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Home My WebLink AboutC3 - NWE Construction Agreement Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Carolyn Poissant – Trails. Open Space and Parks Design and Development Manager Mitch Overton – Director of Parks and Recreation SUBJECT: Construction Agreement with NorthWestern Energy for Power Pole Replacement in Story Mill Community Park MEETING DATE: June 13, 2016 AGENDA ITEM TYPE: Consent RECOMMENDATION: Approve the Construction Agreement with NorthWestern Energy to cost share and replace an existing power pole and guy wires with a free-standing pole in Story Mill Community Park and authorize the City Manager to sign the appropriate documents. RECOMMENDED MOTION: I hereby move to approve the Construction Agreement (Attachment A) with NorthWestern Energy to cost share and replace an existing power pole and guy wires with a free-standing pole in Story Mill Community Park and authorize the City Manager to sign the appropriate documents. BACKGROUND: The Parks Department and Trust for Public Land, acting in partnership under an existing Memorandum of Understanding, are in the process of preparing a Master Site Development Plan for Story Mill Community Park. One of the key features of the design is a barrier-free river access and connecting boardwalk at the eastern edge of the newly-created floodplain area north of East Griffin Drive. Guy wires from an existing power pole extend roughly 40 feet in two directions, greatly impacting the area both physically and visually (see Exhibit A – Power Pole Location). NorthWestern Energy has agreed to share the cost and manage the construction for replacement of the existing 161kv power pole and guy wires with a free-standing pole. The estimated cost of replacing the power pole with a free-standing pole is $80,000. Per the attached Agreement, the City’s reimbursement shall not exceed half the actual cost incurred by NorthWestern. The City portion of the cost share shall come from the $60,250 in compensation obtained per the Easement Modification Agreement with NorthWestern Energy approved by Commission on January 25, 2016. Access to the pole and construction activities would be essentially contained within NorthWestern Energy’s existing easement. All disturbed areas will be restored with native grass to match the existing condition. There would be no detrimental impacts to the Park. 20 ATTACHMENTS: Attachment A – Construction Agreement Exhibit A – Power Pole Location UNRESOLVED ISSUES: None. Parks staff will continue to coordinate with Northwestern Energy throughout the project. ALTERNATIVES: As Directed by Commission. FISCAL EFFECTS: None. No funds from originally approved allocation of Trail, Open Space and Bond funds ($4.5 million) would be utilized. The $40,000 will be taken from the $60,250 paid for the gas line easement as approved by Commission. Report compiled on: June 7, 2016 21 NWE-0001072 1 REIMBURSEMENT AGREEMENT This Reimbursement Agreement (“Agreement”), made and entered into effective as of the ____ day of June, 2016, by and between City of Bozeman, a municipality organized under the laws of the State of Montana (hereinafter referred to as "City"), with principal mailing address of PO Box 1230, Bozeman, MT 59771-1230, and NorthWestern Corporation d/b/a NorthWestern Energy, a Delaware corporation (hereinafter referred to as “NorthWestern”), with an office at 11 E. Park St., Butte, MT 59701. WHEREAS, City is rehabilitating its Story Mill Community Park (the “Park”) located north of East Griffin Drive in Bozeman; and WHEREAS, NorthWestern owns and operates a 161 kV power line that is attached to power poles, one of which is located at the Park and is identified as Pole # 10-02 (hereinafter referred to as “the Power Pole”); and WHEREAS, City has requested that NorthWestern replace the Power Pole and enter into an agreement providing for such replacement and reimbursement, and NorthWestern is willing to complete the work, without full reimbursement, for the betterment of the Park and the City; and NOW, THEREFORE, the parties agree as follows: 1. NorthWestern shall replace the Power Pole at the Park to eliminate the conflicts with the 161kV transmission pole down guys and anchors. The Power Pole, described as a 75-ft Class 2 pole, and its down guys and anchor will be replaced with a LWS self-supporting pole, described as LWS ELR-H16-83.5c180 LAM pole, in the existing pole location. NorthWestern may employ third-party contractors to perform any work hereunder. 2. NorthWestern shall provide City a plan for replacing the Power Pole which includes preliminary engineering and cost estimates prior to performing the work hereunder. No relocation work will be performed until the parties have agreed on the replacement plan. 3. City shall reimburse NorthWestern 50% of the actual costs and expenses incurred in connection with the relocation contemplated by this Agreement, within 30 days of receipt of an invoice from NorthWestern. 4. NorthWestern shall make reasonable efforts to relocate the Power Pole by December 31, 2016, subject to this Agreement being fully executed on or before July 31, 2016, the acquisition of materials, and the timely receipt of all applicable governmental and environmental permits or licenses. With the exception of the respective indemnification obligations of NorthWestern and the City, this Agreement will terminate upon completion of the relocation of the Power Pole and satisfaction of the reimbursement obligations set forth in Paragraph 5. 5. The cost of the relocation work is estimated by the parties to be $80,000 (the “Estimate”). It is understood that this Estimate in no way constitutes the final reimbursement amount as provided in Paragraph 3 above. The reimbursement shall not exceed half the actual costs and expenses incurred by NorthWestern. Actual costs and expenses include, but are not limited to, planning, design, materials, labor, contract, auto-mechanical equipment, and engineering costs in connection with accomplishing the relocation contemplated by this Agreement. NorthWestern shall provide an invoice to City after the completion of the work contemplated by this Agreement. All payments based upon this final invoice detail of costs shall be made within 30 days of the date of receipt by City of the invoice. 6. NorthWestern shall comply with applicable laws during the performance of the relocation of the Power Pole at the Park. 7. NorthWestern shall have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. NorthWestern shall not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or 22 NWE-0001072 2 privilege of employment because of race, color, religion, creed, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when reasonable demands of the position require an age, physical or mental disability, marital status, or sex distinction. NorthWestern shall require these nondiscrimination terms of its subcontractors fulfilling NorthWestern’s obligations under this Agreement. 8. NorthWestern agrees to indemnify, protect, and hold City, and its officers, employees, representatives and agents harmless from and against any and all third party actions or causes of action, claims, demands, liabilities, loss, damage, injury, suit, proceeding, judgment, cost, or expense of whatever kind or nature, including but not limited to reasonable attorneys' fees, arising from or as a result of any negligent incident, act, action or omission of said NorthWestern, in connection with, or incidental to the relocation of Power Pole except to the extent such loss, cost, liability, or expense was proximately caused by the negligence of City or its employees. City agrees to indemnify, protect, and hold NorthWestern and its directors, officers, employees, representatives and agents harmless from and against any and all third party actions or causes of action, claims, demands, liabilities, loss, damage, injury, suit, proceeding, judgment, cost, or expense of whatever kind or nature, including but not limited to reasonable attorneys' fees, arising from or as a result of any negligent incident, act, action or omission of City, in connection with, or incidental to the relocation of the Power Pole except to the extent such loss, cost, liability, or expense was proximately caused by the negligence of NorthWestern or its employees. The indemnifications obligations herein survive the expiration or termination of this Agreement. This Agreement shall inure and be binding upon the successors and assigns of the parties hereto. If any portion of this Agreement is held to be void or unenforceable, the balance will continue to be effective. This Agreement may be executed in counterparts, which together constitute one instrument. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. “City” “NorthWestern” City of Bozeman NorthWestern Corporation d/b/a NorthWestern Energy By By Name Name Title Title 23 EXHIBIT A – POWER POLE LOCATION Power pole location Guy wire to be removed Approximate location of proposed trail and bridge to E. Gallatin River 24