HomeMy WebLinkAbout99- Homeland Devleopment, Inc.; Durston & 19th Traffic Signal - Cost Share Agreement
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COST SHARE AGREEMENT
THIS AGREEMENT is made and entered into this --22!!!.. day of ~e.M b p "..- ,
1999 by and between HOMELAND DEVELOPMENT, INC., 1 Riverview Lane, Gallatin
Gateway, Montana 59730, hereinafter referred to as "DEVELOPER" and THE CITY OF
BOZEMAN, a municipal corporation of the state of Montana, P.O. Box 1230, Bozeman, Montana
59771-1230, hereinafter referred to as "CITV'.
WHEREAS, the Developer and others have agreed to design and install improvements at
the intersection of Durston Road and North 19th A venue in the City of Bozeman, as shown on
Exhibit "A", generally to include geometric storage improvements to the intersection of Durston
Road and North 19th Avenue and the installation ofa traffic signal,
WHEREAS, the Developer has had a qualified professional engineering firm design the
improvements for approval by the City and the Montana Department of Transportation.
Additionally, the Developer will have a qualified professional engineering firm, hereinafter
referred to as "Professional Engineer"conduct and perform all remaining engineering services on
the project subject to approval by the City,
WHEREAS, it is the intent and purpose of the Developer and the City to enter into an
agreement to insure the satisfactory and timely completion of all improvements referred to in this
agreement, and
WHEREAS, the parties to this agreement recognize that the Southwest Montana Building
Industry Association (SWMBIA) has filed Cause No. DV-99-71 against the City of Bozeman
which may affect "impact fee credits", defined in Chapter 3.24 of the Bozeman Municipal Code
and current impact fee revenues available to the City.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES,
COVENANTS AND CONDITIONS CONTAINED HEREIN, the parties agree as follows:
1. Recitals Inco1l'orated. The foregoing recitals are incorporated herein as if set forth
in full in this paragraph.
2. Effect of Cause No. DV -99-71 and Imnact Fees. The parties mutually agree and
understand that prior to receiving any impact fee credits, the Developer must apply to the Bozeman
City Commission subject to the following limitations:
a. If the final determination of Cause No. DV-99-71, through adjudication or settlement
between the parties, is that the City is authorized to assess impact fees in accordance with
Chapter 3.24 of the Bozeman Municipal Code, then the Developer may apply for impact
fee credits with the Bozeman City Commission. However, that application is limited to
dollar for dollar credit for the first $108,160.00 total for improvements and thereafter to
fifty cents ($0.50) per dollar for the balance of the costs incurred by the Developer for the
project as set forth in this agreement.
Paae 1 of 8
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b. The Developer acknowledge that $108,160.00 is the amount estimated for the costs of
the project in the North 19th Corridor CIP and represents the full amount the City of
Bozeman estimated and obligated to pay for the project using impact fees. The Developer
further acknowledges his obligation to request the impact fees and impact fee credits from
the City Commission and the City Commission's right to deny the Developer' request for
impact fee credits.
c. If the final determination of Cause No. DV-99-71 , through adjudication or settlement
between the parties, is that the City may charge impact fees but at a reduced rate, then any
impact fees or impact fee credits will be reduced proportionately in accordance with the
Court's order.
d. If the final determination of Cause No. DV-99~71 , through adjudication or settlement
between the parties, is that impact fees or impact fee credits cannot be charged or credited
by the City of Bozeman, then no impact fee credit will be issued to the Developer under
this agreement. The parties further acknowledge that in this event, the Developer will be
responsible for the entire cost of the project and the City will not be obligated for any costs
associated with the project unless expressly agreed to in writing.
3. Improvements and Estimated Cost ofImorovements. The proposed improvements
are those which generally consist of the construction of necessary geometric and signal
improvements including, but not limited to, drainage curb, asphalt, striping improvements, signal
material and hardware and intersection lighting along Durston Road. The project shall begin west
of North 20th Avenue, then proceed east through the intersection of North 19th Avenue to a point
determined during the design phase of the project as the "east of the vehicle storage taper".
The estimated cost of the project is shown on Exhibit "B". The total estimated cost is
divided into the following categories:
8. Design Engineering Services, to include the preparation offull plans and specifications
for the project and all required permits, approvals. It is agreed that the design engineering
services having been determined to be a fixed fee amount as shown on Exhibit "B", with
further details shown on Exhibit "C", based on negotiation between Developer and the
Professional Engineers, the parties acknowledge that the fixed costs are commensurate
with the services to be provided.
b. Construction Engineering Services to include full-time observation ofimprovements,
contract administration, project certification, including a copy of construction observation
diaries and all testing records, and preparation of record drawings.
c. Construction Costs to include all equipment, materials, labor and contingencies to
complete the installation of the improvements. It is the intent of the parties to provide a
completed operational project. The Developer has included financial guarantees for 150%
of the estimated cost of the improvements. Copies of these guarantees are attached to this
Page 1 of 8
agreement as Exhibits ~~E" and "F".
The parties agree the actual construction costs for the project will be utilized as a basis for
reimbursement by the City to the Developer for any impact fees or credits allowed and approved
by the Bozeman City Commission. The improvements will be competitively bid as one project
with the construction contracts being awarded to the lowest, qualified, bidder which will mutually
benefit the Developer and the City.
The parties further agree that the amount of impact fees and impact fee credits will be
based on the project costs verified through actual invoices or other means acceptable to the City.
The City reserves the right to reject reimbursement of costs considered not essential to the project.
Subject to paragraph15 contained herein, these costs including but not limited to attorneys' fees
incurred in drafting, reviewing or negotiating any portion of this agreement or any other portion
of this project shall not be included in the cost of construction and will not be reimbursed in any
form by the City.
The scheduled payment and details of compensation for any and all work completed under
this agreement shall be made in accordance with Section 7 below.
4. Time of Completion ofImprovements. It is the mutual understanding of the Developer
and the City that the time of completion of the improvements is of critical importance and time
is of the essence for the completion of all phases of the project as set forth in Exhibit "D~'. The
construction of the improvements shall not commence until plans and specifications for the project
have been approved by the City and the Montana Department of Transportation.
If at any time, anyone of the dates contained in the paragraph above are not met by either
the Developer or the contractor, then in that event the City may, at its discretion, assume the
responsibilities of constructing the project under the tenns contained herein and use the financial
security provided by this agreement. The City shall provide Developer with written notice of its
intent to do so not less than five (5) days prior to assuming construction. Failure by the City to
exercise its right under this clause on any portion of the project will not be considered a waiver of
its right to do so.
5. Construction Observation. Representatives of the City shall have the right to inspect
all phases of the project to determine compliance with this agreement, including the approved
plans and specifications and the established project schedule.
6. Default. It is mutually understood that the project specified in this agreement must be
completed. The Developer shall not be due any compensation under this agreement, unless as
outlined in paragraph 7 below. In no event, however, shall the Developer receive impact fees or
impact fee credits until DV -99-71 has been fully adjudicated or resolved through mutual agreement
of the parties.
7. Compensation. It is the mutual Wlderstanding of the City and the Developer that the
benefits of the project are not completely derived until such time as it is fully completed and
Page 3 of 8
operational. All costs for the project shall be as follows:
a. Total Project Costs.
i. Contracts for engineering services and construction work for the project shall be
executed between by the Developer. The parties stipulate and agree the City has
received a deposit from Hinesley Family Limited Partnership No. 1 in the amount
of$15,682.17. The parties further stipulate and agree that Sumise Development,
LLC, is not proceeding and, therefore, those funds are not available for this project.
The amount to be contributed by each party participating in the construction of the
improvements is as follows:
Particioant Percent
Cape~France, Inc. 0%
Homelands Development, Inc. 90%
Hinesley Family Limited 10%
Partnership No. 1
City of Bozeman 0%
ii. The parties further acknowledge that the project in this agreement contains
improvements, set forth in exhibit "B," which are "site related costs" relating to a
separate but adjacent project and not necessary to these improvements. The parties
stipulate and agree Hinesley Family Limited Partnership will not be held financially
responsible for the cost of these "site related" improvements.
b. Engineering Services.
i. The City shall be responsible for the cost of easement acquisition incurred up to
the date of this agreement.
ii. A single payment for design engineering services shall be made to the
Professional Engineer by the Developer. This payment may be considered for
reimbursement through impact fees or credits upon application to the Bozeman
City Commission.
iii. A maximum of four (4) payments for construction phase services, plus
miscellaneous expenses shall be made to the Professional Engineer by the
Developer. Compensation will be made at unit rates for various classifications of
the Professional Engineer's employees listed in Exhibit "~". Compensation for
miscellaneous construction~related expenses incurred by the Professional Engineer
shall be limited to the actual expenses incurred.
iv. Prior to the final payment for construction engineering services, the Developer,
through its Professional Engineer, will provide the City with project certification
Page 4 of 8
including a copy of construction observation diaries and all testing records, record
drawings, a certificate of substantial completion and the Professional Engineer
written certification that the improvements were completed in accordance with the
approved plans and specifications and all terms of this agreement.
c. Construction CostslReimbursement.
i. Payments for construction services shall be based on the actual cost of the final
installed improvements based on the unit costs of the various components of the
work as will be established by a contract between the Developer and the contractor
for the equipment, labor and materials needed to fully construct the improvements.
The Developer shall utilize adequate means in procuring a contractor to ensure that
the resulting construction costs will be in the best interest of the City and the
Developer. The payment for construction services incurred by the Developer shall
not exceed 150% of the estimated project costs as set forth herein, unless agreed
to in writing by all parties including Hinsley Family Limited Partnership.
ii. The Developer shall require the contractor to provide performance and payment
bonds in the name of the Developer in the amount of 100% of the contract amount.
Copies of said performance and payment bonds shall be provided to the City prior
to the initiation of the construction of the improvements.
d. Escrow Disbursements
i. Developer shall establish an escrow account at a mutually agreeable financial
institution or licensed escrow company. Draws on the escrow account made in
accordance with the engineering and construction contract for purposes consistent
with this agreement must be in the form of a signed authorization requesting
payment Walt Wolf or Tim Howard on behalf of Homelands Development, Inc.;
a representative of the Professional Engineer; and, a representative of the City.
Any balance in the account upon completion of the improvements shall be returned
and refunded to the participants designated in paragraph 7a on a proportionate
basis. However, prior to such a refund, the Developer will provide evidence or
documentation that the contractor, subcontractors, Professional Engineer and all
suppliers have been paid in full.
ii. Documentation of costs shall include a detailed breakdown of unit costs of
various components of work for both construction costs and engineering services.
The Developer and the Professional Engineer shall provide a written certification
that the costs are accurate and representative of the work completed. The
Developer shall submit a request for expenditure with all requests for payment
from the escrow account. Said request shall be submitted to the City Engineer's
Office. Upon receipt of a final complete and accurate request, the City will review
the request in accordance with the City's standard procedure in effect at the time
it is made and either approve or deny the request.
Page 5 of 8
Hi. Funds paid towards completing the project by the Developer may receive a
street impact fee credit in accordance with Chapter 3.24 of the Bozeman Municipal
Code, provided they make application to the Bozeman City Commission and that
the application is approved. Any payments shall be made in accordance with this
agreement, dependent upon the final decision (to include any appeal) or a final
negotiated settlement of Cause No. DV -99-71. Additionally, should any impact fee
credit be approved by the City Commission, said credit will not be delivered to the
Developer until the project's construction is accepted by the Montana Department
of Transportation and the City as being complete, including but not limited to an
operational signal at the intersection.
e. Administrative Costs. This agreement does not provide for the City or the Developer
to be reimbursed for any administrative or indirect costs that may be incurred by entering
into this agreement unless otherwise provided for herein.
8. Reservation of RilZhts. The Developer reserves all rights to appeal or otherwise
challenge any denials (including any partial denial or denials of only portions of such Developer's
plans, requests, petitions or submittals) by the City or any other regulatory authority.
9. Warranty. The Developer shall warrant against any defects of the improvements for a
period of one (1) year from the date of their completion by including such warranty in the contract
between the Developer and the Developer' contractor, a copy of which shall be provided to the City
prior to initiation of construction on the improvements.
10. Governing Law and Venue. This agreement shall be construed according to the laws
of the state of Montana. In the event of litigation concerning this agreement, venue is in the
Eighteenth Judicial District Court, Gallatin County, Montana.
11. Modifications or Alterations. No modifications or amendments of this agreement shall
be valid, unless agreed to in writing by all parties. This agreement does not alleviate the Developer
and/or the City from complying with all terms and conditions established for the development of
these improvements.
12. Invalid Provision. Should any provision of this agreement be declared invalid or
unenforceable, the remaining portions of the agreement shall not be effected and this agreement
shall be construed in all respects as if such invalid or unenforceable provision was omitted.
13. AssilZnment. It is expressly agreed that the Developer and City shall not assign this
agreement in whole, or in part, without prior written consent of all parties of this agreement.
14. Successors. Except as provided in paragraph 12, this agreement shall be binding upon,
enure to the benefit of, and be enforceable by the parties hereto and their respective heirs,
successors and assigns.
Page 6 of 8
15. Attornev's Fees. In the event it becomes necessary for either party to this agreement
to retain an attorney to enforce any of the terms or conditions of this agreement, or give any notice
required herein, then the prevailing party, or the party giving notice, shall be entitled to reasonable
attorney's fees and costs, including fees, salary and costs of in-house counsel to include the City
Attorney and staff.
16. Waiver. The waiver of any breach or default by the City shall not be a waiver of any
other breach or default. The City's approval of any acts by the Developer requiring consent of
approval shall not be deemed to waive or render unnecessary City consent to or approval of any
subsequent or similar act.
17. Records. The Developer shall keep an accurate account of all costs associated with the
improvements at all times, which shall be available for inspection by the City and/or its
representatives. The Developer shall make available, upon request, all related documents to the
improvements and maintain all documents related to the improvements for a period of three (3)
years from the date of final payment for the improvements.
IN WITNESS WHEREOF, the parties to this agreement affix their hands and Seals the day
and year first above written.
DEVELOPER:
HOMELANDS DEVELOPMENT, INC.
By: ~
Its:
STATE OF MONTANA )
)
County of Gallatin )
On this Ilo#> day of lk.c elJl/l b e..r . 1999, before me, the
. of personally appeared
undersigned, a Notary Public for the State Montana,
(1)0.(-1 LUt) If . known to me to be the f Homelands
Development, Inc. and acknowledged to me that he/she execute . ument on behalf
of Homelands Development, Inc.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the
day and year first above written.
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Notary Public for the State of Montana
Residing at &,.., ;l:@aA--
My Commission Expires '^ /{ t / ?/)b I
CITY OF BOZEMAN ,., ,
By: ~ ~ \-----
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Clark V. Johnson, City Manager
ATTEST:
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STATE OF MONTANA )
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County of Gallatin )
On this 22. 'if day of L:::>ct'"'J'I.4/n,tv'" , 1999, 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, and acknowledged to me that they executed the foregoing document 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.
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EXHIBIT B
MOST PROBABLE COST OF IMPROVEMENTS FOR
NORTH 19TH /DURSTON STREET AND TRAFFIC SiGNAL IMPROVEMENTS
ITEM NO. DESCRIPTION QUANTITY UNITS UNIT COST TOTAL COST
SCHEDULE I . North 19th Ro.d Widening
101 HOT PLANT MIX ASPHALT CONCRETE, ('TYPE B' SURFACE COURSE) :372 TONS 530.00 511,160,00
102 SS-l TACK OIL 203 GAL 52,00 5406.00
103 l-.MINUS CRUSHED BASE COURSE 250 CY 517.50 54,375.00
104 S"-MINU$ SUB.BASE COURSE 555 CY 58.00 $4.440.00
105 UNCLASSIFIED EXCAVATION 673 CY 53-25 52.187.25
106 PUL VERIZA TION 1525 SY 51.15 $1,753.75
107 CURB AND GUTTER (INCL. MEDIAN, PER PLAN), IN PLACE 1047 LF $10,00 510,470.00
108 24" CMP WITH FES'.. IN PLACE 20 LF 535.00 5700,00
109 ADJUST EXISTING VALVE BOXES, MANHOLES 9EA 529000 52,610,00
110 COB STANDARD CONCRETE SIDEWALK, (INCL CURB RAMPS, MEDIAN CAF 228 SY 527,00 $6,156,00
111 SOD PLACEMENT 54 SY 53.25 $175.50
112 SIDEWALK, CURB REMOVAL & DISPOSAL 65 SY $9.00 . $174,00
113 TREE REMOVAL & DISPOSAL 1 LS $800.00 $800,00
114 SITE GRADING, SEEDING. IN PLACE 1 LS $1,200.00 $1.200.00
SCHEDULE I-SUBTOTAL $47,207.50
SCHEDULE II" SIGNALIZATION IMPROVEMENTS
201 FOUNDATION. CONCRETE 3.14 CY $1,200,00 53,75a.00
202 CONDUIT - STEEL 2 IN. RIGID 33 LF $16,00 $528.00
203 CONDUIT - STEEL 1 ~ IN. RIGID 14 LF $11.25 $157.50
204 CONDUIT" STEEL 1 IN, RIGID 52 LF 510.25 5533.00
205 PULL BOX. CONCRETE - TYPE I 1EA 5275.00 8275.00
206 . PULL BOX. CONCRETE - TYPE II lEA 5350.00 5350.00
207 CONDUCTOR. COPPER - AWG 8 .6OOV 42 LF $0,80 533.60
208 CONDUCTOR - COPPER - AWG e .6OOV 742 LF $0.55 $408.10
209 CONDUCTOR - COPPER. AWG10. 600V 40S LF $0.40 5162.40
210 CABLE. COPPER . 15AWG14 - 6or:N e2e LF $2.80 81.815.40
211 REMOVE EXISTING SIGNAL POLE ASSEMBLY NO.3 2EA $1.000.00 52.000.00
212 TRAFFIC SIGNAL" 3 COLOR. 1 WAY -12""12'-12" 3EA 81,000.00 $3.000,00
213 OETECTOR LOOP" 6.6 13 EA $810.00 810,530.00
214 DETECTOR LOOP. SHIELDED CABLE 1020 LF $1.25 $1.275.00
215 PUSH BUTTON PEDESTRIAN HAND CONTROL SIGN 4EA $40.00 51eO.00
216 SIGNAL MASTARM'. - 40' & 45' & NEW SIGNAL STD. 2-A-soo.& 1 EA $3,000.00 53,000.00
217 RESET ELECTRICAL SERVICE ~ 1 LS $900.00 $900.00
218 SIGNS - SHEET ALUMINUM. REFLECTIVE SHEETING (II) 63 SF 525,00 51,575.00
219 POSTS - TUBULAR STEEL. SOUARE. PERFORATED 342 LB 87.00 52.394.00
220 REMOVE 'I" WHITE PLASTIC STRIPING INCL. SYMBOLS, STRIPING 157e LF $1.70 $2,682.60
221 STRIPING. WHITE PLASTIC 8 INCH 557 LF 54.00 $2,628.00
222 STRIPING - WHITE PLASTIC 24 INCH 101 LF $10.50 $1,060,50
223 STRIPING - YELLOW PLASTIC 4 INCH 971 LF $1.35 $1,310.15
224 STRIPING - YELLOW PLASTIC 8 INCH 94 LF $3.10 5291.40
225 WORDS & SYMBOLS. WHITE PLASTIC 230 SF $12.00 $2,760.00
226 YELLOW CURS PAINT 6.1 GAL $32.00 $195,20
227 STRIPING -EPOXY WHT 8' 1SO LF $0.30 845.00
221 STRIPING .EPOXY YELLOW 4" 460 LF $0.30 513e.00
229 STRIPING "EPOXY WHT 4" 407 )..F $0.30 5122.10
230 WORDS & SYM80LS - WHITE EPOXY 31 SF SO.90 $27. SO
231 FLEXIBLE SURFACE MOUNT DELINEATORS 2EA 545.00 $90.00
232 RESET SIGNS 1 EA $100,00 $100.00
233 TRAFFIC SIGNAL. 5 COLOR. 1 WAY. 12--12"-12" 1 EA 81.900.00 $1,900.00
234 TRAFFIC CONTROL 1 LS $4,000.00 $4,000,00
235 MOBILIZATION 1 LS 51,500.00 $8.500,00
SCHEDULE II . SUSTOT AL 558,716,55
I 5UB- TOTAL OF WORK $105,924.05
De.ign cfIllIIleering 534.606.00
Conattvction Engineering 510,4el.oo
GRANO TOTAL S 150.1113.011
MORRISQN.MAIERLE, INC
19THIDURSTON TRAFFIC SIGNAL INSTALLATION Proposal lor Engineering Se~s
a JIORRISON 07 -Dec.S8
MM# 2&05.007.01.070.0310
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EXHIBIT "C" .. TRAFFIC SIGNAL INSTALLATION
N.19TH AVE. &. DURSTON ROAD
PROPOSAL_FOR ENGINEERING SERVICES
IMPROVEMENT DESIGN
DESCRIPTION Q/A PROJ. PROJ. ENG. SURVEY TECH. CAD SEC.
MGR. CREW
Easm't Acquisition 10 24 6
Project Coord. Mtgs- MDT,C.o.B. 24 24 16
Topographic Data Collection 2 12 8 16
BDundary & Plat Research 8 12 4
Site Evaluation 4 a 4
Signel Design 1 8 24 16
Geometric Design 1 8 24 16 8
Road Section Design 1 4 16 8
Plan Preparation 4 8 24 16 40
Construction Cost Estimation 1 6 32 16
Preparation of Agreement Exhibits 1 1 16 4 16
Bid Document Preparation 1 2 32 24 8
Pre.Bid Consultation 1 2
Bid Opening 2 4
Bid Award 1 3
Total Hours 10 79 243 18 140 80 12
Cost Per Hour $90.00 $83.00 $57.00 $80.00 148.00 $45.00 $30.00
Total Labor Cost $900.00 $6,557.00 $13,851.00 $1,620.00 $6,720.00 $3,600.00 $380.00
Expenses $1,000.00
TOTAL COST IMPROVEMENT DESIGN . $34,608.00
CONSTRUCTION
DESCRIPTION QJA PROJ. PROJ. ENG. SURVEY R.P.R CAD SEC.
MGR. CREW
Contract package & Pre-Con Conference 2 2 1
Construction Staking 4 1
Construction Observation 1 8 160
Record drawings 1 1 1 2 8 1
Final walk through 2 2
arranty walk through 2 2
Total Hours 1 6 15 4 166 8 1
Cost Per Hour $90.00 $63.00 $57.00 $80.00 $48.00 $45.00 $30.00
Total Labor Cost $90.00 $498,00 $a55.00 $360.00 $7.868.00 S360.00 $30.00
xpenses S3OO.oo
TOTAL CONSTRUCTION $10,461.00
Construction fee is based upon 25 working days and on 80% utilization rate for the Resident Project Representative (RPR).
A longer contract period or higher utilization rate shall result in a higher construction fee per Project Manuel.
MOrrlson.Malerte, Inc. EXHlelT "e" Page 1
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19TH1OURSTON TRAFFIC SIGNAL INSTALLATION Proposal for Engineering Selvtces
SUMMARY
DESCRIPTION COST
TOTAl COST IMPROVEMENT DESIGN $34,608.00
TOTAL CONSTRUCTION $10,461.00
,
TOTAL ENGINEERING COSTS $45,069.00
..
MDlTlaon-Malerte.lnc. EXHIBIT MeM Page 2
EXHIBIT "0"
. NORTH 19TIf AVENUE/DURSTON ROAD TRAFFIC SIGNAL INSTALLATION
COMPLETION SCHEDULE
FOR
COST SHARE AGREEMENT
DESCRIPTION DATE
MORRISON-MAIERLE, INC. - Open Bids December 10,1999
MORRISON-MAIERLE, INC. - Bid Award December 22,1999
BEGIN CONSTRUCTION T entative- Weather Dependent
SUBSTANTIAL COMPLETION of Improvements June 30, 2000
FINAL COMPLETION & ACCEPTANCE of Improvements July 31,2000
H:\2605\OO7\Docs\traffic\SCHED.wpd
INSTRUCTION TO ESCROW AGENT
TO: AMERICAN LAND TITLE COMPANY
FROM: HOMELAND DEVELOPMENT, INC. (Developer)
CITY OF BOZEMAN (Ci ty) ... '\
(Protea9ia~al Dngi~eer)' ~~
RE: COST SHARE AGREEMENT
YOU ARE HEREBY INSTRUCTED that the above parties have
~red into a Cost Share Agreement dated the 1bllfl. day of
lJl'mbe,.. rq9~' wherein Developer and others, have agreed to
design and in tall improvements at the intersection of Durston
Road and North 19th Avenue in the City of Bozeman.
Developer with this agreement shall deposi t with you the
Cost Share Agreement and the sum of TWO HUNDRED THREE THOUSAND
EIGHT HUNDRED FORTY DOLLARS ($203,840.00). You are instructed to
make disbursment of these funds pursuant to the terms of the Cost
Share Agreement, and in particular only upon a Request for
Disbursement signed by the Developer, a duly authorized agent of ~
the City, 8AQ SA. svtA9I711i!ge e.gea:t at I W
('PretoClsioaal ERgifteer). Any such Request for Disbursal shall, '~
identify the payee and shall include the amount of payment.
In the event of a dispute between the parties, you are
authorized to in1 tiate an action for Interpleader with the
District Court, and the undersigned acknowledge all costs for
such interpleader, including but not limited to attorney fees,
shall be deducted from the sums held by the escrow agent. The
parties further agree that FAX signatures shall be sufficient to
bind the parties hereto.
Dated this 2.1 tS:t day of December, 1999.
HOMELANDS DEVELOPMENT, INC., CITy'OF BOZEMAN, by
by
~
Clar V.Johnson, City Manager
~_P"Gi"&lS;!'''Aal IlAS;!.Ae...,
City of Bozeman
City Attorney's Office
Paul J. Luwe, City Attorney
7im Cooper, Staff Attorney
Patricia Day-MOON!, Staff Attorney
December 22, 1999 Susan L. Worda~ Prosecutor
Bradley C. Stratton, President
American Land Title Company
Westbrook Center
1800 West Koch
Bozeman, Montana 59715
RE: Escrow documents for Homelands Development, LLC and City of Bozeman
Dear Mr. Stratton:
Please find enclosed an original cost share agreement and the Letter ofInstruction.
According to our telephone conversation yesterday, I understand your company will honor the
terms of the cost share agreement. In particular we discussed the City's concemabout accessing
the escrow account should Mr. Wolf or his contractor fail to comply with the agreement.
Paragraph 4 entitled Time of Completion of Improvements, the city has reserved the right
to assume the construction of the improvements and all financing if Mr. Wolf does not complete
the improvements in a timely fashion. In order to do so, the City must provide Mr. Wolfwith
five days notice in writing of their intent to assume the construction. Obviously, your firm would
receive a copy of this notice.
Finally, as you will notice, the Letter ofInstruction has all reference to an engineer
crossed out. This was done following a telephone conversation between you, Mr. Wolf and
myself, in which you concurred the engineer's signature was not necessary.
If you need further information, please feel free to contact me.
Sincerely,
CITY ATTORNEY
cc: Paul Luwe
Debbie Arkell
File
Street Address: 411 East Main Street Phone: (406) 582.2310
Mailing Address: P.O. Box640 Fax: (406) 582.2302
Bozeman, Montana 59771-0640 TDD: (406) 582-2301