HomeMy WebLinkAbout038 - CILWR Efficiency Rebate AgreementCash-In-lieu of Water Rights Agreement with The Developer for the Alder Ridge & Sage Peak Apartments
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AGREEMENT FOR
SAGE PEAK APRTMENTS, LLC. and ALDER RIDGE APARTMENTS, LLC.
CASH-IN-LIEU OF WATER RIGHTS
This AGREEMENT is made and entered into on the date of last execution by and between Sage
Peak Apartments, LLC, and Alder Ridge Apartments, LLC, each with a mailing address at P.O. Box
4108, Bellevue, WA 98004, hereinafter called “The Developer” and the City of Bozeman, a municipal
corporation and political subdivision of the State of Montana, with offices at 121 North Rouse Avenue,
PO Box 1230, Bozeman, MT 59771-1230, hereinafter called the “City”.
WHEREAS, The Developer is in the process of obtaining approval by the City for the
development of a 341-unit apartment project containing nine (10) buildings, common open space, and
other site improvements;
WHEREAS, the development is assigned by the City application number 24122, is more
commonly referred to as the Alder Ridge & Sage Peak Apartments Site Plan (24122), and are hereinafter
called the “Project”;
WHEREAS, individual sites of the Project must be approved through the City’s site plan review
and approval process;
WHEREAS, Section 38.410.130 Bozeman Municipal Code (BMC) sets forth water rights
requirements that the Project must meet to obtain site plan approval.
WHEREAS, Administrative Order 2013-07 provides a manual of guidance, hereafter called the
“Manual”, pertaining to calculations of demand for water use as related to water rights requirements at
Section 38.410.130 BMC.
WHEREAS, it is the intent and purpose of The Developer and the City to hereby enter into an
Agreement for the Developer to satisfy the cash in lieu of water rights requirement for the Project with
consideration given for the installation of showerheads, clothes washers, and toilets meeting a certain high
efficiency performance standard.
NOW, THEREFORE, in consideration of the mutual covenants and conditions contained herein,
it is hereby agreed as follows:
1. Project Description
This agreement pertains to, and includes, the site plans project designated as City application
number 24122, identified as the Alder Ridge and Sage Peak Apartments Site Plan, projects that is being
developed by Graf St. Apartments, LLC. The Developer on an existing tract of land legally described on
Exhibit A (attached) and located in City of Bozeman, Gallatin County, Montana.
2. Cash in Lieu of Water Rights Requirement
The Developer has been informed of, and agrees to comply with, the cash in lieu of water rights
(CILWR) requirements at Section 38.410.130 BMC and understands that the Administrative Order 2013-
07 is a guidance manual for the administration of water rights requirements at Section 38.410.130 BMC.
Cash-In-lieu of Water Rights Agreement with The Developer for the Alder Ridge & Sage Peak Apartments
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Demands for water for which CILWR apply are those demands supplied from the City’s
municipal water system anticipated on an annual basis. CILWR is calculated by equation [EQ-1].
CILWR = [Indoor Demand (AF) + Outdoor Demand (AF)] * $6000/AF [EQ-1]
3. Baseline Residential Indoor Demand
Part III of the Manual contains demand calculation methodologies for CILWR. For purposes of
this Agreement, the calculation methodology employed for baseline indoor residential demand is Average
Multi-Household Residential Unit Basis. The multi-household residential water demand is 0.124 AF per
year per Multi-household unit (MU)
The annual baseline indoor residential water demand for the Project is calculated by equation
[EQ-2].
Baseline Indoor Residential Demand = 0.124AF * no. of multi-household units [EQ-2]
= 0.124AF * 341 multi-household units
= 42.28 AF
4. High Efficiency Indoor Residential Demand
Baseline indoor residential water demand is reduced through the installation of certain high
efficiency showerheads, clothes washers, and toilets. A 20.4% reduction in baseline indoor residential
demand is achieved by the high efficiency performance standards listed below for these water using
fixtures.
High Efficiency Showerhead: 1.5 gpm WaterSense® labeled
High Efficiency Clothes Washers: CEE Tier 1, 2, or 3
High Efficiency Toilets: 1.28 gpf WaterSense® labeled
The annual high efficiency indoor residential water demand for the Project is calculated by equation
[EQ-3]
High Efficiency Indoor Residential Demand = Baseline Indoor Demand * (1-0.204) [EQ-3]
= 42.28 AF * 0.796
= 33.65 AF
5. Other Indoor Demand
Project contains a 2,225 square foot clubhouse building with community, exercise and office
spaces that will be supplied water from City’s municipal system. For purposes of this agreement, these
water uses will be considered other indoor demands and will employ the Commercial, Industrial, and
Institutional (CII) Uses basis from Part III of the Manual to determine the anticipated average annual
water demand. Analysis of generic commercial space throughout the City has equated to an approximate
unit demand of 10,000 gal/year/1,000 sq.-ft. This unit demand has been applied to the clubhouse building
equating to a demand of 0.07AF.
Cash-In-lieu of Water Rights Agreement with The Developer for the Alder Ridge & Sage Peak Apartments
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6. Outdoor Demand
For purposes of this Agreement, an outdoor water demand of 1.30AF applies since The
Developer will use municipal water to supply the Project’s outdoor irrigation needs.
7. Baseline Lump Sum Payment of Cash in Lieu of Water Rights
Prior to each site plan approval for any individual phase of the Project, The Developer agrees to
pay a baseline lump sum amount for CILWR to the City as calculated by equation [EQ-4]. Table 1
provides a breakdown by phase of the initial CILWR payments for the Project. The lump sum payment
will be deposited into the City’s CILWR fund.
Initial CILWR Payment = (.0.124 AF/Unit* No. of Units in Phase) + Other Indoor (AF) +
Outdoor Demand(AF)) *$6000/AF [EQ-4]
8. High Efficiency Cash in Lieu of Water Rights Rebate
The City agrees to rebate back to The Developer from its CILWR fund that portion of its baseline
cash in lieu of water rights payment attributable to the reduction in baseline water use from high
efficiency showerhead, clothes washer, and toilet installations meeting the performance standards
contained in Part 4 of this Agreement installed within the apartment units. The maximum rebate amount
for the Project is calculated by [EQ-5].
High Efficiency Rebate = (Baseline Residential Demand (AF) – High Efficiency Residential
Demand (AF)) * $6,000/AF [EQ-5]
= (42.28 AF – 33.65 AF) * $6,000/AF
= $51,780
The Developer understands and acknowledges that the City will only issue said rebate upon its
confirmation and satisfaction, by inspection occurring at the time of final occupancy for individual
apartment buildings of the Project, that high efficiency showerheads, clothes washers, and toilets meeting
the performance standards of Part 4 of this Agreement are installed. The Developer must coordinate with
the City to verify that fixtures meet these performance standards prior to their purchase and installation.
To initiate the rebate, The Developer agrees to make a written request along with a statement
certifying that requisite high efficiency performance standards are met by the showerheads, clothes
washers and toilets installed within the building(s) for which the rebate is requested and provide
supporting documentation as requested by the City which may include but not necessarily be limited to
order invoices for the subject fixtures and installation invoices for the subject fixtures.
Use
Gal/Yr AF/Yr
Baseline Residential Indoor Demand - Multi Family Units --- 341 --- 0.124 --- 42.284
Other Indoor Demand - Clubhouse Building 2,225.00 --- 10,000.00 --- 22,250.00 0.07
Outdoor Demand - Irrigation 1.3
Net Volume for CILWR 43.65228
Initial CILWR Payment **
*Taken from Sheet IR4.7
**$6,000/AF CIL Water rights value established by city Commission Resolution No. 4095
Baseline Lump Sum Payment for Cash-in-lieu of Water Rights
Use Area SQ. FT. Residential Units Unit Water Demand
Gal/yr/1000SQ. FT.
Unit Water Demand
AF/Residential Unit
Estimated Water Volume
261,913.70$
Cash-In-lieu of Water Rights Agreement with The Developer for the Alder Ridge & Sage Peak Apartments
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The rebate amount issued back to The Developer per building will occur on a proportionate basis
as determined by [EQ-6].
CIL Rebate per Bldg = (No. of Apartment Units in Bldg/341 Total No. of Units)*$51,780 [EQ-6]
9. Installed Fixtures Not Meeting High Efficiency Performance Standards
Any installed fixtures determined by the City to not meet the requisite high efficiency
performance standards listed in Part 4 of this Agreement are deemed ineligible for cash in lieu of water
rights rebate. Should this provision be activated, a CILWR rebate amount will be determined based upon
those high efficiency fixtures contained in Part 4 of this Agreement that are verified to have been
installed.
10. Maintenance and Replacement of High Efficiency Fixtures
The Developer agrees to maintain all approved high efficiency fixtures for the life of the fixtures.
Replacements must at a minimum meet the same efficiency performance standards. The City reserves the
right to verify approved fixtures are in place at any time over the life of this Agreement.
11. Modification or Alterations
No modifications or amendment of this Agreement shall be valid unless evidenced by a writing
signed by the parties hereto.
12. No Assignment
It is expressly agreed that The Developer shall not assign this Agreement in whole, or in part,
without prior written consent of the City.
13. Successors
This Agreement shall be binding upon, in inure to the benefit of, and be enforceable by the parties
hereto and their respective heirs, successors and assigns.
14. Notice
All notices, requests or other communication to any party hereunder, shall be in writing and
sufficient if personally delivered, or by facsimile or email (with confirmation of receipt), or by registered
or certified mail, postage prepaid, return receipt requested addressed as follows:
The Developer City of Bozeman
Attn: Melanie Davies Attn: Griffin Nielsen, PE
melanie.davies@devcous.com gnielsen@bozeman.net
P.O. Box 4108 PO Box 1230
Bellevue, WA 98004 Bozeman, MT 59771
15. Entire Agreement
This Agreement embodies and constitutes the entire understanding between the parties with
respect to the transaction contemplated herein, and all prior or contemporaneous negotiations,
communications, conversations, understandings and agreements between the parties, oral or written, are
merged into this Agreement.
Cash-In-lieu of Water Rights Agreement with The Developer for the Alder Ridge & Sage Peak Apartments
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16. Term of Agreement
This Agreement remains active and will survive until final occupancy is granted by the City for
all buildings shown upon the approved site plan for the Project; and likewise this Agreement will expire
upon final occupancy being granted by the City for all buildings shown upon the approved site plan for
the Project.
17. Termination
In the event of termination pursuant to noncompliance with Section 18, The Developer is entitled
to CILWR rebate only for those buildings The Developer has received a grant of final occupancy from the
City on or before the receipt of a Notice of Termination.
18. Laws and Regulations
The Developer shall comply fully with all applicable state and federal laws, regulations and
municipal ordinances.
19. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of
Montana.
20. Execution
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth
below.
21. Consent to Electronic Signatures
The Parties have consented to execute this Agreement electronically in conformance with the
Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA.
SAGE PEAK APARTMENTS, LLC.
BY: (Authorized Signer)
NAME: David B. Ratliff
TITLE: Managing Member
Cash-In-lieu of Water Rights Agreement with The Developer for the Alder Ridge & Sage Peak Apartments
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ALDER RIDGE APARTMENTS, LLC.
BY: (Authorized Signer)
NAME: David B. Ratliff
TITLE: Managing Member
DATE:
CITY OF BOZEMAN
BY:
DATE:
Cash-In-lieu of Water Rights Agreement with The Developer for the Alder Ridge & Sage Peak Apartments
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LEGAL DESCRIPTIONS
ALDER RIDGE APARTMENTS:
LOT 1, BLOCK 2, SRX - NORTH, LOCATED IN THE NORTHWEST QUARTER OF SECTION 24, TOWNSHIP 2
SOUTH, RANGE 5 EAST OF THE P.M.M., CITY OF BOZEMAN, COUNTY OF GALLATIN, STATE OF MONTANA
SAGE PEAK APARMENTS:
LOT 2, BLOCK 2, SRX - NORTH, LOCATED IN THE NORTHWEST QUARTER OF SECTION 24, TOWNSHIP 2
SOUTH, RANGE 5 EAST OF THE P.M.M., CITY OF BOZEMAN, COUNTY OF GALLATIN, STATE OF MONTANA