AGREEMENT FOR CONTRIBUTION TO CAPITAL WATER PROJECTS

AGREEMENT FOR CONTRIBUTION TO CAPITAL WATER PROJECTS Agreement entered into this ________ day of ______________________, 20 , by and between ___________________________________________________ (hereinafter “Property Owner”) and EAST COCALICO TOWNSHIP AUTHORITY, a municipal authority created by the Township of East Cocalico of Lancaster County, Pennsylvania, with its registered office at 102 Hill Road, Denver PA 17517, in said Township (hereinafter “Authority”). A. Authority operates and manages municipal sanitary sewer and water facilities within the Township of East Cocalico and West Cocalico, Lancaster County, Pennsylvania ("Township"). B. Property Owner desires to install water facilities to serve Property Owner's property located at tax parcel no. _______________ and known as ________________________ ________________________________ and containing approximately _________ acres (the "Property") and to connect the same to the Authority's water system. C. Authority provides for reservation of capacity, allocation, installation and ongoing provision of water and sanitary sewer services to users of its utilities within the Authority's service area pursuant to the terms and provisions of the Authority's published Rates, Rules and Regulations of the East Cocalico Township Authority Water System adopted May 13, 1999, as amended, and the Authority's published Rates, Rules and Regulations of the East Cocalico Township Authority Sewer System adopted May 13, 1999, as amended. D. The Subdivision and Land Development Ordinance of the Township of East Cocalico provides, inter alia, that the Property Owner shall provide capacity letters with respect I:\CAPITAL CONTRIBUTIONS\AGREEMENT FOR CONTRIB TO CAPITAL WATER PROJ.doc 8/07 Page 1 of 7 to both sanitary sewer and water as part of the project approval process. E. From time to time, the Authority has not had sufficient capacity to fulfill the water requirements as set forth in Property Owner's Capacity Review and Request Application. F. The Authority has communicated its desire to secure additional water sources and its intent to undertake the exploration, design, permitting, engineering and construction phases of development of a new water supply system ("Capital Water Projects"). Property Owner has determined that it is in Property Owner's interest to participate in and finance part of the cost of the Capital Water Projects in order to acquire the needed capacity within Property Owner's selfimposed deadlines. NOW, THEREFORE, in consideration of the promises, terms and conditions of this Agreement more fully set forth below, and further, intending to be legally bound hereby, the parties agree as follows: 1. Property Owner's Capacity Review and Request Application is attached hereto as Exhibit "A" and made a part hereof. 2. Property Owner’s “Water Contribution” in the amount of $___________ per EDU (equivalent dwelling unit) totaling $____________ for residential projects or $____________ per GPD (gallons per day) after 183 GPD minimum (i.e. one EDU) totaling $____________ for non-residential projects is payable as follows: a. Upon execution of this Agreement by Property Owner, Property Owner shall deliver twenty-five percent (25%) of the total Water Contribution (“Deposit”) by good check, bank draft, certified funds, wire transfer or irrevocable letter of credit for the benefit of and made to Authority, on the Authority’s form attached hereto, a true and correct copy of which shall be provided to Authority, to secure Property Owner’s obligation to pay the balance Page 2 of 7 I:\CAPITAL CONTRIBUTIONS\AGREEMENT FOR CONTRIB TO CAPITAL WATER PROJ.doc 8/07 of Deposit as required herein. Any cash deposit shall be delivered to Authority. The Authority shall place the Deposit, if paid in cash, in an interest-bearing escrow account, with interest to be credited to Property Owner, and which shall be disbursed as hereinafter provided. b. Within fifteen (15) business days of receipt of written notification from Authority, Property Owner shall furnish to Authority an irrevocable letter of credit in the amount of the balance due of the Water Contribution for the benefit of and made to Authority, in a form acceptable to Authority, a true and correct copy of which shall be provided to Authority, to secure Property Owner’s obligation to pay the balance of the Water Contribution as required herein. c. The cash balance of all letters of credit provided to Authority as required herein is due within fifteen (15) business days of receipt of written notification of balance due, or fifteen (15) days after such notice is mailed, whichever is earlier. Authority may apply the Water Contribution to those specific uses as the Authority may from time to time deem appropriate for Capital Water Projects. 3. Upon payment of the balance of the Water Contribution as provided in Paragraph 2.c. herein which is in addition to all other charges as set forth in the Rates, Rules and Regulations of the East Cocalico Township Authority Water System, including, but not limited to, then current tapping fees, and as Property Owner properly processes its applications and otherwise complies with the Rates, Rules and Regulations of the East Cocalico Township Authority Water System; Authority shall provide Property Owner with the required capacity documents for the Property for water to enable Property Owner to secure final plan approval from Township. Property Owner acknowledges that the Property entails extension of and/or connection to the Authority's water system at Property Owner's sole expense and requires prior Page 3 of 7 I:\CAPITAL CONTRIBUTIONS\AGREEMENT FOR CONTRIB TO CAPITAL WATER PROJ.doc 8/07 approval by Authority. 4. Tapping fees as set forth in the Rates, Rules and Regulations of the East Cocalico Township Authority Water System are due upon application for connection to the Authority’s water system. 5. Property Owner shall be in default under this Agreement if it fails to furnish an irrevocable letter of credit as provided herein or make any other acceptable form of payment as provided herein when due or otherwise fails to perform any of its obligations under this Agreement. If Property Owner is in default, then Authority shall be entitled to payment of the Deposit whether paid in cash and/or by a letter of credit, with all interest accrued thereon, as liquidated damages. 6. Property Owner hereby acknowledges and agrees that this Agreement does not constitute or guarantee subdivision, land development and/or sanitary sewer or water use approval as regulated by any municipality, the Authority, or its agents or any other agencies. 7. Property Owner assumes all risk relating to water capacity including, but not limited to, the fact that when needed by Property Owner, a water supply may not be available from Authority. 8. This Agreement shall be binding upon and inure to the benefit of Property Owner and Authority and their respective successors, transferees and assigns. 9. Authority may terminate this Agreement for any reason upon ten (10) days’ prior written notice to Property Owner. Upon termination, Authority will refund all deposit monies plus interest to Property Owner and/or Authority will release any letters of credit securing Property Owner’s obligation to pay the Deposit or balance of Water Contribution as required herein. Page 4 of 7 I:\CAPITAL CONTRIBUTIONS\AGREEMENT FOR CONTRIB TO CAPITAL WATER PROJ.doc 8/07 10. Notices to the parties shall be proper if in writing, addressed to the parties at the addresses set forth below, and delivered by first class mailing, recognized overnight delivery service (such as Federal Express), or by electronic mail, receipt of which is affirmatively acknowledged by the addressee. If to Property Owner: with a copy to: If to Authority: East Cocalico Township Authority 102 Hill Road Denver, PA 17517 water@ecocalicotwpauth.com with a copy to: Lucy F. Dowd, Esquire Appel & Yost, LLP 33 North Duke Street Lancaster, PA 17602 ldowd@appelyost.com I:\CAPITAL CONTRIBUTIONS\AGREEMENT FOR CONTRIB TO CAPITAL WATER PROJ.doc 8/07 Page 5 of 7 IN WITNESS WHEREOF, each party has caused this Agreement to be executed in its name and on its behalf by its duly authorized representative the day and year first above written. EAST COCALICO TOWNSHIP AUTHORITY By: ______________________________________ Chairman Attest: ___________________________________ Secretary (Authority Seal) _________________________________________ Property Owner By: ________________________________ (SEAL) Attest: _____________________________ (SEAL) I:\CAPITAL CONTRIBUTIONS\AGREEMENT FOR CONTRIB TO CAPITAL WATER PROJ.doc 8/07 Page 6 of 7 COMMONWEALTH OF PENNSYLVANIA ) ) SS: COUNTY OF LANCASTER ) day of , 20 , before me, a Notary Public for On this the Commonwealth of Pennsylvania, residing in the County of Lancaster, personally appeared , who acknowledged himself to be the Chairman of EAST COCALICO TOWNSHIP AUTHORITY, a municipality authority created by the Township of East Cocalico of Lancaster County, Pennsylvania, and that he as such Chairman being authorized to do so, executed the foregoing instrument for the purposes therein contained by signing the name of EAST COCALICO TOWNSHIP AUTHORITY by himself as Chairman. WITNESS my hand and Notarial Seal the day and year aforesaid. _________________________________________ Notary Public COMMONWEALTH OF PENNSYLVANIA ) ) SS: COUNTY OF LANCASTER ) day of , 20 , before me, a Notary Public for On this the Commonwealth of Pennsylvania, residing in the County of Lancaster, personally appeared ______________________________________________who acknowledged herself/himself to be the ________________________________ of _____________________________________, a corporation, and that she/he as such __________________________________ being authorized to do so, executed the foregoing instrument for the purposes therein contained by signing the name of the corporation by herself/himself as _______________________________. WITNESS my hand and Notarial Seal the day and year aforesaid. _________________________________________ Notary Public I:\CAPITAL CONTRIBUTIONS\AGREEMENT FOR CONTRIB TO CAPITAL WATER PROJ.doc 8/07 Page 7 of 7