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HomeMy WebLinkAbout20052865.tiff DRHORTON• N' jjnw' -"s �u rs `' Melody Series Weld County Planning Department GREELEY OFFICE AUG X 1 2005 July 28, 2005 RECEIVED Mr. Chris Gathman Weld County Department of Planning Services 918 10th Street Greeley, CO 80631 RE: Adler Estates Dear Chris: Please be advised that as per the letter dated July 13, 2005,to the Highland Secondary Water Co., LLC, Melody Homes, Inc. ("Melody") declined participation in their program. Melody is moving forward with Long's Peak Water District("Long's Peak")to own and operate both the domestic water system and the irrigation system. At this time we are working to finalize the Water Tap Purchase Agreement with Long's Peak that includes both systems. Please contact Linda Sweetman-King at 303-468-6700 should you have any further questions. Sincerely, ody , o s Inc. l�ba R. o on—Melody Series Se * ice Pr ident r 11031 Sheridan Boulevard•Westminster,CO 80020•(303)466-1831•Fax:(303)466-1838 www.melodyhving.com•www.drhortoncolorado.com 2005-2865 JUL-13-2005 WED 11 :03 AN FAX N0, P. 01/01 U fl MORTON" A`yyemcca-'s &Udder Melody Series July 13, 2005 VIA U. S.Mail Mr. Nick Sekich Mr. James Anderson Highland Secondary Water Co.,LLC 4309 State Highway 66 Longmont, CO 80504 RE: Secondary Supply System Dear Messrs. Sekich & Anderson: In response to your letter dated June 30, 2005,Melody Homes, Inc. is not ready to commit to the Secondary Supply System being proposed by Highland Secondary Water. As you are probably aware,Melody does not yet own the property which would be benefited by this proposed system and we are still investigating the water supply alternatives. Therefore,we are declining participation in this program, at this time. Sincerely, aff/A fry/ ante Kelly Land Acquisition Attorney Cc (w/enclosure): Linda Sweetman-King 11031 Sheridan Boulevard•WW1-master,CO 80010•(303)46o-1531•Fos::(303)46fi-1636 www.acelodyliving-mn•www.drhurtonmlolucian vn LONGS PEAK WATER DISTRICT SUBDIVISION SERVICE AGREEMENT FOR ADLER ESTATES 1. PARTIES.The parties to this Agreement are the LONGS PEAK WATER DISTRICT ("District"), and MELODY HOMES, INC., a Delaware corporation d/b/a D.R. HORTON - MELODY SERIES ("Developer"). The District and Developer are hereinafter referred to as the Parties. 2. RECITALS AND PURPOSE. The Developer has a contract to acquire certain property described on the attached Exhibit A, which the Developer seeks to develop and which is referred to as ADLER ESTATES ("Subdivision"). The District is a special district organized under Colorado law which provides potable water service to its customers for which monthly service charges are made. The Developer desires that the District commit to provide potable water service within the boundaries of the Subdivision for 1200 taps. The Developer shall comply with all of the District's bylaws, policies and regulations as they may now or hereafter exist. Additionally, the Developer will install potable water infrastructure in support of the Subdivision and requested taps for which plans and specifications shall be completed at a later date and approved by the District ("the Installations"). If the Developer complies with this Agreement, then the District agrees to provide potable water service for all requested taps under the terms and conditions set forth in this Agreement. The purpose of this Agreement is to set forth the terms and conditions concerning the District's supplying such domestic potable water service to the Subdivision.Accordingly,the Parties agree to the following provisions in consideration of the terms, conditions, and mutual covenants set forth herein. NOW, THEREFORE, THE PARTIES AGREE: 3. CONSTRUCTION. 3.1 Subject to the terms and conditions set forth herein, the Developer shall install the Installations pursuant to the plans and specifications approved by the District as stated in Paragraph 3.2 of this Agreement. The obligations and benefits to this Agreement shall run with the land described in Exhibit A. 3.2 The Developer shall submit plans and specifications as to the Installations to the District for approval,which approval shall not be unreasonably withheld,conditioned or delayed. Upon receipt of the plans and specifications for the Installations, the District shall have a reasonable time(approximately 30 days)to review the plans and specifications for approval or rejection. If written notice of approval is not given to the Developer within such time period, the plans and specifications shall be deemed rejected; provided, however if the District rejects such plans and specifications,the District agrees to provide to Developer the reasons for such rejection. Developer shall have the right to resubmit amended plans to the District for review. The District may impose reasonable standards for the protection of the Page 1 of 8 District. This review process shall continue until the plans and specifications are approved by the District or until terminated by the Developer. Upon this approval, and subject to the conditions set forth in Paragraph 7.2 below,the Developer and District shall execute a Line Extension, Participation & Rebate Agreement, a Tap Purchase Agreement, and other such agreements (all of the above, reasonably acceptable to Developer and the District) so as to accommodate domestic water service to the Subdivision. Developer shall make no modifications to the approved plans and specifications without the prior written approval of the District, which approval shall not be unreasonably withheld, conditioned or delayed. 3.3 The Developer shall notify the District at least three (3)business days preceding the date of commencing work involved on the Installations, or replacement of the Installations, permitted hereunder. The District may inspect the Installation or replacements during the construction thereof, as it deems necessary to protect its interests. The right of the District to inspect the Installations or replacements shall be solely for the benefit of the District and shall not be deemed to be a waiver of the District to enforce the obligation of the Developer to construct the Installations in accordance with the plans and shall not be deemed to estop the District for the Developer's failure to install or properly design its Installation. 3.4 The Developer agrees that the construction permitted hereunder shall proceed with reasonable diligence from the initiation of such construction to its completion. The Installations shall be constructed in such a manner so as not to interfere with the operations of existing facilities owned by the District without the prior permission of, notification to and coordination with the District. 3.5 Upon completion of the Installations, Developer shall notify the District. The District shall accept or reject Installations except that the District shall not be required to accept or reject until and unless all fees billed have been paid pursuant to Paragraph 5 below, and until all required easements have been dedicated. The District shall not unreasonably withhold acceptance. The District shall be entitled to test the Installations in accordance with District standards, specifications and directives. Acceptance or rejection shall be in writing. If the Installations are rejected, the District shall specify the reasons for rejection, and the Developer shall correct same, and the above process shall be repeated. Any and all fencing and other facilities appurtenant to the District's existing facilities shall be replaced in a condition at least equal to the condition of such facilities and appurtenances prior to construction. 3.6 The District's review and approval of the plans and specifications of the Installations is solely for its benefit and creates no benefit or right in any other party. The District's review and approval of the plans and specifications shall not relieve the Developer or its agents or employees from its duty to properly design and construct the Installations. 3.7 The Developer shall install permanent markers or indicators showing the location of the Installations for the purpose of locating the Installations as required by the Utility Notifications Center of Colorado. These markers shall be installed in accordance with the standards, specifications and directives of the District. Additionally, a trace wire shall be Page 2 of 8 installed along the entire length of the Installations,and shall be installed in accordance with the District's standards and specifications. 3.8 The Developer shall be responsible, at its own expense, for obtaining any local, state or federal permits or approvals necessary for constructing the Installations.It is the Developer's obligation to investigate and determine the need for any such permits or approvals. The Developer is responsible,at its own expense,for obtaining all local,state and federal permits or approvals and for compliance with all local, state and federal laws and regulations applicable to the construction of the Installations, including but not limited to land use and environmental laws and regulations,and specifically including the Endangered Species Act, prior to beginning construction. The Developer shall indemnify the District for any and all costs, damages, fines and fees, including reasonable attorney's fees incurred by the District as a result of the Developer's failure to obtain such required permits or approvals or failure to comply with all applicable laws and regulations. 4. INSPECTION. 4.1 The District is permitted to inspect the Installations, or replacement and repairs of the Installations during construction. Upon completion of the construction, the District may inspect the Installations. 4.2 The District's right to inspect the Installations or replacement of the Installations in no way relieves the Developer of its liability for improper design,construction or maintenance. The District's inspection is solely for the benefit of the District and creates no obligation to the District. Upon completion of the construction of the Installations, the Developer shall provide the District with a complete set of"As Built"plans, and a set of reproducible mylar plans together with a certification from the District's licensed engineer certifying that the Installation was constructed in accordance with the Approved Plans. In addition, the Developer shall furnish the District with a set of"As Built"drawings on CD in an AutoCAD format consistent with the version currently being used by the District. 5. REIMBURSEMENT OF EXPENSES. 5.1 The Developer agrees to reimburse the District (or pay directly) for all reasonable engineering, legal costs and administrative fees incurred by the District in preparing, approving and enforcing all aspects of this Agreement, the costs associated with billing and collecting these amounts for the District and the costs of inspection as described in Paragraph 4. 5.2 Statements for costs chargeable to Developer hereunder will be forwarded to Developer and the same shall be paid to the District within 30 days after the billing date. If payment has not been received by the District within 30 days,Developer shall have breached this Agreement and District may institute legal proceedings to collect the amount due and owing. In such proceeding, the District shall be entitled to its costs and reasonable attorney's fees from Developer. Page 3 of 8 6. EASEMENTS. 6.1 The Developer is responsible for obtaining and ensuring dedication to the District all required easements to support the Installations in accordance with the standards, specifications and reasonable directives of the District. Any use of such easements by any third party for waterlines and/or appurtenances prior to the Developer's completion of the Installations will require that such third party pay reimbursement fees to the District, which will be paid to the Developer pursuant to the terms of a mutually acceptable Line Extension, Participation and Reimbursement Agreement to be entered into between the District and the Developer. The Developer shall submit easement locations to the District for approval, which approval shall not be unreasonably withheld, conditioned or delayed. Upon receipt of the easement locations, the District shall have reasonable time (approximately 30 days) to review the easement locations for approval or rejection. If written notice of approval is not given to the Developer within such time period,the easement locations shall be deemed to be rejected;provided,however if the District rejects such easement locations,the District agrees to provide to Developer the reasons for such rejection. Developer shall have the right to resubmit amended easement locations for review. The District may impose reasonable standards for protection of the District.This review process shall continue until the easement locations are approved by the District or until terminated by the Developer. Upon approval, the District and each property owner granting an easement ("Grantor") shall execute a separate agreement; the easement locations shall be attached and incorporated into said agreement as a graphic exhibit and a legal description. Developer shall make no modifications to the approved easement locations without the prior written approval of the ^ District, which approval shall not be unreasonably withheld, conditioned or delayed. 7. CONDITIONS. 7.1 The Developer understands and acknowledges that the District obtains its treated water through a master meter agreement with the Little Thompson Water District (Little Thompson). Therefore, the District's ability to perform the terms of this Agreement is conditioned on the District being able to obtain sufficient treated water from Little Thompson to issue the water taps contemplated in this Agreement. The District received confirmation from Little Thompson dated December 29, 2004 (attached as Exhibit B hereto), that Little Thompson currently has capacity to supply treated water and taps to the District so that the District will be able to perform the terms of this Agreement and the District agrees to use its best efforts to obtain sufficient treated water and taps to serve the Subdivision upon Developer's payment of required fees for such capacity. The Developer understands and acknowledges that capacity for both treatment and delivery must be purchased by the Developer and the charges/fees for those items are, in part, determined by Little Thompson. Any charges/fees imposed on the District by Little Thompson,or District charges/fees will be passed through to the Developer. The Developer agrees that it will pay all such additional charges/fees. 7.2 Notwithstanding anything to the contrary contained herein, Developer's obligations under this Agreement are expressly conditioned upon (a) Developer's acquiring the property Page 4 of 8 described in Exhibit A; and (b) Developer's obtaining the necessary entitlements for the property (including, without limitation, a final plat for the Subdivisions (the"Final Plat")), satisfactory to Developer in its sole discretion to allow for Developer's planned residential development of the property. In the event both conditions precedent in(a)and(b)above are not timely satisfied,then this Agreement shall be deemed void ab initio and the parties shall have no further obligations hereunder. 7.3 The potable water service to be furnished by the District pursuant to this Agreement is conditioned upon the Developer using commercially reasonable efforts to install a brown-water irrigation system to provide irrigation within the Subdivision, provided that Highland Secondary Water Company, LLC, the District, or other similar qualified brown-water provider agrees to provide pressurized irrigation water to the Subdivision and that an adequate amount of water rights (as determined by the District) are transferred to the District to reasonably support such brown-water irrigation system, in addition to the standard District requirements of C-BT transfers to support the domestic water system. The parties understand and agree that Developer shall have the right but not the obligation to install and/or provide its own on-site brown-water irrigation system facilities and in the event that Developer is unable to obtain pressurized irrigation water from Highland Secondary Water Company, LLC, the District or other similar qualified brown-water provider, then the District will require additional infrastructure in order for the District to provide potable water for both domestic and irrigation uses. 7.4 Notwithstanding anything to the contrary in this Agreement, the District's approval of the Installations shall be subject to the District's written confirmation(not to be unreasonably withheld, conditioned or delayed) that the design and/or operation of the Installations are not compromised by the brown-water system. 8. TERM. This Agreement shall be perpetual unless modified by mutual written consent of the parties. 9. LIABILITIES AND INDEMNIFICATION. 9.1 The Developer agrees to indemnify and hold harmless the District from all claims and liability for damage or injury to property or persons arising from or caused directly or indirectly by the Developer's construction of the Installations. 9.2 The Developer shall be responsible for calling the Utility Notification Center of Colorado (UNCC) for locates before construction and repair work is done and shall hold the District harmless for any damages and/or penalties for failing to do so. 9.3 The Developer warrants it will do nothing to adversely affect the existing facilities owned by the District. In the event the Developer breaches this warranty, Developer shall take all actions necessary to repair the existing facilities to their existing or better condition, as determined by the District. Developer shall indemnify and hold the District harmless for all costs, damages, fines and fees, including reasonable attorney's fees, Page 5 of 8 which are incurred by the District as a result of any adverse changes to existing facilities owned by the District which result in the water failing to meet water quality laws or regulations. 10. RECORDATION. Upon Developer's acquiring the property described in Exhibit A, this Agreement shall be recorded at the cost of the Developer and shall be binding on any successors of the Parties. The obligations and benefits of this Agreement shall specifically run with the land described in Exhibit A. The plans and specifications for the Installations may not be recorded because of their size. 11. NOTICES. Any notice required or permitted by this Agreement shall be in writing and shall be deemed to have been sufficiently given for all purposes if sent by certified or registered mail, postage and fees prepaid, addressed to the Party to whom such notice is intended to be given at the address set forth below, or at such other address as has been previously furnished in writing to the other Party or Parties. Such notice shall be deemed to have been given when deposited in the U.S. Mail. DISTRICT: COPY TO: Longs Peak Water District Bernard, Lyons, Gaddis & Kahn 9875 Vermillion Road P.O. Box 978 Longmont, CO 80504 515 Kimbark St. Ann: Barry Dykes Longmont, CO 80501 Telephone: (303) 776-3847 Attn: Dan Bernard Facsimile: (303) 776-0198 Facsimile: (303) 413- 1003 DEVELOPER: COPY TO: Melody Homes, Inc. Faegre & Benson LLP 11031 Sheridan Blvd. 1900 Fifteenth Street Westminster, Colorado 80020 Boulder, CO 80302 Attn: Randy Havens Attn: David L. Kuosman, Esq. Attn: Janice Kelly, Esq. Facsimile: (303) 447-7800 Telephone: (303) 466-1831 Facsimile: (303) 438-7664 12. WAIVER OF BREACH. The waiver by any Party to this Agreement or a breach of any term or provision of this Agreement shall not be construed as a waiver of any subsequent breach by any Party. 13. EXHIBITS. All exhibits referred to in this Agreement are, by reference, incorporated into this Agreement for all purposes. Page 6 of 8 14. ATTORNEYS' FEES. If any Party breaches this Agreement, the non-prevailing Party shall pay all of the prevailing Party's reasonable attorneys' fees and costs in enforcing this Agreement through litigation, arbitration or mediation. 15. ALTERNATIVE DISPUTE RESOLUTION. In the event of any dispute or claim arising under or related to this contract, the Parties shall use their best efforts to settle such dispute or claim through good faith negotiations with each other. If such dispute or claim is not settled through negotiations within 30 days after the earliest date on which one party notifies the other party in writing of its desire to attempt to resolve such dispute or claim through negotiations, then the Parties agree to attempt in good faith to settle such dispute or claim by mediation conducted under the auspices of the Judicial Arbiter Group (JAG) of Denver, Colorado or, if JAG is no longer in existence, or if the Parties agree otherwise, then under the auspices of a recognized established mediation service within the State of Colorado. Such mediation shall be conducted within 60 days following either party's written request therefor. If such dispute or claim is not settled through mediation, then either party may initiate a civil action in the District Court for Weld County. 16. BINDING EFFECT.This Agreement shall inure to the benefit of, and be binding upon, the Parties, and their respective legal representatives, successors and assigns. 17. ASSIGNMENT. This Agreement is assignable, provided written notice is given to the other Party of the assignment. The District must approve any assignments from Developer to a third party that does not have an ownership interest in the property described in Exhibit A. DATED: 4( `7-.005 LONGS PEAK WATER DISTRICT, MELODY HO ES, INC., A Delaware .s ,orations d/b/a ` , �' �, D. O' I MELODY SERIES By: " " By: President Name: Qv--1 l Title: /. 1' ir/� ; Page 7 of 8 STATE OF COLORADO ) ) ss. COUNTY OF BOULDER ) The foregoing was acknowledged before me this 6 day of N2[1. , 2005 by llw,(o3 as'P Det o-f to ,SoaaC , of the Longs Peak Water District. My commission expires:7//Y`/ Witness my hand and official seal. Notary Public STATE OF COLORADO ) ) ss. COUNTY OF4/„A een ) The foregoing was acknowledged before me this 1]"-/ day of n h; 4 ,,2005 by pr,. Ln "cam zr� as J1nu�I 0 r o AAid;'ot Melody Homes, Inc., a Delaware corporation d/b/a D.R. Horton—Melody Series. My commission expires: -IS—f! 5 Witness my hand and official seal. • c h e f O /�7�OTA9 �11 ', NotaPublic Jo lite% Bt. My Commission Expires 12/15/2C05 Page 8 of 8 EXHIBIT A LEGAL DESCRIPTION ADLER ESTATES PARCEL 11. A PORTION OF THE SOUTHEAST QUARTER OF SECTION 33,TOWNSHIP 3 NORTH,RANGE 68 WEST OF THE SIXTH PRINCIPAL MERIDIAN,COUNTY OF WELD,STATE OF COLORADO, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEAST CORNER OF SECTION 33,WHENCE THE EAST ONE-QUARTER CORNER OF SECTION 33 BEARS NORTH 00°19'30"WEST 2651.44 FEET; THENCE ALONG THE EAST LINE OF THE SOUTHEAST QUARTER OF SECTION 33 NORTH 00°19'30"WEST 412.64 FEET TO THE POINT OF BEGINNING;° THENCE LEAVING SAID EAST LINE SOUTH 47°14'44"WEST 231.97 FEET;THENCE NORTH 54°03'07"WEST 574.20 FEET;THENCE NORTH 41°55'17"WEST 627.20 FEET;THENCE NORTH 35°57'17"WEST 588.20 FEET;THENCE NORTH 62°25'37"WEST 191.60 FEET; THENCE NORTH 19°05'27"WEST 1058.25 FEET TO A POINT ON THE NORTH LINE OF THE SOUTHEAST QUARTER OF SECTION 33;THENCE ALONG SAID NORTH LINE NORTH 89°10'08"EAST 1903.03 FEET TO THE EAST ONE-QUARTER CORNER;THENCE ALONG THE EAST LINE OF THE SOUTHEAST QUARTER OF SECTION 33 SOUTH 00°19'30"EAST 2238.80 FEET TO THE POINT OF BEGINNING. CONTAINING 68.579 ACRES,MORE OR LESS. PARCEL 2 THE EASTERLY 120 ACRES OF THE NORTHEAST QUARTER OF SECTION 33,TOWNSHIP 3 NORTH,RANGE 68 WEST OF THE SIXTH PRINCIPAL MERIDIAN,COUNTY OF WELD,STATE OF COLORADO,BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST QUARTER OF SECTION 33,WHENCE THE NORTH ONE-QUARTER CORNER OF SAID SECTION 33 BEARS SOUTH 89°03'55"WEST 2670.95 FEET;THENCE ALONG THE EAST LINE OF THE NORTHEAST QUARTER OF SECTION 33 SOUTH 00°24'50"EAST 2659.16 FEET TO THE EAST ONE-QUARTER CORNER OF SAID SECTION 33;THENCE ALONG THE SOUTH LINE OF THE NORTHEAST QUARTER OF SECTION 33 THENCE SOUTH 89°10'08"WEST 1967.09 FEET;THENCE LEAVING SAID SOUTH LINE NORTH 00°24'50"WEST 2655.60 FEET TO A POINT ON THE NORTH LINE OF THE NORTHEAST QUARTER OF SECTION 33;THENCE ALONG SAID NORTH LINE NORTH 89°03'55"EAST 1967.12 FEET TO THE NORTHEAST CORNER OF SECTION 33 AND THE POINT OF BEGINNING. CONTAINING 120.000 ACRES,MORE OR LESS. PARCEL 3 A PORTION OF THE SOUTHWEST QUARTER OF SECTION 34,TOWNSHIP 3 NORTH,RANGE 68 WEST OF THE SIXTH PRINCIPAL MERIDIAN,COUNTY OF WELD,STATE OF COLORADO, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SECTION 34,WHENCE THE WEST ONE-QUARTER CORNER OF SECTION 34 BEARS NORTH 00°19'30"WEST 2651.44 FEET; THENCE ALONG THE WEST LINE OF THE SOUTHWEST QUARTER OF SECTION 34 NORTH 00°19'30"WEST 2651.44 FEET TO SAID WEST ONE-QUARTER CORNER;THENCE ALONG THE NORTH LINE OF THE SOUTHWEST QUARTER OF SECTION 34 NORTH 89°07'20"EAST 1756.66 FEET;THENCE LEAVING SAID NORTH LINE SOUTH 01°04'15"EAST 2033.10 FEET;THENCE SOUTH 28°18'59"EAST 737.00 FEET TO A POINT ON THE SOUTH LINE OF THE SOUTHWEST QUARTER OF SECTION 34;THENCE ALONG SAID SOUTH LINE NORTH 89°54'46"WEST 2129.00 FEET TO THE SOUTHWEST CORNER OF SECTION 34 AND THE POINT OF BEGINNING. CONTAINING 111.102 ACRES,MORE OR LESS. 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I orao rum oa n'�[a20 22A tl0 O mH*.2•.011.8 �\•0 "--- —ifr1.47L'Y"(�- IrD QAE1YIgA0r • --- ~`•~ 1 I ..... m aw.. .worn.am. ••••N•• •�rC✓�tllre aa® Paa aoa wa..a • _ ' IVY Au,4 amei.n1ar 4Aan'1aMown a nom.d on n® OR Ca_ O 1 �nlL m�A �C n A�ei22 a crra r.�..s,o. 11a 102.. - — 4=522 nwr' /�/:�=� Exhibit B LITTLE THOMPSON WATER DISTRICT DIRECTORS - Tckplwne(970)532.709fi .rn tea.Midst. December 29,2004 R}d.",u Xwa..con. mato,wtoo 'thud.I.Wew data Canrt rise Alm WO MANAGER Barry Dykes Longs Peak Water District 9875 Vermillion Road Longmont,CO 80504 Dear Barry: This letter is in response to your request for more Information relating to the proposed master meter water connection along the LTWD 24"waterline'near WCR1 and WCR 38. We have spent considerable time evaluating the impact or your request on the District facilities. We found that we are able to meet your capacity needs and schedule. We are currently expanding our shared water treatment capacity to 50 million gallons per day. We currently have a 24"diameter water line located along the alignment of WCR 38,that is looped to our new 42"diameter transmission line at 1-25, with additional capacity available. We can commit to provide service based on your proposed schedule as detailed below Requested capacity proposed schedule Capacity cost (t $I950.ONgpm) Up to 300gpm capacity summer/fall 2005 $ 585,000.00 Up to 700gpm capacity summer 2006 $1,365,000.00 Up to 1,200gpm capacity summer/fall 2007 $ 2,340,000.00 The installation of a new master meter vault would be required and it would need to include electric service and telemetry for little Thompson Water District The master meter vault should be located at the District boundary or at your tank site if your planned tank is within the boundary of Little Thompson Water District.The writer line from our existing 24"line to the master meter vault will need to be a minimum 18" diameter line to deliver your requested peak flows. The water line should be owned and operated by Little Thompson Water District allowing Little Thompson Water District to provide service off of the line.This would also work to minimize the duplication of water lines through the District The location of the connection to the 24"line would need to be located along the existing 24"line between WCR 1 and WCR 5. The purchase of the requested capacity would follow your proposed schedule above and the capacity would be paid for in the blocks you proposed. The cost of capacity would be on a peak flow, gallon per minute basis.The current capacity cost is$1,950.00 per gallon per minute based on our 2005 budget.This capacity cost of$1,950.00 per gpm will be adjusted annually to reflect the current Little Thompson Water District budget. Exhibit B You will be required to transfer 115%of the consumption measured through the meter as is done at the existing master meters.The commodity charge for water metered will be-same charge as all of the master meters to Longs'Peak Water District The commodity charge was$.66 per 1,000 gallons and has just increased to$.73 per 1,000 gallons. All improvements to District facilities required to provide service will be your financial responsibility in accordance with the District Rules and Regulations.All improvements must conform to District Specifications. The design,installation and total cost of the project will be your responsibility. We do have some drawings of past master meters that can be used to begin the design of a new master meter. If you have questions,please contact me. Regards, Michael T.Cook District Engineer RESIDENTIAL SUBDIVISION SERVICE AGREEMENT I. PARTIES. The parties to this Agreement are the ST. VRAIN SANITATION DISTRICT ("District") and Melody Homes, Inc., a Delaware corporation d/b/a D.R. Horton - Melody Series ("Applicant"). 2. RECITALS AND PURPOSE. The Applicant has a contract to acquire certain property described on Exhibit A to this Agreement. The District is a special district, which provides sanitary sewer service to its customers for which monthly service charges are made. The Applicant desires that the District provide sanitary service within the boundaries of the property described below. The District agrees to supply such service. The purpose of this Agreement is to set forth the terms and conditions concerning the purchase of service connections and the District's providing such service to Applicant's property. 3. LEGAL DESCRIPTION OF SUBDIVISION. The Applicant has a contract to acquire the parcel of real property known as Adler Estates, the legal description of which is set forth on the attached Exhibit A. At such time as the Applicant obtains a final subdivision plat of the property (the "final Plat"), Applicant agrees to furnish a reproducible copy of the subdivision plat to the District and said plat is expressly incorporated in this Agreement by reference. Any change or alteration in the area, size, shape, density, usages, requirements, number of service connections or timing of development of the Subdivision which may affect the issuance of taps pursuant to this Agreement shall first require the advance written consent of the District. 4. CONDITIONAL COMMITMENT TO SELL/PURCHASE SANITARY SEWER SERVICE 4.1 Subject to the subsections (a) and (b) below, Applicant hereby makes application for 1200 single-family residential equivalent sanitary service connections ("connections") to the District's sanitary sewer system for service within the real property described on Exhibit A. District hereby conditionally commits to sell, and Applicant hereby conditionally commits to purchase, such total number of taps at the then current plant investment fee per connection, and other applicable fees and charges pursuant to applicable District Rules and Regulations for use solely within the boundaries of the property described on Exhibit A, upon the terms and conditions set forth in this Agreement. (a) Notwithstanding any to the contrary contained herein, Applicant's obligations under the Residential Subdivision Service Agreement are expressly conditioned upon (i) Applicants acquiring the property; and (ii) Applicant's obtaining the necessary entitlements for the property ORIGINAL (including without limitation, the Final Plat), satisfactory to Applicant in its sole discretion to allow for Applicant's planned residential development of the property. (b) In the event both conditions precedent in (i) and (ii) above are not timely satisfied, then the Residential Subdivision Service Agreement shall be deemed void ab initio and the parties shall have no further obligations hereunder. 4.2 Applicant acknowledges and agrees that the District's conditional commitment is subject to the availability of such connections at the time the Applicant purchases such conditionally committed connections in full by payment of the total amount of the plant investment fee and other applicable fees and charges for each connection purchased, up to the maximum specified above. The District represents and warrants that as of the date of this Agreement, it has plant capacity and sufficient connections to serve 1200 single family residences on the property described on Exhibit A. 4.3 District makes no warranties, promises or representations that such conditionally committed connections will be available for purchase or reservation due to limitations on its treatment capacity as determined by its plant capacity, collection system capacity, discharge permit, and any governmental regulations or limitations. Applicant acknowledges and agrees that it is solely responsible for inquiring as to the availability of connections, and that the District is under no affirmative obligation to inform Applicant of any other sales or reservations, commitments, or any other events, which may limit the District's ability to sell the conditionally committed connections. Applicant assumes all risks of unavailability by not purchasing said conditionally committed connections. 5. TERM. This Agreement shall continue in full force and effect for a period of two (2) years after execution unless extended by mutual agreement by the parties in writing. 6. ACTIVATION OF TAP. All purchased service connections (taps) shall be deemed activated and subject to the District's minimum service charges pursuant to its Rules and Regulations upon payment to the District of plant investment fees and all other fees due for connection to District facilities. 7. DESIGN SPECIFICATIONS. It is agreed, as a condition precedent to service, that all sewer lines and appurtenant facilities required to provide sanitary sewer service within the boundaries of Applicant's property as described on Exhibit A and all necessary trunk lines, outfall lines and connecting lines and appurtenant facilities necessary to connect with the lines of the District as presently engineered and installed, shall be installed at Applicant's sole cost and expense and shall be in accordance with design and specifications as fixed by the District. Applicant agrees that the actual installation and construction shall be subject to the general, as opposed to specific, supervision and to inspection by the District and all related costs of engineering study, review, approval and inspection (including the District's cost and expenses of obtaining necessary easements if public rights-of-way are not available or if available, not feasible to utilize) shall be at the cost of and paid by Applicant. Applicant further agrees to give the District, through the District's Engineer, adequate notice, prior to commencement of construction of the date when such construction shall begin. BLDRI:50218803.02 2 8. EASEMENTS. Applicant shall furnish, at Applicant's expense, any and all applicable easements and rights-of- way within the subdivision (if not dedicated to the public use on the recorded plat), consents, permits, licenses and other agreements. 9. TRANSFER AND CONVEYENCE OF LINES. Upon completion, approval and acceptance of the work by the District through the issuance of the District's Certificate of Acceptance, this Agreement shall operate as a conveyance, transfer and assignment by the Applicant of all Applicant's interest and ownership in said lines and personal property and associated equipment and appurtenances to the District, free and clear of all liens and encumbrances, and shall warrant that the work has been done in accordance with the laws of the State of Colorado, and all other governmental subdivisions, agencies and units and in accordance with the design standards and requirements of the District. Applicant shall guarantee the lines as installed against faulty workmanship and materials to the District for a period of two (2) years and shall, during said period, pay any and all costs and expenses of repair or replacement of said lines. Upon completion, approval, acceptance, conveyance and transfer of lines and facilities to the District, the District shall assume all responsibility thereafter, and all costs and expenses for operation and maintenance except as to the above two (2) year guarantee. Completion of construction, inspection, approval and acceptance by the District, transfer of lines and facilities to the District, payment of all construction costs and expenses required to be done and paid by the Applicant are conditions precedent to the obligation of the District to furnish and provide sewer service. 10. EXTENDED AND OVERSIZED LINES. Applicant shall be required to pay for installation of a off site trunk line extension to connect Applicant's sewer infrastructure to District facilities. District agrees to execute a Line Extension Agreement reasonably acceptable to Applicant with the Applicant and to reimburse the Applicant for the cost of such trunk line extension according to the terms of the Line Extension Agreement. District further agrees to reimburse the Applicant Line extension fee's collected pursuant to the Line extension Agreement at this rate for a period of fifteen (15) years from and after the date of this Agreement, but not thereafter, to pay to Applicant for its cost but, in no event, more than the total cost of such extending or oversizing paid by the Applicant and agreed to by District upon presentation of Applicant's cost data. If the District requires that trunk lines and facilities be oversized to permit the use of these lines by the District to serve additional lands and property in addition to the property of the Applicant, District agrees to reimburse the cost of such extending or oversizing at the then current rate of oversizing reimbursement as stated in the District's Rules and Regulations. 11. DISTRICT REGULATIONS. All service provided under this Agreement shall be subject to the monthly service charges and all bylaws, rules and regulations of the District, copies of which have been provided and are available at the District's web site www stsan. corn, to Applicant, which may be in force from time to time. 12. GOVERNMENTAL REGULATIONS. All provisions of this Agreement to the contrary notwithstanding, the obligation of the District to furnish sewer service under this Agreement, BLDR I:50218803 O2 3 is limited by and subject to all orders, requirements and limitations which may be imposed by federal, state, county or any governmental or regulatory body or agency having jurisdiction and control over the District and/or the operation of its sanitary system and treatment facilities, or discharge permit for discharge into state waters_ 13. DOCUMENTS TO BE FURNISHED. Upon execution of this Agreement, or at such time or times as may be reasonably requested by District, Applicant agrees to furnish District the following: 13.1 A topographical survey of the property described in this Agreement; and 13.2 Final Subdivision plat approved by appropriate regulatory boards, commissions, or agencies, together with requirements and conditions fixed by such entities for development and evidence of the Applicant's compliance or plan for compliance; and 13.3 In the event the initial area to be served under this Agreement is not the entire project of Applicant as hereinabove described, Applicant shall furnish preliminary plats and plans as developed by the Applicant with reference to the future total development of the entire property so that prior to issuance of taps and initial installation of lines and facilities the District may study and consider the total development under this Agreement as it may relate to future demands upon the District for service within the entire development and the effect this may have, presently and in the future, on the District's entire system and its obligations in regard thereto. It is understood and agreed that a request for information as to future plans and developments of the Applicant and the consideration of such plans by the District in connection with its obligation to service Applicant's above described land under this Agreement shall in no wise be construed as an agreement or obligation of District to serve such other lands or areas proposed by the Applicant for such future development. All information required to be furnished to District by Applicant shall be provided at Applicant's expense. 13.4 "As-built" mylar maps certified by Applicant's engineer depicting all lines, manholes, etc. constructed, installed, and transferred pursuant to Paragraph 9 above. One copy full size the other copy one-half(1/2) size. 13.5 "As-built" AutoCad file certified by Applicant's engineer depicting all parcels, subdivision boundaries, non-sewer utilities, sewer lines, manholes, etc. in plan and profile, constructed, installed, and transferred pursuant to Paragraph 9 above. 13.6 A table of positions of each manhole listing latitude, longitude, and invert elevation. 13.7 The bid tabulation of the installation costs for sewer line elements. BLDRI:50218803.02 4 14. DELAYS. Any delays in, or failure of, performance by any party of his or its obligations under this Agreement shall be excused if such delays or failure are a result of acts of God and nature, fires, floods, strikes, labor disputes, accidents, regulations or orders of civil or military authorities, restrictions or limitations contained in any initiative approved by the voters, shortages of labor materials, or other causes, similar or dissimilar, which are beyond the control of such party, including any orders, requirements or limitations described in paragraph 13 above. 15. TIME OF ESSENCE. Time is expressly stated to be the essence of this Agreement and any failure to perform the covenants and agreements herein agreed to be performed strictly at the times designated shall operate as an immediate termination of this Agreement. 16. PARAGRAPH CAPTIONS. The captions of the paragraphs are set forth only for convenience and reference, and are not intended in any way to define, limit, or describe the scope or intent of this Agreement. 17. ADDITIONAL DOCUMENTS OR ACTION. The parties agree to execute any additional documents and to take any additional action necessary to carry out this Agreement. 18. INTEGRATION AND AMENDMENT. This Agreement represents the entire agreement between the parties and there are no oral or collateral agreements or understandings. This Agreement may be amended only by an instrument in writing signed by the parties. If any provision of this Agreement is held invalid or unenforceable, no other provision shall be affected by such holding, and all of the remaining provisions of this Agreement shall continue in full force and effect. 19. ARBITRATION. Pursuant to Rule 109 of the Colorado Rules of Civil Procedure, all controversies, claims, or disputes arising out of or relating to this Agreement, or any alleged breach thereof, shall be determined by arbitration in Longmont, Colorado in accordance with the rules of the American Arbitration Association then in effect. The arbitration award shall be binding upon the parties. The prevailing party may file such award with the Clerk of the District Court of Weld County who shall enter judgment thereon. If such award requires the payment of money, execution shall issue on such judgment. The expenses of witnesses for either side shall be paid by the party producing such witnesses. The cost of the stenographic record, if any is made, and all transcripts thereof, shall be prorated equally among all parties ordering copies thereof unless they shall agree otherwise, and shall be paid for by such parties directly to the reporting agency. All other expenses of the arbitration; including the expenses of the arbitrator, and the expenses of any witness or the cost of any proofs produced at the direct request of the arbitrator, shall be shared equally by the parties, unless they agree otherwise or unless the arbitrator in his award assesses such expenses against a particular party or parties. 20. ATTORNEYS' FEES. If any party breaches this Agreement, the breaching party shall pay all of the non-breaching party's reasonable attorneys' fees and costs in enforcing this Agreement whether or not legal proceedings are instituted. BLDR I:50218803.02 5 21. GOVERNING LAW. This Agreement shall be governed by the laws of the State of Colorado. 22. NOTICES. Any notice required or permitted by this Agreement shall be in writing and shall be deemed to have been sufficiently given for all purposes if sent by certified or registered mail, postage and fees prepaid, addressed to the party to whom such notice is intended to be given at the address set forth on the signature page below, or at such other address as has been previously furnished in writing to the other party or parties. Such notice shall be deemed to have been given when deposited in the U.S. Mail. 23. BINDING EFFECT. This Agreement shall inure to the benefit of, and be binding upon, the parties, and their respective legal representatives, successors, and assigns as owners of the land described in Exhibit A. Any deposits which are made pursuant to the District's reservation of connection policy and approved agreements shall be transferred to the Applicant's assignee. 24. GOVERNMENTAL IMMUNITY. Nothing in this Agreement is intended, or shall be construed as, a waiver of any immunities provided to the District by statute or common law, including without limitation the Colorado Governmental Immunity Act, §24-10-101, et. seq., C.R.S. DATED \ 1S-0 LI ST. VRAIN SANITATION DISTRICT By AN'-- President 11307 Business Park Circle Longmont, CO 80504 ATT ED. District Manager STATE OF COLORADO ) ) ss. COUNTY OF WELD The foregoing instrumen��yt was acknowledged before me this IS a of bar 200 L, bytkpal tat ek{• (5ca.o+ as President, and the Manager of St. Vrain Sanitation District. Witness my hand and official seal. BLDRI.50218803.02 6 Notary ublic iii,. `-yY r... Ct APPLICANT: ---27 ,A.---. ,--. ,i zo i:6k46ET'.'I S.V Ck'TuPGUA t MELODY HOMES, INC., a Delaware •.• �pnO corporation d/b/a D.R. Horton — Melody OFCOIO Series Address: 1 1-031 She idan Blvd., Suite A Westgli} t , CO 80020-3258 By � ' ��i Title 1/4 _ � ` � �� � �,,� � TTFyST ) anager STATE OF COLORADO ) ) ss. COUNTY OF, ✓ -/ ,;vt ) / i t{ The foregoing inst ent was acknowledged before me this J day of2,,-1 , 2005 , by 1 )C, n,..vu , \ C±)lt;-,-, as IA I-i . ,/;---,--1 of Melody Homes, Inc., a Delaware corporation d/b/a D.R. Horton—Melody Series. Witness my hand and official seal My commission expires: /,2 -/3--r -s- . -at).1. HF99y1 I ,tQtp+�TA9 F �� c c_.,4. ti{!( ) i i s?7.-, r' s c- , : i. Notary Public • c i prveedd As To Form: st i9>;�VB LAG•QO� / o%•,%%%OF COI-.....'0R', �� 9i� F/Gf / My Commission Exibes12115/2005 istrictLegal Counse BLDR 1:50218803 O5 EXHIBIT A LEGAL DESCRIPTION ADLER ESTATES PARCEL 1 A PORTION OF THE SOUTHEAST QUARTER OF SECTION 33,TOWNSHIP 3 NORTH,RANGE 68 WEST OF THE SIXTH PRINCIPAL MERIDIAN,COUNTY OF WELD,STATE OF COLORADO, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEAST CORNER OF SECTION 33,WHENCE THE EAST ONE-QUARTER CORNER OF SECTION 33 BEARS NORTH 00°19'30"WEST 2651.44 FEET; THENCE ALONG THE EAST LINE OF THE SOUTHEAST QUARTER OF SECTION 33 NORTH 00°19'30"WEST 412.64 FEET TO THE POINT OF BEGINNING; THENCE LEAVING SAID EAST LINE SOUTH 47°14'44"WEST 231.97 FEET;THENCE NORTH 54°03'07"WEST 574.20 FEET;THENCE NORTH 41°55'17"WEST 627.20 FEET;THENCE NORTH 35°57'17"WEST 588.20 FEET;THENCE NORTH 62°25'37"WEST 191.60 FEET; THENCE NORTH 19°05'27"WEST 1058.25 FEET TO A POINT ON THE NORTH LINE OF THE SOUTHEAST QUARTER OF SECTION 33;THENCE ALONG SAID NORTH LINE NORTH 89°10'08"EAST 1903.03 FEET TO THE EAST ONE-QUARTER CORNER;THENCE ALONG THE EAST LINE OF THE SOUTHEAST QUARTER OF SECTION 33 SOUTH 00°19'30"EAST 2238.80 FEET TO THE POINT OF BEGINNING. CONTAINING 68.579 ACRES,MORE OR LESS. PARCEL 2 THE EASTERLY 120 ACRES OF THE NORTHEAST QUARTER OF SECTION 33,TOWNSHIP 3 NORTH,RANGE 68 WEST OF THE SIXTH PRINCIPAL MERIDIAN,COUNTY OF WELD,STATE OF COLORADO,BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST QUARTER OF SECTION 33,WHENCE THE NORTH ONE-QUARTER CORNER OF SAID SECTION 33 BEARS SOUTH 89°03'55"WEST 2670.95 FEET;THENCE ALONG THE EAST LINE OF THE NORTHEAST QUARTER OF SECTION 33 SOUTH 00°24'50"EAST 2659.16 FEET TO THE EAST ONE-QUARTER CORNER OF SAID SECTION 33;THENCE ALONG THE SOUTH LINE OF THE NORTHEAST QUARTER OF SECTION 33 THENCE SOUTH 89°10'08"WEST 1967.09 FEET;THENCE LEAVING SAID SOUTH LINE NORTH 00°24'50"WEST 2655.60 FEET TO A POINT ON THE NORTH LINE OF THE NORTHEAST QUARTER OF SECTION 33;THENCE ALONG SAID NORTH LINE NORTH 89°03'55"EAST 1967.12 FEET TO THE NORTHEAST CORNER OF SECTION 33 AND THE POINT OF BEGINNING. CONTAINING 120.000 ACRES,MORE OR LESS. PARCEL 3 A PORTION OF THE SOUTHWEST QUARTER OF SECTION 34,TOWNSHIP 3 NORTH,RANGE 68 WEST OF THE SIXTH PRINCIPAL MERIDIAN,COUNTY OF WELD,STATE OF COLORADO, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SECTION 34,WHENCE THE WEST ONE-QUARTER CORNER OF SECTION 34 BEARS NORTH 00°19'30"WEST 2651.44 FEET; THENCE ALONG THE WEST LINE OF THE SOUTHWEST QUARTER OF SECTION 34 NORTH 00°19'30"WEST 2651.44 FEET TO SAID WEST ONE-QUARTER CORNER;THENCE ALONG THE NORTH LINE OF THE SOUTHWEST QUARTER OF SECTION 34 NORTH 89°07'20"EAST 1756.66 FEET;THENCE LEAVING SAID NORTH LINE SOUTH 01°04'15"EAST 2033.10 FEET;THENCE SOUTH 28°18'59"EAST 737.00 FEET TO A POINT ON THE SOUTH LINE OF THE SOUTHWEST QUARTER OF SECTION 34;THENCE ALONG SAID SOUTH LINE NORTH 89°54'46"WEST 2129.00 FEET TO THE SOUTHWEST CORNER OF SECTION 34 �.. AND THE POINT OF BEGINNING. CONTAINING 111.102 ACRES,MORE OR LESS. H:\0068_067\Engineering\Offsite Sanitary\Adler Exhibit A LEGAL DESCRIPTION.doc Tetra Tech RMC 8/23/04 Hello