Chapter 7.45
DEVELOPER EXTENSION AGREEMENTS

Sections:

7.45.010    Connection charges.

7.45.020    Time extensions.

7.45.030    Term.

7.45.040    DEA term extension requests – General facilities charges.

7.45.050    DEA extension requests – Clarification of policy on inspections.

7.45.060    DEA applications – Timing of contract execution.

7.45.070    Standard language.

7.45.080    Form.

7.45.010 Connection charges.

The connection charge payable under a developer extension agreement shall be due and payable at the time of the execution of the warranty bill of sale which conveys the project to the District free of any liens or encumbrances, and when all of the terms and/or conditions of the developer extension agreement have been completed to the satisfaction of the District. [Res. 636 § 1, 1998.]

7.45.020 Time extensions.

With regard to extensions of time for performance under any developer extension agreement, such extensions of time shall be limited to a period of one year from the time of signature on the developer extension addendum. Any connection fee payable will be charged and collected based on the connection fee that is current and applicable at the time of the execution of the warranty bill of sale, when all of the terms and/or conditions of the relevant developer extension agreement have been completed to the satisfaction of the District. [Res. 636 § 2, 1998.]

7.45.030 Term.

Effective February 24, 2000, the standard term for a developer extension agreement for the Lake Stevens Sewer District shall be three years. This change in the standard term for developer extension agreements shall be applicable to such agreements in force as of the effective date. [Res. 669, 2000.]

7.45.040 DEA term extension requests – General facilities charges.

At the first extension of the term of the agreement, the applicable general facilities charge amount shall be revised to the “then current” rate in effect at the time of actual payment. The required time of payment shall still be determined by standard contract language. [Res. 813 § 1, 2008.]

7.45.050 DEA extension requests – Clarification of policy on inspections.

Whenever the term of a developer extension agreement is extended, inspection of the sewerage improvements shall take place prior to acceptance or at any such time as the District Manager deems appropriate. The District Manager shall reserve the authority and discretion to determine what level of inspection is necessary at the time of inspection. Any necessary repairs identified by the inspection shall be addressed to the satisfaction of the District prior to acceptance. [Res. 813 § 2, 2008.]

7.45.060 DEA applications – Timing of contract execution.

Upon a determination by the District (and District Engineer) that an application is complete, there would be an allowance of six months to achieve execution of the DEA contract. (This policy shall also apply to side sewer and variance contracts.) If the contract is not executed by the applicant within the six-month time period, the contractual deposit shall be forfeited. Extensions to this time period may be granted by the District upon written request. [Res. 813 § 3, 2008.]

7.45.070 Standard language.

(1) The standard form DEA, a copy of which is attached to the resolution codified in this section as Exhibit A (LSSDC 7.45.080), is hereby reaffirmed and District staff is authorized to utilize the standard form DEA in working with property owners within the District to connect to and extend District facilities.

(2) The Board of Commissioners hereby delegates authority to the District General Manager and his or her designee to approve and sign DEAs and DEA addenda that (a) do not significantly deviate from the standard form DEA approved by the Commission, LSSDC 7.45.080; (b) have been reviewed and approved by the District’s administrative and technical staff; (c) have been reviewed and approved by the District’s consulting engineers; and (4) have been reviewed and approved by the District’s legal counsel.

(3) The Board of Commissioners hereby delegates authority to the District General Manager and his or her designee to approve and sign DEA construction plans that (a) meet District construction specifications; (b) have been reviewed and approved by District technical staff; and (c) have been reviewed and approved by the District’s engineers.

(4) DEAs and addenda which have significant revisions from the standard form DEA, LSSDC 7.45.080, or standard form addendum, or which have a provision imposing a local or basin reimbursement charge on property shall be brought before the Board of Commissioners for review and approval.

(5) DEAs in which District financial participation is proposed shall be brought before the Board of Commissioners for review and approval. [Res. 968 §§ 1 – 5, 2019; Res. 759 § 1, 2006.]

7.45.080 Form.

Return Address:

Lake Stevens Sewer District

1106 Vernon Road, Suite A

Lake Stevens, WA 98258

Document Title: PROJECT NAME DEVELOPER EXTENSION AGREEMENT

Reference Numbers:

Grantors: Owner Name

Grantee: Lake Stevens Sewer District

Legal Description: A portion of the ___ quarter of Section ___, Township ___ N, Range __ E, W.M., in Snohomish County, Washington.

Full legal on Page ___ of attached document.

Property Tax Account Number: Parcel Number

PROJECT NAME

DEVELOPER EXTENSION AGREEMENT

THIS AGREEMENT is to be effective as of the _____ day of ____________ 20___, by and between Owner Name (the “Owner”) and Lake Stevens Sewer District, a special purpose district of the State of Washington (the “District”).

RECITALS

A. The Board of Sewer Commissioners of the District operates a system of sewerage for collection and treatment of sanitary sewage in a portion of the District.

B. The Owner owns certain property legally described in Exhibit “A” attached hereto and by this reference made a part hereof and shown generally on Exhibit “B” attached hereto and by this reference made a part hereof (the “Property”). The Owner desires to have the Property furnished with sewage collection and treatment service by the District.

C. The District has determined it has capacity in the District’s system of sewerage for __________ (___) equivalent residential units in connection with Owner’s Property.

D. The Owner is willing to construct a system of sanitary sewer lines at Owner’s expense, pursuant to the terms of this Agreement, in order to connect the Property to the District’s existing sewer system at a location in the vicinity of SSMH #______.

E. The construction of an extension to the District’s system of sewerage for the collection of sanitary sewage on the Property is consistent with the District’s comprehensive plan.

F. As an initial step in providing sewage collection and treatment service to the Property, improvements to the District’s system must be constructed and installed.

G. The improvements consist generally of furnishing and constructing eight-inch sanitary sewer lines and all appurtenances necessary to comprise a complete system ready for operation (the “Project”).

H. Owner has complied or will comply with all platting and legal requirements of Snohomish County and/or the City of Lake Stevens (or other municipal authority).

TERMS AND CONDITIONS

IN CONSIDERATION of the mutual promises and performances provided herein, the parties hereto for themselves, their assigns and successors in interest, agree as follows:

1. PERMISSION TO CONSTRUCT PROJECT: Subject to the terms and conditions of this Agreement, the District shall permit the Owner to construct and install the Project, at Owner’s expense.

2. STANDARDS OF CONSTRUCTION: Construction and installation of the Project shall be strictly in accordance with standards, rules and regulations of the District as now in effect and as the same hereafter may be amended, and the standards of the State Department of Ecology.

3. PREPARATION AND REVIEW OF PLANS AND SPECIFICATIONS: To insure that the Project is designed to the satisfaction of the District, Gray & Osborne, Inc., the consulting engineers of the District (the “Engineers”), shall review and approve in writing before work on the Project is commenced, the plans, specifications and drawings of the Project, which shall be prepared by a licensed professional engineer of the Owner’s choosing. The Owner shall permit the District and the Engineers to inspect the construction and installation of the Project, both visually before any pipe is covered and by pressure or water test upon final completion, before connection is made to the District’s sewer system. The District and the Engineers shall have authority to reject any construction and installation not conforming to the approved design of the Project and the requirements of this Agreement. The determination of the District and the Engineers shall be final. To ensure that the Project is designed in accordance with the standards of the State Department of Ecology, the District and the Engineers may require that the plans, specifications and drawings be approved by the Department of Ecology in writing before work on the Project is commenced.

4. ENGINEERING, LEGAL AND ADMINISTRATIVE COSTS: During the period of design, construction and installation of the Project, the District shall submit monthly to the Owner a statement of charges for other services of the Engineers pursuant to this Agreement, which statement shall be equal to the statement submitted by the Engineers to the District pursuant to the applicable fee arrangement for engineering services between the District and the Engineers. The District shall also submit monthly to the Owner during such period and until this Agreement has been fully performed and the Project has been constructed and conveyed to the District, a statement of charges for legal services, which statement shall be equal to the statement submitted to the District, by Anderson Hunter, its attorneys (the “Attorneys”), pursuant to the applicable agreement between the District and the Attorneys, for all work performed by the Attorneys in connection with the preparation, performance or review of this Agreement, including, but not limited to, participation in any pertinent administrative or court proceedings to which the District may become a party.

The statement of charges shall include, and the Owner shall also pay the greater of $15.00 or an amount equal to 15% of the charges of the Engineers and the Attorneys for the administrative cost to the District of handling such statement of charges, and all other out-of-pocket costs of the District attributable to this Agreement. The Owner shall pay any statement of charges by the last working day of the month in which the charges were billed. Statements not paid in full by the end of the month shall be deemed delinquent and shall accrue interest at the rate of 12% per annum from the date of delinquency.

The Owner has paid to the District a $2,500.00 deposit, which, except as provided in Section 13, shall be refunded to the Owner without actual accrual and payment of interest after all fees and charges provided for in this Agreement have been paid by the Owner and the Project has been completed and accepted by the District. In the event there are any fees and/or charges which are not paid in full at the completion of the Project, the District reserves the right to deduct the balance due from the deposit and release the remainder, if any.

The District shall have the right to commence, appear in or defend any action or proceeding affecting the rights of the parties hereunder, and in connection therewith shall have the right to pay necessary expenses, including the costs of engineering and legal services, subject to reimbursement by the Owner in the manner provided herein.

5. COMMENCEMENT OF THE PROJECT: In addition to any other requirements of this Agreement, and before construction of the Project is commenced, the Owner shall take the following action or receive the following approvals:

(a) Obtain District approval of its contractor in accordance with the qualification requirements of applicable law and the District’s Administrative Code.

(b) Provide evidence acceptable to the District that Owner and Owner’s contractor have obtained comprehensive general liability insurance coverage and other insurance coverage deemed appropriate by the District in a form and amount acceptable to the District for the work being performed. The District and District Engineers shall be named as additional named insured party under the policies.

(c) Obtain all applicable permits and approvals from agencies of City of Lake Stevens, Snohomish County, State of Washington, and/or federal authority (or other municipal authority), if required. For projects where the District exercises SEPA authority, the Owner shall pay the costs thereof.

(d) Deliver to the District executed copies of any required easements and/or performance bond obtained for property or improvements located outside the boundaries of the Property. Such easements and performance bond must be in a form acceptable to the District and District Engineers and the easements suitable for County recordation.

(e) A pre-construction meeting is required and shall be scheduled by the District and District Engineers prior to commencing construction of the Project. Submit construction cut sheets no later than 48 hours prior to the pre-construction meeting.

6. COMPLETION OF THE PROJECT: Subject to any applicable federal, state or local requirements, the Owner shall satisfy the following requirements before the Project is connected to the District’s sewer system:

(a) Obtain approval and acceptance of the construction and installation of the Project by the District.

(b) Pay for construction and installation of the Project, engineering and legal services, and administrative, out-of-pocket and all other applicable fees and charges, including, but not limited to, connection charges. The District shall have the right to hold the $2,500.00 deposit and any bonds required by the District until said fees and charges are paid. The District may, at its discretion, hold deposit funds and bonds and apply them as offsets for fees and charges owed.

(c) Satisfy and release all liens and encumbrances for labor, materials and taxes relating to the Project.

(d) Convey to the District without cost to the District exclusive easements and rights-of-way per District standards, as required for all Project sewer lines, with the right of ingress and egress for maintenance, operation, repair and replacement.

(e) Obtain for the District such other easements as are found by the District and District Engineers to be necessary to gain access to the Project.

(f) Convey the Project to the District free of liens and encumbrances by conveyance of donated facilities substantially in the form of the Title Transfer of Donated Facilities provided in the District standards. The Owner’s conveyance of the Project sewer lines to the District shall be completed before the Owner sells or contracts to sell the Property or any portion thereof. The Owner shall give the District 30 days notice of a change of ownership prior to the conveyance and provide a certificate of assignment.

(g) Obtain the District’s acceptance of title to the Project sewer lines and required easements. Upon request of the District, the Owner shall provide to the District a title report concerning the Project and any easement or right-of-way that will be conveyed to the District.

(h) Provide to the District a warranty bond or bonds, furnished by a surety company acceptable to the District, in the amount of 25% of the estimated cost of the sewer lines being conveyed, including surface restoration. The release of the bond or bonds shall be conditioned on paying the cost of repairing or correcting any defects in the workmanship or materials furnished in the construction of such sewer lines that shall develop or be discovered within two years after conveyance to the District (as described in Subsection “f” above), together with the District’s out-of-pocket expenses, including, but not limited to, engineering and legal expenses, in connection therewith, and shall hold harmless and indemnify the District therefrom.

(i) Deliver to the District in forms acceptable to the District an original mylar, blackline, and electronic copy of “as-built” record drawings for the Project sewer lines, including all side sewer connections. Submit the Sewer System Survey Checklist of the District to the District after it has been completed and certified by a professional land surveyor.

(j) Deliver to the District a copy of the final plat of the Property or equivalent land use approval (i.e. binding site plan) within 30 days after such approval has been granted.

7. DISTRICT AUTHORITY: The Owner shall be subject to all standards, rules and regulations of the District, as now in effect and as the same hereafter may be amended, with respect to construction and inspection of sewer lines, connection and inspection of side sewers, obtaining of applicable permits, use of the sewers of the District and rates for use or availability thereof, and all such other matters covered by such standards, rules and regulations. In the event of delinquency in the payment of any charges and assessments imposed by the District, the Owner shall be subject to the lien and foreclosure provisions of the laws of the State of Washington, and the rules, regulations and resolutions of the District pertaining to property served by the District.

8. INDEMNIFICATION: The Owner shall indemnify, defend and hold the District, its officers, agents and employees harmless from all suits, claims or liabilities of any nature, including attorney fees, costs and expenses, for or on account of injuries or damages sustained by persons or property resulting from the negligent (sole or concurrent) acts or omissions of the Owner, its agents or employees under this Agreement or in connection with work performed under this Agreement. If suit in respect to the above is filed, the Owner shall appear and defend the suit at its own cost and expense, and if judgment is rendered or settlement made requiring payment of damages by the District, its officers, agents or employees, the Owner shall pay the same.

9. CONTRACTUAL RELATIONSHIPS: This Agreement does not constitute the Owner as the agent or legal representative of the District for any purpose whatsoever. The Owner is not granted any express or implied right or authority to assume or create any obligation or responsibility on behalf of or in the name of the District or to bind the District in any manner or thing whatsoever.

10. ULID FORMATION: If any utility local improvement district (“ULID”) is proposed to pay all or a part of the cost of constructing and acquiring sewers that serve or benefit all or a part of the Property, the Owner and its assigns and successors in interest agree that they will sign any petition to form such ULID and will not protest or object to the formation of such ULID. If the District constructs and acquires additional sewer lines and facilities within or serving the Property, nothing in this Agreement shall prevent the District from levying special assessments against any of the Property for the cost of those sewer lines and facilities and to the extent of the benefit from them. After conveyance to the District of the Project sewer lines, additional property may be permitted to connect to them under such terms and conditions as the District in its sole discretion may determine.

11. CONNECTION CHARGES: Before the connection of any Project sewer lines to the District’s sewer system, the Owner agrees to pay the District’s regular permit fees, together with a connection charge in the amount of $10,400.00 per connection (___ connections x $10,400.00/connection = $____________), together with applicable state taxes on that amount. No other property of the Owner in the vicinity of the Property shall be connected to the District’s sewer system until a contract providing for the connection has been entered into with the District. Connection fees shall be accepted by the District after acceptance of the warranty bond but prior to issuance of side sewer permits. The District shall only issue side sewer permits after acceptance of the Title Transfer of Donated Facilities unless otherwise provided for in this Agreement or Resolution 565 (Model Home Policy), and in all cases only after acceptance of any warranty bond required by this Agreement.

Insert all applicable latecomer payments owed by the project.

12. TIME OF ESSENCE; NOTICES Time is of the essence of this Agreement. If Owner is in default under any terms or conditions of this Agreement, or if any payment provided for in this Agreement is not timely made by the Owner, this Agreement may be terminated by the District at its option upon 10 days’ written notice to the Owner delivered by certified mail. All notices and payments relating to this Agreement shall be made at the following addresses, unless otherwise provided for in writing:

Lake Stevens Sewer District

Owner Name

1106 Vernon Road, Suite A

Owner Address

Lake Stevens, WA 98258

 

13. TERM OF CONTRACT/DELAY IN COMPLETION: This Agreement is based, in part, upon a preliminary plat/short plat granted to Owner by Snohomish County or the City of Lake Stevens. The Project shall be substantially completed, as determined by the sole discretion of the District, and the Title Transfer of Donated Facilities filed with the County on or before _____________(Insert date 3 years after date of DEA Approval). If the Title Transfer of Donated Facilities has not been recorded by the County on or before that date, the Owner’s rights under this Agreement shall cease and terminate and no sewer services shall be connected to the Project. If the Owner’s rights under this Agreement cease pursuant to this section, the $2,500.00 deposit paid by the Owner to the District shall be forfeited to the District. Any reapplication for a Developer’s Agreement on this Project thereafter, shall be subject to the resolutions, rules, regulations, fees, charges, and policies of the District in effect at the time of such reapplication, as well as the facts and circumstances then prevailing.

14. APPLICABLE LAW; VENUE: This Agreement shall be construed and interpreted in accordance with the laws of the State of Washington. The venue of any action brought hereunder shall be in the Superior Court for Snohomish County.

15. RECORDATION: This Agreement shall be recorded in the office of the Auditor of the County of Snohomish, Washington, and shall constitute an easement, covenant running with the land, and servitude upon the Property, which the Owner warrants it now owns, and shall be binding upon the parties hereto and their assigns and successors in interest. The cost of such recordation shall be paid by the Owner.

LAKE STEVENS SEWER DISTRICT

OWNER:

A Washington Special Purpose District

Owner Name

By_______________________________

By________________________________

Kevin Kosche, President & Commissioner

Its ________________________________

By_______________________________

 

Mariah Low, Secretary & Commissioner

 

By_______________________________

 

Dan Lorentzen, Commissioner

 

STATE OF WASHINGTON

)

 

) ss.

COUNTY OF SNOHOMISH

)

On this day personally appeared before me _________________________, to me known to be the ________________ of Owner Name, the limited liability company that executed the within and foregoing instrument, and acknowledged to me the said instrument was the free and voluntary act and deed of said limited liability company for the uses and purposes therein mentioned, and on oath stated that _______ was authorized to execute the said instrument for and on its behalf.

SUBSCRIBED AND SWORN TO before me by ______________ on this ____ day of ________________, 20____.

PRINTED NAME: ____________________

NOTARY PUBLIC

in and for the State of Washington.

My commission expires: _______________

PROJECT NAME DEA

Exhibit A: Legal Description

Insert Property Legal Description

PROJECT NAME DEA

Exhibit B: Vicinity Map

Insert Map showing adjacent streets and project connection point.

[Res. 968 (Exh. A), 2019; Res. 759 § 1 (Exh. A), 2006.]