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KELLER SUPPLY PAYBACK AGREEMENT FOR WATER IMPROVEMENTS
THIS AGREEMENT, made and entered into this day of
2001 by and between the CITY OF BOZEMAN, a municipal
corporation, organized under the laws of the State of Montana, ("City"), and KELLER SUPPLY
COMPANY, ("Developer").
WHEREAS, the City owns and operates a water system within its corporate limits; and
WHEREAS, Developer has constructed water improvements to the system more particularly
described as the Rawhide Ridge Road Water Main extension, which improvements are capable
of serving the tracts described and shown on Exhibit "A" and entitled "Keller Supply Water Main
Payback Boundary Exhibit", attached hereto and incorporated herein by this reference; and
WHEREAS, the extension to said system has been finally accepted by the City for
ownership, maintenance, and operation; and
WHEREAS,the property located within the payback boundary area, Exhibit"A" is within the
service area for the water main extension; and
WHEREAS, the property located within the payback boundary area, Exhibit "A.", are
specifically benefitted from and by these improvements; and
WHEREAS, the property located and described in Exhibit "A" is hereinafter referred to as
"benefitted properties"; and
WHEREAS, the cost of constructing the improvements are delineated in Exhibit
"B",attached hereto and incorporated herein by this reference; and
WHEREAS, the benefitted properties did not participate in the original cost of construction
of the improvements; and
WHEREAS, the Developer has transferred to the City the improvements; and
WHEREAS; the parties agree that the City, at its discretion, may charge and collect a fair
pro rats share of the costs of the improvements from each of the described benefitted properties
as those properties request any Site Plan review and approval. This charge will be known as a
payback charge.
NO',"!, THEREFORE, in consideration of the conveyance to the City of the improvements.
and the mutual covenants contained herein, it is agreed by and between the City and Developer
as follows:
1. The Developer agrees and certifies that the water improvements have been constructed
and installed in accordance with the requirements of the City. The Developer further agrees to
convey, to the City good unencumbered title to the improvements and secure or grant any
necessary ea�amems fcr said improvements. The City agrees to and has accepted suic'
,.. for maintenance as part of lip water syst em.
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2. The Developer has submitted to the City itemized invoices for labor, material,
engineering, and other costs directly attributable to the installation of the improvements which are
delineated in Exhibit"B". The Developer does hereby certify that the costs listed in Exhibit"B" are
directly and solely attributed to the installation of these improvements.
3. The Developer has submitted an as-built set of plans together with his professional
engineer's certification thatthe project was completed in accordance with the applicable laws, rules
and regulations.
4. Whenever a Benefitted Property applies for Site Plan Review and Approval, the City
may, in its discretion, assess a payback charge to the party applying for review or the owner of the
affected property. The payment of the payback charge may become a condition of any approval
given by the City. The payback charge will be a pro rats share of the improvement based upon the
sum of$0.11007474 per gross square foot, the Payback Charge will be the product of the number
of square feet making up in the benefitted property. This charge shall be conclusively presumed
to be a fair pro rata charge against the benefitted property and will be in addition to the usual and
normal charges made by the City.
5. Within thirty (30)days of receipt of payback charge,the City will remit the funds collected
minus the administrative fee to be retained by the City, along with an accounting to the individual
designated in writing by the Developer to receiving these proceeds. All funds distributed will be
subject to a seven percent (7%) administrative fee. No extensions or connections to these
improvements shall be allowed without the prior payment of these amounts or without the full
knowledge and approval of the City. If, for whatever reason, the City fails to collect the required
fee, no liability shall arise or any claim be made by the Developer against the City.
6. It is agreed that this agreement shall continue until Developer has recovered seventy
five percent (75%) of his total "as-built" construction costs provided in Exhibit "B", or upon the
expiration seven (7) years, whichever occurs first, whereby this agreement shall be deemed
terminated and of no further force and effect. Failure of the City to recover the maximum
reimbursement shall neither create a liability on the part of the City nor extend the Agreement
beyond the period specified herein.
7. This Agreement has no effect on City charges for utility connections or impact fees. The
City may connect,free of charge, to the above described improvements and such,connections shall
not constitute grounds for reimbursement
8. The Developer hereby agrees to release. indemnify, defend, and hold the City. its
agents, officers, and employees harmless from and against any suit, cause of action, claim, cost,
expenses, cbliaation, and liability of any character. including attorney's fees, which are brought or
asserted arising out of this agreement or out of the collection or distribution of said charges,
including but not limited to error in calculation of proportionate cost, failure to collect fees set forth
herein, defects in the construction of the improvements, and in making a determination that the
property or portion thereof is or is not benefitted by said improvements. Prior to the Developer's
obligations in this paragraph, the City will provide Developer with written notice that a third party
has made a claim against the City, its agents, officers or employees. The notice shall include a
request for a tender of defense pursuant to this paragraph and will be sent to:
3209 ^ rh venue West, Seattle, VVA 98119
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9. Developer shall not assign any right or obligation hereunder in whole or in part, without
prior written consent of the City.
10. Any amendments or modifications to this agreement or any provision herein shall be
made in writing and executed in the same manner as the original document.
11. This agreement shall be interpreted according to the laws of the State of Montana.
Venue in any dispute arising from this agreement shall be in the Eighteenth Judicial District,
Gallatin County, Montana.
12. The undersigned for the Developer acknowledges and certifies that he has authority
to execute this agreement for the Developer.
IN WITNESS WHEREOF the Parties hereto have executed this instrumentthe day and year
first above written.
DEVELOPER:
By. l.0..
Its V
CITY OF BOZEMAN:
By
Clark V. Johnson, City Manager
ATTEST:
Robin L. Sullivan, Clerk of Commission
V JA
STATE OF�A )
ss
County of )
On this C'I day of __ --�QJ\.'j 2001 before me, the undersigned, a
Notary Public for the State of Montana, personally appearedS ,,-,'rtSAMV'V\ known to me to be the
V e of KELLER SUPPLY COMPANY and the person whose name is
subscribed to the within instrument, acknowledged to me that he executed the within instrument
for and on behalf of Valley West.
IN WITNESS 1/\/HEFZE0F, I have hereunto set my "and and affixed m,,; �ictarai �e�,
day and year first above ,vr;tten.
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`j11,11111 I,"
COp-'
9 PUB
71.��. .•°.11� Notary Public for the State of Me"A wr, h.
R�
Residing at
My Commission Expire
STATE OF MONTANA )
) ss.
County of Gallatin )
On this day of 2000, before me, the undersigned, a
Notary Public for the State of Montana, personally appeared CLARK V. JOHNSON and ROBIN L.
SULLIVAN, known to me to be the City Manager and Clerk of Commission, respectively, of the City
of Bozeman and the persons whose names are subscribed to the within instrument, and
acknowledged to me that they executed the same for and on behalf of the City of Bozeman.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the
day and year first above written.
(SEAL)
Notary Public for the State of Montana
Residing at Bozeman
My Commission Expires
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EXHIBIT A
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444.19' 444.19'
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PAYBACK BOUNDARY: LOT 1, TRACT #5, 200 0 200 400
AND LOTS 1 & 2 TRACT # 6 OF GARDNER
SIMMENTAL PLAZA SUBDIVISION. SCOIe feet
KELLER SUPPLY WATER MAIN
AYBACK BCLINDARY EXHIBIT
BOZEIMA.N, MON TANA
,:. PROJECT: KELLER
Aocy I IHE CITY OF BOZEMAIN FILE NO.: PAYBOUND
~ ENGINEERING DEPARTMENT DRASURFT:�D
GI RJM
20 E. OLIVE •P.O, BOX 1230 APPROVE: --------
BOZEMAN, MONTANA 59771-1230 DATE: 03/05/01
PHONE: (406) 582-2380 -FAX: (406) 582-2363 REVISED: --------
SHEET: I of 1 SHEETS
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EXHIBIT B
Keller Supply Water Final Payback Calculations
Material Costs: (Keller Supply)
$10,064.96
Construction Costs: (Williams Plumbing and Heating)
$22,805.00
Engineering Costs: (Gaston Engineering and Surveying)
$5,910.00
Subtotal $38,779.96
Keller Supply Portion ($9,685.22)
Subtotal $29,094.74 ( " AS
7% Admin Fee $2,036.63
Total $31,131.37
Payback Rate:_ $0.11007474
Prorata 7% Admin Imporvement Total
Lot Area Percen ace Fee cost Payback
Tract 5
Lot 1 94333.75 33.35% $679.31 $9,704.45 $10,383.76
Tract 6
Lot 1 94333.75 33.35% $679.31 $9,704.45 $10,383.76
Lot 2 94152.8 33.29% $678.01 $9,685.84 $10,363.35
Total 282820.3 100.00% $2,036.63 $29,094.74 $31,131.37