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HomeMy WebLinkAbout4696 Resolution - Broetje Orchards Helena 1 Water Developer Reimbursement Agr Resolution – Helena 1 Water DRA (Latecomer) - 1 RESOLUTION NO. 4696 A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING A UTILITY DEVELOPER REIMBURSEMENT (LATECOMER) AGREEMENT WITH BROETJE ORCHARDS, LLC, FOR THE CONSTRUCTION OF WATER UTILITY IMPROVEMENTS FOR HELENA 1, A RESIDENTIAL SUBDIVISION. WHEREAS, RCW 35.91 and Section 14.25 of the Pasco Municipal Code (PMC) provides a statutory framework for developers to enter developer reimbursement agreements when the developer, as a condition of development, pays the costs of necessary infrastructure improvements; and WHEREAS, Broetje Orchards, LLC has submitted a complete and accurate application for a street system developer reimbursement agreement; and WHEREAS, the City shall also provide notice of its preliminary assessment reimbursement area (those to repay the latecomer 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 October 29, 2024, and did not receive in writing a request for a hearing before council; and WHEREAS, utility improvements include infrastructure projects related to City water, sewer, and storm sewer which is required to be constructed as a prerequisite of continued development; and WHEREAS, utility developer reimbursement agreements shall meet the development criteria as detailed in the PMC Subsection 14.25.030(3)(b); and WHEREAS, Broetje Orchards, 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. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Manager is authorized to execute the developer reimbursement agreement for utility system improvements, 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 to the developer reimbursement agreement as needed. Resolution – Helena 1 Water DRA (Latecomer) - 2 Be It Further Resolved, that this resolution shall take effect immediately. PASSED by the City Council of the City of Pasco, Washington, on this 20th day of January, 2026. Charles Grimm Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Krystle Shanks, CMC Ogden Murphy Wallace, PLLC Deputy City Clerk City Attorney Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 1 of 9 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.: Parcel# 113-881-024 AGRMT2024-013w Legal Description: WASHINGTON ADD ALL BLK 5 TOGETHER WITH VACATED STREETS AND ALLEYS PER ORD 4646 CITY OF PASCO DEVELOPER REIMBURSEMENT AGREEMENT THIS AGREEMENT, made and entered into this day of___________, 2026, by and between the City of Pasco, a Municipal Corporation of the State of Washington, hereinafter referred to as “City”, and Broetje Orchards 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: The installation of 761 linear feet of 8” ductile iron pipe including all appurtenances commencing at a tee connection in the intersection of Helena St. and Sprague Ave. thence running south through Sprague Ave. approximately 419 feet thence heading to the southwest approximately 40 feet thence heading west for approximately 302 feet through Estrella Dr. connecting to an 8” tee in the intersection of Estrella Dr. and Eureka Ave. 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. Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 2 of 9 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 C. 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 and project acceptance by council 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 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 the 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 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 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 the 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 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 3 of 9 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 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 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. 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: Broetje Orchards LLC 3713 E A Street Pasco, WA. 99301 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 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 4 of 9 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 or street 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 B 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. 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. Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 5 of 9 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first above written. CITY OF PASCO, WASHINGTON Herald L. Stewart II – City Manager DEVELOPER – BROETJE ORCHARDS LLC Ralph Broetje, Co-Founder ATTEST: Debra C. Barham, City Clerk APPROVED AS TO FORM: City Attorney Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 6 of 9 STATE OF WASHINGTON ) : ss COUNTY OF FRANKLIN ) On this day personally appeared before me Harold L. Stewart II, 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 the uses and purposes therein mentioned. GIVEN under my hand and official seal this ___ day of ______________, 2026. ________________________________________ (Seal) 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 Ralph Broetje for Broetje Orchards 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 _____________, 2026. ________________________________________ (Seal) Notary Public in and for the State of Washington Print Name: _____________________________ Residing at ______________________________ My Commission Expires: ___________________ Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 7 of 9 EXHIBIT A Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 8 of 9 PE R M I T # P a r c e l Fr o n t a g e [ F T ] Al l o c a t i o n o f C o s t [% ] = [ ( I n d i v i d u a l Pa r c e l F r o n t a g e [F T ] ) / ( T o t a l P a r c e l Fr o n t a g e [ F T ] ) ] Al l o c a t i o n o f C o s t [ $ ] = ( A l l o c a t i o n o f C o s t [% ] ) * ( T o t a l E s t i m a t e ) 11 3 - 8 8 1 - 0 2 4 BR O E T J E O R C H A R D S , L L C ( D E V E L O P E R ) N/ A 10 9 . 8 1 9. 8 4 % 7, 1 5 8 . 5 6 $ 11 3 - 8 8 2 - 0 4 2 JU B I L E E F O U N D A T I O N ( D E V E L O P E R ) N/ A 29 7 . 9 0 26 . 6 9 % 19 , 4 2 0 . 2 3 $ 11 3 - 8 8 2 - 0 9 6 JO S E A L M A R A Z G O N Z A L E Z LC 2 4 - 0 0 5 0 21 9 . 5 6 19 . 6 7 % 14 , 3 1 3 . 2 1 $ 11 3 - 8 8 2 - 1 2 1 EL P I D I O & M A R I A G A R C I A LC 2 4 - 0 0 5 1 35 4 . 7 5 31 . 7 8 % 23 , 1 2 6 . 3 1 $ 11 3 - 8 8 2 - 1 1 2 EU S T O L I A G O N Z A L E Z LC 2 4 - 0 0 5 2 13 4 . 1 1 12 . 0 2 % 8, 7 4 2 . 6 9 $ TO T A L S : 11 1 6 . 1 3 10 0 . 0 0 % 46 , 1 8 2 . 2 1 $ 46 , 1 8 2 . 2 1 $ 76 1 L F O F 8 " W A T E R M A I N BR O E T J E - H E L E N A # 1 EXHIBIT B AG R E E M E N T N O . AG R M T 2 0 2 4 - 0 1 3 Be n e f i t A r e a AS S E S S M E N T A M O U N T : Pa r c e l # , O w n e r Im p r o v e m e n t To t a l F r o n t a g e De v e l o p e r ' s T o t a l C o s t o f I m p r o v e m e n t 11 1 6 . 1 2 F r o n t a g e F e e t $7 2 , 7 6 1 . 0 0 DE V E L O P E R A R E A AS S E S S M E N T A R E A Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 9 of 9 EXHIBIT C BENEFITTING AREA Developer Area 113-881-024 WASHINGTON ADD ALL BLK 5 TOGETHER WITH VACATED STREETS AND ALLEYS PER ORD 4646 113-882-042 ALL OF BLOCKS 11 & 12 WASHINGTON ADDITION TOGETHER WITH VACATED STREETS AND ALLEYS ADJ PER ORD 4646-1973182 Assessment Area 113-882-096 WASHINGTON ADD LOTS 25 TO 32, BLK 6 TOGETHER WITH VACATED STREETS AND ALLEYS ORD-4648 AFN1973865 113-882-121 WASHINGTON LOTS 17 TO 24, BLK 6 TOGETHER WITH VACATED STREETS AND ALLEYS ORD-4648 AFN1973865 113-882-112 WASHINGTON LOTS 9 THRU 16, BLK 6 TOGETHER WITH VACATED STREETS AND ALLEYS ORD-4648 AFN1973865