HomeMy WebLinkAbout0-6 CILWR Reduction AgreementThis AGREEMENT is made and entered into on the date of last execution by and between
The Voyager Company, with a mailing address at 1999 Circle Drive Cleveland, OH 44106, 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 343-unit apartment and row houses project containing eighteen (18) residential buildings,
three (3) amenity-support buildings, trail on the east side, and outdoor space throughout the site;
Cash-In-L ieu of Water Rights Agreement with The Developer for West Side Flats Master Site Plan Page 1
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AGREEMENT FORTHE VOYAGER COMPANY
CASH-IN-LIEU OF WATER RIGHTS
WHEREAS, the development is assigned by the City application number 22280, is more commonly referred to
as the 2695 Tschache Lane SPR (22280), 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
20224, identified as the 2695 Tschache Lane SPR, projects that is being developed by The Developer on an existing
tract of land legally described as S02, T02 S, R05 E, ACRES 14.428, TRACT 1 REMAINDER NW4NE4 COS
1256 LESS MS 404.
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.
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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 * 294 multi-household units + 0.234 * 46 row house
= 47.22AF
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: 1.75 gpm WaterSense® labeled
High Efficiency Faucets:1.2 gpm WaterSense® labeled
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]
= 47.22AF * 0.796
= 37.587 AF
5.Outdoor Demand
For purposes of this Agreement, an outdoor water demand of 0.0 AF applies since. The
Developer intends to use an exempt groundwater well to supply the Project’s outdoor irrigation needs,
thus avoiding having to irrigate with the City’s public water supply. The City confirms that the MT
DNRC has verified in writing that an exempt well is allowable for the Project so long as they are not
manifold into a common system.
6. Baseline Lump Sum Payment of Cash in Lieu of Water Rights
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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))
*$6000/AF [EQ-4]
Phase
No. of
Residential
Units
Residential CILWR
Volume (AF) Initial CILWR Payment ($)
1 48 5.95 $ 35,712.00
2 42 5.21 $ 31,248.00
3 42 5.21 $ 31,248.00
Total 132 16.37 $ 98,208.00
7.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]
= (47.22 AF –37.587 AF) * $6,000/AF
= $57,798.00
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.
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 / 343 Units) * $57,798 [EQ-6]
8.Installed Fixtures Not Meeting High Efficiency Performance Standards
Residential Unit Water Demand Unit Water Demand
Units gal/yr/1,000 sq. ft. AF/residential unit gal/yr AF/yr
3 --- 0.234 ---0.70
46 --- 0.234 ---10.76
294 ---0.124 ---36.46
---10,000 --- 93,040 0.29
---5,000 --- 8,135 0.02
------ TBD
7.72 - Excluded
48.23
0.00
0.00
48.23
289,395$
Estimated Water Volume
inary Determination
Use Use Area
sq. ft.
Single Family Units ---
Row house Units ---
Multi Family Units (FL-1,2,3)---
Clubhouse 9,304
Gear Garage 1,627
Pool
Irrigation*
Total
less CILWR Credit from Annex or Subdivision
Prelim CILWR Fee - $6,000/AF**
*Provided via exempt well
**$6,000/AF CIL water rights value established by City Commission Resolution No. 4095
less historical annual avg metered use
Net Volume for CILWR
Preliminary
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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.
9.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.
10.Modification or Alterations
No modifications or amendment of this Agreement shall be valid unless evidenced by a writing
signed by the parties hereto.
11.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.
12. 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.
13. 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:
City of BozemanThe Developer
Attn: Matt Booma (The Voyager Company) Attn: Griffin Nielsen, PE
mbooma@thevoyagercompany.com gnielsen@bozeman.net
PO Box 12301999 Circle Drive Cleveland,
OH 44106 Bozeman, MT 59771
14.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.
15.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 master 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 master
site plan for the Project.
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18.Termination
In the event of termination pursuant to noncompliance with Section 19, 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.
19.Laws and Regulations
The Developer shall comply fully with all applicable state and federal laws, regulations and
municipal ordinances.
20.Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of
Montana.
21. Execution
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth
below.
THE VOYAGER COMPANY
BY: (Authorized Signer)
NAME:
TITLE:
DATE:
CITY OF BOZEMAN
BY:
DATE: