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Phase IV SIA (Recorded)SUBDIVISION IMPROVEMENT AGREEMENT THIS AGREEMENT, made and entered into this 2.3 day of 9-01-Y , 2002, by and between CITY COUNCIL, CITY OF KALISPELL, MONTANA,Party of the First Part and hereinafter referred to as the CITY, and SOMERS LAND COMPANY, a corporation located at 1995 Third Avenue East, Kalispell, Montana 59901, Party of the Second Part and hereinafter referred to as DEVELOPER. WITNESSETH: THAT WHEREAS, the Developer is the owner and developer of a new subdivision known as Ashley Park, Phase IV, located in Kalispell, Montana in the NE 1/4, SE 1/4 of Section 19, Township 28N, Range 21 W, Flathead County, Montana; and, lQ WHEREAS, the City has conditioned it's approval of the final plat of Ashley Park, Phase IV, J 6c,n the conditions as set forth in the Preliminary Plat of the Subdivision being completed and all improvements, as cited in "Exhibit ", have not been completed at this tim and the Developer wishes to bond for the completion o those improvements set forth in "Exhibit'; and, WHEREAS, the City's Subdivision Regulations require that a subdivider shall provide a financial security of 125% of the estimated total cost of construction of said improvements as evidenced by an estimate prepared by a licensed professional engineer included herewith as "Exhibit B"; and, r, WHEREAS, the estimated total cost of construction of said remaining improvements is the sum of $ 195,164.56 . NOW THEREFORE, in consideration of the approval of the final plat of said Subdivision by the City, the Developer hereby agrees as follows: 1. The Developer shall deposit as collateral with the City a Letter of Credit, or other acceptable collateral as determined by the City Council, in the amount of $ 243,955.70 . Said Letter of Credit or other collateral shall have an expiration date of at least sixty (60) days following the date set for completion of the improvements, certifying the following: a. That the creditor guarantees funds in the sum of $ 243,955.70 , which represents 125% of the estimated cost of completing the required improvements in Ashley Park, Phase IV. b. That if the Developer fails to complete the specified improvements within the required period, the creditor will pay to the City immediately, and without further action, such funds as are necessary to finance the completion of those improvements up to the limit of credit stated in the Letter of Credit; 2. That said required improvements shall be fully completed by October 15 2002 . Page 1 2002204 ,5✓-20 3. That upon completion of the required improvements, the Developer shall cause to be filed with the City a statement certifying that: a. All required improvements are complete; b. That the improvements are in compliance with the minimum standards specified by the City for their construction and that the Developer warrants said improvements against any and all defects for a period of one (1) year from the date of acceptance of the completion of those improvements by the City; C. That the Developer knows of no defects in those improvements; d. That these improvements are free and clear of any encumbrances or liens; e. That a schedule of actual construction costs has been filed with the City; and, f. All applicable fees and surcharges have been paid. 4. The Developer shall cause to be filed with the City copies of final plans, profiles, grades and specifications of said improvements, with the certification, of the registered professional engineer responsible for their preparation, that all required improvements have been installed in conformance with said plans and specifications. IT IS ALSO AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS, TO WIT: That the Developer shall provide for inspection of all required improvements by a registered professional engineer before the Developer shall be released from the Subdivision Improvement Agreement. That if the City determines that any improvements are not constructed in compliance with the plans and specifications, it shall furnish the Developer with a list of specific deficiencies and may withhold collateral sufficient to insure such compliance. If the City determines that the Developer will not construct any or all of the improvements in accordance with the plans and specifications, or within the required time limit(s), it may withdraw the collateral and employ such funds as may be necessary to construct the improvement(s) in accordance with the plans and specifications. The unused portions of the collateral shall be returned to the Developer or the crediting institution, as is appropriate. That as improvements are completed, the Developer may apply to the City for a release of part of the collateral deposited with the City. The proportion of the collateral released may not exceed the proportion which the improvements completed represent of all originally required improvements; otherwise, said Letter of Credit may not be withdrawn until released by the City. That this agreement shall inure to the benefit of and be binding upon any successors in interest, heirs, or assignees. Page 2 2002204 /5SD 0 IN WITNESS WHEREOF, the Parties to this agreement have hereunder set their hands and seals the day and year herein before written. ASHLEY PARK, PHASE IV SOMERS LAND COMPANY By: (Title) STATE OF MONTANA, COUNTY OF FLATHEAD On this I 0 0 day of Su, W , 2002, before me, a Notary Public for the State of Montana, personally appeared r L i4 e. -.,,e /,1 known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notary Seal this day and year first above written. NOTARY PWUC-MONTANA (Sear* v � * R aMKAsp . ,a MM OwimExpire& II5 ((: � ++�cF Notary ublic for the State of Montana Residing at KAL,s Pe.t-(. My Commission Expires MA_2c03 This agree ent is hereby approved and accepted by the City of Kalispell this c'day of , 2002. MAYOR, CITY OF KALISPELL ATTEST: By: Finance Director Page 3 2002204155-00 EXHIBIT "B" CERTIFICATION OF WORK TO BE COMPLETED ASHLEY PARK, PHASE IV SUBDIVISION ROADS COMPLETED TO DATE July 11, 2002 Item No. Description Unit Measure Estimated Quantity Unit Price Total Price QUANTITY COMPLETED TOTAL COST COMPLETED 101 Unclassified Excavation C.Y. 6,035 $ 1.60 $ 9,656.00 6,035 $ 9,656.00 102 Stabilization Fabric S.Y. 7,871 $ 0.80 $ 6,296.80 7,871 $ 6,296.80 103 Select Sub -Base, 3" - Pit Run Gravel C.Y. 4,418 $ 9.00 $ 39,762.00 4,418 $ 39,762.00 104 Crushed Base, 3/4" Crushed Gravel S.F. 72,636 $ 0.27 $ 19,611.72 0 $0.00 105 Hot Plant Mix Asphalt 4" - Two Lifts S.F. 65,718 $ 0.88 $ 57,831.84 0 1 $0.00 106 Curb and Gutter L.F. 3,550 $ 7.25 $ 25,737.50 0 $0.00 107 Sidewalk 5' Wide w/ Prepared Base S.F. 17,900 $ 2.90 $ 51,910.00 0 $0.00 SUBTOTAL ITEMS 101 - 107 $ 210,805.86 $ 55,714.80 WATER SYSTEM Item No. Description Unit Measure Estimated Quantity Unit Price Total Price QUANTITY COMPLETED TOTAL COST COMPLETED 201 8" PVC Water Main L.F. 1,995 $ 20.00 $ 39,900.00 1,995 $ 39,900.00 202 8" Gate Valves and Boxes EACH 7 $ 825.00 $ 5,775.00 7 $ 5,775.00 203 Fire Hydrant w/ Aux. Valves EACH 6 $ 2,425.00 $ 14,550.00 6 $ 14,550.00 204 Tees & Misc. Fittings EACH 14 $ 300.00 $ 4,200.00 14 $ 4,200.00 205 1" Water Services EACH 50 $ 550.00 $ 27,500.00 50 1 $ 27,500.00 SUBTOTAL ITEMS 201 - 205 $ 91,925.00 $ 91,925.00 SEWER SYSTEM Item No. Description Unit Measure Estimated Quantity Unit Price Total Price QUANTITY COMPLETED TOTAL COST COMPLETED 301 8" PVC Sewer Main L.F. 594 $ 16.00 $ 9,504.00 594 $ 9,504.00 302 12" PVC Sewer Main L.F. 1,268 $ 20.00 $ 25,360.00 1,268 $ 25,360.00 303 4' Diameter Manhole w/ Ring & Cover EACH 8 $ 1,000.00 $ 8,000.00 8 $ 8,000.00 304 4" Sewer Services EACH 50 $ 500.00 $ 25,000.00 50 $ 25,000.00 SUBTOTAL ITEMS 301 - 304 $ 67,864.00 1 $ 67,864.00 STORMWATER DRAINAGE Item No. Description Unit Measure Estimated Quantity Unit Price Total Price QUANTITY COMPLETED TOTAL COST COMPLETED 401 10" PVC Storm Drain L.F. 741 $ 12.00 $ 8,892.00 741 $ 8,892.00 402 Catch Basins w/ Frames & Grates EACH 3 $ 450.00 $ 1,350.00 3 $ 1,350.00 SUBTOTAL ITEMS 401 - 402 $ 10,242.00 $ 10,242.00 MISCELLANEOUS WORK Item No. Description Unit Measure Estimated Quantity Unit Price Total Price QUANTITY COMPLETED TOTAL COST COMPLETED 501 Topsoil S.Y. 3,000 $ 2.25 $ 6,750.00 0 $0.00 502 H droseed S.F. 40,000 $ 0.05 $ 2,000.00 0 $0.00 503 Street Signs EACH 3 $ 200.00 $ 600.00 0 $0.00 SUBTOTAL ITEMS 501 - 503 1 1 $ 9,350.00 $0.00 EXHIBIT "B" ASHLEY PARK, PHASE IV JULY 11, 2002 1 OF 2 PAGES 2002204 (S S�O UTILITIES COMPLETED TO DATE July 11, 2002 Item No. Description Unit Measure Estimated QuantityUnit Price Total Price QUANTITY COMPLETED TOTAL COST COMPLETED 601 Utilit Trench L.F. 2,500 $ 3.00 $ 7,500.00 2,500 $ 7,500.00 602 Furnish/install 2" Conduit L.F. 5,300 $ 0.90 $ 4,770.00 5,300 $ 4,770.00 603 Furnish/Install 3" Conduit L.F. 2,900 $ 1.60 $ 4,640.00 2,900 $ 4,640.00 604 Furnish/install 4" Conduit L.F. 2,700 $ 2.05 $ 5,535.00 2,700 $ 5,535.00 605 Single Phase Transformer Vault EACH 6 $ 500.00 $ 3,000.00 6 $ 3,000.00 606 3 Phase Transformer Vault EACH 2 $ 1,100.00 $ 2,200.00 2 $ 2,200.00 607 Street Li hts EACH 7 $ 1,3001.00 $ 9,100.00 0 $0.00 SUBTOTAL ITEMS 601 -607 $ 36,745.00 $ 25,445.00 ENGINEERING, SURVEYING, UTILITY COMPANIES - PERMITS, FEES Item No. Description Unit Measure Estimated Quantity Unit Price Total Price I QUANTITY COMPLETED TOTAL COST COMPLETED 701 Telephone Utility Centu let LUMP SUM 1 $ 11,300.00 $ 17,300.00 100% $ 17,300.00 702 Electrical Power Flathead Electric Co-op) LUMP SUM 1 $ 36,000.00 $ 36,000.00 `100% $ 36,000.00 703 MDEQ Review Fee LOT 50 $ 100.00 $ 5,000.00 100% $ 100.00 704 FRDO Final Plat Fee LUMP SUM 1 $ 625.00 $ 625.00 100% $ 625.00 705 Engineering, Design LUMP SUM 1 $ 25,663.00 $ 25,663.00 100% $ 25,663.00 706 En ineerin , Construction LUMP SUM 1 $ 8,554.00 $ 8,554.00 50% $ 4,277.00 707 Surveying, Construction LUMP SUM 1 1 $ 10,693.00 $ 10,693.00 50% $ 5,346.50 708 Surveying, Legal LOT 50 $ 100.00 $ 5,000.00 100% $ 100.00 SUBTOTAL ITEMS 701 - 708 $ 108,835.00 $ 89,411.50 TOTAL PROJECT BUDGET ORIGINAL TOTAL ESTIMATED COST OF CONSTRUCTION AMOUNT COMPLETED PRIOR TO BONDING AMOUNT OF REMAINING WORK AMOUNT OF BOND (125% OF REMAINING WORK) AMOUNT OF WORK COMPLETED TO DATE PERCENTAGE OF WORK COMPLETED TO DATE AMOUNT OF WORK REMAINING ORIGINAL BOND AMOUNT AMOUNT OF BOND TO BE RETAINED (125% OF REMAINING WORK) BOND AMOUNT TO BE RELEASED AMOUNT PREVIOUSLY RELEASED AMOUNT TO BE RELEASED AT THIS TIME $ 535,766.86 $ 340,602.30 $ 535,766.86 $ 340,602.30 $ 195,164.56 $ 243,955.70 $ 340,602,30 64% $ 195,164.56 $ 243,955.70 $ 243,955.70 AS ENGINEER OF RECORD FOR ASHLEY PARK, PHASE IV, 1 CERTIFY THAT THE WORK LISTED HEREIN IS CORRECT. IN ADDITION, I CERTIFY THAT THE ASSOCIATED COSTS ARE REASONABLY ACCURATE ESTIMATES OF THE RESPECTIVE COSTS OF THE WORK. THE VALUE OF CONSTRUCTION AND OTHER WORK COMPLETED TO DATE IS ESTIMATED TO BE: $ 340,602.30 THE TOTAL VALUE OF THE REMAINING WORK, SERVICES AND FEES IS ESTIMATED TO BE: $ 195,164.56 SECURITY HELD AT 125% OF THE REMAINING COSTS SHOULD BE IN THE AMOUNT OF: $ 243,955.70 THEREFORE, IT IS IN ACCORDANCE WITH THE SUBDIVISION IMPROVEMENTS AGREEMENT TO REDUCE THE TOTAL AMOUNT OF THE SECURITY HELD BY: $0.00 DENNIS k,;CARVERI k_ ALL IMPROVEMENTS SHALL BE COMPLETED BY OCTOBER 15, 2002 EXHIBIT "B" ASHLEY PARK, PHASE IV JULY 11, 2002 2 OF 2 PAGES STATE OF MONTANA, I ss County of Flathead -Pb AT 200226q f 55 l c Recorded at the request' ofr(/� J . this day of , 20' I 2- at l '� _ o'clock and recorded in the records of Flathead Count rate of Montana. Fee $ 3V Pd. �,¢�t ✓ u�r/J' o�tb%L.d�_ w . / / . . iitx • Z51r7r�1� //_L� ._ _ em. • VALLEY BANKOFKALISPELL awvBuly 12, 2002 IRREVOCABLE LETTER OF CREDIT NO. 1225 TO: The City of Kalispell ATTN: Pam Kennedy, Mayor FROM: Valley Bank of Kalispell 41 Third Street West PO Box 48 Kalispell, MT 59903-0048 RE: Irrevocable Standby Letter -of -Credit No. 1225 AMOUNT: $243,955.70 EFFECTIVE DATE: July 12, 2002 EXPRIATION: December 16, 2002 Dear Mayor Kennedy: We hereby establish a standby Irrevocable Letter of Credit in your favor for the sum not exceeding,a total of $243,955.70 for the account of Dennis Carver, Somers Land .Company, Inc. and Ashley Park, Phase IV Subdivision. The required improvements for which this letter applies are enumerated as exhibit "A", attached. Drawn on the Letter of Credit shall be made by the City of Kalispell upon its written statement signed by a City Commissioner and in the following form: RE: Valley Bank of Kalispell Irrevocable Standby Letter of Credit No. 1225 Dated July 12, 2002 The City of Kalispell hereby drawn under said Letter of Credit No. 1225 in the amount of $243,955.70. Said amount is being drawn to pay for the cost of stated specific improvements which were to be completed as set for in the attached Development agreement dated July 12, 2002 and signed by Pam Kennedy, Mayor. The City as given written notice to Dennis Carver, Somers Land Company, Inc. of its failure to particular improvements no so completed,,a copy of which written notice is attached. Such draft and supporting documents shall be presented at Valley Bank of Kalispell, 41 Third Street West, P.O. Box 48, Kalispell, Montana 59903-0048. P.O. BOX 48 • KALISPELL', MT 59903-0048 406-752-71 23 ® FAX 406-752-7320 WWW. VALLEY BAN KMT. CO MEMBER FDIC This Letter of Credit shall terminate and expire either (a) upon the delivery to the bank of the written certificate by the City of Kalispell stating that Dennis Carver, Somers Land Company, Inc. has satisfactorily completed the improvements for said Phase IV Subdivision, as referred to, or (b) Decemberl6, 2002, whichever date is the sooner. , The amount of this Letter of Credit may be reduced, from time to time, as improvements as listed on exhibit "A" are completed and verifies by a Certificate of Completion by the Public Works Department of the City of Kalispell. This Letter of Credit is subject to the Montana Uniform Commercial Code and the Uniform Custom and Practice for the Documentary Credits (1983 Revision) International Chamber of Commerce Document No. 400. �^9s3k44 Yik t; Valley Bank of Kalispell rn •*' ••'• • Allan Aronson, Senior Vice President •Tia��� ATTEST 0 Christina Marie Mauroni RE: Dennis Carver, Somers Land Company, Inc. Phase Four Subdivision Letter of Credit No. 1225 The foregoing Letter of Credit is hereby approved and accepted. Dated this day of July 2002. Pam KennedyfMayor