HomeMy WebLinkAboutN 14th Storm Payback.pdf LR G
AGREEMENT FOR REIMBURSEMENTTHIS AGREEMENT, made and entered into this __
March 2005,"by' and between the CITY OF BOZEMAN, a municipal
corporation, organized under the laws of the State of Montana, ("City"), and Kevin Cook of
Durston Development Corp., a Montana Corporation, ("Developer").
WHEREAS, Developer presently owns land located in Gallatin County, Montana, more
particularly described as follows: Walton Homestead Subdivision P.U.D, according to the map
or plat thereof on file and of record in the office of the Clerk and Recorder of Gallatin County,
Montana,
WHEREAS, the City owns and operates a waterr system, sanitary sewer system, storm
drainage system, and City streets within and adjacent to its corporate limits; and
WHEREAS, Developer has constructed certain extensions to said systems more
particularly described on Exhibit "A" attached hereto and incorporated herein by this reference,
which extensions are capable of serving the tract herein above described; and
WHEREAS, the extensions to said systems described in Exhibit "A" are located within
the area served by the City; and
WHEREAS, the area capable of being served by the extensions to said systems described
in Exhibit "A", are herein referred to as "the benefitted properties", and is particularly described
in Exhibit "A" attached hereto, and by this reference incorporated herein; and
WHEREAS, the berief tted properties did not participate in the original cost of
construction of the extension described in Exhibit "A", the total of which amounts to
$172,175.50; and
WHEREAS, the City and the Developer desire to and intend by this agreement to provide
terms and conditions by which Exhibit "A" properties may connect to, and utilize the extensions;
and
WHEREAS, the parties hereto agree that the City will charge and collect a fair pro rata
share from each of the described benefitted properties as they connect to said extensions;
NOW, THEREFORE, in consideration of the conveyance to the City of the extensions
described in Exhibit "A", and the mutual covenants contained herein, it is agreed by and between
the City and Developer as follows:
1. The parties agree that the water, sanitary sewer, and storm drainage line extensions
and street extension have been constructed and installed in accordance with the requirements of
the City and the City Engineer. The Developer has conveyed his interest in the extensions and
has secured or granted any necessary easements for said extensions to the City. The City has
accepted said extensions and easements for maintenance as part of its water, sewer, storm
drainage, and street systems.
2. The Developer has submitted to the City the contractor's unit costs for construction,
and engineering costs directly attributable to the installation of the water, sanitary sewer, and
storm drainage lines, and street extension, which costs are attached and incorporated by
reference as Exhibit "B". The Developer does hereby certify that the costs listed in Exhibit `B"
are solely related to the extension of the water, sanitary sewer, storm drainage lines and street
extension to his property described above, approximate the original amount bid for said
extensions, and do not reflect costs related to the water, sanitary sewer, storm drainage lines, and
streets installed on said property.
3. The Developer has submitted an as-built set of plans together with the engineer's
certification that the project was completed in accordance with the applicable laws, rules and
regulations and cost of the extensions.
04-06 2005
1
4. The City agrees to collect from the owners of property benefitted by said extensions
who did not contribute to the cost of construction of said extensions, and who subsequently
connect to or use the same, a fair pro rata share of the cost of such construction based upon the
sum of$8,870.90 per gross acre, which unit charge shall be conclusively presumed to be a fair
pro rata charge against the benefitted property (50% of the construction cost for water, sanitary
sewer and storm drainage lines, plus 100% of the cost of street construction east of centerline).
The reimbursement charges are in addition to the usual and normal charges that will be made by
the City for service connections, monthly service charges and impact fees. The Developer
hereby releases the City from any and all claims that may arise out of the collection of said
charges, including but not limited to error in calculation of proportionate cost, failure to collect
fees set forth herein and in making a determination that the property or portion thereof is or is
not benefitted by said services.
5. The City shall account for funds received and remit said funds to Durston
Development Corp., designated by writing as, the agent to receive said proceeds by the
Developer, approximately thirty (30) days following receipt of said funds, less an administrative
fee of seven percent (7%) of the amount received. No extensions or connections shall be made
to the water, sanitary sewer, storm drainage lines, or street extension without first paying the
required amount and with the full knowledge of the City. However, if the City, for whatever
reason, fails to collect the required fee hereunder, no liability shall arise nor any claim be made
by the Developer against the City.
6. It is agreed that this agreement shall continue until Developer has recovered fifty
percent(50%) of his total "as-built" construction costs associated with water, sanitary sewer, and
storm drainage lines, and has recovered sixty five and one-half percent (65.5%) of his total "as-
built" construction costs associated with street extension, or upon the expiration of ten (10)
years, whichever shall occur 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. Provided, however, that should this agreement not provide Developer with
reimbursement as described above within said ten (10) year period, this agreement may be
extended by way of a mutual agreement between the parties, unless such an extension would
work a hardship to the City.
7. Construction and installation of the water, sanitary sewer, storm drainage lines and
street extension is limited specifically to the terms and area covered by this agreement. Nothing
in this agreement is to be construed as an obligation on the part of Developer to extend the water,
sanitary sewer, storm drainage lines or street extension to any points beyond those contemplated
in this agreement and described in Exhibit"A.".
8. This Agreement has no effect on City charges for utility connections or impact fees.
The City may connect to the above described extensions other main extensions or side lateral
extensions, as appropriate. Such connections shall not constitute grounds for reimbursement.
Any connections to such extensions of the above described extensions shall not constitute
grounds for reimbursement. The City shall be the sole,judge of what constitutes a main, side
lateral extension, or sewer service.
04-06-2005
2
IN WITNESS WHEREOF then Parties hereto have executed this instrument the day and
year first above written.
r"1, -ex�
Durston Development TY OF BOZEMAN
By: Kevin Cook. Vice President By: Chris A. Kukulski, City Manager
STATE OF MONTANA ) o
) ss. ATTEST-.
County of Gallatin ) Robin L.-Sullivan, Clerk of Comm
.f
On this 04--d—ayof o ( 2005, before me,the undersigned, a
Notary Public for the State of Mon a, personally appeared Chris A. Kukulski 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.
1N 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 Md`ntana
(Printed Name)
Residing at Bozeman
My Commission Expires: 03 / Z5 /20j21
State of Montana )
):ss.
County of Gallatin }
On this 74` day of 2005, before me, the
undersigned, a Notary Public for the State of Montana, personally appeared Kevin Cook, known
to me to be the Vice President of Durston Development Corp., person whose name is subscribed
to the within instrument, and acknowledged to me that he executed the same for and on behalf of
Durston Development Corp..
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the
day and year first above written.
(SEAL)
Not is for the State of Montana
�uDY ��lS
(Printed Name)
Residing at MT-
My Commission Expires: r l -1;)L- 1200G
C�
- 04-06-2003
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