HomeMy WebLinkAbout16- Payment Agreement - Gilhousen Community Property Trust - Construction of Graf Street (South 15th Ave to McNab Street) Y�
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Payment Agreement for Construction of Graf Street
(South 151h Avenue to McNab Street)
THIS AGREEMENT is made and entered into this a AO( day of '? �,2016,
between the Gilhousen Community Property Trust(Gilhousen)whose address is 599 Hightower
Road Bozeman MT 59718 and the City of Bozeman(City), a self-governing municipal
corporation,whose address is P.O. Box 1230,Bozeman,MT 59771.
RECITALS
Whereas,Gilhousen submitted an application for preliminary plat approval for a five-lot
minor subdivision for property currently described as the SW1/4 of the NWl/4 and the NW1/4
of the SW 1/41ess right of way Mandeville Creek Annexation of Section 24,Township 2 South,
Range 5 East,Gallatin County for the purpose of creating a development known as The
Yellowstone Center(TYC);and
Whereas,Gilhousen desires,prior to preliminary plat approval and prior to approval of a
zoning site plan and building permit for theTYC,to construct certain infrastructure within its
property that Gilhousen intends to dedicate to the public,including certain improvements to: (i)
the intersection of North 19`h Avenue and Graf Street; (ii)Graf Street between South 19"'Avenue
and South 15th Avenue; and(iii)improvements to the intersection of Graf Street and what will
be South 151h Avenue if Gilhousen is granted subdivision and zoning approval. At the same time,
the City desires to have constructed Graf Street east of the intersection of South 15"'Avenue and
Graf to McNab Street.
Whereas,Gilhousen has granted the City a public access and utility easement through its
property along the alignment of Graf Street between South 191h Avenue and South 15"'Avenue
which may be reconveyed by the City if Gilhousen records a final plat for the five lot minor
subdivision on the property dedicating the same right-of-way to the City; and
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Whereas, the City desires to use transportation impact fees to fund an increase in the
capacity of Graf Street from South 19`h Avenue to South 15'h Avenue from a local street standard
to a collector street standard;and
Whereas,the City requested and Gilhousen,with a full understanding of its risks and
liabilities,agrees to contract for and oversee construction of Graf Street between South 15th
Avenue and McNab Street to a collector standard;and
Whereas,Gilhousen has obtained and shared with the City bids for construction of Graf
Street between South 19`h and McNab Street and the low bidder- Sime Construction-has
submitted to Gilhousen a unit price bid for the City's share of the project as outlined in
Attachment A for$1,728,793.70(and any change order as may be approved by the City)and the
City has reviewed said bid; and
Whereas,the City and Gilhousen desire to enter into this agreement to provide the terms
and conditions for the City to pay Gilhousen for costs associated with the City's share of the
overall construction project.
Now therefore,in consideration of the mutual promises,terms and provisions of this
agreement,Gilhousen and City agree to the terms and provisions set forth below:
1. Recitals:the above recitals are incorporated herein.
2. Pumose: The purpose of this Agreement is to provide terms and conditions for the City
to reimburse Gilhousen for the City's construction,construction administration and
inspection,material testing,as-built preparation and project close-out for the City's
Project.The City's Project includes the costs associated with the above components and
which are related to constructing Graf Street from the eastern border of Gilhousen's
property at South 151h Avenue to McNab Street.
3. Agreement not Entitlement:Nothing in this Agreement may be construed to grant
Gilhousen an entitlement to development of the property in regards to its current
preliminary plat submission or any future land development applications presented to the
City. However,as consideration for Gilhousen entering into this Agreement,the Director
of Public Works agrees to recommend to the City Commission that the Commission
agree as a condition of preliminary plat that construction of South 15th Avenue and
Arnold Street be deferred through an agreement with the City until such time as adjacent
properties are developed.
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4. City Approval of Design and Construction Documents:Prior to making any payments to
Gilhousen for the City's Project,the City must approve the design and construction
documents
5. Insurance: Gilhousen's contractor Sime Construction must provide insurance to the City
naming the City and its officers,employees and agents as additional insureds and
covering and applying to all claims,demands, suits,damages, losses,and expenses that
may be asserted or claimed against,recovered from,or suffered by the City without limit
and without regard to the cause therefore related to the City's Project and which is
acceptable to the City. Sime Construction must fuinish to the City an accompanying
certificate of insurance and accompanying endorsements in amounts not less than as
follows:
• Workers' Compensation—statutory;
• Employers'Liability-$1,000,000 per occurrence; $2,000,000 annual aggregate;
• Commercial General Liability-$1,000,000 per occurrence; $2,000,000 annual
aggregate;
• Automobile Liability-$1,000,000 property damage/bodily injury per accident;
and
• Professional Liability-$1,000,000 per claim; $2,000,000 annual aggregate.
6. Conditions for City to Pay Gilhousen: Upon certification on a monthly basis by
Gilhousen's licensed professional engineer that the work contemplated has been
completed in accordance with the approved plans and specifications the City shall,upon
Gilhousen's submission of invoices to the City's Engineering Division,pay such invoices
within 30(thirty)calendar days of the City's receipt.Notwithstanding the above,the City
will retain 5%of the invoice amounts until the City accepts all work related to the City
Project.As such,prior to the City paying the final amount on any invoices,the work must
be accepted by the City(including Gilhousen's engineer and contractor submitting and
the City accepting a signed certificate of completion and acceptance to the City).
7. Notices: Written notices sent to the parties hereto shall be deemed given if sent by first-
class mail,postage prepaid,to the principle address of each party.
8. Default: Failure of or unreasonable delay by either party to perform any term or
provision of this agreement shall constitute a default hereunder. In the event of alleged
default or breach of any term or condition of this agreement,the party alleging such i
default or breach shall give the other party not less than thirty(30)days'written notice i
specifying the nature of the alleged default and the manner in which it may be
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satisfactorily cured. The party charged shall not be considered in default for purposes of
termination or instigation of legal proceedings during any such 30-day period.
#### END OF AGREEMENT EXCEPT FOR SIGNATURES####
City of Bozeman
��. Date: I Z- 1Z—(G
Chris Kul ulski, City Manager
Karen Gilhousen
7 e��- "i Date:
Karen Gilhousen as Trustee of the Gilhousen Community Property Trust
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