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AGREEMENT FOR REBOURSEMENT
THIS AGREEMENT, made and entered into this day of
2 , by and between the CITY OF BOZEMAN, a municipal
corporation, organized under the laws of the State of Montana, ("City"), and
Bozeman Srhool District #7 , ("Developer").
WHEREAS, Developer presently owns land located in Gallatin County, Montana, more
particularly described as follows:
Lot)4 of -Milligan Minor Subdidisiou,�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 sewer system within and adjacent to its
corporate limits; and
WHEREAS, Developer has constructed a certain extension to said system more
particularly described on Exhibit "A" attached hereto and incorporated herein by this reference,
which extension is capable of serving the tract hereinabove described; and
WHEREAS, the extension to said system described in Exhibit "A" is located within the
area served by the City, but has not been finally accepted by the City for maintenance and
operation; and
WHEREAS, the area capable of being served by the extension to said system described
in Exhibit"A", is herein referred to as "the benefitted properties", and is particularly described in
Exhibit"B" attached hereto, and by this reference incorporated herein; and
WHEREAS; the benefitted properties did not participate in the original cost of
construction of the extension described in Exhibit "A", the total of which amounts to
$,35,891.73 , and
WHEREAS, the City and the Developer desire to and intend by this agreement to provide
terms and conditions by which Exhibit "B" properties may connect to, and utilize the extension;
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 extension;
NOW, THEREFORE, in consideration of the conveyance to the City of the extension
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 sewer line extension has been constructed and installed in
accordance with the requirements of the City and the Director of Public Service. The Developer
agrees to convey his interest in the extension and secure or grant any necessary easements for
said extension to the City. The City agrees to accept said extension and easements for
maintenance as part of its sewer system.
2. The Developer has submitted to the.City itemized invoices for labor, material and
engineering directly attributable to the installation of the sewer line which costs are attached and
incorporated by reference as Exhibit"C". The Developer does hereby certify that the costs listed
in Exhibit "C" are solely related to the extension of the sewer line to his property, described
above, approximate the original amount bid for said extension, and do not reflect costs related to
the sewer line installed on said property.
3. The Developer has submitted an as-built set of plans together with the engineer's
c"fication that the project was completed in accordance with the applicable laws, rules and
regulations and cost of the extension.
4. The City agrees to collect from the owners of property benefitted by said extension
who did not contribute to the cost of:construction_of said extension, 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 $1,477_.37per gross acre, which unit charge shall be conclusively presumed to be a fair
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pro rata charge against the benefitted property. 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
District Clerk, BSD #7 , 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 sewer line 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 ninety-
three percent (93%) of his total "as-built" construction costs, 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 sewer line 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 sewer line 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 extension 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 extension shall not constitute grounds
for reimbursement. The City shall be the sole judge of what constitutes a main, side lateral
extension, or sewer service.
IN WITNESS WHEREOF the Parties hereto have executed this instrument the day and
year first above written.
e e oper � CITY OF BOZEMA-N
By ��� / ✓p r�sw/ By:
STATE OF MONTANA
ss.
County of Gallatin
On this day of 20 before me the undersigned a Not
Public for the fate o ontana, perso y appeare�ON,BREY and ROBIN L SULLIVAN,
known to me to be the Acting 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
rinteName)
esiding at Bozeman
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State of Montana
:ss.
County of Gallatin
On this m& _day of , 20D before me the undersigned, a Notary Public for
the State of Montana,person y appeare � ��;� �,s�.ra•�/
known to me to be the person whose name is sou bscnn a to the witfun instrument, and
acknowledged to me that he/she executed the same for and on his own behalf.
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"Statelf ontana
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