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HomeMy WebLinkAbout01-08-18 City Commission Packet Materials - C13. MOU with BSD7 for 2017 2nd High School Infrastructure FinancingPage 1 of 2 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Assistant City Manager SUBJECT: Memorandum of Understanding (MOU) with School District 7 (District) Regarding Financing of Infrastructure Related to the Second High School. MEETING DATE: January 8, 2018 AGENDA ITEM TYPE: Consent RECOMMENDATION: Authorize the Mayor to sign the MOU with School District 7 detailing the terms and conditions for certain public infrastructure required for the construction of the second Bozeman High School. RECOMMENDED MOTION: I move to authorize the Mayor to sign the MOU with the District for financing the public infrastructure related to the second Bozeman High School. BACKGROUND: The City has been working with the District to annex property for the construction of the second high school. The annexation agreement, as approved by the City Commission on November 13, 2017, requires certain public infrastructure be constructed by the District and certain public infrastructure be constructed by the City. Based on the District’s time frames for construction and occupancy of the second High School, it is most efficient, economical, and in the public’s best interest, for the District to construct the street infrastructure. The capital improvement plans adopted by the Commission in December included the scheduling of numerous street improvements and the amounts attributable to the Street Impact Fee and Arterial & Collector District Fund. This MOU is meant to generally describe how the District and City will work together, ultimately signing a binding Construction and Payment Agreement sometime this spring. We feel that it is an important step to memorialize these general concepts so that the District can proceed with project designs and bidding. Once bidding has taken place, we can enter into the Construction and Payment Agreement. UNRESOLVED ISSUES: None ALTERNATIVES: As identified by the Commission. FISCAL EFFECTS: This MOU is non-binding, but spells out the general ideas that will be incorporated into a future Construction and Payment Agreement with the District. 206 Page 2 of 2 The MOU describes payment shares, amounts and timing that is based on our most recently adopted Capital Improvement Plan and the preliminary work of project engineers. The City’s contributions will be funded through Street Impact Fees and the Arterial and Collector District, and will be budgeted and occur in Fiscal Year 2020. Attachments: Exhibit A: MOU Report compiled on: 12-18-17 207 MEMORANDUM OF UNDERSTANDING REGARDING FINANCING OF PUBLIC INFRASTRUCTURE RELATED TO THE SECOND BOZEMAN HIGH SCHOOL BOZEMAN SCHOOL DISTRICT 7 . CITY OF BOZEMAN THIS MEMORANDUM OF UNDERSTANDING (MOU) 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 l2l N. Rouse Ave., Bozeman, Montana,5977l (hereinafter referred to as "City"). Collectively, the City and District are referred to as the "Parties." WHEREAS, the District intends to construct a new high school on property located west of Flanders Mill Road, north of Meadowlark Elementary School, east of Cottonwood Road, and south of Oak Sffeet; and WHEREAS, prior to occupancy of the new high school, the District must complete certain public infrastructure which the City also desires to have completed to ensure adequate iransportation and other public infrastructure exists in the vicinity of the second high school and Bozernan Sports Park prior to occupancy of the second high school and also to ensure development of the r""ond high school is in compliance with the City's adopted transportation plan, its growth policy and capital improvement plans; and WHEREAS, the District and the City understand that their cooperation in the development of public infrastructure is in the public interest; and WHEREAS, the District and City desire in conjunction with a final decision on site plan approval for the high school and prior to the commencement of construction of any off-site infrastructure to enter into a binding interlocal agreement that will provide the rights and responsibilities and the duties and obligations of the Parties regarding the City's financial participation in the District's construction of infrastructure necessary to serve the second high school; and WHEREAS, the District and the City desire to enter into this MOU to establish the basic principles for which a subsequent interlocal agreement will be created. NOW, THEREFORE, the District and the City understand: ANCI PATION Th" PartLr d*ire to cooperate in the costs of designing and constructing certain public infrastructure related to the second Bozeman high school. The Parties understand this cooperation will require the District to pay the costs of the design and construction of certain public infrastructure with the City reimbursing the t. p.1 of4 208 ) District a percentage of the District's costs. The City's reimbursement to the District for the City's portion of the District's costs will be based on how much of each component of infrastructure is considered "non-local share." The Parties intend the District pay for all infrastructure that is considered the District's "local share" related to the construction of the second high school and for the City to pay the costs of infrastructure that is non-local share for certain infrastructure improvements and the City's local share on Oak Street related to the Sports Park. The chart below provides an understanding at this time of the percent of financial responsibility for the District and City for the estimated costs of each component of infrastructure. It is anticipated the City's payments to the District will occur in Fiscal Y ear 2020 (beginning July I ,2019.) Such payments and their timing will be finalized in the forthcoming interlocal agreement for construction. Thc Patltcs urtclcr-statttl that tircrc rs thc potcntial tur actual costs to exccccl cstllllatcs: excce(ling Irtlfcct c()st cstilnatc\ lnu_\ r'ertulrc the pallies t() reach agrecmcnt tln hou thosc adclitronal costs are to bc funded. . The parties intend the purpose of a future Interlocal Agreement will be to establish the specific legal rights and responsibilities and the duties and obligations of the parties regarding the City's payment of costs identified in Section l, above. The interlocal agreement must detail the City's and District's share of the District's costs, the timing of the City's payment to the District, and other terms and conditions necessary for the City's payment including compliance with public procurement requirements. REPRESENTATIVES. a. City's Representative: The City's Representative for the purpose of this MOU shall be Assistant Bozeman City Manager Chuck Winn or such other individual 3. Project Entitv Share Estimate Cottonwood Road (Oak to Durtson) School District 96% s1,860,000 City 4% 85.000 Oak Street School Dishict 33% 433.000 City - Sports Park 33% 433.000 City- Impact Fees 34o/o 434.000 Roundabout at Oak St. and Cottonwood Road School District 0o/o City- Impact Fees 80% 2,192,000 City- Arterial & Collector District 20% 548.000 Estimated Total Costs s5.985.000 p.2 of 4 209 4. as Mr. Winn shall designate in writing. Whenever approval or authorization from or communication or submission to City is required by this MOU, 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 other designated City personnel or agents as authorized by the City's Representative 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 Steve Johnson or such other individual as the Mr. Johnson shall designate in writing. Whenever direction to or communication with the District is required by this MOU, 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. NON-BINDING. The parties intend this MOU to be non-binding. **** End of MOU except for signatures {€{<{<* CITY OF BOZEMAN By: Carson Taylor, Mayor ATTEST: BOARD OF TRUSTEES p.3 of 4 210 Robin Crough, City Clerk p.4 of 4 211