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SUBJECT: DAVIDSON HIGHLINE DITCH COMPANY, PERMIT FEE WRITE -OFF <br />DATE: SEPTEMBER 15, 2014 <br />PAGE 2 OF 2 <br />The City and the Ditch Company entered into an Agreement in 2013 enabling the Ditch <br />improvements related to the City Improvements. This Agreement required payment of <br />the $29,000 capitalized maintenance and replacement fee and reimbursement of the <br />Company's legal fees. This Agreement is similar to the agreement the Takoda <br />Metropolitan District signed with the Ditch Company in 2011 enabling piping of the <br />eastern portion of the Ditch, which agreement also required the District to pay a <br />capitalized maintenance and replacement for that portion of the Ditch. <br />The City Attorney has concluded the inclusion of the above language in Section 2.1 <br />obligates the City to pay the Ditch Company's permit fee because the agreement <br />necessary for the City Improvements is specifically excluded from the general <br />Subdivider obligation to obtain and pay for permits needed for the development. <br />Further, the Agreement with the Ditch Company that provides for the fee relates to the <br />City Improvements and the developer is likely not responsible for the outcome of a <br />negotiation where they were not directly involved. <br />RECOMMENDATIONS <br />Staff recommends the Finance Committee direct the Finance Department to write -off a <br />developer debt of $32,338 to the Davidson Highline Ditch Company for permitting costs <br />to pipe a portion of the Davidson Highline ditch and construct a regional trailhead within <br />the Steel Ranch South subdivision. <br />ATTACHMENTS: <br />1. Subdivision Agreement <br />2. Ditch Company Agreement <br />CITY COUNCIL COMMUNICATION <br />7 <br />