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