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Home My WebLink About03-20-17 City Commission Packet Materials - A5. Interlocal with BSD7 for Flanders Mill Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Chris Kukulski, City Manager SUBJECT: Approve Interlocal Agreement with Bozeman School District 7 for Repayment of Costs for Construction of Flanders Mill Road. MEETING DATE: March 20, 2017 AGENDA ITEM TYPE: Action RECOMMENDATION: Approve the Interlocal Agreement between Bozeman School District 7 and the City of Bozeman to construct a portion of Flanders Mill Road. SUGGESTED MOTION: I move to approve the attached Interlocal Agreement between Bozeman School District 7 and the City of Bozeman (City). BACKGROUND: The attached Interlocal Agreement between Bozeman School District 7 (SD7) and the City of Bozeman is to construct a portion of Flanders Mill Road south of Oak Street adjacent to SD7 property as shown on Exhibit A. SD7 portion of the project is $304,771.08 as seen on Exhibit B. If the voters approve SD7s bond during the spring of 2017, SD7 will pay the City within four months of the bond election. If voters do not approve the SD7 bond, SD7 will repay the city in three equal payments April 1, 2018, April1, 2019 and April 1, 2020. If the voters do not approve the bond, the City will use our Special Improvement District Revolving Loan Fund to finance this share of the project without charging SD7 interest. UNRESOLVED ISSUES: None. ALTERNATIVES: As suggested by the City Commission FISCAL EFFECTS: SD7 portion of the project is $304,771.08 as seen on Exhibit B. If necessary, the City will use its Special Improvement District Revolving Loan Fund to finance this portion of the project over three years. Attachments: Interlocal Agreement SD7 and City Exhibit A Exhibit B 3/13/2017 380 p. 1 of 4 After recording return to: Bozeman City Clerk PO Box 1230 Bozeman, MT 59771-1230 INTERLOCAL AGREEMENT BOZEMAN SCHOOL DISTRICT 7 - CITY OF BOZEMAN THIS AGREEMENT is made and entered into this ___ day of __________, 2017, between Bozeman School District 7, a political subdivision of the State of Montana, with principal offices at 404 West Main Street, Bozeman, Montana, 59715 (hereinafter referred to as “District”), the City of Bozeman, a self-governing municipal corporation of the State of Montana, with principal offices at 121 N. Rouse Ave., Bozeman, Montana, 59771 (hereinafter referred to as “City”). WHEREAS, the City and a local property owner intend to complete improvements to certain public infrastructure within and adjacent to Flanders Mill Road and which is adjacent to property owned by the District; and WHEREAS, the construction of said improvements is in conjunction with a larger road construction project which includes portions of Oak Street, Flanders Mill Road, and Ferguson Avenue; and WHEREAS, the District recognizes that once it’s property is annexed to the City and developed it will be responsible for its local share of improvements to Flanders Mill Road along the entire frontage of property it owns on Flanders Mill Road and which is the location for a proposed new high school; and WHEREAS, the District recognizes that making such improvements in conjunction with adjacent landowner will provide for safer routes to existing schools; and WHEREAS, the District desires to pay for its share of these improvements and also desires to defer payment of its share of the costs associated with such improvements to Flanders Mill Road adjacent to the District’s property as described herein; and WHEREAS, the District and the City intend to enter into this Agreement to provide the terms and conditions whereby the City will pay up front the costs associated with the District’s share of improvements to Flanders Mill Road at the time the improvements are constructed and the District agrees to repay the City for the District’s share of the improvements as described herein; and WHEREAS, the District and the City have the authority to enter into this agreement pursuant to Sections 7-11-101 through 7-11-108, MCA. 381 p. 2 of 4 NOW, THEREFORE, the District and the City agree as follows: 1. PURPOSE OF INTERLOCAL AGREEMENT. The purpose of this Interlocal Agreement is to establish the rights and duties of the City and the District regarding improvements to public infrastructure adjacent to and within a portion of Flanders Mill Road, a local street, and which is adjacent to property owned by the District which road segment is shown on Exhibit A and which improvements are listed on Exhibit B (the “Improvements”), whereby the City will pay the costs thereof at the time the Improvements are constructed, and the District will reimburse the City for the District’s share of the cost of the Improvements as described in this Agreement. 2. DURATION. This Agreement will terminate upon final repayment to the City of the District’s share of the cost of the Improvements, unless earlier terminated by mutual agreement of the Parties in writing. 3. COST OF IMPROVEMENTS. The total estimated cost of the Improvements, including costs of design, construction, construction administration, oversight and inspection, material testing, as-built preparation and project close-out is $609,542.16 including 10% contingency ($60,954.22) (“Cost of Improvements”, The District recognizes, if all of the contingency is used, Flanders Mill LLC is responsible for fifty percent (50%) of the total cost of the Improvements, or $304,771.08 (“Flanders Mill Share”) and the District is responsible for fifty percent (50%) of the total cost of the Improvements, or $304,771.08 (“District Share”). Once the project is complete the actual cost will be calculated with a maximum District responsibility of $304,771.08. 4. PAYMENT. The City agrees to cause the Improvements to be completed and to pay the District Share subject to repayment by the District. The District agrees that on or before the earlier of (i) four (4) months after approval by District voters of a bond election to finance facilities on the District’s property or (ii) three (3) years from the Effective Date of this Agreement, whichever is earlier, it will fully pay the City for the District Share which will have been constructed and paid by the City. In the event that option (ii) is used the District will make 3 equal annual payments to the City on April 1, 2018, April 1, 2019 and April 1, 2020. 5. REPRESENTATIVES. a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be the Bozeman City Manager or such other individual as City shall designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission shall be directed to the City’s Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, the District may direct its communication or submission to 382 p. 3 of 4 other designated City personnel or agents as authorized by the City’s Director of Public Works and may receive approvals or authorization from such persons. b. District’s Representative: The District’s Representative for the purpose of this Agreement shall be the District’s Deputy Superintendent of Operations or such other individual as the District shall designate in writing. Whenever direction to or communication with the District is required by this Agreement, such direction or communication shall be directed to the District’s Representative; provided, however, that in exigent circumstances when the District’s Representative is not available, City may direct its direction or communication to other designated District personnel or agents. 6. SEPARATE LEGAL ENTITY/ADMINISTRATION. There shall be no separate legal entity created as a consequence of this Agreement. Administration of this Agreement shall be the responsibility of the Chair of the District Board of Trustees and/or designee and the Bozeman City Manager and/or designee. 7. NON-WAIVER. Waiver by either party of strict performance or any provision of this Agreement shall not be a waiver of or prejudice the party's rights to require strict performance of the same provision in the future or of any other provisions. 8. TIME OF ESSENCE. It is mutually agreed that time is of the essence in the performance of all covenants and conditions to be kept and performed under the terms of this Agreement. 9. HEADINGS. The section headings contained herein are for convenience and reference and are not intended to define or limit the scope of any provision of this Agreement. 10. NOTICES. All notices required under this Agreement shall be deemed properly served if delivered in writing, delivered in person, or sent by certified or registered mail to the last address previously furnished by the parties hereto. Until hereafter changed by the parties by notice in writing, notices shall be sent to the Superintendent, Bozeman School District #7, 404 West Main St., Bozeman, Montana 59715, and to the City Manager, City of Bozeman, PO Box 1230, Bozeman, Montana 59771-1230. The date of mailing shall be deemed the date of such notice and service thereof. 11. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement between the parties. No alterations, modifications, or additions to this Agreement shall be binding unless reduced to writing and signed by the parties to be charged herewith. No covenant, term or addition to this Agreement shall be deemed waived by either party unless such waiver shall be reduced to writing and signed by the parties. 383 p. 4 of 4 12. AMENDMENTS. The terms and conditions of this Agreement may not be modified or amended except by an instrument in writing executed by each of the parties hereto. No oral modification shall be enforceable. 13. SEVERABILITY. The provisions of this Agreement shall be deemed independent and severable, and the invalidity, partial invalidity, or unenforceability of any one provision or portion thereof shall not affect the validity or enforceability of any other provision herein. 14. EFFECTIVE DATE. This Agreement shall be effective after approval by the respective governing bodies. It is the intent that said Agreement shall be effective on the date stated in the first paragraph of this Agreement. 15. RECORDATION. This Agreement shall be filed with the Gallatin County Clerk and Recorder and Montana Secretary of State as required by Section 7-11-107, MCA. BOARD OF TRUSTEES BOZEMAN SCHOOL DISTRICT 7 By: _______________________________ Andrew Willet, Chairman ATTEST: ____________________________________ Michael Waterman, District Clerk CITY OF BOZEMAN By: _______________________________ Carson Taylor, Mayor ATTEST: ____________________________________ Robin Crough, City Clerk 384 385 EXHIBIT B Interlocal Agreement ‐ Bozeman School District 7 FLANDERS MILL ‐ OAK STREET TO SUNSTONE STREET Construction Costs w/ 10% Contingency Water 66,759.00$ Sewer 1,650.00$ Storm Sewer 17,384.40$ Road Improvements 373,827.30$ Striping & Signage 19,206.00$ Street Lighting 18,725.00$ Miscellaneous Costs 111,990.45$ TOTAL 609,542.15$ Flanders Mill Subdivision Share (1/2 of improvements)304,771.08$ Bozeman School District Share (1/2 of improvements)304,771.08$ 386