SIAThe undersigned, as the developer of Gateway Orchard Villa, a
subdivision located in Kalispell, Montana, does hereby undertake
and agree to be bound to the City of Kalispell, a political
subdivision of the State of Montana, to construct the improvements
described herein in accordance with the plans and specifications on
file with the city, copies of which have been furnished heretofore,
and which are, by this reference, incorporated herein.
Infrastructure improvements consist of:
A. Basic water system improvements to each lot. The
estimated cost of installation is $98,345.00.
B. Basic sewer system improvements to each lot. The
estimated cost of installation is $87,215.00.
C. Roadway grading, subbase gravel, base course gravel and
paving to each lot. The estimated cost of installation
is $137,750.00.
D. Basic storm drainage improvements, including ditch
grading, storm inlets and piping. The estimated cost of
installation is $32,420.00.
The total estimated cost of the work covered by this agreement is
$355,730.00, as evidenced by the Certified Engineer's Estimates,
Exhibit 1.
The above estimates will be reduced by work in place or materials
on -site at the time this Agreement is executed.
Completion of this work is guaranteed by:
1) A Letter of Credit for $444,662.50.
The Certificate of Licensed Engineer, attached hereto as Exhibit 1,
is incorporated herein and Developer agrees to be bound by the cost
estimates set forth therein, Exhibit 2.
City of Kalispell will be afforded a reasonable opportunity to
inspect work before it is covered or concealed by other work as to
its agents and employees, request notice and opportunity to
inspect. In instances where the City requests an opportunity to
inspect particular items of work, or testing procedures for any
work, notice of the time when said work will be available for
inspection or when such testing will occur will be given to the
requesting official by telephone at least 24 hours in advance of
such time. It shall be the responsibility of the representative of
the City to be present at the noticed time or to waive the right to
inspect that work.
1
Gateway Orchard Villa shall provide for inspection of all required
public improvements by a registered professional engineer. Upon
completion of the inspection, the registered professional engineer
shall file with the City of Kalispell a statement certifying the
public improvements have been completed in accordance with the
approved plans or listing the defect in those improvements. The
City of Kalispell shall release Gateway Orchard Villa from the
Subdivision Improvements Agreement.
Should Gateway Orchard Villa fail to meet the requirements of the
requirement for inspection and certification by a registered
professional engineer, the City of Kalispell shall have the
inspections completed and the costs borne by Gateway Orchard Villa.
Gateway Orchard Villa does warrant to the City of Kalispell the
design, construction materials, and workmanship of the improvements
against any failure or defect in design, construction, material, or
workmanship which is discovered within one year of the date of
notification to the City of the substantial completion of such work
or any portion thereon. The obligation of the undersigned under
this warranty shall be limited to the repair or replacement of the
defective work or material, plus the restoration of any area or
improvement disturbed during the course of such repair or
replacement. Should Gateway Orchard Villa fail to fulfill this
warranty by a prompt repair or replacement of defective work or
material, the City of Kalispell shall have the right to contract
for such work to be performed at the expense of Gateway Orchard
Villa, and Gateway Orchard Villa agrees to pay the cost thereof on
demand.
Gateway Orchard Villa has obtained an irrevocable commitment for
financing as evidenced by the Ronan State Bank letter attached
hereto and by this reference incorporated herein.
In the event that Gateway Orchard Villa does not complete the
improvements by the completion date for the various items of work
shown on Exhibit 3, attached hereto and by this reference
incorporated herein, plus any extension granted in writing by the
City of Kalispell, the City shall, on demand to the issuer of the
financing commitment, be paid the amount of the financing, less the
estimated cost for each item listed on the Engineer's Certificate
incorporated in the Improvement Agreement that has been completed
to the satisfaction of the City. The City shall utilize such funds
to complete the work that remains to be done and upon completion
shall return any surplus funds to the entity from whom received.
If the City of Kalispell determines that any improvements are not
constructed in compliance with the specifications, it shall furnish
the Subdivider with a list of specific deficiencies and may
withhold collateral sufficient to ensure proper completion. If the
City of Kalispell determines that the Subdivider will not construct
any or all improvements to required specifications, or within the
time limits, it may withdraw collateral and use these funds to
construct the improvements and correct any deficiencies to meet
specifications. Unused portions of these funds shall be returned
2
to the Subdivider or crediting institution.
Dated this day of , 1993
GATEWAY ORCHARD VILLA
GESN PARTNERSHIP
Frank Strickland, General Partner
ATTEST:
Dated this day of ,e u _, 1993
City of Kalispell
Douglas Rauthe, Mayor
ATTEST:
ecre ary, Assistant
3
CERTIFICATE OF LICENSED ENGINEER
The undersigned, acting for Thomas, Dean & Hoskins, Inc., does
hereby certify that said firm is duly licensed to practice Civil
Engineering in the State of Montana and has performed such services
in connection with Gateway Orchard Villa Subdivision in Flathead
County, Montana.
The undersigned further certifies that the cost estimates
attached hereto and by this reference incorporated herein he has
prepared. The undersigned further represents that the estimates
are comparable to similar work completed in and by the City of
Kalispell.
Dated this day of , 1993.
Ar
THOMAS, DE N & HOSKINS, INC.
By:
Michael W. Fraser 3826 E.
4
EXHIBIT 2
GATEWAY ORCHARD VILLAS
CONSTRUCTION COST ESTIMATES
SCHEDULE IA
1, ;MAINu--r
Estimated
Unit
Item
Description
Quan/Unit
Price
Amount
1.
Type II Pipe
Bedding
100
C.Y.
5.00
$ 500.00
2.
Water Main
8" PVC DR 18
1420
L.F.
9.00
12,780.00
6" PVC DR 18
1595
L.F.
7.00
11,165.00
3.
Fire Hydrants with
Auxiliary valves
4
EA
1600.00
6,400.00
4.
Cast Iron Fittings
1800
LBS.
2.00
3,600.00
5.
Connect to Existing
2
EA
600.00
1,200.00
Main
6.
Services
88
EA
650.00
57,200.00
7.
Asphalt Pavement
Replacement
By City
0.00
8.
Gate Valve
8"
5
EA
600.00
3,000.00
6"
5
EA
500.00
2,500.00
TOTAL
$ 98,345.00
SCHEDULE II
SEWER IMPROVEMENTS
1.
Type II Bedding
100
C.Y.
5.00
$ 500.00
2.
Sewer Main
8" PVC SDR 35
2500
L.F.
8.00
20,000.00
4" PVC SDR 35
2640
L.F.
4.00
10,560.00
3.
Type A Exc with
Type I Backfill
3000
C.Y.
7.00
21,000.00
4.
Manhole (48" diameter)
5' Deep
11
EA
2000.00
22,000.00
5.
Extra Depth of
Manhole
33
V.F.
80.00
2,640.00
6
Estimated
Unit
Item
Description
Quan/Unit
Price
Amount
6.
Connect to Existing
Sewer
1
EA
1500.00
1,500.00
7.
8" x 4" Service Wye
88
EA
80.00
7,040.00
8.
Cleanouts
2
EA
800.00
1,600.00
9.
Asphalt Pavement
Replacement
25
S.Y.
15.00
375.00
TOTAL
$ 87,215.00
SCHEDULE III
STREET CONTSTRUCTION
1.
Street Excavation
(24" deep)
5800
C.Y.
4.50
26,100.00
2.
Select Subbase
(12" thick)
2900
C.Y.
4.00
11,600.00
3.
Select Subbase
7050
S.Y.
4.00
28,200.00
4.
Asphalt Cement
Pavement (4")
7050
S.Y.
3.00
21,150.00
5.
Curb and Gutter
3800
L.F.
6.00
22,800.00
6.
Sidewalk
11000
S.F.
1.90
20,900.00
7.
Lighting
Lump
Sum
7,000.00
TOTAL
$ 137,750.00
SCHEDULE IV
STORM DRAINiAGE IMPROVEMENTTS
1.
Storm Sewer
12" PVC
335
L.F.
12.00
4,020.00
2.
Type A Exc with
Type I Backfill
200
C.Y.
7.00
1,400.00
3.
Storm Drain Inlets:
Curb
10
EA
1000.00
10,000.00
4.
Outlet Structure
5
EA
500.00
2,500.00
TOTAL
$ 17,920.00
N.
Estimated Unit
Item Description Quan/Unit Price
STORY[ SEWER
DITCH RELOCATION
1. Ditch Excavation 1000 C.Y. 6.00
2. Inlet/Outlet 2 EA 1500.00
3. Seeding
Replacement 2200 S.Y. 2.50
TOTAL
SUMMARY
Water Main Improvements
Sewer Main Improvements
Street Improvements
Storm Drainage Improvements
TOTAL PROJECT
Amount
6,000.00
3,000.00
5,500.00
$ 14,500.00
$ 98,345.00
87,215.00
137,750.00
32,420.00
7
EXHIBIT 3
COMPLETION SCHEDULE
GATEWAY ORCHARD VILLA
Start Utility Construction
Complete Utility Construction
Complete Road Base Course
Complete Curb & Gutter
Complete Paving
May 1, 1993
July 1, 1993
July 15, 1993
July 31, 1993
August 31, 1993
RONAN STATE BANK
PABLO COMMUNITY BRANCH
IRREVOCABLE STANDBY LETTER OF CREDIT #474
August 16, 1993
TO: City of Kalispell
ATTN: Douglas D. Rauthe, Mayor
Kalispell, MT 59901
FROM: Ronan State Bank
Box B
Ronan, MT 59864
RE: Irrevocable Standby Letter of Credit #474
AMOUNT: $121,937.50
EFFECTIVE DATE: August 16, 1993
EXPIRATION: August 16, 1994
Dear Mayor Rauthe:
We hereby establish a Standby Irrevocable Letter of Credit
in your favor for the sum not exceeding a total of
$121,937.50 for the account of GESN, a Montana General
Partnership, PO Box 420, Lakeside, MT 59922-0420. Draws on
the Letter of Credit shall be made by City of Kalispell upon
its written statement signed by a City Commissioner and in
the following form:
RE: Ronan State Bank
Irrevocable Standby Letter of Credit No. 474
Dated 8-16-93
The City of Kalispell hereby draws under said Letter of
Credit No. 474 in the amount of $ Said
amount is being drawn to pay for the cost of
improvements at the Gateway Orchard Villa Subdivision,
which were to be completed as set forth in the attached
Certificate of Completion Agreement and signed by
Michael W. Fraser. The City has given written notice
to Gateway Orchard Villas Subdivision of its failure
to timely complete said improvements and has set
forth the particular improvements not so completed,
a copy of which written notice is attached.
Phone (406) 676-4600 • Post Office Box B • Ronan, Montana 59864.0069
Such draft and supporting documents shall be presented at
the office of Ronan State Bank, Box B, Ronan, MT 59864,
ATTN: Commercial Loan Department.
This Letter of Credit shall terminate and expire either: (a)
upon the delivery to the Bank of the written certificate by
The City of Kalispell stating that Gateway orchard Villas
Subdivsion has satisfactorily completed the improvements for
said Gateway Orchard Villas Subdivision, as above referred
to, or (b) August 16, 1994, whichever date is the sooner.
This Letter of Credit is subject to the Montana Uniform
Commercial Code and the Uniform Custom and Practice for the
Documentary Credits (1983 Revision) International Chamber of
Commerce Document No. 400.
Ronan StaLe ank
BY '-"' A.F. Wied&ma'n, III
Vice -President
ATTEST:
t "
RE: Gateway Orchard Villas Letter of Credit No. 474
APPROVAL
The foregoing Letter of Cre t is hereby approve� and
accepted. Dated this 16* day of 1993.
CITY OF KALISPELL
If-ri --Rauthe, Mayor
CERTIFICATE OF COMPLETION
GATEWAY ORCHARD VILLAS
I, Michael W. Fraser, a Registered Professional Engineer in the
State of Montana, do hereby certify that the following listed
improvements have been completed in substantial conformance to the
approved plans and specifications. The quantities and unit prices
are accurate estimates of the cost of construction of the completed
improvements.
SCHEDULE IA
WATER MAIN IMPROVEMENTS - ON SITE
Estimated
Item Description Quan/Unit
1. Type II Pipe
Bedding
2.
Water Main
87, PVC DR 18
611 PVC DR 18
3.
Fire Hydrants with
Auxiliary valves
4.
Cast Iron Fittings
5.
Connect to Existing
Main
6.
Services
7.
Asphalt Pavement
Replacement
8.
Gate Valve
811
6"
1411
�Tiii l
100 C.Y.
1420 L.F.
1595 L.F.
4 EA
1800 LBS.
2 EA
1
By City
5 EA
5 EA
Unit
Price
5.00
1600.00
2.00
600.00
600.00
500.00
Amount
$ 500.00
12,780.00
11,165.00
6,400.00
3,600.00
1,200.00
57,200.00
0.00
3,000.00
2,500.00
$ 98,345.00
1
Estimated Unit
Item Description Quan/Unit Price Amount
SCHEDULE II
SEWER IMPROVEMENTS
1. Type II Bedding 100 C.Y. 5.00 $ 500.00
2. Sewer Main
8" PVC SDR 35 2500 L.F. 8.00 20,000.00
4" PVC SDR 35 2640 L.F. 4.00 10,560.00
3. Type A Exc with
Type I Backfill
3000
C.Y.
7.00
21,000.00
4.
Manhole (48" diameter)
5' Deep
11
EA
2000.00
22,000.00
5.
Extra Depth of
Manhole
33
V.F.
80.00
2,640.00
6.
Connect to Existing
Sewer
1
EA
1500.00
1,500.00
7.
8" x 4" Service Wye
88
EA
80.00
7,040.00
8.
Cleanouts
2
EA
800.00
1,600.00
9.
Asphalt Pavement
Replacement
25
S.Y.
15.00
375.00
SUBTOTAL
$ 87,215.00
SCHEDULE III
STREET CONSTRUCTION
1. Street Excavation
(24" deep)
5800
C.Y.
4.50
26,100.00
2.
Select Subbase
(12" thick)
2900
C.Y.
4.00
10,600.00
3.
Select Subbase
7050
S.Y.
4.00
0.00
4.
Asphalt Cement
Pavement (4")
7050
S.Y.
3.00
0.00
5.
Curb and Gutter
3800
L.F.
6.00
0.00
6.
Sidewalk
11000
S.F.
1.90
0.00
Estimated Unit
Item Description Quan/Unit Price Amount
7. Lighting Lump Sum 3,500.00
SUBTOTAL $ 40,200.00
TOTAL COMPLETED $ 225,760.00
The Letter of Credit amount may be reduced by up to 125% of this amount or
$282,200.00. The remaining work to be completed is estimated to cost
$97,550.00 or a Letter of Credit of $121,937.50.
-A law..Pt
MicWael W. Fraser, 3826E
3