Water Service Agreement - 2022 - Water Service by and Between Avimor Development, Sage Development Partners, and the City Of Eagle - 3/22/2022 SG1NIV�D
ADA COUNTY RECORDER Phil McGrane 2022-036228
BOISE IDAHO Pgs=9 NIKOLA OLSON 04/13/2022 11:21 AM
CITY OF EAGLE,IDAHO NO FEE
AGREEMENT FOR SERVICE
BY AND BETWEEN
SAGE INVESTMENT ENT PARTNERS, .LLB. {
t
AND
CITY OF EAGLE
x
k
}
AGREEMENT FOR SERVICE
BY AND BETWEEN
AVIMOR DEVELOPMENT, LLC
SAGE INVESTMENT PARTNERS, LLC
AND
CITY OF EAGLE
4 54607288-5
I
AGREEMENT FOR SERVICE
This Water Service Agreement ("Agreement") is entered into by and between the City of
Eagle, a municipal corporation of the State of Idaho, Sage Investment Partners LLC, an Idaho
limited liability company ("Sage") and Avimor Development, LLC, an Idaho limited liability
company ("Avimor"), effective this day of March, 2022 (the "Effective Date"). The City of
Eagle, Sage Investment Partners, LLC and Avimor are collectively referred to herein as the
"Parties."
RECITALS
WHEREAS, the City of Eagle has a municipal water department capable of providing
water utility services to customers both within and beyond the boundaries of its city limits,
within Eagle's municipal water service planning area; and
WHEREAS, Avimor and Sage developments are located within Eagle's Comprehensive
Planning boundary and Municipal Water Planning Area; and
WHEREAS, Avimor and Sage must supply their respective developments with a potable
water system; and
WHEREAS, the development of water and expansion of the City's municipal system into
the Avimor and Sage developments will provide redundancies and efficiencies for the City of
Eagle's existing municipal water system; and
WHEREAS, Avimor and Sage will donate and assign to the City of Eagle Idaho
Department of Water Resources ("IDWR") Permit Nos. 63-32061 and 63-34281 and Application
for Permit No. 63-34801; and
WHEREAS, the anticipated timing of the phased build out of the Avimor and Sage
developments will exceed the IDWR-authorized development deadlines for Permit Nos. 63-
32061 and 63-34281 and Application for Permit No. 63-34801 resulting in a need for assurance
of long-term options to acquire or assist in the acquisition and development of water necessary
for the developments. This can be achieved by obtaining water right authorization for reasonably
anticipated future needs ("RAFN"); and
WHEREAS, Avimor and Sage cannot legally apply for or own water rights for a RAFN;
and
WHEREAS, the City of Eagle can legally acquire RAFN water rights; and
WHEREAS, the City of Eagle is willing to provide water service to Avimor and Sage and
in consideration of this service will accept donation and assignment of IDWR Permit Nos. 63-
32061 and 63-34281 and Application for Permit No. 63-34801; and
2
154607288.5
WHEREAS, Avimor and Sage wish to receive water service from the City of Eagle and
will construct at their sole expense the necessary infrastructure to effectuate and receive water
service as well as any expenses related to the acquisition of a RAFN water right; and
WHEREAS, the execution of this Agreement does not bind the City of Eagle to annex the
Avimor and/or Sage developments; and
WHEREAS, Avimor and Sage will convey ownership of the water service system in
phases to the City of Eagle as it is constructed and approved.
NOW, THEREFORE, in consideration of the recitals and mutual covenants contained
herein, which are hereby incorporated into and made part of this Agreement, the Parties further
agree as follows:
DEFINITIONS
l. "Area of Service" shall mean areas located as shown in Exhibit A.
2. "City of Eagle" as used herein shall mean the City of Eagle acting through its properly
authorized officers, agents or employees, each acting within the scope of the particular duties
entrusted to them.
3. "Developer" shall mean Avimor and/or Sage.
4. "Subdivision" shall mean the legal dividing of a tract of land into two or more tracts, lots
or parcels.
5. "Water Facilities" shall mean wells, water storage, mains, water extension lines, pumps,
treatment systems and related infrastructure required to provide water service as described in the
Master Water Plan(s) yet to be approved by the City and any applicable regulatory agencies.
Any undefined terms shall have the definitions proscribed to them in the City Code of Eagle,Idaho.
TERMS OF AGREEMENT
6. The City of Eagle agrees to provide municipal water to the area of service as depicted in
Exhibit A. Prior to submittal of development plans to the City of Eagle, Sage shall submit a
supplemental Master Water Plan detailing the project for review and approval by City of Eagle.
7. Immediately after the execution of this Agreement, Developer shall diligently proceed to
obtain all governmental approvals including, without limitation, all necessary rights, permits,
information, and consents required by the appropriate federal, state, or local governmental
authorities, agencies, or officials to permit the construction, operation and maintenance of the
Water Facilities on Developer's property. As soon as practicable, after receipt of such
governmental approvals, Developer shall diligently proceed to construct the Water Facilities.
8. The cost of obtaining all governmental approvals (including but not limited to any
applications, permitting, beneficial use and licensing of water rights for use in the Avimor and
154607288.5
Sage developments), the cost of Master Water Plans and specifications, and the cost of the
construction of the Water Facilities (or any offsite facilities within the Water Master Plan
necessary to serve the Developers Property) located on property owned by Developer shall be
borne by Developer at its/their sole cost and expense. The plans, specifications, and construction
of the Water Facilities shall be reviewed, approved and inspected by City of Eagle prior to
acceptance. City of Eagle may at its sole discretion alter the performance from strict adherence
to such plans and specifications based on job site experience, or if adherence to such plans and
specifications becomes impractical or infeasible under the circumstances.
9. City of Eagle shall be the sole judge as to the adequacy of the Water Facilities. However,
City of Eagle agrees that alternative specifications may be considered on a case-by-case basis as
determined acceptable by the City of Eagle. City of Eagle will work with Developer in good
faith to review requests.
10. Developer will be required to develop a well monitoring plan and will be responsible for
the on-going monitoring of the wells through the completion of construction of the
developments. Developer will ensure that source water meets Idaho Department of
Environmental Quality requirements upon dedication of Water Facilities to the City of Eagle.
11. The constructed and approved Water Facilities and IDWR Permit Nos. 63-32061 and 63-
34281 and Application for Permit No. 63-34801 shall be contributed, transferred, assigned and
conveyed to City of Eagle by Developer or their agent/designee, at no cost to City of Eagle,
through bill(s) of sale, special warranty deed(s), easement(s), assignment(s) of permit,
assignment(s) of application, or other similar type of document. The City of Eagle will proceed
to acquire RAFN water rights as necessary to facilitate delivery of water required to meet the
current and reasonably anticipated future needs of the Avimor and Sage developments.
Developer will pay all costs associated with the acquisition of such RAFN water rights,
including attorney and consultant fees. The Parties understand and agree that such RAFN water
rights must be authorized by IDWR, pursuant to law, and City of Eagle makes no guarantee or
representation regarding the outcome of any administrative or judicial proceedings regarding the
same. The Parties agree to cooperate in good faith and take any actions reasonably necessary to
maximize the amount of water donated/assigned/acquired and ultimately licensed to City of
Eagle. Developer shall bear all costs for development of water, from application preparation and
prosecution through licensing.
12. The transfer of the Water Facilities, or the components thereof, to the City of Eagle are
contemplated to be completed in phases as they are constructed and approved by City of Eagle.
13. Developer or their designees shall warrant to City of Eagle in writing that the Water
Facilities have been constructed in accordance with applicable plans and specifications and shall
provide City of Eagle with as-built record drawings of the Water Facilities. Developer also
warrants the Water Facilities against defects in construction for a period of one (1)year from the
date of completion unless otherwise required in Eagle City Code or negotiated as a term of
acceptable alternatives as discussed in paragraph 8 of this Agreement.
4
154607283,5
14. The City of Eagle shall have the right to conduct, review and confirm, to City of Eagle's
satisfaction, test results in connection with any and all wells, soil tests, engineering tests,
environmental surveys, plans and specifications and/or record drawings, and related studies of
the Water Facilities deemed necessary by City of Eagle to determine the suitability, in City of
Eagle's sole discretion, of the Water Facilities.
15. In accordance with City Code 6-5-25, a Cooperative Agreement may be entered into on a
case-by-case basis at the time of construction drawing approval to provide for, among other
things, reimbursement of City of Eagle contributed costs such as engineering and legal expenses,
reimbursement of Developer's costs incurred for construction of facilities that benefit "late-
comers," and cost-sharing for special facilities. The fact that this Agreement requires
construction at Developer's "sole expense" does not necessarily render these expenses non-
reimbursable.
16. Upon conveyance of the Water Facilities or portions thereof to City of Eagle, and
acceptance thereof by the City, City of Eagle shall be solely responsible for management,
maintenance and operation of the Water Facilities, with the exception of any warranties provided
herein or in exchange for alternative specifications and standards as allowed in paragraph 8 of
this Agreement.
17. The Parties agree that the Water Facilities shall be managed, owned and operated by City
of Eagle in a manner consistent with City of Eagle's management and operation of its other
water utility facilities within the State of Idaho. If Developer is using or is shown to need water
in excess of amounts authorized by IDWR to meet the current and reasonably anticipated future
needs of the Avimor and Sage developments, the City of Eagle shall notify Developer that no
future development will be served until additional municipal water is procured, at Developer's
cost.
18. Developer shall prepare and record (prior to the sale of any lot) perpetual restrictive
covenants which include, without limitation, that the Water Facilities are or shall be owned and
operated by City of Eagle. City of Eagle shall cooperate with Developer in the preparation of
such restrictive covenants and shall have the right to approve such restrictive covenants prior to
recordation. Such approval shall not be unreasonably withheld or delayed. Developer shall
cause a notation to be made on any subdivision plat that states that the Water Facilities are or
shall be owned and operated by City of Eagle.
19. The term of this Agreement shall be for thirty (30) years from the Effective Date.
5
154607288.5
CITY OF EAGLE
ES By
Print Name Q ON a1 trC�1
�,, ,� +r►r,,• Its M0�115�
.,• T,�7,E of
6
154607288.5
SAGE INVESTMENT PARTNERS, LLC
TT ST: By ? :��
Print Name
Its .;. 4
r�
STATE OF IDAHO )
ss.
County of Ada )
On this ! r'_ day of April, 2022,before me,a Notary Public in and for the State of Idaho,
personally appeared Todd McCauley, known or identified to me to be the member of Sage
Investment Partners, LLC,the limited liability company that executed the instrument or the person
who executed the instrument on behalf of said limited liability company, and acknowledged to me
that such limited liability company executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
day and year first above written.
Notary Public for Idaho
'S1,..1,14611,� Residing at:
`+s�e" M� + �0��,� My commission expires:No
c6(Cj.]oTAR
- BL%C
roo, nF t0•'�
•
7
154607288.5
AVIMOR DEV OPM NT, LLC
ATTEST: By
Print Name -NA, ►tom 1
I L/ _1
Its I o�G.�i
STATE OF IDAHO )
ss.
County of Ada )
On this day of April,2022,before me, a Notary Public in and for the State of Idaho,
personally appeared Dan Richter,known or identified to me to be the managing member of Avimor
Development, LLC, the limited liability company that executed the instrument or the person who
executed the instrument on behalf of said limited liability company, and acknowledged to me that
such limited liability company executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
day and year first above written.
Notary Public-for Idaho
M.....■ ••� Residing at:
c.� 'I r' My commission expires: L C
Z P[I$LIG,y�,'
•''•. OFt
154607288,5
Exhibit A Eagle Water Map
DISCLAIMER:Descriptions and Illustrations of Avimor are based upon
current development concepts which are subject to change without
notice.All renderings are artists'conceptions and are not intended to be
enact duplications of homes,amenities,building images or landscaping.
This plan is the property of Avimor and cannot be published or
reproduced without the written consent of Avimor Partners or their legal
representatives.
I
I
I
I
I
I
I
' '�:
■
f'j 1
1
LAv1MOR
PROPERTY I V
�Ir �
1
J ■
J t I L
1 I SALE~ {
PROPERTY 1
1
i
N 4W �
q wca .em
r