HomeMy WebLinkAboutITEM IV-A1T of ~k
Memorandum
~ ~HIIT
To: Councilmember Lynn Norman, Chair, Planning and Community Development Committee
Councilmember Nancy Backus, Vice- Chair, Planning and Community Development
Committee
Councilmember John Partridge, Member, Planning and Community Development
Committee
From: Bob Elwell, P.E., Sewer Utility Engineer
CC: Mayor Pete Lewis
Date: April 19, 2011
Re: North Tapps Sewer Pump Station Payback Agreement
Background Information
In 2006 and 2007, Prium Development Company LLC (a.k.a. North Tapps Estates LLC}, who
constructed the North Tapps Estates Development, also constructed the North Tapps Sewer
Pump Station to serve their development. In accordance with the City's Comprehensive Sewer
Plan, they designed the station with sufficient capacity to serve a number of other properties
that were not a part of their development. Auburn City Code (ACC)13.40.060, "Payback
agreement -Utilities", allows the developer to enter into an agreement with the City to recover a
proportionate share of the design and construction costs from other benefiting properties.
In this case the developer has submitted a total cost of $826,770 for the station. Staff has reviewed these costs and their supporting documentation, and has concluded that they are
reasonable and inconsistent with the overall cost of similar facilities.
In this case, most of the properties within the benefit area have completed a significant level of
planning or permitting, which has allowed the developer and the City to allocate the cost based
on an estimated number Residential Customer Equivalents (RCE's). The accompanying
calculation sheet and map show how the total number of RCE's was estimated, and how the
corresponding charge per RCE was calculated.
If approved, property owners/developers will be assessed these charges each time a sewer connection permit is issued. The City will then reimburse the developer those payments up to
the maximum amount specified in the agreement.
Attached for your information are a draft payback agreement and supporting calculations.
Payback Charge Calculation
Property Status Basis for RCE Estimated RCE's
Estimate
1 Lakeland East (Final Plat) 101 SFR 101
2 Carter Estates (Preliminary 16 SFR 16
Plat)
Proposed 20,000 5 (20,000 s.f. x 0.2
3 Romart Commercial (Zoning) commercial/retail RCE/1000 sf. based
buildin on similar ro'ects)
4 Lakeland Area 9 (Preliminary ~ SFR 7
Plat)
Lakeland East Apartments (In 116 Dwelling Units ~4 (116 DU x 0.64
5 Construction) Tributary to Pump for multi-family) Station
6 Lakeland Area 8 (Final Plat) 68 SFR 68
~ North Tapps Estates (Final 193 SFR 193
Plat)
Lakeland East Future
g Development Area (Lakeland 147 Units 147
Hills South Development
Plan
Total RCE's 611
Total Pump Station Cost: $826,770 (Includes Design, Construction, and Permitting)
Charge per RCE: $826,770/611 RCE's = $1,353.14
Since the developer who constructed the station owns or sold 193 single family lots,
would be eligible to be reimbursed for the remaining 418 RCE's which is:
418 RCE's X $1353.14/RCE _ $565,612.52
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Return Addre s s
City of Auburn
City Clerk
25 West Main
Auburn, WA 98001
Above this line reserved for recording information.
PAYBACK AGREEMENT
DEVELOPER' S EXTENSION
Reference # (if applicable): N/A (unless previous recording Additional on page:
Grantor : City of Auburn
Grantee : 1) Prium Development Company, LLC
Legal Description / STR: Section 5, Township 20 North, Additional on page:
Range 5 East
Assessor's Tax Parcel ID#: 7002182000
This Agreement made and entered into this day of ,
2011, by and between the City'of Auburn, a municipal corporation of King County,
Washington, ("CITY") and Prium Development Company, LLC, also known as North
Tapes LLC, whose address is 820 A Street, Suite 300, Tacoma, WA 98402,
("DEVELOPER").
WHEREAS, pursuant to Chapter 35.91 RCW et seq.and Section 13.40.060 of the
Auburn City Code, the CITY has by Resolution No. adopted by the City
Council of the CITY on the day of , 201 1, approved the
execution of this Payback Agreement with the DEVELOPER for the facilities described
in this Agreement; and
PAYBACK AGREEMENT
DEVELOPER'S EXTENSION
PAGE 1 OF 7
WHEREAS, the DEVELOPER has offered and the CITY has agreed to accept the bill of
sale found as Exhibit A, sanitary sewer facilities, attached hereto, as part of the utility
systems of the CITY;
NOW THEREFORE, INCONSIDERATION OF THE CONDITIONS AND
COVENANTS HEREIN, THE PARTIES AGREE AS FOLLOWS:
I. DEVELOPER
At the time of construction, the above-described DEVELOPER was the record
OWNER of real property legally described as shown on Exhibit B submitted by
the DEVELOPER and attached hereto. The real property described is also known
as the Plat of North Tapps Estates, Pierce County, Washington.
II. FACILITIES
The facilities which have been constructed by the DEVELOPER are as described
in the attached Exhibit A, incorporated herein by this reference, and processed as
Developer Public Facility Extension FACO4-0012, the originals of which are on
file at the office of the City Engineer. The facilities have been constructed in
accordance with the ordinances and requirements of the CITY governing the
construction specifications for facilities of such type, and have been approved by
the City Engineer.
III. AREA OF FACILITY SERVICE BENEFIT
The properties benefited by the facilities constructed by the DEVELOPER are
shown on Exhibits C and D, incorporated herein by reference. Any owner of real
estate legally described within the benefit boundary as shown on the attached
Exhibits C and D, shall pay as a condition for connecting to the facilities, an
amount as identified in Section V. All property within the benefit boundary shall
be subject to the connection fee as provided in this agreement as a condition of
issuance of the connection permit by the CITY.
IV. TERMS
For a period of 15 years from the date that the City formally accepts the
developer's utility extension, any owner (latecomer) of real estate legally
described in Section III, and which owner has not fully contributed their pro rata
share to the original cost of the above-described facility, shall pay to the CITY the
amounts shown in Exhibit D attached hereto. The charge herein represents the fair
pro rata share of the cost of construction of said facilities payable by properties
PAYBACK AGREEMENT
DEVELOPER'S EXTENSION
PAGE 2 OF 7
benefited. Payment of the latecomers pro rata share is a condition of issuance of
the connection permit by the CITY.
The CITY shall reimburse the DEVELOPER within 60 days of the date the City
receives payment from a person requesting connection to the facilities.
Upon the expiration of the 15-year term any moneys collected by the CITY will
not be reimbursed to the DEVELOPER.
V. AMOUNT OF REIMBURSEMENT
Sanitary sewer collection facilities: The DEVELOPER agrees., that the amounts
which the DEVELOPER is reimbursed from the property owners as specified in
Section III of this Agreement, represents a fair pro rata share reimbursement for
the DEVELOPER'S construction of the facilities described in Section II of this
Agreement. The specific amount of reimbursement will be the number of
residential customer equivalents (BCE's) to be connected to the system under that
specific permit multiplied by $1,353.14. The estimated number of BCE's per
parcel, along with the estimated assessment, is shown in Exhibit D attached
hereto, and the total amount of reimbursement for sanitary sewer facilities shall
not exceed $565,612.52.
Prior to recordation by the DEVELOPER as described in Section X, the CITY,
shall mail to the property owners of the parcels listed in Exhibits C and D, as
reflected in the records of the King County Assessors Office, notification of the
allocation of costs to be levied against the properties which are payable prior to
connection to the systems. The property owner shall have the right to a review of
the costs with the Director of Public Works if a written request is received by the
director within 21 days from the date of mailing of the notice said notice for the
purpose of requesting, an adjustment in the allocation of the charge to the
property.
The review shall be conducted within 14 days of the City's receipt of the written
request. If the Director of Public Works, upon requested review by a notified
property owner(s), does find cause for adjustment in the allocation of the charge
to the benefited property(s), such adjustment will be made and the DEVELOPER
will be notified of the adjusted amount(s) prior to recordation. The Director's
determination on review shall be final, and may only be appealed to the Superior
Court of the County in which the property is located. The resulting adjusted
Exhibits C and D shall govern reimbursement amounts to be received by the
DEVELOPER. If the adjustment results in an increased reimbursement amount to
other parcels, the notification process in this section V shall be repeated.
VI. EFFECT OF AGREEMENT
PAYBACK AGREEMENT
DEVELOPER'S EXTENSION
PAGE 3 OF 7
The provisions of this Agreement shall not be effective as to any owner of real
estate not a party hereto unless this Agreement has been recorded in the office of
the County Auditor of the County in which the real estate is located prior to the
time such owner receives a permit to tap into or connect to said facilities. The
Developer shall provide the City with proof of recording.
If for any reason, the CITY fails to secure a latecomer payment for Owner's fair
pro rata share of the cost of the facilities, before connection to the extension, the
CITY is not liable for payment to the DEVELOPER.
The entire responsibility for notices, recordation and completion of this
Agreement is upon the DEVELOPER, who agrees to do all and to hold the CITY
harmless.
VII. OWNERSHIP OF FACILITY
The DEVELOPER has constructed the facilities described in Section II of this
Agreement, which facilities have been accepted by the CITY as satisfactory.
The facilities have become a part of the municipal system of the CITY. All
maintenance and operation costs of said facility shall be borne by the CITY,
except as noted otherwise in FAC04-0012.
VIII. UNAUTHORIZED CONNECTION
Whenever any connection is made into the facilities described in Exhibit A under
this Agreement which is not authorized by the CITY, the CITY shall have the
absolute authority to remove or cause to be removed such unauthorized
connections and all connecting lines or pipes located in the facility's right-of way.
The CITY shall incur no liability for any damage to any person or property
resulting from removal of the unauthorized connection.
IX. CURRENT ADDRESS & TELEPHONE NUMBER
The DEVELOPER shall keep a current record of his/her address and telephone
number on file with the Director of Public Works of the CITY, and shall within
30 days of any change of said address and/or telephone number, notify the
Director of Public Works of the CITY in writing. If the DEVELOPER fails to do
so, the parties agree that the CITY may authorize connections resulting therefrom
and not incur any liability for the non-collection and/or non-reimbursement of
charges to the DEVELOPER under this Agreement.
X. COVENANT RUNNING WITH THE LAND
This Agreement shall be binding on the DEVELOPER, its successors, heirs and
assigns and shall so be binding on the legal owners of all properties described
within the benefit boundary of the area as shots in the attached Exhibits C and
PAYBACK AGREEMENT
DEVELOPER'S EXTENSION
PAGE 4 OF ~
D, their successors, heirs and assigns. The DEVELOPER agrees to pay all fees
for recording this Agreement with the County Auditor. The DEVELOPER shall
make the actual recording and provide the CITY with confirmation thereof, but
such recordation shall only be made after expiration of review period specified in
Section V.
XI. HOLD HARMLESS
The DEVELOPER will defend, indemnify, and save the CITY and the CITY'S
officials and agents harmless from all claims and costs of defense, arising out of
this agreement, as a result of DEVELOPER actions, misconduct or breach of
contract, including but not limited to attorney's fees, expert witness fees, and the
cost of the services of engineering and other personnel who's time is reasonably
devoted to the preparation and attendance of depositions, hearings, arbitration
proceedings, settlement conferences and trials growing out of the demands and/or
actions of property owners incurred in the performance or completion of this
Agreement.
XI. CONSTITUTIONALITY OR INVALIDITY
If any section, subsection, clause or phrase of this Agreement is for any reason
held to be invalid or unconstitutional, such invalidity or unconstitutionality shall
not affect the validity or constitutionality of the remaining portions of this
Agreement, as it being hereby expressly declared that this Agreement and each
section, subsection, sentence, clause and phrase hereof would have been prepared,
proposed, adopted and approved and ratified irrespective of the fact that any one
or more section, subsection, sentence, clause or phrase be declared invalid or
unconstitutional.
CITY OF AUBURN
Peter B. Lewis, Mayor
ATTEST: APPROVED AS TO FORM:
Danielle Daskam, City Clerk Daniel B. Heid, City Attorney
DEVELOPER:
PAYBACK AGREEMENT
DEVELOPER'S EXTENSION
PAGE 5 OF ~
Signature Signature
TITLE: TITLE:
PAYBACK AGREEMENT
DEVELOPER'S EXTENSION
PAGE 6 OF 7
STATE OF WASHINGTON )
)ss.
County of King )
I certify that I know or have satisfactory evidence that Peter B. Lewis and Danielle E.
Daskam were the persons who appeared before me, and said persons acknowledged that
they signed this instrument, on oath stated that they were authorized to execute the instrument and acknowledged it as the MAYOR and CITY CLERK of the CITY OF
AUBURN to be the free and voluntary act of such parties for the uses and purposes
mentioned in this instrument.
Dated
Notary Public in and for the State of Washington
My appointment expires
STATE OF WASHINGTON)
ss
COUNTY OF KING )
I certify I have know or have satisfactory evidence that
is/are the person(s) who appeared before me, and said person(s) acknowledged that he/she/they signed this instrument on oath stated that
he/she/they was/were authorized to execute the instrument and acknowledge as the
of
a limited liability company, to be the free and voluntary act of such party for the uses
and purposes mentioned in the instrument.
Dated
Notary Public in and for the State of Washington Residing at
My appointment expires
PAYBACK AGREEMENT
DEVELOPER'S EXTENSION
PAGE 7 OF 7
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~''~''r IF'i~h~~Ustk~,half of the ~lortheast quarter of the autheast Quarter and the . { N~ith~dest~ quaff; of the Southeast Quarter of Section Township North,
Rre ~~~~st of the . f llil{~ in Pierce County, washintan,
• f 1 1 ~F '+a ~51y1..'F' f'
Exce~~l'~he l~ar,~~l.~~"feet thereof for County Road set forth in Treasurer's Deed record under r~carding number ~ 327~~~ .
1•! J ~ r 5 r f It ~ ~1 ~ '1 1 ~ ,1 <
s l*xcept ~I~at p~rti~~ L~4Yyed to Pierce County far Lake Tapes Parkwa E85t and I Y
Starrn ~ra~~t~g~.~or~d~ No. ~ by deeds recorded under recording numbers 2aaa~ ~~8+~ ~ 5$ agd''~UO~g~ fi 8~ ~ 5~.
,r ,11111.,, .41 i~' 1'F •1 4 1'' 4
Except thatl~a~i~n pa~yeld to the El Paso Natural Gas Company ~r~ow known
~ ■as the JNa/~~/kyhwe's# ~ipel~e Gorp~r~tian of ~al# Lake City, k~tal~~ under Audi#ar"s F \~4 IaFwVa. •1 `•4~r 4~ 41 F~'4 ,1',1 ~ Ff•
11ri111J~] , t ~ S o • ~ ` 1 4 ~ 4 ` F+' 1 \ y i
~ Together with thus"e''`por~~io''af,aid natural as i eiine as exce #ed above as ~ r 4. g pp P
conveyed to North Tapp,l~st~tes,•,LLCF whose true name is North Tapes LLC, ~ a Vtileshington Limite~.•Li,arblitty: /lvrr~pany} by warranty Deed recorded under
~ Auditor's No. ~gg5~91 ~'U9~Q. '4tiF` .,11~.
1r/..~~1 ' 1 i 1 ! • • .5 r4 11 ` la~.•4i 11 FFI' 4,e
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F 1 ~ The Southwest Quarter of the S~u~hwest Qu~rt~'~.af the Northeast Quarter of
Section , Township ~D Narkh,~~~ange 5 E~stlaf the wFM~, in Pierce County,
~Uas#~ington4 . ' ~ 4rr
1 r F~, ~ , Except the South ~a feet thereof fa~~a~r~~y R~'ad ~s set forth in Treasurer's
~ Deed recorded under recording nurier~~~~7~7~•:'1 r~
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~ Except that portion conve ed to PiercelCa~in~ :for LaE~e Ta s Parkwa Eas# ~ Y ,Y pp y ~ by ~ Id~~e/e~jds JrecorAd/5ed under recording numbers ~r~~5Q~'~8~ ~aa50~ X81 ~ 5~ and
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~/{1 Fr.. 1 1 ! kr 1` Tfi`~ Southwest Quarter of the Southwest Quartet of~he ~~theas# Quarter of the
Northeast Quarter and; ~ 4 1, /
The Southeast Quarter of the Sou#heast Quarter o~{the~~~r~~hw,~st Quarter of the
Northeast Quarter, ail in S/action Township ~a North;llRa~g~ iiw2t~t of the F 4 ~
• • .i~l, i, • ~~V~YY Y/Mn~~' • 1 Ms'h Fn ~tYi 1 F7 ,1 V ~I,` '4. k ~.j~• ! 4 / 4•, 4' 11,1. r~ 1«
Except the South SD feet for County Raad as set forth In ~re,~s~,,re~'s deed
recorded under recording number 1~9g5~~ 1 ~.F 4,~' F,,,,~ . 1' Is` . i ti I.t t ~
j F•' it 4'541 ,F F Except that portion conveyed to Pierce County for Lake Ta~p~P~~kw~y~~as~,
Sum//+'ner-Tapes' Extension to Avenue East under Auditar'~l,fife/ni,~r~ber,~' .
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