At k - Notary Pu 46 For Idaho Residing at; AIAM �" p °®��' a �� � Commission Expires:_- - 1- t i - Z.n i s +®` QP I'D STATE OF IDAHO ) ) ss County of Ada } On this day of.- M c,V- cy, 2009, before me the undersigned, a Notary public in and for said State, personally appeared TAMMY de WEERD and Jain, GCOY' 1141_-l%M, known to me to be the Mayor and City Clerk of the City of Meridian, Idaho, who executed the within Instrument and acknowledged to me.that they executed the -same on behalf of the.City of Meridian IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. Residing at: K Commission Expires: Page 11 of 11 RESOLUTION EXTENDING THE COOPERATIVE CONSTRUCTION AND REIMBURSEMENT AGREEMENT WITH JLJ ENTERPRISES AND THE CITY OF MERIDIAN ENTERED INTO ON OR ABOUT MARCH 10-12, 2009 1"m SETTLEMENT AND MUTUAL RELEASE AGREEMENT This Settlement and Mutual Release Agreement ("Agreement") is made as of the last date written below the signatures of the parties ("Effective Date") by and between Bittercreek Meadows Subdivision Homeowners Association, Inc. ("HOA"), Tim Kelly ("Kelly"), and the City of Meridian ("City"). 1. BACKGROUND. The HOA and Kelly commenced an action in the District Court for the Fourth Judicial District of the State of Idaho, in and for the County of Ada, case number CV -OC -12-05319 (the "Lawsuit") against JLJ Enterprises, Inc. ("JLJ" ), Bitterereek Meadows Water & Sewer Users Association, Inc. ("BWSA"), James L. Jewett ("Jewett"), Renascence Properties, LLC ("Renascence"), and the City. The HOA and Kelly (collectively "Plaintiffs") desire to compromise and settle the Lawsuit, as between Plaintiffs and the City, to settle any and all claims and disputes existing between Plaintiffs and the City and to mutually release each other, all according to the provisions of this Agreement. 2. SEWER CONNECTION. The City, at the City's sole cost and expense, shall connect lots 1, 2, 3, 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, and 26, BIock 1 of the Bitterereek Meadows Subdivision, according to the official plat thereof recorded on the 26th day of May, 2006, in Book 95 of Plats at pages 11674 through 11677, as instrument No. 106083883, records of Ada County, Idaho, as amended by Amended Plat of Bittercreek Meadows Subdivision, recorded on June 27, 2006 in Book 95 of Plats at pages 11732 through 11735, as Instrument No. 106102994, records of Ada County, Idaho (collectively the "Lots"), to municipal sewer service provided by the City of Kuna so that after connection, waste water effluent from the Lots flows to Kuna's waste water treatment plant without further treatment, cost (other than the typical monthly service fee charged by the City of Kuna to other residential dwellings within Kuna city limits), testing, or construction by the HOA and/or the members of the HOA and the members of the HOA can receive sewer service from the City of Kuna by agreeing to pay the typical monthly service fee charged by the City of Kuna to other residential dwellings within Kuna city limits. The date when the City has completed connecting the Lots to municipal sewer service provided by the City of Kuna and the members of the HOA can receive sewer service from the City of Kuna by agreeing to pay the typical monthly service fee charged by the City of Kuna to other residential dwellings within Kuna city limits is herein referred to as the "Connection Date". Connection to municipal sewer service provided by the City of Kuna includes, but is not limited to, payment of all connection fees, conveyance fees and other charges for connection, all construction work necessary to connect the Lots to Kuna's waste water treatment plant and the restoration and repair of all improvements within the Bittercreek Meadows Subdivision disturbed by such construction. In no event shall the HOA and/or the members of the HOA be required to consent to annexation by the City of Kuna and the refusal of the HOA and/or the members of the HOA to annex into the City of Kuna shall not relieve the City from its obligations set forth in this Section. The HOA agrees that the City may, but is not obligated to, provide the sewer services to the Lots as set forth in this Section provided such sewer service is on the same terms and conditions as required to be provided by the City of Kuna. 3. SEWER MAINTENANCE AND OPERATION. From and after the Effective Date until the date the City of Kuna agrees to assume the operation, maintenance, repair, and replacement of the Sewer Lines (as hereafter defined), the City, at the City's sole cost and expense and without reimbursement from the HOA or the members of the HOA, agrees to operate, maintain, repair, and replace the Sewer System (as hereafter defined) in accordance with applicable law. For purposes of this Agreement, the "Sewer Lines" mean all sewer lines serving the Lots except the portion of the sewer line within a Lot providing service just to that Lot. By way of example, within Lot 2 there is a sewer line serving both Lot 1 and Lot 2. The portion of the sewer line serving both Lot I and Lot 2 is a Sewer Line but the portion of the sewer Settlement and Mutual Release Agreement - 1 45406.0001.6120430.7 line serving just Lot 1 or just Lot 2 is not a Sewer Line. For purposes of this Agreement, the "Sewer System" means all Sewer Lines, the sewer lagoon pond to which the Sewer Lines connect, the sewer lagoon pond liner, the fencing surrounding the sewer lagoon pond and all other appurtenances to the Sewer Lines and/or sewer lagoon pond to which the Sewer Lines connect. 4. TITLE TO BWSA ASSETS, The City hereby quit claims to HOA any right, title or interest the City may have to any and all assets of the BWSA including, but not limited to, Lot 7, Block 1 of the Plat of Bittercreek Meadows Subdivision, the well located on Lot 7, all equipment associated with the well, and water right Permit No. 63-31957, 5. ANNUAL INSPECTION OF BIOMICROBIC UNITS. From and after the Effective Date until the Connection Date, the City, at the City's sole cost and expense, agrees to pay for the annual inspection of each biomicrobic unit located on the Lots as required by applicable law. The City shall pay for such inspections directly to Idaho Residential Wastewater Treatment Services, Inc. on behalf of each Lot owner beginning the July 2014 -June 2015 billing year. In the event the City receives any correspondence from Idaho Residential Wastewater Treatment Services, Inc. directed to the Lot owners other than billing, the City shall forward these to the HOA address identified in Paragraph 17 of this Agreement. 6. LICENSE. The HOA hereby conveys to the City a license to enter upon all lots within the Bittercreek Meadows Subdivision to perform the obligations of the City undertaken in this Agreement. The license will remain in effect for so long as the City has obligations under this Agreement. 7. ATTORNEY FEES. The City agrees the HOA and Kelly are entitled to reasonable attorney fees and costs as the prevailing party pursuant to the Water and Sewer Agreement (as defined in Section 10) in an amount to be fixed by the Court pursuant to Idaho Rule of Civil Procedure 54. The City, HOA and Kelly have been unable to reach agreement on the amount of attorney fees and costs due the HOA and Kelly, Therefore, the City, HOA and Kelly agree to submit the matter to the court as part of the resolution of the Lawsuit. The parties to this Agreement specifically authorize and hereby direct their respective counsel to promptly after the Effective Date file with the court such motions, memoranda in support or opposition of such motions and supporting affidavits and pleadings and request the court to determine the amount of attorney fees and costs the HOA and Kelly are entitled to as the prevailing party. 8. PAYMENT OF UP TO $28,856.23. Providing the City receives adequate income from assessments to require such payment, JLJ could be owed the sum of up to $28,856.23 from the City pursuant to the terms of that certain Cooperative Construction and Reimbursement Agreement 12 -Inch Water Main from the Intersection of Overland and Linder Roads West Approximately 5000 Feet dated March 12, 2009 (the "Reimbursement Agreement"). JLJ has assigned such amount to the HOA and the City hereby consents to the assignment, and will hereafter consent to the assignment of this Reimbursement Agreement from the HOA back to JLJ at any point in the future while the Reimbursement Agreement remains valid. The City agrees to pay the HOA the sum of up to $28,856.23 as it collects assessment fees from the South Ridge Subdivision in accordance with the Reimbursement Agreement. Such amounts shall be paid to Hawley Troxell and delivered to 877 Main St., Suite 1000, Boise, ID 83702, attention Timothy W. Tyree. The City agrees not to offset any amounts otherwise due the City from JLJ or otherwise raise any defense to the payment of up to $28,856.23 other than the lack of receipt of assessment fees from the South Ridge Subdivision or the expiration of term of the Reimbursement Agreement. The City agrees to extend the term of the Reimbursement Agreement until March 11, 2019, 9. SETTLEMENT WITH HOMEOWNERS. HOA and Kelly agree to seek the approval and execution by all members of the HOA to the Mutual Release Agreement attached hereto as Exhibit A. Settlement and Mutual Release Agreement - 2 45406.0001.6120430.7 This Agreement is contingent on at least three-fourths of the members executing the Mutual Release Agreement. The City agrees to execute the Mutual Release Agreement attached hereto as Exhibit A. 10. TERMINATION OF SEWER AND WATER AGREEMENT. The Amended Bittercreek Meadows Agreement for Sewer and Water Service between the City, JLJ, Bittercreek, LLC and HOA, as amended by the Second Amended Bittercreek Meadows Agreement for Sewer and Water Service (collectively the "Water and Sewer Agreement") is hereby terminated as between HOA and the City, and shall no longer be of any force or effect. 11. PLAINTIFF'S REPRESENTATIONS AND WARRANTIES. Plaintiffs represent and warrant to the City as follows: (a) Authority. HOA is a corporation duly formed and validly existing under the laws of the state of Idaho. Any individuals entering into this Agreement on behalf of HOA have authority to bind HOA. Entering into this Agreement and consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action and do not violate HOA's articles of incorporation, bylaws or any agreement to which HOA is a party. (b) Transfer. Plaintiffs, individually and collectively, have not assigned or transferred any of its rights, claims or demands of whatsoever kind against the City related to or arising out of the Lawsuit to any other person or entity. (c) Independent Review, Plaintiffs have been advised to consult counsel of their choice, that at the time of the execution of this Agreement, each was represented by counsel of his/its choice and has consulted with or had the opportunity to consult with his/its counsel and has been fully advised concerning the scope and binding, legal effect of this Agreement, the amounts of settlement, and all of the terms, conditions, covenants and other provisions of this Agreement and the fact that this is a legal and enforceable agreement. Plaintiffs acknowledge that they have relied entirely on their own counsel and their own knowledge and assessment of the Lawsuit and of all other circumstances in making this Agreement. Each person subscribing his signature hereto represents that he has personally read and understood all of the terms and provisions of this Agreement in its entirety and that he is authorized to enter into this Agreement on his personal behalf and on behalf of any entity on whose behalf he executes it. 12. THE CITY'S REPRESENTATIONS AND WARRANTIES. The City represents and warrants to PIaintiffs as follows: (a) Authority. The City is a municipal corporation duly formed and validly existing under the laws of the state of Idaho, Any individuals entering into this Agreement on behalf of the City have authority to bind the City, Entering into this Agreement and consummation of the transactions contemplated hereby have been duly authorized by all necessary action and do not violate the City's ordinances or any agreement to which the City is a party. (b) Transfer. The City has not assigned or transferred any of its rights, claims or demands of whatsoever kind against Plaintiffs related to or arising out of the Lawsuit to any other person or entity. (c) Independent Review. The City has been advised to consult counsel of its choice, that at the time of the execution of this Agreement, the City was represented by counsel of its choice and has consulted with or had the opportunity to consult with its counsel and has been fully advised concerning the scope and binding legal effect of this Agreement, the amounts of settlement, and all of the terms, conditions, covenants and other provisions of this Agreement and the fact that this is a legal and Settlement and Mutual Release Agreement - 3 45406.0001.6120430.7 enforceable agreement, The City acknowledges that it has relied entirely on its own counsel and its own knowledge and assessment of the Lawsuit and of all other circumstances in making this Agreement. Each person subscribing his/her signature hereto represents that he/she has personally read and understood all of the terms and provisions of this Agreement in its entirety and that he/she is authorized to enter into this Agreement on on behalf of any entity on whose behalf he/she executes it. 13. MUTUAL RELEASE. Except for performance of this Agreement, Plaintiffs and the City, on behalf of themselves and on behalf of their heirs, administrators, executors, personal representatives, successors and assigns, and on behalf of their past, present and future officers, directors, employees, agents, legal representatives and attorneys, and insurers, do hereby forever release, remise, discharge, and acquit the other (Plaintiffs and each of them release the City, and the City releases Plaintiffs and each of them) and their past, present and future officers, directors, employees, agents, legal representatives and attorneys, and insurers, of and from any and all, in all manner of, actions, causes of action, claims, suits, debts, sums of money, covenants, contracts, controversies, agreements, compromises, variances, rights, damages, losses, costs, legal or other expenses, attorneys' fees, judgments, executions, obligations, claims and demands of any kind whatsoever, whether vested or contingent, in law or in equity, foreseen or unforeseen, suggested or unsuggested, known or unknown, now asserted or not asserted, which any of the opposing parties ever had, shall or may have, as a result of or by reason of or in connection with the Water and Sewer Agreement, the Revised Nullification Agreement and/or the Lawsuit and/or claims or potential claims that each of the parties to this Agreement have or may have been obligated to assert against each other in said Lawsuit. The parties hereto specifically waive the provisions of any law, whether imposed by statute, regulation or otherwise, that a general release does or may not extend to claims that the party does not know or suspect to exist in its favor at the time it gives a release. 14. NO ADMISSION OF LIABILITY. This Agreement made and effected hereby is a compromise and settlement of the claims by and against the opposing parties hereto, and neither this Agreement, any payments made pursuant hereto nor any provisions herein shall be construed as an admission of liability by any party hereto, the same being denied. This Agreement is intended by all parties hereto merely to avoid further litigation and to buy their peace. 15. DISMISSAL OF LAWSUIT. The parties to this Agreement specifically authorize and hereby direct their respective counsel to execute a Stipulation and Order of Dismissal with prejudice in the pending lawsuit referred to above and to file the Stipulation and Order of Dismissal in the court upon the execution of this Agreement. The parties further agree that, in the event either party claims a breach of this Agreement following its execution, the following provisions shall apply to any suit brought by the party claiming a breach of this Agreement: (a) Presiding ,fudge. The parties consent and agree to Judge Lynn Norton, District Judge of the Fourth Judicial District of the State of Idaho, presiding over any action brought by either party for the breach of this Agreement, and that any such suit shall be filed and heard in the Fourth District Court of the State of Idaho, in and for the County of Ada. (b) Scheduling. The Parties hereby agree and consent to the following time limitations being placed upon any action brought by either party for the breach of this Agreement upon the filing of any action for such breach: (i) Upon the filing of such suit, discovery (including, but not limited to, interrogatories, requests for production, requests for admission, subpoenas, depositions, and discovery involving expert witnesses) shall be allowed for no more than four (4) months following the fling of the Settlement and Mutual Release Agreement - 4 45406.0001.6120430.7 answer by the defending party, with all such discovery to be concluded (including responses to written discovery) by the end of the four month period. (ii) All dispositive motions (including motions to dismiss and motions for summary judgment) must be filed and heard no later than sixty (60) days following the conclusion of discovery. (iii) A trial shall be scheduled so as to begin no later than ten (10) months from the date the suit is filed with the court. (iv) No deviation from the time parameters imposed herein shall be allowed except through the stipulation of the parties or by leave of the court with good cause showing. It is the intent of the parties by agreeing to these time limitations that any action for a breach of this Agreement be heard and resolved expeditiously by the court, and that any exception to these time limits should be granted only for reasons that would cause material prejudice to the requesting party if such exception is not granted, and that the requesting party has acted in good faith and has not caused or materially contributed to the situation causing a need for an extension. 16. NO RELEASE OF JLJ, BWSA AND JEWETT. This Agreement shall not compromise, limit or affect the claims Plaintiffs have against JLJ, BWSA and Jewett and Plaintiffs reserve for themselves the full and complete rights to pursue the Lawsuit and claim any and all damages and/or remedies against JLJ, BWSA and Jewett. This Agreement does not release and shall not be construed as a release of JLJ, BWSA and Jewett. 17. NOTICES. All notices given pursuant to this Agreement shall be in writing and shall be given by personal service, by United States mail or by United States express mail or other established express delivery service (such as Federal Express), postage or delivery charge prepaid, return receipt requested, addressed to the appropriate party at the address set forth below. City: City of Meridian 33 E. Broadway Ave. Meridian, Idaho 83642 HOA: Bittercreek Meadows Subdivision Homeowners Association,lnc. 3891 W. Daisy Creek St Meridian, ID 83642 Kelly: Tim Kelly 3891 W. Daisy Creek St Meridian, ID 83642 18. ENT= AGREEMENT. This Agreement and the exhibits attached hereto constitute the entire agreement between the parties. No representations, warranties or promises have been made except those set forth in this Agreement. Any agreement hereafter made shall be ineffective to change, modify or discharge the Agreement in whole or in part unless such agreement is in writing and signed by all of the parties hereto. 19. ATTORNEY FEES. In the event of any suit, act or other proceeding arising under the terms of this Agreement, or in connection with this or any of the provisions of this Agreement, the prevailing party shall be entitled to an award of and to recover reasonable attorney fees set by the court and not by a jury and to an award of and to recover other costs incurred in that suit, action or proceeding, in addition to any other relief to which it may be entitled, including any appeal thereof. Settlement and Mutual Release Agreement - 5 45406.0001.6120430.7 20. COUNTERPARTS. This Agreement may be executed simultaneously in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Facsimile or electronic transmission of any signed original document shall be the same as delivery of the original. 21. GOVERNING LAW, This Agreement and the rights and obligations of the parties hereto shall be controlled, governed, interpreted and construed according to the laws of the State of Idaho in all respects. 22. HEADINGS AND TITLES. It is understood and agreed that all of the headings and titles, and all of the subheadings and subtitles, are inserted as a matter of convenience and reference only, and in no way define, limit, extend or describe the scope or intent of this Agreement. 23. DRAFTING. The undersigned parties acknowledge that they and their respective counsel are responsible for the drafting of this Agreement, 24. SURVIVAL. The representations, warranties, and covenants set forth in this Agreement shall survive the closing and shall be deemed to be material and to have been relied upon by all parties, 25. CONTINGENCY. Notwithstanding execution of this Agreement by Plaintiffs, Plaintiffs' obligations under this Agreement are contingent upon the JLJ, BWSA, Jewett and Renascence, LLC agreeing to dismiss the Lawsuit on terms and conditions acceptable to PIaintiffs. [Signature Page(s) Follow] Settlement and Mutual Release Agreement - 6 45406.0001.6120430.7 Tim Kelly Date: Attest: Deputy City Clerk Settlement and Mutual Release Agreement - 7 Bittercreek Meadows Subdivision Homeowners Association, Inc. so Rob McCarvel, President Date: City of Meridian: Date: Tammy de Weerd, Mayor 45406.0001.6120430.7 EXHIBIT A MUTUAL RELEASE AGREEMENT This Mutual Release Agreement ("Release Agreement") is made by and between the individual homeowners who execute this Agreement below and the City of Meridian ("City"). 1. BACKGROUND. Bitterereek Meadows Subdivision Homeowners Association, Inc. ("HOA") and Tim Kelly ("Kelly") commenced an action in the District Count for the Fourth Judicial District of the State of Idaho, in and for the County of Ada, case number CV -OC -12-05319 (the "Lawsuit") against the City, Renascence Properties, LLC ("Renascence"), JLJ Enterprises, Inc. ("JLJ"), Bittercreek Meadows Water & Sewer Users Association, Inc. ("BWSA") and James L. Jewett ("Jewett"). The HOA and Kelly (collectively "Plaintiffs") desire to compromise and settle the Lawsuit, as between Plaintiffs and the City, to settle any and all claims and disputes existing between Plaintiffs and the City and to mutually release each other, all according to the provisions of a Settlement and Mutual Release Agreement between Plaintiffs and the City (the "Settlement Agreement"). The Settlement Agreement is contingent on the members of the HOA executing this Release Agreement, 2. HOMEOWNERS. Each homeowner listed below is individually referred to as a "Homeowner" in this Release Agreement and collectively as the "Homeowners". Each Homeowner is independently entering into this Release Agreement, separate and apart from each and every other Homeowner, as though each Homeowner signed a separate agreement with the City. The liability of each Homeowner under this Release Agreement is several and no Homeowner shall be liable for any breach or alleged breach of this Release Agreement caused by or related to any other Homeowner. Any Homeowner, acting alone, may enforce the terms of this Release Agreement. 3. HOMEOWNER REPRESENTATIONS AND WARRANTIES. Each Homeowner represents and warrants to the City as follows: (a) Authority. Any individuals entering into this Release Agreement on behalf of each Homeowner have authority to bind the Homeowner. Entering into this Release Agreement and consummation of the transactions contemplated hereby have been duly authorized by all necessary actions and do not violate any agreement to which the Homeowner is a party. (b) Transfer. Homeowner has not assigned or transferred any of its rights, claims or demands of whatsoever kind against the City related to or arising out of the Lawsuit to any other person or entity. (c) Independent Review, Homeowner has been advised to consult counsel of their choice, that at the time of the execution of this Release Agreement, Homeowner was represented by counsel of her/his/its choice or has elected not to be represented and has consulted with or had the opportunity to consult with her/his/its counsel and has been fully advised concerning the scope and binding legal effect of this Release Agreement, the amounts of settlement, and all of the terms, conditions, covenants and other provisions of this Release Agreement and the fact that this is a legal and enforceable agreement. Homeowner acknowledges that he/she/it has relied entirely on his/her/its own counsel and his/her/its own knowledge and assessment of the Lawsuit and of all other circumstances in making this Release Agreement. Each person subscribing his/her signature hereto represents that he/she has personally read and understood all of the terms and provisions of this Release Agreement in its entirety and that he/she is authorized to enter into this Release Agreement on his/her personal behalf and on behalf of any entity on whose behalf he/she executes it. Settlement and Mutual Release Agreement - 8 45406.0001.6120430.7 4. THE CITY'S REPRESENTATIONS AND 'WARRANTIES. The City represents and warrants to Homeowners as follows: (a) Authority. The City is a municipal corporation duly formed and validly existing under the laws of the state of Idaho. Any individuals entering into this Agreement on behalf of the City have authority to bind the City. Entering into this Agreement and consummation of the transactions contemplated hereby have been duly authorized by all necessary action and do not violate the City's ordinances or any agreement to which the City is a party. (b) Transfer. The City has not assigned or transferred any of its rights, claims or demands of whatsoever kind against Homeowners related to or arising out of the Lawsuit to any other person or entity. (e) Independent Review. The City has been advised to consult counsel of its choice, that at the time of the execution of this Agreement, the City was represented by counsel of its choice and has consulted with or had the opportunity to consult with its counsel and has been fully advised concerning the scope and binding legal effect of this Agreement, the amounts of settlement, and all of the terms, conditions, covenants and other provisions of this Agreement and the fact that this is a legal and enforceable agreement. The City acknowledges that it has relied entirely on its own counsel and its own knowledge and assessment of the Lawsuit and of all other circumstances in making this Agreement. Each person subscribing his/her signature hereto represents that lie/she has personally read and understood all of the terms and provisions of this Agreement in its entirety and that he/she is authorized to enter into this Agreement on on behalf of any entity on whose behalf he/she executes it. S. MUTUAL RELEASE. Homeowners and the City, on behalf of themselves and on behalf of their heirs, administrators, executors, personal representatives, successors and assigns, and on behalf of their past, present and future officers, directors, employees, agents, legal representatives and attorneys, affiliates, subsidiaries, partners, and insurers, do hereby forever release, remise, discharge, and acquit, the opposing parties (Homeowners and each of them release the City, and the City releases Homeowners and each of them) to this Release Agreement and their past, present and future officers, directors, employees, agents, legal representatives and attorneys, affiliates, subsidiaries, partners, and insurers, of and from any and all, in all manner of, actions, causes of action, claims, suits, debts, sums of money, covenants, contracts, controversies, agreements, compromises, variances, rights, damages, losses, costs, legal or other expenses, attorneys' fees, judgments, executions, obligations, claims and demands of any kind whatsoever, whether vested or contingent, in Iaw or in equity, foreseen or unforeseen, suggested or unsuggested, known or unknown, now asserted or not asserted, which any of the opposing parties ever had, shall or may have, as a result of or by reason of or in connection with the Water and Sewer Agreement, the Revised Nullification Agreement and/or the Lawsuit and/or claims or potential claims that each of the parties to this Agreement have or may have been obligated to assert against each other in said Lawsuit. The parties hereto specifically waive the provisions of any law, whether imposed by statute, regulation or otherwise, that a general release does or may not extend to claims that the party does not know or suspect to exist in its favor at the time it gives a release. 6. NO ADMISSION OF LIABILITY. This Release Agreement made and effected hereby is a compromise and settlement of the claims by and against the opposing parties hereto, and neither this Release Agreement nor any provisions herein shall be construed as an admission of liability by any party hereto, the same being denied. This Release Agreement is intended by all parties hereto merely to avoid further litigation and to buy their peace. Settlement and Mutual Release Agreement - 9 45406.0001 ,6120430, 7 7. NO RELEASE OF JLJ, BWSA AND JEWETT. This Agreement shall not compromise, limit or affect the claims Homeowners have or may have against JLJ, BWSA and Jewett and Homeowners reserve for themselves the full and complete rights to pursue the Lawsuit and claim any and all damages and/or remedies against JLJ, BWSA and Jewett. This Agreement does not release and shall not be construed as a release of JLJ, BWSA and Jewett. S. ENTIRE AGREEMENT. This Release Agreement and the exhibits attached hereto constitute the entire agreement between the parties. No representations, warranties or promises have been made except those set forth in this Release Agreement. Any agreement hereafter made shall be ineffective to change, modify or discharge this Release Agreement in whole or in part unless such agreement is in writing and signed by all of the parties hereto. 9. ATTORNEY FEES. In the event of any suit, act or other proceeding arising under the terms of this Release Agreement, or in connection with this or any of the provisions of this Release Agreement, the prevailing party shall be entitled to an award of and to recover reasonable attorney fees set by the court and not by a jury and to an award of and to recover other costs incurred in that suit, action or proceeding, in addition to any other relief to which it may be entitled, including any appeal thereof 10. COUNTERPARTS. This Release Agreement may be executed simultaneously in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Facsimile or electronic transmission of any signed original document shall be the same as delivery of the original. 11. GOVERNING LAW. This Release Agreement and the rights and obligations of the parties hereto shall be controlled, governed, interpreted and construed according to the laws of the State of Idaho in all respects. 12. HEADINGS AND TITLES. It is understood and agreed that all of the headings and titles, and all of the subheadings and subtitles, are inserted as a matter of convenience and reference only, and in no way define, limit, extend or describe the scope or intent of this Release Agreement. 13. SURVIVAL. The representations, warranties, and covenants set forth in this Release Agreement shall survive the closing and shall be deemed to be material and to have been relied upon by all parties. City of Meridian: Tammy de Weerd, Mayor Date: [Homeowner Signature Page(s) Follow] Settlement and Mutual Release Agreement - 10 A-1 - LOT 1 Lance Beeson Donna Beeson LOT 3 Nathon Argon Sonny Argon LOT 5 Chris Satchwell April Satchwell LOT 8 Paul Orlando Caryn Orlando LOT 10 Aaron Whitman Janice Whitman LOT 12 Greg Gould LOT 14 Settlement and Mutual Release Agreement - 11 LOT Troy Larsen Suzy Larsen LOT 4 John Hobson Marianne Saunders LOT 6 Dan Cheney Tonya Cheney LOT 9 Jenifer Brown Tony Brown LOT 11 Spencer Hill Sara Hill LOT 13 Kevin Wittmuss Amy Witt miss LOT 16 45406.0001.6 120410 7 Amber Cullum Mike Cullum LOT 17 Brett Webb Alex Webb LOT 19 Sabrina Wilson Shawn Wilson�� LOT 21 BANK OF THE WEST By: Name: Its: LOT 23 Kelly Adams Sue Adams LOT 25 Les Oliver Suzi Oliver Settlement and Mutual Release Agreement - 12 Chris Wells Katie Wells LOT 18 Jeff Obenchain Jenny Obenchain LOT 20 Jared Papa Holl Py apa LOT 22 Erik Richardson Maggie Richardson LOT 24 Tim Kelly Susan Kelly LOT 26 Rhonda McCarvel Rob McCarvel