2025 MOU/Aspen Creek West Ph 1/Nelson (NR)Recording Requested By and
After Recording Return to:
Kalispell City Clerk
P.O. Box 1997
Kalispell, MT 59903
MEMORANDUM OF UNDERSTANDING
THIS MEMORANDUM OF UNDERSTANDING (the "Agreement"), made and entered
into this c� 0 day of Q6Q.► - , 2025, by and between the CITY COUNCIL, CITY OF
KALISPELL, MONTANA (the "City"), NELCON, INC., a Montana Corporation, located at P.O.
Box 5370, Kalispell, Montana 59903 (the "Contractor"), and 520 THREE MILE DRIVE
ASSOCIATES, LLC, a Delaware limited liability company, located at 940 Emmett Avenue, Suite
200, Belmont, California 94002 (the "Subdivider").
WITNESSETH:
THAT WHEREAS, Contractor is the builder of record of certain improvements described herein
within a new subdivision owned by Subdivider, known as ASPEN CREEK WEST - PHASE 1 located
in the Northwest Quarter of the Northeast Quarter of Section 11, Township 28 North, Range 22 West
P.M.M., Flathead County, Montana, as legally described on "Exhibit A" attached hereto (the
"Subdivision"); and,
WHEREAS, Contractor has completed the infrastructure improvements in the City right-of-way
within the Subdivision as described on "Exhibit B" attached hereto (the "City Infrastructure"); and
WHEREAS, the City has conditioned its approval of the final plat of Aspen Creek West - Phase
I (the "Final Plat") upon Contractor providing a five-year warranty period (the "Warranty Period")
related to the City Infrastructure, beginning on the date that is the later of the recording of the Final Plat
or acceptance of the City Infrastructure improvements by the City; and
WHEREAS, the City's Subdivision Regulations require that a contractor shall provide
financial security equal to 20% of the total value of public infrastructure constructed in the form of
either a Surety Bond, a Certificate of Deposit (CD) or an irrevocable Letter of Credit issued by a
bank licensed to do business in the State of Montana (LC) (each referred to as the "Warranty
Bond"); and
WHEREAS, Contractor cannot obtain a Warranty Bond for longer than a two-year period; and
WHEREAS, City, Contractor and Subdivider desire to enter into this Agreement to assure
Contractor's commitment to renew the Warranty Bond beyond the initial two-year term or otherwise
provide appropriate replacement security to the Warranty Bond for the full Warranty Period.
MEMORANDUM OF UNDERSTANDING
ASPEN CREEK WEST - PHASE 1
NOW THEREFORE, in consideration of the approval of the Final Plat by the City, the
Contractor and Subdivider hereby agree as follows:
As collateral for the Warranty Bond, Contractor shall deposit with the City a Surety Bond, CD
or LC, or other acceptable collateral as determined by the City Council (the "Collateral"), in
the amount of $308,443.00. The initial Collateral, shall have an expiration date of at least two
(2) years following recording of the Final Plat, and shall certify the following:
a. That the creditor of the Collateral guarantees funds in the amount of $308,443.
b. That if the Contractor fails to complete any required repairs or replacement of the City
Infrastructure during the Warranty Period, the creditor will pay to the City immediately,
and without further action, such hinds as are necessary to finance the completion of those
repairs up to the limited amount of credit stated in the instrument;
2. Contractor and/or Subdivider agree to provide the City with approved replacement Collateral no
later than sixty (60) days prior to the expiration date of the existing Collateral instrument. Failure
to provide the replacement Collateral is a breach of this Agreement and said breach would be cause
for the City to execute on the Warranty Bond.
3. Prior to the Surety Bond company issuing replacement Collateral to the initial two-year Warranty
Bond, City and Contractor shall confirm in writing that there are no outstanding repairs or
replacement of the City Infrastnicture needed.
4. By acknowledgement of the Surety Bond company referenced below, they are aware that a breach of
this Agreement constitutes cause for the City to execute on the Warranty Bond.
IN WITNESS WHEREOF, the Parties have hereunto set their hands and seals the day and year
herein before written.
Contractor: NELCON, INC,
a Montana Corporation
By: , .
"'Mike P. Wlirte, President
[signatures continue on following page]
MEMORANDUM OF UNDERSTANDING
ASPEN CREED WEST - PHASE 1 2
Subdivider: 520 Three Mile Drive Associates, LLC,
a Delaware limited liability company
By: VPDC 2015, LLC,
a Delaware limited liability company,
its manager
By:
Name: Debra L. Perry A
Its: Vice President
Surety Bond Company Acknowledtement:
Company Name:
C:
By: _
Name:
Its:
MAYOR, CITY OF KALISPELL ATTEST:
MAYOR CIT LERK
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MEMORANDUM OF UNDERSTANDING
ASPEN CREEK WEST — PHASE 1
Subdivider: 520 Three Mile Drive Associates, LLC,
a Delaware limited liability company
By: VPDC 2015, LLC,
a Delaware limited liability company,
its manager
By:_
Name:
Its:
Surety Bond Company Acknowledgement:
Company Name: Old Republic Surety Company
o`er r'convoq�rq `:i 1. '�
' 9 ` SAL M,
.o
e: James E. Ma'esk 11 u
Its: Attorney -in -Fact
Cam:
MAYOR, CITY OF KALISPELL
MAYOR
ATTEST:
� , 40
18°"2
MEMORANDUM OF UNDERSTANDING
ASPEN CREEK WEST - PHASE 1 3
STATE OF MONTANA
COUNTY OF
On this day of
personally appeared
of
CONTRACTOR ACKNOWLEDGEMENT
2025, before me, a Notary Public for the State of Montana,
known to me to be the
, whose name is subscribed to the foregoing
instrument and acknowledged to me that he/she executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal this day and year first
above written.
Notary Public for the State of Montana
Printed Name
Residing at
My Commission Expires
�3 13 kyj 11 11 11,11 111 1
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to
which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California
County of Placer
On i U i 04 / ` s. before me, 1 v v trt-------- , Notary Public, personally
appeared Debra L. Perry , who proved to me on tlybasis of satisfactory evidence to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is
true and correct.
WITNESS my hand and official seal.
Signature
MEMORA
Seal
J. TRUONG�
COMM. # 2388951
L NOTARY PUBLIC 9 CAyFORMIA
SACRAMENTO COUNTY
COMM. ExP. JAN. 28. 2026
ASPEN CREEK WEST — PHASE 1
4
CONTRACTOR ACKNOWLEDGEMENT
STATE OF MONTANA
COUNTY OF �-i{7-f7` ft-b
On this %U day of C-1- 4.-0'r , 2025, before me, a Notary Public for the State of Montana,
personally appeared �C z p /� j x ,known to me to be the Ti' y;
Of _ �1 �/c , whose name is subscribed to the foregoing
instrument and acknowledged to me that he/she executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal this day and year first
ibove written.
Notary Public for the Sta
Printed Name S'I�1 U
Residing at /tj"l V
My Commission Expires
f of Montana
A U 4 4 f IZ--
SHAUivA UNGER
yrPo►+A uHo�
NOTARY PUBLIC for the
NOSARig( 9
State of Montana
N� SEAL
Residing at Marion, MT
r`
9�OFP
My Commission Expires
October 30, 2028.
SUBDIVIDED ACKNOWLEDGEMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to
which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California
County of
On before me, Notary Public, personally
appeared , who proved to me on the basis of satisfactory evidence to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is
hue and correct.
WITNESS my hand and official seal.
Signature
Siv:ature of Notary Public Seal
MEMORANDUM OF UNDERSTANDING
ASPEN CREEK WEST — PHASE 1 4
EXHIBIT A
Legal Description
A TRACT OF LAND BEING A PORTION OF TRACT 2 OF CERTIFICATE OF SURVEY NO. 16428, ON
FILE AND OF RECORD IN FLATHEAD COUNTY, MONTANA, LOCATED IN THE NORTHEAST ONE
QUARTER OF SECTION 11, TOWNSHIP 28 NORTH, RANGE 22 WEST, PRINCIPAL MERIDIAN,
MONTANA, CITY OF KALISPELL, COUNTY OF FLATHEAD, MONTANA; MORE PARTICULARLY
DESCRIBED AS FOLLOWS:
BEGINNING AT THE SOUTHWEST CORNER OF SAID TRACT 2; THENCE NO3°28'39"E, ALONG THE
WEST BOUNDARY LINE OF SAID TRACT 2 AND THE EAST BOUNDARY LINE OF THE PLAT OF
SPRING CREEK ESTATES 1, ON FILE AND OF RECORD IN FLATHEAD COUNTY, MONTANA, 842.63
FEET TO A POINT ON THE SOUTH BOUNDARY LINE OF PARCEL B OF CERTIFICATE OF SURVEY
NO. 4218, ON FILE AND OF RECORD IN FLATHEAD COUNTY, MONTANA; THENCE S86°37'02"E,
ALONG SAID SOUTH BOUNDARY LINE, 317.35 FEET TO THE SOUTHEAST CORNER OF SAID
PARCEL B; THENCE NO3°28'47"E, ALONG THE EAST BOUNDARY LINE OF SAID PARCEL B, 120.60
FEET TO THE APPROXIMATE THREAD OF SPRING CREEK; THENCE S41°15'55"E, 182.55 FEET;
THENCE S55008'17"E, 150.35 FEET; THENCE N68°51'37"E, 256.17 FEET TO THE APPROXIMATE
THREAD OF SPRING CREEK AND A POINT ON THE EAST BOUNDARY LINE OF SAID TRACT 2 OF
CERTIFICATE OF SURVEY 16428 AND THE WEST BOUNDARY LINE OF THE PLAT OF ASPEN
CREEK SUBDIVISION PHASE 2, ON FILE AND OF RECORD IN FLATHEAD COUNTY, MONTANA;
THENCE S06010'28"W, ALONG SAID WEST BOUNDARY LINE OF THE PLAT OF ASPEN CREEK
SUBDIVISION PHASE 2, 317.10 FEET; THENCE S06° 12'35"W, CONTINUING ALONG SAID WEST
BOUNDARY LINE OF THE PLAT OF ASPEN CREEK SUBDIVISION PHASE 2,426.99 FEET TO THE
SOUTHWEST CORNER THEREOF, SAID POINT ALSO BEING THE NORTHWEST CORNER OF THE
PLAT OF TWO MILE TRACTS PHASE 2, ON FILE AND OF RECORD IN FLATHEAD COUNTY,
MONTANA; THENCE S06°07'15"W, ALONG THE WEST BOUNDARY LINE OF SAID PLAT OF TWO
MILE TRACTS PHASE 2,114.95 FEET TO THE SOUTHEAST CORNER OF SAID TRACT 2 OF
CERTIFICATE OF SURVEY 16428, SAID POINT ALSO BEING THE NORTHEAST CORNER OF THE
PLAT OF ASPEN KNOLL SUBDIVISION PHASE 1, ON FILE AND OF RECORD IN FLATHEAD
COUNTY, MONTANA; THENCE N86°51'11 "W, ALONG THE SOUTH BOUNDARY LINE OF SAID
TRACT 2 AND THE NORTH BOUNDARY LINE OF SAID PLAT OF ASPEN KNOLL SUBDIVISION
PHASE 1, 766.54 FEET TO THE POINT OF BEGINNING.
MEMORANDUM OF UNDERSTANDING
ASPEN CREEK WEST - PHASE 1
EXHIBIT B
City Infrastructure
[1-page Summary dated 9/22/25 attached hereto]
MEMORANDUM OF UNDERSTANDING
ASPEN CREEK WEST - PHASE 1 6
Project Name: Aspen Creek West Subdivision - Phase 1
WGM Project Number: 210313 n
Owner: 520 Three Mile Drive Associates 4& W G M G R O U P
Date: September 22, 2025 V
SUMMARY FOR FINAL CONSTRUCTION QUANTITIES AND COSTS - CITY INFRASTRUCTURE
NA -
Final
Construction
Quantity
Final Construction Costs
city -owned
Quantity
City -Owned Infrastructure
Line Item Item Description Unit
Unit Price Total
unit Price Total
Schedule 2 - Roads & Sidewalks
2.1 3" Minus Select Subbase Material CY 2130
$37.00
$78,810.00
2,130
$37.00
$78,810.00
2.2 3/4" Minus Base Course Material Cy 1420
$39.00
$55,380.00
1,420
$39.00
$55,380.00
2.3 Asphalt Pavement (4" Thickness} ..._ SY 7015
$29.00
$203,435.00
7,015
$29.00
$203,435.00
2A Curb & Gutter LF 4310
$22.00
$94,820.00
4,310
$22.00
$94,820.00
2.5 Standard Sidewalk -4"Thick with 6' Base SF 20850
$6.00
5125,100.00
20,850
56.00
$125,100.00
2.6 Driveway and Path Approach, SF 510
$9.00
$4,590.00
510
$9.00
$4,590.00
2.7 Mailbox Pullout LS 1
$7,500.00
$7,500.00
1
$7,500.00
$7,500.00
2.8 ADA Truncated Domes EA 18
$550.00
$9,900.00
18
$550.00
$91900.00
2.9 Saw -Cut Existing Asphalt LF 540
$3.00
$1,620.00
540
$3.00
$1,620.00
2.10 Asphalt Pavement (Water Sewer Trench Replacement) SY 170
$29.00
$4,930.00
170
$29.00
$4,930.00
SCHEDULE 2 TOTAL
$586,085.00
$586,085.00
Schedule 3 -Water System
3.1 8" PVC Water Main LF 1650
$76.00
$125,400.00
1,650
$76.00
$125,400,00
3.2 8" Dia. 11.25' 0.1. Elbow EA 3
$925.00
$2,775.00
3
$925.00
$2,775.00
3.3 8" Dia. 22.5' D.I. Elbow EA 7
$925.00
$6,475.D0
7
$925.00
$6,475.00
3.4 B" Dia. 45' D.I. Elbow EA 4
$925.00
$3,700.00
4
$925.00
$3,700.00
3.5 8"x8" MJxMJ D.I. Tee EA 1
$1,100.00
$1,100.00
1
$1,100.00
$1,100.00
3.6 B" MJxMJ Gate Valves, Boxes, & Apron EA 13
$2,000.00
$26,000.00
13
$2,000.00
$26,000,00
3.7 12" PVC Water Main LF 20
$210.00
$4,200.00
20
$210.00
$4,200,00
3.8 12"xB" MJxMJ D.I. Tee EA 2
$4,000.00
$8,000.00
2
$4,000.00
$8,000.00
3.9 12" MJxMJ Gate Valves, Boxes, & Apron EA 4
$4,600.00
$18,400.00
4
$4,600.00
$18,400.00
3.10 Valve Box Extension and Centering Donut EA 1
$570.00
$570.00
1
$570.00
$570.00
3.11 6" Fire Hydrant Assembly EA 4
$6,600.00
$26,400.00
4
$6,600.00
$26,400.00
3.12 3/4" Domestic Water Service (with standard meter pit lid) EA 52
$3,000.00
$156,000.00
52
$3,000,00
$156,000.00
3.13 Connect to Existing Water Main Stubs EA 3
$2,400.00
$7,200.00
3
$2,400.00
$7,200,00
3.14 2" Water Irrigation Service and Meter Pit LS 1
$9,350.00
$9,350.00
1
$9,350.00
$9,350.00
SCHEDULE 3 TOTAL
$395,570.00
$395,570.00
Schedule 4 - Sewer System
4.1 Connect to Existing EA 2
$2,000.00
$4,000.00
2
$2,000.00
$4,000.00
4.2 Install 48" Dia. Manhole w/Cover & Concrete Collar EA 11
$4,580.00
$50,380.00
11
54,580.00
$50,380.00
4.3 4" Sanitary Sewer Service EA 52
$2,000.00
$104,000.00
52
$2,000.00
$104,000.00
4.4 8" SDR35 PVC Sewer Main (within ROW) EA 1250
$95.00
$118,750.00
1,250
$95.00
$118,750.00
4.5 8" SDR35 PVC Sewer Main (outside ROW) EA 460
$57.00
$26,220.00
460
$57.00
$26,220.00
4.6 Abandon and Cap Ex. FM in Camp Crooke (inc. asphalt patch) LS 1
$4,250.00
$4,250.00
1
$4,250.00
$4,250.00
SCHEDULE 4 TOTAL
$307,600.00
$307,600.00
Schedule 5 - Stormwater Management
5.1 30" I.D. Storm Basin (w/ drive -over curb casting, apron, & rings) EA 14
$2,600.00
$36,400.00
14
$2,600.00
$36,400.00
5.2 48" I.D. Storm Basin (w/ drive -over cover casting, collar, & rings) EA 3
$5,200.00
$15,600.00
3
$5,200.00
$15,600.00
5.3 48" I.D. Storm Basin (w/ solid cover casting, collar, & rings) EA 12
$4,800.00
$57,600.00
12
$4,800.00
$57,600.00
5.4 12" PVC, SDR 35 Storm Main LF 1360
$101.00
$137,360.00
1,360
$101.00
$137,360.00
SCHEDULE 5 TOTAL
$246,960.00
$246,960.00
Schedule 6 - Dry Utilities, Street Lighting, and Signage
6.1 Street Signs LS 1
$6,000.00
$6,000.00
1
$6,000.00
$6,000.00
SCHEDULE 6 TOTAL
$6,000.00
$6,000.00
BASE BID TOTAL
$1,542,215.00
$1,542,215.00
NOTES
WARRANTY AND MAINTENANCE BOND AMOUNT OF 20%OF CITY -OWNED INFRASTRUCTURE _ $308,443.00
* ,t
* OLD
REPUBLIC SURETY COMPANY
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS: That OLD REPUBLIC SURETY COMPANY, a Wisconsin stock insurance corporation, does make, constitute and
appoint: Jaclyn Kruse, James E. Majeskey II, Thomas C. Denison, Jennifer Martinez Ibarra,
James Clegg, Dylan Arre, Casey L. Lund, Victoria Crist, Liliana Castrejon Perez, Taj Hoard -Sire of Spokane, WA
its true and lawful Attorney(s)-in-Fact, with full power and authority for and on behalf of the company as surety, to execute and
deliver and affix the seal of the company thereto (if a seal is required), bonds, undertakings, recognizances or other written obligations in the nature thereof,
(other than bail bonds, bank depository bonds, mortgage deficiency bonds, mortgage guaranty bonds, guarantees of installment paper and note
guaranty bonds, self-insurance workers compensation bonds guaranteeing payment of benefits, or black lung bonds), as follows:
ALL WRITTEN INSTRUMENTS
and to bind OLD REPUBLIC SURETY COMPANY thereby, and all of the acts of said Attorneys -in -Fact, pursuant to these presents, are ratified and confirmed.
This appointment is made under and by authority of the board of directors at a special meeting held on February 18, 1982.
This Power of Attorney is signed and sealed by facsimile under and by the authority of the following resolutions adopted by the board of directors of the OLD
REPUBLIC SURETY COMPANY on February 18,1982.
RESOLVED that, the president, any vice-president or assistant vice president, in conjunction with the secretary or any assistant secretary, may appoint
attorneys -in -fact or agents with authority as defined or limited in the instrument evidencing the appointment in each case, for and on behalf of the company to
execute and deliver and affix the seal of the company to bonds, undertakings, recognizances, and suretyship obligations of all kinds; and said officers may
remove any such attorney -in -fact or agent and revoke any Power of Attorney previously granted to such person.
RESOLVED FURTHER, that any bond, undertaking, recognizance, or suretyship obligation shall be valid and binding upon the Company
(i) when signed by the president, any vice president or assistant vice president, and attested and sealed (if a seal be required) by any secretary or assistant
secretary; or
(ii) when signed by the president, any vice president or assistant vice president, secretary or assistant secretary, and countersigned and sealed (if a seal be
required) by a duly authorized attorney -in -fact or agent, or
(iii) when duly executed and sealed (if a seal be required) by one or more attorneys -in -fact or agents pursuant to and within the limits of the authority
evidenced by the Power of Attorney issued by the company to such person or persons.
RESOLVED FURTHER that the signature of any authorized officer and the seal of the company may be affixed by facsimile to any Power of Attorney or
certification thereof authorizing the execution and delivery of any bond, undertaking, recognizance, or other suretyship obligations of the company; and such
signature and seal when so used shall have the same force and effect as though manually affixed.
IN WITNESS WHEREOF, OLD REPUBLIC SURETY COMPANY has caused these presents to be signed by its proper officer, and its corporate seal to be
affixed this 17th day of October 2024
soREr.,. OLD REPUBLIC SURETY COMPANY
�OPPOP�TE 0
a SEAL >
0
o
_ roP,
Ass.„ant Secreta
* President
STATE OF WISCONSIN, COUNTY OF WAUKESHA - SS
On this 17th day of October 2024 personally came before me, Alan Paylic
and Karen J Haffner , to me known to be the individuals and officers of the OLD REPUBLIC SURETY COMPANY
who executed the above instrument, and they each acknowledged the execution of the same, and being by me duly sworn, did severally depose and say: that
they are the said officers of the corporation aforesaid, and that the seal affixed to the above instrument is the seal of the corporation, and that said corporate seal
and their signatures as such officers were duly affixed and subscribed to the said instrument by the authority of the board of directors of said corporation.
Notary Public
My Commission Expires: September 28, 2026
CERTIFICATE (Expiration of notary's commission does not invalidate this instrument)
I, the undersigned, assstant secretary of the OLD REPUBLIC SURETY COMPANY, a Wisconsin corporation, CERTIFY that the foregoing and attached
Power of Attorney remains in full force and has not been revoked; and furthermore, that the Resolutions of the board of directors set forth in the Power of
Attorney, are now in force.
789450
ORSC 22262 (3-06)
0 SuRt,
QJ 1
YI LOP POPti TE 0
o SEAL 4
A=
O
9th October 2025
Signed and sealed at the City of Brookfield, WI this day of
1�As-cr-t- f-ul-)
Marsh & McLennan Agency LLC