HomeMy WebLinkAbout4474 Resolution - Spencer 4 Estates Water Utility Developer Reimbursement_Agr
Resolution – Water DRA - 1
RESOLUTION NO. 4474
A RESOLUTION OF THE CITY OF PASCO, WASHINGTON,
AUTHORIZING THE CITY MANAGER TO EXECUTE A DEVELOPER
REIMBURSEMENT AGREEMENT WITH BIG SKY DEVELOPERS, LLC FOR
THE CONSTRUCTION OF WATER UTILITY IMPROVEMENTS FOR
SPENCER ESTATES, PHASE 4.
WHEREAS, RCW 35.91 and Chapter 14.25 of the Pasco Municipal Code (PMC) provides
a statutory framework for developers to enter into Developer Reimbursement Agreements when
the developer, as a condition of development, pays the costs of necessary infrastructure
improvements; and
WHEREAS, Big Sky Developers, LLC, has submitted a complete and accurate application
for a Developer Reimbursement Agreement; and
WHEREAS, Section 14.25.030(4) of the PMC requires the Public Works Director, within
28 days of receipt of a Developer Reimbursement Agreement application to provide notice to the
developer whether the application is complete or needs to be supplemented or amended within 30
days of such notice unless extended within the Public Works Director’s discretion; and
WHEREAS, the City of Pasco (City) shall provide notice of its intent to participate in any
Developer Reimbursement Agreement to the public; and
WHEREAS, the City shall also provide notice of its preliminary assessment
reimbursement area (those to repay the developer debt) to provide the property owners within the
preliminary assessment area the opportunity to request the matter be submitted to a public hearing,
within 20 days of date of mailing of the notice, before City Council action; and
WHEREAS, the City mailed notices of the preliminary assessment and reimbursement to
the property owners within the preliminary reimbursement area on November 29, 2023, and did
not receive in writing a request for a hearing before City Council; and
WHEREAS, utility system improvements include infrastructure projects related to City
water, sewer and storm sewer which are required to be constructed as a prerequisite of continued
development; and.
WHEREAS, utility system Developer Reimbursement Agreements requested by
developers shall be entered into by the City of Pasco pursuant to Section 14.25.030(3) of the PMC
once the prerequisites of Section 14.25 of the PMC have been met; and
WHEREAS, utility Developer Reimbursement Agreements shall meet the development
criteria as detailed in Section 14.25.030(3)(b) of the PMC; and
Resolution – Water DRA - 2
WHEREAS, Big Sky Developers, LLC, agrees to payment of project costs, including legal
and administrative costs, as set forth in the Developer Reimbursement Agreement, attached hereto
as Exhibit A; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PASCO, WASHINGTON:
That the City Manager is authorized to sign and execute the Developer Reimbursement
Agreement with Big Sky Develops, LLC for water utility improvements, a copy of which is
attached hereto and incorporated herein by reference as Exhibit A.
Be It Further Resolved, that the City Manager is authorized to make minor substantive
changes as necessary to execute the Developer Reimbursement Agreement.
Be It Further Resolved, that this Resolution shall take effect immediately.
PASSED by the City Council of the City of Pasco, Washington, and approved as provided
by law, on this 5th day of August, 2024.
_____________________________
Pete Serrano
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________
Debra Barham, MMC Kerr Ferguson Law, PLLC
City Clerk City Attorneys
Big Sky Developers, LLC/Dave Greeno – AGRMT2023-020
Reimbursement Agreement - 1
FILED FOR RECORD AT REQUEST OF:
City of Pasco, Washington
WHEN RECORDED RETURN TO:
City of Pasco, Washington
525 North 3rd Avenue
Pasco, WA 99301
Developers Tax Parcel No.: 126-150-142 GRMT2023-020 w
Additional Parcels and Full Legal Descriptions attached hereto as Exhibit B
CITY OF PASCO
DEVELOPER REIMBURSEMENT AGREEMENT
THIS AGREEMENT, made and entered into this ____ day of _________________,
2024, by and between the City of Pasco, a Municipal Corporation of the State of Washington,
hereinafter referred to as “City”, and BIG SKY DEVELOPERS LLC, their successors and assigns,
hereinafter referred to as “Developer”; and
WHEREAS, RCW Chapter 35.91 and PMC 14.25 authorize contracts between a
municipality and the owners of real estate within the municipality’s corporate limits or within ten
(10) miles of the municipality’s corporate limits, who construct utility facilities to serve their own
properties and other properties, whereby such owners and municipalities may be reimbursed by
the owners of other real property who did not contribute to the original cost of the construction of
the facilities, but who later desire to connect their properties to said facilities.
NOW, THEREFORE, the parties hereby mutually agree as follows:
1. Developer has constructed the following described extension of City’s facilities:
A 16” ductile iron water main in the Burns Road ROW beginning at the
existing blow-off in Burns Road along the western edge of the Spencer
Estates Phase 3. Extending approximately 1,500’ west, terminating at the
intersection of Burns Road and Shoreline Road. The project includes the
installation of four (4) new fire hydrants along the northern side of Burns
Road.
Big Sky Developers, LLC/Dave Greeno – AGRMT2023-020
Reimbursement Agreement - 2
2. The improvements have been constructed in accordance with plans and
specifications approved by City prior to construction and Developer has supplied
City with reproducible as-built drawings regarding the facilities.
3. In addition to serving properties owned by Developer at the outset of construction,
the facilities constructed will also serve the following described parcels of real
property, and any subdivisions of such parcels, that did not contribute to the cost of
the facilities construction, hereinafter referred to in aggregate as the "Assessment
Area", which is determined at the sole discretion of the City, and which are
identified and legally described in Exhibit B.
4. As the facilities have been construction in accordance with City Codes and
Standards, applicant obtained all permits required by the City’s Codes and
Standards. The work is physically complete and inspected by the City as required
by the Public Works Director, or his designee. Developer agrees to convey such
facilities to City for the consideration and benefits of City. Upon completion of
issuance of Warranty Letter the City will thereafter own and operate said facilities
subject to all of the laws and regulations, fees and assessments of City.
5. City and Developer agree that Developer’s contributions to the total project costs
is shown in Exhibit A, which is allowed by statute to include costs for the design,
construction engineering, inspection, construction, administrative, legal and other
costs attributable to the project.
6. City and Developer agree that the City’s contributions to the total project costs is
or will be valued at $$$$, which includes costs for the design, construction
engineering, inspection, construction, administrative, legal and other costs
attributable to the project.
7. City and Developer agree that the Total Assessment that is attributed to the
Assessment Area is shown in Exhibit A. City and Developer agree that Developer
is entitled to a potential total reimbursement, less any collection charges deducted
by the City, of a maximum of total assessment as shown in Exhibit A.
8. The facilities subject to this Agreement are included within the City's
comprehensive utility plan, and no additional comprehensive plan approval for the
utility system improvements was required.
9. Execution of this Agreement is conditioned upon:
Inspection and approval of the utility system improvements by the City;
Big Sky Developers, LLC/Dave Greeno – AGRMT2023-020
Reimbursement Agreement - 3
A. Full compliance with the Developer’s obligations under this Agreement and
with the City’s rules and regulations with respect to the project described in
Section 1.
B. The Developer shall pay all of the City’s costs associated with processing
this latecomer agreement including, but not limited to, engineering costs as
set forth in Chapter 3.35 PMC, and the actual legal, recording, and
administration costs.
C. City verification and approval of all contracts and costs related to the utility
system improvements; and
D. Within one hundred and twenty (120) days of the completion of the utility
system improvements, Developer must submit the total actual cost of the
utility system improvements to the City.
10. Developer agreements associated with street system improvements shall be valid
for a period not to exceed 15 years from the effective date of the agreement; and
developer agreements associated with utility system improvements shall be valid
for a period not to exceed 20 years from the effective date of the agreement.
While a developer agreement is valid, any person, firm or corporation now or
hereafter owning benefitted properties described below, or segregated parcels
thereof, desiring to connect to the described facilities, shall first pay their pro-rata
share of the total cost of the facilities (“Total Assessment”). For this project, the
Total Assessment is shown in Exhibit A. The individual Assessment associated
with each parcel of benefited property described in this Agreement shall be charged
to the property owner as shown in Exhibit A.
11. No person, firm or corporation shall be granted a permit or be authorized by City
to connect to or use the referenced facilities during the period of time prescribed in
Paragraph 10 above without first paying to City, in addition to any and all other
costs, assessments and charges made and assessed for such tap or use, the amount
required by the provisions of this contract.
12. The City shall deduct from all assessment reimbursement payments it collects; an
amount (collection charge) as designated in Pasco Municipal Code (“PMC”)
3.35.180 to cover its administrative collection costs. After deduction of the
collection charge, each reimbursement assessment payment will be disbursed to the
Developer according to the terms of this Agreement. Any amounts so collected
during the time period in Paragraph 10 above by City and due to Developer, shall
be remitted to Developer or assigns within sixty (60) days of the receipt thereof, in
accordance with this Agreement.
Big Sky Developers, LLC/Dave Greeno – AGRMT2023-020
Reimbursement Agreement - 4
13. Developer agrees to indemnify, defend and hold the City harmless from any action,
claim or proceeding brought or maintained by any property owner challenging the
validity or enforceability of this Agreement. In turn, the City agrees to cooperate
with the Developer in the course of any such claim, proceeding or action to provide
reasonable and lawful access to City records and witnesses.
14. Any funds collected by City and payable to Developer in accordance with the terms
of this contract shall be remitted to Developer at the following address:
Address: BIG SKY DEVELOPERS LLC
12406 EAGLE REACH CT
PASCO, WA 99301-9001
Phone: (509) 521-4834
15. In accordance with Pasco Municipal Code Section 14.25.60(2), Developer shall
provide to the City in writing every two (2) years from the date this Agreement was
executed, information regarding the current contact name, address, and telephone
number of the person, company or partnership that originally entered into the
Agreement. If the Developer fails to comply with the notification requirements
within sixty (60) days of the specified time, then City may collect any
reimbursement funds owed to the Developer under this Agreement, and such funds
shall be deposited into the capital expenditure account of the City’s utility fund.
16. If prior to the expiration of one (1) year after the date of conveyance of the facilities
by Developer to City (issuance of Warranty Letter), any work is found to be
defective, Developer shall promptly and without cost to City, either correct such
defective work or, if it has been rejected by City, remove and replace it with non -
defective work. If Developer does not promptly comply with the terms of such
instructions, City may have the defective work corrected or the rejected work
removed and replaced and all direct and indirect costs of such removal and
replacement, including compensation for professional services, shall be withheld
from the reimbursement assessment payments that are due to Developer.
17. Developer agrees that once the City has collected all amounts under this
Agreement, up to a maximum as shown in Exhibit A of this Agreement and remitted
such amount (less any collection charges) to Developer, that City shall remit to
Developer no further payments under this contract.
18. Developer hereunder is an independent contractor and is not an agent or employee
of City.
19. The contract must be recorded in the appropriate county auditor's office within 30
days of its final execution.
Big Sky Developers, LLC/Dave Greeno – AGRMT2023-020
Reimbursement Agreement - 5
20.In the event of a dispute between the parties regarding the interpretation, breach or
enforcement of this Agreement, the parties shall first meet in a good faith effort to
resolve the dispute by themselves or with the assistance of a mediator. The
remaining dispute shall be resolved by arbitration pursuant to RCW 7.04A, as
amended, the Mandatory Rules of Arbitration (MAR), with all parties waiving the
right of a jury trial upon de novo review, with the substantially prevailing party
being awarded its reasonable attorney fees and costs against the other.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and
year first above written.
CITY OF PASCO: DEVELOPER:
By: ________________________ By: ___________________________
Adam Lincoln, City Manager Dave Greeno, Managing Member
ATTEST:
____________________________
Debra Barham, MMC
City Clerk
APPROVED AS TO FORM:
________________________________
Kerr Ferguson Law, PLLC
City Attorneys
Big Sky Developers, LLC/Dave Greeno – AGRMT2023-020
Reimbursement Agreement - 6
STATE OF WASHINGTON )
: ss
COUNTY OF FRANKLIN )
On this day personally appeared before me ADAM LINCOLN, City Manager of the City
of Pasco, Washington, described in and who executed the within and foregoing instrument, and
acknowledged that he signed the same as his free and voluntary act and deed for t he uses and
purposes therein mentioned.
GIVEN under my hand and official seal this ___ day of ______________, 2024.
____________________________________________
NOTARY PUBLIC in and for the State of Washington
Print Name: _________________________________
Residing at __________________________________
My Commission Expires: ______________________
STATE OF WASHINGTON )
: ss
COUNTY OF FRANKLIN )
On this day personally appeared before me DAVE GREENO, to be known to be the
individual described in and who executed the within and foregoing instrument and acknowledged
that he signed the same as his free and voluntary act and deed for the uses and purposes therein
mentioned.
GIVEN under my hand and official seal this ___ day of _____________, 2024.
____________________________________________
NOTARY PUBLIC in and for the State of Washington
Print Name: _________________________________
Residing at: __________________________________
My Commission Expires: _______________________
Big Sky Developers, LLC/Dave Greeno – AGRMT2023-020
Reimbursement Agreement - 7
Exhibit A
Spencer Estates Ph. 4
Spencer Estates Ph. 4 Latecomer's Agreement
Improvement 8" Water - Burns Road Proj. # AGRMT2023-020 w
Build Length (LF) (Calc.
Method) Additional Length (LF)
Total Estimated Cost of
Improvement $144,170.06 City Adm. Costs $ -
Benefitting Parcels
Parcel #, Owner Frontage (ft) Total Benefit Distr.
%
Total Benefit
Distr. $
126150142,
Big Sky Developers, LLC
(Developer)
1187.00 40.0% $ 57,736.12
126150096,
Chubby Cherries, LLC 295.00 10.0% $ 14,348.91
126160136,
Chubby Cherries, LLC 882.00 29.8% $ 42,900.81
126160128,
Chubby Cherries, LLC 275.00 9.3% $ 13,376.10
126160129,
SG Land Management, LLC 325.00 11.0% $ 15,808.12
TOTAL 2964.00 100.0% $ 144,170.06
Big Sky Developers, LLC/Dave Greeno – AGRMT2023-020
Reimbursement Agreement - 8
Exhibit B
PARCEL: 126-150-142 DEVELOPER
LOT 2, SHORT PLAT.2018-32, ACCORDING TO THE SURVEY. RECORDED UNDER AUDITOR’S FILE
NO. 1886838, RECORDS FOR FRANKLIN COUNTY, WASHINGTON.
PARCEL: 126-160-128
SHORT PLAT 2021-08 LOT 1
PARCEL: 126-160-129
LOT 2, SHORT PLAT.2021-08, ACCORDING TO THE SURVEY THERE OF RECORDED UNDER
AUDITOR’S FILE NO. 1941262, FRANKLIN COUNTY, WASHINGTON.
PARCEL: 126-160-136
THAT PORTION OF GOVERNMENT LOT 1, SECTION 12, TOWNSHIP 9 NORTH, RANGE 28 EAST,
W.M., FRANKLIN COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS: COMMENCING AT THE
NORTH QUARTER CORNER OF SAID SECTION 12; THENCE NORTH 89°08'04” WEST ALONG THE
NORTH LINE OF SAID SECTION 12, 1458.20 FEET TO THE TRUE POINT OF BEGINNING; THENCE
SOUTH 11°25’03” WEST 274.64 FEET; THENCE NORTH 89°08'04" WEST 925.65 FEET TO THE
EAST LINE OF THAT CERTAIN PARCEL CONVEYED TO THE UNITED STATES BY DEED RECORDED
UNDER AUDITOR'S FILE NO. 161482; THENCE NORTH 11°25'03” EAST ALONG SAID EAST LINE,
274.64 FEET; THENCE SOUTH 89°08'04" EAST 925.65 FEET TO THE TRUE POINT OF BEGINNING;
EXCEPT COUNTY ROADS (SHOWN AS TRACT 1 (12-9-28) OF RECORD SURVEY RECORDED UNDER
AUDITOR’S FILE NO. 514210)
PARCEL: 126-150-095
THAT PORTION OF GOVERNMENT LOT 4 IN SECTION 1, TOWNSHIP 9 NORTH, RANGE 28, EAST,
W.M. FRANKLIN COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS:
COMMENCING AT THE SOUTH QUARTER CORNER OF SAID SECTION 1; THENCE SOUTH
89°56’10” WEST ALONG THE SOUTH LINE OF SAID SECTION 1, 2385.61 FEET TO THE EAST LINE
OF THAT CERTAIN PARCEL CONVEYED TO THE UNITED STATES BY DEED RECORDED UNDER
AUDITOR'S FILE NO. 161482 BEING MARKED WITH AN ARMY CORPS OF ENGINEERS BRASS DISK;
THENCE ALONG SAID EAST LINE, NORTH 20°35'09" EAST A DISTANCE OF 222.97 FEET TO THE
TRUE POINT OF BEGINNING; THENCE CONTINUING ALONG SAID EAST LINE, NORTH 20°35’09"
EAST A DISTANCE OF 418.06 FEET; THENCE SOUTH 69°24’51" EAST A DISTANCE OF 393.00 FEET;
THENCE SOUTH 20°3S’09" WEST A DISTANCE OF 384.00 FEET TO THE BEGINNING OF A CURVE
CONCAVE TO THE EAST HAVING A RADIUS OF 200.00 FEET; THENCE SOUTHERLY ALONG THE
ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 20°39'O0 A DISTANCE OF 72.08 FEET;
THENCE SOUTH 00°03'50" EAST A DISTANCE OF 1.40 FEET TO THE NORTHERLY MARGIN OF
Big Sky Developers, LLC/Dave Greeno – AGRMT2023-020
Reimbursement Agreement - 9
BURNS ROAD; THENCE SOUTH 89°56’10" WEST ALONG SAID NORTHERLY MARGIN A DISTANCE
OF 104.98 FEET; THENCE LEAVING SAID SOUTHERLY MARGIN, NORTH 00°03'50" WEST A
DISTANCE OF 108.23 FEET; THENCE NORTH 75°01'05" WEST A DISTANCE OF 271.23 FEET TO
THE POINT OF BEGINNING AND THE END OF THIS DESCRIPTION
PARCEL: 126-150-096
Description: THAT PORTION OF GOVERNMENT LOT 4 IN SECTION 1, TOWNSHIP 9 NORTH,
RANGE 28 EAST, W.M., FRANKLIN COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS:
SM 2023-006 BLA PER RS-1968525 PARCEL 126150174 WAS 2.67 AC, PARCEL 126150094 WAS
2.16 AC AFTER BLA THE NEW PARCELS ARE 126150095 3.83 AC AND 126150096 1.0 AC FOR
2023 TAX YEAR