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HomeMy WebLinkAbout20040809Application.pdfORIGINAL Dean J. Miller (ISB No. 1968) McDevitt & Miller LLP 420 West Bannock Street O. Box2564-83701 Boise, Idaho 83702 Tel: 208-343-7500; Fax: 208-336-6912 rAt- ;-, .... t ~lr-~0Li r..d it.l~, f""- ~w~....i 20fJIU1 UG - 9 At'f 9: , .o , ',.. . tiT Ie; T i ESC O/1i-\/~SION IN THE MATTER OF THE APPLICATION OF UNITED WATER IDAHO INC., FOR AN AMENDMENT TO ITS CER TIFI C ATE OF PUBLIC CONVENIENCE AND NECESSITY NO. 142 AND FOR AN ACCOUNTING ORDER. BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION Case No. UWI - W -04- (j APPLICATION AND REQUEST FOR MODIFIED PROCEDURE COMES NOW United Water Idaho Inc. , (" United" , " the Company ) pursuant to Idaho Code Section 61-526 and IPUCRP 112 and 201 in support of this Application respectfully shows as follows to wit: Applicant is a public utility water corporation within the meaning of the Idaho Public Utility Law, is duly organized and existing under the laws of the State of Idaho and engaged in conducting a general water business in and about Boise City, Ada County, Idaho and in Canyon County, having its principal office and place of business at 8248 West Victory Road O. Box 190420 , Boise, Idaho 83719-0420. II. Communications in reference to this application should be addressed to: Gregory P. Wyatt UNITED WATER IDAHO INC. O. Box 190420 Boise, Idaho 83719-0420 208/362- 7325 208/362- 7069 (fax) Dean J. Miller, Esq. McDEVITT & MILLER LLP 420 West Bannock Street O. Box 2564-83701 Boise, Idaho 83702 208/343- 7500 208/336-6912 (fax) APPLICATION AND REQUEST FOR MODIFIED PROCEUDRE- III. A certified copy of Applicant's Articles of Incorporation , together with all amendments to date, is on file with the Commission. IV. For over 100 years, Applicant, together with its predecessors in interest, has owned and operated and now owns and operates an extensive and integrated water system in Boise City, Idaho, and in certain territory within Ada County in the vicinity of, but outside the present corporate limits of said Boise City, and renders general water service within such territory and to the inhabitants thereof. Applicant also provides service to isolated subdivisions in Canyon County, Idaho. In Order No. 27976, dated March 29 1999, the Commission approved an expansion of United's Certificate of Public Convenience and Necessity to provide service to the Carriage Hill subdivision ("Carriage Hill") in Canyon County, Idaho , near the City ofNampa ("Nampa ). The expansion was pursuant to a Residential or Multiple Family Housing Non-Contiguous Water System Agreement dated November 20 1998. VI. On or about December 7, 1998 Carriage Hill, doing business as Carriage Hill, L., an Idaho limited liability company, executed a Design-Build Promissory Note, a true copy of which is attached hereto as Exhibit A, in favor of United Water Works Inc., a Delaware corporation, in the original principal amount of $350 000.00. The purpose of said note was to provide funds to assist Carriage Hill in the construction of the water system within the subdivision. APPLICATION AND REQUEST FOR MODIFIED PROCEUDRE- VII. On or about August 15 2003 the City ofNampa indicated its desire to enter into negotiations with United and Carriage Hill in connection with the ownership, operation and maintenance of the domestic water system and the connection of the system to Nampa municipal water system. VIII. On August 25 2003 Carriage Hill requested a waiver from the Idaho Department of Environmental Quality to allow an additional 10 lots in the subdivsion to be connected to the water system prior to the installation of a second source of supply, which second source of supply will take the form of connection to Nampa s municipal water system. As of the date of this Application approximately 30 lots in the subdivision have been connected to the domestic water system. IX. Thereafter, Nampa and Carriage Hill entered into that Certain Annexation and LID Agreement, a true copy of which is attached hereto as Exhibit B. Contemporaneously therewith United and Nampa executed a Purchase Agreement (Agreement) whereby United agreed to sell and Nampa agreed to buy the Carriage Hill domestic water system. A true copy of the Agreement is attached hereto as Exhibit C. Thereafter, Nampa adopted a Resolution declaring its intent to acquire the water system and to create Local Improvement District No 140 for Nampa, Idaho. A true copy of Resolution No. 20-2004 is attached hereto as Exhibit D. Pursuant to Idaho Code 50-1710 it is anticipated that Nampa will adopt an ordinance creating the local improvement district on or after August , 2004. This Application is contingent upon the adoption of said ordinance. APPLICATION AND REQUEST FOR MODIFIED PROCEUDRE- XI. Acquisition of the Carriage Hill domestic water system by N ampa is consistent with the public convenience and necessity because: Nampa has adequate source of supply and operational capability to provide safe and reliable water service to the subdivision; Connection ofNampa s distribution system to the Carriage Hill domestic water system will provide a second source of supply as required by DEQ rules thus insuring reliable water supply to the subdivision and permitting further expansion of the subdivision; and The rates charged by N ampa for domestic water service are lower than the rates charged by United, and customers within the subdivision will therefore experience a decrease in the cost of domestic water service. XII. Pursuant to the Agreement the purchase price for the sale of the domestic water system is $375 000. Subject to final adjustment at closing an amount equal to approximately $339 000 shall be paid to United Water Works to discharge the accrued interest and principal owing pursuant to the Build-Design Promissory Note, above referenced. An amount equal to approximately $36 000 shall be paid to United. XIII. Exhibit E, attached hereto, sets forth United's proposedjoumal entries to account for the approximately $36 000 to be received by United at closing. This accounting proposal is consistent with established regulatory accounting principles, and United requests that the Commission approve it. APPLICATION AND REQUEST FOR MODIFIED PROCEUDRE-4 XIV. As evidenced by letters from N ampa and Carriage Hill, attached hereto as Exhibits F and , Nampa and Carriage Hill have reviewed this Application and support the relief requested. XV. Contemporaneously with the filing of this Application, United is providing notice to the Carriage Hills customers of the intended sale. A true copy of the customer notification is attached hereto as Exhibit H. Request for Modified Procedure United does not believe a hearing is required to consider the issues herein presented and pursuant to IPUCRP 201 requests that this matter be processed by modified procedure. WHEREFORE, United respectfully requests that the Commission enter its orders: 1. Determining that this matter be processed pursuant to Modified Procedure; 2. Approving the modification of United's Certificate of Public Convenience and Necessity by eliminating the Carriage Hill subdivision therefrom; 3. Approving the accounting proposal set forth above; and 4. Granting such other relief as is appropriate in the circumstance. DATED this day of August, 2004. By: ~ Dean J. iller Attorney for Applicant APPLICATION AND REQUEST FOR MODIFIED PROCEUDRE- EXHIBIT A f ;:"0. . DESIGN-BUILD PROMISSORY NOTE $350,000.December 7, 1998 FOR VALUE RECEIVED , the undersigned, Carriage Hill, L.L.C., an Idaho limited liability company Maker ) promises to pay to the order of United Waterworks Inc., a Delaware corporation ("United Water") at 2000 First State Boulevard , Wilmington , Delaware 19804, or at such other place as holder may from time to time in writing designate, the principal sum of Three Hundred Fifty Thousand and no/100 Dollars ($350 000.00), in lawful money of the United States of America, and to pay interest on the unpaid balance thereof from time to time outstanding at the rate of Eight and one-quarter percent (8.25%) per annum. The principal amount of this note and all interest payable hereunder with respect thereto shall be paid over a term of ten (10) years, in forty (40) equal quarterly installments, due and payable on the fifth day of February, May, August and November each year commencing with the fifth day of February, 2000 and continuing with respect to each and every succeeding quarter through November 5, 2010 (the Maturity Date ) of Twelve Thousand Nine Hundred Sixty-Seven and 27/100 Dollars ($12 967.27) each with the final payment of all outstanding principal and accrued but unpaid interest on the Maturity Date. There shall be added to each and every payment of principal and/or interest received by the holder more than ten (10) days after the due date thereof a late charge of three percent (3%) of the amount so overdue, for the purpose of defraying the administrative expense incident to handling such delinquent payments. The undersigned acknowledges that the exact amount of such administrative expense of holder would be difficult to calculate and that such late charge represents a reasonable estimate of a fair average compensation for the loss that may be sustained by the holder due to the failure of the undersigned to make timely payments. Such late charge shall be paid without prejudice to the right of the holder to collect any other amounts provided to be paid or to declare a default hereunder. The undersigned waives presentment and demand for payment, notice of intent to demand or accelerated maturity, notice of demand or acceleration of maturity, protest or notice of protest and nonpayment, bringing of suit and diligence in taking any action to collect any sums owing hereunder or in proceeding against any of the rights and properties securing payment hereof. The undersigned agrees that the time for any payment hereunder may be extended from time to time without notice and consent and extension of time for the payment of this note or any installment hereof shall not affect the liability of the undersigned under this note. If default be made in the payment in full of any sum provided for herein when due and payable then the holder may, at its option, declare the unpaid principal balance and accrued interest on this note due and payable upon providing the undersigned with five (5) days' written notice of its intent to so accelerate the due date of any and all such amounts unless such default is therefore cured by the undersigned , and, unless so cured by the undersigned, the holder may foreclose all liens securing payment hereof, if any, pursue any and all other rights, remedies and recourses available to it, or pursue any combination of the foregoing, all remedies hereunder being cumulative. Failure to exercise any of the foregoing options upon the happening of one or more of the foregoing events shall not constitute a waiver of the right to exercise the same or any other option at any subsequent time in respect of the same or any other event. The acceptance by the holder of any payment hereunder that is less than payment in full of all amounts due and payable at the time of such payment shall not constitute a waiver of the right to exercise any of the foregoing options at that time or at any subsequent time, or nullify any prior exercise of any such option, without the express written consent of the holder. The undersigned agrees to pay all reasonable costs of collection hereof actually incurred including the holder s reasonable attorneys' fees, whether or not any suit or action shall be instituted to enforce this note. In the event of litigation arising out of or in connection with this note , the prevailing party shall be entitled to its reasonable attorneys' fees incurred at trial and on all appeals. PROMISSORY NOTE - F :\APPS\ WPDOCS\ T _Z\UWI\NONCONT .SYS\CARRIAGE. H I L \PROM IS. NTE . . Notwithstanding any provision of this note to the contrary, it is the intent of the undersigned and the holder hereof that the holder shall never be entitled to receive, collect or apply, as interest on the principal amount of the indebtedness any amount in excess of the maximum rate of interest that may be charged by applicable law; and in the event the holder ever receives, collects or applies as interest any such excess, the amount that would be excessive interest shall be deemed a partial prepayment of principal and treated hereunder as such; and, if the principal amount of the indebtedness secured hereby is paid in full at such time, an amount equal to the excessive interest shall forthwith be paid to the undersigned. If the holder credits the principal hereunder or refunds excessive interest in accordance with the amount of the indebtedness above, it shall not be subject to any penalty provided by law for contracting for, charging or receiving interest in excess of the maximum lawful rate. This note may be prepaid in part or in full at any time by the undersigned without penalty; provided , however, that until all amounts due and payable hereunder have been paid in full, the amount of the quarterly installments due and payable hereunder shall remain unchanged and shall not be recalculated to reflect the effect of any such prepayment. Whenever used herein, the singular number shall include the plural and the plural the singular and the use of any gender shall include all genders. The words "undersigned" and "holder" shall include their respective heirs, executors, administrators, legal representatives, successors, assigns and beneficiaries. All notices, demands, requests, and other communications under this note shall be in writing and shall be deemed properly served or delivered, if delivered by hand to the party to whose attention it is directed, or when sent, two (2) days after deposit in the U.S. mail, postage prepaid, by registered or certified mail , return receipt requested, or upon transmission when sent via facsimile, or one (1) day after deposit with a nationally recognized air carrier providing next day delivery, addressed as follows: If to Maker:Carriage Hill, L.L.C. 2800 E. Boise Avenue Boise, Idaho 83706 (208) 336-4262 (208) 342-2274 (facsimile) If to holder:200 Old Hook Road Harrington Park, New Jersey Attn: President (201) 767-9300 (201) 767-6579 (facsimile) 07640 or at such other address or to such other party which any party entitled to receive notice hereunder designates to the other in writing as provided above. This note is being delivered in the State of Idaho and is to be governed by and construed in accordance with the laws of the State of Idaho. PROMISSORY NOTE - 2 F:\APPS\WPDOCS\T _Z\UWI\NONCONT .SYS\CARRIAGE.H IL \PROMIS.NTE ~ ,' ,.. , ,. '. , IN WITNESS WHEREOF, this note has been executed by the undersigned effective as of the day first above written. MAKER: CARRIAGE HILL, L.L.C., an Idaho limited liability company By:The Development Group, Inc., an Idaho corporation , its Managing Memb By:..tit:...William D. a e, Pres ent PROMISSORY NOTE - 3 F :\APPS\ WPDOCS\ T Z\UWI\NONCONT .SYS\CARRIAGE. H I L \PROM IS. NTE EXHIBIT ." c, ;" . . ~l'VYI C::2 ;, ~"::..~( 2o--.J CARRIAGE HILL-NAMP A AGREEMENT THIS CARRIAGE HILL-NAMPA AGREEMENT (this "LID Agreement") is made effective this 1 ih day of March, 2004, by and among the City of Nampa , an Idaho municipal corporationNampa), Carriage Hill , L.L.C., an Idaho limited liability company ("Carriage Hill"), Triangle Dairy,Inc., an Idaho corporation ("Triangle ), and Edward Derwyn Shank and Grace E. Shank(collectively, "Shank" RECITALSA. On January 21 , 1998 Carriage Hill received preliminary subdivision plat approvalfrom Canyon County in connection with a single-family residential subdivision , more particularly described on Exhibit A, attached hereto and made a part hereof ("Carriage Hill Subdivisionwhich consists of 198.84 acres located west of Middleton Road and north of Greenhurst Road insouthwest Canyon County in the Nampa Area of City Impact, which is that particular area ofCanyon County that eventually will be annexed into Nampa. A portion of Carriage Hill Subdivisionwhich portion is defined as the LID Area below, is owned by Triangle and Shank. Carriage Hill is the contract-purchaser of the LID Area. B. On or about November 20, 1998, Carriage Hill and United Water Idaho Inc., anIdaho corporation ("UWID"), entered into that certain Residential or Multiple Family Housing Non-contiguous Water System Agreement (the "Water System Agreement" ), which Water SystemAgreement provides for, without IimitatJon: the permitting and construction of the "Domestic WaterSystem" as defined in that certain Purchase Agreement, dated concurrently herewith , by andbetween UWID and Nampa (the "Purchase Agreement"C. On March 9, 1999 , the final subdivision plat for the first phase of Carriage HillSubdivision was recorded in Canyon County. On December 29, 1999, Carriage Hill transferred to UWID that portion of the Domestic Water System constructed in connection with the first phase of Carriage Hill Subdivision. D. On February 11 , 2002, the final subdivision plat for the second phase of CarriageHill Subdivision was recorded in Canyon County. On December 18, 2003, Carriage Hill transferredto UWID that portion of the Domestic Water System constructed in connection with the second phase of Carriage Hill Subdivision.E. Nampa has extended its municipal water system to the intersection of MiddletonRoad and Iowa Street in Nampa s City limits in the vicinity of Carriage Hill Subdivision.F. On August 15 , 2003, Nampa indicated its desire to enter into negotiations withUWID and Carriage Hill in connection with ownership, operation and maintenance of the Domestic Water System, and the connection of the Domestic Water System to Nampa s municipal watersystem. Thereafter, the parties hereto entered into that certain Memorandum of Understanding, dated October 15, 2003, as amended (the "MOU" ), which MOU contemplated inter alia, thenegotiation and execution of the Purchase Agreement and this LID Agreement. G. Carriage Hill , Triangle and Shank have made application to Nampa requesting that the LID Area be annexed into the City of Nampa. Carriage Hill , Triangle" and Shank haverequested that the City of Nampa establish a LID, as defined beI9w;)m the :b!P Area contingentupon the LID Area being annexed into the City of Nampa. " ::::: .:~....): ':;-)...:_, -"...""..- "~.o ,.. ,~ - ~ ,n- ~ -', :'~ ::'-: :,~~ :~:. C) v~ ::;:J -., n ., ..). , 7:)-c:J :=3 ..o ...,, ,--' CARRIAGE HILL- NAMPA AGREEMENT - S:\Docs\Development Group Inc\Carriage Hill\AGR\Carriage Hill-Nampa FinaLDOC -i -.::: m-u 0 R : I'""" f'\.) G.) f"'J c....J . . AGREEMENT NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency ofwhich are hereby acknowledged and agreed , and in consideration of the recitals above, which are incorporated herein , and in consideration of the premises and the mutual representationscovenants, and agreements hereinafter contained, Carriage Hill and Nampa represent, covenantand agree as follows: INTERTIE: FURTHER COOPERATION a. Intertie . Nampa, at Nampa s sole cost and expense, shall develop design plans foran intertie between Nampa potable water system and the Domestic Water System (theIntertie) and submit such design plans to all applicable reviewing governmental agencies as soon as practicable following the annexation of the Carriage Hill Subdivision. Nampa, or Nampadesignee, at Nampa s sole cost and expense, shall commence and complete construction of the Intertie as soon as practicable following receipt of approval from all applicable reviewing governmental agencies. The parties hereto acknowledge that the Intertie shall not connect to the Domestic Water System unless and until Nampa takes possession of the Domestic Water System. b. Further Cooperation Carriage Hill shall reasonably and timely cooperate connection with Nampa s efforts to obtain , without limitation, all necessary permits, information, andconsents required by the appropriate federal, state and/or local governmental authorities, agenciesor officials in connection with the design and construction of the Intertie. Carriage Hill shall provideNampa, at no cost to Nampa, any and all easements reasonably necessary in connection with the Intertie that lie on real property owned by Carriage Hill. ANNEXATION; FURTHER COOPERATION Carriage Hill has made application to Nampa in connection with the annexation of the Carriage Hill Subdivision into the City of Nampa. Nampa shall use all good faith efforts to annexthe Carriage Hill Subdivision and to rezone the LID Area, defined below, to a zoning designationthat allows residential density of up to seven (7) dwelling units per acre. Carriage Hill and Nampashall reasonably and timely cooperate with one another in connection with Carriage Hill'application for annexation. LOCAL IMPROVEMENT DISTRICT: FURTHER COOPERATION a. As soon as praticable after the date hereof, Nam pa shall use all good faith effortsto adopt a Local Improvement District ("LID") to cover that portion of Carriage Hill Subdivision that previously has not been finally platted (the "LID Area ). The LID shall: (i)Be equal to Two Hundred Fifty Thousand and no/100ths Dollars ($250,000.00). (ii)Encumber the land that comprises the LID Area and not be tied to specific individuals. A portion of the proceeds of the LID in the amount of Two Hundred Fifty Thousand and 00/100ths Dollars ($250,000.00) shall be paid to UWID as more further provided in the PurchaseAgreement. In addition, Carriage Hill and Nampa shall reasonably document a "latecomer agreement" between Nampa and Carriage Hill , which latecomer s agreement provides that, in CARRIAGE HILL- NAMPA AGREEMENT - 2 S:\Docs\Development Group Inc\Carriage Hill\AGR\Carriage Hill-Nampa Final.DOC connection with the building permit for each and every residential lot in the LID Area, Nampa shallpay to Carriage Hill an amount equal to Twelve Hundred and no/100ths Dollars ($1 200.00). Suchpayment by Nampa to Carriage Hill will continue until all residential lots in the LID Area have beensold and all payments made irregardless of the time limit of the LID. Further, Carriage Hill andNampa shall cooperate to document the agreement of Nampa and Carriage Hill that Nampa shallreimburse Carriage Hill for the cost of the construction of certain water and sewer systemextensions constructed by Carriage Hill immediately south of Carriage Hill Subdivision within one(1) year of the adoption of the LID, which costs are equal to Seventeen Thousand Four Hundred Forty-one and 50/100ths Dollars ($17,441.50). b. Further Cooperation. Carriage Hill shall reasonably and timely cooperate with Nampa s efforts to adopt the LID as provided further herein. REPRESENTATIONS OF CARRIAGE HILL. Carriage Hill hereby represents and warrants to Nampa that as of the date hereof and/oras of the Closing Date: a. Authority. That Carriage Hill is an Idaho limited liability company that has beenduly organized and is validly existing and in good standing as a limited liability company under the laws of the State of Idaho, and has full power and authority to: (i) enter into this LID Agreement; and (ii) carry out and consummate the transactions contemplated by this LID Agreement. b. Effect of Transactions. That neither the execution of this LID Agreement nor theconsummation of the transactions contemplated hereby will: (i) result in a breach of or a default under any agreement, document or instrument to which Carriage Hill is a party or by whichCarriage Hill is bound; or (ii) violate any existing statute, law, regulation , restriction , order, writinjunction or decree of any court, administrative agency or governmental body to which Carriage Hill is subject. REPRESENTATIONS OF NAMPA. .o Nampa hereby represents and warrants to Carriage Hill that as of the date hereof and as of the Closing Date: a. Authority. That Nampa is an Idaho municipal corporation that has been dulyorganized and is validly existing and in good standing as a municipal corporation under the laws of the State of Idaho, and has full power and authority to: (i) enter into this LID Agreement; and(ii) carry out and consummate the transactions contemplated by this LID Agreement. b. Effect of Transactions. That neither the execution of this LID Agreement nor the consummation of the transactions contemplated hereby will: (i) result in a breach of or a defaultunder any agreement, document or instrument to which Nampa is a party or by which Nampa is bound; or (ii) violate any existing statute , law, regulation , restriction, order, writ, injunction or decree of any court, administrative agency or governmental body to which Nampa is subject. DEFAULT AND REMEDIES. a. Default bv Nampa If Nampa should fail to consummate the transactioncontemplated herein for any reason other than default by Carriage Hill, Carriage Hill may elect any one or more of the following remedies: (i) to enforce specific performance of this LID Agreement;(ii) to bring a suit for damages for breach of this LID Agreement; (iii) to terminate this LIDAgreement whereupon Nampa will reimburse Carriage Hill for Carriage Hillis out-of-pocketexpenses incurred with respect to this transaction, including reasonable attorney fees; or CARRIAGE HILL- NAMPA AGREEMENT - 3 S:\Docs\Development Group Inc\Carriage Hill\AGR\Carriage Hill-Nampa Final.DOC (iv) pursue any and all remedies at law or equity. No delay or omission in the exercise of any right or remedy accruing to Carriage Hill upon the breach by Nampa under this LID Agreement shallimpair such right or remedy or be construed as a waiver of any such breach theretofore orthereafter occurring. The waiver by Carriage Hill of any condition or the breach of any termcovenant or condition herein contained shall not be deemed to be a waiver of any other term covenant, condition or any subsequent breach of the same or any other term , covenant or condition contained herein. b. Default by Carriaqe Hill.If Carriage Hill should fail to consummate the transactioncontemplated herein for any reason other than default by Nampa, Nampa may elect anyone or more of the following remedies: (i) to enforce specific performance of this LID Agreement; (ii) to bring a suit for damages for breach of this LID Agreement; (iii) to terminate this LID Agreement whereupon Carriage Hill will reimburse Nampa for Nampa s out-of-pocket expenses incurred with respect to this transaction, including reasonable attorney s fees; or (iv) pursue any and all remedies at law or equity. No delay or omission in the exercise of any right or remedy accruing to Nampa upon the breach by Carriage Hill under this LID Agreement shall impair such right or remedy or be construed as a waiver of any such breach theretofore or thereafter occurring. The waiver by Nampa of any condition or the breach of any term , covenant or condition herein contained shall not be deemed to be a waiver of any other term , covenant, condition or any subsequent breach of the same or any other term , covenant or condition contained herein. NOTICES. All notices, demands , requests, and other communications under this LID Agreement shall be in writing and shall be properly served or delivered if delivered by hand to the party to whose attention it is directed, or when sent, three (3) days after deposit in the U.S. mail, postage prepaid or when received when sent via facsimile, addressed as follows: If to Nam pa: If to Triangle: 411 Third Street South Nampa, Idaho 83651 Attn: Paul Raymond, P. 208/465-2261 (fax) O. Box 1184 Nampa, Idaho 83653-1184 Attn: Sandra J. Johnson 208/461-9428 (fax) c/o Carriage Hill O. Box 1184 Nam pa, Idaho 83653-1184 Attn: Edward Derwyn and Grace Shank c/o Carriage Hill O. Box 1184 Nampa, Idaho 83653-1184 Atln: William D. Tate If to Carriage Hill: If to Shank: or at such other address or to such other party which any party entitled to receive notice hereunder designates to the other in writing as provided above. MISCELLANEOUS. a. Successors. This LID Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their successors and assigns; provided, however, this LID CARRIAGE HILL- NAMPA AGREEMENT - 4 S:\Docs\Development Group Inc\Carriage Hill\AGR\Carriage Hill-Nampa Final.DOC Agreement shall not be assigned by any party without the written consent of the other parties hereto, not to be unreasonably withheld. b. Time for Performance. Wherever under the terms and provisions of this LID Agreement the time for performance falls upon a Saturday, Sunday, or Legal Holiday, such time for performance shall be extended to the next business day. c. Entire Contract.This LID Agreement embodies the entire contract between the parties hereto with respect to the subject matter hereof. No modification or amendment to or of this LID Agreement of any kind whatsoever shall be made or claimed by Seller or Buyer shall have any force or effect whatsoever unless the same shall be endorsed in writing and be signed by the party against which the enforcement of such modification or amendment is sought, and then only to the extent set forth in such instrument. d. Representation. All parties hereto have either been represented by separate legal counselor have had the opportunity to be so represented. Thus , in all cases , the language herein shall be construed simply and in accordance with its fair meaning and not strictly for or against a party, regardless of which party prepared or caused the preparation of this LID Agreement. e. Captions . The captions at the beginning of the several paragraphs, respectively, are for convenience in locating the context, but are not part of the text. Governina Laws. This LID Agreement shall be governed by the laws of the State of Idaho. g. Prevailina Party If either party shall default in the full and timely performance of this LID Agreement and said default is cured with the assistance of an attorney for the other party and before the commencement of a suit thereon , as a part of curing said default, the reasonable attorneys' fees incurred by the other party shall be reimbursed to the other party upon demand. the event that either party to this LID Agreement shall file suit or action at law or equity to interpret or enforce this LID Agreement hereof, the unsuccessful party to such litigation agrees to pay to the prevailing party all costs and expenses, including reasonable attorney s fees, incurred by the prevailing party, including the same with respect to an appeal. h. Time of Essence All times provided for in this LID Agreement or in any other instrument or document referred to herein or contemplated hereby, for the performance of any act will be strictly construed, it being agreed that time is of the essence of this LID Agreement. i. Riahts. This LID Agreement shall not confer any rights or remedies upon any person other than the parties hereto and their respective successors and permitted assigns. j. Counterparts. This LID Agreement may be executed in one or more counterparts each of which shall be deemed an original but all of which together will constitute one and the same instrument. k. Interpretation. In the event any term or provisions of this LID Agreement shall be held illegal, invalid or unenforceable or inoperative as a matter of law, the remaining terms and provisions of this LID Agreement shall not be affected thereby but each such term and provision shall be valid and shall remain in full force and effect. I. Survival.The terms, provisions, agreements and indemnities shall survive the closing of the transaction contemplated herein and the delivery of the deed, and this LID Agreement shall not be merged therein, but shall remain binding upon and for the parties hereto until fully observed, kept or performed. CARRIAGE HILL- NAMPA AGREEMENT - 5 S:\Docs\Development Group Inc\Carriage Hill\AGR\Carriage Hill-Nampa Final.DOC m. Authority. Each party represents to the other that it has authority to execute this LID Agreement and to perform all of the terms and conditions required of them as provided under this LI D Agreement. IN WITNESS WHEREOF the undersigned, being duly authorized, have executed this Carriage Hill-Nampa Agreement as of the date set forth first above. NAMPA: .. I , . .' /' BY:~rJ/A~ (J I/) Tom D~e, Mayor ATTEST: By: City Clerk CARRIAGE HILL: Development Group, Inc., an Idaho corpo~n By: tffk"" William D. Tate, President TRIANGLE: Triangle Dairy, Inc., an Idaho corporatiof\ ~ ~ By: William D. Tate, ice President SHANK:~J ~ Edward Derwyn Shank ~A~ 1:,. ~-I( Grace E. Shank . Schedule of Exhibits: Exhibit A:Legal Description of Carriage Hill Subdivision CARRIAGE HILL- NAMPA AGREEMENT - 6 S:\Docs\Development Group Inc\Carriage Hill\AGR\Carriage Hill-Nampa FinaLDOC State of Idaho Canyon County On this 19th day of April, 2004, before me, the undersigned, a Notary Public in and for said State, personally appeared Stephen Kren and Diana Lambing known to me to be the Council President and the City Clerk, of the City of Nampa, Idaho, a municipal corporation, who executed the foregoing instrument. In Witness Thereof, I have hereunto set my hand and affixed by official seal, the day and year in this certificate first above written. ic~t" D~!ve Deborah L. Bishop Residing at: Nampa, Canyon County, Idaho My Commission Expires: 6/13/2007 \\, \\"","111 /lIIII"f' ",. '1'1:f,1.~.oao'" $, ,. ';:;~ .. ~~.. " OTA~ ~. ~(::)()~.. . "- ""'1 - :: : ....~,= :: ",,' :: ~A) (; A .VB \... '\ .. " C\ ,...,. '. " -"";/ ;t ~".:,........, ~t OF \~,\\\,"'""""""'~ EXHIBIT A LEGAL DESCRIPTION OF CARRIAGE HILL SUBDIVISION HUBBLE ENGINEERING, INC. 9550 Bethel Court. Boltie.ldaho 83709 2081322-8992 . Fax 2081378-0329 Project No. 9420100 May 5, 1999 CARRIAGE HilL PROJECT DESCRIPTION NAMP At IDAHO A parcel of land located In the NE1/4 SE1/4. and SW1I4 of Section 31, T.3N.2W.. 8.M.. Canyon County, Idaho, more particularly described as follows: BEGINNING at the 1/4 comer common to Section 32 and the said Section 31, fromwhich the southeast comer of said Section 31 bears South 00022'13" East, 2582.70 feet; thence South 890 16'20" West, 302.20 feet to a point; thence South 19037'40" East, 96.90 feet to a point; thence South 40024'03" East, 92.27 feet to a point; thence South 36030'19" East, 118.29 feet to a point; thence South 00054'00" East, 445.00 feet to a point; thence South 36002'38' East, 234.96 feet to a point on the East boundary of said Section 31; thence along said East boundary South 00022'13" East. 395.95 feet to the South1/16 comer; thence along the South boundary of the North 1/2 of the $E1I4 South 88052'57" West, 2644.66 feet to the C-S 1/16 comer; thence along the North-South mid-section line North 00023'55" West, 812.33 feetto a point; thence departing said line North 33000'10" West, 587.74 feet to a point on the East- West mid-section line; thence along said line North 89015'43" East, 316.70 feet to the center of said Section 31, said point being common to the southwest corner of Verde Hills Sub-division, as same is recorded in Book 13 of Plats at Page 20, records of Canyon County, Idaho; thence continuing along said line and the exterior boundary of said Verde Hills Sub- division North 89tS16'20" East, 1647.60 feet to a point; Carnage Hill Project Description Page 1 of EXHIBIT A Exhibit A - S:\Docs\Development Group Inc\Carriage Hill\AGR\Carriage Hill-Nampa FinaLDOC thern:e North 13O5~20" West. 77.28 feet to a point; thence North 34 024'00" West, 133.60 feel to a point; thence North 50 34'00" West. 104.25 feet tea point; thence 94.53 feet along the arc of a CUNe to the left, having a radlu$ of 117.25 feeta central angle of46O 11120", and a long chord bearing North 2so3~4011 West, 91.99 feetto a point; thence North 51045'19" West. 6.00 feet to a point thence 95.41 feet along the arc of a curve to the reft, having a radJU$ of 129.11 feet; a central angle of 42820'20-, and a long chord bearing North 72055'30" West.. 93.25 feel to a point; thence South 85~54'2(r West. 44.60 feet to a point; thence 83.62 feet arong the arc of a curve to the right, ~aving a radius of 91.27 feet.a central angle of 52.29~O., and ill long chord bearing North 67"51'00- West, 80.72 feet to a point: thence North 41 036'18'0 West, 0.40 feet to a point thence 83.38 feet along the arc of a curve to the left, having a radius of 69.40 feet. a central angle of 53026'18". and a long chord bearing NorthS8O19'20" West, 80.39 feet to a point; thence South B4#5T4tr W"t. 213.75 feet to a point; tMnce South 71 o53i40" W4!JSt, 190.00 feet to a point; !hence South 77\t06t40" We$t. 258.00 feet to a point; thence 179.63 feet along the arc of a curve to the right. having a redlu$ of 100. feet, a central angle of 102023'398 , and a long chortJ bearing North 51"41 '3010 West, 156. feet to a point; thence North 00 o29f3\1f West, 19.50 feet to a point, thMce 76.53 feet along the arc ofa curve to the left, having a radius of 106.47 feet. a central Mgle of 41-11.00", and a long chord bearing North 21005'10. West, 74.89 feet to a point; thence North 41 040"3311 West. 2.00 feet to a point; Carriage HUI Prefect Oescrlption Page 2 014 EXllffilT A Exhibit A - 2 S:\Docs\Development Group Inc\Carriage Hill\AGR\Carriage Hill-Nampa Final.DOC . ., ', . thence 78.18 feet along the arc of a curve to the right, having a Tad ius of 150.1 0feet, a central angle of 29050'40", and a long chord bearing North 26"45'20" West, 77. feet to a point; thence North 11050'00" West, 42.84 feet to a point: thence 94.45 feet along the arc of a curve to the left. having a radius of 116,38 feet,a central angle of 46030'00", and a long chord bearing North 35005'00" West, 91.88 feetto a point, thence North 58020.00" West, 240.00 feet to a point; thence North 46033'00" West, 166.06 feet to the northwest corner of said Verde Hills Sub~division lying on the North-South mid-section line; thence along said line North 00023142" West, 1658.07 feet to the North 1/4 comer of said Section 31; thence along the North boundary of said Section 31 North 90000.00" East, 1687. feet to a point in the center of the Deer Flat Nampa Edwards Canal; thence along the center of said canal South 41'138'42" East, 140.20 feet thence 165.19 feet along the arc of a curve to the right having a radius of 1000 feet a central angle of 9027'52/1 and a long chord bearing South 42054'46" East, 165.00 feet to a point; thence South 38010'42" East, 643.40 feet to a point: thence 203.14 feet along the arc of a CUNe to the right, having a radius of 1200 feet, a central angle of 9041158" and a long chord bearing South 33019'43" East, 202.90 feet to ' a point; thence South 28"28142" East. 438.20 feet to a point; thence South 40000'42" East, 20.46 feet to a point on the South boundary of the North 1/2 of the Northeast 1/4; thence departing the center of the Deer Flat Nampa Edwards Canal along said South boundary South 89038'23" West, 675.66 feet; thence South 000322136'. East, 257.70 feet to a point; thence 89038'23" East, 263.00 feet to a point; Carriage Hill Project Descrlptfon Page 3 of 4 EXHIBIT A Exhibit A - 3 S:\Docs\Development Group Inc\Carriage Hill\AGR\Carriage Hill-Nampa Final.DOC EXHIB IT (:"), ". PURCHASE AGREEMEN ~ ~-~:, ,..., '. , 0, '. . " r-..) .- ~ --::-:) C:) , ', , - " THIS PURCHASE AGREEMENT (this "Agreement") is made effective this 1:2th day of March , 2004, by and between the City of Nampa, an Idaho municipal corporation ("_:ampa" or Buyer ) and United Water Idaho Inc., an Idaho corporation ("UWID" or~'Seller:' ).. RECIT ALS -,- A. On January 21 , 1998 Carriage Hill, L.L.C" an Idaho limited liability companyCarriage Hill") received preliminary subdivision plat approval from Canyon County in connection with a single-family residential subdivision more particularly described on Exhibit A, attached hereto and made a part hereof ("Carriage Hill Subdivision ), which consists of 198.84 acres ~ located west of Middleton Road and north of Greenhurst Road in southwest Canyon County in the ~ 0 Nampa Area of City Impact. B. On or about November 20, 1998, Carriage Hill and UWID entered into that certain :;:;: Residential or Multiple Family Housing Non-contiguous Water System Agreement (the "Water ~ System Agreement"), which Water System Agreement provides for, without limitation: the 11 .,." permitting and construction of the Domestic Water System, defined below, including the source of :t:- supply; the transfer of the Domestic Water System from Carriage Hill to UWID; and, after such ~ ~ transfer, the operation and maintenance of the Domestic Water System by UWID. 181~C. On November 30, 1998 , Carriage Hill executed that certain Design-Build Promissory Note in favor of United Waterworks Inc., a Delaware corporation ("UWW") in the original principal amount of Three Hundred Fifty Thousand and no/100ths Dollars ($350 000.00) (the "Promissory Note D. On or about November 30, 1998, the principals of Carriage Hill executed that certain Joint and Several Individuals' Guaranty in favor of UWW (the "Guaranty").E. On March 9, 1999 , the final subdivision plat for the first phase of Carriage Hill Subdivision was recorded in Canyon County. On December 29, 1999, Carriage Hill transferred to UWID that portion of the Domestic Water System constructed in connection with the first phase of Carriage Hill Subdivision.F. On February 11 , 2002, the final subdivision plat for the second phase of CarriageHill Subdivision was recorded in Canyon County. On December 18 , 2003 , Carriage Hill transferredto UWID that portion of the Domestic Water System constructed in connection with the second phase of Carriage Hill Subdivision.G. Nampa has extended its municipal water system to the intersection of Middleton Road and Iowa Street in the vicinity of Carriage Hill Subdivision. H. On August 15, 2003, Nampa indicated its desire to enter into negotiations with UWID in connection with ownership, operation and maintenance of the Domestic Water Systemand the connection of the Domestic Water System to Nampa municipal water system. Thereafter, the parties hereto entered into that certain Memorandum of Understanding, dated October 15, 2003, as amended (the "MOU"), which MOU contemplated, inter alia the negotiation and execution of th is Agreement.I. On November 14, 2003, Nampa completed the inspection of the Domestic Water System as contemplated by the MOU.J. Concurrently herewith Nampa and Carriage Hill have entered into that certainAnnexation and LID Agreement (the "LID Agreement"), which, LID Agreement, inter alia, describesthe local improvement district process that must be completed as a condition precedent to Nampa obligation to close the transaction contemplated by this Agreement.. UWID-NAMPA PURCHASE AGREEMENT- S:\Docs\Development Group Inc\Carriage Hill\AGR\UWID-Nampa Final.DOC AGREEMENT NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency ofwhich are hereby acknowledged and agreed, and in consideration of the recitals above, which are incorporated herein, and in consideration of the premises and the mutual representationscovenants, and agreements hereinafter contained , Seller and Buyer represent, covenant, andagree as follows: DOMESTIC WATER SYSTEM. Seller agrees to sell , assign , transfer and convey and Buyer agrees to purchase and have assigned , transferred and conveyed , all for a purchase price and subject to and upon each of theterms and conditions hereinafter set forth, the "Domestic Water System," which shall mean alltangible personal property and real property used in connection with the operation andmaintenance of the Domestic Water System including, without limitation , the wells, pumps, motorsmeasuring devices, electrical and control equipment, valves, distribution lines, service linesbetween the distribution line and the meter box, fire hydrants, services and customer meter setters meter boxes , lids and meters , the Well Lot more particularly described in the warranty deedattached as Exhibit 8 and made a part hereof (the "Well Lot"), easements for access to the Well Lot and improvements, the well house groundwater and groundwater rights , and any and alleasements necessary for the maintenance and operation of the Domestic Water System , all asrequired and approved by, without limitation , the Idaho Department of Environmental Quality IDEQ"), Idaho Department of Water Resources ("IDWR"), and the Idaho Public UtilitiesCommission ("IPUC"), as applicable. The Domestic Water System also includes intangibleproperty used and useful in connection with the operation and maintenance of the Domestic Water System including, without limitation , customer lists and records, well logs, maintenance records tariffs and rules and regulations governing the rendering of service and extension of service tofuture development, franchises, permits , and certificates. PURCHASE PRICE. a. Purchase Price Subject to the conditions precedent to closinq described paraqraphs 6 and 7 below, the purchase price to be paid by Buyer to Seller on the Closing Datedefined below, for the Domestic Water System shall be Three Hundred Seventy-five Thousand and no/100ths Dollars ($375 000.00) (the "Purchase Price ). A portion of the Purchase Price in anamount approximately equal to Thirty-seven Thousand and no/10Oths Dollars ($37 000.00) shall be paid to UWID. A portion of the Purchase Price in an amount approximately equal to ThreeHundred Thirty-eight Thousand and no/100ths Dollars ($338 000.00) shall be paid to United WaterWorks Inc., a Delaware corporation , whose address is: c/o UWID , 8248 Victory Road , P.O. Box190420, Boise, Idaho 83719-0420. b. Payment Medium . The Purchase Price shall be paid in cash, wire transfer orofficial bank check on the Closing Date, defined below. TITLE MATTERS. a. Documents Evidencinq Title. Within twenty (20) business days of the completeexecution of this Agreement, Seller shall cause to be delivered to Buyer a commitment for anowners title insurance policy, with standard form coverage, together with legible copies of allexception documents, issued by Transnation Title Insurance Company (the "Title Insurer") in theamount of that portion of the Purchase Price allocated to the Well Lot, which is herebyacknowledged and agreed to be Forty Thousand and no/100ths Dollars ($40 000.00) (the "TitleCommitment") showing marketable and insurable title to the Well Lot subject only to: (i) titleexceptions pertaining to liens or encumbrances of a definite or ascertainable amount which may be removed by the payment of money or otherwise on the Closing Date, and which Seller shall soremove at that time; (ii) permitted exceptions as set forth in Exhibit C , attached hereto and made apart hereof (the "Permitted Exceptions ); and (iii) such other exceptions as may be approved inwriting by Buyer UWID-NAMPA PURCHASE AGREEMENT- 2 S:\Docs\Development Group Inc\Carriage Hill\AGR\UWID-Nampa FinaLDOC b. Title Defects If the Title Commitment delivered to Buyer by Seller as provided in paragraph 3(a) above, discloses material liens or encumbrances other than the PermittedExceptions ("Unpermitted Exceptions ), or if prior to Closing the Title Commitment is amended to reflect Unpermitted Exceptions , Seller shall have the Unpermitted Exceptions removed from the Title Commitment, or have the Title Insurer irrevocably commit to insure against loss or damagethat may be occasioned by such Unpermitted Exceptions no later than the Closing Date; providedhowever, that the Title Insurer s commitment to insure over any Unpermitted Exceptions shall be subject to approval by Buyer, not to be unreasonably withheld. If Seller fails to have theUnpermitted Exceptions removed or insured over, as approved by Buyer, prior to Closing, Buyermay elect to: (i) cure any Unpermitted Exception which is a lien or encumbrance of a definite orascertainable amount and deduct the cost of cure from the Purchase Price; or (ii) take title as itthen is with the right to deduct the cost of insuring over the Unpermitted Exceptions from thePurchase Price to be paid in cash on the Closing Date. Buyer may elect one or both of (i) or (ii), as the case may be. AS IS. Except for the representations and warranties of Seller set forth in this Agreement, it is understood and agreed that Buyer has completed Buyer inspection of the Domestic WaterSystem and that Buyer is purchasing the Domestic Water System "as is" and "where is" as of theClosing Date, and with all faults and defects, latent or otherwise, and that Seller is making norepresentations or warranties, either express or implied , by operation of law or otherwise, with respect to: the quality, physical condition or value of the Domestic Water System; orthe Domestic Water System s suitability or fitness for a particular purpose. REPRESENTATIONS OF UWID. UWID hereby represents and warrants to Nampa that as of the date hereof and/or as ofthe Closing Date: a. Authority. That UWID is an Idaho corporation that has been duly organized and is validly existing and in good standing as a corporation under the laws of the State of Idaho, and hasfull power and authority to: (i) transfer title to the Domestic Water System; (ii) enter into thisAgreement; and (iii) carry out and consummate the transactions contemplated by this Agreement. b. Effect of Transactions. That neither the execution of this Agreement nor theconsummation of the transactions contemplated hereby will: (i) result in a breach of or a defaultunder any agreement, document or instrument to which UWID is a party or by which UWID isbound; or (ii) violate any existing statute , law, regulation, restriction, order, writ, injunction or decreeof any court, administrative agency or governmental body to which UWID is subject. c. Ownership . That UWID is the owner of the Domestic Water System. That thereshall be no change in the ownership, operation or control of the Domestic Water System from the date hereof to the Closing Date. d. Contracts . That none of the following contracts or obligations are outstanding: (i) contracts, agreements, or other obligations for the sale, exchange, transfer or, encumbrance ofall or any portion of the Domestic Water System; or (ii) refundable customer deposits, recaptureagreements, contracts, agreements, service contracts, maintenance agreements, leases, licensesinvoices, bills, understandings of any nature, written or oral , formal or informal , affecting or relatingto the service, maintenance, revenue collection, use or other functions pertaining to the DomesticWater System or the operation thereof which may not be terminated upon thirty (30) days' noticeand unless UWID delivers a written notice to Seller to the contrary, shall be terminated effective as of the Closing Date. e. Customers . That UWID shall provide Nampa at Closing a complete list of allUWID's customers' names and addresses. UWID-NAMPA PURCHASE AGREEMENT- 3 S:\Docs\Development Group Inc\Carriage HiII\AGR\UWID-Nampa Final.DOC f. Insurance That all premiums due on all fire and hazard, liability and other insurance policies held by UWID , if any, in connection with the Domestic Water System have been and shall be paid when due by UWID , and the policies remain and shall remain uncancelled and in full force and effect through the Closing Date , and that any and all proceeds of any insurance received on account of any damage to the Domestic Water System shall be applied to the repair of the Domestic Water System. g. Condemnation . That to UWID's knowledge, there are no condemnation or judicial proceedings, administrative actions or examinations , claims or demands of any type which have been instituted or which are pending or threatened against the Domestic Water System, or any partthereof. In the event UWID receives notice of any such proceeding, action , examination or demand, UWID shall promptly deliver a copy of such notice to Nampa. h. No Liens . That to UWID's knowledge , there are and shall be no liens or claims against the Domestic Water System for federal or state taxes or any other charges whatsoever and that no portion of the Domestic Water System is affected by any special assessments, whether or not constituting a lien thereon. i. Liabilities That all debts , liabilities and obligations of UWID arising from the ownership and operation of the Domestic Water System including, but not limited to, salaries, taxes and accounts payable, have been paid as they become due and mature and will continue to be so paid from the date hereof until the Closing Date, and that no debts, liabilities or obligations will be outstanding as of the Closing Date , except for accrued payables incurred in the ordinary course of business that UWID shall pay in a timely manner. To UWID's knowledge , there are and will be no unrecorded mechanics' or material mens ' liens or any claims for such liens affecting the Domestic Water System , and as of the Closing Date, there will be no work or material performed or furnished for which payment will not have previously been made. j. Access . That to UWID's knowledge, there is currently adequate access to andfrom the Domestic Water System from adjoining private or public streets, highways, roads and ways , and no fact or condition exists which would result in the termination of the current access to and from the Domestic Water System to the adjoining public or private streets , highways, roads and ways. k. Governmental Laws . That to UWID's knowledge: UWID and the Domestic Water System , and the use and operation thereof, are in compliance with all applicable governmentallaws, ordinances, regulations, certificates , licenses, permits and authorizations, and there arepresently in effect all certificates, licenses, permits and other authorizations necessary for the use occupancy and operation of the Domestic Water System as it is presently being operated; there exists no condition with respect to the operation, use or occupancy of the Domestic Water Systemwhich violates any public utility, environmental , zoning, building, health , fire or similar law ordinance or regulation; and there has been no notice of any violation of any public utility, environmental, zoning, building, health, fire or similar law, ordinance or regulation relative to the maintenance , operation , use or occupancy of the Domestic Water System. UWID shall promptly comply with any notices received after the date hereof and shall promptly deliver to Buyer a copy of any such notice together with evidence of compliance therewith. I. Maintenance . That from and after the date hereof and until the Closing, UWIDshall maintain or cause to be maintained the Domestic Water System in good condition and repairand shall continue to make or cause to be made ordinary repairs, replacements and maintenance between the date hereof and the Closing with respect to the Domestic Water System and shalldeliver the same in as good working order and repair as exists on the date hereof, further reasonable wear and tear excepted. REPRESENTATIONS OF NAMPA. Nampa hereby represents and warrants to UWID that as of the date hereof and as of the Closing Date: UWID-NAMPA PURCHASE AGREEMENT- 4 S:\Docs\Development Group Inc\Carriage Hill\AGR\UWID-Nampa FinaLDOC a. Authority That Nampa is an Idaho municipal corporation that has been duly organized and is validly existing and in good standing as a municipal corporation under the laws of the State of Idaho , and has full power and authority to: (i) acquire title to the Domestic Water System; (ii) enter into this Agreement; and (iii) carry out and consummate the transactions contemplated by this Agreement. b. Effect of Transactions That neither the execution of this Agreement nor the consummation of the transactions contemplated hereby will: (i) result in a breach of or a defaultunder any agreement, document or instrument to which Nampa is a party or by which Nampa is bound; or (ii) violate any existing statute, law, regulation , restriction , order, writ, injunction or decree of any court, administrative agency or governmental body to which Nampa is subject. CONDITIONS PRECEDENT TO CLOSING. a. Conditions Precedent to Nampa s Obliqations . This Agreement, and Nampa obligation to close the transaction contemplated herein, is subject to the following express conditions precedent. Notwithstanding anything to the contrary that may be contained herein, each of the following conditions precedent may be waived in writing by Nampa, such conditions being for the exclusive protection and benefit of Nampa.(i) That there shall not have been any material damage, destruction, or loss adversely affecting the Domestic Water System. (ii) All approvals required in connection with the transfer of the Domestic Water System shall have been obtained from the IDEO and the IDWR. (iii) The City of Nampa has formally annexed the Carriage Hill Subdivision;has, with Carriaqe Hill. entered into a development aqreement reasonably acceptable to the City of Nampa and Carriaqe Hill;and has formally adopted the Local Improvement District, as defined in the LID Agreement. In the event of a failure of any condition precedent set forth in this paragraph 7(a), Nampa may declare this Agreement null and void , and the parties shall have no further obligations or liabilitieshereunder. b. Condition Precedent to UWID'Obliqations This Agreement, and UWID' obligation to close the transaction contemplated herein, is subject to the following express conditionprecedent. Notwithstanding anything to the contrary that may be contained herein , the followingcondition precedent may be waived in writing by UWID, such condition being for the exclusive protection and benefit of UWID. (i) All approvals required in connection with the transfer of the Domestic Water System shall have been obtained from the IPUC, the IDEO and the IDWR. In the event of a failure of the condition precedent set forth into this paragraph 7(b), UWID may, at its sole discretion , declare this Agreement null and void , and the parties shall have no furtherobligations or liabilities hereunder. INTERTIE; UWID AND NAMPA FURTHER COOPERATION a. Intertie. Nampa, at Nampa s sole cost and expense, shall develop design plans foran intertie between Nampa potable water system and the Domestic Water System (theIntertie) and submit such design plans to all applicable reviewing governmental agencies soon as practicable followinq the annexation of the Carriaqe Hill Subdivision . Nampa , or Nampadesignee, at Nampa s sole cost and expense , shall commence and complete construction of the Intertie as soon as practicable following receipt of approval from all applicable reviewing governmental agencies. The parties hereto acknowledge that the Intertie shall not connect to theDomestic Water System unless and until Nampa takes possession of the Domestic Water System. UWID-NAMPA PURCHASE AGREEMENT- 5 S:\Docs\Development Group Inc\Carriage Hill\AGR\UWID-Nampa Final.DOC b. Further Cooperation UWID shall reasonably cooperate with Nampa in connection with Nampa s efforts to obtain, without limitation , all necessary permits, information , and consents required by the appropriate federal, state and/or local governmental authorities , agencies or officials in connection with the design and construction of the Intertie. Nampa and UWID shall cooperate with one another in connection with customer notification and communication. CLOSING AND RELATED MATTERS. a. Closino Date; Time of the Essence. The Closing shall take place not later than thirty (30) days after receipt of the state and local regulatory approvals set forth in paragraph 7 (the Closing Date b. UWID's Deposits. On the Closinq Date, UWID shall deliver the following documents to the Escrowee:(i) Warranty Deed executed by UWID conveying the Well Lot to Nampasubject only to the Permitted Exceptions , which Warranty Deed shall besubstantially similar in form to the Warranty Deed attached hereto as Exhibit D and made a part hereof. (ii) Bill of Sale executed by UWID conveying the Domestic Water System to Nampa, which Bill of Sale shall be substantially similar in form to the Bill of Sale attached hereto as Exhibit E and made a part hereof. (iii) Copies of all leases , certificates , court filings, licenses , permits and/or agreements in connection with the use of, and water rights appurtenant to or used in connection with , the Domestic Water System. (iv) A UWID-approved Closing Statement, which Closing Statement shall provide for the payment from UWID to Carriage Hill of any and all unpaid refunds for Domestic Water System hookups through the Closing Date. (v) Such other documents as the Title Insurer, Nampa or Nampa s attorneys may reasonably require in order to effectuate or further evidence the intent of any provision in this Agreement. All of the documents and instruments to be delivered by UWID hereunder shall be in form and substance reasonably satisfactory to counsel for Buyer. c. Nampa s Deposits documents to the Escrowee: On the Closing Date Nampa shall deliver the following (i)A Nampa-approved Closing Statement (ii) Cash or certified funds in an amount sufficient to meet Nampa obligations hereunder. (iii) Such other documents as the Title Insurer, UWID , or UWID's attorneys may reasonably require in order to effectuate or further evidence the intent of any provision of this Agreement. All of the documents and instruments to be delivered by Nampa hereunder shall be in form and substance reasonably satisfactory to counsel for UWID. d. Escrow Closino The closing of the transactions contemplated herein (theClosing) shall take place at the office of the Transnation Title Insurance Company, 847Parkcentre Way, Suite 3, Nampa, Idaho 83651 (the "Escrowee ). Closing shall be conducted with the Escrowee, using form escrow instructions then in use by the Escrowee , modified to reflect theterms and conditions of the transactions contemplated herein. This Agreement shall not be UWID-NAMPA PURCHASE AGREEMENT- 6 S:\Docs\Development Group Inc\Carriage Hill\AGR\UWID-Nampa Final.DOC merged into such escrow instructions , and the same shall always be deemed auxiliary to this Agreement. The provisions of this Agreement shall always be deemed controlling as between theparties hereto. Escrowee shall close the transactions contemplated herein upon the irrevocablecommitment of Title Insurer to issue the title insurance policies required under paragraph 3(a) above and upon receipt of all deposits referenced in this paragraph. The respective attorneys for the parties hereto are hereby authorized to enter into and execute such escrow instructions and any amendments thereto. e. Possession Buyer on the Closing Date. Possession of the Domestic Water System shall be delivered to 10.PRORATIONS AND ADJUSTMENTS. The following items shall be paid, prorated and/or adjusted as of the Closing Date: a. Taxes. General real estate taxes and all other levies and charges against the Well Lot for the year in which the Closing Date shall occur, which are accrued but not yet due and payable. Such taxes shall be prorated on the basis of the most recent ascertainable tax bill. b. Utilities. All charges for utilities shall be paid by UWID to the Closing Date. Billsreceived after the Closing Date which relate to expenses incurred or services performed allocable to the period prior to the Closing Date shall be paid by UWID as and when due. c. Title Coveraqe. The premium for standard coverage title insurance in connectionwith the Well Lot shall be paid by UWID. d. Sales Tax Nampa shall not be liable for any state, county, federal income, exciseor sales tax liabilities of UWID. Recording fees for the Warranty Deed shall be paid by Nampa. e. Escrow. The cost of escrow shall be divided equally between UWID and Nampa. f. Meters On the day of the Closing Date, UWID , and Nampa if Nampa so choosesshall have all customer meters read so as to avoid any post-closing proration of accountsreceivable and unbilled revenue. All such revenue earned by UWID as determined by the meter readings on the Closing Date shall be due and payable to UWID. g. Other. Such other items as are customarily prorated in a transaction of the typecontemplated in this Agreement. Unless otherwise provided above, if any taxes , expenses andcharges to be prorated cannot be determined on the Closing Date, the proration shall be based on the latest available information , with an ultimate adjustment to be made promptly when actualamounts are available. 11.DEFAULT AND REMEDIES. a. Default by Nampa If Nampa should fail to consummate the transactioncontemplated herein for any reason other than default by UWID , UWID may elect anyone or more of the following remedies: (i) to enforce specific performance of this Agreement; (ii) to bring a suit for damages for breach of this Agreement; (iii) to terminate this Agreement whereupon Nampa willreimburse UWID for UWID's out-of-pocket expenses incurred with respect to this transactionincluding reasonable attorney s fees; or (iv) pursue any and all remedies at law or equity. No delay or omission in the exercise of any right or remedy accruing to UWID upon the breach by Nampaunder this Agreement shall impair such right or remedy or be construed as a waiver of any suchbreach theretofore or thereafter occurring. The waiver by UWID of any condition or the breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of any other term , covenant, condition or any subsequent breach of the same or any other term , covenant orcondition contained herein. UWID-NAMPA PURCHASE AGREEMENT- 7 S:\Docs\Development Group Inc\Carriage Hill\AGR\UWID-Nampa Final.DOC b. Default by UWID If UWID should fail to consummate the transactioncontemplated herein for any reason other than default by Nampa , Nampa may elect anyone ormore of the following remedies: (i) to enforce specific performance of this Agreement; (ii) to bring asuit for damages for breach of this Agreement; (iii) to terminate this Agreement whereupon UWIDwill reimburse Nampa for Nampa s out-of-pocket expenses incurred with respect to this transaction including reasonable attorney s fees; or (iv) pursue any and all remedies at law or equity. No delay or omission in the exercise of any right or remedy accruing to Nampa upon the breach by UWIDunder this Agreement shall impair such right or remedy or be construed as a waiver of any such breach theretofore or thereafter occurring. The waiver by Nampa of any condition or the breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of any other term, covenant, condition or any subsequent breach of the same or any other term , covenant or condition contained herein. 12.BROKERAGE. Each of the parties represents and warrants to the other that it has not incurred and will notincur any liability for finder s or brokerage fees or commissions in connection with this Agreement and the transaction(s) contemplated herein. The parties agree to indemnify, defend and hold the each other harmless from and against any and all claims or demands with respect to any finder s orbrokerage fees or commissions or other compensation asserted by any person, firm or corporationin within five (5) days connection with this Agreement or the transaction(s) contemplated herein. 13.INTERVENING DAMAGE OR LOSS. a. Casualty UWID shall deliver the Domestic Water System to Nampa substantially the same condition on the Closing Date as on the date hereof, excepting therefromordinary wear and tear. If, prior to the Closing Date, any improvements are damaged or destroyed by fire or other casualty, then UWID shall immediately notify Nampa as provided in this Agreement. Nampa shall, following delivery of such notice, elect to: (i) complete the purchase of suchDomestic Water System with the Purchase Price being reduced by an amount equal to the fair market value of the improvements (or portion thereof) damaged or destroyed; or (ii) complete the purchase of the Domestic Water System upon UWID delivering to Nampa a duly executedassignment of all insurance proceeds payable as a result of such fire or casualty, in form andsubstance reasonably satisfactory to Nampa; and UWID paying the amount of any deductibleunder the applicable insurance policy. Notwithstanding anything to the contrary in the foregoing, in the event that the replacement value of the damaged or destroyed improvements in connectionwith the Domestic Water System is less than $10,000., the same shall be considered withouteffect, without adjustment to the Purchase Price or assignment of insurance proceeds. b. Condemnation. Should any entity having the power of condemnation bring anaction or otherwise indicate an intent prior to the Closing Date to acquire all or any portion of; orany interest in, the Domestic Water System, then UWID shall immediately notify Nampa asprovided in this Agreement. Nampa shall complete the purchase of the Domestic Water Systemwith UWID immediately appointing Nampa its attorney-in-fact to negotiate with said condemningentity as to Nampa s interest in the Domestic Water System and assigning to Nampa all amounts to be awarded for such Domestic Water System. 14.NOTICES. All notices, demands, requests, and other communications under this Agreement shall be in writing and shall be properly served or delivered if delivered by hand to the party to whoseattention it is directed , or when sent, three (3) days after deposit in the U.S. mail , postage prepaidor when received when sent via facsimile, addressed as follows: UWID-NAMPA PURCHASE AGREEMENT- 8 S:\Docs\Development Group Inc\Carriage HiII\AGR\UWID-Nampa Final.DOC If to UWID:8248 W. Victory Road O. Box 190420 Boise, ID 83719-0420 Attn: Gregory P. Wyatt 208/362- 7069 (fax) If to Nampa:411 Third Street South Nampa, Idaho 83651 Attn: Paul Raymond, P . 208/465-2261 (fax) or at such other address or to such other party which any party entitled to receive notice hereunder designates to the other in writing as provided above. 15.BULK SALES. It is the opinion of the parties that any bulk sales laws or regulations do not apply to thetransactions contemplated by this Agreement. However, should any claim or legal proceeding be made or commenced by a creditor based on the applicability of any bulk sales law or regulation to the transactions, UWID shall indemnify, defend and hold harmless Nampa from the claim of suchcreditor under such bulk sales laws or regulations for any debt or obligation not expresslyhereunder assumed by Nampa. 16.MISCEllANEOUS. a. Successors. This Agreement shall be binding upon and shall inure to the benefitof the parties hereto and their successors and assigns; provided , however, this Agreement shallnot be assigned by any party without the written consent of the other parties hereto, not to beunreasonably withheld. b. Time for Performance Wherever under the terms and provisions of thisAgreement the time for performance falls upon a Saturday, Sunday, or legal Holiday, such time forperformance shall be extended to the next business day. c. Entire Contract.This Agreement embodies the entire contract between the parties hereto with respect to the subject matter hereof. No modification or amendment to or of thisAgreement of any kind whatsoever shall be made or claimed by UWID or Nampa shall have any force or effect whatsoever unless the same shall be endorsed in writing and be signed by the party against which the enforcement of such modification or amendment is sought, and then only to theextent set forth in such instrument. d. Representation. All parties hereto have either been represented by separate legalcounselor have had the opportunity to be so represented. Thus, in all cases, the language hereinshall be construed simply and in accordance with its fair meaning and not strictly for or against a party, regardless of which party prepared or caused the preparation of this Agreement. e. Captions . The captions at the beginning of the several paragraphs, respectively,are for convenience in locating the context, but are not part of the text. Governinq laws . This Agreement shall be governed by the laws of the State of Idaho. g. Prevailinq Party If either party shall default in the full and timely performance of this Agreement and said default is cured with the assistance of an attorney for the other party andbefore the commencement of a suit thereon , as a part of curing said default, the reasonable UWID-NAMPA PURCHASE AGREEMENT- 9 S:\Docs\Development Group Inc\Carriage Hill\AGR\UWID-Nampa FinaLDOC . . Z/" '" .., attorneys' fees incurred by the other party shall be reimbursed to the other party upon demand. In the event that either party to this Agreement shall file suit or action at law or equity to interpret orenforce this Agreement hereof, the unsuccessful party to such litigation agrees to pay to theprevailing party all costs and expenses , including reasonable attorney s fees , incurred by the prevailing party, including the same with respect to an appeal. h. Time of Essence All times provided for in this Agreement or in any other instrument or document referred to herein or contemplated hereby, for the performance of any act will be strictly construed, it being agreed that time is of the essence of this Agreement. i. Riohts. This Agreement shall not confer any rights or remedies upon any person other than the parties hereto and their respective successors and permitted assigns. j. Counterparts . This Agreement may be executed in one or more counterparts each of which shall be deemed an original but all of which together will constitute one and the same instrument. k. Interpretation. In the event any term or provisions of this Agreement shall be held illegal , invalid or unenforceable or inoperative as a matter of law, the remaining terms and provisions of this Agreement shall not be affected thereby but each such term and provision shall be valid and shall remain in full force and effect. I. Survival.The terms, provisions, agreements and indemnities shall survive the closing of the transaction contemplated herein and the delivery of the deed , and this Agreement shall not be merged therein , but shall remain binding upon and for the parties hereto until fully observed, kept or performed. m. Authority. Each party represents to the other that it has authority to execute this Agreement and to perform all of the terms and conditions required of them as provided under this Agreement. IN WITNESS WHEREOF, the undersigned, being duly authorized, have executed this Purchase Agreement as of the date set forth first above. SELLER: BUYER: UWID: United Water Idaho Inc., an Idaho corporation Schedule of Exhibits: Exhibit A: Exhibit B: Exhibit C: Exhibit D: Exhibit E: Legal Description of Carriage Hill Subdivision Legal Description of the Well Lot Permitted Exceptions Warranty Deed Bill of Sale PURCHASE AGREEMENT - 10 C:\WINDOWS\TEMP\UWID-Nampa Purchase Agr1.DOC State of Idaho Canyon County On this 19th day of April, 2004, before me, the undersigned, a Notary Public in and for said State, personally appeared Stephen Kren and Diana Lambing known to me to be the Council President and the City Clerk, of the City of Nampa, Idaho, a municipal corporation, who executed the foregoing instrument. In Witness Thereof, I have hereunto set my hand and affixed by official seal, the day and year in this certificate first above written. f)j~~i: J3~ Deborah L. Bishop Residing at: Nampa, Canyon County, Idaho My Commission Expires: 6/13/2007 \\\\\\111111""'""", #\~ U II/III.!~~n . h ~.... ' "'t'T;.OOOQ,, G,v . ;:: 4;..o\A~ ~ % 1 CJ : . r,L. ~ .. ""0 - :; -6- . = . ~.. - .....() (;.. B\.." ro... ,--.. .. ~ I EXHIBIT A LEGAL DESCRIPTION OF CARRIAGE HILL SUBDIVISION HUBBLE ENGINEERING, INC. 9550 Bethel Court. Boise, Idaho 83709 208/322-8992 . Fax 2081378'()329 Project No. 9420100 May 5, 1999 CARRIAGE HILL PROJECT DESCRIPTION NAMPA, IDAHO A parcel of land located In the NE1/4, SE1/4, and .SW1/4 of Section 31, T.3N.2W., 8.M.. Canyon County, Idaho, more particularly described as follows: BEGINNING at the 1/4 comer common to Section 32 and the said Section 31 , fromwhich the southeast comer of said Section 31 bears South 00022'1311 East. 2582.70 feet; thence South 89016'2011 West, 302.20 feet to a point: thence South 19037'40" East, 96.90 feet to a point; thence South 40024'03" East, 92.27 feet to a point; thence South 36030'18" East, 118.29 feet to a point; thence South 001:154'00" East, 445.00 feet to a point: thence South 36002138' East, 234.96 feet to a point on the East boundary of said Section 31; thence along said East boundary South 00022'13" East, 395.95 feet to the South 1/16 comer; thence along the South boundary of the North 1/2 of the SE1/4 South 88052'5711West, 2644.66 feet to the C-S 1/16 corner; thence along the North-South mid-section line North 00023'55" West, 812.33 "feetto a point; thence departing said tine North 33000'10" West, 587.74 feet to a point on the East- West mid-section line; thence along said line North 89015'43" East, 316.70 feet to the center of said Section 31, said point being common to the southwest corner of Verde Hills SlJb-division as same is recorded in Book 13 of Plats at Page 20, records of Canyon County. Idaho: thence continuing along said line and the exterior boundary of said Verde Hills Sub- division North 89"16'20" East, 1647.60 feet to a point; Carriage Hili Project Description PQge 1 of 4 EXHIBIT A EXHIBIT A - S:\Docs\Development Group Inc\Carriage Hill\AGR\UWID-Nampa Final.DOC thence North 13059120" West. 77.28 feet to a poInt; thence North 34024'00" West. 133.60 feet to a point; thence North 5034'00" West, 104.25 feet to a point; thence 94.53 feet along the arc of a curve to the left, having a radius of 117.25 feet,a central angle of 46011'20", and a long chord bearing North 28039'40" West, 91.99 feet to a point: thence North 51045'19" West. 6.00 feet to a point: thence 95.41 feet along the arc of a curve to the left, having a radius of 129.11 feet; a central angle of 42020'2011, and a long chord bearing North 72055'30" West, 93.25 feet to a point; thence South 85"54'20" West, 44.60 feet to a point; thence 83.62 feet along the arc of a curve to the right. having a radius of 91.27 feet,a central angle of 52"29'2011. and a long chord bearing North 67 "51 '00" West, 80.72 feet to a point; thence North 41 "36'18" West, 0.40 feet to a point; thence 83.38 feet along the arc of a curve to the left, having a radius of 89.40 feet a central angle of 53026'1811, and a long chord bearing North 68019'20" West, 80.39 feet to a poInt; thence South 84057'40" West, 213.75 feet to a point; thence South 71053'40" West, 190.00 feet to a point; thence South 77006'40" West, 258.00 feet to a point; thence 179.63 feet along the arc of a curve to the right, having a radius of 100. feel a central angle of 102023'39", and a long chord bearing North 51041'30" West, 156. feet to a point; thence North 00029'3911 West, 19.50 feet to a point; thence 76.53 fee1 along the arc of a curve to the left, having a radius of 106.47 feet,a central angle of41a 11'OOll, and a long chord bearing North 21005'10" West. 74.89 feet to .a point; thence North 41040'33" West, 2.00 feet to a point; Carriage Hili Project DescrlpUon Page 2 014 EXHIBIT A EXHIBIT A - 2 S:\Docs\Development Group Inc\Carriage HiII\AGR\UWID-Nampa Final.DOC thence 78.18 feet along the arc of a curve to the right, having a radius of 150. feet, a central angle of 290 50'40", and a long chord bearing North 26045120" West, 77. feet to a point; thence North 11050'00" West, 42.84 feet to a point; thence 94.45 feet along the arc of a curve to the left, having a radius of 116.38 feet,a central angle of 46030'00", and a long chord bearing North 35005'00" West, 91.88 feetto a point; thence North 58020'00" West, 240.00 feet to a point; thence North 46033'00" West, 166.06 feet to the northwest corner of said Verde Hills Sub--divislon lying on the North-South mid~section line; thence along said line North 00023142" West, 1658.07 feet to the North 1/4 comerof said Section 31; thence along the North boundary of said Section 31 North 90~OO'00" East, 1687.feet to a point in the center of the Deer Flat Nampa Edwards Canal; thence along the center of said canal South 47038'42" East, 140.20 feet; thence 165.19 feet along the arc of a curve to the right having a radius of 1000 feet a central angle of 9027'52" and a long chord bearing South 42054'46" East, 165.00 feet toa point; thence South 380 10'42" East, 643.40 feet to a point; thence 203.14 feet along the arc of a curve to the right, having a radius of 1200 feet, a central angle 0(9041'58" and a long chord bearing South 33"19'43" East, 202.90 feet to a point; thence South 28028'42" East, 438.20 feet to a point; thence South 40000'42" East, 20.46 feet to a point on the South boundary of the North 1/2 of the Northeast 1/4; thence departing the center of the Deer Flat Nampa Edwards Canal along said South boundary South 89038'23" West, 675.66 feet; thence South 00022'36" East, 257.70 feet to a point; thence 89038'23" East, 263."00 feet to a point; Carriage Hili Project Description Page 3 of 4 EXHIBIT A EXHIBIT A - 3 S:\Docs\Development Group Inc\Carriage Hill\AGR\UWID-Nampa FinaLDOC thence South 001)22'36" East, 32.80 feet to a point, thence North 89"38123" East, 127.00 feet to a point; .thence South 00022'36" East. 160.00 feet to a point, thence North 8~r'38'23" East, 305.00 feet to a point on the East boundary of said Section 31; thence along the East boundary South 00022'36" East. 840.54 feet to the Point of Beginning. Containing 198.64 acres, more or Jess. . SUBJECT TO: Rights-of.way for Middleton Road, Iowa Avenue, and other easements of record or use. Prepared by: . HUBBLE ENGINEERING, INC. DTP Ivw/CarrfageHiII D. Terry Peugh, P.LS. :D c;-~ ...u -( )10. -0( .:3OQ -c::z:01 -..J. r-:r """0 f!= .:3 (")", c:..:I :::0 ::0 ;:0 I'Tt (:) :::0 fT1 ......oJc.n CJ1 Carnage Htn ProjeCt Oescnptton Page 4 at EXHIBIT A EXHIBIT A - 4 S:\Docs\Development Group Inc\Carriage Hill\AGR\UWID-Nampa FinaLDOC EXHIBIT B LEGAL DESCRIPTION OF THE WELL LOT Lot 14 , Block 1 of Carriage Hill Subdivision No.1 as recorded in Canyon County, Idaho as Instrument No. 9909068. EXHIBIT B S:\Docs\Development Group Inc\Carriage HiII\AGR\UWID-Nampa FinaLDOC EXHIBIT C PERM ITTED EXCEPTIONS 1. Any facts, rights , interests, or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession , or claiming to be in possession , thereof. 2. Easements, liens, encumbrances, or claims thereof, which are not shown by the publicrecords. 3. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey of the land would disclose, and which are not shown by the public records. 4. Any lien, or right to a lien, imposed by the law for services , labor, or material heretofore or hereafter furnished, which lien , or right to a lien , is not shown by the public records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) Indian treaty or aboriginal rights , including, but not limited to, easements or equitable servitudes; or, (d) water rights, claims or title to water, whether or not the matters excepted under (a), (b), (c) or (d) are shown by the public records. 6. Taxes or assessments which are not now payable or which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by thepublic records; proceedings by a public agency which may result in taxes or assessments, ornotices of such proceedings, whether or not shown by the records of such agency or by the public records. 7. Any service, installation, connection, maintenance or construction charges for sewer, water electricity, or garbage collection or disposal or other utilities unless shown as an existing lien by the public records. 8. Defects, liens, encumbrances, adverse claims or other matters, if any created , first appearingin the public records or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires of record for value the estate or interest or mortgage thereon covered by this Commitment. 9. Liens and assessments of the NAMPA MERIDIAN IRRIGATION DISTRICT, and the rightspowers, and easements of said district as by law provided. 10. Powerline easement as granted to IDAHO POWER COMPANY, a corporation, by instrumentrecorded July 5, 1957, as Instrument No. 445799, of Official Records; including the right from time to time to cut, trim , and remove trees, brush , overhanging branches and other obstructions which may injure or interfere with the Grantee s use, occupation, or enjoyment of this easement and the operation, maintenance and repair of Grantee s electrical system. 11. Terms, conditions , provisions and obligations set forth in that certain Development Agreementfor Carriage Hill Subdivision between COUNTY OF CANYON , a political subdivision of the State of Idaho , and CARRIAGE HILL, LLC, an Idaho Limited Liability Company, recorded August 31 , 1998as Instrument No. 9832513, of Official Records. 12. Protective Covenants, Conditions, Restrictions and/or Easements, and other matters imposedby Instrument recorded May 7, 1999, as Instrument No. 9918078, of Official Records. EXHIBIT C - S:\Docs\Development Group Inc\Carriage Hill\AGR\UWID-Nampa Final.DOC This exception omits any covenant, condition or restriction based on race, color, religionsex, handicap, familial status, or national origin as provided in 42 U.C. Section 3604 unless and only to the extent that the covenant (a) is not in violation of state or federal law (b) is exempt under 42 U.C. Section 3607 , or (c) relates to a handicap, but does notdiscriminate against handicapped people. Amended by instrument recorded May 7, 1999, as Instrument No. 9918079, of OfficialRecords. Amended by instrument recorded August 17, 2000, as Instrument No. 200028959, of Official Records. Amended by instrument recorded March 25, 2002 , as Instrument No. 200213690, of Official Records. 13. Liens, Levies and Assessments if any, of CARRIAGE HILL SUBDIVISION NO. NEIGHBORHOOD ASSOCIATION , INC. as provided for in instrument recorded May 7 , 1999, asInstrument No. 9918078, of Official Records and in any amendments or supplements thereto. 14. Easements, reservations, restrictions and dedications , if any, as shown on the official plat of said subdivision. 15. Acts of Buyer. EXHIBIT C - 2 S:\Docs\Development Group Inc\Carriage HiII\AGR\UWID-Nampa Final.DOC EXHIBIT D After recording send to: JoAnn C. Butler Spink Butler, LLP O. Box 639 Boise, Idaho 83701 FOR RECORDING INFORMATION WARRANTY DEED United Water Idaho Inc., an Idaho corporation, hereinafter referred to as "Grantor " for valuable consideration , the receipt and sufficiency of which are hereby acknowledged , does herebygrant, bargain, sell , convey, and warrant unto the City of Nampa, an Idaho municipal corporation hereinafter referred to as "Grantee " whose address is 411 Third Street South Nampa, Idaho83651, the real property located in Canyon County, Idaho, more particularly described as follows hereinafter referred to as the "Premises. Lot 14, Block 1 , Carriage Hill Subdivision No., Canyon County, Idaho, according to the plat filed in Book 26 of Plats, Page 29, records of said County; as Amended by Affidavit Authorizing Correction to Plat recorded May 7, 1999, as Instrument #9918077, including allground water and ground water rights , pumps , buildings, sources of supply, and other improvements in connection with such groundwater and groundwater rights, and sourcesof supply; and excluding surface water and surface water rights, ditch and ditch rightsminerals and mineral rights , and irrigation equipment. TO HAVE AND TO HOLD the Premises, together with its tenements, hereditaments andappurtenances thereto belonging or in any way appertaining, the reversion and reversions remainder and remainders, rents, issues and profits thereof, including, without limitation , all waterand water rights, ditches and ditch rights, water storage rights , the right to ground water, middlerights, easements, and rights of way, unto Grantee and Grantee s heirs, successors and assignsforever. And Grantor does hereby covenant to and with Grantee that Grantor is the owner in fee simple of the Premises; that the Premises are free from all liens, claims and encumbrances, andthat Grantor shall warrant and defend the same from all claims whatsoever. IN WITNESS WHEREOF, the undersigned have caused their names to be hereuntoascribed this day of ,2004. UNITED WATER IDAHO INC. an Idaho corporation By: Gregory P. Wyatt, Vice President EXHIBIT D - S:\Docs\Development Group Inc\Carriage HiII\AGR\UWID-Nampa Final.DOC . . EXHIBIT E BILL OF SALE United Water Idaho Inc., an Idaho corporation, whose address is 8248 Victory Road, Boise, Idaho 83709 Seller"), for valuable consideration , the receipt and sufficiency of which are hereby acknowledged , does hereby sellassign, transfer, and set over to City of Nampa, whose address is 411 Third Street South , Nampa, Idaho 83651Buyer"), the following property described on Exhibit A, attached hereto and made a part hereof (the "Property Seller hereby represents and warrants to Buyer that Seller is the absolute owner of the Property, that theProperty is free and clear of liens, charges and encumbrances, that Seller shall defend the same from all claimswhatsoever, and that Seller has full right, power and authority to sell said Property and to make this Bill of Sale;provided , however, Seller has neither made nor makes any warranties , whether expressed or implied, concerning the condition of the Property, and Buyer takes and receives the Property "AS IS " " WHERE IS " with "ALL FAULTS. IN WITNESS WHEREOF, Seller has signed this Bill of Sale this day of 2004. UNITED WATER IDAHO INC. an Idaho corporation By: Gregory P. Wyatt, Vice President EXHIBIT E - S:\Docs\Development Group Inc\Carriage HiIl\AGR\UWID-Nampa Final.DOC . . EXHIBIT E EXHIBIT A TO BILL OF SALE Physical Description of Domestic Water System Distribution System 1839' - 8" PVC Water Main 1281' - 12" PVC Water Main 29 - 1" Domestic Services 1 - 3" Irrigation Service 5 - 6' Fire Hydrants Source of Supply 16' x 32' Well House 18" Supply Well Mechanical Piping 2 - Submersible Pumps Communication, Control , Telemetry Equipment Land Well Lot Associated Landscaping Irrigation System EXHIBIT E - 2 S:\Docs\Development Group Inc\Carriage Hill\AGR\UWID-Nampa Final.DOC - -.., --- (g) BL OCK .--. (9 IN$7"ALL t-r 1r 1/-r ElL .... FJRE 1Q.-r FlJ1.JOI.J. ""~ IU1t:K I Jil r( l'~t ~O .-\~ t'~ huu (c.. if" j~ rhJl'Ir1- IJIfI/J ).01 GJ r::r co oJ c;; J. 6, eh tfIv ,.u-- v-l ~ G~9 z/ ('3-1 EXHIBIT E - 3 S:\Docs\Development Group Inc\Carriage HiII\AGR\UWID-Nampa Final.DOC "\ \-- -- . I - -1 \ - tI t s(T- - - .O'3 WSTALL. 1JUJWOFF.S'"CAP 3a9 ')-3 ~ 1.5 /34 () :3 /1/ 1!1 9 ';- ;;).. . PR'OJE ~' ~ . :J-~3) ",.,., ....._- C6"A CtJ3IJLfCJ5 A~- L,~-r- (L. c.:, ~ ~ ~-=~\~( ~tPEH. CARRIAGE HILL.. LLCO. BOX 1184- NAMPA. 10 83653 ,- UnitedWater$C) d lPOJ - &3 oJ?fJ C. EXHIBIT E - 4 S:\Docs\Development Group Inc\Carriage HiII\AGR\UWID-Nampa FinaLDOC EXHIBIT , . '-..... . ,....... . """"""T""'" V I ' '-'-" V~.!. '-" . '-"L-.. V, ! 1'11'- UV I LLI\., LLr I 1""1/\' ~VV VVV .!.vv.!.I nUL C::/ Namp~ Cit~ Clerks Office 4652314 RESOLUTION NO. 20-2004 A RESOLUTION DECLARING TI-IE INTENTION OF TIIE CIW COUNCIL OF THECITY OF NAMPA, IDAHO, TO ACQUIRE FROM UNITED WATER iDAHO, INC. THEWATER SOURCE FOR CARRIAGE HILLS SUBDMSION PHASE Do NAMPAIDAHO; TO CREATE LOCAL IMPROVE!\.iENT DISTRICT NO. 140 FOR NAMP IDAHO FOR THE PURPOSE OF PURCHASING THE WATER SOURCE FORCARRIAGE HIL~S SUBDIVISION PHASE FROM UNITED WATER IDAHO, INC.BY' SPECIAL ASSESSMENTS TO BE LEVJED AND ASSESSED AGAINST TIIEPROPERTY WITHIN CARlUAGE HilLS SUBDMSION PHASE D BENEFITED BYSUCH ACQUISmON; DECLARING SAID ACQUISITION TO BE NECESSARY ANDDESIRABLE; STA11NG THE TOTAL COST OF THE LOCAL lMPROVB1vffiNTDISTRICT FOR THE ACQUJSlTION AND THE METHOD OF ASSESSMENT; FlXINGA TIME IN WHICH PROTESTS AG.AINST THE PROPOSED ACQUISITION OR THECRBA TrON OF THE LOCAL IMPROVEMENT DISTRICT MAY BE FILED IN THEOFFICE OF THE CJ.1Y CLERK; FJxrNG A TIME WHEN SUCH PROTESTS SHALL BEHEARD AND CONSIDERED BY THE COUNC~; AND DIRECTING NOTICETIIEREOF TO BE GIVEN. WHEREAs~ the City Council of the City of Nampa, Idaho deems it to be inthe best interest of the City to acquire from United Water Idaho, Inc. the water source for Carriage Hills Subdivision Phase II. hereinafter particularly described, which is currentlyundeveloped land within the corporate limits of the City; and WHEREAS, the City Council of the City ofNampa; Idaho deems it necessary and desirable to create .'Local Improvement DisTriCt No. 140 for the Acquisition oCtile WaterSource for Carriage Hills Subdivision Phase Ir' for the purpose of purchasing the waterSOUrce for Caniage Hills Subdivision Phase IT from United Water Idaho; Inc. and providingfor the payment of the cost thereof; and WHEREAS, the total cost of the Local Improvemertt District for theacquisition of the water source for Carriage Hills Subdivision Phase fi-om United WaterIdaho, Inc. is tbe sum of $250 000.00; and WHEREAS:! the City Council proposes to defray the cost of said acquisitionby special assessments to be assessed on a square foot or per lot basis against the property of Carriage Hills Subdivision Phase II benefited by the acquisition of tho water source forCarriage Hills Subdivision Phase n from United Wa~ Idaho, Inc. in the Local ImprovementDistrict to be funned. NOW~ THEREFORE BE IT RESOL VED BY THE :MAYOR ANDCOUNCIL OF THE CI1Y OF NAMP At IDAHO: The City of N ampa, Idaho does hereby declare its intention to acquire fromUnited Water Idaho. Inc. the water SOurce for Caniage Hills Subdivision Phase II, N ampa,Idaho, to be known as; LOCAT r O~J : 4652314 RX TIME 07/20 '04 09 :40 I 1 LC I\lV. ~-4V ( / C-0 V~.l:;) .:;)C 1 U . ;:)1'-' 11\11'-. t:SU I LLK, LLI'-'r H/\ . CVO 000 .L JV rH'-:IL 0/ 1. N~mpa Ci~~ Clerks Office 46~23 14 p. Local Improvement District No. 140 for the Acqui5ition of1he Water Source for Carriage Hills Subdivision Phase!r' the cost of which is to be levied and assessed on a square foot basis against the property of Carriage Hills Subdivision Phase II more particularly described as follows, benefited by such acquisitio~ to-wit: (Legal Description ofCamage Hi13s Subdivision Phase U) Protests against said proposed acquisition or the creation of Local Improvement District No. 140 to be formed to pay for the cost of purchasing the water source for Carriage Hills Subdivision. Phase II from United Water ldaho~ Inc. may be filed in the office of the City Clerk in writing on or before Monday, the 19th day of July, 2004, at 5 =00 p.m. At 7 :30 p.m. on said day in the Council Chambers of City HalJ, 411 3tO Street Souths Nampa, Idaho, such prote$ts shall be heard and considered by the City CounciL The City Clerk is hereby directed to give nonce of the passage of this Resolution; of the time within which proteStS against the proposed acquisition trom United Water Idaho, Inc~ of the water source for Carriage Hills Subdivision Phase n or the creation of Local Improvement District No. 140 to pay for the cost of purchasing the water source may be filed; the date when such protests will be heard fUld considered by the Council; and the total cost to acquire from United Water ldaho~ Inc. the water source for Carriage Hills Subdivision Phase II. Nampa, Idaho; and shall therein refer to this Resolution on file in her office for further information in regard thereto. Said notice shall be published in the official newspaper of the City of N ampa, and 8 copy of such notice shall be mailed to each owner of property located within Carriage Hil1s Subdivision Phase U if the owner be kno~ or to his agent if his agent be known) addressed to such person at his post office address if known or, if his post office address be unknown~ to the post o1nce in Nampa, Idaho. The Clerk shall cause the last publication to be made and said notice shall be mailed at least ten days before July 19, 2004 which is the date set for the expiration of the filing of protestS. She shall file in her office proof of publication of said notice and shaH make and file in her office an affidavit showing the mailing of such notices. PASSED BY THE COUNCIL OF THE CITY OF NAMP A) IDAHO, THIS DAY OFJuly 2004. APPROVED BY TIIE MAYOR OF THE CITY OF NA1v1P A, IDAHO, THIS DA Y OF July 2004. . . Mayo Attest: City Clerk. LOCAT I (IN: 4652314 RX TIME 07/20 '04 09 :30 '-'- I~V.V""V Vf"c....,"" V"-t .Lv'v,""! LI . vr ! 1'11'- ~V I L...LI'\" L...L...r I ,..,n' c.... vv '""vv .... vv ....rH\.:1C 4/ I(Nampa Cit~ Clerks Office 4652314" . 4 ' . . DAH , SU RVEY GROUP 1-450 'East Waterwwe.r $t. Suite: r 50 Meridian. Idaho 8'3642. Phane (2~) 846-8.S70 ' (208) ~S3'9 -,---, , , Project No. 04-067 Parcel II Carriage Hill June 21, 2004 , A,paroe:lofland located in the North Y2 of the SE Y. ofS~on 31, T. 3N., R. 2W., S. Canyon Countyi Idaho!! more particularly described as follows: Commencing at the Yo. comer cOmmon to Section 32 and the said Section 31, from wbich the soufueast comer of said Section 31' ~ $' ~uth Ooo 13.' EaSt 2582,70 feet; thence along the East-West mid~s~tion lin~ South 89~16'20n W~~ $92.20 fc~ to the REAL POINT OF BEGINNING. !pence South 19Q3T'40~' E~ 96.90 feet; .. .., , 11)enee South 40o24~O3~7 East" 92.27 feet; ~~ce :Soutb '36030 ~ 19n East" 118.29 feet; , ,, ', ,,.." ' " Then~'South OO~S4'OO" ~~ 445.00 fce~ , ," ",. '' :.. , ,.. ", ,, ,;: ~:" ,::" : ria~ :South 36002)3'8" Bast,'234.96 feef to a point an the ~t' boUX1dSIy'of sajd secnon , '. " " - "' '" ',':' ." ' :" ' :' " ' , , " .' '' '' .,. ', ' " :: , ii~~ong~~d po~ South 00022'13" But, 395 ,95 f~tt~fue SOUfu 1i16 comer ' :'..' ' eommon'io'smd:Seztions313%id32; : ,:' , , ,::,' .,~.)~":..~:':"":\::::, :,. ":.. ": "" ,. ';:::" ,~:,:", TIieri,ce al~:qg tb.e,SO1i~'bo~dary of the North ~ oithe SE~, South,88c S2I ST.' Wes~ , , '", ' , . " , t " "' ,::, 1223.4(J:feet;. :.;, "' "" ".': "'-" t:' ' . . ' ". ," '' '' '' ".. '' ".. Th~~~,~rtP 300 6~44 ' ~. 17~t; " ,~~:,;...: '. ,\ (~ ... ;~'::::':::~:,~":,~.~,. ', ,. /.'. ,, ;,::'.:;, :, , Thence:'Norili21~38'55~s Wes~ 195.94feettothesouthea&toomerofCarriagemU" :,". "' ":: :.' ' S~~pn::Nq'i::~j(s~~isreoordedinBook 2"6 ofPIats atPage:i:9.~'recbrds o.raw.yon " , '" "' ", ." ,..,.. " ', ,. , '.,: 5~~7~'f!D;3~ ' ,' ":' , ", ": ". -~:~,:,;/~'::~, 'P1.~~,aJq~g'~~:~~e-rlYbOUI1~of9aidsubdivis;ionandc6ntin~g~o~:~h'?J 38155"" .'" .. "', ', " W~~)9~.73!~t; " :' ,' """"",,,,,..,~ ~' '. ", "' ,: :":' :" ' : ThenceNo.rtb9 10 01. West~ 78.29 feet; . "~" ' ': '' '. " ., . ' . ", ', ' , ", ', '; ::,,.. ,: ," ,"" " "" ~, ' :Th~ce ~orth 7a OO~43:J:J W~ 94.64 feet~ , , .., .':" ,, ., ... .. ', ". . " I,, . -. ", ,, " Prof.!II:~iandl land .sut"vevGrj LOCATION :4662314 RX TIME 07/20 1 04 09: 30 , ,~ . ~~~ ~" '-'-''-' ..... ... '-' . '-' ~U"'" ~1'41" L..1VIL...L-I'-, L...L...I I n/" '- VV """'" ... v '-' ...r N\.;IC ::)/ 1 ( N~mpa Cit~ Clerks OFfice 4652314 f. 3 4 . . ' , Thence 34.45 feet along the arc of a. curve to the left~ baving a. radius of ,172.feet. a, central angle of 11 "28' 39,J and a l~ng chord bearing North 12045 '031' West, 34.40 feet; ~ence North 71030)38!t1 East. 131.75 feet; " ' " TI1ence North 38031) 587) Bast1 100.11 feet; , ' Thence ,North S4Q.111 38~' West 100.61 feet; Th~nce North 14044) 17JU East, 146.36 feet; Then~ North 4034 '33" E~ 50.00 feet; ~ce N?~ 85O2S727'1 We~ 67.36 feet; ~r:nce North 1028'46" East, 228.07 feet to a point OD the East-West mid-section line; Thence deParting sa.1d eastalyboundaryNorth 890 16'20" EaSt1 1095.11 feet to theroint ofBe~T1niTJ~tairti~g 37-96 acres .. more or Jess. Sllbj~ to right-of-way for Middleton Road and Iowa Avenue.' , ,.. :', ' " c , , Prepared By: ' Idaho Smve , , ', ,, ,, ," ", '" '" '" ', " " ,, ", , " "" ' .. " .: .., , , ,, " '" ', ' .', : ': ' ,: " .' 0' :', , ' '.. '; , :::c, ' ,, " :' "" :.., , c , , ,:::, ::" , '' ,, : ', ," ,, '' '" ": :, ' '" ' ::.': " ' , ' ,' .., ': '.. "' ", ':' ,, ",', ,, '" ' ," ', ,, ;,' ,.' ', '. ', ', '" ,: ': ', ,, " .' ', '' ': . , ," , T~r~~. ~~~~;" ,~~,' ,, :, , ,: ,:,' :'" ' " ' "" , "":' : ..~.', :" , :' : -" " , .", , " ",:' ,~ ', ', ' ': :, .. , ,," :' '" ", ", ' " 0 " , "' ,,' ::, ', " .., ' , " , ': " ' , ~; , , .. c .. ' ' " :~' ,, ," ::, . "' , ",':\, , ':, ::, ", '' :, , '.', ' ," ~, ", ,, '" ",:".... ':'" ", ,' ," ':' , , , I , ' " ", , '' , , ,: ' ", ' ..' , ," '' " , '.. " " ,~ ' ,:: '' ,' " ",' "" ' ,.., , , ' '" : "::' ," ', , ", , ' , .' ," , ".' ', ,.. .': ~: " , ", ': ', , , ..' ... " " ,," : - " , :' ' : '' ": ", ,, " ,, ,, ", '" :, , LOCAT rON :4652314 RX TIME 07/20 '04 09 :30 I ~.....,- '~V.v"'tV VI/':""";'VLt J..OJ. OJ0 ! J.J . 01"' ! I \I'" DU I LC.r" LLr-rH/\ .c:..VO 000 J..VVJ.. N~mpa C i Clerks Of'fice 4652314 t-'H~t. '30 31 31-- 6/ 17. ... LA 142 117~ 144 .. ... 11S 143 '30 41! 114 .... 210 112 111 110 107 .. 106 106 103 ~Be 96 177 208 159 119 VE1l()e' ~\ '-c...s.st..&. lCW~ '/+ Ir~f' .ss LOCAT I ON: 4662314 RX TIME 07/20 O4 09 :30 I ~ '-L... I ~V . v""tV V f / '-V V~ J.v' vv ! .LJ . 0r ! I'll'.. DV I L-c.ro., L-L-r iHA .~VO vVV ~VV~r Hq!:.(/ 1"( Nampa Cit~ Clerks OfTice 4652314 , .:.... . ..,. ' IDAHO SURVEY GROUP . 8450 EutwaiertQWer St. S~1t= ,SO Merldian. Idaho 83642 Phon. (208) ~-8570 Fax (208) 88+-5399 Project No- 04~Oq7 . Triangle Dairy JWle 21,. 200 . . A paTCel of1and located in the North % of the NE Y1 of Section 31 , T. 3N'1 R. ,2W -1 ~. Canyon CoUnty~ Idaho. more: particularly descn"bed as follows: BEGINN1NG at the ~ comer~on to 'Section 30 and the said Section 31 , fi'om which the northeast corner of said Section 1 bears Nol'$'9OoQO'OQu Eas~ 2646.14 feet~ . . Thence North QOoOO'OO'~ E~ 994.25 feet; ThODce,South QOcQO'OO" East, 795.91 feet; Thence NorU190o00:JOHH Bast, 990.51 feet; ,. . '' '. . ' Thence South OOQOOJ oo~. W. est, 499.64 f~ to a point on the south boundary of th~, North. .' '' . ..~.: of.th~ NE y'~. ' " ... .. ', ,, ,, "' ' 1Jlep.~:a1Qpg said boundEII'Y South 89~38'23.! West 1975_78 feet to 'the c..N 1/16 comer; " ,, ,, .: ':. :, ,;: '..,\ ' , , ' "~en~ Nop:n 90~23'42" West, 1308.00 feet to the Point ofBegi~tting. Conta.~niT1g 41~O8 ' , ': ,' ": ':' . ~s? ril~re ol' l~s ~, $~aY: ~a, rotjuJ.! ditch, and canal :rights-of-way of record or uie., " '' ," ..' ::, "" ' , " ' '' ', ,, ", " , '" ,, ,. '' '' ,~ ' ' , " ", , . ;;;P ':::;':- .: " '~" , ~ ' ,~ .. '... :', ,; , ", '" :" .', ' ' "" ' , " ,, ,, "' , '.., :', ,, ' " ', ', '; ": ,: "" -' ,.. ' , :", "" ': ,::,::",::;-::..~~'" "' ', '" "" " Prep dBy .. ", "' "...- : " " ,.. ', ," ,:.':, :".. \ IdM~ S1:JXVe~'Gi'oup, ~.C. .. ~.., " " ,' ,: ~;, ;,, ', '.' ..., ':' ':' .." ': :: '' ''" , "" '" ", ', ', ,,' ' " " ":' :' " ", "" " ' ': ".. , ," \ ,.':' ", ,: '.. ,, ", '" ,' '' -; "" ,'" "" ,," ':~ '~ ': ' : " ,;.. ," :'.' " '" '' ', :' ::' ' , " " , .. , " '" ", ,, " ,,' ', ", ,, " , , ", ,, ,, ":; , , ' " '.. '' ..' " " , P,r e s 5 j a n 0 CI n Sur ve YO r " , LOCA T I ON : 4662314 RX TIME 07/20 1 04 09 :30 ~'-'- ,~'-".,-"....,-" VI "'-v '30 V""t .Lv'vv ! 1) . 0r ! 1'11'- DV I 1...1:.:.1'- I... I... I Mn. c... vv vVV J.. VV J.. Nampa ci't.~Of'fice 4852314Clerks fI' ... L.. ~ ~.e= l- 'D~ L-l.-142 tJt.?' - ,", ," ~~,/ ::, : : ,:;", ', ," ;", .. " , '. ' ;. I " ~~'" ," ,~ ", ':.;,~. '. . 118 : "' ,., \' '...., '" ', ," '" '. "' , 130 114 112- 110 107108 106 103 18~ V'BROc:t\ll.t~sua. \~wA-hVW - LOCATION ~4652314 RX TIME 07/20 04 09:30 rH'-:IC ~/ 1'( 1~ .. 40(11 30 J I 11- 210 209 179 I ! I-L I\IV. v"-+V V ( / c:.0 VLJ. J.;:). ;:)0 11.) ',;:)1'"" 11\1'" DU I LCf\., LLI'""IHf\ .c::.vo ..:Jvv .J.VV.J.I'""H'-:It:.~/ 1'( Nampd Cit~ Clerks a~~ice 4852314 , " DAH SURVEY GROUP 1450 Ean w.tf:rtQ~r St. Suite 1 SO Maridiat1. Idaho 83642 Phone (108) 846--8510 Fax (208) ,884-S3CJCj Project :N"o. 0+-067 Parcel ill Carnage Hill June 24~ 2004 , A parcel of land located in the Northeast ~ ofSecnon 31, T. 3N.~ R. 2W., B.M., ~apYQn C9unty ~ Idaho, more particularly descnoed as follows: Commencing at the , ' " ,comer ,~ominon to Section 30 and the said Section 31., from which the Northeast comer of , ' ~~d ,SeCtion 3.1 beatS North 90000'0011/ East, 2646.14 feet; thence alons the ~ortb--Sou~ ~d-section line South Ooo2~~42" Bast, 1308.00 feet to the C-N J/16 comer ~,the , , REAL 'POINT OF BEGINNING. , " ' rmmc~ along the South line of the North ~ ~fthe NB Y4 North 89038'23" East, 1950.5.0 feet;, :.. ', '; , ,, , ., ':, ", ,'~~~, Sciutb 00022'36" Eas~ 257.70 feet; . "y:.:~, ;:QCJtb ~orth 89 38'23" East, 263.00 fee , ', ::::~:~: ~6e So ~th~oo22'36" East, 32.80 feet; ' "::~::::::, s n , '' "~, ~c!1;l~~, ~~ 8S? 38 2~ Eas~ 127.00 feet; ::/::':(;::";:,:,.':": ": ,: ', ::::~,' ,\/, ~~ce S~u:ip.'-ooo22~6~~ ~ 160,00 feet; ", '. '.. . .':;~:~,~;;:":~,' '' ", :" ,"" , ,, '' ,, "" '' ,.': ', ''/' ;:,,:~~~e'~~~ 89Q ?~~ ~3~~ Eas~ 305.00 feet to a ~t on tb~~ast li~e '~fsa~d.' , :, ', ~,, "", ' ,:, i:;~: ~?~\~;:'):/': ::::" ,, ," ,:;:;,:~:, ' ": ;,, '~;~/, i",:r, .., Pi~ge Sou$ OO~22'36" East, 840.54 feet to the East ~ QOPler. of said S~ctfori. 3.1;' : '' "' '.", , ::;;',,,?;,:~:"~'::\ 'Ir :(:,..,. '" ,' ".':::;, ,:' , '.',::,:/,;:' ,r~~~~6~:~~~g ~e ~st-West mid.sectioc line South 89,oi6~70J"W~st, 997.5-ife~t :~ ~:,, ":.' '; '::,, , , "' ,.,.. '~ '" " ' \ :Po, ." , .. , '.",:)?;, t:JJ~, ~~*~~' cOfu.er of Verde Hills Subdivisio~ as samei~~C(?~e4 in Book 13 of" .' : ;, :' ';' "" '" ,.., .. , ' " ," ; ~1~t~.a!..~age20 :recor~()fCanyonCounty~Idaho " ,' :,' ,:: !~.: ":: ;, /ih~~e a1~g the ,eXt~or bouDdary of said subdivision :North J. 3 os ~'~o,; w ~t; :"" 7i~i~fe~t; " '' ,, " , 0 :, .' , " " ,'" , ," ",' "" ", ,, ' ., '::' "- ,." "', :::~ "" , , Th~Jlce:N~rth 34Q OOJt West, 133.60 feet; , ,, " , , , ..-::" , 0 " "" , PrQfeSS;Qndl land Surveyors , ", , LOCATION :4652314 RX TIME 07/20 '04 09 :30 I !L.L... 14V.v"-tV V(/c"v V"+ 1.;:).;:),:. IV..::.t"'ll\J1'-.. t5UIL.t:.K, L.L.t'" rHt\.c:..VO ':'00 1.VV.l Nampa Cit~ Clerks Office 4662314 r-H~t. 10/ 1'( P ~ 8 ... , Thence North 5c34'OO" West, 104.25 feet; Thence 94.53 feet along the ,arc of Ii curve to the left, having a radius of 117.25 feet, a:centra1 angle of 460 111 20"3 and a long chord bearing North 28O39'40n W~'9L99 teet; , .Tllence North ?lO4S'19u West, 6.00 feet; , Thence 9"5 AI feet along the arc of a curve to the left, having a radius of 129. feet; a central angle of 42020'20", arid a long chord bearing North 72055'30" West, 93. feet. , , Thence South 8SQ54'20" West) 44.60 feet; ' Then~ 8~ .62 fe~ along the arc of a curve to the right, baving a. radius of 91. fee~a centra1 angle of 52029'20":) and ,a long chord bearing North 67051 '00" West, 80. fee~, " , The~~ North ~1 36"' 18" West,-40 feet; , ':, ," , Thenve 83 :~8 feet along the arc of a curve to the left having a radius of89.40 feet, ,~~en~,m~~ ~f?3O26'18"J an~ a long chord bearlngNorth 68019'20" West, 8~.39 feet; , '" ,, ": '.',,: ' : Th~.South 84c:.57)40)~ West, 213.75 feet; ' d , ,..' . '' '. :,, ':"~' ~ Thence S'ou1h 71053740" West, 190.00 feet; . ,~/; ~Lcei ~~uth 7;006'40" West. 258.00 feci; , ", '(:"::".'""" ,' '" ,; ::: ,::::~:\', Th~~~' i7'~t ~ong ,the arc of a curv~ to 1he right, ba$g ' ~ ~dius qf ~OO5 , ' , f~;~~'t~ang~~ofl02Q23'39'~andalongchordbearingN0$5~'o 41~3O"~W~st, ' "::' i5-6.66feCt~ " "' ,' ,,', '~~":::::'//." '" ,-"::'' ':;~::~;' :::t,:;fb.~~~~~~O9~2~~39"Wes~'~9.50fEet; ' ' '";:~(::::~:::~:::.:~:~:~::~~~!~;:,:;"'~ :", ,: "'::""": " ,: :, '..: ;: :::., :':"J:(jl1.enC;e,7~'~~3:Je(~t."R3.Ong the ate of a curve to the left, ~Yirig a radiUs 0(106.47 , ': "', '" ~ '' _", ,'/ ", ', ' .. ' , : "' : " :(e~t"~ b~AAta4g1e:of 4.!~,11 'OO~\ and a long chord bearing N9~ 21~O5')o.':J Wes~ 74~89 , /~; ~i'/L~: ;:':::" ; ' ," :" ".' .-: ' TheD;~ :N"o~ 41P40'Wes~ 2wOO feet; , " . " ' ".':: : h~~: 8:i 8' ~e~ :al~g the ar ~fa curve to the right, having ~ ~diUsoh 50 , , '.. " " :, f~~~) a ~e~ttaI ,angl~ 'o(29O~O'40)\ and a long chord bearing North 26c4S'20.Wes~ 77.30, , , , .feet. ' '.. ,' '' ,: ,. ~. , , " " .' , ' ', .'" ," ", ,': ' ", ,, ' ,, . LOCATION :4652314 RX TIME 07/20 1 04 09 :30 "~.~~~ """'-"""""'""1" ... "" . """".L.L.J . vr .L I ~I" UV I L-~I \., L-L-I I "", '-"oJ"" """""" ... .... .... ...I M'-::IL:.11/ 1 Nampa Cit~ Clerks Office 4852314 F. S Thence North 11 0 50'00" W~st, 42.84 feet; Thence 94.45 feet along the arc of a curve to the left, haviug a radius of 116. feet, a central angle of 46030~OO1;/j and a long chord bearing North 35O05'OO~~ West, 91.feet;- ' Then~e N'?rth 5 8a 20'OO~';\ West) 240.00 feet; Thetlce North 46O33~OOu West) 166.06 feet to the Northwest comer of said Verde ~l1s Subdivision lying on the Norfh-South mid-section H:ne; Thence along said line North OQO23'42U West, 350.07 feet to ~e Point-of gipnitig. Containing' 55..11 acres, more OT less. PTep~ ~y: I dab.o S ' ', ', '- " , ": ;" , :' ", '' :" ":" ': ". ': '' :, ~':' , ,, " , ", ,, ,, '.. ', ", ', '';-:,:;.');. "' ' :" :' , ': ' :' :.. ...., ":.," ,, , :,' ':::: '~ " ', .. ,: .' " ," "" ', '~ ", ,.. '.. .:, , '" ", ', ,, ,, " ., ':' "" ', , ',. ,; ,. ' .. , ' , ," .' ;", ., ".. ' , .. "," ';, ' :' ',',: ' , " ..., ", ., ,, "" "', ", ., " ,,' .." ", ,, ", ' ", ", ' , ," ,;" ," ", ,, '; '.:" ", , ,, :,:~.":,, ': '' '. " , ', ..: "" ,, , ' ," '~ "' "' ", " , : "' ,, " '' ", , , " .: , . ' ' " ' ,, ', ".. ., ', ,. ., ' " '" :', .., , LOCATION :4652314 RX TIME 07/20 '04 09 :30 11....1... I'IV.v"-tV Vf/c:..v V.&:.+ .L '-.) . '-.)4 1 LJ . ';)1'"'1I'-I(\" PU I LCI\. ,LLt"'rHA .~VO 000 .LVV.L N~mpa C i Clerks Office 4652:3 14 t"'HI.:lt. 12/ 1 7 p. 10 1- . 400' l, ~ i'- t-. ~.... LJ-142. 117 '" vt=" - .. 211 124- :)., '12- 1 8 144 C). V'SlP'&~I\.(..~sue. \ Ow Pr ALJr . LOCATION :4652314 RX TIME 07/20 04 09 :30 , ~ L..L..- I"V. ""'""tv V f / c:...--.) VLt J. V . vLt 1 LJ . 0r 11 'oj!" DV I LCr" LLr ,- H/\ . c:.. VQ ...;)QQ J. VV N ~ m F a C i t ~ C 1 e r k s OF fie e 4 S 523 1 4 r H~t:. 1-:;/ 1'( P . 11 ,t" IDAHO SURVEY GROU, '.50 Watertower St.' Suite ISO' M.,-\cQn, \dahQ 83642.' Phaf\e (208) ;846-~70 .. ' F~ (208) S399 Project Ne. 04...Q,Triangle Dairy Parcel IV , June 24;2004 , : , A p~cel of1a.nd located in the North Y2. of the NE ~ of Section 31 , T.. 3N. 2W'' B.M., Canyon County, Idaho, more particularly described as fa.l1ows: , ' Co~cncing at the comer common to said Sections 29) 30) 32 and the said Sec~on , from which th~ ~ comer common to said Sections 30 and 31 bears Squth , " 90abosOQ:':' West, 2646.14 feet; , , " Thence South ~ooQO'OO" West, 958.24 feet to a point in the center of the " Deer Fhit-Nampa'Canal and the REAL POINT OF BEGINN1NG. , "' , , ~~ ~6ng the: conter of said canat S~uth 47038'42" Rast, 140-20 feet; , ,, , ,' '" ', ,', " , 1);\e;ri~along the ar:c, of a 1000.00 feet radius curve to the right, said curV~ ' , ':: '" " , , liavjrig 'aq' atC 1eri~:ot165.9 feet; a central angle of9Q27)52~~, and a long 'ch0r4 ' ,~' ', ,' ":.. " ~~ch'b~~ $outh 4~o54:J46n Bast, 165.00 feet; " ', ':: ' ;" :,.. ," \ '' '~, ,: '" "" ';'-- :': ,~, "' , Thk~ S~uth,381?10'42u East, 643.40 feet; : ,, "~~":;:\/', ,' ": ,;;' ': ,..:..,:..:~, :. T~~Qe31qng *~ arc ora 1200.00 feet radius curVe to th~rig1it"saidcurve'~ , " ,, "' " I' ' ::: ,, " ax~ 1~gth,of203.14,feet, a Central angle,of9Q41 Jl58'~, and aJong ch~rir : .' , w~~b'pears,Sci~fu33Q 19~~ast 202.90 feet; , " ", ,: :' ..,::',::\~:,:;:~:,, " 0 " .. ".. ';:," " Th~ce So~~48. 2842, East,.438.20feet; . ".','. ,: ".::,~/"~~":/,~~::::;~~~,(:),..,::';, ''" , :," '. ,~ ,, , ., ' i:" ":::':' " i :::::"~, ;;':;\/,,:,:;/' ~c~:~o~t1t'40~P0~42n East, 20.46 feet to a point on th~ SOuth bo~duY pf" , ,;, . '' '; "~" ," ", ,.,:-..' ,.." "' '~:; ?;?b:;~: ~~, ~~i~:~f;,~,l'iBy.; : .. .. ' ' .'i' : ~: ;'//~:::: /~The;~ci ~: ~,~~~~~ th~ 6e~ter of said canal aloDo the said South bO~A;" ~~'' /, '' ': .. :','" :::,. "'"~" I.'~,lJ'~~Q , ' ,?"::"::' t:'(-:S~~~:: ~~3~ ~~! ~~t , ' 650.39feet; , ' ', :,; ,, " ,, '' " ,' ,. ,, ',' ;:"-' " : Th.eh~e ~ep,arting said South boundary North 00000'00" East, 79LO1 feet; , ,, , ",, ,' ': ,: ,:.. .. :", ' '' ,: " ', ','"" ', : '. '.. ' ,,, ,~;:~:(: n~ce:s.outh90Q OO7 ~' West, 699.feet; ::,:/'..:, ,, .. ", '" , '" ", ,, ," "" ', , ..' '" '' .. ,' ', .. .. ' ", ' ,, ." ' prafe$$ional Land Surveyor$ LOCAT ION :4652314 RX TIME 07/20 )04 09 :30 ! L.L I'IV.vLfV v ( / 0::.0 VLf 1. V . vL+ . ':::'1-' 11'11\. DU I LI:.K, LLI-' Nampa Ci~~ Clerks OfflGe rHf\ . c.vo 000 ..LVV..L I""'Hl.:It. 14/ F. 124662314 Thence North 00000'0017 East, 504.53 feet to a point on 'the North boundary of said Section 31; Thence North 90000'00)) East, 402.27 feet to the Point of Begi'QniT1 Prepared By: Idaho ~urvey Group, P . , ,, , D~ Terry Pe~gb., P . , ;'.. .. ,..,, ", ,, ' ,..~,:' ,, ", ", :" '' , , ~; ,,,"" , 0 ' " , 0 ' , ,, ,:; ", "' ', ', ," ', '." ', ": :, , ," ,, ,': ", ,' ', ", -" , ' ,, :; , " ;:.. 0 ,;j: ~ :' '" ," ,' ,: ': ~'~ ''" ", '.. ' , I , '':, ,:, ': ," '::, ', ,, '.. ".. , " ': " .. ,; 0 .. " '~' , , '" ,',, ' ;" 0 , ' ,' ;," :..,:" , :, ," ::: '" "'" ' ":, ,;;:" ""~'" ,:.' ' ,: ," ':' '" ~': , :, \, ..' . .. ", ~ ': " ," '.. , i ' , "' : :,.', ', ' ", ,( ,' ::':~':( ,: .., " '.! ~., ." , ,: (': , '" ," ,: .. " '' ..' '" ,' "/;:::::: ,:~' :'::,) ,: ,,:--:' .. "" , : 0 , '' " :~" 0 " ' ": '::"" ".. ":;;' , "~; , , ,': I ~ ' ."," , .. . ' I.. ' :' ',. ' ,," \" '" , , , ' ,, :'.", ', ,, ," ", .., ", ', ,' .., ', ,, ', "" ', , ,..-: ", ", ,, ,, ', "" ," . ": ..', ,, ," ' . ''; ", ,. ,, ,, :, ", ., :,: ", '" ,, , ", ,, ,, ' " 0 ",,, ,:':, ,, ", , LOCAT ION :4652314 RX TIME 07/20 '04 09 :30 r 1 U: 1\10. ~40 U (/c.:::S . U4 1 ~ : ~4 1LJ : ::)j-I1 NK I:)U I LeI"'(, LLj-I Nampa Ci~~ Clerks Of~ice~ ~ ,.l, . . . ' 114 ~Ih' LA V-e 112 141 110 107' 1~ 106 1a3 ~se VeJlQ6 ~\'-L.$ LOCA T ION: 4652314 \Ot..l" 1 2 Sc-&. '-6" 168 rHX :cU~ .:::S~~ lUVl4652314 I-'HGt 30 2." ") 2..- 15/ 1 7 1'7~ . ~\.?::~.:~. ~30 ..... 209 179 5 lIt ..)$.. 134 133 1JZ RX TIME 07/20 '04 09 :30 I lL..L... '"'/V.v""tV vr/c;.v v""t .!.v.v""t . 0r 11 \If, DU I LCr'i.., L.U""'rHA .~VO 000 ~VV~ N&mpa Cit~ Clerks Office 4652314 t"'Hl.::It. 1 b/ 1"( p. 14 , , IDAHO SURVEY GROUP 14$0 Wate~W4r St. " Sutu: I SO M~ridlan ' tdaho 83~2 Phone (208) 'S46-857() " , Fax (208) "88"'5399 , Project No. 04-067 Shank 10.00 Acre June'24 ~ 2()04 A parcel of land located in the Northeast 14 ofSectian 31 j T. 3N.R. 2W~, B. Canyon County, Idaho, more particularly described as follows: Commencing at the comer common to Sections 29, 32 and the said Section 31, from which the Y4 OO1:D.efcommon to saj~ S~ctions 30 and 31 bears South 90000"00" West, 2646.14 feet; thenc So~tJl90o00~oon Wes~ 1360.52 feet to the REAL POINT OF BEGINNING. Thence South OOOOO~OOI' West; 504.53 feet; Tben~e North 9QoQO)OOU East, 699.13 feet; , ' , , Thenc~ South' (jooOO'OO" East; 291.38 feet; , , ' Jhen~~ ~~:uth OOQO():I OO~ ~est, ~90.S1 f~~; , ", ' ," " , "" ' Thence North OOOOOtOO:J Eas~ 795.91 feet to a pomt on the North bo~ of said .. , :Set;ttan31;," , '' : "." '::; , :~h~C~:~prtA"~6q' OO"EfISt. 291.3 g feet to the POintof Be ~g,~~g "" , ", ' .' 10~OOacies more or less. :' , :' "" ", '.. "" :,, "."'' ".. , , ,' , ;~' ': "", ,:' '" : :", .', ,' : '.. ' '' ,' " , '" ',' ".' , ' ,, ,' " ,'" ,, '::'. ,: '~" . ,: '" \''" ~~,~~;' "::'::~:/: ' t~~:S~c~'Ck6~~,,~O. ' , ", ,, "' I" , : '" ," ,' ,.- " , "" ,, ," ' '' .. '" ,.'" ,"" "'" , ' ':' " , ' '" ,, , ,, " ', .", ".. ' :"' :', ' " ,, ,, ., ", '' '' "; ~: :..:, ', ", ", " ..' ": ', , ', ,, ," '. ,:, . , ', , ', ', ,, ,, ,. ", , .P p .ft # .. .. ., . ~ '" ~ ', - - -I t:'~. - .. - 'oO - - - LOCA T I ON : 4652314 RX TIME 07/20 '04 09 :30 I ~ L..L- I ~V . ""'-.V V I ' '-"'"V-' ....""-"'-. ~!.J.VI !I'jl" DUILC!\.., LLr- N~mp~ Cit~ Clerks Office H/\ . c:..vv vvv J-_~'VJ-4652314 I 11"-+'-"~':lor, .~. \It-l.A~ p. 1 Q '30 2.' 2,.. . ' ..- " , ~2a . ,~O ~14 "-- 210 110 101. 108 106 "03 ~8e 117 209 vS1l()f? ~\u..s.s~.179 c'/~151 134 'If- $... \eW~ ,,~ 159 133 1S2 16' LOCA T ION: 4652314 RX TIME 07/20 '04 09: EXHIBIT E United Water Idaho Proposed Journal Entry to Record Carriage Hill Sale (Assumes Closing As of October 15, 2004) Account Number Debit Credit UNITED WATER IDAHO: Advanced Plant- Reverse original cost plant; reverse book amount of advance liability; reverse accum depr on refunds made; book cash from City of Nampa Plant in Service 101-000 354 905. Advances for Construction 252-000 341 305. Accumulated Depreciation 108-010 630. Cash 131-000 969.47 354 905.354 905. Contributed Plant- Reverse original cost plant; reverse CIAC; reverse amort of CIAC Plant in Service 101-000 127 010. Contributions in Aid of Construction 271-000 127 010. Accumulated Depreciation 108-010 881. Accumulated Amortization of CIAC 272-000 881. 138,892.138,892. Miscellaneous Plant & Other: PIS Meters 101-000 000. Accumulated Depreciation 108-010 231. MJ Cost #2537 & 2842 186-025 5,409. Legal & I PUC Filing Expenses 143-000 500. Refunds Payable to Carriage Hill closing 232-000 10,400. Cash 131-000 078. Total UWID Debits and Credits 309.309. 518,107.518 107. Total Cash 36,047. EXHIBIT F Paul Raymond, P. Public Works Director Carla Carrell Executive Assistant Public Works Department August 6, 2004 Joe Miller 420 W. Bannock Boise, ID 83702 RE: Carriage Hills Subdivision Dear Mr. Miller: The City ofNampa has an agreement with United Water for the city to purchase the water system at Carriage Hills Subdivision. I have reviewed the application that is being submitted to IPUC concerning this transaction. The city has the resources and the operational expertise to provide safe and reliable water service to this subdivision. This transaction is consistent with the vision Nampa has to provide water to any parcels of property within the scope of our capabilities. As the Public Works Director of the City ofNampa, I believe this transaction is the best move, not only for Carriage Hills Subdivision, but also for the orderly growth of the entire city. Thank you for your assistance. Sincerely, Paul Raymond, P . Public Works Director City of Nampa . 411 Third St. So., Nampa, 10 83651 (208)468-4420 raymondp~ci.nampa.id. EXHIBIT G July 30, 2004 Idaho Public Utilities Commission 472 W. Washington Boise, ID 83720 RE: United Water Idaho sale of Carriage Hill water system to City of Nampa Dear Commissioners: I am writing this letter in support of the proposed transaction between United Water Idaho and the" City ofNampa that would transfer the ownership of the water system serving the Carriage Hill subdivision from United Water to the CityofNampa. I supporting and urge your approval of the transaction for the following reasons: The city ofNampa has recently annexed the Carriage Hill subdivision property owned by members of Carriage Hill LLC. As contemplated in the transaction, the interconnection of the existing Carriage Hill water system with the City ofNampa s water system will provide a second source of supply for the system. This second source is required by the Idaho Department of Environmental Quality rules. The second source of supply ensures a reliable water supply and enables our continued expansion of the subdivision. Without the connecting line as the second source we, as developers, will be required to spend a considerable amount of money to drill and equip a new well as the second source. As I understand it, Nampa s water rates are somewhat lower than United Water rates. I" have reviewed the Application prepared by United Water and believe it correctly describes the transaction and surrounding circumstances. $2~L Wilham D. T ate President, Development Group, Inc. Managing Member If I can provide any further information, please contact me at 461-2556. Sincerely, Development Group, Inc. P.O. Box 1184 . EXHIBIT H United Water Idaho 8248 West Victory Road O. Box 190420 Boise, Idaho 83719-0420 telephone 208-362-7300 facsimile 208-362-1479 August 6, 2004 Dear Resident of Carriage Hills Subdivision: As you know, United Water Idaho has owned and operated the domestic water system in the Carriage Hills Subdivision since 1999. Recently, United Water and the City ofNampa entered into an agreement enabling the City of N ampa to purchase the domestic water system from United Water. We anticipated that the sale would be complete by mid-October 2004. Thereafter, the City s municipal water system will be connected to the Carriage Hills system. There, of course, should be no disruption of water service to you. United Water believes the sale, and subsequent operation of the system by Nampa, will be beneficial for these reasons: Nampa has adequate source of supply and operational capability to provide safe and reliable water service to the subdivision. Connection ofNampa s distribution system to the Carriage Hill domestic water systeln will provide a second source of supply as required by Department of Environmental Quality rules thus insuring reliable water supply to the subdivision and permitting further expansion of the subdivision. The rates charged by N amp a for domestic water service are lower than the rates charged by United, and customers within the subdivision will therefore experience a decrease in the cost of domestic water service. Because United Water is regulated by the Idaho Public Utilities Commission, United Water has filed an Application with the Commission for approval of the sale. A complete copy of the proposal is available at the Commission s office at 472 West Washington Street, Boise Idaho. It will also be available on-line at the Commission s website: http://www. puc. state .id. us/FILEROO M/water/water .htm You can also file a comment on the Application via the Commission s website at: http://www.puc.state.id.us/scripts/polvform.dll/ipuc Or mail comments to: Idaho Public Utilities Commission O. Box 83720 Boise, Idaho 83720-0074. Sincerely, Gregory P. Wyatt, General Manager