HomeMy WebLinkAbout99- Derzay, Michael & Katy Annexation Agreement
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ANNEXATION AGREEMENT
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THIS AGREEMENT is made and entered into this ----L:.L day of . C '7'6r
1999, by and between the CITY OF BOZEMAN, a municipal corporation and political
subdivision of the State of Montana, with offices at 411 East Main Street, Bozeman,
Montana 59771-0640, hereinafter referred to as "City", and Michael & Katy Derzay, E.
5405 Baxter Lane, Bozeman, MT 59718, hereinafter referred to as "Landowners".
WITNESSETH:
WHEREAS, Landowners are owners in fee of a tract of certain real property,
hereinafter referred to as the "Derzay Annexation Tract", and more particularly described as
follows:
Certificate of Survey No. 17, located in the SE ~ ofthe SW ~ of Section
35, Township I South, Range 5 East, PMM, Gallatin County, Montana.
WHEREAS, the Landowners have petitioned the City for annexation of the
contiguous tract; and
WHEREAS, the Derzay Annexation Tract is not within the corporate limits of the
City or other municipality but is contiguous to the City and may therefore be annexed to the
City in accordance with the provisions of this Agreement and M.C.A. Title 7, Chapter 2,
Part 43.
WHEREAS, all parties recognize that the annexation of the Derzay Annexation
Tract pursuant to Seetion 7-2-4301, et seq., M.C.A., will entitle the said property to City
services, including municipal water and sewer service, upon their availability; and
WHEREAS, M.C.A. Section 7-2-4305 provides that a municipality and landowners
can agree to the provision of services to the area to be annexed; and
WHEREAS, the City's present water supply is insufficient to enable it to supply
reasonably adequate water service to additional customers outside the present city
boundaries; and
WHEREAS, the Landowners wish to convey to the City certain water rights or take
some equivalent action to provide water and sewer service to the Oerzay A1mexation Tract;
and
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WHEREAS, all parties recognize that the development of the Derzay Annexation
Tract will impact area streets, and may require additional public street improvements for
traffic circulation; and
WHEREAS, the Landowners fmd that this Agreement will provide for the most
satisfactory and dependable water supply or service available to furnish water and
wastewater collection, and provide traffic circulation for development near and within the
Derzay Annexation Tract; and
WHEREAS, the making and perfonnance of this Agreement is desirable to promote
the development of the most adequate water supply, wastewater collection and traffie
circulation pattern for the City as it now exists and as it is reasonably expected to enlarge;
and
WHEREAS, the securing of an adequate water supply and traf:fic system by the City
is necessary and of mutual advantage to the parties hereto; and
WHEREAS, the parties have determined that it is in the best interests of the City and
the Landowners, and in furtherance of the public health, safety and welfare of the
community to enter into and implement this Agreement.
IN CONSIDERATION of the mutual covenants and agreements herein contained,
the parties hereto agree as follows:
1. Recitals.
The above recitals are true and correct.
2. Annexation.
The Landowners filed an application for annexation of the Derzay Annexation Tract
with the City. The City, on July 6, 1999, adopted a Resolution of Intent to Annex the
Oerzay Annexation Tract. By execution of this Agreement, the City has manifested its
intention to annex the Derzay Annexation Tract pursuant to the terms and conditions ofthis
Agreement. Subject to the provisions of Title 7, Chapter 2, Part 43, the City shall, upon
execution of this Agreement, adopt a Resolution of Annexation of the Derzay Annexation
Tract to the City. Further, upon the execution of this Agreement, the Landowners shall do
all things necessary and proper to aid and assist the City in carrying out the terms, conditions
and provisions of this Agreement and effectuate the annexation of the Derzay Annexation
Tract to the City.
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3. Services Provided.
The City will, upon annexation, make available only existing City services to the
extent currently available, including municipal water service, municipal sewer service,
police protection, and fire protection, to the Derzay Annexation Tract, as provided in this
Agreement.
Landowners acknowledge and accept the fact that the level of :fire service is reduced
due to lack of fire hydrants in the area. Upon further development of the property, an
approved pressurized water supply (fire hydrants) meeting the flow requirements of the
1994 UFC Appendix Ill-A shall be provided to the subject property. Due to the distance of
the existing fire hydrants from the property, the construction of new commercial buildings
may require the installation of additional fire hydrants. Until such a time as water is
provided, the Landowners hereby agree to hold the City harmless for any and all claims and
liability for damages and injuries arising out of the reduced level offire service in the area.
4. Municival Water Service Defined.
The term "municipal water service" as is used in this Agreement shall be the service
which is supplied by the City in accordance with Chapter 13, 12, Bozeman Municipal Code,
or as may be amended, as well as any other terms and conditions which apply to the City's
provision of this service. The term does not contemplate the extension of lines or
construction of necessary improvements at any cost to the City for delivery of water to and
within the Derzay Annexation Tract. Nothing in this Agreement shall obligate the City to
pay for right-of-way acquisition, engineering, construction, and/or other costs for the
delivery of water to or within the Derzay Annexation Tract to include, but not limited to,
any impact fees, hook-up, connection, or development charges which may be established by
the City.
5. Municioal Sewer Service Defined.
The term "municipal sewer service" as is used in this Agreement shall be the service
which is supplied by the City in accordance with Chapter 13.24, Bozeman Municipal Code,
or as may be amended, as well as any other terms and conditions which apply to the City's
provision of this service. The term does not contemplate the extension of lines or
construction of necessary improvements at any cost to the City for collection of sewage at
and within the Derzay Annexation Tract. Nothing in this Agreement shall obligate the City
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to pay for right-of-way acquisition, engineering, construction, and other costs f()r the
collection of sewage services to or within the Derzay Annexation Tract to include, but not
limited to, any impact fees, hookup, connection, or development charges which may be
established by the City.
6. Water Ri2hts.
The parties acknowledge the following City policy:
Prior to annexation of property, it shall be the policy of the City of Bozeman to
acquire usable water rights, or an appropriate fee in lieu thereof, equal to the
anticipated average annual consumption of water by residents and/or users of the
property when fully developed. The fee may be used to acquire water rights or for
improvements to the water system which would create additional water supply
capacity. Except, however, that for any annexation in excess of ten (10) acres, this
policy shall be carried out prior to [mal plat approval of each development phase.
Section 2, No.5, Commission Resolution 3137, Adopted August 19, 1996
The Derzay Allilexation Tract consists of approximately 2.00 acres. The Landowners
understand and agree that they must provide sufficient water rights.
The City calculated the average annual diversion requirement necessary to
provide watcr to this annexation tract on the basis of the zoning designation and/or City-
approved development. The amount of water use per year based upon the zoning
designation of the Derzay Annexation Tract is I-acre feet. Cash-in-lieu thereof is equal
to $271.82.
7. Comprehensive Water and Sewer Desi2n Report.
Prior to any further development ofthe property, the Landowners may be required to
have prepared by a Professional Engineer, at Landowner's expense, a comprehensive design
report evaluating existing capacity of sewer and water utilities in the area. The report must
include hydraulic evaluations of each utility for both existing and post-development
demands, and the report findings must demonstrate adequate capacity to serve the full
development of the land. If adequate water and/or sewer capacity is not available for full
development, the report must identify necessary water system and sewer system
improvements required for full development. The Landowners agree to complete at
Landowner's expcnse, the necessary system improvements to serve the full devclopment.
8. Connection of existin2 dwellinl! units to City Water and Sewer.
The Landowncrs understand and agrec that upon annexation and upon availability of
service, all new dwellings constructed on the property shall connect to city water and sewer
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service. At the time the existing single-family residence and shop located in the northwest
corner of the property, connect to city sewer service, any existing scptic tanks shall be
pumped and filled, or removcd and shall be verified by thc City Building Department.
9. Waiver of Ril!ht-to-Protest Special Imofovement Districts.
Landowner has executed a Waiver of Right-to-Protest Creation of Special
Improvement Districts for street improvements, including paving, curb/gutter, sidewalk,
boulevard and storm drainage appurtenances to: a) Baxter Lane; b) Thomas Lane-future
North 2ih Avenue; c) traffic signal and intersection improvements for the intersection of
Baxter Lane and North 19th Avenue; d) a City-wide Parks Maintcnance District, which
would provide a mechanism for the fair and equitablc assessment of maintenance costs for
city parks; e) water main improvements for trunk water lines including Baxter Lane Water
Lines and Davis Lane/Fowler Lane Water Lines; and f) a sewer main to serve thc property
that will allow for gravity collection service to the property. Said Waiver is attached hereto
as Exhibit A.
10. Public Street and Utility Easements.
Landowner understands and agrees that utility easements, a minimum of thirty (30)
feet in width, will be necessary for the installation and maintenance of water and sewer
utility services to the annexed parcel. The Landowncr shall create such easements in
location agreeable to the City during the appropriate development procedure, but in no event
later than the tiling of any :final plat or site plan or issuance of a building permit on any of
thc parcels.
The Landowner understands and agrees that an additional 15' easement tor Baxter
Lane shall be granted to add to the existing 30' easement currently in place. This easement
will complete the required one half (45') of the 90' total easement required for future
improvements to Baxter Lane.
11. Stormwater Master Plan.
Landowners understand and agree that a Stormwater Master Plan for the Derzay
Annexation Tract for a system designed to remove solids, oils, grease and other pollutants
from the runoff from the public streets must be provided to and approved by the City
Engineer at the time of any future development. The master plan must depict the maximum
sized retention/detention basin locations and locate and provide easements for adequate
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drainage ways within the area to transport runoff to the Stormwater receiving channel(s).
The plan shall include site grading and elevation information, typical Stormwater
detention/retention basin and di.~charge structure details, basin sizing calculations, and a
Stonllwater facilities maintenance plan.
12. Future Development.
Landowners understand and agree that all future development on the Derzay
Annexation Tract shall be served by City Water and Sewer as provided for in the City's
facility master planning documents. Landowners understand and agree that municipal
scrvices arc not currently available to much of the area proposed for annexation, and that
thcre is no right, cither granted or implied by the City, for the Landowners to dcvelop any of
the Dcrzay Annexation Tract until it is verified by the City that necessary municipal
scrvices, including but not limited to policc and fire protection, arc available to all or a
portion of the Derzay Anncxation Tract.
The City Water/Sewer Department will allow a temporary connection of a scwer
service line to the 24" sanitary sewer trunk line in Baxtcr by way of a fl.)l'ce main until a
gravity main from the north is available. Upon plan approval, annexation, and following the
application procedure, the City Water/Sewer Department will provide a stub to the edge of
the easement. The City Water/Sewer Departmcnt will review plans i()r developmcnt of the
proposed water infrastructure whcn they are provided and make any recommendations
required to supply water to the Dcrzay A1mexation Tract.
Prior to any further development on thc subject property, an approved pressurized
water supply (fire hydrants) mceting the How rcquircments of the 1994 UFC Appendix 1Il-
A shall be provided to the subject property. The water system shall be installed, tested and
approved by thc city prior to the issuance any building permits.
13. Impact Fees.
Landowner(s) hereby acknowledge that annexation and development of their
propcrty will impact the City's cxisting street, water, and sewer infrastructurc, and fire
service requirements. Landowners shall pay to the City Fire and Street Impact Fees fl.)r
the existing structures within the Tract prior to or at the time of Landowners' execution
of thb Agreement. At the time the existing and/or new structures apply to the City's
Water and Sewer facilities, the Landowners shall pay all Water and Sewer Impact Fecs
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which are due. Thc Landowners and their successors shall pay all Fire, Street, Water and
Scwcr Impact Fees required by Chapter 3.24, Bozeman Municipal Code, or as amended,
at the time of application for any permit listed in Section 3.24.050A, 3.24.060A,
3.24.070A, or 3.24.080A, respectivcly. If impact fees imposcd pursuant to Chaptcr 3.24
of the Bozeman Municipal Code are subsequently voidcd or declared invalid by a court
of competent jurisdiction, Landowner agrees to pay City at that time, the amount
calculated for all such fees bascd upon the rates established at the date of this agreement.
Landowncrs further understand and agree that any improvements, cither on~ or off-sitc,
necessary to provide connection of the Derzay Annexation Tract to municipal services
which are wholly attributable to the property are "project related improvements" as
dcfined in Chapter 3.24, Bozeman Municipal Code, or as amended, and as such, are not
eligible for impact fee credits.
If Landowner shall default on this condition at the time such is to be performed,
and should default not be remedied or corrected within thirty (30) days after written
noticc by City to Landowner of such default, City may at their option:
A. Declare the amounts owing t(H impact fees immediately due and payable and City
shall have the right and privilege to take legal action against Landowner for the
collection of sueh sum, including the entry of any judgment. In addition, the City
may, at its option, enforce payment of such amount by levying an assessment on the
premIses.
B. Elect any other remedy available to City under the laws of the State of Montana.
C. Any waiver by City of any default shall not be construed as a waiver of any
subscquent default.
D. It is agreed that it shall be no defense to the enfi)fcement of this provision by City that
impact fees imposed pursuant to Chapter 3.24 of the Bozeman Municipal Code are
subsequently voided or declared invalid by a court of competent jurisdiction. It is the
express intention of the parties not to be bound by such a declaration or judgment and,
thcrd()re, notwithstanding any judgment either limiting impact fee payments under
annexation agreemcnts to specified amounts, or prohibiting any such payment,
landowner will pay such amount as specified above.
14. Additional Tenns of Waivers.
The parties recognize that these documents shall be filed and on record with the
Gallatin County Clerk and Recorder, prior to the sale of any land within the Derzay
Annexation Tract. The parties further agree that the City may file these documents at any
time.
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15. Governini! Law and Venue.
This Agreement shall be construed under and governed by thc laws of the state of
Montana. In the event of litigation concerning this Agreemcnt, venue is in the Eighteenth
Judicial District Court, Gallatin County, State of Montana.
16. Attornev's Fees.
In the evcnt it becomes neccssary for either party to this Agrcement to retain an
attorney to enforcc any of the tcrms or conditions of this Agreement, thcn thc prevailing
party shall be entitled to reasonable attorney's fees and costs, to include thc salary and costs
of in-housc counsel including City Attorney.
17. Waiver.
No waivcr by either party of any breach of any term, covenant or agreement shall be
dcemed a waiver of the same or any subsequent brcach of this same or any other term,
covenant or agreement. No covenant, term or agrccmcnt shall be deemed waived by either
party unless waived in writing.
18. Invalid Provision.
The invalidity or inability to enforce any provision of this Agrccment shall not affect
thc other provisions hereof~ and this Agreement shall be construed in all respects as if such
invalid or unenforccable provi"ion were omitted.
19. Modifications or Alterations.
No modification or amendment of this Agreement shall be valid unless evidenccd in
writing and signed by thc parties hereto.
20. No Assienment.
It is expressly agreed that the Landowner shall not assign this Agrcement in whole
or in part without prior written consent of the City.
21. Successors.
This Agreement shall bc binding upon, insure to the benefit of and be enforceable by
the parties hercto and their respectivc heirs, suecessors and assigns.
22. Covenants to Run with the Land.
The partics intend that the terms of thi" Agreement shall bc covcnants running with
the land and shall not expire at their deaths or upon transtCr of ownership of the property.
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IN WITNESS WHEREOF, the parties hercto havc caused this Agreement to he
exccutcd the day and year first abovc written.
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Katy Den y
STATE OF MONTANA)
:ss
County of Gallatin )
On the J:l day of ~, 1999, beforc me, a Notal'y Puhlic for the Statc of
Montana, personally appeared Michael and Katy Derzay, known to me to he the persOll'"
whosc names are subscribed to the above instrumcnt and acknowledged to me that they
executcd the Sanle.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day
and year first written alxwe.
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CITY OF BOZEMANCITY OF
BOZEMAN
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By: Clark Johnson, City Manager
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Clerk of the City Commission
STATE OF MONTANA
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County of Gallatin
On the ,~ day of l'PCI!NlIn e....v- , 1999, hefore me, a Notary Public for the
State of Montana, pcrsonally appeared CLARK JOHNSON AND ROBIN L. SULLIVAN,
known to me to he the City Manager and Clerk of the City Commission respectively, of the
City of Bozeman, whosc names are suhscribed to thc within instrument and acknowledged
to me that they exccutcd the same t(.1r and on behalf of said City.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal on the
day and yeal' first writtcn above.
Not. b ic for the State of Montana
" ""'11.. ResIding. at Bozcman, Montana
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EXHIBIT "A"
WAIVER OF RIGHT TO PROTEST
CREATION OF SPECIAL IMPROVEMENT DISTRICTS
DERZA Y ANNEXATION TRACT
The undersigned owners of the real property situated in the County of Gallatin, State
of Montana, and more particularly described as follows:
Certificate of Survey No. 17 located in the SE ~ of the SW ~ of Section 35,
Township 1 South, Range 5 East, PMM Gallatin County, Montana.
IN CONSIDERATION of receiving approval for annexation of the subject property
from the City of Bozeman, along with accompanying rights and privilcges and for other and
valuable consideration, the receipt of which is hereby acknowledged, and in recognition of
the impacts on traffic, parks, and the need for municipal water and sewer services that will
be a result of the development of the above-described property, the owners have waived and
do hereby waive for themselves, their successors and assigns, the right to protest the creation
of one or more special improvement districts for paving, curb, gutter, sidewalk, and drainage
improvements to: a) Baxter Lane; b) Thomas Lane-future North 2ih Avenue; c) traffic
signal and intersection improvements for the intersection of Baxter Lane and North 19th
A venue; d) a City-wide Parks Maintenance District, which would provide a mechanism for
the fair and equitable assessment of maintenance costs for city parks; e) water main
improvements for trunk water lines including Baxter Lane Water Lines and Davis
Lane/Fowler Lane Water Lines; and f) a sewer main to serve the property that will allow for
gravity collection service to the property, or to make any written protest against the size or
area or creation of the district be assessed in response to a duly passed resolution of
intention to create one or more special improvement districts which would include the
above-described property.
In the event Special Improvement Districts are not utilized for the completion of
these projects, we agree to participate in an alternate fmancing method for completion of
said improvements on a fair share, proportionate basis as determined by square footage of
the property, linear front footage of the property, taxable valuation of the property, or a
combination thereof.
This waiver shall be a covenant running with the land and shall not expire with the
dissolution of the limited partnership, provided however this waiver shall apply to the lands
herein described.
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The terms, covenants and provisions of the Waiver shall extend to, and be binding
upon the successors-in-interest and assigns ofthc parties hereto.
DATED this /7 day of 0(/;------/ .1999.
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By: Michael
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By: Ka Derzay
STATE OF MONTANA)
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County of Gallatin )
On this ,CJ day of ('JJ. . 1999, before me, a Notary Public for the
State of Montana, personally appeared Michael and Katy Derzay, known to me to be the
persons whose names are subscribed to the above instrument and acknowledged to me that
they executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal
as oftQ~\da,.8IIIlil,xear fIrst above written.
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