Chapter 6.10
DEVELOPER EXTENSIONS

Sections:

6.10.010    Developer extension agreement.

6.10.020    Conditions.

6.10.030    Reimbursement agreement.

6.10.040    Cash maintenance bond form.

Appendix A    Reimbursement agreement.

6.10.010 Developer extension agreement.

The revised water developer extension agreement is hereby approved effective September 1, 1999. [Res. 1999-10-16; Res. 1991-3-1; Res. 1990-8-6.]

6.10.020 Conditions.

Connection of an extension to the district’s water system constructed pursuant to the execution of a developer extension agreement is conditioned upon:

(1) Construction of such extension according to plans and specifications approved by the district;

(2) Inspection and approval of such extension by the district;

(3) Transfer to the district of such extension without cost to the district upon acceptance by the district of such extension;

(4) Payment of all required connection charges to the district;

(5) Full compliance with the owner’s obligations under the developer extension agreement and with the district’s rules and regulations;

(6) Provision of sufficient security to the district to ensure completion of the extension and other performance under the developer extension agreement;

(7) Payment by the owner to the district of all of the district’s costs associated with such extension including, but not limited to, the district’s engineering, legal, and administrative costs; and

(8) Verification and approval of all contracts and costs related to such extension. [Res. 1990-8-6.]

6.10.030 Reimbursement agreement.*

The board of commissioners of Cross Valley Water District of Snohomish County, Washington, hereby adopts the form of reimbursement agreements for water and sewer facilities installed by a developer set out in Appendix A to this chapter. [Res. 2008-10-3; Res. 1990-5-5.]

*    Code reviser’s note: The reimbursement agreement for water facilities is set out in this chapter. The agreement for sewer facilities is set out in Chapter 7.05 CVWDC.

6.10.040 Cash maintenance bond form.

The district hereby adopts and approves the form of cash maintenance and pledge agreement attached to the resolution codified in this section as Exhibit A and incorporated herein by this reference. [Res. 1991-3-1.]

Appendix A Reimbursement agreement.

After recording, return to:

Cross Valley Water District

8802 180th Street SE

Snohomish, WA 98296-4804

GRANTOR: CROSS VALLEY WATER DISTRICT, a municipal corporation

GRANTEES: ______________________

ABBREVIATED LEGAL DESCRIPTION: _________________________________

ADDITIONAL LEGAL DESCRIPTION PAGE __

TAX PARCEL ID NO: ________________

_________________________________

_________________________________

REIMBURSEMENT AGREEMENT FOR WATER FACILITIES INSTALLED BY DEVELOPER

THIS AGREEMENT between CROSS VALLEY WATER DISTRICT, a municipal corporation, hereinafter referred to as “District,” and ___________________, hereinafter referred to as “Developer,” is on the following terms and conditions:

1. Developer, in the improvement of ____________________________ (hereinafter “project”), has installed water facilities in accordance with the standards and specifications of the District and has tendered to the District a bill of sale to said water facilities and has requested the District to accept the same for maintenance and operation. The total project cost of said water facilities has been certified by the Developer’s engineers as being the sum of $________.

2. The Developer has incurred expenses to install said water facilities to provide service to the project, a portion of which may, in the future, provide service to areas outside the project and for which the Developer may receive reimbursement pursuant to this Agreement. The reimbursement shall be a pro rata share of Developer’s costs of construction and reimbursement of contract administration costs including, but not limited to, design, engineering, installation and restoration for the portion of the water facilities which may provide service to areas outside the project. A description of the real property located outside the project, which is benefited by and will be serviced by the water facilities installed by Developer and the pro rata share of the costs of construction of said water facilities for each parcel or lot comprising said real property are set forth on Exhibit A attached hereto and incorporated herein by this reference.

3. Pursuant to RCW Chapter 57.22, the District agrees to use its best efforts to reimburse Developer a sum up to $________, which reimbursement however, shall come solely from the owners of real property located outside the project and described on Exhibit A who did not contribute to the cost of said facilities and who subsequently connect to or use the same. The District agrees to use its best efforts to charge said owners a fair pro rata share of the costs of construction of said water facilities constructed by the Developer and said sums collected pursuant to this Agreement will be paid to the Developer, if received by District within ten (10) years from the date of acceptance, or until the total payments equal the sum of $________, whichever occurs sooner, subject to the provisions of Paragraph 10 below. Thereafter, the District shall have no further obligation to pay Developer any amounts received by the District from the owners of real property who subsequently connect to or use the facilities constructed by Developer. As a condition of receiving such reimbursement funds, Developer shall execute a receipt for such reimbursement amount so paid, upon a receipt form provided by District. Such form shall include the name of the owner of the property connecting to the water facilities installed by Developer and the legal description of the property.

4. The District will use its best efforts to collect and distribute the funds pursuant to the process set forth in this Agreement. However, the District, its officials, employees, or agents shall not be held liable or responsible for failure to implement any of the collection provisions of this agreement, unless such failure was willful or intentional. The District is acting in the capacity of a collection agent and is not obligated by this Agreement to make any payments except those amounts actually collected pursuant to this Agreement. This Agreement does not constitute a guarantee on the part of the District that any reimbursement will be collected or paid during the term of this Agreement.

5. The District retains the power to charge property owners seeking to connect to the District’s water system, as a condition to granting the right to so connect, in addition to the cost of such connection and the cost to be reimbursed to Developer, such reasonable connection charge as the Board of Commissioners shall determine to be proper in order that such property owners shall bear their equitable share of the cost of such system pursuant to Resolution No. 2008-2-12, as hereafter amended or replaced.

6. The District proposes that a fair, pro rata share of the costs of construction of the water facilities charged to users who tap onto said facilities is as set forth on Exhibit A, but the District reserves the right to adjust said amounts in the event the water facilities as constructed do not provide first class service or an appropriate benefit.

7. District and Developer understand and acknowledge that the owners of the real property located outside the project and described on Exhibit A will be provided notice by the District of such reimbursement charge and the amount thereof. Such property owner(s) may request a hearing on such reimbursement charge before the Commissioners of the District. If requested by an owner of property described on Exhibit A, the Commissioners shall conduct such hearing. The parties understand and acknowledge that such hearing may result in denial of reimbursement charges, changes to the reimbursement area and the reimbursement charges placed upon the owners of real property located outside the project, which is benefited by and will be serviced by the water facilities installed by Developer, who did not contribute to the cost of said facilities. Should such hearing occur, Exhibit A may be adjusted to reflect the determination of the Commissioners after consideration of evidence provided at such hearing. Such adjustment shall be set forth on Exhibit A, and the parties agree the adjusted Exhibit A shall supersede the prior Agreement. This Agreement shall be rerecorded with the adjusted Exhibit A.

8. Developer agrees to pay District an administrative fee for District’s administrative, engineering, overhead, recording fee, attorney’s fees and costs in the amount of ten percent (10%) of each payment made to Developer pursuant to this Agreement. Said amount shall be paid by the District deducting said amount from each payment made to Developer pursuant to this Agreement.

9. Any notice to be given, document to be delivered, or payment to be made by either party to the other herein, shall be delivered in person or mailed by certified mail and addressed to District and/or Developer at the following addresses:

District:

Manager of Cross Valley Water District

8802 180th Street SE

Snohomish, WA 98296-4804

Courtesy Copy To:

Patricia A. Murray

3514 N. W. 67th Street

Seattle, WA 98117

Developer:

________________________

_________________________________

__________ WA 98____

10. Payments to Developer will be forwarded to the address above in Paragraph 9. Developer shall every two years from the date of acceptance provide the District with information regarding the current contract name, address, and telephone number of the person, company, or partnership that originally entered into this Agreement. If Developer fails to comply with the notification requirements of this paragraph within sixty days of the specified time, then the District may collect any reimbursement funds owed to Developer under the contract, and this Agreement shall be null and void. Such funds must be deposited in the capital fund of the District. DEVELOPER, BY INITIALLING BELOW, ACKNOWLEDGES THAT HE/IT HAS READ AND UNDERSTANDS THAT DEVELOPER MUST COMPLY WITH THE NOTIFICATION REQUIREMENTS IN THIS PARAGRAPH AND THAT IF HE/IT DOES NOT, THIS AGREEMENT SHALL BE NULL AND VOID AND THAT HE/IT WILL NO LONGER BE ENTITLED TO RECEIVE REIMBURSENT FUNDS. ______

11. In the event legal proceedings are initiated by any party to this Agreement to enforce the terms of this Agreement, the substantially prevailing party shall be entitled to recover in such action reasonable attorneys’ fees and costs, together with interest on said amount at a rate of ten percent (10%) per annum, accruing thirty (30) days from the date said attorneys’ fees and costs are incurred until paid in full.

12. This Agreement shall be recorded by the District with the office of the Snohomish County Auditor immediately upon its execution by the parties herein. Developer agrees to pay all costs for recording this Agreement.

13. The terms and conditions of this Agreement shall constitute a covenant running with the land, binding upon the District and the Developer, their successors, heirs and assigns, or upon any parties subsequently acquiring any right, title or interest in the real property described on Exhibit A.

DATED this ____ day of _________, 20__.

CROSS VALLEY WATER DISTRICT

By ______________________________

Commissioner and President

By ______________________________

Commissioner and Secretary

DEVELOPER:

By ______________________________

By ______________________________

STATE OF WASHINGTON    )
    ) ss.
COUNTY OF SNOHOMISH    )

I certify that I know or have satisfactory evidence that _______________ and _______________, signed this instrument and acknowledged it to be their free and voluntary act for the uses and purposes mentioned in the instrument.

Dated ____________________________

_________________________________

Notary Public in and for the State of Washington

Residing at ________________________

My Appointment Expires _____________

STATE OF WASHINGTON    )
    ) ss.
COUNTY OF SNOHOMISH    )

I certify that I know or have satisfactory evidence that _______________ is the persons who appeared before me, and said person acknowledged that s/he signed this instrument, on oath stated that s/he was authorized to execute the instrument and acknowledged it as the _______________ of _______________, a Washington Corporation, to be the free and voluntary act of such company for the uses and purposes mentioned in the instrument.

Dated ____________________________

_________________________________

NAME: ___________________________

_____________________________

(Print Name)

Notary Public in and for the State of Washington

Residing at ________________________

Commission Expires ________________