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HomeMy WebLinkAbout4475 Resolution - Big Sky Developers - Pressure Release Value Utility Developer Reimbursement AgrResolution – Pressure Release Valve Dev. Reimbursement Agr. - 1 RESOLUTION NO. 4475 A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE CITY MANAGER TO EXECUTE A UTILITY DEVELOPER REIMBURSEMENT AGREEMENT WITH BIG SKY DEVELOPERS, LLC FOR THE CONSTRUCTION OF UTILITY IMPROVEMENTS FOR THE DUNES, BURNS ROAD PRESSURE RELEASE VALVE. WHEREAS, RCW 35.91 and Section 14.25 of the Pasco Municipal Code (PMC) provides a statutory framework for developers to enter into a Developer Reimbursement Agreement 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) 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 discretion; and WHEREAS, the 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 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 PMC 14.25.030(3) of the PMC once the prerequisite of Section 14.25 of the PMC have been met; and WHEREAS, utility Developer Reimbursement Agreements shall meet the development criteria as detailed in PMC 14.25.030(3)(b) of the PMC; and Resolution – Pressure Release Valve Dev. Reimbursement Agr. - 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 as Exhibit A. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Manager is authorized to execute the utility Developer Reimbursement Agreement with Big Sky Developers, LLC for pressure release valve, a copy of which is attached hereto and incorporated herein by reference as Exhibit A. Be It Further Resolved, that the City Manager be authorized to make minor substantive changes as necessary to execute the Developer Reimbursement Agreement as needed. Be It Further Resolved, that this Resolution shall take effect immediately. PASSED by the City Council of the City of Pasco, Washington, 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 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 AGRMT2023-048 w PROJECT: Dunes - PRV Developers Tax Parcel No.: 115-210-038 Additional Parcels and Full Legal Descriptions attached hereto as Exhibit A 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 Utilities 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: Developer installed a Pressure Reducing Valve within the ROW of Burns Road between water pressure zones 1 and 3 creating zone 2 which was necessary for their development to achieve acceptable water pressures. The PRV was installed at the Northeast corner of a future intersection of Burns Road approximately 1,300 feet west of Road 108. 2. The improvements have been constructed in accordance with plans and specifications approved by the City prior to construction and Developer has supplied the 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 City, and which are identified and legally described in Exhibit A . 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 the City for the consideration and benefits of the City. Upon completion 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 the City. 5. City and Developer agree that Developer’s contributions to the total project costs is shown in Exhibit B, 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 City’s contributions to the total project costs is or will be valued at $0, 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 B. 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 B. 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 City; 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 B. 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 B. 11. No person, firm or corporation shall be granted a permit or be authorized by the City to connect to or use the referenced facilities during the period of time prescribed in Paragraph 10 above without first paying to the 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. 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. 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 Attn: Dave Greeno, Managing Member 5426 Road 68 #D113 Pasco, WA 99301 Phone: 509-412-1722 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 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 City has collected all amounts under this Agreement, up to a maximum as shown in Exhibit B of this Agreement and remitted such amount (less any collection charges) to Developer, that the 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 the City. 19.The contract must be recorded in the appropriate county auditor's office within 30 days of its final execution. 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 R. Lincoln, City Manager Dave Greeno, Managing Member Big Sky Developers, LLC or By: ___________________________ Name: ___________________________ Title: ___________________________ Big Sky Developers, LLC ATTEST: ____________________________ Debra Barham, MMC City Clerk APPROVED AS TO FORM: ________________________________ Kerr Ferguson Law, PLLC City Attorney STATE OF WASHINGTON ) : ss COUNTY OF FRANKLIN ) On this day personally appeared before me ADAM R. LINCOLN, City Manager for 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 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: ___________________ STATE OF WASHINGTON ) : ss COUNTY OF FRANKLIN ) On this day personally appeared before me ___________________________, for Big Sky Developers, LLC 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: _______________________ EXHIBIT A AGRMT2023-048w PRV Developers Tax Parcel No. 115-210-038 Legal Description: *RETIRED; NEW PARCELS 115-210-061 thru 115-210-129 TOWNSHIP 9 RANGE 29 SECTION 7 Benefitting Parcel No. 115-210-039 Legal Description: TOWNSHIP 9 RANGE 29 SECTION 07; LOT 7 OF RECORD OF SURVEY RECORDED IN VOLUME 4 OF SURVEYS PAGES 125-129, UNDER AUDITOR’S FILE NUMBER 1932625, RECORDS OF FRANKLIN COUNTY, WASHINGTON. Benefitting Parcel No. 115-160-357 (PARENT -RETIRED) Legal Description: TOWNSHIP 9 RANGE 28 SECTION 12; LOT 9 OF RECORD OF SURVEY RECORDED IN VOLUME 4 OF SURVEYS PAGES 125-129, UNDER AUDITOR’S FILE NUMBER 1932625, RECORDS OF FRANKLIN COUNTY, WASHINGTON. APN 126160357 *NEW BENEFITING PARCEL: "126-160-468"_SEGREGATION INCLUDED 126-160-401 thru 126-160-466, 126-160-467, 126-160-469, 126-160-470 New Benefiting Child Parcel No. 126-160-468 Legal Description: 126-160-468 TOWNSHIP 9 RANGE 28 SECTION 12; SOLSTICE PHASE 2, Lot TR-N Benefitting Parcel No. 115-210-037 Legal Description: TOWNSHIP 9 RANGE 29 SECTION 7; PHASE 1, TRACT I OF THE PLAT OF SOLSTICE AS RECORDED IN VOLUME D OF PLATS AT PAGES 665-667, UNDER AUDITOR’S FILE NUMBER 1949302, RECORDS OF FRANKLIN COUNTY, WASHINGTON. Improvement PRV Proj. # AGRMT2023-048 w Total Estimated Cost of Improvement 149,138.01$ City Adm. Costs -$ Parcel #, Owner Residential Parcel Area (Acre)[AC] Density (Dwelling Units/Acre)Total Benefit Distr. %Total Benefit Distr. $ 115-210-038 BIG SKY DEVELOPERS, LLC (DEVELOPER)46.85 4.7 25.48% $38,005.59 115-210-037 BROADMOOR PROPERTIES, LLC 40.03 10.5 47.90% $71,430.15 115-210-039 BROADMOOR PROPERTIDS 24 7 19.11% $28,504.19 126-160-468 PAHLISCH HOMES AT SOLSTICE, LLC 21.84 3 7.51% $11,198.08 TOTALS 132.72 AC 25.2 100.0% 149,138.01$ Parcel #, Owner Residential Parcel Area (Acre)[AC] Density (Dwelling Units/Acre)Total Benefit Distr. %Total Benefit Distr. $ 115-210-037 [LC22-0004] BROADMOOR PROPERTIES, LLC 40.03 10.5 47.90% $71,430.15 115-210-039 [LC24-0002] BROADMOOR PROPERTIDS 24 7 19.11% $28,504.19 126-160-468 [LC24-0003] PAHLISCH HOMES AT SOLSTICE, LLC 21.84 3 7.51% $11,198.08 TOTAL 85.87 AC 20.50 LATECOMER AMOUNT: $111,132.42 DUNES AREA WATER UTILITY EX H I B I T B DUNES PROJECT - BURNS ROAD PRV Benefitting Parcels Note: