HomeMy WebLinkAboutBig Sky Developers Tschirky Water System Extension AgreementWATER SYSTEM EXTENSION AGREEMENT
THIS WATER SYSTEM EXTENSION AGREEMENT is entered into this - day
of October, 2013, by and between Big Sky Developers, LLC, a Washington Limited Liability
Company (hereinafter referred to as Big Sky), Ted Tschirky, an Individual (hereinafter referred
to as Tschirky), and the City of Pasco, Washington, a Washington Municipal Corporation
(hereinafter referred to as "City "), for the purpose of extending water system improvements for
the benefit of the properties to be developed by Big Sky and Tschirky.
WHEREAS, Big Sky has entered into negotiations to purchase and develop certain real
property adjacent to Kohler Road, north of Burns Road for residential use, known as Spencer
Estates, and said real property is situated within the Pasco Urban Growth Area as designated by
Franklin County; and
WHEREAS, Tschirky owns certain real property adjacent to Dent Road, north of Burns
Road, and desires to develop the property for residential use and said real property is situated
within the Pasco Urban Growth Area as designated by Franklin County; and
WHEREAS, both Big Sky and Tschirky desire to have City of Pasco water service
extended to the developed properties for domestic use; and
WHEREAS, Big Sky and Tschirky are committed to constructing a water system trunk
line extension and distribution lines to the proposed developments as described in Exhibit A, and
then dedicate the waterlines and appurtenances to the City; and
WHEREAS, the City of Pasco possesses the capacity to provide water utility services to
citizens and real properties within its municipal boundaries and its urban growth boundaries; and
WHEREAS, the City of Pasco's long range water plan provides for the systematic
extension of water utilities throughout the City's urban growth area; and
WHEREAS, the parties desire, by this cooperation agreement, to jointly participate in
the cost of the waterline construction that provides benefits to all parties and their respective
properties.
NOW, THEREFORE, in consideration of the mutual covenants contained herein, the
parties agree as follows:
1. BIG SKY OBLIGATIONS. Big Sky shall:
A. In cooperation with Tschirky, provide the complete design of the proposed
water system extension, as described in Exhibit A and Exhibit C, by a Professional
Engineer registered to practice Engineering in the State of Washington. The water
system design shall include pipe and all appurtenances from a connection point with the
City's existing system at the intersection of Burns Road and Broadmoor Boulevard (Road
Water System Extension Agreement — Big Sky Developers, LLC & Ted Tschirky Page 1
October 10, 2013
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100), and extending west along Burns Road to the intersection of Kohler Road. The
design shall also include the waterline extensions north along Kohler Road and Dent
Road. The design of the water system extensions shall be in accordance with the latest
City of Pasco requirements and standards including any adopted or referenced state and
federal requirements and standards. The engineering design, construction plans and
specifications shall be submitted to the City for review and/or approval at the 60% and
Final stages of design.
B. From the design, as approved by the City, construct the system extensions
including all valves, hydrants and appurtenances in accordance with applicable City, state
and federal standards and requirements.
C. Be responsible for one - fourth (25 %) the cost of the design of the water
system extension along Burns Road between Broadmoor Boulevard (Road 100) and Dent
Road, one -half (50 %) the cost of design of the water system extension along Burns Road
from Dent Road to Kohler Road, and one -half (50 %) the cost of the design of the water
system extension along Kohler Road, as described in Exhibit B. Big Sky shall assume
Tschirky costs in excess of Tschirky's maximum total limit of $80,000 plus Washington
State Sales Tax.
D. Be responsible for the costs associated with the furnishing of materials
and labor, and construction of the equivalent of an 8 -In. diameter pipeline including
valves, hydrants and associated appurtenances necessary to provide adequate domestic
water service to the proposed development, as follows: along Burns Road between
Broadmoor Boulevard (Road 100) and Dent Road — 50 %; along Burns Road between
Dent Road and Kohler Road — 100 %; and along Kohler Road — 100 %, as described in
Exhibit B. Big Sky shall assume Tschirky costs in excess of Tschirky's maximum total
limit of $80,000 plus Washington State Sales Tax.
E. Shall at its own cost and efforts secure all reviews, approvals and permits
from any and all applicable jurisdictions, and pay all associated fees.
F. Shall execute all deeds, documents, permits, annexation agreements and
checklists necessary for the permitting and conveyance of property and construction of
the system extension described above and the performance of this Agreement.
G. Shall, prior to City acceptance of the waterline improvements
contemplated herein, provide the City certificated surface water rights within the McNary
Pool equal to one -third acre -foot per platted lot contained within the respective
development or a payment to the city in an amount equal to $700 for each platted lot
contained within the respective development, unless mutually agreed otherwise in writing
prior to City acceptance of the improvements.
H. Enter into a Latecomer's Agreement with the City, to provide for future
reimbursement of incurred costs from owners /developers of property who desire to
connect but did not contribute to the costs of the water system extension improvements.
Water System Extension Agreement — Big Sky Developers, LLC & Ted Tschirky Page 2
October 10, 2013
2. TSCHIRKY OBLIGATIONS. Tschirky shall
A. In cooperation with Big Sky, provide the complete design of the proposed
water system extension by a Professional Engineer registered to practice Engineering in
the State of Washington. The water system design shall include pipe and all
appurtenances from a connection point with the City's existing system at the intersection
of Burns Road and Broadmoor Boulevard (Road 100), and extending west along Burns
Road to the intersection of Kohler Road. The design shall also include the waterline
extensions north along Kohler Road and Dent Road. The design of the water system
extensions shall be in accordance with the latest City of Pasco requirements and
standards including any adopted or referenced state and federal requirements and
standards. The engineering design, construction plans and specifications shall be
submitted to the City for review and/or approval at the 60% and Final stages of design.
B. Be responsible for one - fourth (25 %) the cost of the design of the water
system extension along Burns Road between Broadmoor Boulevard (Road 100) and Dent
Road, and one -half (50 %) the cost of the design of the water system extension along Dent
Road, except as limited by a total maximum expenditure as described in Exhibit B.
C. Be responsible for the costs associated with the furnishing of materials
and labor, and construction of the equivalent of an 8 -In. diameter pipeline including
valves, hydrants and associated appurtenances necessary to provide adequate domestic
water service to the proposed development, as follows: along Burns Road between
Broadmoor Boulevard (Road 100) and Dent Road — 50 %; and along Dent Road — 100 %,
up to the total maximum limit of $80,000 plus Washington State Sales Tax as described
in Exhibit B.
D. Shall at its own cost and efforts secure all reviews, approvals and permits
from any and all applicable jurisdictions, and pay all associated fees.
E. Shall execute all deeds, documents, permits, annexation agreements and
checklists necessary for the permitting and conveyance of property and construction of
the system extension described above and the performance of this Agreement.
F. Enter into a Latecomer's Agreement with the City, to provide for future
reimbursement of incurred costs from owners /developers of property who desire to
connect but did not contribute to the costs of the water system extension improvements.
G. Shall, prior to City acceptance of the waterline improvements
contemplated herein, provide the City certificated surface water rights within the McNary
Pool equal to one -third acre -foot per platted lot contained within the respective
development or a payment to the city in an amount equal to $700 for each platted lot
contained within the respective development, unless mutually agreed otherwise in writing
prior to City acceptance of the improvements.
Water System Extension Agreement — Big Sky Developers, LLC & Ted Tschirky Page 3
October 10, 2013
3. CITY OBLIGATIONS. City shall:
A. Process in its usual course, Big Sky's and Tschirky's applications for plan
review and permits associated with the water system extension project as described above
and in Exhibit A, in a timely manner.
B. Provide project design criteria, and determine the size of pipe, spacing of
isolation valves and hydrants and other appurtenances required to maintain the integrity
of the City's water system.
C. Provide timely reviews of the engineering design, construction plans and
specifications at the 60% and Final submittals.
D. Provide inspection services during the course of construction consistent
with the level of effort utilized on other capital and development projects within the City,
or as may be required to ensure the required quality of the completed work.
E. Be responsible for one -half (50 %) of the costs of design of the water
system extension. The City's share of the design and construction engineering and
inspection costs shall not exceed $20,100.
F. Be responsible for the incremental increase in cost between an 8 -In. pipe
system and the actual pipe size required, as estimated in the construction cost estimates
prepared by Einar Frimodt, IV and provided by Big Sky in March 2013, and as
summarized in Exhibit B. The City's share of the construction costs shall not exceed
$269,688, including Washington State Sales Tax.
G. Be responsible for a share of the total costs associated with this
Agreement, including design engineering, construction, inspection, and incidentals as
described hereinbefore, not to exceed $289,788, except as may be negotiated and agreed
upon by both parties, in writing, by amendment to the Agreement.
H. Upon satisfactory completion of the improvements described above,
accept the dedication of the water system improvements as described in Exhibit A and
Exhibit C, and by Council resolution accept ownership thereof, and maintenance and
operation of the improvements thereafter.
I. Enter into Latecomer's Agreements with Big Sky and Tschirky, to provide
for future reimbursement of incurred costs from owners /developers of property who
desire to connect but did not contribute to the costs of the water system extension
improvements.
J. Construct as a separate capital project, a 16 -inch diameter water trunk
main from the Broadmoor Storage Tank and Pump Station to connect with the system
extension being constructed under this agreement.
Water System Extension Agreement — Big Sky Developers, LLC & Ted Tschirky Page 4
October 10, 2013
4. TERM. This Agreement shall be effective commencing on the 15r day of
October, 2013, and all improvements, conveyances and obligations of the parties shall be
complete on or before July 1, 2014. The Agreement shall terminate on August 1, 2014, or with
the completion and acceptance of the water system extension improvements, whichever is
sooner.
5. AUTHORITY TO APPROVE AGREEMENT. The parties represent and
warrant that all steps necessary for the approval of this Agreement have been completed by:
A. Big Sky Developers, LLC by its Managing Member.
B. Ted Tschirky, Individual Property Owner
C. City of Pasco by the Pasco City Council.
The officers signing below are authorized to do so and that the execution of this Water
System Extension Agreement is valid and binding for all purposes.
6. DISPUTE RESOLUTION. 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, 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.
7. GENERAL PROVISIONS.
A. This Water System Extension Agreement constitutes the entire agreement
between the parties, and no prior oral or written agreement shall be valid, and any
modifications of this Agreement must be in writing signed by all parties.
B. This Water System Extension Agreement shall be binding on the parties,
and their heirs, successors and assigns.
C. For the purpose of this Agreement, time is of the essence.
8. MUTUAL COOPERATON AND FURTHER AGREEMENTS. The parties
agree to cooperate in good faith, with regard to each and every aspect required for the
completion of the construction of the roadway which is the object of this Agreement, and the
transfer of property, and to further sign all documents, deeds and permits reasonably necessary to
accomplish the purposes of this Agreement.
Water System Extension Agreement — Big Sky Developers, LLC & Ted Tschirky Page 5
October 10, 2013
DATED this day of OG& &r , 2013.
CITY OF P
Gary
City
BIG KY ,, LL/
1
Dave Greeno
Managing Member
T
TED � S�$KY.
Ted Tschirky
Property Owner
Water System Extension Agreement — Big Sky Developers, LLC & Ted Tschirky Page 6
October 10, 2013
EXHIBIT A
CITY OF PASCO WATER SYSTEM EXTENSION IN
NORTHWEST CITY URBAN GROWTH AREA
DESCRIPTION OF PROJECT
Introduction: For the past several months, Mr. Dave Greeno of Big Sky Developers, LLC and
Mr. Ted Tschirky, a private landowner, have been discussing development plans, with the City,
for parcels of land on Kohler Road and Dent Road, north of Burns Road, west of the City. Mr.
Greeno and W. Tschirky propose to develop the land for large lot single - family residential
purposes. Both have approached the City of Pasco and requested that the City provide domestic
water service for the developments. At a meeting on February 22, 2013, W. Greeno presented a
cost estimate for the waterline extension along with a proposal of cost sharing percentages.
Since that time, the City, Mr. Green and Mr. Tschirky have been in discussions with regard to
the feasibility of providing City water system extension improvements to the sites and the
potential cost sharing options. Both developments are located within the City of Pasco Urban
Growth Area, although outside the Pasco City Limits.
Project Description: The proposed project will extend City of Pasco domestic water service
from the Broadmoor Tank and Pump Station (located on Broadmoor Boulevard, near
Nottingham Drive) north to Bums Road, then west along Burns Road to the intersection of
Kohler Road. In addition, service will be extended north approximately 1,000 feet along both
Kohler Road and Dent Road.
For the purposes of planning and estimating the project elements and costs, the project has been
divided into five (5) segments, as follows:
• Segment A — 16 -inch diameter water system trunk line extending approximately 5,280
LF along Burns Road from Broadmoor Boulevard to Dent Road;
• Segment B — 12 -inch diameter watermain along Dent Road for a distance of
approximately 1,000 LF north of Burns Road;
• Segment C — 16 -inch diameter water system trunk line extending approximately 2,640 LF
along Bums Road between Dent Road and Kohler Road;
• Segment D — 12 -inch diameter watermain along Kohler Road extending north of Burns
Road approximately 960 LF;
•
Segment E — Connection to the Broadmoor Tank and Pump Station and extension of
approximately 660 LF of 16 -inch diameter water system trunk line along Broadmoor
Boulevard to Burns Road.
The water system extension will include necessary inline isolation valves, fittings, fire hydrants
and other appurtenances as determined by the City of Pasco. Design and construction will be in
accordance with all current applicable City of Pasco standards and requirements and all
applicable state and federal standards and requirements as may be adopted or referenced by the
Exhibit A — Big Sky Developers, LLC & Ted Tschirky Page 1
October 4, 2013
EXHIBIT A
City. The water system trunk line alignment will be located as determined by the City and in
coordination with Franklin County. Franklin County currently owns the right -of -way along
Burns Road, Kohler Road and Dent Road.
General Cost Sharing Proposal: All parties have negotiated a cost sharing arrangement that
generally provides for the following:
Design — The City of Pasco will share 50% of the cost of design, topographical survey,
preparation of construction documents, construction survey, and City construction
inspection efforts for the work associated with the water system extensions as defined in
Segments A through D, above. Big Sky Developers, LLC and Ted Tschirky will be
responsible for the other 50% of the costs in proportion to the estimated footage of pipe
necessary to serve their respective developments.
Construction — Big Sky Developers, LLC and Ted Tschirky will be responsible for the
entire cost of the equivalent of an 8 -inch pipe system for Segments A through D, as
defined above. The City of Pasco will be responsible for the cost differential to provide
the large pipe system.
Segment E — The City of Pasco will construct this segment as a separate capital project
because of its broader benefit to the community, and be responsible for the entire cost of
this work.
• Development specific costs — Each developer will be responsible for the costs associated
with their individual developments. The City shall bear no responsibility for these costs.
Exhibit A — Big Sky Developers, LLC & Ted Tschirky Page 2
October 4, 2013
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