7.2 Resolution No. 22-8044 Special Improvement District Magnolia HillsCITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
5/23/2022 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL:
NO: 7 �fj1
BY: l�f
ITEM PUBLIC WORKS FINAL APPROVAL:
NO: 2
Page I BY: Daniel R. Stack, P.E. BY:
ITEM: Resolution 22-8044
Advisability and Authorization Resolution No. 22-8044 related to establishment of a special
improvement district for water, sanitary sewer, street, and drainage improvements in Magnolia Hills
Estates No. 2, Phase 2 and authorization of the city manager to execute an Improvement District
Development Agreement between the City of Salina and Magnolia Hills, Inc.
BACKGROUND:
In October 2018, Magnolia Hills, Inc. submitted an application requesting the use of special assessment
financing to finance installation of the public improvements needed to serve Phase I of Magnolia Hills
Estates No. 2. The developer's proposed Phase I consisted of 29 lots in the northwest corner of the
property. On November 19, 2018, the City Commission approved a motion authorizing City staff to
prepare a Special Assessment Feasibility Report for Phase I of Magnolia Hills Estates No. 2.
On November 4, 2019, the City Commission approved a Resolution of Advisability and Authorization
(No. 19-7760) authorizing the establishment of a special improvement district for streets, water, sewer
and storm drainage in Phase I of Magnolia Hill Estates No. 2 and authorizing the Mayor to execute a
Development Agreement with Magnolia Hills, Inc. All public improvements were installed and Phase I
is filling up with newly constructed homes.
The City Commission met October 18, 2021 and authorized City staff to prepare a Special Assessment
Engineering Feasibility Report and Resolution of Advisability for Phase 2 of Magnolia Hills Estates
Addition No. 2 for future consideration. Phase 2 will consist of 16 residental lots.
It is prescribed by Kansas statutes that the City Commission consider a petition for street, drainage,
sewer, and water improvements and establish sufficiency on the basis that any one of the following
three conditions be met:
1.The petition is signed by a majority of the resident owners of record of property liable for
assessment under the proposal.
2. The petition is signed by the resident owners of record of more than half of the area liable for
assessment under the proposal.
3. The petition is signed by the owners of record, whether resident or not, of more than half of the
area liable to be assessed under the proposal.
In this case Condition No. 3 above is met and therefore meets the statute requirements for sufficiency.
The Saline County Treasurer has indicated there are no delinquent special assessment taxes on any
property owned by the petitioners.
The engineering feasibility report for these public improvements describes the scope of the project, the
improvement district, the method of assessment, cost estimate breakdowns for each improvement, and
identifies and describes the properties in the benefit district. One -hundred percent (100%) of the cost
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
5/23/2022 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL:
NO:
BY:
ITEM PUBLIC WORKS FINAL APPROVAL:
NO:
Page 2 BY: Daniel R. Stack, P.E. BY:
of the improvements are proposed to be assessed to the benefit district. Costs include construction,
construction contingency, inspection, design, and bonding/interest costs.
A letter was recently received from several area developers requesting the term of bonds issued by the
city to finance improvements be extended to twenty years. As per K.S.A. 12-06a10, 'The assessments,
with accrued interest, shall be levied as a special tax upon the property included therein concurrent
with general property taxes, and shall be payable in not more than 20 equal annual installments, as the
governing body determines. The first installment shall be payable at the time of the first payment of
general property taxes following the adoption of the assessment ordinance unless such ordinance was
adopted and certified too late to permit its collection at such time."
Resolution Number 98-5276 established policy for the installment time period allowed for the payment
of special assessments. Section 1. States "It shall be the general policy of the City of Salina to provide
for special assessments to be paid in either ten (10) annual installments, or fifteen (15) annual
installments."
Section 2. of 98-5276 states "At the time of petitioning for improvements under K.S.A. 12-6a01, et seq.,
the petitioners shall indicate a preference for a ten year of fifteen year installment payment period. The
Governing Body shall make the determination as to the installment payment period in its resolution
authoring the improvement."
The Salina City Commission passed Resolution No. 18-7556 which amended and restated the policy
for the financing of public improvements and repealed Resolution No. 17-7507. Section 12 (b)
Maximum Term of Bonds states 'The term of bonds issued by the city to finance improvements may
extend up to twenty (20) years, but absent special circumstances should not exceed fifteen (15) years."
The property owners may choose to pay their share of the project costs as a lump sum payment or as
an annual special assessment tax over the time period determined by the city commission beginning
on the date that General Obligation bonds are issued by the city. The development agreement
coincides with Resolution 18-7556 regarding financial guarantees and provides that the developer has
submitted a letter of credit, cash or financial securities equal to 20% of the project costs prior to the
City awarding any construction contractor or approving any development agreement for the project.
FISCAL NOTE:
One hundred percent (100%) of the estimated costs of $779,251.25 are to be assessed against the
improvement district. An amortization of these costs assuming an assessment of $48,000 and an
interest rate of 4.00 % and a term of 20 years, projects an annual payment of $3531.92 The table below
compares the projected costs at 15 years and 20 years respectively while also comparing to the most
recent residential assessments.
REQUEST FOR CITY COMMISSION ACTION DATE TIME
5/23/2022 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL:
NO:
BY:
ITEM PUBLIC WORKS FINAL APPROVAL:
NO:
Page 3 BY: Daniel R. Stack, P.E. BY:
Avg Annual Payment
Development 15 Year Term 20 Year Term
Magnolia Hills Estates No. 2, Phase 2 (2024 est) 16 lots'
Preliminary estimate of assessment is $48,000
Cedar Ridge Phase 2 (2023 est) 13 lotS2
2Preliminary estimate of assessment is $54,000
Wheatland Valley (2023 est) 29 lots'
3Preliminary estimate of assessment is $38,400
Magnolia Hills Estates No. 2 (2022) 29 lots
Stone Lake Phase 3a (2022) 45 lots
Stone Lake Phase 2 (2021) 17 lots
Pheasant Ridge No 3 Phase 2 (2021) 17 lots
4,317.17 3,531.92
4,856.82
3,453.74
3,487.30
2,284.08
2,112.37
2,394.10
This project will be financed through a temporary note, and rolled into long term bonds when
construction is completed and costs finalized. Property owners will have the opportunity to pay the
assessment in full prior to the bond issue. If they elect not to do so, the assessment plus related interest
costs will be spread over a period of time not to exceed 20 years in equal annual installments.
COMMISSION ACTION OR RECOMMENDED ACTION:
Staff has identified the following options for the City Commission's consideration:
1.) Approve Resolution No. 22-8044 with a bond payment period of twenty (20) years and authorize
the city manager to execute an Improvement District Development Agreement between the City
of Salina and Magnolia Hills, Inc.
2.) Approve Resolution No. 22-8044 with a bond payment period of fifteen (15) years and authorize
the city manager to execute an Improvement District Development Agreement between the City
of Salina and Magnolia Hills, Inc.
3.) Approve Resolution No. 22-8044 with a bond payment period of twenty (20) years and authorize
the city manager to execute an Improvement District Development Agreement between the City
of Salina and Stone Lake Development, LLC with amendments as the City Commission deems
appropriate.
4.) Approve Resolution No. 22-8044 with a bond payment period of fifteen (15) years and authorize
the city manager to execute an Improvement District Development Agreement between the City
of Salina and Stone Lake Development, LLC with amendments as the City Commission deems
appropriate.
5.) Postpone consideration of Resolution No. 22-8044 to a specified date and provide staff direction
regarding additional information or amendments the City Commission would like to request for
their further consideration.
6.) Deny Resolution No. 22-8044 resulting in denial of special assessment financing for this project.
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
5/23/2022 4:00 P.M.
(Published in the Salina Journal on 2022)
RESOLUTION NUMBER 22-8044
A RESOLUTION SETTING FORTH FINDINGS AND DETERMINATIONS OF THE
GOVERNING BODY OF THE CITY OF SALINA, KANSAS ON THE ADVISABILITY OF
AND AUTHORIZING THE CONSTRUCTION OF CERTAIN IMPROVEMENTS
PURSUANT TO K.S.A. 12-6a01 et seq.
WHEREAS, a petition was filed with the City Clerk for the City of Salina, Kansas (the
"City") on April 19, 2022, proposing certain improvements pursuant to K.S.A. 12-6a01 et seq. (the
"Petition"); and
WHEREAS, the Petition sets forth: (a) the general nature of the proposed improvements;
(b) the estimated or probable cost of the proposed improvements; (c) the extent of the proposed
improvement district to be assessed for the cost of the proposed improvements; (d) the proposed
method of assessment; (e) the proposed apportionment of the cost between the improvement district
and the City at large; and (1) a request that such improvements be made without notice and hearing
as required by K.S.A. 12-604(a); and
WHEREAS, the owners of record of 100% the property liable to be assessed under the
Petition have signed the Petition; and
WHEREAS, no signatures have been withdrawn from the petition before the Governing
Body began consideration of the Petition; and
WHEREAS, K.S.A. 12-6a04 provides that the Governing Body may authorize and order
public improvements without notice and hearing after a sufficient petition has been filed; and
WHEREAS, the Governing Body has reviewed and considered the Preliminary
Engineering Estimate and Feasibility Report prepared by the City Engineer and agrees with the
conclusions set forth therein.
NOW THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE
CITY OF SALINA, KANSAS, AS FOLLOWS:
Section 1. The Governing Body hereby finds that the Petition is sufficient, and further
finds and determines that it is necessary and advisable to make the following improvements:
(a) The nature of the improvements are as follows:
The curb, gutter, pavement, and grading for approximately 383
lineal feet of Kasyn Lane, 595 lineal feet of Huntwood Drive, 136
lineal feet of Deer Hollow Lane, and 71 lineal feet of Dunnwood
Drive (the "Street Improvements") and
The installation of approximately 121 lineal feet of storm sewer
pipe, inlets, manholes and all appurtenances thereto (the "Storm
Drainage Improvements").
The installation of approximately 797 lineal feet of six-inch and
140 lineal feet of eight -inch water main, fire hydrants, valves,
fittings, service connections for water lines and all appurtenances
thereto (the "Water System Improvements").
The installation of approximately 806 lineal feet of eight -inch
sanitary sewer main, service connections for sewer lines,
manholes, and all appurtenances thereto (the "Sanitary Sewer
Improvements").
(collectively, the "Improvements").
(b) The estimated cost of the Improvements is:
Seven hundred seventy-nine thousand two hundred fifty-one
dollars and twenty-five cents ($779,251.25).
(c) The extent of the proposed improvement district to be assessed is:
Block 5, Lots 6 through 9; Block 6, Lots 2 through 3; Block 7, Lots 1
through 9; Block 8, Lot 1, all in Magnolia Hills Estates Addition No. 2 to
the City of Salina, Saline County, Kansas.
(collectively, the "Improvement District').
(d) The apportionment of cost between the Improvement District and the City
at Large is:
One hundred percent (100%) of the total cost of the Improvements shall
be assessed to the Improvement District and zero percent (0%) shall be
paid by the City at Large.
Each platted lot in the Improvement District shall be assessed equally per
lot.
(e) The method of assessment against property within the Improvement District shall
be:
Each platted lot in the Improvement District shall be assessed equally per lot. In the event all or
part of the lots or parcels in the proposed Improvement District are replatted before assessments
have been levied, the assessments against the replatted area shall be recalculated on the basis of the
method of assessment set forth herein. Where the ownership of a single lot is or may be divided
into two or more parcels, the assessment to the lot so divided shall be assessed to each ownership
or parcel on a square foot basis.
Section 2. The Governing Body hereby declares that the Improvements described in
this Resolution are necessary, and authorizes them to be made in accordance with the Petition and the
findings set forth in this Resolution, and further authorizes the levying of assessments and the issuance
of bonds therefore, all in accordance with K.S.A. 12-6a01 et seg..
Section 3. The City expects to make capital expenditures from and after the date of this
Resolution in connection with the Improvements described herein, and intends to reimburse itself for
such expenditures with the proceeds of one or more series of general obligation bonds and temporary
notes of the City in the maximum principal amount of $779,251.25.
Section 4. The City Clerk shall file a certified copy of this Resolution with the Register
of Deeds of Saline County, Kansas.
Section 5. This Resolution shall take effect after its passage and publication once in the
official city newspaper.
ADOPTED AND PASSED this _ day of May, 2022
Trent W. Davis, M.D., Mayor
(SEAL)
JoVonna A. Rutherford, City Clerk
PETITION 4412
TO THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS:
We, the undersigned, owners of record of property located within the City of Salina, Kansas
(the "City") and being the owners of 100% of the area liable for assessment set forth below,
do hereby respectively request that the Governing Body of the City create and designate an
improvement district for the purpose of making certain improvements in the manner
provided by K.S.A. 12-6a01, et seq.
1. The general nature of the proposed improvements are as follows:
The curb, gutter, pavement, and grading for approximately 383
lineal feet of Kasyn Lane, 595 lineal feet of Huntwood Drive, 136
lineal feet of Deer Hollow Lane, and 71 lineal feet of Dunnwood
Drive (the "Street Improvements") and
The installation of approximately 121 lineal feet of storm sewer
pipe, inlets, manholes and all appurtenances thereto (the "Storm
Drainage Improvements").
The installation of approximately 797 lineal feet of six-inch and
140 lineal feet of eight -inch water main, fire hydrants, valves,
fittings, service connections for water lines and all appurtenances
thereto (the "Water System Improvements").
The installation of approximately 806 lineal feet of eight -inch
sanitary sewer main, service connections for sewer lines,
manholes, and all appurtenances thereto (the "Sanitary Sewer
Improvements").
(collectively, the "Improvements").
2. The estimated or probable cost of the Improvements is:
Seven hundred seventy-nine thousand two hundred fifty-one
dollars and twenty-five cents ($779,251.25).
3. The extent of the proposed improvement district to he assessed is:
Block 5, Lots 6 through 9; Block 6, Lots 2 through 3; Block 7, Lots I
through 9; Block 8, Lot 1, all in Magnolia Hills Estates Addition No. 2 to
the City of Salina, Saline County, Kansas.
(collectively, the "Improvement District").
4. The proposed method of assessment shall be:
Each platted lot in the Improvement District shall be assessed equally per
lot. In the event all or part of the lots or parcels in the proposed
Improvement District are replatted before assessments have been
levied, the assessments against the replatted area shall be
recalculated on the basis of the method of assessment set forth
herein. Where the ownership of a single lot is or may be divided
into two or more parcels, the assessment to the lot so divided shall
be assessed to each ownership or parcel on a square foot basis.
5. The proposed apportionment of cost between the Improvement District and the City
at Large is:
One hundred percent (100%) of the total cost of the Improvements shall
be assessed to the Improvement District and zero percent (0%) shall be
paid by the City at Large.
The signers of this Petition hereby request that the Improvements be made without
notice and hearing as required by K.S.A. 12-604(a).
NAMES MAY NOT BE WITHDRAWN FROM THE PETITION BY THE SIGNERS
THEREOF AFTER THE GOVERNING BODY COMMENCES CONSIDERATION OF
THE PETITION OR LATER THAN SEVEN (7) DAYS AFTER FILING OF THE
PETITION WITH THE CITY CLERK, WHICHEVER OCCURS FIRST.
Each signer of this Petition certifies', under oath, that:
(a) The petitioner and its principals do not have a financial interest in any real estate
located in the city which is subject to delinquent special assessments or ad valorem
taxes as of the date of the petition;
(b) The petitioner and its principals do not have a financial interest in any real estate
located in the State of Kansas on which special assessments or ad valorem taxes
were delinquent for a period of more than one year during the five-year period
immediately preceding the date of the petition;
(c) The petitioner and its principals are not in breach of any outstanding contractual
obligations owed to the city as of the date of the petition; and
(d) The petitioner and its principals have not been convicted of a felony financial
crime, including but not limited to fraud or embezzlement, during the five-year
period immediately preceding the date of the petition.
' These certifications are only required to be made by petitioners for special assessment financing in new
developments.
MAGNOLIA HILLS, INC.
LEGAL DESCRIPTION OF PROPERTY OWNED WITHIN THE PROPOSED
IMPROVEMENT DISTRICT:
Block 5, Lots 6 through 9; Block 6, Lots 2 through 3; Block 7, Lots 1 through 9; Block 8, Lot 1,
all in Magnolia Hills Estates Addition No. 2 to the City of Salina, Saline County, Kansas.
STATE OF KANSAS )
SALINE COUNTY )
1, the undersigned Notary Public, hereby certify that the si nature appearing above
i genui a and that this document was signed before me on this day of
2022.
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Notary Public
The petitioner and its principals do not have a financial interest in any real estate located in
the city of Salina which is subject to delinquent special assessments or ad valorem taxes as
of th'e1 date of the petition;
V
Saline County Treasurer's Office
Date: 4 f kj ) �, �—
File No. 21033
Preliminary Engineering Report
Petition No. 4412
Magnolia Hills Estates Addition No. 2, Phase 2
Utility, Street, and Drainage Improvements
May 2022
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This Page Intentionally Left Blank
Petition 4412
Magnolia Hills Estates Addition No.2, Phase 2
SCOPE OF WORK
The curb, gutter, pavement, and grading for approximately 383 lineal feet of Kasyn Lane, 595 lineal feet
of Huntwood Drive, 136 lineal feet of Deer Hollow Lane, and 71 lineal feet of Dunnwood Drive (the "Street
Improvements") and
The installation of approximately 121 lineal feet of storm sewer pipe, inlets, manholes and all appurtenances
thereto (the "Storm Drainage Improvements").
The installation of approximately 797 lineal feet of six-inch and 140 lineal feet of eight -inch water main,
fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water
System Improvements").
The installation of approximately 806 lineal feet of eight -inch sanitary sewer main, service connections for
sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements").
(collectively, the 'Improvements"), and all as more fully described in the detailed cost estimates attached
to this Report.
IMPROVEMENT DISTRICT
The extent of the proposed improvement district to be assessed is:
Block 5, Lots 6 through 9; Block 6, Lots 2 through 3; Block 7, Lots 1 through 9;
Block 8, Lot 1, all in Magnolia Hills Estates Addition No. 2 to the City of Salina,
Saline County, Kansas.
(the "Improvement District").
ADOPTION OF ASSESSMENT
The assessment with accrued interest to be levied as a special assessment tax upon the property included
with the benefit district concurrent with the general property tax and shall be payable in equal annual
installments as determined by the city commission but not to exceed twenty years.
Each parcel in the Improvement District shall be assessed equally per lot for costs of the various
Improvements benefitting such lot as described under the heading Apportionment of Cost below.
APPORTIONMENT OF COST
One hundred percent (100%) of the total cost of improvements shall be assessed to the Improvement
District and zero percent (0%) shall be paid by the City at Large.
Petition 4412
Magnolia Hills Estates Addition No. 2, Phase 2
Cost of Improvements
Item #
Item
Quantity
Unit
Unit Cost
Extension
1
Mobilization
1
LS
30,000.00
30,000.00
2
Clearing and Grubbing
I
LS
9,000.00
9,000.00
3
Construction Staking
1
LS
6,000.00
6,000.00
4
Traffic Control
1
LS
1,000.00
1,000.00
5
Erosion control
1
LS
15,000.00
15,000.00
6
Construction Entrance
45
LS
35.00
1,575.00
7
Seeding
1
LS
9,000.00
9,000.00
8
OM -4 Sign
3
Ea
100.00
300.00
9
Common Excavation
1,807
CY
6.00
10,842.00
10
Embankment
564
CY
4.00
2,256.00
11
Concrete Pavement, 6"
4,120
SY
50.00
206,000.00
12
Subgrade Modification, 6"
5,172
SY
10.00
51,720.00
13
Curb & Gutter
2,416
LF
20.00
48,320.00
14
Sidewalk Ramp, Type I
9
Ea
600.00
5,400.00
15
Valley Gutter
112
SY
65.00
7,280.00
16
Curb Inlet
2
Ea
10,000.00
20,000.00
17
Storm Sewer, RCP, 18"
40
LF
45.00
1,800.00
18
Storm Sewer, RCP, 24"
81
LF
50.00
4,050.00
19
Rip Rap
37
Ton
55.00
2,035.00
20
Connect to Existing Water Main
3
Ea
3,000.00
9,000.00
21
Water Pipeline, 6"
797
LF
30.00
23,910.00
22
Water Pipeline, 8"
140
LF
46.00
6,440.00
23
Long Service Line, 1 %z"
4
Ea
900.00
3,600.00
24
Short Service Line, I"
9
Ea
175.00
1,575.00
25
Fire Hydrant Assembly
2
Ea
5,500.00
11,000.00
26
Water Fittings
1
LS
20,000.00
20,000.00
27
Connect to Existing Manhole
2
Ea
1,000.00
2,000.00
28
Sewer Pipeline, 8"
806
LF
38.00
30,628.00
29
Sewer service pipeline, 4"
663
LF
30.00
19,890.00
30
Sewer tees, 8" x 4"
15
Ea
180.00
2,700.00
31
Standard Sanitary Sewer Manhole
4
Ea
10,500.00
42,000.00
32
Adjustment of Manhole
2
Ea
900.00
1,800.00
33
Extra Depth Manhole
12
LF
300.00
3600.00
Subtotal
$609,721.00
Developer's Engineering
17,100.00
Contingencies & Construction Interest
91,458.15
City Expenses 12-6a01 (d) (5%)
30,486.05
Interest, Bonding & Issue
30,486.05
Total
$779,251.25
4
Petition 4412
Magnolia Hills Estates Addition No. 2, Phase 2
General Items
Item #
Item
Quantity Unit
Unit Cost
Extension
1
Mobilization
1 LS
30,000.00
30,000.00
2
Clearing and Grubbing
1 LS
9,000.00
9,000.00
3
Construction Staking
I LS
6,000.00
6,000.00
4
Traffic Control
1 LS
1,000.00
1,000.00
5
Erosion control
1 LS
15,000.00
15,000.00
6
Construction Entrance
45 LS
35.00
1,575.00
7
Seeding
I LS
9,000.00
9,000.00
8
OM4 Sign
3 Ea
100.00
300.00
SY
Subtotal General Items
7,280.00
$71,875.00
Developer's Engineering
$331,818.00
$3,420.00
Developer's Engineering
Contingencies
$10,781.25
City Expenses 12-6a01 (d)(5%)
3,593.75
$49,772.70
Interest, Bonding & Issue
City Expenses 12-6a01 (d)(5%)
3,593.75
Total
Interest, Bonding & Issue
$93,263.75
Street Improvements
Item #
Item
Quantity
Unit
Unit Cost
Extension
9
Common Excavation
1,807
CY
6.00
10,842.00
10
Embankment
564
CY
4.00
2,256.00
11
Concrete Pavement, 6"
4,120
SY
50.00
206,000.00
12
Subgrade Modification, 6"
5,172
SY
10.00
51,720.00
13
Curb & Gutter
2,416
LF
20.00
48,320.00
14
Sidewalk Ramp, Type 1
9
Ea
600.00
5,400.00
15
Valley Gutter
112
SY
65.00
7,280.00
Subtotal Street & Storm
$331,818.00
Developer's Engineering
$3,420.00
Contingencies
$49,772.70
City Expenses 12-6a01 (d)(5%)
16,590.90
Interest, Bonding & Issue
16,590.90
Total
$418,192.50
M
Petition 4412
Magnolia Hills Estates Addition No. 2, Phase 2
Storm Improvements
Item #
Item
Quantity
Unit
Unit Cost
Extension
16
Curb Inlet
2
Ea
10,000.00
20,000.00
17
Storm Sewer, RCP, 18"
40
LF
45.00
1,800.00
18
Storm Sewer, RCP, 24"
81
LF
50.00
4,050.00
19
Rip Rap
37
Ton
55.00
2,035.00
24
Subtotal Street & Storm
9
Ea
175.00
$27,885.00
25
Developer's Engineering
2
Ea
5,500.00
$3,420.00
26
Contingencies
1
LS
20,000.00
$4,182.75
City Expenses 12-6a01 (d) (5%)
1,394.25
Interest, Bonding & Issue
1,394.25
Total
$38,276.25
Water Improvements
Item #
Item
Quantity
Unit
Unit Cost
Extension
20
Connect to Existing Water Main
3
Ea
3,000.00
$9,000.00
21
Water Pipeline, 6"
797
LF
30.00
23,910.00
22
Water Pipeline, 8"
140
LF
46.00
6,440.00
23
Long Service Line, 1'/2"
4
Ea
900.00
3,600.00
24
Short Service Line, 1"
9
Ea
175.00
1,575.00
25
Fire Hydrant Assembly
2
Ea
5,500.00
11,000.00
26
Water Fittings
1
LS
20,000.00
20,000.00
Subtotal Water Main
$75,525.00
Developer's Engineering
$3,420.00
Contingencies
$11,328.75
City Expenses 12-6a0I (d) (5%)
3,776.25
Interest, Bonding & Issue
3,776.25
Total
$97,826.25
M
Petition 4412
Magnolia Hills Estates Addition No. 2, Phase 2
Sanitary Sewer Improvements
Item #
Item
Quantity
Unit
Unit Cost
Extension
27
Connect to Existing Manhole
2
Ea
1,000.00
$2,000.00
28
Sewer Pipeline, 8"
806
LF
38.00
$30,628.00
29
Sewer service pipeline, 4"
663
LF
30.00
$19,890.00
30
Sewer tees, 8" x 4"
15
Ea
180.00
$2,700.00
31
Sanitary Sewer Manhole, 4'
4
Ea
10,500.00
$42,000.00
32
Adjustment of Manhole
2
Ea
900.00
$1,800.00
33
Extra Depth Manhole
12
LF
300.00
$3,600.00
Subtotal Sanitary Sewer
$102,618.00
Developer's Engineering
$3,420.00
Contingencies
$15,392.70
City Expenses 12-6a01 (d) (5%)
5,130.90
Interest, Bonding & Issue
5,130.90
Total
$131,692.50
7
Petition 4412
Magnolia Hills Estates Addition No. 2, Phase 2
Property Ownership
Hills Estates Addition No. 2 Property Owner
Block 5
Lot 6
Magnolia Hills, Inc.
Lot 7
Magnolia Hills, Inc.
Lot 8
Magnolia Hills, Inc.
Lot 9
Magnolia Hills, Inc.
Block 6
Lot 2 Magnolia Hills, Inc.
Lot 3 Magnolia Hills. Inc.
Block 7
Lot 1
Magnolia Hills, Inc.
Lot 2
Magnolia Hills, Inc.
Lot 3
Magnolia Hills, Inc.
Lot 4
Magnolia Hills, Inc.
Lot 5
Magnolia Hills, Inc.
Lot 6
Magnolia Hills, Inc.
Lot 7
Magnolia Hills, Inc.
Lot 8
Magnolia Hills, Inc.
Lot 9
Magnolia Hills, Inc.
Block 8
Lot 1 Magnolia Hills. Inc.
8
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IMPROVEMENT DISTRICT DEVELOPMENT AGREEMENT
by and between the
CITY OF SALINA, KANSAS
and
MAGNOLIA HILLS, INC.
DATED AS OF , 2022
This Page Intentionally Left Blank
IMPROVEMENT DISTRICT DEVELOPMENT AGREEMENT
This Improvement District Development Agreement (the "Agreement") dated as of
, 2022, by and between the City of Salina, Kansas (the "City"), and Magnolia Hills,
Inc., a Kansas corporation (the "Developer").
WHEREAS, on April 19, 2022, the Developer filed with the City Clerk Petition No. 4412 (the
"Petition"), pursuant to K.S.A. 12-6a01 et seq. (the "Act"); and
WHEREAS, the Petition requests that the City create the Improvement District, construct the
Improvements, assess the costs thereof against the Improvement District (all as defined in the Petition), and
issue the City's general obligation bonds to finance the costs of the Improvements; and
WHEREAS, the City has prepared the Preliminary Engineering and Feasibility Report (the
"Feasibility Report") related to the Improvements; and
WHEREAS, the Developer desires to construct the Improvements and provide financing for the
costs of the Improvements until such time as the City issues general obligation bonds to permanently finance
the costs of the Improvements, all subject to the terms and conditions of this Agreement; and
NOW, THEREFORE, in consideration of the foregoing, and of the mutual covenants and
agreements herein contained, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the City and the Developer hereby agree as follows:
1. Constructing the Improvements.
A. Construction. The Developer shall design, construct and install, at its own expense, the
Improvements described in the Petition, subject to reimbursement by the City as provided
in Paragraph 3 below. The design, construction and installation of the Improvements
shall be in accordance with all applicable laws including the City Code, and the
Developer shall obtain or shall cause to be obtained all licenses, permits or other
approvals required by any governmental authorities to complete the Improvements.
B. Timing. The Developer shall begin work on the Improvements promptly after execution
of this Agreement and satisfaction of the Developer's obligations under Paragraphs 4
(surety bonds) and 5.1) (contractor warranties) of this Agreement, but no contract shall
be let and construction shall not commence until after Resolution No. 22-8044
(creating the Improvement District and authorizing the Improvements, the
"Advisability Resolution") is published in the Salina Journal. All work on the
Improvements must be performed with reasonable diligence and work may not cease for
more than fifteen (15) consecutive days.
If construction of the Improvements has not commenced within 180 days of
execution of this Agreement, the City may terminate this Agreement and repeal the
Advisability Resolution, and the City shall have no obligation to construct the
Improvements or reimburse the Developer for any costs or expenses whatsoever,
including but not limited to any costs related to the Improvements and/or costs of
negotiating this Agreement.
2. Certifvina Completion of the Improvements
A. Upon the completion of the Improvements, the Developer shall submit to the City a
request for reimbursement, accompanied by copies of all paid invoices for the
Improvements, in accordance with Exhibit A. The Developer also shall furnish all
records, contracts, bills and other documents relating to the Improvements and the
Developer's financing of the costs thereof, that the City reasonably requests in order to
verify the amount to be reimbursed pursuant to this Agreement. Further, Developer shall
provide to the City adequate documentation that all contractors, engineers or other parties
that have provided goods or services for the Improvements have been paid in full by the
Developer.
B. After receiving the foregoing information, the City will arrange for final inspection of the
Improvements. If the Improvements have been completed in substantial compliance with
the Advisability Resolution, the City shall certify completion of the Improvements and
issue a Certificate of Completion in accordance with Exhibit B. The City shall review all
invoices and other requested documentation, inspect the Improvements and either (i)
issue to the Developer a Certificate of Completion or (ii) provide to Developer a list of
additional required documentation, within 30 days after the Developer submits a request
for reimbursement.
3. Reimbursement.
A. The City shall reimburse the Developer for the Developer's actual cost of the
Improvements, as submitted pursuant to Paragraph 2 of this Agreement. The Developer
shall also be reimbursed for interest expense related to financing the costs of the
Improvements only to the extent that the Developer has obtained financing from an
unrelated third party, and then the Developer shall only be reimbursed for such financing
costs as are paid by the Developer to the unrelated third party.
B. The maximum total amount of reimbursement to the Developer under this
agreement shall be $718,279.15. The Parties agree that the costs shown in the Petition
and Feasibility Report are an estimate only, and reimbursement shall be based on the
actual expenses incurred by the Developer and verified by the City pursuant to Paragraph
2 of this Agreement; except that, in no event shall the Developer be entitled to
reimbursement in excess of the amount shown in this paragraph.
C. The City shall not issue any reimbursement payment until all of the following actions
have occurred:
(i) the Certificate of Completion has been issued in accordance with Paragraph 2 of
this Agreement;
(ii) an ordinance levying assessments pursuant to the Petition, the Advisability
Resolution and the Act has been approved by the City Commission;
(iii) the City has issued its general obligation bonds to permanently finance the costs
of the Improvements; and
2
(iv) the Developer has furnished to the City a Financial Guarantee equal to 20% of
the total cost of the Improvements to be assessed against the Improvement
District.
a. For purposes of this paragraph, the tern "Financial Guarantee" means: (1)
cash; (2) escrow account with a financial institution, funded with securities
held in trust for the City's benefit, all as approved at the discretion of the
City; (3) irrevocable letter of credit from a financial institution approved at
the discretion of the City; or (4) surety bond, approved at the discretion of the
City as to form, execution and surety.
b. The Financial Guarantee shall remain in full force and effect until certificates
of occupancy for principal buildings are issued for at least 35% of the
properties (by lot) within the Improvement District.
c. If any special assessment imposed pursuant to the terms of the ordinance
levying assessments is not paid when due on property within the
Improvement District, the Financial Guarantee will be applied on July 1 of
each year to satisfy the principal, interest and any additional costs or
penalties prompted by delinquent payment of such special assessments.
Notwithstanding the foregoing, however, the Financial Guarantee shall not
be applied in connection with a delinquent payment of a special assessment
on property that has been sold by the Developer in a commercially
reasonable, arms -length transaction and conveyed to, and is owned by, a
person or entity unaffiliated with the Developer.
d. Notwithstanding the provisions of Section 9 of Resolution 18-7556 (the
City's current policy for financing public improvements through the use of
Improvement Districts under the Act), the Developer shall not be obligated to
provide the Financial Guarantee prior to receipt of the Certificate of
Completion delivered by the City pursuant to Paragraph 2 of this
Agreement. The Developer shall be obligated to provide the Financial
Guarantee prior to the date when the City begins marketing its general
obligation bonds to permanently finance the costs of the Improvements and
reimburse the Developer for the costs thereof.
D. The Developer hereby acknowledges that the following actions are required after the
Certificate of Completion is issued and before proceeds of the City's general obligation
bonds are available to reimburse the Developer:
a. City prepares final feasibility study showing final costs of the Improvements
and allocation of assessments to each property within the Improvement
District;
b. City Commission adopts resolution or otherwise provides for the calling of a
public hearing on the levy of assessments;
c. Notice of public hearing on the levy of assessments is published in the local
paper and mailed to all property owners within the Improvement District;
d. City Commission holds public hearing on the levy of assessments and
considers on first reading the ordinance levying assessments;
e. City Commission has second reading and approves ordinance levying
assessments;
f Ordinance levying assessments is published in local paper;
g. Property owners within the Improvement District are given 30 days to prepay
assessments;
h. Amount of general obligation bond financing is determined by City (equal to
total costs of Improvements less any prepayments);
i. City works with Financial Advisor and Bond Counsel to begin marketing
general obligation bonds to investors;
j. City holds bond sale; Commission approves sale of bonds to best bidder;
k. City works with financing team on various closing matters;
1. City certifies assessment, together with interest, to County for property tax
bills;
in. City closes bond issue; receives funds to reimburse the Developer.
The Developer further acknowledges that the City typically issues general obligation
bonds in April of each year. In order for the City to complete all of the above -referenced
steps to include financing for the Improvements in a particular year's bond issuance, the
Developer must submit the documentation required by Paragraph 2 of this Agreement in
sufficient time to permit the City to issue a Certificate of Completion by March 1. If a
Certificate of Completion is not issued by January 1, then reimbursement will not occur
until the following year's regularly -scheduled general obligation bond issue. The
Developer is solely responsible for paying any additional financing costs incurred by the
Developer as a result of any delay in the issuance of general obligation bonds for the
Improvements, if such financing costs, together with the actual project costs, exceed the
maximum reimbursement set forth in Paragraph 3(A) of this Agreement.
E. The City will use its best efforts to issue general obligation bonds in April of each year.
If the City's issuance of general obligation bonds to permanently finance the
Improvements is prevented, hindered or delayed for any reason, the Developer is solely
responsible for carrying the costs of the Improvements. The City shall have no obligation
to reimburse the Developer unless and until the City issues general obligation bonds for
the purpose of financing the Improvements.
4. Payment Bonds.
A. Prior to the commencement of work on the Improvements, the Developer shall obtain
from its contractor(s) statutory public works bond(s) required by K.S.A. 60-1111
("Payment Bond"), as follows:
(i) [reserved]
(ii) A statutory payment bond running to the state of Kansas, conditioned that the
contractor as principal shall pay all indebtedness incurred for labor, supplies,
equipment, and materials furnished in making the Improvements called for by the
contract documents.
B. The bond shall be in an amount at least equal to the contract price for the Improvements.
The form of bond shall be subject to approval by the City. The bond shall be executed by
such sureties as are authorized to conduct business in the state of Kansas. All bonds
signed by an agent must be accompanied by a certified copy of the agent's authority to
act. The Developer or its contractor shall file a Payment Bond with the Clerk of the
Saline County District Court in accordance with K.S.A. 60-1111(b) and deliver a file -
stamped copy to the City Clerk. The premiums for such bonds shall constitute costs
chargeable to the Improvement District. The Developer shall indemnify the City and its
officers and employees for any damage resulting from failure of the Developer to provide
the bonds required by this subsection.
5. Contractor's Warranty to Citv.
A. If within two years after final acceptance of the Improvements as a whole (as indicated
on the Certificate of Completion provided pursuant to Paragraph 2.13 of this Agreement),
any Improvements are found to be defective, the Developer's contractor for such
Improvements shall promptly, without cost to the City and in accordance with the City's
written instructions:
(i) Correct such defective Improvements; or
(ii) If the defective Improvements have been rejected by the City, remove and
replace them with Improvements that are not defective; and satisfactorily correct
or repair, or remove and replace, any damage to other Improvements or other
land or areas resulting therefrom.
B. If the Developer's contractor does not promptly comply with the terms of the City's
written instructions, or in an emergency where delay would cause serious risk of loss or
damage, the City may have the defective Improvements corrected or repaired or may
have the rejected Improvements removed and replaced. All claims, costs, losses, and
damages (including but not limited to all fees and charges of engineers, architects,
attorneys, and other professionals and all court costs) arising out of or relating to such
correction or repair or such removal and replacement (including but not limited to all
costs of repair or replacement of work of others) will be paid by the Developer's
contractor.
C. Where defective Improvements (and damage to other Improvements resulting therefrom)
has been corrected or removed and replaced under this paragraph, the warranty period
hereunder with respect to such Improvements will be extended for an additional period of
two years after such correction or removal and replacement has been satisfactorily
completed.
D. Prior to the commencement of work on the Improvements, the Developer's contractor(s)
constructing the Improvements shall expressly acknowledge and agree in writing to
undertake and perform the warranty obligations set forth in this Paragraph 5 as they apply
to such contractor's portion(s) of the Improvements. Each contractor shall expressly
acknowledge and agree, in its contract with the Developer, that the City (i) is an express
third -party beneficiary of the contractor's warranty, (ii) shall be entitled to the rights and
benefits thereunder, and (iii) may enforce the provisions thereof as if it were a party
thereto. The form of the Developer's contract(s) shall be subject to approval by the City.
E. Prior to the date when the City begins marketing its general obligation bonds to
permanently finance the costs of the Improvements and reimburse the Developer for the
costs thereof, the Developer shall provide a warranty and maintenance bond to the City.
The bond shall be in an amount equal to the total cost of the Improvements. The form of
bond shall be subject to approval by the City. The bond shall be executed by such
sureties as are authorized to conduct business in the state of Kansas. All bonds signed by
an agent must be accompanied by a certified copy of the agent's authority to act.
Notwithstanding the City's receipt of warranty and maintenance bond, the Developer
shall remain fully responsible for all warranty and maintenance obligations set forth in
this Paragraph 5.
F. The obligations under this paragraph are in addition to any other obligation or warranty,
and shall not be construed as a substitute for, or a waiver of, the provisions of any
applicable statute of limitations or repose.
6. Waiver. THE DEVELOPER HEREBY AGREES TO WAIVE ANY RIGHTS THAT IT
MAY HAVE PURSUANT TO KANSAS STATUTES, THE KANSAS CONSTITUTION,
THE UNITED STATES CONSTITUTION, OR AS OTHERWISE PROVIDED BY LAW
TO OBJECT TO ANY SPECIAL ASSESSMENTS REQUESTED IN THE PETITION
AND IMPOSED PURSUANT TO THE ACT. The Developer acknowledges and agrees that
this waiver is freely given and with full knowledge of the extent of all statutory, constitutional or
other legal rights being waived thereby, and is given in consideration of the City forming the
Improvement District and assisting in providing for the financing and construction of the
Improvements.
7. City Expenses, Deposit. The Developer shall be responsible for the payment of all non -City
employee legal, financial and planning consultants for direct out-of-pocket expenses and other
reasonable costs resulting from services rendered to the City to review, evaluate, process and
consider the Petition and this Agreement (the "City Expenses'). Before this Agreement
becomes effective, the Developer shall deposit with the City the sum of $2,500 to pay the
City Expenses. If such deposit is insufficient to pay all City Expenses, the Developer shall pay
all additional City Expenses within 10 days after presentation of an invoice from the City. The
City shall return any unused funds to the Developer on the date when the City reimburses the
Developer pursuant to Paragraph 3 of this Agreement.
8. Indemnity.
A. General Indemnity. The Developer shall indemnify, release, defend, be responsible for
and forever hold harmless the City, its officers, agents, employees, elected officials, and
attorneys, each in their official and individual capacities, from and against all lawsuits,
suits, actions, costs, claims, demands, damages, disability, losses, expenses, including
reasonable attorney's fees and other defense costs or liabilities of any character and from
any cause whatsoever, brought because of bodily injury or death received or sustained, or
loss or damage received or sustained, by any person, persons, or property arising out of or
resulting from any act, error, omission, or intentional act of the Developer or its agents,
employees, or subcontractors in connection with the design, construction, installation and
maintenance of the Improvements.
B. No Limitations or Waiver. The indemnity required hereunder shall not be limited by
reason of any insurance coverage provided by the Developer as required by this
Agreement. The City does not, and shall not, waive any rights against the Developer
which it may have by reason of this indemnification. This indemnification by the
Developer shall not be limited by reason of whether or not the Developer's insurance
policies shall have been determined to be applicable to any such damages or claims for
damages.
3
C. Use of Independent Contractors. The fact that the Developer carries out any activities
connected with the Improvements under this Agreement through independent contractors
shall not constitute an avoidance of, or defense to, the Developer's duty of defense and
indemnification under this section.
9. Insurance.
A. Types and Amount of Coverage. During construction of the Improvements, the
Developer agrees to obtain insurance coverage as specified in Exhibit C attached hereto
and shall not make any material modification or change from these specifications without
the prior approval of the City. If the Developer subcontracts any of its obligations under
this Agreement, the Developer shall require each such subcontractor to obtain insurance
coverage as specified in Exhibit C. Failure of the Developer or its subcontractors to
comply with these requirements shall not be construed as a waiver of these requirements
or provisions and shall not relieve the Developer of liability.
B. Rating. All insurance policies shall be issued by insurance companies rated no less than
A- VII in the most recent "Bests" insurance guide and admitted in the State of Kansas.
Except as otherwise specified in Exhibit C, all such policies shall be in such form and
contain such provisions as are generally considered standard for the type of insurance
involved.
C. Certificate of Insurance. The parties acknowledge that the Developer has provided the
City with a certificate of insurance listing the City as the Certificate Holder and
evidencing compliance with the insurance requirements in this Agreement. The City
reserves the right to require complete certified copies of all insurance policies procured
by the Developer pursuant to this Agreement, including any and all endorsements
affecting the coverage required hereunder.
10. Default and Termination. The Developer shall be in default of this Agreement if the Developer
fails to comply with any obligations set forth in this Agreement. This Agreement may be
terminated at the option of the City if written notice of event of default has been delivered to the
Developer by the City and the Developer has not cured such default or is not actively pursuing
such cure within thirty (30) days after such notice is delivered.
11. Retention and Inspection of Records.
A. Retention. The Developer shall maintain complete, accurate, and clearly identifiable
records with respect to the Improvement Costs and any other documents created pursuant
to, or arising under, this Agreement, including, but not limited to, all general contractor's
sworn statements, general contracts, subcontracts, material purchase orders, waivers of
lien, and paid receipts and invoices (collectively, the "Records'). The Records shall be
maintained during the term of this Agreement, and for a period of five (5) years after
final acceptance of the Improvements as a whole (as indicated on the Certificate of
Completion provided pursuant to Paragraph 2.13 of this Agreement) (the "Retention
Period"); provided, however, that if any litigation, claim or audit is commenced prior to
the expiration of the Retention Period, then the Retention Period shall be extended until
all litigation, claims or audit findings have been completely terminated or resolved,
without right of further appeal.
B. Inspection. During the Retention Period, the Developer shall allow a representative of
the City, with reasonable advance notice and during normal business hours, to examine,
audit, and make transcripts or copies of the Records. Notwithstanding the foregoing,
during the last three (3) calendar years of the Retention Period (plus any extension
pursuant to Paragraph I LA above), the City shall only be entitled to inspect the Records
if the City reasonably determines, based on a post -project review or audit of the
Improvements or the City's then -available records relating to the Improvements, that the
City may have paid the Developer for work not properly rendered, or reimbursed the
Developer for costs or expenses not allowed under the terms of this Agreement (a
"Determination). The City's right to inspect Records following a Determination shall be
limited to the extent necessary to confirm the accuracy of the Determination, or the facts
giving rise thereto.
12. Restrictions on the Sale of Lots. The Developer shall not sell any property within the
Improvement District prior to the receipt of the Certificate of Completion delivered by the City
pursuant to Paragraph 2 of this Agreement.
13. General Provisions.
A. No waiver of any provision of this Agreement will be deemed or constitute a waiver of
any other provision, nor will it be deemed or constitute a continuing waiver unless
expressly provided for by a written amendment to this Agreement signed by both the City
and the Developer; nor will the waiver of any defect under this Agreement be deemed a
waiver of any subsequent default or defaults of the same type. The City's failure to
exercise any right under this Agreement, will not constitute the approval of any wrongful
act by the Developer or the acceptance of any Improvements.
B. The parties to this Agreement may amend or modify this Agreement only by written
instrument duly executed by the parties hereto.
C. No person or entity who or which is not a party to this Agreement will have any right of
action under this Agreement.
D. This Agreement constitutes the entire Agreement between the parties, and no statements,
promises, or inducements that are not contained in this Agreement will be binding on the
parties. This Agreement may not be assigned to any other parties without the prior
written consent of the City.
E. If any part, term, or provision of this Agreement is held by a court to be illegal or
otherwise unenforceable, such illegality or unenforceability will not affect the validity of
any other part, term, or provision, and the rights of the parties will be construed as of the
part, term, or provision was never part of this Agreement.
F. The City may file a copy of this Agreement in the office of the Register of Deeds for
Saline County, Kansas.
G. Nothing contained in this Agreement constitutes a waiver of the City's sovereign
immunity under any applicable state law.
H. This Agreement shall be construed in accordance with and governed by the laws of the
State of Kansas.
IN WITNESS WHEREOF, the parties hereunto have executed this Agreement this _ day of
, 2022.
(Seal)
ATTEST:
JoVonna A. Rutherford, City Clerk
STATE OF KANSAS )
) SS.
COUNTY OF SALINE )
CITY OF SALINA, KANSAS
Michael D. Schrage, City Manager
On 2022, before me, the undersigned, a Notary Public in and for said state,
personally appeared and proved to me on the basis of
satisfactory evidence to be the persons whose names are subscribed to the within instrument as City Manager
and City Clerk, respectively, of the CITY OF SALINA, KANSAS, and acknowledged to me that they
executed the same in their authorized capacities, and that by their signatures on the instrument the entity upon
behalf of which the persons acted, executed the instrument.
WITNESS my hand and official seal.
My conunission expires:
6
Notary Public
IN WITNESS WHEREOF, the parties hereunto have executed this Agreement this day of
.2022.
STATE OF
) SS.
COUNTY OF
Magnolia Hills, Inc.
a Kansas corporation
LE
Name: Kelly R. Dunn
Title: President
On 20. before me, the undersigned, a Notary Public in and for said state,
personally appeared , proved to me on the basis of satisfactory evidence to be the
persons whose names are subscribed to the within instrument as , of Magnolia Hills, Inc.,
and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by he/her
signature on the instrument the entity upon behalf of which the person acted, executed the instrument.
WITNESS my hand and official seal.
My commission expires:
II9
Notary Public
EXHIBIT A
FORM OF REIMBURSEMENT REQUEST
TO: City of Salina, Kansas
Attention: City Manager
Re: Magnolia Hills Estates No. 2, Phase 2 Improvement District
Terms not otherwise defined herein shall have the meaning ascribed to such terms in the
Improvement District Development Agreement dated as of 20_ (the `Agreement')
between the City and the Developer.
In connection with the Agreement, the undersigned hereby states and certifies that:
1. Each item listed on Schedule 1 hereto is cost that was incurred in connection with the
construction of the Improvements after , 20 [INSERT DATE DISTRICT
CREATED BY RESOLUTION], and is an eligible cost pursuant to the Petition, the Advisability
Resolution and the Act. Attached hereto are invoices and other supporting documentation showing proof
that each cost listed in Schedule 1 was actually incurred by the Developer and is an eligible cost pursuant
to the Petition, the Advisability Resolution and the Act.
2. There has not been filed with or served upon the Developer any notice of any lien, right
of lien or attachment upon or claim affecting the right of any person, fum or corporation to receive
payment of the amounts stated in this request, except to the extent any such lien is being contested in
good faith.
3. The Improvements have been completed in a workmanlike manner and in accordance
with all construction plans approved by the City. All necessary permits and approvals required for the
work for which this certificate relates were issued and were in full force and effect at the time such work
was being performed.
4. The Developer is not in default or breach of any term or condition of the Agreement, and
no event has occurred and no condition exists which constitutes an event of default under the Agreement.
Dated this day of 20_
MAGNOLIA MLLS, INC.,
a Kansas corporation
0
Name:
Title:
A-1
Approved for Payment this day of 20_
CITY OF SALINA, KANSAS
M
Title:
A-2
EXMIT B
FORM OF CERTIFICATE OF COMPLETION
The undersigned, MAGNOLIA HILLS, INC., a KANSAS CORPORATION (the "Developer"),
pursuant to that certain Improvement District Development Agreement dated as of --120
between the CITY OF SALINA, KANSAS (the "City") and the Developer (the "Agreement"), hereby
certifies to the City as follows:
1. That as of 20the construction of all Improvements (as such term is
defined in the Agreement) have been completed in accordance with the Petition, the Advisability Resolution
and the Agreement.
2. This Certificate of Completion is being issued by the Developer to the City in accordance
with the Agreement to evidence the Developer's satisfaction of all obligations and covenants with respect to
the construction of the Improvements.
3. At the Developer's request, the City shall record this Certificate with the Saline County
Recorder of Deeds, as evidence that the Developer has satisfied all agreements and covenants to construct the
Improvements pursuant to the Agreement.
Terms not otherwise defined herein shall have the meaning ascribed to such terms in the Agreement.
IN WITNESS WHEREOF, the undersigned has hereunto set his/her hand this day of
20
CITY OF SALINA, KANSAS
LE
Name:
Title:
(Insert Notary Form and Legal Description if Certificate to be Recorded)
IM
EXIMIT C
INSURANCE REQUIREMENTS
Pursuant to Paragraph 9 of the Agreement, the Developer shall obtain, pay for, and maintain — and shall
require each of its authorized contractors and subcontractors to obtain and maintain — for the duration of the
Agreement, policies of insurance meeting the following requirements:
1. General Requirements.
A. Additional Insured. With the exception of any workers' compensation policies to be
obtained by the Developer hereunder, all policies shall name the City of Salina ("City"), its agents,
representatives, officers, officials, and employees as additional insured(s). Insurance for the additional
insured shall extend to Products/Completed Operations and be as broad as the insurance for the named
insured, including defense expense coverage, and, with respect to the commercial general liability policy
required hereunder, shall be endorsed to apply as primary and non-contributory insurance before any other
insurance or self-insurance, including any deductible, maintained by, or provided to, the additional
insured(s).
B. Waiver of Subrogation. Where allowed by law, all policies will include a waiver of
subrogation in favor of the City, its agents, representatives, officers, officials, and employees.
C. Claims Made Policies. If coverage is written on a claims -made basis for any of the policies
required by this Agreement, the Developer must maintain the coverage for a minimum of two (2) years from
the date of final completion of all work under the Agreement.
D. Premium and Deductible Expenses. The Developer shall be responsible for all premiums
and retention or deductible expense for any and all policies required by this Agreement.
2. Specific Coverage Requirements.
A. Commercial General Liability ("CGL"). The Developer shall maintain CGL coverage
written on ISO Occurrence form CG00 01 or an industry equivalent and shall cover liability arising from
Personal Injury, Bodily Injury, Property Damage, Premises and Operations, Products and Completed
Operations, Contractual Liability, Independent Contractors and Advertising Injury. The policy limits shall
not be less than the following:
• Each occurrence $1,000,000
• General aggregate $2,000,000
• Personal and Advertising Liability $1,000,000
The policy shall contain an endorsement that modifies the general aggregate to apply separately to each
project. The Developer shall maintain the Products and Completed Operations liability coverage for a period
of at least two (2) years after completion of all work under the Agreement.
B. Business Automobile Liability (`BAL"). The Developer shall maintain BAL coverage
written on ISO form CA 00 01 or an industry equivalent. Coverage shall be applicable to all autos and other
vehicles subject to compulsory auto liability laws that are owned, hired, rented or used by the Developer and
include automobiles not owned by but used on behalf of the Developer. The BAL policy limits shall not be
less than the following:
C-1
• Combined single limit $1,000,000
C. Workers' Comnensation/EmDover's Liability. The Developer shall maintain workers'
compensation and employer's liability coverage with policy limits not less than the following:
Workers' Compensation (Coverage Part A)
o Statutory
Employer's Liability (Coverage Part B)
o $100,000 each accident
o $500,000 disease — policy limit
o $100,000 disease— each employee
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