20060721Bruce Smith letter to Scott.pdf

MOORE SMITH BUXTON & TURCKE, CHARTERED
ATTORNEYS AND COUNSELORS AT LAW
950 W. BANNOCK STREET, SUITE 520
BOISE, ID 83702
TELEPHONE: [phone] FAX: [phone]
STEPHANIEJ. BONNEY
SUSAN E. BUXTON
MICHAEL C. MOORF
PAuLl. FITZER
BRUCE M. SMITH
PAULA. TURCKE'
TAMMY A. ZOKAN
JOHN J. McFADDEN*t
o/Counsel
. Also admitted in Oregon
~Also admitted in Washington0 Also admitted in South Dakota
+ Also admitted in New Mexico
July 20, 2006
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Mr. Scott Woodbury
Deputy Attorney General
Idaho Public Utilities Commission
472 W. Washington Street
Boise, ID 83720
Re:Case No. UWI-06-
Dear Scott:
In its responses to requests for information from Staff, the City explained that Kastera had
met with the City regarding annexation of its lands into the City and the providing of municipal
water to Kastera. The City also noted that Kastera was developing a Memorandum of
Understanding ("MOU"to address it plans. The City recognizes that the timing of the May 24
2006, letter to UWI from Kastera asking that UWI serve the Trailhead development
unfortunately, has caused a lot of confusion for everyone.
The circumstances under which the May 24, 2006 letter from Kastera to UWI was sent
UWI remains perplexing. Similarly, the statements in the letter that Kastera needs service
immediately" are also confusing to the City given its discussions with Kastera. However, I
believe all of this may be irrelevant at least in the near term.
On July 7, 2006, the City and Kastera had yet another meeting in which Kastera and the
City reiterated their intent that the Kastera land would be annexed into the City. They also
discussed the planned development of the City Municipal Water System such that Kastera could
be served. On July 14 2006, the City received from Kastera the attached MOU. Among other
things, it clearly expresses Kastera s intent to be annexed and that the City will be providing
water service to Kastera. It further explains that Kastera s need for water service only include, at
this point, starting construction of mains by July 4 2007, hardly what could be considered
immediate." Further, the MOU notes that the location, sizing and capacity of the system remain
subject to discussions between the City and Kastera. At this time, there is insufficient
information from Kastera to even be able to determine for certain the specifics of design or
SIZIng.
Mr. Scott Woodbury
July 20, 2006
Page 2
The City is not in a position to explain the letter to UWI from Kastera. However, this
MOU now confirms what the City has been explaining about the development of the Kastera
property and the City Municipal Water System. It seems unnecessary, given the MOU, to go
through the process of amending UWI's Certificate of Convenience and Necessity No. 143
because Kastera wants its land to be annexed. By copy of this letter to UWI, the City is asking,
as a matter of avoiding unnecessary proceedings, that UWI voluntarily withdraw its application.
Should UWI not do so, the City is requesting that the application be denied. It would not be
prudent, nor would it be in the best interest ofUWI's customers , for UWI to pursue such a course
of action given this MOU.
Sincerely,
MOORE SMITH BUXTON
& TURCKE, CHARTERED
Bruce M. Smith
BMS/clb
Enclosure
cc:Joe Miller, Esq.
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(Draft fl.1 Submitted to the City of Eagle ()n July 13, 2006)
Trailhead Planned Community Addition to the City
Eagle, Idaho
RECEIVED & FILED
CITY OF EAGLE:MEMORANDUM OF UND RS ANDING
between
THE CITY OF EAGLE, IDAHO
and
KASTERA, LLC
JUL 1 4 2006
File:
Route to:
1. PURPOSE: The purpose of this Memorandum of Understanding (MOU) is to
establish a framework for urban community development planning and tIming of
development improvements on Kastera s 660 acre Trailhead property and other
Kastera properties which are located in the Eagle foothills In close proximity to
the City of Eagle, Idaho. It is in each party's interest to coordinate planning and
development efforts and to a omplish a more effective integrated community
development program.
2. AUTHORI1Y AND OWNERSHIP a LAND: Both the City of Eagle and Kastera,
LLC has the authority to enter into pre\annexation agreements, development
agreements, contracts and MOUs. Ka ra, LLC has several affiliated companies
that own and control large land holdings ithin the area north of Eagle, Idaho.
Kastera has the authority to commit these ffiliated companies to this MOU.
3. MUTUAL BENEFIT: All parties to this MO agree that it is to their mutual
interest and benefit to work cooperatively as lanning and development proceeds
on the 660 acre Trailhead property and other Kastera properties. All parties also
agree it is to their mutual benefit to work cooperatively to construct municipal
water system improvements to serve the 660 acre Trailhead property and other
Kastera properties In the Eagle Foothills.
4. FRAMEWORK FOR URBAN COMMUNITY DEVELOPMENT BY THE CITY
EAGLE:
City of Eagle Actions
A. The City of Eagle desires to annex the 660 acre Trailhead property and
other Kastera properties into the City of Eagle in order to facilitate
community development and expand water service to properties within
the foothills area. Therefore, the City of Eagle will provide an annexation
path for Immediate annexation of the 660 acre Trailhead property which
will lead to further annexation of additional Kastera properties. The Oty
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of Eagle will annex the 660 acre Trailhead property and additional Kasteraproperties on or before September 10, 2006
B. Upon annexation, the City of Eagle will zone the 660 acre Trailhead
property and additional Kastera properties as Mixed Use with a maximum
gross density limitation of two residential dwelling units per gross acre.
C. The City of Eagle will take necessary actions to permit, approve andauthorize construction of the water system improvements to commence
on or before July 4,2007 in order to provide municipal water service to
the 660 acre Trailhead property and additional Kastera properties. This
water service shall be sufficient to allow community development on the
660 acre Trailhead property and additional Kastera properties at a
maximum gross density of two residential dwelling units per gross acre
plus other related and supportive community development land uses
functionally related to the Trailhead Planned Community and additional
Kastera properties.
D. The City of Eagle will accept and process PUD and platting applications
from Kastera LLC to commence community development actions on the
660 acre Trailhead property and additional Kastera properties allowing
construction of community development improvements to begin no later
than July 4,2007.
E. The City of Eagle will authorize a late-comers agreement for Kastera
LLC to recover applicable up-front water system improvement costs and
related utility improvement costs. The location" sizing and capacity of the
utility system improvements shall be mutually agreeable to both parties.
F. The City of Eagle will not Impose a moratorium on development or
take actions to delay community development of the Kastera properties
that are annexed into the City of Eagle.
G. The City of Eagle will recognize that the municipal ordinances In affect
at the time of annexation shall apply to and govern the community
development actions on the Kastera properties that have been annexed
into the City of Eagle.
,,~W , v , ..No. 041j P. 4
5. FRAMEWORK FOR URBAN COMMUNITY DEVELOPMENT BY KASTERA, LLC:
Kastera. bL,C Actions
A. Kastera, LLC will apply for annexation into the City of Eagle on or
before July 31, 2006.
B. Kastera, LLC will provide funding to the City of Eagle to pay a fair
share of the municipal water system cost to serve the 660 acre
Trailhead property and additional Kastera properties. The fair sharecontribution Will be determined by a subsequent analysis and
agreement. Funding will be available to meet the July 4, 2007
construction start date for water mains to serve the Trailhead property
and additional Kastera properties. Kastera will provide sufficient up-
front funding to allow the City of Eagle to finalize water system
expansion plans in order to meet the July 4, 2007 construction start
date for water mains to serve the Trailhead property and additional
Kastera properties. The location, sizing and capacity of the utility
system Improvements shall be mutually agreeable to both parties.
C. Kastera, LLC will work cooperatively with the City of Eagle to develop
master planned communities that will set an example of outstanding
foothills development in a public-private partnership.
D. Kastera, LLC will limit the overall residential density to two dwelling
units per gross acre.
E. Kastera, LLC will utilize the Mixed Use zoning to achieve flexibleclustered development, open space preservation, provision of regional
and community facilities, provision of regional and community selVices
plus community development themes and designs that are acceptable
to the City of Eagle and Kastera, LLC.
F. Upon annexation, Kastera, LLC will submit a letter to the Idaho Public
Utilities Commission (PUC) requesting water service from The City of
Eagle. Between the time of signing of this MOU and the time of
annexation, Kastera, Ll.C will reimburse the Oty of Eagle for applicablelegal fees related to the PUC coordination efforts.
G. The amount of funding that Kastera allocated to United Water
Company for water system improvements shall be reallocated to the
City of Eagle for water system improvements.
6. IT IS MlJTUALL Y AGREED AND UNDERSTOOD BY ALL PARTIES THAT: ThisMOU instrument in no way restricts the parties from participating in similar
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activities with other public or private agencies, organizations, and indiViduals.Modifications of this MQU shall be made by mutual consent of the parties, by theissuance of a written modification, signed and dated by all parties, prior to any
changes being performed.
7. TERM OF THIS MEMORANDUM OF UNDERSTANDING AND TERMINATION:
It is the intent of this MOU to be the catalyst that stimulates additional binding
agreements such as a pre-annexation agreement or a development agreement.
As such, any Party, in writing may terminate their participation in this MQU inwhole, or in part, at any time before the date of annexation which shall also bethe expiration date of this MOU.
8. BOTH PARTIES UNDERSTAND THAT: Additional documents, contracts, andagreements will have to be negotiated and signed in order to implement this
MOU.
9. IN WITNESS TREREOF, The parties hereto have executed this Agreement asof the date written below:
Honorable Nancy C. Merrill, Mayor Date
Sharon K. Bergmann, Eagle City Clerk Date
Kastera, bY;
Var Reeve Date
Wayne S. Forrey Date