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HomeMy WebLinkAbout4216 Resolution - Water Developer Reimbursement Agreement with Mickelson 1 RESOLUTION NO. 4216 A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING A UTILITY DEVELOPER REIMBURSEMENT (LATECOMER) AGREEMENT WITH MICKELSON LANDHOLDINGS, LLC FOR THE CONSTRUCTION OF UTILITY IMPROVEMENTS FOR EAST SUPERIOR STREET WATER. WHEREAS, Section 14.25 of the Pasco Municipal Code (PMC) provides a statutory framework for developers to enter latecomer reimbursement agreements when the developer, as a condition of development,pays the costs of necessary infrastructure improvements; and WHEREAS, section 14.25.030(4) requires the Public Works Director, within 28 days of receipt of an latecomer's 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 latecomer agreement to the public; 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 Council has determined that the above procedural requirements of 14.25 have been met; 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 latecomer agreements requested by developers shall be entered into by the City of Pasco pursuant to PMC 14.25.030(3) when the developer has submitted a complete application for a utility latecomer agreement; and WHEREAS, utility latecomer agreements shall meet the development criteria as detailed in PMC 14.25.030(3)(b); and WHEREAS,Mickelson Landholdings,LLC,agrees to payment of project costs,including legal and administrative costs, as set forth in the Latecomer's Agreement, attached as Exhibit A; and Resolution—Development Reimbursement Agreement- 1 WHEREAS, Mickelson Landholdings, LLC, has submitted a complete and accurate application for a utility latecomer agreement and the agreement as proposed will meet the defined criteria in 14.25.030(3)(b). NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO,WASHINGTON: Section 1.That the City Manager is authorized to execute the utility latecomer agreement, a copy of which is attached hereto and incorporated herein by reference as Exhibit A. Section 2.That this Resolution shall take effect immediately. Section 3. That the City Manager be authorized to make minor substantive changes to the utility latecomer agreement as needed. Adopted by the City Council of the City of Pasco,Washington this 1 St day of August,2022. } Blanche arajas Mayor ATTEST: APPROVED AS TO FORM: ��-- , � ��� � C-._ - _- : Debra Barham, CMC Kerr F -�so� Law, PLLC City Clerk City Attorney Resolution—Development Reimbursement Agreement-2 EXHIBITA 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 Tax Parcel No. 113474036 Abbreviated Legal Description: FREYS ADD LOTS 3 &4 BLK 40 TOG W/W2 VAC ALLEY ADJ CITY OF PASCO DEVELOPER REIMBURSEMENT AGREEMENT THIS AGREEMENT, made and entered into this day of , 2022, by and between the City of Pasco, a Municipal Corporation of the State of Washington, hereinafter referred to as "City", and Mickelson Landholdings, LLC, their successors, and assigns, hereinafter referred to as "Developer"; and WHEREAS, RCW Chapter 3591 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 and City have constructed the following described extension of City's facilities: A 10-Inch ductile iron water main in the proposed Right-of-Way of the south portion of E. Superior Street along Parcel numbers 113473091 and 113474045. This water main begins at the shared property line of parcel 113473085 and 113473091 and runs 336 linear feet to the east. A. 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. Developer Reimbursement Agreement Mickelson 1 Water- 1 2. 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 A, attached hereto and incorporated herein by this reference: Franklin County Parcel Numbers: 113473028, 113473091, 113474045. 3. As the facilities were certified as acceptable to City by the Public Works Director, or his designee Developer conveyed such facilities to City for the consideration and benefits of City. City will thereafter own and operate said facilities as part of City water system subject to all of the laws and regulations, fees and assessments of City. 4. City and Developer agree that Developer's contributions to the total project costs is valued at $48,485.00, which includes costs for the design, construction engineering, inspection, construction, administrative, legal and other costs attributable to the project. 5. City and Developer agree that the City's contributions to the total project costs is or will be valued at $XX, which includes costs for the design, construction engineering, inspection, construction, administrative, legal and other costs attributable to the project. 6. City and Developer agree that the Total Assessment that is attributed to the Assessment Area is $36,879.99. This is the total of all costs related to the project ($48,485.00), less the amount of those costs that are attributed to properties owned or controlled by Developer as of the date of execution of the Water System Extension Agreement regarding the same facility as described in Section 1 herein. Said costs are otherwise known as Developer's Benefit, which for this project equal $11,605.01. 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$36,879.99. This amount is equal to Developer's total contribution to the total project costs ($48,485.00), less Developer's Benefit($11,605.01). 7. The facilities subject to this Agreement are included within the City's comprehensive utility plan, and no additional comprehensive plan approval for the utility system improvements was required. 8. Execution of this Agreement is conditioned upon: Developer Reimbursement Agreement Mickelson 1 Water-2 A. Inspection and approval of the utility system improvements by the City; B. Conveyance by Developer and acceptance by the City of the utility system improvements described in Section 1 of this Agreement; C. Full compliance with the Developer's obligations under this Agreement and with the City's rules and regulations with respect to the project described in Section 1; D. Payment by Developer to the City of the City's fee for processing of this application, which includes legal, administrative, and recording costs, in the amount of$X, which includes the legal fees associated with this Agreement in the amount of$X, $X for the mailing and recording costs for this Agreement, and 100% (the percentage share of Total Assessment collectible by Developer) of the costs attributed to mailing and recording of assessment Notices to parcels within the Assessment Area (100% of $X in Notice and accompanying documents mailing and recording fees = $X); F. City verification and approval of all contracts and costs related to the utility system improvements; and G. 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. 9. For a period of twenty (20) years from the effective date of this Agreement, 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 $36,879.99, as stated in Paragraph 6. The individual Assessment associated with each parcel of benefited property described in this Agreement, shall be charged to the property owner as follows: Parcel number 113473028: $12,637.49 Parcel number 113473091: $12,637.49 Parcel number 113474045: $11,605.01 10. No person, fiz-m or corporation shall be granted a permit or be authorized by City to tap into or use the referenced facilities during the period of time prescribed in Paragraph 9 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. Developer Reimbursement Agreement Mickelson 1 Water-3 11. 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 Ageement. Any amounts so collected during the time period in Paragraph 9 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. 12. 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. 13. 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: Kim Mickelson Mickelson Landholding, LLC 11711 Pelican Rd Pasco, WA 99301 E-Mail: kim.ccp@gmail.com 14. 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. 15. If prior to the expiration of one (1) year after the date of conveyance of the facilities by Developer to City, 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 Ciry, 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. Developer Reimbursement Agreement Mickelson 1 Water-4 16. Developer agrees that once the City has collected all amounts under this Agreement, up to a maximum of $36,879.99 as specified in Paragraph 6 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. 17. Developer hereunder is an independent contractor and is not an agent or employee of City. 18. In the event of a dispute between the parties regarding the interpretation, breach ar 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: Dave Zabell, City Manager Kim Mickelson, Owner Mickelson Landholding LLC ATTEST: Debra Barham, CMC City Clerk APPROVED AS TO FORM: Kerr Ferguson Law, PLLC City Attorney Developer Reimbursement Agreement Mickelson 1 Water-5 STATE OF WASHINGTON ) : ss COUNTY OF FRANKLIN ) On this day personally appeared before me DAVE ZABELL, 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 , 20_. 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 KIM MICKELSON, Owner of Mickelson Landholding, LLC, a Washington Limited Liability Company, 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 , 20_. NOTARY PUBLIC in and for the State of Washington Print Name: Residing at: My Commission Expires: Developer Reimbursement Agreement Mickelson 1 Water-6