Developer's Extension AgreementCity of Kalispell Public Works Department
Post Office Box 1997, Kalispell, Montana 59903-1997 - Telephone (406)758-7720, Fax (406)758-7831
January 18, 2002
To: Charles Harball, Interim City Attorney
Chris A. Kukulski, City Manager
From: James C. Hansz, PE, Director of Public Works/City
Subject: Developer's Extension Agreement — Lonepine Viei
Attached is a copy of the developer extension agreement for Lonepine. Recent inquiries
for sewer service have come from adjacent property owners. They have been stunned to learn of
this agreement and of the large fees they must pay to obtain access to the water/sewer facilities.
It appears this agreement was never recorded and there is every likelihood that none of
the property owners was aware of the terms in this agreement when it was created. Further, the
City's Extension of Services Policy (Resolution #4241, November 1996) requires that all
extension agreements are subject to Council approval of the parcels and assessments to be
included. No record exists of the required Council approval.
Please review this document and let me know if it is enforceable and whether the City has
any potential liability for having entered into the agreement.
•'J 1 11430913RbN
This Agreement, made and entered into this Z97V day of
N4Y , 19940, by and between the City of Kalispell,
hereinafter referred to as "City" and U.S. Partnership II,
Developer of Lonepine View Estates, a Kalispell contiguous
Subdivision, hereinafter referred to as "Developer".
WITNESSETH:
WHEREAS, it is to the mutual benefit of the City and the
Developer to provide an extended sewer main and an extended water
main for property owned by the Developer and described as
Lonepine View Estates, a subdivision located contiguous
Kalispell, Montana; and,
WHEREAS, the parties to this agreement desire to provide for
the collection of the expenses and costs of the extended sewer
main, the extended water main, and the arterial street required
for the development of Lonepine View Estates.
NOW THEREFORE, in consideration of the mutual covenants
herein contained, the parties to this agreement do hereby agree
as follows:
DEFINITIONS
1. "Agreement" shall mean this Developer Extension
Agreement.
2. "Design Area" shall mean and include those parcels of
land shown on Exhibit A attached hereto and incorp-
orated herein by this reference.
3. "Extended Sewer Main" shall mean that sewer main and
appurtenances extending from the existing sewer main
located in Sunnyside Drive, extended as shown on
Exhibit B.
4. "Sewer Service Area" shall mean the parcels of land
that are to be served by the Extended Sewer Main shown
as Exhibit A, "Design Area", bridge crossing included.
5. "Extended Water Main" shall mean that water main and
appurtenances extending from the existing water main
located on Sunnyside Drive to the end of the new water
extension as shown on Exhibit B.
6. "Water Service Area" shall mean the parcels of land
that are to be served by the Extended Water Main as
1
shown on Exhibit A, "Design Area", bridge crossing
included.
7. "Late -Comer" shall mean the entity connecting to the
Extended Sewer Main, the Extended Water Main, or the
Extended Arterial Street who contributes sewage to the
Extended Sewer Main or who receives water from the
Extended Water Main, use of Extended Arterial Street
and who did not share in the initial cost of the
Extended Sewer Main and the Extended Water Main.
8. "Initial Cost" shall mean and include all cost related
to the installation of the Extended Sewer Main, the
Extended Water Main which shall consist of the
construction costs. See Exhibits A and B.
9. "Entity" shall mean an owner's specific parcel of land
shown on Exhibit A attached and shall mean the owner of
parcel.
10. "Escrow Agent" shall mean Escrow Services, whereto the
Late -Comer pays the stipulated fee and from which dis-
bursement is made to the Developer.
This Agreement shall be in effect for a period of ten
(10) years after completion of the Extended Sewer Main and
the Extended Water Main. The date of completion is hereby
established as July 1, 1996. Therefore, the termination
date shall be July 1, 2006. Upon the termination of this
Agreement, the Developer shall not be entitled to any
further Late -Comer fees.
During the period of the Agreement, the City shall have
the right to allow other Ehtities outside of the service
areas shown on Exhibit A, to connect to the Extended Sewer
Main and to the Extended We.ter Main without payment of any
fee to the Developer.
INITIAL COST
The Developer shall pay the initial cost of
constructing the Extended Sewer Main and the Extended Water
Main. The initial cost is herein established as follows:
2
Extended Water Main
Extended Sewer Main
Bridge Crossing
Total
$ 50,763
40,624
87,324
$178,711
GUARANTEE AND MAINTENANCE
The City shall maintain the acceptably constructed
Extended Sewer Main and Extended Water Main. However, the
Developer shall replace or repair any defect in material or
workmanship for a period of one (1) year after the foregoing
completion date. If any defects in material or workmanship
are discovered during the one-year warranty period, the
Developer shall replace or repair such defects to the
satisfaction of the City Engineer. Such replacement or
repair work shall also be subject to a one-year warranty as
described above.
raflallmmsaft
The City shall receive payment for establishing usage
and connecting fees, in accordance with the rate schedule by
the City.
ESTABLISHING OF ESCROW AGENT
The Developer shall pay all costs in establishing and
maintaining the escrow account.
LATE-COMER'S FEE TO DEVELOPER
With the exception of Lot 117(2) to be known as
Lonepine View Estates, which are lots owned by the Developer
and were the cause of the Extended Sewer Main and Extended
Water Main, the City shall not issue any permits for
connection to the Extended Sewer Main or Extended Water Main
or any connection which will contribute to the Extended
Sewer Main or receive water from the Extended Water Main,
unless said Late -Comer shall show proof of payment of the
fees required herein, at the time the Late -Comer makes
application for a permit to connect, nor will the City allow
any properties in the Sewer Service Area, and Water Service
Area to be connected without paying the Late-Comer's fee
included herein.
3
EXTENDED SEWER MAIN, WATER MAIN AND ARTERIAL STREET
Tract
Tract
6LA
Tract
6L
Tract
7AB
(South of River)
Tract
7AACAA
Tract
7AACA
Tract
7AAAA
Tract
117(1)
Tract
117(2)
Tract
7B
Tract
8
Tract
10 (Lot 1)
Tract
10A (Lot 1)
Total Acres
109110.1
Estimated*
Acreage
15.0
15.0
3.0
1.0
1.0
2.0
4.07
8.72
2.00
10.00
14.00
1.00
Late-Comer's Fee
Estimated Cost/Tract/Acre
Sewer** Water***
$16,455/$1097 $18,435/$1229
16,455/ 1097 18,435/ 1229
3,291/ 1097 3,687/ 1229
1,097/ 1097
1,097/ 1097
2,194/ 1097
4,491/ 1103
9,587/ 1099
2,194/ 1097
10,970/ 1097
15,358/ 1097
1,097/ 1097
84,286
1,229/ 1229
1,229/ 1229
2,458/ 1229
5,027/ 1235
10,742/ 1232
2,458/ 1229
12,290/ 1229
17,206/ 1229
1,229/ 1229
94,425
* Estimated acreage requires verification of actual tract acreage at
which time the acreage fee multiplier will be utilized to determine each
individual tract late-comer's fee.
** $84,286/76.79 Acres = $1097/Acre
*** $94,425/76.79 Acres = $1229/Acre
The above established fees shall be increased ten percent
(100) on each twelve (12) month anniversary date of this
Agreement.
IN WITNESS WHEREOF, the parties hereto have executed
this Agreement the day and the year first above written.
CITY OF KALI
j
By
ATTEST
This Agreement is binding upon the parties, their heirs
and assigns.
Dated this Z81V day of /''(,ay , 19 %.
M
CITY OF KALI
By
By
U.S. Pcirtnership II
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