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MOU/City and Meadows Edge/Transfer of Water Rights & UsageMEMORANDUM OF UNDERSTANDING between THE CITY OF KALISPELL, MONTANA and MEADOWS EDGE, LLC FOR THE TRANSFER OF WATER RIGHTS AND WATER USAGE This agreement ("MOU") is made and entered into by and between the City of Kalispell, a municipal corporation incorporated and organized under the laws of the State of Montana, ("City") with its business office at 201 1" Ave E, Kalispell, MT 59901 and Meadows Edge, LLC ("Meadows Edge") a limited liability company organized under the laws of the State of Montana with its business office at P.O. Box 2190, Woodland, WA 98674-0021 for the purposes set forth below. RECITALS 1. Upon the petition of Meadows Edge, the City annexed property owned by Meadows Edge into the City by Resolution No. 5873 and particularly described as follows: Tract 3 of COS 18892 in the East Half of Section 3 and Parcel A of COS 15268 in the Southwest Quarter of Section 2, Township 28 North, Range 22 West, P.M.M., Flathead County, Montana. 2. Thereafter the City adopted a zoning designation for the property as a Planned Unit Development by Ordinance No. 1810 and approved the preliminary plat for the property by Resolution No. 5874. 3. The City serves as the owner and operator/manager of a municipal water system known as the Kalispell Water Utility System, which provides potable water services to the City of Kalispell including the subdivision of Meadows Edge. 4. The City water service regulations require all properties annexing into the City and receiving water service from the City water utility to transfer all water rights benefitting the property being served to the City. 5. Meadows Edge seeks to develop the annexed property in phases and to utilize its water rights in such a fashion as to allow for the irrigation of the yet to be developed agricultural land from the surface water right it holds under the Statement of Claim 76LJ148685. 6. The City regulations do not allow the use of surface waters for purposes of potable water or irrigation of property that has been developed for residential use. Water Rights MOU — City of Kalispell/Meadows Edge, LLC - Page 1 NOW, THEREFORE the City and Meadows Edge agree as follows: 1. The foregoing recitals are true and correct and by this reference are incorporated into the terms of this MOU. 2. Meadows Edge shall transfer all water rights it holds on the property (Statements of Claim 76LJ148685, 148695, 148679, and Provisional Permit 76LJ2318) to the City prior to final plat of Phase I of the subdivision. 3. The City shall allow continued use of the water right described in Statement of Claim 76LJ148679 for the sole purpose of irrigation of unimproved portions of the development which have not received final plat approval for a maximum period of 10 years or at the time of approval of the final plat of the last phase of the development, whichever occurs first. 4. As the common areas, parks and boulevard areas are developed in each phase of the subdivision and prior to the final plat of each phase, all irrigation shall be conducted to utilize only the City potable water services, which have been setup, established and metered for such purposes, meeting the requirements of the regulations for water service as well as the Design and Construction Standards. IN WITNESS WHEREOF the parties have subscribed their names on the dates hereinafter written. n '5/-/ 9 Date Date FOR ME OWS E GE, LLC Wade Rademacher, Project Mana FOR THE CITY OF KALISPELL Doug Russe City Manager Water Rights MOU — City of KalispeWMeadows Edge, LLC - Page 2 STATE OF MONTANA ) ) ss. County of Flathead ) On this ( day of MCL, 2019, before me, a Notary Public for the State of Montana, personally appeared W proved 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 hereinabove first written. AIMEE BRUNCKHORST eAUHcrh pvgi °9�, NOTARY PUBLIC for the *; . SEAL j� �rFaF State of Montana t Lakeside, Montane Expires µoP: mission December 40 2020 STATE OF MONTANA ) ) ss. County of Flathead ) NOTARY PUBLIC for the State of Montana Printed Name: Residing at: My Commission expires: On this ( day of VA 2019, before me, a Notary Public for the State of Montana, personally appeared � Qu`66k , proved 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 hereinabove first written. JUDI A. FUNK NOTARY PUBLIC foi State of Montana Residing at Kalispell, Mi My Commission Expi 'ARY PUBLIC for the State of Montana expires: Water Rights MOU — City of Kalispell/Meadows Edge, LLC - Page 3