Chapter 9.30
INSTALLMENT CONTRACTS

Sections:

9.30.010    Installment payments authorized – Form agreement.

9.30.020    Qualifications.

9.30.030    Interest rate.

9.30.040    Term.

9.30.050    Reimbursement amounts excluded.

9.30.060    Repealed.

9.30.070    Previous illegal connections and low balances excluded.

9.30.080    Minimum monthly payment.

Appendix A    Water installment agreement.

9.30.010 Installment payments authorized – Form agreement.

The board of commissioners of Cross Valley Water District, Snohomish County, Washington, hereby authorizes the payment of charges for connection to the district’s water system in installments for residential or commercial properties, subject to the provisions of this chapter, and approves the form of installment agreement set out in Appendix A of this chapter and incorporated herein by this reference. [Res. 2019-8-6 § 1; Res. 1990-9-1.]

9.30.020 Qualifications.

The board of commissioners may, but is not required to, authorize a property owner to pay charges for connection to the district’s water system in installments in the following circumstances:

(1) The owner of property containing a single-family residence that is served by a private well applies to connect the single-family residence to the district’s water system because the well has failed;

(2) The owner of property containing a single-family residence that is served by a private well applies to connect the single-family residence to the district’s water system otherwise demonstrates that payment of the applicable connection charges would be severe financial hardship;

(3) The owner of property containing a single-family residence that is connected to the district’s water system and for which connection charges have been paid to the district applies to connect an accessory dwelling unit or the district discovers an accessory dwelling unit and charges are owing per Chapter 9.10 CVWDC on the same property to the district’s water system; or

(4) The owner of property containing a commercial development that is connected to the district’s water system and for which connection charges have been paid to the district adds commercial units or uses to the development that require payment of additional water connection charges, or the district determines that such additional commercial units or uses exist on the property. [Res. 2019-8-6 § 1; Res. 1990-9-1.]

9.30.030 Interest rate.

The interest rate to be charged by the district on the deferred balance of the connection charges shall be the prime lending rate of the district’s bank plus four percent per annum. [Res. 2019-8-6 § 1; Res. 2018-3-7; Res. 1990-9-1.]

9.30.040 Term.

The term of an installment agreement offered to a property owner shall not exceed five years. [Res. 2019-8-6 § 1; Res. 1990-9-1.]

9.30.050 Reimbursement amounts excluded.

Meter installation fees and connection charges to be reimbursed to a developer with whom the district has executed a reimbursement agreement as permitted by Chapter 57.22 RCW may not be paid in installments and said amounts may not be included in the installment agreement. [Res. 2019-8-6 § 1; Res. 1990-9-1.]

9.30.060 Qualifications – Low income.

Repealed by Res. 2019-8-6. [Res. 1992-5-6.]

9.30.070 Previous illegal connections and low balances excluded.

A customer who has previously connected to the district’s water system illegally or whose balance on a connection charge is less than $1,000 shall not be permitted to pay connection charges in installments. [Res. 2019-8-6 § 1; Res. 1992-5-6.]

9.30.080 Minimum monthly payment.

The minimum monthly payment on any installment contract shall be $50.00. [Res. 2019-8-6 § 1; Res. 1992-5-6.]

Appendix A Water installment agreement.

AFTER RECORDING RETURN TO:

Cross Valley Water District

8802 180th St. SE

Snohomish, WA 98296-4804

INSTALLMENT AGREEMENT FOR WATER CONNECTION CHARGES

GRANTOR: CROSS VALLEY WATER DISTRICT, a Washington municipal corporation

GRANTEE:

ASSESSOR’S PROPERTY TAX PARCEL NO:

ABBREVIATED LEGAL: _____________

ADDITIONAL LEGAL ON PAGE:

THIS AGREEMENT is made this _____ day of ____________________, 2019, between CROSS VALLEY WATER DISTRICT, a Washington municipal corporation (“District”) and __________________. (“Owner”).

R E C I T A L S:

A. The District owns, operates and maintains a water system in an area which includes the Owner’s real property, located at ________________ and legally described as follows:

____________________________________________________________________________________________________________________________________ (the “Real Property”). The Owner desires to connect improvements located upon Owner’s Real Property to the District’s water system. The Owner has applied to connect ________________ on the Real Property to the District’s water system.

B. The District is authorized by RCW 57.08.005 to charge property owners seeking connection to the District’s water system, as a condition to granting the right to so connect, in addition to the cost of such connection, such reasonable connection charges as the District’s Board of Commissioners shall determine to be proper in order that such property owners bear their equitable share of the cost of such system.

C. The Owner desires to pay the Owner’s water connection charges to the District on an installment basis pursuant to the terms and conditions of this Agreement and RCW 57.08.005, which allows the payment of a connection charge with interest on an installment basis.

D. The District permits the payment of the Owner’s water connection charges to be paid over five (5) years, in accordance with CVWDC 9.30.040.

E. The purpose of this Agreement is to set forth the terms of the District’s consent to the Owner’s payment of the connection charges owing to the District on an installment basis and the Owner’s agreement to make such payments to the District on an installment basis.

NOW, THEREFORE, in consideration and mutual covenants and conditions set forth herein, the parties agree as follows:

1. Consent to Connection. The District grants permission to the Owner to connect to the District’s water system improvements consisting of __________________ to be located upon the Real Property.

2. Payment of Connection Charges.

2.1 The Owner shall pay the District total connection charges in the amount of ____________________ Dollars and _____ Cents ($____________) (“Connection Charges”) which includes the general portion of connection charges in the amount of $______ and a local portion of connection charges in the amount of $__________, of which $________ has been paid, the receipt of which is hereby acknowledged. The balance of $_______________ shall be paid on a monthly installment basis as follows:

The sum of _________________ Dollars and ___ Cents ($_______)on the 1st day of every month, commencing with the 1st day of ___________, 20__ or at such other time as designated by the District, together with accrued interest at the rate of _________ percent (__%) per annum on the unpaid balance until such principal and interest are paid in full.

2.2 In the event the Owner fails to pay any installment, together with accrued interest within thirty (30) days after it is due, then the entire unpaid balance of the Connection Charges, together with accrued interest shall become immediately due and payable, and said total sum shall thereupon be considered the delinquent Connection Charges. The District shall assess applicable penalties in the amount of 10% upon the delinquent Connection Charges, and certify said delinquency to the District Treasurer, and shall foreclose said lien pursuant to RCW 57.080.081 and other law, or as such statutes may be revised, amended or superseded. In addition to the right to assess penalties and foreclose, the District shall have the right to terminate the Owner’s water service after the Connection Charges are delinquent for a period of thirty (30) days until the delinquent amounts and penalties are paid in full.

2.3 Any and all payments made by the Owner to the District shall be applied to various District accounts in the following order: (i) unpaid accrued interest on the Connection Charges; (ii) any penalties on delinquent Connection Charges; (iii) any collection expenses and/or attorney’s fees incurred relating to the collection of the delinquent Connection Charges or delinquent water service charges; (iv) unpaid principal of the Connection Charges, and (v) water service charges.

2.4 The entire unpaid principal balance, together with interest accrued to the next succeeding payment date, shall become immediately due and payable upon any sale, conveyance or other transfer of the Real Property by the Owner.

2.5 The failure of the District to exercise any right or take any action that it may be entitled to pursue under this Agreement shall not constitute a waiver of any right or action, in the event of any subsequent default of delinquency by the Owner.

3. Lien on Real Property. The terms and conditions of this Agreement shall constitute a covenant running with the land, binding upon the District and the Owner, their successors, heirs and assigns, or upon any parties subsequently acquiring any right, title or interest in the Real Property. The unpaid Connection Charges and interest and penalties accrued thereon shall be a lien upon the Real Property.

4. Collection Expenses, Attorneys’ Fees and Interest. In the event action is taken by the District to collect delinquent Connection Charges, or to foreclose the lien therefore, the Owner agrees to pay all costs of collection including reasonable attorneys’ fees, together with interest on the amount of said costs at the rate of prime plus four percent (4%) per annum, accruing thirty (30) days from the date said collection costs and attorneys’ fees are incurred by the District until paid in full.

5. Owner’s Warranties and Representations. The Owner warrants that the Owner is the record fee owner of the Real Property and agrees to pay, in addition to the Connection Charges, such monthly or other periodic water services charges as may, from time to time, be fixed by the District.

6. Notices. 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 the District or the Owner at the following addresses:

District:    Manager of Cross Valley Water District

    8802 180th Street SE

    Snohomish, WA 98296-4804

Courtesy Copy To:    Rosemary Larson

    Inslee, Best, Doezie & Ryder, P.S.

    10900 NE 4th Street

    Bellevue, WA 98004

Owner:    ______________________

    ______________________

    ______________________

Any party may, by written notice to the other, designate a different address or designee.

7. Recording. This Agreement shall be recorded by the District with the office of the Snohomish County Auditor immediately upon its execution by the parties. The Owner agrees to pay all costs for recording this Agreement. The Owner shall pay the District for the costs of recording a release of this Agreement when all amounts owed pursuant hereto have been paid in full.

CROSS VALLEY WATER DISTRICT

By:______________________________

Printed Name, Title

OWNER:

By:______________________________

Printed Name, Title

STATE OF WASHINGTON    )

    ) ss.

COUNTY OF SNOHOMISH    )

I certify that I know or have satisfactory evidence that ________________ is the person who appeared before me, and said person acknowledged that ____ signed this instrument, on oath stated that ____ was authorized to execute the instrument and acknowledge it as the _____________ of CROSS VALLEY WATER DISTRICT, a municipal corporation, to be the free and voluntary act of such municipal corporation for the uses and purposes mentioned in the instrument.

Dated:____________________________

_________________________________

NAME:

Notary Public in and for the State of Washington

My Commission Expires:_____________

STATE OF WASHINGTON    )

    ) ss.

COUNTY OF __________    )

I certify that I know or have satisfactory evidence that ________ is the person who appeared before me, and said person acknowledged that ____ signed this instrument and acknowledged it to be ____ free and voluntary act for the uses and purposes mentioned in the instrument.

Dated:____________________________

_________________________________

NAME:

(print) ____________________________

Notary Public in and for the State of Washington

My Commission Expires:_____________

[Res. 2019-8-6 § 2 (App. A).]