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HomeMy WebLinkAbout18- Agreement - Bozeman Sports Parks Foundation, Inc. - Management, Operation, and Use of the Bozeman Sports Parks Agreement between City of Bozeman and the Bozeman Sports Parks Foundation, Inc. for Management, Operation, and Use of the Bozeman Sports Parks This Agreement between the City of Bozeman and the Bozeman Sports Parks Foundation, Inc. for the management,operation and use of the Bozeman Sports Parks(the"Agreement")is entered into this `day of )u,v� ,2018,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, Inc., a Montana 501(c)(3) 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." The Foundation and the City enter into this Agreement in consideration of the mutual covenants and agreements herein contained,the receipt and sufficiency whereof being hereby acknowledged. As such,the Parties agree as follows: RECITALS The following recitals form the basis for the Parties' intentions and as such are material to this Agreement. WHEREAS, on November 6, 2012 the voters of the City approved the creation of a bond fund for the acquisition, construction and maintenance of new parks, trails, open spaces, and multi-use recreation fields and facilities (the"TOP Bond Fund"); and WHEREAS, the Bozeman City Commission approved the conceptual plan and authorized up to $7,500,000 (seven million five hundred thousand dollars) of funding from the TOP Bond Fund to develop the Bozeman Sports Park with Resolution No. 4521 on April 7, 2014, which also authorized the City to enter into contracts with other persons or entities for development or management of any aspect of developing the Sports Park Project; and WHEREAS, the Foundation was incorporated on October 20, 2014 as a Montana nonprofit corporation for the purposes of securing additional private and philanthropic support for the development of the Bozeman Sports Park and for the long-term management of the Sports Parks; and WHEREAS, the City and the Foundation entered into an agreement dated February 23, 2015 ("Development Agreement") to establish the rights and responsibilities of the Parties related to funding, design, development, and construction of Phase 1 of the Bozeman Sports Park and to provide a framework for the Parties to collaborate on planning and developing future phases of the Bozeman Sports Park; and Operating Agreement with the Bozeman Sports Parks Foundation,Inc.for the Bozeman Sports Parks Page 1 of 15 WHEREAS, the City desires to permit the Foundation to manage, operate and use the Bozeman Sports Park and Bronken Field (collectively, the "Sports Parks") pursuant to the terms of this Agreement, and the Foundation desires to accept responsibility for such management and operation and to use the Sports Parks for the purposes described herein; and WHEREAS, on February 12,2018 the Bozeman City Commission adopted a motion to direct the City Manager to continue to work with the Foundation to develop agreement(s)that authorize the Foundation to collect user fees and operate the Sports Parks through a user group or management agreement for Commission approval at a future date, and to require the Foundation to pay an amount equal to the City's debt payments on a loan of up to $1,700,000 to construct sports fields and related infrastructure, including purchase of two turf fields; and WHEREAS, the Parties represent that each has the power and authority to enter into this Agreement, and the experience and ability to fulfill its obligations under this Agreement. Section 1. —Purpose; term and effective date; termination; extension. 1.1 Purpose. The purpose of this Agreement is to establish the rights and obligations of the Parties to each other regarding the management, operation, use, and maintenance of the Sports Parks with legal descriptions attached hereto as Exhibit A including, but not limited to, scheduling field and facilities use, managing vendor relationships, collecting and managing user fees, and maintenance and repair. 1.2 Incorporation of Debt Repayment Agreement. The terms of the Debt Repayment Agreement, attached hereto as Exhibit B,are hereby incorporated by this reference and made a part of this Agreement. 1.3 Term/Effective Date/Renewal. This Agreement is effective upon the date of its execution("Effective Date") and will terminate five (5) years after the Effective Date, unless earlier terminated as provided herein. This Agreement may be renewed for an additional five (5) year term by written agreement of the Parties, subject to renegotiation of the terms and conditions herein. Notice of nonrenewal shall be provided to the other party no less than 180 days prior to the termination of this Agreement. 1.4 Termination. (a) For Convenience. The City may terminate this Agreement for any reason on 180 days' written notice to the Foundation. After receipt of notice of termination for the City's convenience, the Foundation will make every reasonable effort to refrain from incurring additional expenses or costs under this Agreement, and will not enter into any additional orders or contracts without the express written approval of the City. (b) For Fault. If either Party fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, Operating Agreement with the Bozeman Sports Parks Foundation,Inc.for the Bozeman Sports Parks Page 2 of 15 and has not cured such breach within thirty (30) days of written notice of the breach, the non-breaching Party may, by written notice, terminate this Agreement effective immediately. (c) Termination of this Agreement for any reason will also serve to terminate the Debt Repayment Agreement attached hereto as Exhibit B as of the effective date of termination of this Agreement. (d) In the event of a termination pursuant to this Section 1.4, the Foundation will be entitled to a refund of any pre-paid use fees,prorated to the effective date of termination. (e) The Foundation will pay to the City any revenues or other fees received by the Foundation pursuant to this Agreement after the effective date of termination within fifteen(15) days of receipt of such revenues or fees. (f) Any termination provided for by this section shall be in addition to any other remedies to which the non-breaching Party may be entitled under the law or at equity. (g) Neither Party shall be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost revenues damages of any nature arising, or claimed to have arisen, as a result of the termination. 1.5 Surrender of Possession; Removal of Personal Property. The Foundation agrees that upon termination of this Agreement it will surrender possession of all Sports Parks facilities and permanent fixtures installed by the Foundation in good, clean condition except for ordinary wear and tear, and will, within thirty (30) days after termination, remove any personal property, trade fixtures, equipment or other temporary installations. 1.6 Extensions. This Agreement may,upon mutual agreement of the Parties in writing,be extended to include operation of future phases of development beyond Phase I. Section 2.—Relationship of Parties; Representatives. 2.1 No Partnership or Agency. Neither Party shall be considered a partner or agent of the other Party, and this Agreement does not create a partnership or principal-agent relationship between the Parties. Neither Party shall have any right,power or authority to create any obligation, expressed or implied, on behalf of the other Party. The cooperative effort between the City and Foundation does not create a separate legal entity and neither the Foundation nor the City shall have the right to bind the other Party vis a vis any third party. Operating Agreement with the Bozeman Sports Parks Foundation,Inc.for the Bozeman Sports Parks Page 3 of 15 2.2 Representatives. (a) City: The City's Representative for the purpose of this Agreement shall be Mitch Overton(Parks and Recreation Director) 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 Mitch Overton as 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 Foundation may direct its communication or submission to other designated City personnel or agents as listed above and may receive approvals or authorization from such persons. (b) Foundation: The Foundation's Representative for the purpose of this Agreement shall be Tony Rich (Board Chair) or such other individual as the Foundation shall designate in writing. Whenever direction to or communication with the Foundation is required by this Agreement, such direction or communication shall be directed to Foundation's Representative; provided, however, that in exigent circumstances when Foundation's Representative is not available, City may direct its direction or communication to other designated Foundation's personnel or agents. Section 3.— Ownership; Improvements. 3.1 Ownership; Prohibition on Liens. The Sports Parks and all interests appurtenant thereto including water rights are owned by the City for the benefit of the public. The Foundation hereby acknowledges this Agreement grants a privilege and not an interest in the Sports Parks and the title of the City to the Sports Parks, and the Foundation agrees never to deny such title or claim, at any time, or claim any interest or estate of any kind or extent whatsoever in the Sports Parks by virtue of this Agreement or Foundation's use hereunder. The City may enter the Sports Parks at any time to assert its real property interest or for other purposes which do not unreasonably interfere with the activities of the Foundation authorized by this Agreement. Neither Foundation nor any contractor or subcontractor hired by or doing work on behalf of the Foundation shall have the right to file or place liens of any type or character upon the Sports Parks. 3.2 Improvements and Fixtures. (a) Foundation shall not place or install personal property, trade fixtures, equipment or other temporary installations in the Sports Parks without prior written consent from the City. Any such improvements and equipment installed or placed by the Foundation in the Sports Parks that can be removed without Operating Agreement with the Bozeman Sports Parks Foundation,Inc.for the Bozeman Sports Parks Page 4 of 15 damage to the Sports Parks facilities shall remain the property of the Foundation. (b) The Foundation will not make permanent improvements to or install permanent fixtures in the Sports Parks without prior written consent from the City. Any such permanent improvements must be constructed and/or installed to City standards and comply with all laws applicable to public projects, including procurement requirements, and the City must review and approve all contracts for permanent improvements. All such permanent improvements and fixtures are deemed to be part of the Sports Parks after completion of their construction and/or installation and will be the property of the City. Section 4.—Management, Operation, Scheduling and Use of Sports Parks. 4.1 Foundation's Responsibilities. The Foundation shall: (a) Have sole responsibility, in accordance with this Section 4, for scheduling use of any portion of the Sports Parks including,but not limited to, all full or partial athletic fields and concessions facilities. (b) Have the right, in accordance with Section 7 of this Agreement, to select, contract with, and coordinate vendors in support of events, games, practices, tournaments, and other activities at the Sports Parks. (c) Prepare playing surfaces for practices, games, and tournaments. On all turf areas, approved athletic field water based paint will be applied instead of chalk. 4.2 Scheduling User Groups. The Foundation will establish non-discriminatory criteria for scheduling use of the Sports Parks. Prior to scheduling user groups, such criteria must be approved in writing by the City. In scheduling the sports fields and other facilities at the Sports Parks, the Foundation will apply the standards for issuance of reservation permits described in § 26.02.060,BMC. 4.3 User Agreements. The Foundation will require user groups reserving fields or other Sports Parks facilities to enter into a written agreement with the Foundation that includes, at a minimum, the following requirements: (a) The general standards outlined in § 26.02.040.A, BMC. (b) A security deposit in an amount agreeable to the City. Any security deposit collected by the Foundation will not be returned to the user group until it has been verified that no material violations of the user group agreement or any City regulations have occurred. The City may apply the security deposit received by the Foundation from the user group to repair and/or replace turf, irrigation heads, fencing, or other Sports Parks amenities damaged through the user group's misuse. Operating Agreement with the Bozeman Sports Parks Foundation,Inc.for the Bozeman Sports Parks Page 5 of 15 (c) The user group agrees to maintain and leave all facilities in a sanitary and safe condition. Failure to do so will result in the user group paying all costs incurred by the City to return the premises to its original condition at a rate of$30 per hour. The City may apply the security deposit received by the Foundation from the user group toward such costs. (d) Tournaments, games and other events must be postponed in the event of wet, saturated turf. Excessive wear to the Sports Parks fields due to play on wet fields will be the responsibility of the user group. (e) Public drinking and open alcoholic beverages are prohibited in public parks and recreational facilities per § 4.04.030, BMC, unless a waiver has been granted pursuant to § 4.04.050, BMC. (f) The agreement must be assignable by the Foundation to the City upon termination of this Agreement. (g) Prospective liability waiver and release of the Foundation and City pursuant to § 27-1-753, MCA that states the known inherent risks of the sport or recreational opportunity, and contains the following statement in bold typeface: By signing this document you may be waiving your legal right to a jury trial to hold the provider legally responsible for any injuries or damages resulting from risks inherent in the sport or recreational opportunity or for any injuries or damages you may suffer due to the provider's ordinary negligence that are the result of the provider's failure to exercise reasonable care. (h) The user group will defend, indemnify, and hold harmless the Foundation and the City of Bozeman, its officers, agents, and employees against and from any and all actions, suits,judgments, claims, demands, costs, expenses (including attorney's fees) and liabilities of any character whatsoever, brought or asserted for property damage or for injuries to, or death of any person or persons or damages arising out of,resulting from or occurring in connection with the user agreement or the user group's occupancy or use of the Sports Parks. 4.4 Employee(s). The Foundation may hire one (1) or more employees if reasonably necessary to fulfill the Foundation's obligations under this Agreement, using revenues from the Sports Parks. No employee, agent, contractor, or subcontractor of the Foundation shall be deemed a City employee for any purpose, and the Foundation is solely responsible for the hiring, management, and firing of such employee. The Foundation shall pay all employment taxes of any kind or nature and make all appropriate employee withholdings for any employees hired by the Foundation to perform under this Agreement. Operating Agreement with the Bozeman Sports Parks Foundation,Inc.for the Bozeman Sports Parks Page 6 of 15 4.5 Compliance with City's Drought Management Plan. The Foundation acknowledges and understands the City is authorized to restrict or wholly prohibit the outdoor use of the water supply of the water service utility pursuant to § 40.02.1270, BMC and the City's adopted 2017 Drought Management Plan, and that the provisions of Chapter 40, Article 2, Division 4 are applicable to the Foundation. The Foundation warrants and represents it has familiarized itself with the water use restrictions of the BMC and agrees to comply with these restrictions. 4.6 Compliance with Alcohol Regulations. In accordance with § 4.04.030, BMC,public drinking and open alcoholic beverages are prohibited in public parks and recreational facilities. User groups seeking a waiver of this prohibition must apply directly to the City by paying the applicable fee and following the application procedure described in § 4.04.050, BMC. 4.7 Foundation Equipment Storage. The Foundation may store and maintain sports and/or maintenance equipment on site at the Sports Parks with the City's prior written consent. The Foundation will provide the City with a schedule of such equipment it intends to store on the Sports Parks property. Foundation equipment provided by the Foundation for use at the Sports Parks shall remain the property of the Foundation unless otherwise agreed in writing by the Parties. The Foundation is solely responsible for loss or damage of Foundation equipment stored at the Sports Parks,and shall release and hold harmless the City for any and all claims of loss of or damage to Foundation equipment. The Foundation shall maintain sufficient property insurance coverage to insure against such loss or damage in accordance with Section 8 of this Agreement. 4.8 Coordination with the City on Scheduling and Events. At least quarterly, the Foundation will provide to the City a comprehensive report showing the anticipated use of the Sports Parks for the upcoming quarter. The Foundation shall further provide the City with advance notice of any significant public outreach or publicity relating to the Sports Parks and provide the City an opportunity for participation. It is not anticipated that the City will be involved in the planning or execution of such events, nor is it anticipated that a representative of the City need attend any or all such events. 4.9 City's Use of Sports Parks. The City may reserve sports fields and facilities on an equal basis as other users of the fields and facilities. The City shall be subject to the same user fees set by the Foundation for use of the fields and facilities. Notwithstanding the foregoing,the City may, at its option,reserve the Sports Parks for up to five (5) days per calendar year on dates to be agreed in advance by both Parties. Section 5.—Repair and Maintenance; Utilities. 5.1 City's Responsibilities. The City shall, in accordance with Parks Department procedures for all City-owned parks: Operating Agreement with the Bozeman Sports Parks Foundation,Inc.for the Bozeman Sports Parks Page 7 of 15 (a) Maintain and plow all public parking lots and parking spaces adjacent to the Sports Parks, as well as public access to the Sports Parks. (b) Maintain and plow all pedestrian pathways in the Sports Parks. (c) Set and execute a regular maintenance schedule for all Sports Parks athletic fields, whether synthetic or natural, including but not limited to mowing, seeding, sodding and repairing all athletic field surfaces and sub-surfaces. (d) Perform all routine maintenance of the Sports Parks and park facilities, including painting, electrical, plumbing HVAC, and electrical and other necessary repairs. (e) Maintain and repair all Sports Parks structures,including public restrooms, and shall keep public restrooms stocked and cleaned. 5.2 Utilities. The City shall pay all charges for water, sewer, gas, and electricity used by the Foundation at the Sports Parks during the term of this Agreement unless otherwise expressly agreed in writing by the Parties. 5.3 Irrigation. The City shall be solely responsible for irrigation of the Sports Parks. City shall retain all decision-making authority for irrigation, including but not limited to coordination with other water users,water commissioners, and ditch riders. Section 6.—Use Fee; Financial Auditing; Reporting 6.1 Annual Use Fee Payment to the City. For the term of this Agreement,the Foundation shall make the following annual payments per full-size athletic field in the Sports Parks to the City to provide for long-term maintenance and repair of the Sports Parks: Years 1-5: $7,000 (sod); $3,000 (synthetic turf) For purposes of this Agreement, "full-size athletic field" is defined as a field that measures a minimum of 100 feet by 130 feet and is of the quality necessary to support safe play as of June 1st of each year during the term of this Agreement. The first payment under this Agreement will be due on or before July 1, 2019 and subsequent annual payments will be due on every anniversary of this date. The City will deposit the annual payment in a special fund for repairs and maintenance of the Sports Parks as outlined in Section 5.1 of this Agreement. 6.2 Financial Auditing. The Foundation will maintain financial records and must allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that monies collected and expended by the Foundation pursuant to this Agreement were used in compliance with this Agreement and all applicable provisions of federal, state, and local law. Foundation agrees to develop and/or provide documentation as requested by the City demonstrating Operating Agreement with the Bozeman Sports Parks Foundation,hie.for the Bozeman Sports Parks Page 8 of 15 Foundation's compliance with the requirements of this.Agreement. The Foundation will retain such records for the time specified in the most recent Local Government Record Retention Schedule as adopted by the Montana Secretary of State, or permission to destroy them is granted by the City. 6.3 Annual Financial Reports. The Foundation will provide to the City Manager, by September 30th of each year this Agreement is effective, a report showing all monies collected and expended by the Foundation in the prior fiscal year (July 1-June 30), showing the source and amount of revenues and describing such expenditures to the satisfaction of the City. 6.4 Public Meetings and Access to Public Records (a) Meetings of the Foundation that pertain to Sports Parks revenues or expenditures pursuant to this Agreement are subject to the open meeting requirements of Montana law, including those set forth in Title 7, Chapter 1, Part 41, MCA and Title 2, Chapter 3, MCA. (b) The Foundation will provide agendas for meetings that pertain the receipt or expenditure of public funds to the City Clerk's office no later than 72 working hours prior to meeting for notice on the City's official posting board and any other sites deemed reasonable by the Clerk's office. In addition, meeting minutes will be kept by the Foundation and provided to the City Clerk's office no later than 45 days after the meeting. These minutes shall be posted and made available to the public by the City Clerk's office except for those minutes taken during a closed meeting in accordance with § 7-1-4144, MCA. Minutes taken during a closed meeting shall also be provided to the City Clerk's office but shall be handled in accordance with the City Clerk's regular executive session protocol and kept private in a secured cabinet. Meetings subject to the open meeting requirements of Montana law shall be held in the City Commission room at City Hall, 121 N. Rouse. Room scheduling for open meetings shall be coordinated with the City Clerk. (c) In accordance with § 7-1-4144, MCA and subject to any applicable legal obligation to protect and preserve individual confidential or private information, upon reasonable request and at reasonable times during normal business hours,the Foundation shall make such documents and records available for inspection and copying by members of the public. The Foundation may charge for such copying in accordance with the policies of the City, which the Foundation hereby adopts for such purposes. (d) To determine whether a meeting or part of a meeting may be closed to the public and to determine whether information contained in the Foundation documents is protected by law from disclosure,the Foundation may seek a Operating Agreement with the Bozeman Sports Parks Foundation,Inc.for the Bozeman Sports Parks Page 9 of 15 determination of the City Attorney at no cost to the Foundation. Such request and determination shall not create an attorney-client relationship between the Foundation and the City. Section 7.—Concessions; Revenue; Vendors; Advertising. 7.1 Management of concessions. The Foundation has the right to manage concessions sales at the Sports Parks. 7.2 Vendor Selection. The Foundation has the right to contract with third parties for concession and vending services at Sports Parks events. In selecting vendors, as of the date of this Agreement the Foundation agrees to comply with all applicable state laws and City policies for procurement, including advertising for proposals and nondiscrimination. Nothing herein prohibits the Foundation from entering into non- exclusive agreements with concession vendors donating gifts in exchange for providing vending services if such agreements are made pursuant to the Foundation's donor recognition policy. In addition, nothing herein prohibits the City from entering into contracts for vending services at the Sports Parks. In such a case, revenue from City vending contracts will be used at the Sports Parks. 7.3 Collection of Fees. The Foundation shall collect and manage all user fees, vending proceeds, and any other revenue related to the use of the Sports Parks athletic fields, facilities, or other amenities ("Revenues"). 7.4 Use of Revenues. All Revenues will be first applied toward the Foundation's payment obligations pursuant to the Debt Repayment Agreement attached hereto as Exhibit B, and then to the annual payments described in Section 6.1. Remaining Revenues must be used solely for the operation, maintenance or development of the Sports Parks as described in this Agreement. The Foundation agrees to establish a turf replacement account to be funded with a sufficient portion of revenues collected so that turf fields installed at the Sports Parks may be replaced at the end of their 10-year life. 7.5 Concession Operations. The Foundation will conduct or cause to be conducted all concessions activities in a clean, professional, and businesslike manner and agrees to comply with all applicable local, state, and federal laws and regulations. 7.6 Mobile Vendors. The Foundation may enter into agreements with mobile vendors to operate on Sports Parks property during tournaments and other events. The Foundation may not prohibit a mobile vendor from locating on public rights of way if such location is permitted pursuant to the mobile vendor's City license and by Chapter 28, Article 3 of the BMC. Operating Agreement with the Bozeman Sports Parks Foundation,Inc.for the Bozeman Sports Parks Page 10 of 15 Section 8.—Indemnity; Insurance. 8.1 Indemnity and Release. (a) The Foundation agrees to indemnify, defend and hold the City harmless from and against any and all liability to any third party for or from loss, damage or injury to persons or property in any manner arising out of, or incident to, negligent acts, errors, omissions, or willful misconduct by the Foundation or its officers, employees, vendors, subcontractors, or agents in the performance of this Agreement. (b) Unless otherwise agreed to in writing, both the City and Foundation shall be solely responsible for any contracts they enter into or other obligations or liabilities incurred by such party in connection with their respective roles under this Agreement and the Sports Parks. (c) The indemnification requirements of this Section shall survive the termination of this Agreement. (d) The Foundation's indemnification obligations under this Section shall be without regard to and without any right to contribution from any insurance maintained by the City. 8.2 Insurance. In addition to and independent from the Foundation's indemnification obligations, the Foundation will secure and maintain insurance coverage as described in this Section 8.2 through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Foundation in Section 8.1. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Foundation under this Agreement. The insurance and required endorsements must be in a form acceptable to City and shall include no less than a thirty (30) day notice of cancellation or non-renewal. The City must approve all insurance coverage and endorsements prior to the Foundation's performance under this Agreement. The Foundation shall notify City within two (2) business days of the Foundation's receipt of notice that any required insurance coverage will be terminated or the Foundation's decision to terminate any required insurance coverage for any reason. (a) Commercial General Liability. The Foundation, each vendor providing services and any other organization using the Sports Parks facilities must carry Commercial General Liability Insurance naming the City as an Additional Insured on a primary and non-contributory basis in the amount of$1,000,000 per claim, $2,000,000 per occurrence. The Foundation, each vendor providing services and any other organization using the Sports Parks facilities must also obtain a separate liquor liability policy or endorsement in the amount of $1,000,000 per claim, $2,000,000 per occurrence naming the city as an Operating Agreement with the Bozeman Sports Parks Foundation,Inc. for the Bozeman Sports Parks Page 11 of 15 Additional Insured on a primary, non-contributory basis when any alcoholic beverages are to be sold or consumed during any event. (b) Property Insurance. The City will insure all real and business personal property owned by the City of Bozeman located at the Sports Parks on a replacement cost basis. The Foundation will secure and continuously maintain commercial property insurance on a replacement cost basis for all business personal property, contents, and any non-permanent improvements made to the Sports Parks by the Foundation. The Foundation will require that all vendors, contractors and subcontractors carry appropriate property insurance for their own business personal property and contents to be located at the Sports Parks during events. Section 9.—Miscellaneous. 9.1 Compliance with Laws and Regulations. The Foundation shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers' compensation laws, all environmental laws including, but not limited to,the generation and disposal of hazardous waste,the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all nondiscrimination, affirmative action, and utilization of minority and small business statutes and regulations. The Foundation shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 9.2 Modification and Assignability. This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Foundation may not assign its rights or obligations under this Agreement without the prior written consent of the City Commission. Any assignee will be bound by all of the terms and conditions of this Agreement. 9.3 Severability. If any portion of this Agreement is held to be void or unenforceable,the balance thereof shall continue in effect. 9.4 Applicable Law; Venue. The Parties agree that this Agreement is governed in all respects by the laws of the State of Montana. The Parties agree to personal jurisdiction in the courts of Gallatin County, Montana. Operating Agreement with the Bozeman Sports Parks Foundation,Inc. for the Bozeman Sports Parks Page 12 of 15 9.5 Dispute Resolution. (a) Any claim,controversy,or dispute between the parties,their agents,employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. (b) If the Parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 9.6 Binding Effect. This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the Parties. 9.7 Nondiscrimination. The Foundation will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Foundation will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The Foundation shall require these nondiscrimination terms of its contractors, agents, or subcontractors providing services under this Agreement. 9.8 Non-Waiver. A waiver by either Party of any default or breach by the other Party of any terms of conditions of this Agreement does not limit the other Party's right to enforce such term or conditions or to pursue any available legal or equitable rights in the event of any subsequent default or breach. 9.9 Notice. Any notice required or permitted under this Agreement shall be deemed sufficiently given or served if sent by email with read-receipt requested or by United States certified mail, return receipt requested. 9.10 Attorney's Fees and Costs. In the event it becomes necessary for either Party of this Agreement to retain an attorney to enforce any of the terms or conditions of this Agreement or to give any notice required herein,then the prevailing Party or the Party giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel to include the City Attorney. 9.11 No Third-Party Beneficiary. This Agreement is for the exclusive benefit of the Parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or enforced by a third party. Operating Agreement with the Bozeman Sports Parks Foundation,Inc. for the Bozeman Sports Parks Page 13 of 15 9.12 Counterparts. This Agreement may be executed in counterparts, which together constitute one instrument. 9.13 Integration. This Agreement and all exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained therein or made a part thereof by reference, are not binding upon the parties. There are no understandings between the parties other than as set forth in this Agreement. All communications, either verbal or written,made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. **** END OF AGREEMENT EXCEPT FOR SIGNATURES Operating Agreement with the Bozeman Sports Parks Foundation,Inc.for the Bozeman Sports Parks Page 14 of 15 CITY OF BOZEMAN BOZEMAN SPORTS PARKS FOUNDATION,INC. By: By: i Andrea Surratt, City 3ianager Print Name: Title: APPROVE O FORM: By: Greg Sullivan, City Attorney Operating Agreement with the Bozeman Sports Parks Foundation,Inc.for the Bozeman Sports Parks Page 15 of 15 EXHIBIT A Sports Parks Legal Descriptions 1. Bozeman Sports Parlc: 503, T02 S, R05 E, C.O.S. 2554B, ACRES 79.869, TRACT 1Al. 2. Bronlcen Park: VALLEY WEST SUB, 509, T02 S, R05 E, Lot PARK, ACRES 39.06, PLAT J-320. EXHIBIT B Debt Repayment Agreement