Phase VI SIASUBDIVISION IMPROVEMENT AGREEMENT
THIS AGREEMENT, made and entered into this day of , 2003,
by and between CITY COUNCIL, CITY OF KALISPELL, MONTANA, Party of the First Part and
hereinafter referred to as the CITY, and SOMERS LAND COMPANY, a corporation located at
1995 Third Avenue East, Kalispell, MT, Party of the Second Part and hereinafter referred to as
DEVELOPER.
WITNESSETH:
THAT WHEREAS, the Developer is the owner and developer of a new subdivision known as
Ashley Park, Phase V, located in Kalispell, Montana in the N 1/2, SE 1/4 of Section 19, Township
28N, Range 21W, Flathead County, Montana; and,
WHEREAS, the City has conditioned it's approval of the final plat of Ashley Park, Phase VI,
upon the conditions as set forth in the Preliminary Plat of the Subdivision being completed and all
improvements, as cited in "Exhibit A", have not been completed at this time, and the Developer
wishes to bond for the completion of those improvements set forth in "Exhibit A"; and,
WHEREAS, the City's Subdivision Regulations require that a subdivider shall provide a
financial security of 125% of the estimated total cost of construction of said improvements as
evidenced by an estimate prepared by a licensed professional engineer included herewith as
"Exhibit 13% and,
WHEREAS, the estimated total cost of construction of said remaining improvements is the
sum of $ 57,071.40.
NOW THEREFORE, in consideration of the approval of the final plat of said Subdivision by
the City, the Developer hereby agrees as follows:
1. The Developer shall deposit as collateral with the City a Letter of Credit, or other
acceptable collateral as determined by the City Council, in the amount of $ 71,339.25 . Said
Letter of Credit or other collateral shall have an expiration date of at least sixty (60) days
following the date set for completion of the improvements, certifying the following:
a. That the creditor guarantees funds in the sum of $ 71,339.25 , which represents
125% of the estimated cost of completing the required improvements in Ashley Park,
Phase VI.
b. That if the Developer fails to complete the specified improvements within the
required period, the creditor will pay to the City immediately, and without further action,
such funds as are necessary to finance the completion of those improvements up to the
limit of credit stated in the Letter of Credit;
2. That said required improvements shall be fully completed by July 11, 2004.
Page 1
3. That upon completion of the required improvements, the Developer shall cause to be filed
with the City a statement certifying that:
a. All required improvements are complete;
b. That the improvements are in compliance with the minimum standards specified by
the City for their construction and that the Developer warrants said improvements against
any and all defects for a period of one (1) year from the date of acceptance of the
completion of those improvements by the City;
C. That the Developer knows of no defects in those improvements;
d. That these improvements are free and clear of any encumbrances or liens;
e. That a schedule of actual construction costs has been filed with the City; and,
f. All applicable fees and surcharges have been paid.
4. The Developer shall cause to be filed with the City copies of final plans, profiles, grades
and specifications of said improvements, with the certification, of the registered professional
engineer responsible for their preparation, that all required improvements have been installed
in conformance with said plans and specifications.
IT IS ALSO AGREEDs 1 BETWEEN THE PARTIES HERETO AS FOLLOWS,
TO WIT:
That the Developer shall provide for inspection of all required improvements by a registered
professional engineer before the Developer shall be released from the Subdivision Improvement
Agreement.
That if the City determines that any improvements are not constructed in compliance with the
plans and specifications, it shall furnish the Developer with a list of specific deficiencies and may
withhold collateral sufficient to insure such compliance. If the City determines that the Developer
will not construct any or all of the improvements in accordance with the plans and specifications, or
within the required time limit(s), it may withdraw the collateral and employ such funds as may be
necessary to construct the improvement(s) in accordance with the plans and specifications. The
unused portions of the collateral shall be returned to the Developer or the crediting institution, as is
appropriate.
That as improvements are completed, the Developer may apply to the City for a release of part
of the collateral deposited with the City. The proportion of the collateral released may not exceed
the proportion which the improvements completed represent of all originally required
improvements; otherwise, said Letter of Credit may not be withdrawn until released by the City.
That this agreement shall inure to the benefit of and be binding upon any successors in interest,
heirs, or assignees.
Page 2
IN WITNESS WHEREOF, the Parties to this agreement have hereunder set their hands and
seals the day and year herein before written.
ASHELY PARK, PHASE VI
SOMERS LAND COMPANY, DEVELOPER
By --
(Title)
STATE OF MONTANA, COUNTY OF FLATHEAD
1Al V, On this day off_ 2003, before me, a Notary Public for the
-- / qfLL
State of Montana, personally appeare4 Ar%Lj,,� 4L I i& U ( -,/ known to me to be
the person whose name is subscribed to the foregoing instrument and acknowledged to me that he
executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notary Seal this day and
year first above written.
(Seal)
4 -27 NOT P111"BUIC-A MKANA
-SEAL
N rk; C C-M M Ex, yr
Notary Public f the State of Montana
Residing at '741-j,� PeILL
My Commission ExpiresmQ, !a *Or)-
0
This agreement is hereby approved and accepted by the City of Kalispell this _day of
, 2003.
MAYOR, CITY OF KALISPELL
M
Mayor
ATTEST:
M
Finance Director
Page 3
EXHIBIT "B"
CERTIFICATION OF WORK TO BE COMPLETED
ASHLEY PARK, PHASE VI
SUBDIVISION ROADS
COMPLETED TO DATE
August 31, 2003
Item No.
Description
Unit
Measure
Estimated
Quantity
Unit Price
Total Price
QUANTITY
COMPLETED
TOTAL COST
COMPLETED
101
Unclassified Excavation
C.Y.
1,300
$ 3.00
$ 3,900.00
1,300.00
$ 3,900.00
102
Stabilization Fabric
S.Y.
2,889
$ 1.00
$ 2,889.00
2,889.00
$ 2,889.00
103
Select Sub -Base, W (-) Pit Run Gravel
C.Y.
1,444
$ 9.00
$ 12,996.00
1,444.00
$ 12,996.00
104
ICrushed Base, 3/4" Crushed Gravel
S.F.
26,000
$ 0.28
$ 7,280.00
6,500.00
$1,820.00
105
Hot Plant Mix Asphalt (4!'- Two Lifts)
S.F.
23,400
$ 0.90
$ 21,060.00
-
$0.00
106
Curb and Gutter
L.F.
1,350
$ 7.50
$ 10,125.00
-
$0.00
107
Sidewalk (5' Wide) w/ Prepared Base
S.F.
6,500
$ 3.00
$ 19,500.00
-
$0.00
SUBTOTAL ITEMS 101 - 107
$ 77,750.00
$ 21,605.00
WATER SYSTEM
Item No.
Description
Unit
Measure
Estimated
Quantity
Unit Price
Total Price
QUANTITY
COMPLETED
TOTAL COST
COMPLETED
201
Connect to Existing
LS
1
$ 750.00
$ 750.00
1.00
$ 750.00
202
8" PVC Water Main
L.F.
770
$ 21.00
$ 16,170.00
770
$ 16,170.00
203
8" Gate Valves and Boxes
EACH
4
$ 850.00
$ 3,400.00
4
$ 3,400.00
204
6" PVC Water Main
L.F.
30
$ 18.00
$ 540.00
30
$ 540.00
205
Fire Hydrant w/ Aux. Valves
EACH
2
$ 2,350.00
$ 4,700.00
2
$ 4,700.00
206
Tees & Misc. Fittings
EACH
4
$ 400.00
$ 1,600.00
4
$ 1,600.00
207
1" Water Services
EACH
17
$ 650.00
$ 11,050.00
17
$ 11,050.00
SUBTOTAL ITEMS 201 - 205
1
1 $ 38,210.00
1 $ 38,210.00
SEWER SYSTEM
Item No.
Description
Unit
Measure
Estimated
Quantity
Unit Price
Total Price
301
8" PVC Sewer Main
L.F.
500
$ 18.00
$ 9,000.00
302
4' Diameter Manhole w/ Ring & Cover
EACH
1
$ 1,200.00
$ 1,200.00
303
4" Sewer Services
EACH
17
$ 600.00
$ 10,200.00
SUBTOTAL ITEMS 301 - 303
$ 20,400.00
MISCELLANEOUS WORK
QUANTITY TOTAL COST
COMPLETED COMPLETED
500 $ 9,000.1
1 $ 1,200.1
17 S 10.200.1
$ 20,400.00
Item No.
Description
Unit
Measure
Estimated
Quantity
Unit Price
Total Price
QUANTITY
COMPLETED
TOTAL COST
COMPLETED
501
Topsoil
S.Y.
356
$ 1.90
$ 676.40
-
$0.00
502
Street Signs
EACH
3
$ 250.00
$ 750.00
3.00
$750.00
SUBTOTAL ITEMS 501 - 502
$ 1,426.40
$ 750.00
UTILITIES
COMPLETED TO DATE
August 31, 2003
Item No.
Description
Unit
Measure
Estimated
Quantity
Unit Price
Total Price
QUANTITY
COMPLETED
TOTAL COST
COMPLETED
601
Utility Trench
L.F.
910
$ 3.00
$ 2,730.00
910
$ 2,730.00
602
Furnish/Install 2" Conduit
L.F.
1,820
$ 1.25
$ 2,275.00
1,820
$ 2,275.00
603
Furnish/Install 3" Conduit
L.F.
910
$ 1.50
$ 1,365.00
910
$ 1,365.00
604
Sin le Phase Transformer Vault
EACH
2
$ 585.00
$ 1,170.00
2
$ 1,170.00
3 Phase Transformer Vault
EACH
1
$ 1,100.00
$ 1,100.00
1
$ 1,100.00
LO6
Gas Assist
L.F.
1,000
$ 0.25
$ 250.00
1,000
$ 250.00
SUBTOTAL ITEMS 601 - 606
$ 8,890.00
$ 8,640.00
TOTAL PROJECT BUDGET 1 $ 146,676.40
ORIGINAL TOTAL ESTIMATED COST OF CONSTRUCTION
$
146,676.40
AMOUNT COMPLETED PRIOR TO BONDING
$
89,605.00
AMOUNT OF REMAINING WORK
$
57,071.40
AMOUNT OF BOND (125% OF REMAINING WORK)
$
71,339.25
AMOUNT OF WORK COMPLETED TO DATE
$
89,605.00
PERCENTAGE OF WORK COMPLETED TO DATE
61.09%
AMOUNT OF WORK REMAINING
$
57,071.40
ORIGINAL BOND AMOUNT
$
71,339.25
AMOUNT OF BOND TO BE RETAINED (125% OF REMAINING WORK)
$
71,339.25
BOND AMOUNT TO BE RELEASED
$
-
AMOUNT PREVIOUSLY RELEASED
$
-
AMOUNT TO BE RELEASED AT THIS TIME
$ -
AS ENGINEER OF RECORD FOR ASHLEY PARK, PHASE VI, i CERTIFY THAT THE WORK
LISTED HEREIN IS CORRECT. IN ADDITION, I CERTIFY THAT THE ASSOCIATED COSTS ARE
REASONABLY ACCURATE ESTIMATES OF THE RESPECTIVE COSTS OF THE WORK. THE
VALUE OF CONSTRUCTION AND OTHER WORK COMPLETED TO DATE IS ESTIMATED TO BE: $ 89,605.00
THE TOTAL VALUE OF THE REMAINING WORK, SERVICES AND FEES IS ESTIMATED TO BE: $ 57,071.40
SECURITY HELD AT 125% OF THE REMAINING COSTS SHOULD BE IN THE AMOUNT OF: $ 71,339.25
THEREFORE, IT IS IN ACCORDANCE WITH THE SUBDIVISION IMPROVEMENTS AGREEMENT
TO REDUCE THE TOTAL AMOUNT OF THE SECURITY HELD BY: $0.00
$ 89,605.00
DENNIS F. CARVER, P.E. *ALL IMPROVEMENTS SHALL BE COMPLETED BY JULY 11, 2004