HomeMy WebLinkAbout07-11-16 CC Mtg - C3. Addend. 1 for Sports Park Foundation
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Carolyn Poissant – Manager of Trails, Open Space, and Park Development
Mitch Overton – Director of Parks and Recreation
SUBJECT: Addendum No. 1 to Agreement between the City of Bozeman and the Bozeman Sports Park Foundation, Inc. for the Bozeman Sports Park Project
MEETING DATE: July 11, 2016
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Approve Addendum No. 1 to the Agreement between the City of Bozeman and the Bozeman Sports Parks Foundation, Inc. (“Foundation”) for the Bozeman Sports
Park (“Park Project”) and authorize the City Manager to sign the Addendum.
BACKGROUND: Resolution No. 4521 approved the allocation of Trails, Open Space and Parks
(TOP) bond funding in an amount not to exceed $7,500,000 for the acquisition of park land and
development of the Bozeman Sports Park and called for the City to enter into a binding agreement with the Foundation for the required $976,100 cash and / or in-kind match for the TOP project.
The Agreement with the Foundation was approved by the Commission on February 23, 2015, and
called for the Foundation to make its financial contribution available to the City by June 30, 2016.
The Foundation has conducted a donor feasibility analysis and has made significant progress in
identifying potential major contributors to the Park Project. The Foundation has reported that such contributors are interested in having as many fields as possible constructed to facilitate holding
tournaments, which would promote greater economic benefit to the community. Negotiations are
still underway with several donors. To date, the Foundation has contributed in-kind services for
conceptual design and a topographic survey. The Foundation has also notified the City of a verbal
commitment to contribute up to $125,000 in cash and in-kind donations by the Lehrkind family for a vending facility. However, the Foundation informed the City it will not meet the deadline of
June 30, 2016 to complete its required contribution.
The proposed Addendum to the Agreement will extend the deadline for the Foundation’s $976,100
contribution by one year, to June 30, 2017. The bid documents and construction contract will be
structured so that phasing of improvements may occur (via add-alternates). All design and engineering and construction contracting will be managed by the City.
City engineering, community development, and parks department staff will continue to hold
project status meetings to ensure that road and infrastructure design and construction in the rights-
of-way surrounding the park, as well as improvements on adjacent properties being developed, are well coordinated.
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UNRESOLVED ISSUES: Extension of the Agreement deadline requires the inclusion of bid
add-alternates, which has resulted in higher design fees and could necessitate amendment(s) to the
General Contractor’s Not to Exceed Contract in order to award sitework as funds become
available.
ALTERNATIVES: As directed by Commission.
FISCAL EFFECTS: The Addendum extends by one year the deadline for the Foundation to
make its $976,100 financial contribution available for disbursement to the City.
Attachments:
1. Addendum No. 1 to Agreement between the City of Bozeman and the Bozeman Sports Parks Foundation, Inc. for the Bozeman Sports Park
2. Agreement between the City of Bozeman and the Bozeman Sports Parks Foundation, Inc.
for the Bozeman Sports Park dated February 23, 2015
Report compiled on: June 30, 2016
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Addendum No.1 to Agreement with Bozeman Sports Park Foundation
July 1, 2016 – June 30, 2017 Page 1 of 2
ADDENDUM NO. 1 TO AGREEMENT
BETWEEN CITY OF BOZEMAN AND BOZEMAN SPORTS PARKS FOUNDATION,
INC. FOR THE BOZEMAN SPORTS PARK
THIS ADDENDUM TO THE AGREEMENT BETWEEN CITY OF BOZEMAN AND THE
BOZEMAN SPORTS PARKS FOUNDATION, INC. FOR THE BOZEMAN SPORTS
PARK (“Agreement”) is made and entered into this _____ day of ____________, 2016, by and
between the CITY OF BOZEMAN, MONTANA, a self-governing municipal corporation
organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse
Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771,
hereinafter referred to as “City,” and the Bozeman Sports Parks Foundation, a Montana nonprofit
corporation, with a mailing address of PO Box 1126, Bozeman, MT 59771, hereinafter referred to
as “Foundation” and together with the City, the “Parties.”
WHEREAS, the City and the Foundation entered into the Agreement effective February 23, 2015,
whereby the Foundation agreed to make the Foundation Contribution of $976,100 available for
disbursement to the City no later than June 30, 2016; and
WHEREAS, the Foundation has made significant progress toward meeting its obligation to make
the Foundation Contribution but requires more time to fully meet this obligation; and
WHEREAS the City desires to grant the Foundation more time to make the Foundation
Contribution;
NOW, THEREFORE in consideration of the mutual covenants and agreements herein contained,
the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as
follows:
1. Extension of Time for Performance. Section 6(c) of the Agreement is replaced in its
entirety with the following:
The Parties expect that at least 50% of the Foundation Contribution will be available
for disbursement to the City no later than December 31, 2016, with the remainder
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Addendum No.1 to Agreement with Bozeman Sports Park Foundation
July 1, 2016 – June 30, 2017 Page 2 of 2
of the Foundation Contribution available no later than June 30, 2017. The City may
proceed with awarding the construction contract prior to that date based on the
amount of funds available at the time of award. If the Foundation has not raised and
made available the full Foundation Contribution by or before June 30, 2017, the
City Commission may grant an extension by amendment to this Agreement, or may
terminate the Agreement upon thirty (30) days notice to the Foundation. The
Foundation will use reasonable, good faith efforts to raise private funds in an
amount sufficient to at least equal the Foundation Contribution, and will provide
regular updates on the progress of the fundraising efforts to the City.
2. Representatives. For the purposes of implementing the Agreement as amended by this
Addendum 1, the Foundation’s representative shall be the Chair of the Board of Directors.
The City’s representative shall be the Director of Parks and Recreation or his/her designee.
3. Agreement still valid. All remaining terms and provisions of the Agreement remain valid.
**** END OF AGREEMENT EXCEPT FOR SIGNATURES ****
IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and
year first above written.
CITY OF BOZEMAN, MONTANA BOZEMAN SPORTS PARK FOUNDATION
By:_______________________________ By: ______________________________________
Chris Kukulski, City Manager Print Name: ______________________________
Title: ____________________________________
APPROVED AS TO FORM
By_______________________________
Greg Sullivan
City Attorney
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