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Mou/Moa - 2007 - Acquire Sufficient Water Rights / Municipal Well - 8/6/2007 RECEIVED & FILED CITY OF EAGLE AUG 0 6 2007 File: Route to: MEMORANDUM OF AGREEMENT This Memorandum of Agreement ("MOA") is made and entered into this ~ day of August, 2007, between the CITY OF EAGLE ("CITY") and ORCHARDS AT EAGLE, LLC ("ORCHARDS or DEVELOPMENT") to document the development of water rights and welles) for the proposed Development located in Ada County, Idaho. The purpose and objective of this MOA is to document and require ORCHARDS to acquire sufficient water rights and develop sufficient municipal welles) to deliver water to the Development consistent with Eagle City Code ~ 6-5-23. RECIT ALS WHEREAS, ORCHARDS is in the process of developing and seeking to annex the ORCHARDS property as particularly described in Exhibit "A" and generally as shown on Exhibit "B", attached hereto and incorporated by reference; and WHEREAS, Orchards will require water rights and accompanying welles) to serve the Development; and WHEREAS, as a condition of annexation of Orchards into the CITY, ORCHARDS is required to acquire and develop sufficient water rights and one or two municipal wells for the purpose of serving the Development in order to comply with Eagle City Code ~ 6-5-23; and WHEREAS, ORCHARDS has represented that it has an existing permit for a water right No. 63-32258 for 3.74 cubic feet per second (c.f.s.) that is sufficient for the planned seventy- four (74) units in the Development; and G:\2006\06176\Admin\_ Corresp-lnlD _ 070803e.gle mo._ 06176.doc Page I of5 WHEREAS, ORCHARDS has represented that it intends to use other existing groundwater water rights to supply needed irrigation water for the Development and that such rights are adequate for the irrigation needs of the Development. NOW THEREFORE, the CITY and ORCHARDS agree as follows: 1. ORCHARDS shall, at its own expense, proceed to develop permit No. 63-32258 and to design, drill, and develop, municipal welles) that meet all municipal well requirements in accordance with all applicable laws and regulations and transfer the same. to the CITY. All water rights, municipal wells, and design and construction of the same shall be subject to the approval of the CITY Engineer consistent with Eagle City Code ~ 6-5-23. 2. Upon the signing of this MOA, ORCHARDS agrees to take all steps necessary to guarantee that it has the authority with respect to the land where the points of diversion of water right permit No. 63-32258 are located in order to convey such land to the CITY for the well sites and any easements necessary to provide water delivery from the welles) to the Development or to otherwise connect to the CITY water system as determined by the CITY Engineer. ORCHARDS shall convey such lands to the CITY upon notice by the CITY. Proof of such authority shall be provided to the CITY. 3. Upon request by the CITY, ORCHARDS agrees that prior to licensing of the water right permit No. 63-32258, ORCHARDS shall, at its own expense, submit an application for amendment to convert the nature of use of water right permit No. 63-32258 to "municipal". 4. For irrigation and aesthetic water needs of the development, ORCHARDS agrees that it will design and develop a pressurized irrigation system using existing or acquired water rights. ORCHARDS may, at its discretion, convey title, authorization, and responsibility to manage the irrigation system to a duly organized Homeowners Association. If ORCHARDS G:\2006\06176\Admin\_Corresp-lnlD _070803e.gle mo._06176.doc Page 2 of5 does not do so in a manner that provides for irrigation and aesthetic water needs of the Development acceptable to the CITY, ORCHARDS shall remain liable for irrigation and aesthetic water uses in the Development. 5. ORCHARDS understands and agrees that developing and assigning permit No. 63-32258 to the City and transfer of the municipal welles), well site(s) and necessary easements to the CITY are an absolute condition for approval of building permits for the Development, and the CITY will not issue any building permit(s) until the well or wells are completed, all necessary interests conveyed to the CITY, all water rights and wells are ready and able to deliver water to the Development, and all costs and expenses owed to the CITY pursuant to City Code ~ 6-5-23 have been paid to the CITY and others as necessary. The obligation to develop water rights and welles) may be waived by the City, in its sole discretion, if the Development connects to the City of Eagle system and is served by existing City of Eagle wells and municipal water rights upon such terms and conditions as are acceptable to the City and ORCHARDS. ORCHARDS further understands and agrees that the above described water right and municipal welles), as approved by the CITY, the Idaho Department of Water Resources and the Idaho Department of Environmental Quality, shall be the sole means by which ORCHARDS Development is supplied with potable water unless the Orchards is supplied by other City of Eagle wells and municipal water rights as set forth above. 6. In order to meet redundancy requirements of the Department of Environmental Quality, Orchards may, upon such terms and conditions as are acceptable to the City and City Engineer, connect one municipal well on the Orchards site to the proposed Eaglefield well currently pending approval. If Orchards does not or cannot meet redundancy requirements by connecting to the proposed Eaglefield well, Orchards shall drill a second municipal well on the G:\2006\06176\Admin\_ Corresp-In\D _ 070803e.gle mo._ 06 I 76.doc Page 3 of5 Orchards property at a location to be identified by the CITY. Orchards acknowledges and accepts that the proposed Eaglefield well is currently pending approval and Orchards accepts responsibility and all risks that the Eaglefield well may not be approved within a timeframe that would allow Orchards to meet its redundancy requirements. 7. ORCHARDS understands and agrees that this MOA may be incorporated into a development agreement between the CITY and ORCHARDS as part of the rezone approval process. 8. Each party signing below attests and declares under penalty of perjury that the party has authority to sign on behalf of the indicated entity or entities. ORCHARDS AT EAGLE, LLC, an Idaho Limite Liability Company MikeDi THE CITY OF EAGLE, a municipal corporation By STATE OF IDAHO ) )ss. County of Ada ) On this3c! day Of~ ' 2007, before me, a Notary Public in and for said state, personally appeared Ike Dixon, known or Identified to me, to be the person whose name is subscribed to the within instrument, and acknowledged to me that he executed the same. SUBSCRIBJ:;,I;\.M)f) SWORN to before me this '!l~ day Of~, 2007. .<<0; ~~ "" ~l\ WI" .... · ...........'0 ~........... &0 #""~ ~ -A :..a ~ '" .D eo ~ ~ ........... ! / ~OTAal' \ \ ot~~ Public for IdaJ:o :- * : .-- :* : Resldmg at 'iiitP/.LIJ. ~t.J ~ ~. PrJRl..lC I g Commission Expires 7.~~. ::1DII -:0.,. 00. "eo: ........ tll-')... 0& DO ...')..0.... '" .r;,.." DaOOoOoo ~,'Y..... ## "1'10' ~~v " 0:\2006\06 I 76\Admin~~,e1;j>"{.hB _ll'r~~eagle mo. _ 06 I 76.doc ~#ftll."I..1 Page 4 of 5 STATE OF IDAHO ) )ss. County of Ada ) On this ~ day of ~~1.A '3,. +- , 2007, before me, a Notary Public in and for said state, personally appeared Nanc C. Merrill, known or identified to me, to be the person whose name is subscribed to the within instrument, and acknowledged to me that she executed the same. ~.,"""ttlll ~".,. <i:.~l H 0 ~ .,.... .'Ii "- ~ ....... 1'.0 " ., .. ... .. CA..... ....... eo .y .- l.r ." I "'OT.'\".... ~ i: ~r \ : : .. . ...~ . : - , : "If : \ .. J:>UBL\C : S _(ft- .... __ -'" e. ....... ~ A -. .- 0 -:- ,#. - (^ ........ '\" .... ## ",.,.... l'\." ...... #. <; OF 1\)'> ." ##, ,~\ ,'......11'" SUBSCRIBED AND SWORN to before me this E,r&dayof .At.c3, u. '::',.+-, 2007. >;)1; ~ .~r' ~ Notary Public for Idahq Residing at ~\QX i d.4 '~\A.., -:tP Commission Expires -Cf'-' C4! -C ~ . 0:\2006\061 76\Admin\_ Corresp-InlD _ 070803eagle mo. _06 I 76.doc Page 5 of5