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HomeMy WebLinkAbout05- Durston Development Corp. Agreement for Reimbursement AGREEMENT FOR REIMBURSEMENT THIS AGREEMENT, made and entered into this 21st day of 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, nlore particularly described as follows: Walton Homestead Subdivision P.lJ.D, according to the map or plat thereof on file and of record in the office of the Clerk and Recorder of Gallatin County, Montaml, WHEREAS, the City owns and operates a water 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 systenls rnore particularly described on Exhibit "A" attached hcrcto and incorporatcd 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 thc 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 WIIEREAS, the benefitted properties did not participate in thc 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 WI-IEREAS, the patties hereto agree that the City will charge and collect a f~lir pro rata share from each of the described benefitted properties as they conncct to said extensions; NOW, TIU"~REFORE, 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 casenlents 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 eonstruction, 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 "R". The Developer does hereby certify that the costs listed in Exhibit "R" are solely related to the extension of the water, sanitary sewer, storm drainage lines and strcct 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. (H-Oti-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 nro rata share of the cost of such construction based upon the sum of $8,870,90 per gross aere, which unit charge shall be conclusively presumed to be a hLir 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 ti:.nth 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 knowlcdge 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. lt 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 tive 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 speci fled herein. Provided, howevcr, 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.". S. This Agreement has no effect on City charges f<.)r 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 fiJr reimbursement. Any connections to such extensions of the above described extensions shall not constitute grounds fix reimbursement. The City shall be the sole judge of what constitutes a main, side lateral extension, or sewer service. 04-06-2(0) 2 IN WITNESS WHEREOF the Parties hereto have executed this instrument the day and year 11rst above written. - --7) <c-<-'.~-"-_'-""'::_'c":_ ~l~ r ~ ('~'~ Durston Development ,.. .'- L 1 Y 01' BOZEMAN By: Kevin Cook, Vice President By: Chris A. Kukulski, City Manager STATE OF MONT ANA ) ATTEST:~/ ~_ ) ss. County of Gallatin ) Robin L. ~ullivan. Clerk of Comm On this r2{f~';,laY of C7..;1~(1() I , 2005, before me, the undersigned, a Notary Public for the State of Montana, personally appeared Chris A. Kukulski and ROBIN L. SULLlV AN, 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. (SrAL) I', \ J (.C Lc ~."-.f- ~.<ye/~il'( 11{A-- Notary Public fex the Siate of Montana 1-.1_( Ik vuL eVi! (, l ; f\S (lY (Printed Name) Residing at Bozeman .7 / Z5 /20 C '7 My Commission Expires: ,),) State of Montana ) ):ss. County of Gallatin ) On this 7Y- day of (-lfi\IL , 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 WITNr~SS WIIEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year first above written. (SEAL) N~~;);.~hfi~'t~;I;h~~ State of Montana .J~l D y' 7;; ,'1'0; (Printed Name) Residing at {~,,--: .~J",_t..~:' ~,,\. fl.;....j MT My Commission Expires: i( / :)( :/-- /20 ~ . ___ 04-06-2005 3 ----..---- - - ....----------- l)<J,llflJ.L::_!j:'~i':-. YO ^ C K 8 Ql! N IJ ^ R Y E;,XIUDJ I WAL TON HOMESTEAD SUBDIVISION f'LANI,CO UNIT DEV[LlJr'Mf:IH LOtA Tm lei TH'_ ,-,wy. OF SEe'1(JN 1, TOWNSHIf' 2 SOIJlIl, f~AI"Cf: 5 EAST, P,M,M, CITY OF BOZEMAN, GALLATIN COUNTY, MONTANA Wu/ Oak 5/(*,1 ~ ~~Fr-f~~~tt~~t~~f=~~.~~: -- - --- --- --- m;ii---------- _0_____ I 1 ' __L"""""'''''' , ~' " f .m -, ",.,,,,,,1""'''''1'' ! I III IJ : I ;- I :~ .;;~: Iw..,,..M I)' '. I I I CIIr10uit cro~';itIF,~1 I wI III [ : (~'I~ ~:; J() Vh1t~r M;,l.In j':Xll":nS,iOIl . I : ,,,;; " ,I' ,I N_ ." '. Slmi',,' y ",W" M,,,,, 1'''''''''0'' i ~ ': ",,~""'/, =i-~ "",,, '_',. 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'-0 "",,'00' Exhibit "B" North 14th Avenue Page 1 of 3 Cost Estimate for Utility and Street Payback Walton Homestead Subd., Durston Development, Inc. 04/06/05 All quantities are finished. in-place, compacted, etc. Unit Total Item No. Description Quantity Units Price Price 10 Sanitary Sewer Manhole (Basic 5') 4 EA. $1,650.00 $6,600.00 Manhole Add'l Depth 70 L.F. $200.00 $1,400.00 8" Sanitary Sewer Main 1,131 L.F $18.00 $20,358.00 Traffic Rated Cover for Existing SS MH 1 EA. $2,000.00 $2,000.00 Sub-Total $30,358.00 11 Water Line Excav/Dispose Existing Blow-off Hyd 1 L.S. $2,000.00 $2,000.00 and approx. 20' of 8" DI Pipe 8" DI Class 51 1,340 L.F. $23.50 $31,490,00 6" DI Fire Hydrant Lead 53 L.F. $23.50 $1,24550 Fire Hydrant Assembly 5 EA. $2,350.00 $11,75000 8" Gate Valve M.J. x FL. wi Restraint 1 EA. $800.00 $800.00 8" Gate Valve MJ x M.J. wi Restraint 5 EA. $800.00 $4,000.00 8"X 8" Tee M.J. x FL. 1 EA. $350.00 $350.00 8"X 8" Tee M.J. x MJ. 1 EA. $350,00 $35000 8"X 6" Tee M.J x M.J. 5 EA. $350.00 $1,750.00 8"X 4" Tee M.J. x FL. 3 EA. $350.00 $1,05000 8" 450 Bend wi Restraint 2 EA. $300.00 $600.00 8" Solid Sleeve Coupler 1 EA. $45000 $450,00 Sub-Total $53,835.50 12 Storm Drainage 22"x36" Class III RCP 74 L.F. $100.00 $7,400.00 Sub-Total $7,400.00 Engineering: Design, Staking, InspectionlTesting $10,026.00 Total Construction Cost - Sanitary Sewer, Water, Storm Drainage.............................. $101,619.50 North 14th Avenue Page 2 of 3 Cost Estimate for Utility and Street Payback Walton Homestead Subd., Durston Development, Inc. 04/06/05 Unit Total Item No. Description Quantity Units Price Price 13 Streets Excav./Dispose Asphalt 1 Cy $15.00 $15.00 Topsoil Excavation 995 CY $1.50 $1,492.50 Sub-Grade Excavation 634 C.Y. $250 $1,585.00 Select Sub-Base Course 727 C.Y. $8.50 $6,179.50 Crushed Base Course 485 CY $16.00 $7,76000 3" Asphalt Surface 604 Tons $36.00 $21,744.00 New Street and Stop Sign wi Post 1 EA. $250.00 $25000 New Street Name Sign wi Post 1 EA. $25000 $25000 New No Parking Sign wi Post 1 3 EA. $250.00 $3,250.00 New Dead End Barricade wi Posts 1 LS. $500.00 $500.00 Utility Conduits 6" and 12" (3 Crossings) 128 LF $15.00 $1,920.00 14 Land Cost (10'x1270) @ 2.7x10^6/20Ac. 12,700 S.F. $1.50 $19,050.00 Sub-Total $63,996.00 Engineering: Design, Staking, InspectionrTesting $6,560.00 Total Construction Cost - Street Extension............................................................................. $70,556.00 Total Construction Cost - Sanitary Sewer, Water, Storm Drainage & Street Extension.... $172,175.50 North 14th Avenue Page 3 of 3 Cost Estimate for Utility and Street Payback Walton Homestead Subd., Durston Development, Inc. 12/22/04 Cost of Street Construction East of Centerline Unit Total Item No. Description Quantity Units Price Price 13 Streets Excav./Dispose Asphalt (1 x 10/40) 0.25 CY $15.00 $3.75 Topsoil Excavation (995 x 10/40) 249 C.Y $1.50 $373.13 Sub-Grade Excavation (634 x 10/40) 159 C.Y. $2.50 $396.25 Select Sub-Base Course (727 x 9.25/28.75) 234 C.Y. $8.50 $1,98819 Crushed Base Course (485 x 8.75/28.25) 150 CY $16.00 $2,403.54 3" Asphalt Surface (604 x 75/24) 189 Tons $36.00 $6,795.00 New Street and Stop Sign wI Post (1 x 50%) 0.50 EA. $250.00 $125.00 New Street Name Sign wI Post (1 x 50%) 0.50 EA. $250.00 $125.00 New No Parking Sign wI Post (100%) 1 3 EA. $250.00 $3,250.00 New Dead End Barricade wI Posts (1 x 50%) 050 L.S. $500.00 $250.00 Utility Conduits 6" and 12" (3 Crossings) (100%) 128 L.F $15.00 $1,920.00 14 Land Cost (10'x1270) @ 2.7x10^6/20Ac (100%) 12,700 SF $1.50 $19,050.00 Sub-Total $36,679.85 Engineering: Design, Staking, InspectionrTesting ($6,560.00 x 7.5/24) $2,050.00 Street Construction Cost - Total Attributable to Benefitted Property.................................. -- $39,229.85