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Staff Report/Final PlatPlanning Department 201 1" Avenue East Kalispell, MT 59901 Phone: (406) 758-7940 Fax: (406) 758-7739 www.kahspell.com/plannin2 REPORT TO: Kalispell Mayor and City Council FROM: Nicole C. Johnson, Planner II James H. Patrick, City Manager SUBJECT Final Plat for Three Mile Views MEETING DATE: June 16, 2008 BACKGROUND: This is a request for final plat approval of Three Mile Views, an 18 lot subdivision on a 2.8 acre property within the Three Mile development. The resubdivision of the lot will be developed with single family and townhouse residential units. The property can be legally described as Lot 3 of Block 2 of the Amended Subdivision Plat of Lots 1, 2 and 3 of Block 2 and Lot 24 of Block 1 of Three Mile Subdivision, located in the South 1/2 of Section 1, Township 28 North, Range 22 West. Preliminary plat approval for this subdivision was granted by the Kalispell City Council on April 16, 2007 with 14 conditions of approval. With the exception of a few items, the subdivision and associated improvements are complete. The applicant has bonded for what remains which includes, repaving of the bike path along Three Mile Drive, installation of trees and grass within the 20-foot buffer area along Three Mile Drive, stormwater and drainage systems and installation of a utility. A Subdivision Improvements Agreement (SIA) is included with the final plat request with a Letter for Credit in the amount of $58,670 (125% of actual construction estimates). The improvements are to be completed by October 5, 2009. Note that the stormwater and drainage improvements will be completed by October 5, 2008. Additional security was received for the remaining trees to be planted along the Three Mile Drive buffer area in the amount of $8,625 (125% of actual cost). An amount of $27,000 has been set aside for parkland. RECOMMENDATION: A motion to approve the final plat for Three Mile Views and to accept the Subdivision Improvements Agreement with the securities totaling $67,295 would be in order. FISCAL EFFECTS: Positive impacts once developed. ALTERNATIVES: As suggested by the city council. Respectfully submitted, Nicole C. Johnsa Planner II Report compiled: June 11, 2008 Attachments: Letter of transmittal es H. Patrick City Manager Final plat application and supporting documents Planning Department 201 1" Avenue East Kalispell, MT 59901 Phone: (406) 758-7940 Fax: (406) 758-7739 www.kalisuell.com/planning June 11, 2008 James H. Patrick, City Manager City of Kalispell 201 lst Avenue East Kalispell, MT 59901 Re: Final Plat for Three Mile Views Dear Jim: This is a request for final plat approval of Three Mile Views, an 18 lot subdivision on a 2.8 acre property within the Three Mile development. The resubdivision of the lot will be developed with single family and townhouse residential units. Preliminary plat approval for this subdivision was granted by the Kalispell City Council on April 16, 2007 with 14 conditions of approval. With the exception of a few items, the subdivision and associated improvements are complete. The applicant has bonded for what remains which includes, repaving of the bike path along Three Mile Drive, installation of trees and grass within the 20-foot buffer area along Three Mile Drive, stormwater and drainage systems and installation of a utility. A Subdivision Improvements Agreement (SIA) is included with the final plat request with a Letter for Credit in the amount of $58,670 (125% of actual construction estimates). The improvements are to be completed by October 5, 2009. Note that the stormwater and drainage improvements will be completed by October 5, 2008. Additional security was received for the remaining trees to be planted along the Three Mile Drive buffer area in the amount of $8,625 (125% of actual cost). An amount of $27,000 has been set aside for parkland. COMPLIANCE WITH CONDITIONS OF APPROVAL: Condition 1. Development of the subdivision shall be platted in substantial compliance with the approved preliminary plat subject to the conditions of approval. (Kalispell Subdivision Regulations, Appendix C - Final Plat) This condition is met. The plat has changed slightly as a result of the conditions of approval. The 20-foot landscape area long Three Mile Drive and the 20-foot access and utility easement from Vista Loop are now within common area and not on individual lots. One lot was lost due to these requirements. Condition 2. The parkland dedication requirements shall be met with the payment of cash in lieu for 0.54 acre parkland. The payment shall be based on the unimproved fair market value of the area devoted to lots. (Kalispell Subdivision Regulations, Section 3.19) This condition is met. The Parks and Recreation Department accepted a cash -in - lieu payment of $27,000 for the 0.54 acre of parkland in a letter to the developer dated March 4, 2008. This amount was based on a fair market value for the unimproved land of $50,000. Condition 3. The developer shall install the approved landscaping within the 20-foot landscape easement as shown on the preliminary plat. The landscaping shall include street trees and seeding in accordance with the Kalispell Parks and Recreation Department's standards. (Findings of Fact Section D, Parks and Open Space) This condition is met. The SIA includes $800 for landscape improvements for the subdivision. Additionally, the owner has entered into an agreement for the required improvements along the buffer area and has provided a letter of credit from Flathead Bank of Bigfork in the amount of $8,625. The letter of credit expires December 5, 2009. The Parks and Recreation Department accepted the signed agreement dated June 6, 2008 and security in their memo dated June 10, 2008. The improvements, which include 23 trees and seeding, are detailed in the agreement and the work will be completed by October 1, 2009. Condition 4. A bike path connection shall be installed within the existing 20-foot utility easement located between lots 5B and 6A as shown on the preliminary plat. The bike path shall be 10-feet wide and comply with AASHTO standards for bike and pedestrian paths, and integrated into the sidewalk along Vista Loop and the bike and pedestrian path along Three Mile Drive. Plans for the bike path shall be reviewed and approved by the Public Works Department. (Findings of Fact Section A, Access) ® This condition is met. The SIA includes bike path along the 20-foot access ani from Vista Loop. The amount also will bike path along Three Mile Drive. $17, 218 to complete the above mentioned utility easement between lots 5B and 6A pay for the repaving and completion of the Condition 5. The 20-foot landscape easement and 20-foot utility easement shall be located within a common area and not on individual lots as shown on the preliminary plat. Note: the detention pond easement may need to be expanded in accordance with the approved storm water drainage plan. (Findings of Fact Section A, Access and Section C, Drainage) This condition is met. The 20-foot landscape and utility areas are now located with open space corridors that are not included in individual lots. Condition 6. A homeowners association for the subdivision shall be created that includes a provision for the maintenance of the bike path, landscaping and storm water facilities located within the common area. (Findings of Fact Section A. Access) This condition is met. The Bylaws of Three Mile Views Homeowner's Association is included in the application. Condition 7. The developer shall submit to the Kalispell Public Works Department for review and approval a storm water report and an engineered drainage plan that meets the requirements of the current city standards for design and construction. (Kalispell Design and Construction Standards) This condition is met. A letter from Frank Castles dated April 17, 2008 approved the storm water system for the subdivision. Condition 8. The approved engineered drainage plan shall be implemented prior to final plat of the subdivision. (Kalispell Design and Construction Standards) This condition is met. Bret Birk, the engineer working on the project, requested the option to bond for the improvements that are necessary for the subdivision's storm water and drainage system. He indicated in a letter dated April 29, 2008 that the existing storm water and drainage system for the subdivision would not be disrupted until reconstruction of the detention system started, allowing the existing system to function. Frank Castles responded to Mr. Birk's request to bond for the storm water and drainage improvements favorably on April 29, 2008. The SIA sufficiently includes $24,000 for the remaining storm water and drainage improvements. Condition 9. The developer shall provide a letter from the US Postal Service indicating that mail service can be provided to the lots. If a new central box unit (CBU) is needed, the location of the CBU shall be approved by the US Postal Service. In addition, the mail delivery site shall be installed or bonded for prior to final plat approval. The mail delivery site and improvements shall also be reviewed and approved by the Public Works Department. (Kalispell Subdivision Regulations, Section 3.22) This condition is met. A letter from the U.S. Postal Service dated April 14, 2008 details the mail service agreement and CBU location for Three Mile Views. Condition 10. The property boundary adjacent to the Vista Loop right-of-way for lot 10 shall be amended to be a minimum of 20-feet wide to comply with Section 3.06.13 of the Kalispell Subdivision Regulations. (Kalispell Subdivision Regulations, Section 3.06) ® This condition is met. Condition 11. The following note shall be placed on the final plat: "Property owner(s) shall waive their right to protest the creation of a special improvement district for road upgrades in the area to City standards which are impacted by this subdivision." (Findings of Fact, Section D, Roads) ® This condition is met. The note appears on the face of the final plat. Condition 12. All utilities shall be installed underground. (Kalispell Subdivision Regulations, Section 3.17). This condition is met. The only utility that remains to be installed is Centurytel. The SIA includes $4,920 to complete this installation. A letter from Centurytel dated January 16, 2008 details the contract between the developer and Centurytel. Condition 13. All areas disturbed during development of the subdivision shall be re - vegetated with a weed -free mix immediately after development. ® This condition is met. A Soil Disturbance and Weed Management Plan dated February 29, 2008 was submitted with the application to ensure weeds will be managed and disturbed ground vegetated as required. Condition 14. That preliminary approval shall be valid for a period of three years from the date of approval. (Kalispell Subdivision Regulations, Section 2.04) ® This condition is met. !#jj11Q4 The final plat is in substantial compliance with the preliminary plat which was submitted and approved. This subdivision plat has been found to be in substantial compliance with the State and City Subdivision Regulations. All taxes are current. The title report notes that Flathead Bank of Bigfork has an interest in the property and they have filed the necessary "Consent to Plat". This subdivision complies with the Kalispell Zoning Ordinance and the RA-1 zoning designation. All of the conditions of preliminary plat approval have been adequately addressed. The staff recommends that the Kalispell City Council approve the final plat for this subdivision. Note that the SIA along with the securities totaling $67,295 should be accepted along with the final plat approval. Please schedule this matter on the June 16, 2008 city council agenda if possible. If you have any question I can be reached at 758- 7940. Sincerely, Nicole C. Johnson Planner II 11 Attachments: 1 opaque Mylar of final plat 1 reproducible Mylar of final plat 1 blueline of final plat 11 x 17" copy of plat Final plat application dated 4/21/08 Letter from Montana Mapping Associates dated 4/ 11/08 and 5/28/08 Treasurer's certification dated 4/21/08 Consent to Plat from Flathead Bank of Bigfork dated 2/ 19/08 Title Report 7403078-1179 dated 3/27/08 Letter from MDEQ dated 4/ 16/08 Letter from B&,E Enterprises, LLC (landscaping agreement) dated 6/6/08 Letter of credit from Flathead Bank of Bigfork in the amount of $8,625 dated 6/ 10/08 Memo from the Kalispell Parks and Recreation Department dated 6/10/08 Subdivision Improvement Agreement Letter of credit dated 5/23/08 for $58,670 Letter from the Kalispell Parks and Recreation Department dated 3/4/08 Check # 5155 in the amount of $27,000 Letter from Public Works dated 4/ 17/08 Letter from Bret Birk, P.E. dated 4 / 29 / 08 Fax memo from Public Works dated 4 / 29 / 08 Letter from U. S. Postal Service dated 4 / 14 / 08 Letter from Centurytel dated 1 / 16 / 08 Soil Disturbance and Weed Management Plan dated 2 / 29 / 08 Bylaws if Three Mile Views Homeowner's Association c: Montana Mapping Associates 1405 Highway 2 West Kalispell, Montana 59901 Richard Erickson 102 2nd Street East, Suite 5 Whitefish, Montana 59937 Chuck Birgensmith 1040 Creekview Drive Whitefish, MT 59937 Theresa White, Kalispell City Clerk 5 City of Kalispell Planning Department 17 - 2"d Street East, Suite 211, Kalispell, Montana 59901 Telephone: (406) 751-1850 Fax: (406) 751-1858 FINAL PLAT APPLICATION Project / Subdivision -Name: ! l') i &e- j17 r 14 V 1 eWS Contact Person: Owner & Mailing Address: Name:MCM�,Aa A'.VS C� .S. Z/- i ct-& n Address: �� e IoA gpicl S r 5"e— ��—lor Sim lip! i- Phone No.: Date of Preliminary Plat Approval: RP61 z0orl Type of Subdivision: Residential Industrial Commercial PUD Other Total Number of Lots in Subdivision 16 Land in Project (acres) FJ at-RAS Parkland (acres) Cash -in -Lieu $ 0 t'1 �� Exempt No. of Lots by Type: `"f Single Family Townhouse_ Mobile Home Park Duplex Apartment Recreational Vehicle Park Commercial Industrial Planned Unit Development Condominium Multi -Family Other Legal Description of the Property 1' 2 t�2_ P_,c_ ' t T • o1g !Q.2^ 2. W)� FILING FEE ATTACHED $ 0 Minor Subdivision with approved preliminary plat $400 + $125 J lot va or Subdivision with approved Frehminary plat > 8 0 + $125/lot isions with Waiver of Preliminary—Plaf-"" 800 + $125/lot Subdivision Improvements Agreement $50 FAQ NCB. : Feb. 27 2 0 Fj Q- 1 '2: 1 j �I P 2 Isaw—MC-4191-0—M Hesath Department Certdication (Or4&ial) Title Report (Original, not more than 90 days old) Tax Certification (Property taxes must be PWA-) Consent(s) to Fiat (0i%buds acid uotariand) Subdivision Improvements AgreeraAftt (Attach collate a) Parkland Carsh-in-lieu (Check attached) Maintenance Agreement Puts; lopaque OR 2 mylars I Inylar cnpy I signed blualint 4 bluelinea 4 bluelinee, uns(pned I IX 17 Copy 1 lX17 Copy Attach a letter, which bsts each condition of preliminary plat apprcwal, and inWv1dually state. how tmch condition has apecir"Uy bven met. In oules where docruraentation is required, such as an en&eer's certification, Statt! DepwUuent of Health certMcation, original letters shall be submitted, Blanket statements al for c"=ple, Oall improvements an in place" are not aoct�ptable. A complete final plat application must be submitted no less than 60 days prior to exp"tion date of tht prehminary plat When 41 applicatior, materials am subraitted to the Kalispell PlanrAng Department, and the staff nvds tili amlication M oomplete, the staff will submit a report to the gav=ing body, The governing body must act witAit 30 days of receipt of the revised pre&ainsilry plat application and swffrepwt. !ncomplete subrailWs will not be amepted wid will not be forwardod to tbA governing body for approval, Changes to the approved preliminmy plat may necessitate reconsideration by Uie pw1ruing tx.&U-d' I certib, that aU information submitted is true, accurate and complete. I understand that wmy invalidate any approval. The signing of this application signifies approval 14.- Kalispell Planning staff to be present on thi� propaly for routine monitoring and inspection during the approval and developI' ent procees. **NCTZ: PUaft 1;,e advised that the C—ounty Clark % Monardor reqaofts that &U awbdivimlau f1ml plit, appuestions be U0AM=V*At*d witb 4 4wtal eavy. **A digital copy of the Real plat in a Drawing Interchange File (DXFI format or Rn AutoCAD file forrnat, consisting of 6he foillowmg layere: 1. F.Merior boxandaxy of subdivision 2- Lot ar pusk boundaries 3, Eawments, 4- Road& or rights -of -way 5. A tie to either an w4datilg subdivision corner or a come-z of Lhe pubhc land tTurvry ayatem N April 11, 2008 City of Kalispell Planning Department 17 2"d Street fast Suite 211 Kalispell, MT 59901 RE: Final Plat Three -Mile Views Dear Planner, The following conditions have been met as follows: 1. Development of the subdivision shall be platted in substantial compliance with the approved preliminary plat subject to the conditions of approval. (Kalispell Subdivision Regulations Appendix C—Final Plat) a. The subdivision is platted in substantial compliance with the approved preliminary plat. 2. The parkland dedication requirements shall be met with the payment of cash in lieu for 0.54 of an acre parkland. The payment shall be based on the unimproved fair market value of the area devoted to lots. (Kalispell Subdivision Regulations, Section 3.19) a. A letter of agreement from Chad Fincher, Parks Superintendent and a check for cash in lieu are attached. 3. The developer shall install the approved landscaping within the 20-foot landscape easement as shown on the preliminary plat. The landscaping shall include street trees and seeding in accordance with the Kalispell Parks and Recreation Department's standards. (Findings of Fact Section D, Parks and Open Space) 4. A bike path connection shall be installed within the existing 20-foot utility easement located between lots 5B and 6A as shown on the preliminary plat. The bike path shall be 10-feet wide and comply with AASHTO standards for bike and pedestrian paths, and integrated into the sidewalk along Vista Loop and the bike and pedestrian path along Three Mile Drive. Plans for the bike path including the placement of removable bollards for access along the 20-foot utility easement shall be reviewed and approved by the Public Works Department. (Findings of Fact Section A, Access) a. Please see attached Subdivision Improvements Agreement. 5. The 20-foot landscape easement and 20-foot utility easement shall be located within a common area and not on individual lots as shown on the preliminary plat. Note: the detention pond easement may need to be expanded in accordance with the approved storm water drainage plan. (Findings of Fact Section A, Access and Section C, Drainage) a. The 20-foot landscape easement and 20-foot utility easement are shown on the Final Plat. 6. A homeowners association for Three Mile Views Subdivision shall be created that includes a provision for the maintenance of the bike path, landscaping and storm water facilities located within the common area. (Findings of Fact Section A, Access) a. A homeowners association document it attached. 7. The developer shall submit to the Kalispell Public works department for review and approval a storm water report and an engineered drainage plan that meets the requirements of the current city standards for design and construction. Note: this will require improvements to the north roadside ditch along Three Mile Drive. (Kalispell Design and construction Standards) a. Please see attached Subdivision Improvements Agreement. 8. The approved engineered drainage plan shall be implemented prior to final plat of the subdivision. (Kalispell Design and Construction Standards) a. Please see attached Subdivision Improvements Agreement. 9. The developer shall provide a letter from the US Postal Service indicating that main service can be provided to the lots. If a new central box unit (CBU) is needed, the location of the CBU shall be approved by the US Postal Service. In addition, the mail delivery site shall be installed or bonded for prior to final plat approval. The mail delivery site and improvements shall also be reviewed and approved by the Public Works Department. (Kalispell Subdivision Regulations, Section 3.22) r • `• T a x s '• a; -Ir 10. The property boundary adjacent to the Vasty loop right-of-way for lot 10 shal l be amended to be a minimum of 20-feet wide to comply with Section 3.06.E of the Kalispell Subdivision Regulations. (Kalispell Subdivision Regulations, Section 3.06) a. The property boundary adjacent to the Vista Loop right-of-way for lot 10 has been amended. 11. The following note shall be placed on the final plat: "Property owner(s) shall waive their right to protest the creation of a special improvement district for road upgrades in the area to City Standards which are impacted by this subdivision." (Findings of Fact, Section D, Roads) a. The note above is placed on the final plat. 12. All utilities shall be installed underground. (Kalispell Subdivision Regulations, Section 3.17). a. Utilities for CenturyTel are being bonded for pleaseattached Subdivision Improvements Agreement. 13. All areas disturbed during development of the subdivision shall be re -vegetated with a weed -free mix immediately after development. x. All areas disturbed during development will be re -vegetated with a weed -free mix immediately after development. Attached is a signed soil disturbance a • weed controlplan. 14. That preliminary approval shall be valid for a period of three years from the date of approval. (Kalispell Subdivision Regulations, Section 2.04) a. Preliminary Plat was approved by the City Council on April 16 2007. Brooke Howard Montana Mapping Associates 1405 Hwy 2 West Kalispell, MT 59901 1-406-752-3539 Plat Room Flathead County, Montana 800 S. Main St. Kalispell, MT 59901 (406) 758-5510 This Form is for Subdivisions Only BY: MT MAPPING FOR: ERICKSON DESCP : THREE MILE VIEWS (L.3 ofAmd. L.1,2 & 3 of B.2 & L.24 of B.1 Three Mile Tracts -- 1-28-22) YEARS 2003 THRU 2004 2006 & 2007 DATE: 11 /5/07 PURPOSE: SUB ASSESSOR # 0422700 & 0717850 0009106 0009129 I hereby certify that there are no outstanding taxes on the property assigned thews numbers listed above, for the years indicated for each asses —; ` Deputy Treasurer APR 21 2008 Consent to Platting Pursuant to Section 76-3-612, Montana Code Annotated, 1979, the undersigned, acting on behalf of Flathead Bank, being an owner of interest in the property to be subdivided as: Three Mile Views Subdivision Do hereby consent to the platting of said subdivision. Flathead Bank 4 By: CERTIFICATE OF NOTARY State of Montana) County Of Flathead) ss; On this 23rd day of May 2008, before me the undersigned, a Notary Public for the State of Montana, personally appeared Diana Ruddy known to me to be the person whose name is affixed to the Consent to Platting and acknowledged to me that they are executed the same. uk� ti,* otary Public for the State of Montana Residing at Kalispell, Montana II �'yo,S'j�'•••.. My Commission Expires 12-14-2011 •OF��v�"iD' 120 Hutton Ranch Road • Kalispell, MT 59901 • 406-752-4050 • FAX 406-752-4089 • www.flatheadbank.com Montana Departmentof M ENVIRONMENTAL QUALITY Brian Schweitzer, Governor P.O. Box 200901 Helena, MT 59620-0901 (406) 444-2544 www.deq.mt.gov April 16, 2008 Bret Birk PE Birk Engineering 2302 Hwy 2 East Kalispell MT 59901 Dear Mr Birk: RE: Three Mile Views Municipal Facilities Exclusion EQ#08-2549 City of Kalispell Flathead County This is to certify that the information and fees received by the Department of Environmental Quality relating to this subdivision are in compliance with 76-4-127, MCA and ARM 17.36.602. Under 76-4-125(2)(d), MCA, this subdivision is not subject to review, and the plat can be filed with the county clerk and recorder. Plans and specifications must be submitted when extensions of municipal facilities for the supply of water or disposal of sewage are proposed {76-4-111 (3), MCA). Construction of water or sewer extensions prior to DEQ, Public Water Supply Section's approval is prohibited, and is subject to penalty as prescribed in Title 75, Chapter 6 and Title 76, Chapter 4. Sincerely, Janet Skaarland Compliance Specialist Subdivision Section (406) 444-1801 — email jskaarland(g;,mt.gov cc: City Engineer County Sanitarian file Enforcement Division • Permitting & Compliance Division • Planning, Prevention & Assistance Division • Remediation Division 253-5247 / 249-0424 Fax: 862-0779 June 06,2008 Chad Fincher, Parks Superintendent City of Kalispell P.O. Box 1997 Kalispell, MT. 59901 Re: Condition 3 of final plat application for Three Mile Views. B & E Enterprises, DBA Birgensmith-Erickson Builders, LLC and as principle owner Richard J. Erickson agree to install approved landscaping within the 20-foot landscape/open space easement shown on the preliminary plat. The landscaping will be in accordance with the Kalispell Parks and Recreation Department's standards and will include the following; 23 approved boulevard street tree's spaced 40 feet apart within the 920 feet of open space. Grass seeding on all open areas within the 20-foot open space in accordance with Parks and Rec. standards. All mow able areas will be on less than a 3% slope. All site improvements are subject to final approval by the Kalispell Parks and Recreation Department. Summary of cost: The grass seeding cost was $800 and is listed in the original SIA for final plat. Tree cost —23 trees @ $185.00 per tree = $4,255.00 Planting cost - 23 trees @ $115.00=$2,645.00 Total $6,900.00 City Subdivision Regulation requires a financial security of 125% of the estimated cost of improvements. In this case $6,900.00 x 125% _ $8,625.00 A letter of credit for the $8,625 is attached to this letter. You will also find a site plan attached for the Three Mile Views Subdivision outlining the tree placement in the open area. The completion date for the site improvements is October 1, 2009. 8f .� tz"e- i �/ 5 I ewer. vrl 61,00 5 I'm 1 6.,005 n15 T 1,5,45' open SPace ,j 4 c LIJ !jj U it ,u WW LU uj I June 10, 2008 IRREVOCABLE LETTER OF CREDIT No. 200812 City of Kalispell Planning Department 17 — 2nd Street East, Suite 211 Kalispell, Montana 59901 Re: Richard J. Erickson Three Mile Views Subdivision Ladies and Gentlemen: We have established this Irrevocable Letter of Credit solely in your favor for drawing up to U.S. $8,625.00 as a performance bond for the above referenced Developer, effective immediately and expiring at our address 120 Hutton Ranch Road, Kalispell Montana, with our close of business on 12/5/2009. We hereby undertake to promptly honor your sight draft(s) drawn on us, indicating our Letter of Credit No. 200812, for all or any part of this Letter of Credit if presented at 120 Hutton Ranch Road, Kalispell Montana on or before the expiration date or any automatically extended date. It is a further condition of this Letter of Credit that any interruptions of the Bank's conduct of business caused by Act of God, riot, civil commotion, insurrection, war or other cause beyond the Bank's control, or by any strike or lockout, will automatically extend the expiration date of this Letter of Credit, as well as future expiration dates, by the period of interruption. In any communication with us regarding this Letter of Credit, please make specific reference to out Letter of Credit No. at the top of this letter. This Letter of Credit -is subject to and governed by the Uniform Customs and Practice for Documentary Credits of the International Chamber of Commerce (Publication No. 400) to the extent not inconsistent with Montana Law. If any legal proceedings are initiated with respect to payment of this Letter of Credit, it is agreed that such proceedings shall be subject to the Montana courts and law. Sincerely, ex Diana Ruddy Branch President 120 Hutton Ranch Road - Kalispell, MT 59901 - 406-752-4050 - FAX 406-752-4089 - www.flatheadbank.com May 23, 2008 IRREVOCABLE LETTER OF CREDIT No. 200811 City of Kalispell Planning Department 17 — 2nd Street East, Suite 211 Kalispell, Montana 59901 Re: Richard J. Erickson Three Mile Views Subdivision Ladies and Gentlemen: We have established this Irrevocable Letter of Credit solely in your favor for drawing up to U.S. $58,670.00 as a performance bond for the above referenced Developer, effective immediately and expiring at our address 120 Hutton Ranch Road, Kalispell Montana, with our close of business on 12/5/2009. We hereby undertake to promptly honor your sight draft(s) drawn on us, indicating our Letter of Credit No. 200811, for all or any part of this Letter of Credit if presented at 120 Hutton Ranch Road, Kalispell Montana on or before the expiration date or any automatically extended date. It is a further condition of this Letter of Credit that any interruptions of the Bank's conduct of business caused by Act of God, riot, civil commotion, insurrection, war or other cause beyond the Bank's control, or by any strike or lockout, will automatically extend the expiration date of this Letter of Credit, as well as future expiration dates, by the period of interruption. In any communication with us regarding this Letter of Credit, please make specific reference to out Letter of Credit No. at the top of this letter. This Letter of Credit is subject to and governed by the Uniform Customs and Practice for Documentary Credits of the International Chamber of Commerce (Publication No. 400) to the extent not inconsistent with Montana Law. If any legal proceedings are initiated with respect to payment of this Letter of Credit, it is agreed that such proceedings shall be subject to the Montana courts and law. Sincerely, Diana Ruddy Branch President 120 Hutton Ranch Road • Kalispell, MT 59901 • 406-752-4050 • FAX 406-752-4089 • www.flatheadbank.com of Kalisp. fl Parks and Recreation 35 1 st Ave East — P O Box 1997 — Kalispell MT 59903-1997 Phone: (406) 758-7960 Fax: (406) 758-7719 Email: cfincher@kalispell.com FROM:TO: Nicole Johnson, Planning Department .dFincher:Park Superintendent CC: Mike Baker: Parks and RecreationDirector SUBJECT: Three Mile Views II 00 The Parks Department has reviewed Condition 3 with B & Enterprises and believes with the attached letter dated June 6, 2008 and a letter of credit dated June 10, 2008, they have satisfied the condition. The following items are to be done by the developer and reviewed after completion by the Parks and Recreation Department. 1. All mow able surfaces to be 3% or less for grade. 2. 23 trees to be planted according to ISA standards and Kalispell Street Tree Ordinance. 3. All disturbed areas to be seeded or sodded including the 20 foot buffer. The letter of credit (#200812 from Flathead Bank) states that it expires at the close of business on 12/5/2009. The letter of credit covers 23 trees planted at a cost of $300.00 per tree, $6,900.00. The city requests all financial security be 125% of the entire cost of the project, $8,625.00 total. It should be noted that at this time the Parks Department has reviewed the project and tentatively agrees with the proposed plan. If the proposed plan is changed for any reason, the Parks Department reserves the right to review the project amendments or changes prior to proceeding. 01 alis Parks and Recreation &F.Trerax, 35 1 st Ave East — P 0 Box 1997 — Kalispell MT 59903-1997 Phone: (406) 758-7960 Fax: (406) 758-7719 Email: cfincher@kalispell.com Brooke Howard Montana Mapping Associates 1405 Hwy 2 W Kalispell, MT 59901 Phone: 406- 752-351,., To Whom It May Concern: This letter is to serve as acceptance of the proposed offer of $50,000 per acre for cash - in -lieu for parkland for Three Mile Views Subdivision. Through resolution, Three Mile Views Subdivision is required to provide cash -in -lieu for .54 acres of parkland. This equates to $27,000.00. It is also agreed that if the project is extended, the developer will be responsible for bonding for landscaping improvements on the boulevards. Tree plantings are required to meet the Street Tree Ordinance standards of 2 W caliper and of an approved species from the Kalispell Parks department planting list. Boulevards are to be seeded or sodded to meet city standards. Final approval will be given upon completion, inspection and approval of the landscaping and tree plantings, at which time bonding and/or letter of credit would be released if it is in place. It should be noted that the trees and landscaping are under a warranty period and should they die within this time frame, the developer will be responsible for replacement. It has been enjoyable working with you, if you have any concerns or questions please give me a call. Sincerely, Chad Fincher, Parks Superintendent Kalispell Parks and Recreation CC: Sean Conrad, Planning Mike Baker, Parks and Recreation Director City of Kalispell Planning & Building Department 201 1"Avenue East, Kalispell, Montana 59901 Planning Telephone: (406) 758-7940 Building Telephone (406) 758-7730 Fax: (406) 751-1858 Website: www.kalispell.com MEMORANDUM �� ors, 1—f4tQ Zm� To: Deb Deist, City Treasurer®a Cc: Theresa White, City Clerk �3 �� CU CU; u From: Michelle Anderson, Planning Office H � fj7 .i LLJ O Date: April 21, 2008 �� mLU� ,-., H w -, Subject: Three Mile Views — Cash -in -lieu of Parkland Checc _1 = Z W e--i �`� Ct I ,__� �1i � W�� 1i W=� 1 Lr-O' Z I— W Z t-�a c ct tom.. cr, GL 1 CJ. LY I Attached is a check in the amount of $27,000.00 for cash -in -lieu of parkland for the Three Mile Views Final Plat. If you have any questions contact our planner Nicole Johnson. City p ofKalisp ell Public Works Department Post Office Box 1997, Kalispell, Montana 59903-1997 - Telephone (406)758-7720, Fax (406)758-7831 April 17, 2008 Bret Birk, P.E. Birk Engineering 2302 Hwy 2 East, Suite No 9 Kalispell, MT 59901 RE: Three Mile Views Subdivision Kalispell, Montana Dear Bret: The construction plans and supporting documents for the redesigned stormwater system for the referenced project are hereby approved. Approval does not relieve you, nor the contractor from designing or constructing this project in accordance with the standards currently in effect and the conditions of approval. We look forward to working with you on this project. Sincere) , 1 i Frank Castles, P.E. Deputy Public Works Director/Assistant City Engineer Cc: Sean Conrad, Senior Planner Kalispell Planning Office UNITEDSTATES POSTU SERVICE 350 N MERIDIAN RD KALISPELL, MT 59901-991 volyliEW0 ms; Montana Mapping/Public Works To Whom It May Concern: Delivery for Three Mile Views has been approved for Cluster Box Unit (CBU) delivery in a turnout format. The developer will provide 1 16-unit CBU and a 1 8-unit CBU box to be placed on the existing pad located on the East side of North Ridding. The Boxes have been ordered and the Post Office has been in contact with the developer. The Post Office will install and then be responsible for the lock changes and maintenance of the equipment. Upon approval of the final plat through Kalispell Planning, a copy (no larger than 11 X1 7) showing addresses, will be provided to the Post Office. If you have any questions regarding this matter, you may contact me at 755-6450. Sincerely, aaa' T� V/� Growth Management W4/Jb/1008 08:12 4067525043 MT MAPPING 4067"7831 QTYOFKAUSPILL - PUB it M"K,-=-CiAM ii • *4 ! /•v Ri.iiNM I:+�aaNL.1./�•'w w.ti �.M.�rw� _...i odomm - okft 16:04:25 04-29-" Lw liar a Bw Wm w na..1► w � wY pRr��wi� f1wwo peFi�w.iaet► fu (001 rlbL1� Iwo Moo".OL" AXw V,=1 Fm* c tttim P.fi. Koli"11 Pablic wort DVVEntcnt 31 Z V AVs Wt PO 8st1 I 7 TC�cliepeA. M'll' �4DQ3.199'f S*bjcct: Thm Glib Vim Slam praiaaso Dear PrWL, 11m"66S WmmWw WNW Aystom fot'l.lWo MW Dilvo Slubd1yWon will aofWmx to t*Ktkw tflrc skwt the dewlopm&At of Tba c" Visw&. I%m tit bs vo moodlptims to tl% exi tiss 001401". 7w "Whis dOntift will not he 4iwurbw uOtll moxxtruotios of iho detsntion sam»e13m, TU syRMti will ondoue to fueeom as oftinany dosipW Path rmooaWkwiloa. 3yyaMm cw Anv wmWy d*hm $u 16 tM Thee Mile arias dkO OW wdi 4mod ms In OR so, IU OrAomw Mbbw to lwW br GDwq C11" At the d mfoR moomwedom 1x11!'Mt%4 dte of do bond will bw est flit Ocwbst L Mo. pkm hvcxahly =mid" We mgww w permit bomin for owe "Ifoo of W tfeonrttitCi t at the sstot, wwot eiwmion spltcm, 7UA you for your CONAd mom, If yos b&Vt any pcc/tittnW *W Ike cwt 1001401410 oartlad Wo e< (*M) 756-23U. Stnatwlr� I A. cc fill PAGE 02 2!2 04/30/2008 08:12 4067525043 MT MAPPING PAGE 03 406 758 7831 CITY OF KALISPELL - PUB 16:07:23 04-29-2000 ill City ofvAlisplell tami=eft'aMnjjftd Dapeftem of Public Wwks P.O.• Box 1997 Kalispell, MT 59903-1997 406-759-7724 Fok- To: Bmake Foe 752-M3 FAW Ra& Cooks, RE Dds, 4MM Deputy Pub& Works Director Aniout City Engin= ft. Tkm Wle Vie" Storm Drainage Pow; 2 11-%1111-,-, 11-111 January 16, 2008 Birgeusmith — Erickson Builders LLC. Chuck Birgeusmith 1040 Creekview Dr. Whitefish MT. 59937 Re: Three Mile Views. Mr Birgeusmith: Enclosed you will find a revised contract for your subdivision. Upon your agreement of the contract and charges, please sign and return it to this office along with your check and copies of your approved plot plan with lot numbers and addresses. If we do not receive the contract within 60 days from the above date, your request will be considered cancelled. 1 You must provide a correct street address for each corresponding lot number in your subdivision for our records. 2. After you have returned the signed agreement, payment, and approved plot plan, you must allow us a minimum of 30 days from the paid date before any placement of cable. 3. We will require a minimum of 60 days for ordering any cable over the 200 pair count. There is 0- feet of High pair count cable involved with this job. Contact Ken Wiles of CenturyTel at (406) 758-1241, ten (10) working days before the date of trench opening. Please don't hesitate to contact me at (406) 758-1213 if you have any questions or if I can be of further help. Sincerely, Wes Just Area Engineer /sv CenturyTel of Montana, Inc. Agreement for Subdivision Telephone Facilities THIS AGREEMENT, made, January 16, 2008 by and between CenturyTel of Montana, Inc., with its principal place of business in Kalispell, Montana located at 290 North Main hereinafter referred to as "The Company," Birgeusmith-Erickson Builders LLC, c/o Chuck Birgeusmith hereinafter referred to as "Developer"; RECITALS: 1. Developer is in the process of subdividing and developing property or has subdivided and developed property, which property is hereinafter referred to as "Project", and will be or is offering lots or portions of the Project for sale or lease. 2. Developer is desirous of making the necessary arrangements for the installation of telephone facilities to serve the Project and the various portions thereof. 3. The Company is agreeable to install telephone facilities in the Project and the various portions thereof, subject, however, to the terms and conditions as hereinafter set forth. The patties agree as follows: 1. INSTALLATION OF FACILITIES: The Company agrees to design and install telephone facilities in the Project located in Flathead County, State of Montana, and known as Three Mile Views telephone service to subscribers in the Project as the lots and portions of said Project are developed and sold or leased. 2. ADVANCE: Promptly upon the execution hereof, Developer shall pay to The Company as an advance against The Company's cost the.surn of $4,917.58 which is the estimated cost of design, purchase, and installation of such telephone facilities. If mtaltiple visits are required due to customer caused delays, an additional charge of $200..00 per visit will apply. Upon completion of such installation and a determination of the actual cost thereof byThe Company, rlie Developer shall within ten (10) days after written demand on the Developer by The Company pay to The Company an additional amount not to exceed 10% of the estimated cost if the actual cost is greater than th? estimated cost. The Developer shall be entitled to a reimbursement of the difference if the actual cost, as finally determined by The Company, is less than the suni herewith as the estimated cost. 3. REFUNDS. (a) Developer shall he entitled to a refund from The Company of $307.35 for each lot: oi. portion of the Project connected to The Company's facilities for telephone service to a subscriber within the period of five (5) years from the date of which the facilities to be installed by The Company under the terms of this Agreement are completed. It is specifically understood and agreed that the installation of the facilities contemplated hereunder do not include the services rendered to a subscriber. If an adjustment of cost is made in accordance with the terms of Paragraph 2 of this Agreement, the refund shall be adjusted accordingly based on the actual cost of the design, purchase and installation to The Company. It is understood and agreed that the amount of refund is determined by dividing the sum paid to The Company under the terms of Paragraph 2 of this Agreement by 16 Lots* in the Project. * Lots 1,2 thru 8 A & B, 9 (b) Such reftmd shall be paid to the Developer each year for all lots and units connected during the previous calendar year. No interest shall be charged or paid on any payments made by the Developer to The Company or on any refunds due Developer by The Company.. All refund requests must be submitted to CenturyTel each year between January 1 and February 15, within the five (5) year refund period. (c) Developer shall not be entitled to any refund for lots or units connected after expiration of the five (5) year period described in Paragraph 3 (a) of this Agreement, and any unrefunded portion of said cost referred to in Paragraph 2 shall become the property of The Company free and clear of any claim of the Developer. Log# 08 THREE MILE VIEWS.doc 4. RIGHT OF WAY AND TRENCHES: Developer shall provide at no cost to The Company appropriate utility rights of way by dedicating strips or easements for the installation of The Company's facilities, such rights of way or easements to be dedicated or conveyed in a form acceptable to The Company. Such rights of way shall be graded to semi -finished grade by, or at the expense of, the Developer prior to the trenching or installation of The Company's facilities hereunder. Developer may provide, with the consent of The Company, all trenching, excavation and back filling necessary for the proper installation of The Company's facilities, at no cost to The Company, and in accordance with the specifications to be furnished by The Company. 5. DAMAGES TO FACILITIES: Developer agrees to comply with all the Statutes of the State of Montana or any agency or municipality having jurisdiction thereof relating to any excavation, trenching and back filling necessary and proper for the installation of The Company's facilities. Developer shall pay The Company for any damage caused to The Company's facilities by Developer or any of Developer's contractors or subcontractors, and Developer shall hold The Company harmless from any and all damage, liability, cost or expense of whatsoever nature resulting from any damage caused to The Company by Developer or any of Developer's contractors or subcontractors. Such damage shall be paid promptly by Developer to The Company at such time as The Company has determined the amount of damage sustained by The Company under the terms of this paragraph. 6. REGULATORY JURISDICTION: This Agreement, the obligations of The Company hereunder, and all telephone service to be provided by The Company in connection hereunder, shall be subject to the rules, regulations and orders of any regulatory agency having jurisdiction thereof, and the rates, rules and regulations of The Company's tariffs as now or hereafter filed with the regulatory authorities with whom such tariffs must be filed. 7. SUCCESSORS: The rights and obligations of this Agreement shall inure to the benefit of and be binding upon the respective heirs, administrators, executors, successors and assigns of the parties hereto, provided, however, that no assignment of any of Developer's rights of obligations hereunder, or any portion hereof, shall become effective with out the prior ,,written consent of The Company 30 days after the receipt of your payment and signed contract before we will begin construction. IN WITNESS HEREOF, the parties' -hereto have caused this Agreement to be executed as of the day and year first herein above written. "Developer to provide 2" conduit as shown on attached. Lots 1, 2 thru 8A&B, 4. COMPANY: CenturyTel of Montana, Inc. Jeremy Ferkin — General Manager n Date: Log# 08 THREE MILE VIEWS.doc (Owner / Developer) 014( BD3 \� 1 C(62) ' --tsr BLS-G4 (04} 9.2:/J HL / 23XD I HI 11 a—ll? 1 GENERAL NOTES 15 Locate underground utilities 48 hours prior ;to �D any construction.�o be done. r �. i THREE MILS C7i� Any changes ode to this work order -n - to be authorized' 4LED by the Constriction Dept. Contact Wes Jus at 758-1213 or Ken Wiles at 58-1241. ' 1 Conduit is in place. Coordinate cable placement wiit developer. 12 Contact person is Chuck 8irgeusmith at 253-5247. �1 Please record GPS readings on co Is`� 2ii&igln drawings for all Access Points and Network Elemer & where the location changed or ryas no2topreviously recorded. ' FACILITY--�70TES 150' No cuts required. 014093: 014092: BD3 BD3 0.000 0.000 0 ) LIPS (1 ) GPS 120' 120' i � 014059 BD3 014094 /i. BD3 `J i T01409 (1000 ) GPS ?- (� P BD3 0.000 (I ) E (50 )1 (1 )BM2A ( 140'1 (I ) GPS j I 11 520' ' BT' , -241 �(08) f TMI, I i ,TMI 1 TMl: 7 4� �Af �l , 0, +G`.;�X19P(10 —� )(72) 7__ L IT1: 101-114� L ©3m8 100, -_ J TMI: 2115-2 25 TV, 126-13b C5�X22P(8�} -4 TM:51-200C25X22P(77) TM :�7 T3:57 0 - G - OX22 (8P) HL,10 1-118Q 15� - H - I - I - 94' 94' C50X19P(10M)(72) C10OX22P(75) 50XD PLHL,1101-1200 235' 1CAL PED CONFIGURATION STREE T ®POWER VAUL T SIDEWALK UTILITY - — — n ®O �A SEA,!LN T PROPERTY LINE a 250' BFC,50-. TMl, TMI, TMi, �N.) TYPICAL CONDUIT CONFI GURA TION n" ABOVE FINAL GRADE & BOUND TOGETHER 4 IC)AU ; I PLHLJ 4-1097 D 'Or 015054 50-24 (04) 1101 - 112 3 D i 9 1 01/16/ Unit Sumftry Dwg=E146740A Units XtI. Yr ST Unit Description _ Reef 9 A G, P S-' i JU D3— 50 A 8 A OD�j 3 A OMO, A l$ N);8 0 560' .593 PE,& 1;ZI2,W A I r'A2�' 2-C20-2 ,- — TY[FFL-7-1-01 441 ,04 --TT2-3—i Bt(125-241E —925,- 2501 f-- 08 jO8 A Rif , B f'-- t�5 - --2- 4 1 E -0 f E:i Li 014090 BD3 5 0 0' L 211 .... . .... BDJ BD3 ?A 0.000 015057 BD3 015058 (I ) GPS 0.000 BD3 (I ) GPS 0.000 (I BM2A (I GPS IJ40' CA 0, J25' 7LED) 8A 405' 1 : BFC25-241E(08) TMI, TMJI Tull J __j Ln 13,00' 1-50 cs� m r,�- Ln 50XC O CD Ed 252' t— --- 014000: b'dR. W JUST 0 ) BU80 (50 )W HC1 58 -758-1215 (I GPS -brKL':,L SUBD .3MC E TM!\THVEE MLE VIEWS 951 O 1_q-114 740 = A 4 7 , 1 F CLR: 1820- 4'U- -'-- - X 4(� t Y: FL A THEAI� Drown: W. JUST 59' !Rng- 22k'vl DFC20OF 08 14 ;� - 0946 1 lot Rledlined..-PO4ted: Sec: I ime: TV I o L:\WGIA280lTM R\El 6740A.d L:\WGM\280lTM i 5 0 �-,D- — L J of IIISS. Prj: 5 I C R I-) C - A 7 R - (� County kDoed Control District- 1257 4411low Glen (Location: 1257 FFA DriveF--FU Fispe tFr Soff Disturbance & Weed Management Ian orm -• 1 :g fl [i/I_'- ,�,F1.c- Sec. l T. NT): C (- w ,,-T, Fax: Email: M Flathead County and the State of Montana hold that it is unlawful to allow noxious weeds to propagate and/or go to seed UNLESS one is following a submitted and approved management plan to their weed district. _= Before disturbance begins, please complete a copy of this Soil Disturbance It Weed Management Plan to this Weed District's Board and/or the Board's representatives to review. 744This should be submitted at a minimum of two weeks prior to your deadline for review with the Planning Board and/or Commissioners. Knowing the property's terrain, water table and soil type will aid you in your evaluation of methods to use for weed control. Having a map or drawing of where the weeds are located can prove helpful in your management of the area while weeds are young and actively growing (perfect time for herbicide), but difficult to see. Flathead County Weed District encourages a number of tools for weed control and planning: prevention, herbicide, handputling, reseeding bare areas, biocontrol, etc. �L= Noxious weeds include: Spotted Knapweed, Diffuse Knapweed, Russian Knapweed, Canada Thistle, Field Bindweed, Whitetop, Leafy Spurge, Dalmatian Toadflax, Yellow Or Common Toadflax, St. Johnswort, Sulfur Cinquefoil, Common Tansy, Ox-Eye Daisy, Houndstongue, Dyers Woad, Purple Loosestrife, Tansy Ragwort, Meadow Hawkweed Complex, Orange Hawkweed, Tall Buttercup, Tamarisk (Salt Cedar), Perennial Pepperweed, Yellow Starthistle, Rush Skeletonweed, Eurasian Watermilfoil, Yellow Flag Iris and Common Crupina. :W Flathead County has undesirable plants that include: Baby's Breath, Flowering Rush, Creeping Bellflower, Common Yarrow, and Scentless Chamomile checkingC. Has the area been treated for these weeds? If so, please indicate which methods have been used by the method below: a. detection •: • • • mowing c. herbicides •(reseeding) biocontrol agents (insects) 1. Please put a check next to the workdisturbance to the site down below: a. Subdivision b. Road Installation c. Utility Installation r ither (please d 2. Describe your a plans • reseed original vegetation has been damaged, disturbed, or removei, (this include7shon g or power line burials or power poles, etc) Site preparation:- -• variefies used and rates: 0 MethodTime of seeding: MT of -♦ s FRCV : FRX NO. UL/ Z. ; .:uuu iu. i_I .1)UI ,.,.., I., W,., .�, 1'I Feb. 27 2��? 12: 23PM P� 1'I I I'Ir'll 1 P WW" Cow* WOW arA1Ntr1 ,. 7� FAX �t ei�171 "A 00* - UVOW W 004 pW) t Waal MW WS at be 4�tand'a� y---`�`d "mOmlt In 6gijWnwm win bo weshad €t usdd in Inmate d or" C,carxtrwAw m ralqukod to srwtin WA Sft Vj Wd WM tOr a oerl�tln permed of tam y - SU v4I t* monftww and now weeds Ot be eradicated PrwnPIY-.—: bvwtvxden of topsW wiM be tsused ice, — A mod fin» PWn WIN bS dIVOW f t1 W indL4ft W"II d 4, Art usl W9" %m&OPftnt- Yftr 1 t�" (BIMQ/l AT&TIMING) s. When wM the aanua1 Work be C6MPWW? Month "„��-3t rffiwtf.,,�.�■K�-......,....,, (Wbrk StVXW be d" annually be(;" we" novel) S. Follow up - Your 2 Maw+nq (empty tots and gree m or"*) hlarWK* (BRd1NiMMTEITIMUNG) -ARA T. When wMi Mt aanuel work be coffll;Alr'tOq? Month (V" SM W be dorw bnf►tl t bekwe w@64 ft w) S. Follow up w Year 3 MgWWQ (WOly loth and Wwon wws) Had*-i* (OMNplRATEMIMIING) Hand PuNW" !. When wllf tlw Itr nusi woc be CWrtpleWl? Month (WO* $hook! tie ftW WWKgtily baiose wOGdA 40W) 44. Assrlgnl»ont at meponsIbIN ►: (chec:k all vw apply) Urteowrvor (tsttl aft properties arer *41d) Plema provide a CorMltot/ytiortrr for the I Ii.IhMsbyagmetaO'nwptWasi -----""-"- Landawner`s ��+,�t+,n+ as aeorvsenrat$era. 1�-rt� Land*MKl & SIp11ldt►m 4t momenb to plan: q- W N I-e U ri, �s BYLAWS OF THREE MILE VIEWS HOMEOWNERS ASSOCIATION A MUTUAL BENEFIT NON-PROFIT CORPORATION THESE BYLAWS ARE SUBJECT TO ARBITRATION UNDER THE MONTANA UNIFORM ARBITRATION ACT. ARTICLE I. OFFICES Section 1.1 Business Office The corporation's principal office shall be located either within or outside of Montana. The corporation's most current Annual Report, filed with the Montana Secretary of State, shall identify the location of the principal office. The corporation may have other offices, either within or outside of Montana. The board of directors may designate the location of these other offices. The secretary of the corporation shall maintain a copy of the records required by section 2.18 of Article II at the principal office. Section 1.2 Registered Office The corporation's registered office shall be located within Montana at the address of the corporation's registered agent. The location of the registered office may be, but need not be, identical with that of the principal office if the latter is located within Montana. The board of directors or a majority of the members may change the registered agent and the address of the registered office from time to time, upon filing the appropriate statement with the Secretary of State. ARTICLE IL MEMBERSHIP Section 2.1 Membership (a) Membership. Membership in the corporation may be held by an individual, a group of household members, a corporation, or other entity, and is limited to the owner(s) of a lot in Three Mile Views. If membership is held by a household, corporation or other entity, the entity or group shall be considered one member. Each member (subject to the provisions of section 2.9) shall be entitled to one vote on any business matter which shall lawfully come before the members. If a membership stands of record in the names of two or more persons, then the vote of one name shall bind all other names on that one membership. Each member shall be eligible for benefits that the board of directors shall determine from time to time. (b) Membership Admission. The corporation may not admit a member to the corporation without that member's consent. To be initially admitted as a member of the corporation, the applicant must request membership. Each member shall: (1) become a lot owner in Three Mile Views. (2) make a payment of annual dues, if so required by the board of directors. Where the board required annual dues, membership shall last for the fiscal year in which annual dues are paid by the member. After the initial application, a member may extend membership for 1 year periods, without re -application, by payment of annual dues, if the corporation required dues. (c) Nondiscrimination. Membership in the corporation shall be available without regard to race, color, creed, religion, sex, age, marital status, physical or mental handicap or national origin, or ancestry. (d) Membership Rights and Obligations. All members have the same rights, privileges, and obligations. (e) Nontransferability of Membership. Membership in this corporation is nontransferable and nonassignable except in the case of transfer of ownership of the parcel qualifying for membership and subject to the consent each such new owner or assignee. (f) Termination of Members. The corporation may suspend or terminate a member from the corporation if the board of directors has made a good faith determination that it is in the best interests of the corporation to do so. In addition, the corporation may only suspend or terminate a member from the corporation pursuant to the following procedure, which shall be carried out in good faith. The procedure provides: (1) the corporation must, by first class mail, give the member written notice of the suspension or termination not less than 15 days prior to the effective date of the proposed action and an explanation of the reasons for it; and (2) an opportunity for the member to be heard, orally or in writing, not less than 5 days before the effective date of the suspension or termination by a person or persons authorized to decide that the proposed suspension or termination not occur; or (3) the board of directors may conduct the hearing, or in its sole discretion, may allow a committee of the board of directors or a committee of members, to hold the hearing and make the determination. Notwithstanding the above provisions, the corporation shall consider a membership terminated if. (1) the board of directors has established annual dues in accordance with section 2.2 and the member fails to make the payment of annual dues or (2) the board has established specific terms for membership. (g) Term and Expiration of Membership.The board of directors may establish a membership term. If the board of directors establishes a term, membership shall last until the term expires, regardless of whether the board of directors determines a term, membership shall expire before the end of the term if the member has been suspended or terminated in accordance with section 2.1 (e), or when the member resigns or dies. Section 2.2 Dues The board of directors may determine that annual membership dues shall be paid by each member. The board of directors may establish a different amount of dues to be paid by different types of membership (i.e. individual, corporation, household); however, regardless of amount of dues paid by a member, each member shall only be entitled to one vote. If dues are required, the board of directors may terminate members for non-payment of annual membership dues. The board may (but is not required to) notify members of nonpayment of dues and may provide a grace period in which to pay dues. Section 2.3 Annual Membership Meeting (a) General. The members shall convene their annual meeting on the first day of week of July, beginning with the year *, at the hour of 9 o'clock a.m., or at another time on another day within the month that the board of directors agree upon. At the annual meeting, the members shall elect directors and transact any other business as may come before the meeting. If the date of the annual meeting is a legal holiday in Montana, the meeting shall be held on the next succeeding business day. (b) Conference Telephone. Members may hold annual meetings by conference telephone, if the corporation has fifty or fewer members, the board of directors authorizes a conference telephone meeting, and the meeting is convened in accordance with section 2.5. Section 2.4 Special Membership Meetings (a) Who May Call. The president, secretary, board of directors, or 5% of the members may call a special membership meeting for any purpose or purposes described in the meeting notice. If 5% of members request a special meeting, they must do so in writing, and sign, date, and deliver the demand to any corporate officer at least 10 days before the corporation must give notice of the meeting; the president shall then call the special meeting on these members' behalf. For purposes of determining whether the members have met the 5% requirement, the record date is at the close of business on the 30th day before delivery of the demand or demands for a special meeting to any corporate officer. (b) Conference Telephone. Members may hold special meetings by conference telephone, if the corporation has fifty or fewer members, the board of directors authorizes a conference telephone meeting, and the meeting is convened in accordance with section 2.5. Section 2.5 Membership Meetings by Conference Telephone Members of the corporation may participate in a membership meeting, if authorized by the board of directors, by means of a conference telephone or similar communications equipment, provided all persons entitled to participate in the meeting received proper notice of the telephone meeting (see section 2.7), and provided all persons participating in the meeting can hear each other at the same time. A member participating in a conference telephone meeting is deemed present in person at the meeting. The chairperson of the meeting may establish reasonable rules as to conducting business at any meeting by phone. Section 2.6 Place of Membership Meeting The board of directors may designate any place within the county in Montana where the principal office is located as the meeting place for any annual or special meeting of the members. The members may change the meeting place if all the members entitled to vote at the meeting agree by written consents to another location. The written consents may be in the form of waiver of notice or otherwise. The new location may be either within or outside the State of Montana. If the board of directors do not designate a meeting place, then the members shall meet at the principal office of the corporation in Montana. Section 2.7 Notice of Membership Meeting (a) Required Notice. The secretary of the corporation shall deliver notice of the membership meeting to each record member. (b) Manner of Communication. The secretary of the corporation may deliver to members notice of the membership meeting by a separate written notice, through a regular publication, or by a newsletter of the corporation. The notice must be given in a fair and reasonable manner: it must be in writing (unless given by public broadcast) and state the place, day and hour of any annual or special membership meeting. If the meeting will be held by conference telephone, the notice shall indicate the proper telephone number. If the board of directors determine that separate written notice or notice by a regular publication or a newsletter of the membership meeting is impracticable, the secretary of the corporation may give notice of the membership meeting by means of a newspaper of general circulation in the area where it is published, or by radio, television or other form of public broadcast. (c) Effective Date. The secretary shall deliver the notice, either personally, by mail, by newspaper, or public broadcast not less than 10 nor more than 60 days before the date of the meeting. Notice shall be deemed to be effective at the earlier of the following: (1) the date when the notice was deposited in the Loted States mail, if mailed postpaid and correctly addressed to the member at the member's address as it appears on the corporation's record books; or (2) the date shown on the return receipt (if sent registered or certified mail, return receipt requested, and the receipt is signed by or on behalf of the addressee); or (3) the date when received, published, or broadcast; or (4) the date 5 days after deposit in the Loted States mail, if mailed postpaid and correctly addressed to an address other than that shown in the corporation's current member record book. (d) Adjourned Meeting. 1f the members adjourned any membership meeting to a different date, time or place, the secretary need not give notice to the new date, time and place, if the new date, time and place is announced at the meeting before adjournment. But if the board of directors fix a new record date for the adjourned meeting, or must fix one, (see section 2.9 of Article II) then the secretary must give notice, in accordance with the requirements of paragraph (b) and (c) of this section, to those persons who are members as of the new record date. (e) Waiver of Notice. A member entitled to a notice may waive notice of the meeting (or any notice required by the Montana Nonprofit Corporation Act or bylaws), by a writing signed by the member. The member must send the notice of waiver to the corporation (either before or after the date and time stated in the notice) for inclusion in the minutes or filing with the corporate records. A member's attendance at a meeting: (1) waives the member's right to object to lack of notice or defective notice of the meeting, unless the member at the beginning of the meeting objects to holding the meeting or transacting business at the meeting. (2) waives the member's right to object to consideration of a particular matter at the meeting that is not within the purpose or purposes described in the meeting notice, unless the member objects to considering the matter when it is presented. (f) Contents of Notice. Unless the Montana Nonprofit Corporation Act requires it, the notice of an annual membership meeting need not include a description of the meeting's purpose or purposes. However, the notice of each special membership meeting shall include a description of the meeting's purpose or purposes. Regardless of whether the notice is of an annual or special membership meeting, if a purpose of the meeting is for the members to consider either: (1) a proposed amendment to the articles of incorporation (including any restated articles requiring member approval); (2) a plan of merger; (3) the sale, lease, exchange or other disposition of all, or substantially all of the corporation's property; (4) the dissolution of the corporation; or (5) the removal of a director, then the notice must state this purpose and be accompanied by a copy or summary, if applicable, of the: (1) amendment to articles; (2) plan of merger; or (3) transaction for disposition of all the corporation's property. Likewise, if the corporation indemnifies or advances expenses to a director as defined by the Montana Nonprofit Corporation Act the secretary shall report this information in writing to all the members with or before notice of the next membership meeting. Section 2.8 Conduct of Membership Meetings (a) Conduct of Meeting. The president, or in the president's absence, the vice- president, or in their absence, any person chosen by the members present shall call the membership meeting to order and shall act as the chairperson of the meeting. The chairperson (or a person designated by the chairperson) shall establish rules of the meeting that will fi-eely facilitate debate and decision -making. The chairperson will indicate who may speak when and when a vote will be taken. The secretary of the corporation shall act as the secretary of all meetings of the members, but in the secretary's absence the presiding officer may appoint any other person to act as the secretary of the meeting. (b) Order of Business. The order of business at a membership meeting shall be as follows: (1) call to order, (2) reading of prior minutes, (3) election of directors, if that is the purpose of the meeting, (4) business specified by the notice, (5) unfinished business, (6) new business, (7) adjournment. At the annual meeting, the president and treasurer shall report on the activities and financial condition of the corporation. Section 2.9 Fixing of Record Date (a) Purpose of Fixing a Record Date. The board of directors may fix in advance a date, referred to as the record date, for the purpose of determining which members of any voting group, as of a certain date, are entitled to receive notice of a member meeting. The board of directors may also fix this record date for the purpose of determining which members of any voting group are entitled to vote at any meeting of members. The board may also fix a record date to determine which members may exercise any rights or which members belong in a group for any other proper purpose. The record date shall not be more than 70 days prior to the date on which the particular action, requiring a determination of members, is to be taken. (c) If No Record Date Is Fixed. If the board of directors does not fix a record date for the purposes described in paragraph (a) of this section, then the record date for determination of the members shall be at the close of business on one of the following: (1) With respect to an annual membership meeting or any special membership meeting properly called by the board or president, the day preceding the day on which the secretary of the corporation delivers the first notice to the members; (2) With respect to a special membership meeting demanded by the members, the date the first member signs the demand; (3) With respect to actions taken without a meeting (pursuant to Article 11, section 2.16), the date the first member signs a consent; (4) With respect to a meeting for which notice was waived, the day preceding the day on which the meeting is held. (d) Adjournment. In the event of an adjournment, the board of directors may fix a new record date. The board of directors must fix a new record date if the meeting is adjournment to a date more than 70 days after the date fixed for the original meeting. Section 2.10 Membership List (a) Contents of List. After the board fixes a record date for notice of a meeting, the officer or agent maintaining the corporation's record books shall prepare a complete record of the members entitled to notice of the meeting. The record shall include the address of each member. (b Inspection. The membership list must be available for inspection by any member, beginning 2 business days after the secretary gives notice of the meeting for which the list was prepared. The list will continue to be available throughout the meeting. The list shall be located for inspection at the corporation's principal office or at a place identified in the meeting notice in the city where the meeting is to be held. A member, the member's agent, or attorney is entitled on written demand to inspect and, subject to the requirements of section 2.19 of Article II, to copy the list during regular business hours. The member shall be responsible for any reasonable inspection and copying expenses. The corporation shall maintain the membership list in written form or in another form capable of conversion into written form within a reasonable time. (c) Limitations on Use of Membership List. Without consent of the board, a membership list or any part of it may not be obtained or used by a person for any purpose unrelated to a member's interest as a member. This prohibition against use of membership list for unrelated purposes includes but is not limited to: (1) using the list to solicit money or property unless the money or property will be used solely to solicit the votes of members in an election to be held by the corporation; (2) using the list for any commercial purpose; or (3) the selling or purchasing of the list. Section 2.11 Membership Quorum and Voting Requirements (a) Quorum. Fifty percent (50%) if the votes entitled to be cast on a matter must be represented at a meeting of members to constitute a quorum on that matter. Once a vote is represented for any purpose at a meeting, the corporation shall deem it present for quorum purposes for the remainder of the meeting and for any adjournment of the meeting unless a new record date is/or must be set for that adjourned meeting. (b) Voting. If a quorum exists, and the votes cast in favor of an action (other than the election of directors) constitutes a 2/3rds of the required quorum, then the corporation shall consider the action on a matter approved. Section 2.12 Membership Action By Written Ballot (a) Authority. Members may take any action without a meeting if action by ballot is authorized by the board of directors and the corporation delivers a written ballot to every member entitled to vote on that matter. (b) Contents. A written ballot must set forth each proposed action and provide the members with an opportunity to vote for or against each proposed action. (c) Approval. The corporation shall consider an action by written ballot approved only when: the number of votes cast by ballot equals or exceeds the quorum that the bylaws require to be present at a meeting authorizing the action; and the number of approvals equals or exceeds the number of votes that the bylaws require to approve the matter at a meeting. (d) Solicitation. All solicitations made in advance of the meeting for votes by written ballot must: indicate the number of responses needed to meet the quorum requirements, state the percentage of approvals necessary to approve each matter other than election of directors, and specify the time by which a ballot must be received by the corporation to be counted. (e) Revocation. A written ballot may not be revoked. Section 2.13 Proxies At all membership meetings, a member may vote in person, or by proxy. The member may appoint a proxy to vote by signing an appointment form, either personally or by attorney -in -fact. The corporation shall consider a proxy appointment valid if made in writing and filed with the secretary of the corporation before or at the time of the meeting. No proxy shall be valid after 11 months from the date it was made, unless otherwise provided in the proxy. Section 2.14 Voting of Membership Each member (subject to the provisions of section 2.9) is entitled to one vote on each matter voted on by the members. If a membership stands of record in the names of two or more persons, then the vote of one name shall bind all names on that one membership. Unless otherwise stated in these bylaws, when members vote to take action on a matter, a majority vote shall carry. Section 2.15 Corporation's Acceptance of Votes (a) When Signature Corresponds to a Member's Name. If the name signed on a vote, ballot, consent, waiver, or proxy appointment corresponds to the name of a member, the corporation if acting in good faith is entitled to accept the vote, consent, waiver, or proxy appointment and give it effect as the act of the member. (b) When Signature Doesn't Corresponds to a Member's Name. If the name signed on a vote, ballot, consent, waiver, or proxy appointment doesn't correspond to the name of a member, the corporation if acting in good faith is nevertheless entitled to accept the vote, consent, waiver, or proxy appointment and give it effect as the act of the member if: (1) the member is an entity as defined in the Montana Nonprofit Corporation Act and the name signed purports to be that of an attorney - in -fact of the member and, if the corporation requests, evidence acceptable to the corporations of the signatory's authority to sign for the member has been presented with respect to the vote, consent, waiver, or proxy appointment; (2) the name signed purports to be that of an attorney -in -fact of the member and, if the corporation requests, evidence acceptable to the corporation of the signatory's authority to sign for the member has been presented with respect to the vote, consent, waiver, or proxy appointment; (3) two or more persons hold the membership as households, co -tenants or fiduciaries, and: (i) the name signed purports to be the name of at least one of the co -holders; and (ii) the person signing appears to be acting on behalf of all the co - holders; (iii) (c) Doubt About Validity of Signature. The corporation is entitled to reject a vote, ballot, consent, waiver, or proxy appointment if the secretary or other officer or agent authorized to tabulate votes, acting in good faith, has reasonable basis for doubt about the validity of the signature on it or about the signatory's authority to sign for the member. (d) No Liability. The corporation and its officer or agent who accepts or rejects a vote, ballot, consent, waiver, or proxy appointment in good faith and in accordance with the standards of this section are not liable in damages to the member for the consequences of the acceptance or rejection. Section 2.16 Informal Action by Members The members may act on any matter generally required or permitted at a membership meeting, without actually meeting, if 80% of the members entitled to vote on the subject matter sign one or more written consent(s) to the action; the members must deliver the consent(s) to the corporation for inclusion in the minute book. Section 2.17 Members Electing Directors (a) Board Determination of Method. The board of directors shall determine whether the board shall be elected at a meeting, by ballot (pursuant to section 2.12) or by informal action (pursuant to section 2.16). (b) Nominating Committee. A nominating committee appointed by the board shall exist for election by meeting and election by ballot. The committee shall call a meeting to nominate candidates for directors' positions. This meeting shall be held at least 5 days in advance of the membership meeting in which members will elect directors or, in the event of the use of a ballot, at least 5 days before the ballot is sent to members. In the event of an election by meeting, any person who is nominated by the committee shall be considered a nominee for a director position. Nominations shall also be received from the floor. In the event of an election by ballot, the names on the ballot will include those selected by the nominating committee and those names placed in nomination by members signing petitions to place an individual's name on the ballot. The board need not place an individual nominated by petition on the ballot, unless the individual receives 5% or more of the signatures of the members. (c) Election by Ballot. _ If the members choose to elect directors by written ballot, they shall ensure that the nominating committee sends out the ballot not more than 60 days and no less than 15 days before the election. Each ballot shall list the nominees chosen in accordance with subsection (b) of this section 2.17. In addition, each ballot shall include the number of lines for "write-in" candidates equal to the number of directors to be elected. The election by ballot shall be conducted in accordance to section 2.12 of these bylaws. (d) Determination of Winners of Election. Those nominees elected to the board shall be those nominees receiving the largest number of votes. For example, if three board positions are open, the three receiving the highest number of votes will be elected. Cumulative voting is not authorized. Section 2.18 Corporate Records (a) Minutes and Accounting Records. The corporation shall keep a permanent record of the minutes of all meetings of its members and board of directors, a record of all actions taken by the members or board of directors without a meeting, and a record of all actions taken by a committee of the board of directors acting in place of the board and on behalf of the corporation. The corporation shall maintain appropriate accounting records. (b) Membership List. The corporation shall maintain a record of the members' names and addresses. The membership list shall indicate each member is entitled to one vote. (c) Form. The corporation shall maintain its records in written form or in another form capable of conversion into written form with a reasonable time. (d) Other Records. The corporation shall keep a copy of the following records at its principal office or at a location from which the records may be recovered within 2 business days: (1) its articles or restated articles of incorporation and all amendments to them currently in effect; (2) its bylaws or restated bylaws and al] amendments to them currently in effect; (3) resolutions adopted by its board of directors; (4) the minutes of all membership meetings, and records of all actions taken by members without a meeting, for the past 3 years; (5) the financial statement furnished for the past 3 years to the members; (6) a list of the names and business addresses of its current directors and officers; and, (7) its most recent annual report delivered to the Secretary of State. Section 2.19 Member's Rights to Inspect Corporate Records (a) Absolute Inspection RiiZhts of Records by Members. A member (or a members' agent or attorney) is entitled to inspect and copy, at a reasonable time and location specified by the corporation, any of the records of the corporation described in section 2.18(d)(1)-(7). The member must give the corporation written notice or a written demand to inspect at least 5 days before the date on which the member wishes to inspect and copy. (b) Conditional Inspection Right. The member (or the member's agent or attorney) may inspect and copy, at a reasonable location specified by the corporation, additional records (listed in section 2.19(c)) if the member meets the following criteria: (1) the member must give the corporation a written demand to inspect made in good faith and for a proper purpose at least 5 business days before the date on which the member wishes to inspect and copy; and (2) the member must describe with reasonable particularity: (i) the member's purpose and (ii) the records that the member desires to inspect; and (3) the corporation must approve that the records are directly connected with the member's purpose. (c) Additional Records. If the member meets the requirements of section 2.19(b), the member may inspect and copy: (1) excerpts from minutes of any meeting of the board of directors, records of any action of a committee of the board of directors acting on behalf of the corporation, minutes of any meeting of the members, and records of action taken by the members without a meeting, to the extent not subject to inspection under paragraph (a) of section 2.18; (2) accounting records of the corporation; and (3) subject to provisions of section 2.10(c), the membership list. (d) Copes. The right to copy includes the right to photograph, Xerox, or copy by other reasonable means. The corporation may impose a reasonable charge, covering the costs of labor and material, for copies of any documents provided to the member. The charge may not exceed the estimated cost of production or reproduction of the records. ARTICLE III. BOARD OF DIRECTORS Section 3.1 General Powers All corporate powers shall be exercised by or under the authority of the board of directors. The business and affairs of the corporation shall be managed under the direction of the board of directors, and includes, but is not limited to the following: (a) to administer and enforce the covenants, conditions, restrictions, easements, uses, limitations, obligations, and all other provisions set forth in the Declaration. (b) To establish, make, amend from time to time, and enforce compliance with such reasonable rules and regulations as may be necessary for the operation, use, and occupancy of the Lots and Common Elements, subject to the provisions of the Declaration. A copy of such rules and regulations will be delivered or mailed to each Member promptly after adoption. (c) To keep in good order, condition, and repair all the common elements and all items of personal property, if any, used in the enjoyment of the Common Elements. No approval of the Members is required for expenditures for these purposes, except as otherwise required by the Declaration or these By - Laws. (d) To fix, determine, levy, and collect the prorated Annual Assessments to be paid by each of the Members towards the gross expenses of the common elements, and to adjust, decrease, or increase the amount of the Assessments, and to credit any access of Assessments over expenses and cash reserves to the Members against the next succeeding Assessment period. (e) To levy and collect Special Assessments whenever, in the opinion of the Board, it is necessary to do so in order to meet increased operating or maintenance expenses or costs, or additional capital expenses, or because of emergencies. All Special Assessments will be in statement form and will set forth in detail the various expenses for which the Special Assessments are being made. (f) To levy and collection Default Assessment for violation of the Association Documents or because the Association has incurred an expense on behalf of a Member under the Association Documents. (g) To collect delinquent assessments by lien, suit or otherwise and to enjoin or seek damages from an Owner as provided in the Declaration and these By - Laws; and to exercise other remedies for delinquent Assessments as set forth in the Declaration. (h) To borrow funds in order to pay for any expenditure or outlay required pursuant to the authority granted by the provisions of the Declaration and these By -Laws and to authorize the appropriate officers to execute all such instruments evidencing such indebtedness as the Board of Directors may deem necessary. (i) To enter into contracts within the scope of their duties and powers. (j) To establish a bank account for the operating account of the Association for all separate funds as required or deemed advisable by the Board of Directors. (k) To cause to be kept and maintained full and accurate books and records showing all of the receipts, expenses, or disbursements and to permit examination thereof by Members or their Mortgagees at convenient weekday business hours. (1) To cause any and all access roads, parking areas, and roadways within and across the Property to be maintained t the extent those facilities are within the jurisdictions or control of the Association, subject to the provisions of the Declaration. (m) To cause the maintenance of the lawn, trees, shrubs, and other vegetation, and any sprinkler or other irrigation systems located on the Common Elements for the benefit of the Members, including obtaining fire and casualty and liability insurance for the full value of all common elements including the exterior structures, roofs, etc. (interior coverage of structure and contents are not the responsibility of the Association). Section 3.2 Number, Tenure, and Qualifications of Directors The number of directors of the corporation shall be 3. Each director shall have one vote on any matter that comes before the board. Each director shall hold office until the next annual membership meeting or until removed in accordance with section 3.3. However, if the director's term expires, the director shall continue to serve until the members have elected and qualified a successor or until there is a decrease in the number of directors. Directors need not be residents of Montana or members of the corporation. Section 3.3 Removal of Directors A director may be removed, with or without cause, if a majority of the members present at a duly constituted meeting votes for the removal. Likewise, the members must acquire a majority vote present at a duly constituted meeting to remove directors or the entire board elected by them. Removal is effective only if it occurs at a meeting called for that purpose. Notice must be sent to all members and directors that a purpose of the meeting is removal. Section 3.4 Board of Director Vacancies If a vacancy occurs on the board of directors, including a vacancy resulting from an increase in the number of directors, the directors may fill the vacancy. If the directors remaining in office constitute fewer than a quorum of the board, they may fill the vacancy by the affirmative vote of a majority of all the directors remaining in office. If a director resigns effective at a specific later date, the directors may fill the vacancy, before the vacancy occurs, but the new director may not take office until the vacancy actually occurs. When the directors elect a director to fill a vacancy, the director's term expires at the next membership meeting at which members elect directors. Section 3.5 Ex-Officio Members of the Board The officers and executive directors or managers of the corporation shall serve as non- voting, ex-officio members of the board. They are members by virtue of their office. Each ex- officio member officer or director may attend board meetings and participate in discussion; however, each ex-officio member shall be entitled to one vote only if the individual is a regularly elected or appointed board member. Section 3.6 Regular Meetings of the Board of Directors The board of directors shall hold a regular meeting immediately after, and at the same place as, the annual membership meeting. No notice of the meeting other than this bylaw is required. The board of directors may provide, by resolution, the date, time and place (which shall be within the county where the company's principal office is located) of additional regular meetings. Regular board meetings may be held by conference telephone, if convened in accordance with section 3.8. Section 3.7 Special Meetings of the Board of Directors The presiding officer of the board, the president, or 20% of the directors when in office may call and give notice of special meetings of the board of directors. Those authorized to call special board meetings may fix any place within the county where the corporation has its principal office as the special meeting place. Special board of director meetings may be held by conference telephone, if convened in accordance with section 3.8. Section 3.8 Board of Director Meetings by Conference Telephone If, authorized by the board of directors, the board of directors or any designated committee of the corporation may participate in a board or committee meeting by means of a conference telephone or similar communications equipment, provided all persons entitled to participate in the meeting received proper notice of the telephone meeting (see section 3.9), and provided all persons participating in the meeting can hear each other at the same time. A director participating in a conference telephone meeting is deemed present in person at the meeting. The chairperson of the meeting may establish reasonable rules as to conducting the meeting by phone. Section 3.9 Notice of, and Waiver of Notice for, Special Director Meetings (a) Notice. The corporation's secretary shall give either oral or written notice of any special director meeting at least 2 days before the meeting. The notice shall include the meeting place, day and hour. If the meeting is to be held by conference telephone, (regardless of whether it is regular or special), the secretary must provide instructions for participating in the telephone meeting. (b) Effective Date. If mailed, notice of any director meeting shall be deemed to be effective at the earlier of. (1) 5 days after deposited in the Loted States mail, addressed to the director's business office, with postage prepaid; or (2) the date shown on the return receipt (if sent by registered or certified mail, return receipt requested, and the receipt is signed by or on behalf of the director); or (3) the date when received. (c) Waiver of Notice. Any director may waive notice of any meeting. The waiver must be in writing, signed by the director entitled to the notice, and filed with the minutes or corporate records. A director's attendance at a meeting waives the director's right to object to lack of notice or defective notice of the meeting; this shall be true unless the director, at the beginning of the meeting (or promptly upon arrival), objects to holding the meeting or transacting business at the meeting, and does not vote for or assent to action taken at the meeting. Neither the secretary nor director needs to specify in the notice or waiver of notice the business to be transacted at, or the purpose of, any special board meeting. Section 3.10 Director Quorum A majority of the number of directors shall constitute a quorum for the transaction of business at any board of director meeting. Section 3.11 Directors, Manner of Acting (a) Required Number to Constitute Act. The act of a majority of the directors present at a meeting at which a quorum is present (when the vote is taken) shall be the act of the board of directors. If no quorum is present at a meeting of directors, the directors may not take action on any board matter other than to adjourn the meeting to a later date. (b) Director Approval. The corporation shall deem a director to have approved of an action taken if the director is present at a meeting of the board unless: (1) the director objects at the beginning of the meeting (or promptly upon arrival) to holding it or transacting business at the meeting; or (2) the director's dissent or abstention from the action taken is entered in the minutes of the meeting; or (3) the director delivers written notice of dissent or abstention to the presiding officer of the meeting before its adjournment or to the corporation immediately after adjournment of the meeting. The right of dissent or abstention is not available to a director who votes in favor of the action taken. Section 3.12 Conduct of Board of Director Meetings The president, or in the president's absence, the vice-president, or in their absence, any person chosen by the directors present shall call the meeting of the directors to order and shall act as the chairperson of the meeting. The chairperson, or the chairperson's designee, shall establish rules of the meeting that will freely facilitate debate and decision -making. The chairperson will indicate who may speak when and when a vote will be taken. The secretary of the corporation shall act as the secretary of all meetings of the directors, but in the secretary's absence, the presiding officer may appoint any other person to act as the secretary of the meeting. Section 3.13 Mediation, Arbitration if Board Deadlocked (a) General. If the board of directors is equally divided on any aspect of the management of the property, business and affairs of the corporation, or corporation transactions, or if the board is equally divided on any question, dispute, or controversy, and the deadlock is preventing action or non -action by the board, then the board shall submit the deadlock to mediation in accordance with section 3.13(b). If the directors are unable to resolve the deadlock through mediation, the directors agree to submit the dispute to binding arbitration in accordance with section 3.13(c). (b) Mediation. If the board of directors is unable to resolve the deadlock itself, the directors agree to submit the dispute to mediation and the following guidelines shall apply: (1) The directors agree to have the dispute mediated by one of the following people (in the order listed, circumstances permitting): (h) Michael A Ferrington/ Flathead Arbitration and Mediation Services. (2) The directors agree to follow the mediation procedure selected by the mediator. (3) Mediation shall terminate upon the request of the mediator or 30% of the directors. (i) Arbitration. If the board of directors are unable to resolve the deadlock through mediation, upon written request of 30% of the directors, the directors agree to submit the deadlock to binding arbitration in the following manner. (1) At a duly held board meeting, directors shall submit written requests for the arbitrator; the board shall then vote on which arbitrator to select. If the majority of board members agree on a single arbitrator, then the board shall contact that individual with a request for arbitration. If a majority of the board members can not agree on a single arbitrator, then the board shall select 2 arbitrators, subject to the approval of 2/3 of the members, each director having, in the selection, a number of votes equal to the number of directors under a system of cumulative voting•, after the members appoint 2 arbitrators, those 2 arbitrators shall select a third arbitrator to be the professional who actually arbitrates for the board. If the initial 2 arbitrators are unable to agree within 15 days upon a third arbitrator, the President of the corporation will ask an officer at the corporation's primary banking facility to appoint the third arbitrator. (2) The arbitrator shall determine, decide on and help resolve the matters that are equally dividing the board of directors. The arbitrator's scope of responsibility will be to decide on matters including (but not limited to) whether the subject before the board is a proper subject for action by the board; the arbitrator may decide whether matters have been properly submitted to the board for decision, whether the board is actually divided, and whether this section and the arbitration provisions provided here were properly invoked by the board or applicable. The arbitrator may act until all questions, disputes and controversies are determined, adjudged, and resolved. (3) The arbitrator shall conduct the arbitration proceedings in accordance with the rules of the American Arbitration Association, then in effect, except where these bylaws make a special provision. (4) The arbitrator's decision shall be conclusive and binding upon the board of directors, the corporation and the parties on all matters that the board submits to the arbitrator. The arbitrator's decision shall be the equivalent of a resolution unanimously passed by the full board at an organized meeting. The board of directors or the members may not revoke, amend or overrule the decision, except by a majority action of either body. The arbitrator's decision shall be filed with the secretary of the corporation; and the arbitrator may enter judgment on the decision in the highest court of the forum having jurisdiction. Section 3.14 Director Action Without a Meeting The directors may act on any matter generally required or permitted at a board meeting, without actually meeting, if: all the directors take the action, each one signs a written consent describing the action taken, and the directors file all the consents with the records of the corporation. Action taken by consents is effective when the last director signs the consent, unless the consent specifies a different effective date. A signed consent has the effect of a meeting vote and may be referred to as a meeting vote in any document. Section 3.15 Director Committees (a) Creation of Committees. The board of directors may create on or more committees and appoint members of the board to serve on them. Each committee must have 2 or more directors, who serve at the pleasure of the board of directors. (b) Selection of Members. To create a committee and appoint members to it, the board must acquire approval by the majority of all the existing directors when the action is taken. (c) Required Procedures. Sections 3.6, 3.7, 3.8, 3.9, 3.10, 3.11, 3.12, 3.13 and 3.14 of this Article III, which govern meetings, notice and waiver of notice, quorum and voting requirements, conduct of the board of directors, and acting without meetings apply to committees and their members. In addition, the committees shall keep regular minutes of their proceedings and report the same to the board of directors. The committees are subject to all the procedural rules governing the operation of the board itself. (d) Authority. Each committee may exercise the specific board authority with the board of directors confers upon the committee in the resolution creating the committee. Provided, however, a committee may not: (1) approve or recommend to members dissolution, merger, or the sale, pledge, or transfer of all or substantially all of the corporation's assets; (2) elect, appoint, or remove directors or fill vacancies on the board of directors or on any of its committees; or (3) adopt, amend, or repeal the articles or bylaws. (e) Audit Committee. The board of directors, by resolution adopted by the affirmative vote of a majority of the directors then in office, may create an audit committee of 3 or more directors designated by the board of directors, but not employed by the corporation. The committee shall have the power to appoint, oversee, and assist accountants or auditors in any audit or review of the records of the corporation. Section 3.16 Compensation, Loans to, or Guarantees for Directors (a) Director Compensation. The board of directors may, upon approval of the majority of that board, pay each director expenses, if any, of attendance at each board meeting or committee meeting of the board. The directors shall not be paid a salary or fee for attending the meeting. A director may, however, serve the corporation as an employee and receive compensation. (b) Loans to or Guaranties for Directors. The corporation may not lend money to or guarantee the obligation of a director of the corporation. ARTICLE IV. OFFICERS Section 4.1 Number of Officers The officers of the corporation shall be a president, a vice president, a secretary, and a treasurer. The board of directors shall appoint each of these officers. The board may appoint other officers and assistant officers, including a vice president, if it deems it necessary. If the board of directors specifically authorizes an officer to appoint one or more officers or assistant officers, the officer may do so. The sam individual may simultaneously hold more than one office in the corporation. Section 4.2 Appointment and Term of Office The board of directors shall appoint officers of the corporation for a term that the board determines. If the board does not specify a term, the officers shall hold office for one year, or within that year, until they resign, die or are removed in a manner provided in section 4.3 of Article IV. A designation of a specified term does not grant to the officer any contract rights, and the board can remove the officer at any time prior to the termination of the designated term. Section 4.3 Removal of Officers The board of directors may remove any officer or agent any time, with or without cause. The removal shall be without prejudice to the contract rights, if any, of the person removed. A board's appointment of an officer or agent shall not of itself create contract rights. Section 4.4 President The president shall be the principal executive officer of the corporation. The president shall be subject to the control of the board of directors, and shall in general supervise and control, in good faith, all of the business and affairs of the corporation. The president shall, when present, preside at all meetings of the members and of the board of directors. The president may sign, with the secretary or any other proper officer of the corporation that the board has authorized, corporation deeds, mortgages, bonds, contracts, or other board authorized instruments. Section 4.5 Vice President If the board of directors appoints a vice president, the vice president shall perform, in good faith, the president's duties if the president is absent, dies, is unable or refuses to act. If the vice president acts in the absence of the president, the vice president shall have all presidential powers and be subject to all the restrictions upon the president. (If there is no vice president or the vice president is unable or refuses to act, then the secretary shall perform the presidential duties.) The vice president shall perform any other duties that the president or board may assign to the vice president. Section 4.6 The Secretary The secretary shall in good faith: (1) create and maintain one or more books for the minutes of the proceedings of the members and of the board of directors; (2) provide that all notices are served in accordance with these bylaws or as required by law; (3) be custodian of the corporate records; (4) when requested or required, authenticate any records of the corporation; (5) keep a current register of the post office address of each member; and (6) in general perform all duties incident to the office of secretary and any other duties that the president or the board may assign to the secretary. Section 4.7 The Treasurer The treasurer shall: (1) have charge and custody of and be responsible for all funds and securities of the corporation; (2) receive and give receipts for moneys due and payable to the corporation from any source, and deposit all moneys in the corporation's name in banks, trust companies, or other depositaries that the board shall select; (3) submit the books and records to a Certified Public Accountant or other accountant for annual audit or review; and (4) in general perform all of the duties incident to the office of treasurer and any other duties that the president or board may assign to the treasurer. If required by the board of directors, the treasurer shall give a bond for the faithful performance of the treasurer's duties and as insurance against the misappropriation of funds. If a bond is required, it shall be in a sum and with the surety or sureties that the board of directors shall determine. Section 4.8 Assistant Secretaries and Assistant Treasurers The assistant secretaries and assistant treasurers, in general, shall perform the duties that the secretary or treasurer, respectively, or the president or board may assign to them. The assistant treasurers shall, if required by the board, give bonds for the faithful performance of their duties an as insurance against the misappropriation of funds; the bond shall be in sums and with the sureties that the board of directors shall determine. Section 4.9 Salaries, Loans to, or Guarantees for Officers The board of directors may fix and or adjust salaries of the officers from time to time. The corporation may not lend money to or guarantee the obligation of an officer of the corporation. ARTICLE V. INDEMNIFICATION OF DIRECTORS, OFFICERS, AGENTS, AND EMPLOYEES Section 5.1 Indemnification of Directors (a) General. An individual made a party to a proceeding because the individual is or was a director of the corporation may be indemnified against liability incurred in the proceeding, but only if the indemnification is both: (1) determined permissible and (2) authorized, as defined in subsection (b) of section 5.1 (The indemnification is further subject to the limitation specified in subsection (d) of section 5.1.) (b) Determination and Authorization. The corporation shall not indemnify a director under section 5.1 of Article V unless: (1) Determination. Determination has been made in accordance with procedures set forth in the Montana Nonprofit Corporation Act that the director met the standard of conduct set forth in subsection (c) below, and (2) Authorization. Payment has been authorized in accordance with procedures listed in the Montana Nonprofit Corporation Act based on a conclusion that the expenses are reasonable, the corporation has the financial ability to make the payment, and the financial resources of the corporation should be devoted to this use rather than some other use by the corporation. (c) Standard of Conduct. The individual shall demonstrate that: (1) the individual acted in good faith; and (2) the individual reasonably believed: G) in acting in an official capacity with the corporation, that the individual's conduct was in the corporation's best interest; (ii) in all other cases, that the individual's conduct was at least not opposed to the corporation's best interests; and (iii) in the case of any criminal proceeding, that the individual had no reasonable cause to believe that the conduct was unlawful. A director's conduct with respect to an employee benefit plan for a purpose the director reasonably believed to be in the interests of the participants in or beneficiaries of the plan is conduct that satisfies the requirement of subsection (c)(2)(ii). The termination of a proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendre or its equivalent, is not, of itself, a determination that the director did not meet the standard of conduct described in this section. (d)No indemnification Permitted in Certain Circumstances. The corporation shall not indemnify a director under section 5.1 of Article V if: (1) the director was adjudged liable to the corporation in a proceeding by or in the right of the corporation; or (2) the director was adjudged liable in any other proceeding charging that the director improperly received personal benefit, whether or not the individual acted in an official capacity. (e)Indemnification Limited. Indemnification permitted under section 5.1 of Article V in connection with a proceeding by the corporation or in the right of the corporation is limited to the reasonable expenses incurred in connection with the proceeding Section 5.2 Advance Expenses for Directors The company may pay for or reimburse, in advance of final disposition of the proceeding, the reasonable expenses incurred by a director who is a party to a proceeding if: (1) by following the procedures of the Montana Nonprofit Corporation Act the board of directors determined that the director met requirements (3)-(5) listed below; and (2) the board of directors authorized an advance payment to a director; and (3) the director has furnished the corporation with a written affirmation of the director's good faith belief that the director has met the standard of conduct described in section 5.1 of Article V; and (4) the director has provided the corporation with a written undertaking, executed personally or on the director's behalf, to repay the advance if it is ultimately determined that the director did not meet the standard of conduct; the director's undertaking must be an unlimited general obligation, but need not be secured, and the corporation may accept the undertaking without reference to financial ability to make repayment; and (5) the board of directors determines that the facts then known to it would not preclude indemnification under section 5.1 of Article V or the Montana Nonprofit Corporation Act. Section 5.3 Indemnifications of Officers, Agents and Employees The board of directors may choose to indemnify and advance expenses to any officer, employee, or agent of the corporation applying those standards described in sections 5.1 and 5.2 of Article V. Section 5.4 Mandatory Indemnifications Notwithstanding any other provisions of these bylaws, the corporation shall indemnify a director or officer, who was wholly successful, on the merits or otherwise, in the defense of any proceeding to which the director or officer was a party because he or she is or was a director or officer of the corporation, against expenses incurred by the director or officer in connection with the proceeding. ARTICLE VI. CONTRACTS, LOANS, CHECKS AND DEPOSITS; SPECIAL CORPORATE ACTS Section 6.1 Contracts The board of directors may authorize any officer or officers, agent or agents, to enter into any contract or execute or deliver any instruments in the name of and on behalf of the corporation and such authorization may be general or confined to specific instruments. Section 6.2 Loans The corporation shall not allow anyone to contract on behalf of it for indebtedness for borrowed money unless the board of directors authorizes such a contract by resolution. The corporation shall not allow anyone to issue evidence of the corporation's indebtedness unless the board of directors authorizes the issuance by resolution. The authorization may be general or specific. Section 6.3 Checks, Drafts, etc. The board of directors shall authorize by resolution which officer(s) or agent(s) may sign and issue all corporation checks, drafts or other orders for payment of money, and notes or other evidence of indebtedness. The board of directors shall also determine by resolution the manner in which these documents will be signed and issued. Section 6.4 Deposits The treasurer of the corporation shall deposit all funds of the corporation, that are not being used, in banks and other depositories; the board of directors shall authorize by board resolution the exact location of the banks and depositories. Section 6.5 Voting of Securities Owned by this Corporation. (a) General. Subject to the specific directions of the board of directors, any shares or other securities issued by another corporation and owned or controlled by this corporation may be voted at any meeting of security holders of the other corporation by the president of this corporation who may be present. (b) Proxy. Whenever, in the judgement of the president, or in the president's absence, the vice-president, it is desirable for this corporation to execute a proxy or written consent in respect to any shares or other securities issued by any other corporation and owned by this corporation, the president or vice-president of this corporation, acting in the name of this corporation, shall execute the proxy or written consent. The president or vice-president will not need the authorization of the board to take this action. Nor will the president or vice-president need to affix a corporate seal, countersignature or attestation by another officer. Any person or persons designated in this subsection as the proxy or proxies of this corporation shall have the full right, power, and authority to vote the shares or other securities issued by the other corporation and owned by this corporation the same as the shares or other securities might be voted by this corporation. ARTICLE VIL PROHIBITED TRANSACTIONS Section 7.1 Prohibited Transactions (a) Prohibition Against Sharing in Corporation Earnings, No member, director, officer, employee, committee member, or person connected with the corporation shall receive at any time any of the net earnings or pecuniary profit from the operations of the corporation; provided that this shall not prevent the corporation's payment to any person of reasonable compensation for services rendered to or for the corporation in effecting any of its purposes as determined by the board of directors. (b) Prohibition Against Issuance of Stock. Dividends Distributions. The corporation shall not have or issue shares of stock. No dividends shall be paid. No part of the income or assets of the corporation shall be distributed to any of the persons listed in section 8.1(a) without full consideration. The corporation is prohibited from lending money to guarantee the obligation of a director or officer of the corporation. (See sections 3.16(b) and 4.9). No member of the corporation has any vested right, interest or privilege in or to the assets, property, functions or activities of the corporation. The corporation may contract in due course, for reasonable consideration, with its members, trustees, officers without violating this provision. (c) No Personal Distributions Upon Dissolution. None of the persons listed in section 7.1(a) shall be entitled to share in the distribution of any of the corporation's assets upon the dissolution of the corporation. All members of the corporation are deemed to have expressly agreed that, upon the dissolution or the winding up of the affairs of the corporation, whether voluntary or involuntary, the assets of the corporation, after all debts have been satisfied, then remaining in the hands of the board of directors, shall be distributed, transferred, conveyed, delivered, and paid over exclusively to the organization or organizations as the board of directors may designate. Receiving organizations must be organized and operated exclusively for charitable, education, religious or scientific purposes and at the time qualify as an exempt organization or organizations under section 501(c) (3) of the Internal Revenue Code of 1986 as it now exists or may later be amended. (d) Other Prohibitions. Neither the corporation, nor its directors, nor its officers have any power to cause the corporation to do any of the following with Related Parties: (1) make any substantial purchase of securities or other property, for more than adequate consideration in money or money's worth; (2) sell any substantial part of its securities or other property, for less than an adequate consideration in money or money's worth. For the purpose of this subsection, Related Parties means any person who has made a substantial contribution to the corporation, or with a brother, sister, spouse, ancestor, or lineal descendant of the person giving, or with a corporation directly or indirectly controlled by the person giving. Section 7.2 Prohibited Activities Notwithstanding any other provisions of these bylaws, no member, director, officer, employee or representative of this corporation shall take any actin or carry on any activity by or on behalf of the corporation not permitted to be taken or carried on by an exempt organization under section 501(c)(3) of the Internal Revenue Code of 1986 and its regulations as they now exist or as they may later be amended, or by an organization, contributions to which are deductible under section 170(d)(2) of the Internal Revenue Code of 1986 and regulations as they now exist or as they may later be amended. Section 7.3 Purchase of Memberships The corporation may not purchase any of its memberships or any right arising from membership. Section 7.4 Corporation Funds Used For Indemnification Corporate funds may be used to benefit officers and directors by way of indemnification, but only if such indemnification is authorized by Article V of these bylaws. ARTICLE VIII. EMERGENCY BYLAWS Section 8.1 Emergency Bylaws (a) General. The following provisions of this Article VIII, section 8.1 "Emergency Bylaws" shall be effective during an emergency, which is defined as when a quorum of the corporation's directors cannot be readily assembled because of some catastrophic event. (b) Notice of Board Meetings. During an emergency, any one member of the board of directors or any one of the following officers: president, any vice- president, secretary or treasurer, may call a meeting f the board of directors. Notice of the emergency meeting need be given only to those directors and officers whom it is practicable to reach, and may be given in any practical manner, including by publication and radio. The notice shall be given at Least 6 hours prior to commencement of the meeting. (c) Temporary Directors and Quorum. During an emergency, one or more officers of the corporation present at the emergency board meeting shall be considered to be temporary director(s) for the meeting. The number of officers needed shall equal the number of directors necessary to constitute a quorum. The officers shall serve in the order of rank, and within the same rank, in order of seniority. In the event that less than a quorum (as determined by Article III, section 3.10) of the directors are present (including any officers who are to serve as directors for the meeting), those directors present (including the officers serving as directors) shall constitute a quorum. (d) Actions Permitted To Be Taken. The board as constituted in paragraph (c), and after giving notice as described in paragraph (b) may: (1) Officer's Powers. Prescribe emergency powers to any officer of the corporation; (2) Delegation of Any Power. Delegate to any officer or director any of the powers of directors; (3) Lines of Succession. Designate lines of succession of officers and agents, in the event that any of them are unable to discharge their duties; (4) Relocate Principal Place of Business. Relocate the principal place of business or designate successive simultaneous principal place of business; (5) All Other Action. Take any other action, convenient, helpful, or necessary to carry on the business of the corporation, including the following: Section 9.1 Amendments ARTICLE IX. AMENDMENTS (a) General. Unless otherwise required by the Montana Nonprofit Corporation Act, an amendment to a corporation's bylaws must be approved: (1) by the board if the amendment does not relate to the number of directors, the composition of the board, the term of office of directors, or the method or way in which directors are elected or selected; or (2) by the members by two-thirds of the votes cast or a majority of the voting power, whichever is less. (b) Notice of Meeting to Vote Amendment. If the board or the members seek to have the amendment approved by the members at a membership meeting, the secretary of the corporation shall give written notice to the corporation members of the proposed membership meeting, in accordance with section 2.7. The notice must state that the purpose, or one of the purposes, of the meeting is to consider the proposed amendment and must contain or be accompanied by a copy or summary of the amendment. (c) Approval of Amendment by Written Consent or Written Ballot. If the board or the members seek to have the amendment approved by the members by written consent or by written ballot, the material soliciting the approval must contain or be accompanied by a copy or a summary of the amendment. (d) Members' Rights. The corporation's members may amend or repeal or reinstate any bylaw amended, deleted or added by the board of directors. CERTIFICATE I, the undersigned, President of THREE MILE VIEWS HOMEOWNERS ASSOCIATION, INC., do hereby certify that the attached and foregoing is a true and complete copy of the By -Laws of said corporation, including all amendments, and as the same are in force at the date here. IN WITNESS WHEREOF, I have hereunto subscribed my name this day of 2007. STATE OF MONTANA ss. COUNTY OF LAKE This instrument was acknowledged before me on the day of August, 2000 by Notary Public for the State of Montana Residing at My commission expires TICOR TITLE INSURANCE COMPANY Policy No. 7403078- 1 1 7 9 GUARANTEE TICOR TITLE INSURANCE COMPANY, a California corporation, herein called the Company, guarantees the Assured against actual loss not exceeding the liability amount stated in Schedule A which the Assured shall sustain by reason of any incorrectness in the assurances set forth in Schedule A. 1. No guarantee is given nor liability assumed with respect to the identity of any party named or referred to in Schedule A or with respect to the validity, legal effect or priority of any matter shown therein. 2. The Company's liability hereunder shall be limited to the amount of actual loss sustained by the Assured because of reliance upon the assurance herein set forth, but in no event shall the Company's liability exceed the liability amount set forth in Schedule A. PLEASE NOTE CAREFULLY THE LIABILITY EXCLUSIONS AND LIMITATIONS AND THE SPECIFIC ASSURANCES AFFORDED BY THIS GUARANTEE. IF YOU WISH ADDITIONAL LIABILITY, OR ASSURANCES OTHER THAN AS CONTAINED HEREIN, PLEASE CONTACT THE COMPANY FOR FURTHER INFORMATION AS TO THE AVAILABILITY AND COST. Dated: Authorized S gnatory TICOR TITLE INSURANCE COMPANY By 7 Attest �F President Secretary Reorder Form No. 8993 (Reprinted 12/00) Miscellaneous Guarantee Face Page For Use In Montana & Washington Guarantee No.: 7403078-1179 Order No.: 2060808380 Liability: 1,000.00 Fee: $50.00 Effective Date of Guarantee: March 12, 2008 at 7:30 AM The Assurances referred to on the face page hereof are: That, according to the Company's property records relative to the following described real property A tract of land situated, lying and being in the SI/2 of the SI/2 of Section 1, Township 28 North, Range 22 West, Principal Meridian, Flathead County, Montana, more particularly described as follows: Lot 3 of Block. 2 of the Amended Subdivision Plat of Lots 1., 2 and 3 of Block 2 of Lot 24 of Block 1. of Three Mile Subdivision in the office of the County Clerk and Recorder in the County of Flathead, State of Montana. The above described tract of land is to be known and designated as Three Mile Views. Title to said real property is vested in: Richard J. Erickson Order No: 2060808380 Policy No: 7403078-11.79 1 EXCEPTIONS: 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on Real Property or by the public records. 2. Unpatented mining claims; reservations or exceptions in the United States Patents or in Acts authorizing the issuance thereof; water rights, claims or title to water. 3. Title to any property beyond the lines of the real property expressly described herein, or title to streets, roads, avenues, lanes, ways or waterways on which such real property abuts, or the right to maintain therein vaults, Tunnels, ramps, or any other structure or improvement; or any rights or easements therein unless such property, rights or easements are expressly and specifically set forth in said description. 4. County road rights -of -way not recorded and indexed as a conveyance of record in the office of the Clerk and Recorder pursuant to Title 70, Chapter 21, M.C.A., Including, but not limited to any right of the Public and the County of Flathead to use and occupy those certain roads and trails as depicted on County Surveyor's maps on file in the office of the County Surveyor of Flathead County. 5. Taxes, including any assessments collected therewith, for the year 2008 which are a lien not yet payable. 6. Any right, title or interest to all minerals in or under said land including, but not limited to metals, oil, gas, coal, stone, and mineral rights, mining rights and easement rights or other matters relating thereto, whether expressed or implied. 7. Easements, reservations, restrictions, notes and dedications, as shown on Certificate of Survey No. 11421 8. An easement for the purpose shown below and rights incidental thereto as set forth in document: Granted to: Pacificorp dba Pacific Power & Light Company. Purpose: Public Utilities Recorded: June 26, 1998 Instrument No.: 1998-026-0912-0, of Official Records. 9. An easement for the purpose shown below and rights incidental thereto as set forth in a document. Granted to: Northview Heights, LLC Purpose: a perpetual easement for the -sole purpose of installation of water mains, sewer mains, electrical lines, gas lines, cable television lines or other necessary utilities to serve a proposed subdivision, and ingress and egress for the maintenance and repair of said mains and lines, across the real property owned by the GRANTORS. Recorded: November 14, 2002 Instrument/File No. 2002-318-1125-0, of Official Records. 10. Terms, provisions, covenants, conditions, definitions, obligations, reservations and restrictions, contained in Document: Purpose: Resolution No. 4842 for the Alteration of the Boundaries of The City of Kalispell Recorded: November 10, 2003 Instrument No.: 2003-314-1118-0, of Official Records. 11. An easement for the purpose shown below and rights incidental thereto as set forth in document: Granted to: Flathead Electric Cooperative, Inc. Purpose: Public Utilities Recorded: April 29, 2004 Instrument No.: 2004-120-0903-0, of Official Records. 12. Easements, reservations, restrictions, notes and/or dedications as shown on the official plat of Three Mile Subdivision.. 13. Terms and provisions of State of Montana, Department of Environmental Quality, Certificate of Subdivision Plat Approval, recorded with Three Mile Subdivision, of Official Records. 14. Covenants, conditions and restrictions, but omitting any covenant or restriction based on race, color, religion, sex, handicap, familial status, or national origin unless and only to the extent that said covenant (a) is exempt under Chapter 42. Section 3607 of the United States Code or (b) relates to handicap but does not discriminate against handicapped persons as set forth in the document. Recorded: August 17, 2004 Instrument No.: 2004-230-1516-0, of Official Records. 15. Terms, provisions, covenants, conditions, definitions, obligations, reservations and restrictions, contained in Document: Purpose: Declaration of Homeowners Association By -Laws of Three Mile Subdivision Recorded: August 17, 2004 Instrument No.: 2004-230-1517-0, of Official Records. 16. Terms, provisions, covenants, conditions, definitions, obligations, reservations and restrictions, contained in Document: Purpose: Subdivision Improvement Agreement Recorded: August 17, 2004 Instrument No.: 2004-230-1620-0, of Official Records. 17. Terms, provisions, covenants, conditions, definitions, obligations, reservations and restrictions, contained in Document: Purpose: Subdivision Improvement Agreement Recorded: November 18, 2004 Instrument No.: 2004-323-1117-0, of Official Records. 18. Liens, levies and assessments of the Three Mile Subdivision Homeowners Association. 19. Easements, reservations, restrictions, notes and/or dedications as shown on the official plat of The Amended Subdivision Plat. of Lots 1, 2, & 3 of Block 2 and Lot 24 of Block 1 of Three :Mile Subdivision. 20. A Deed of Trust/Trust Indenture to secure an indebtedness in the amount show below and any other obligations secured thereby: Amount: $624,438.48. Trustor/Grantor: Richard J. Erickson. Trustee: First American Title Company. Beneficiary: Flathead Bank of Bigfork. Dated: February 8, 2008 Recorded: February 8, 2008. Instrument No.: 2008-00003675 of Official Records. An agreement to modify the terms and provisions of said Deed of Trust as therein provided. Recorded: March 19, 2008. Instrument No.: 2008-00007509 of Official Records. 21. Easements, reservations, restrictions, notes and/or dedications as shown on the Preliminary plat of Three Mile Views. 22. Terms and provisions of State of Montana, Department of Environmental Quality, Certificate of Subdivision Plat Approval, to be recorded with Three Mile Views, of Official Records. 23. 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