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HomeMy WebLinkAboutBig Sky Developers Archer Estates Water System Extension AgreementORIGINAL WATER SYSTEM EXTENSION AGREEMENT THIS WATER SYSTEM EXTENSION AGREEMENT is entered into this e2/ _-0- day of April, 2015, by and between Big Sky Developers, LLC, a Washington Limited Liability Company (hereinafter referred to as Big Sky) 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. WHEREAS, Big Sky has entered into negotiations to purchase and develop certain real property adjacent to Dent Road, north of Burns Road for residential use, known as Archer Estates, Phase 1, and said real property is situated within the Pasco Urban Growth Area as designated by Franklin County; and WHEREAS, Big Sky desires to have City of Pasco water service extended to the developed properties for domestic use; and WHEREAS, Big Sky is committed to constructing a water system trunk line extension and distribution lines to the proposed developments as described in Exhibit A, and then delicate 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. Provide the complete design of the proposed water system extension, as described in Exhibit A 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 Bums Road and Dent Road and extending north along Dent Road to the northern most boundary of Archer Estates, Phase 1. 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. Water System Extension Agreement —Big Sky Developers. LLC Page 1 of 5 Dent Road April 21 12015 C. Be responsible for one-half (50%) of the cost of the design of the water system extension along Dent Road to the northern most boundary of Archer Estates, Phase 1, 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 Dent Road from Bums Road to the northern most boundary of Archer Estates, Phase 1 (50%), as described in Exhibit A, 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. 2. CITY OBLIGATIONS. City shall: A. Process in its usual course, Big Sky 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 $3,881.25. 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 E -Mac Corporation and provided by Big Sky in November 2014, and as summarized in Exhibit B. The Water System Extension Agreement —Big Sky Developers, LLC Page 2 of 5 Dent Road April _1 2015 City's share of the construction costs shall not exceed $44,253.45, 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 $48,134.70, 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 by Council resolution accept ownership thereof, and maintenance and operation of the improvements thereafter. I. Enter into Latecomer's Agreements with Big Sky 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. 4. TERM. This Agreement shall be effective commencing on the 2rSt day of April, 2015, and all improvements, conveyances and obligations of the parties shall be complete on or before July 1, 2015. The Agreement shall terminate on August 1, 2015, 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. 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 Water System Extension Agreement —Big Sky Developers. LLC Page 3 of 5 Dent Road April 21 ,20]5 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. DATED this 2f day of April, 2015. CITY OF PASCO -010 . � M—A-O." BIG S ELOPERS, LLC Dave Greene Managing Member 7 ST: APPROVED AS TO FORM: Ov eb ' Cl ,City .lerk eland err, City Attorney Water System Extension Agreement —Big Sky Developers. LLC Page 4 of 5 Dent Road April Z1 .2015 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 Greene, of Big Sky Developers, LLC, a private landowner, hae been discussing development plans with the City for parcels of land on Dent Road, north of Burns Road, west of the City. Mr. Greeno proposes to develop the land for large lot single-family residential purposes. He has approached the City of Pasco and requested that the City provide domestic water service for the developments. At a meeting on August 13, 2014, Mr. Greeno presented a cost estimate for the waterline extension along with a proposal of cost sharing percentages. Since that time, the City and Mr. Greeno 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. The development is 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 existing 12" waterline stub at the intersection of Bums and Dent Road, north to the northern most boundary of Archer Estates, Phase 1. 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 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 Bums 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 the Description of the Project above. Big Sky Developers, LLC 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 will be responsible for the entire cost of the equivalent of an 8 -inch pipe system as defined above. The City of Pasco will be responsible for the cost differential to provide the large pipe system. • 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.