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Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Shawn Kohtz, City Engineer
SUBJECT: Agreement Regarding Infrastructure – Clarifying the provision of
sanitary sewer service to the proposed Billings Clinic Planned Unit
Development
MEETING DATE: May 4, 2020
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Authorize the City Manager to execute the attached infrastructure
agreement with Billings Clinic to clarify sanitary sewer service with respect to the Billings Clinic Planned Unit Development.
STRATEGIC PLAN: Section 4 of the City’s Strategic Plan calls for a Well Planned City
stating, “4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for
existing and new infrastructure.”
BACKGROUND: City staff have been working with Billings Clinic to coordinate sanitary
sewer infrastructure to accommodate development proposed by Billings Clinic. The City’s capital
improvements plan defines new sanitary sewer projects that will accommodate the Billings Clinic
development and allow Billings Clinic to connect a new sanitary sewer main to the City sanitary
sewer system. City c apital projects include the Davis Lane Lift Station (Wastewater Impact Fee
Project Number WWIF24) and Norton East Ranch Interceptor (Wastewater Impact Fee Project
Number WWIF11) that will allow for connection of the Billings Clinic development to the system.
The City has received bids for construction of those capital projects. The low bid will be presented
to the City Commission in the following weeks for consideration.
There is risk associated with the Norton East Ranch Interceptor project due to the need to construct
a 60-inch diameter bore under the freeway, railroad tracks, and frontage roads. In the event that
problems are encountered during the bore construction, Billings Clinic desires an alternative to
connect to the City’s sanitary sewer system. That alternative connection is described as Option B
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in the attached agreement. Related to Option B, the City entered into an agreement in 2014 with
the owner of the Billings Clinic property at that time. That agreement is attached for reference,
which allows for the proposed Option B connection.
The proposed agreement has been reviewed by City engineering and legal staff.
UNRESOLVED ISSUES: None.
ALTERNATIVES: As suggested by the City Commission.
FISCAL EFFECTS: No fiscal effects are identified from this action. Billings Clinic would be
responsible to construct sanitary sewer improvements for either Option A or Option B defined in
the attached agreement.
Attachments: Agreement Regarding Infrastructure and Exhibits
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AGREEMENT REGARDING INFRASTRUCTURE
This Agreement Regarding Infrastructure (“Agreement”) is made by and between Billings Clinic and the
City of Bozeman, Montana, a Municipal Corporation (“City”). The City and Billings Clinic agree as
follows:
1. Billings Clinic is in the process of designing and constructing a medical facility (“the Project”) to be
located within the City. As part of the overall Project, Billings Clinic anticipates installing water
and sewer infrastructure on Billings Clinic’s property (“Clinic Infrastructure”) that will connect to
existing Water Lines and existing Sanitary Sewer Lines (collectively, “Existing Infrastructure”).
There are two options for connecting to Existing Infrastructure:
a. Option A: Billings Clinic will connect Clinic Infrastructure to the Davis Lift Station and
Norton East Ranch Interceptor that the City currently plans to construct. The proposed
connection point for this Option A is shown on the map attached as Exhibit 1.
b. Option B: If, as discussed in more detail below, Option A is not available, Billings Clinic
will construct a temporary lift station and connect Clinic Infrastructure to Existing
Infrastructure currently owned by the City. The proposed connection point for Option B
is shown on the map attached as Exhibit 1.
2. The City typically would require Billings Clinic to have Clinic Infrastructure completed and
connected to Existing Infrastructure before issuance of a Building Permit for further construction.
Billings Clinic does not currently have completed infrastructure that is connected to Existing
Infrastructure but nonetheless desires to receive a Building Permit and proceed with construction.
Concurrent construction requirements to construct infrastructure while receiving a building
permit are outlined in the City of Bozeman Municipal Code 38.270.030.D or 38.270.030.C as
appropriate. The above municipal code requirements are incorporated herein; specifically, Billings
Clinic recognizes and agrees that no occupancy of any building is allowed until either Option A or
Option B have been completed.
3. The City and Billings Clinic have been working together cooperatively and have reached an
agreement that will allow Billings Clinic to receive a Building Permit and proceed with further
construction on the Project, at Billings Clinic’s sole risk, prior to the time that Billings Clinic has
completed Clinic Infrastructure and connected to Existing Infrastructure or to infrastructure, the
Davis Lane Lift Station and Norton East Ranch Interceptor, that has not yet been completed by the
City.
4. In return for the City issuing a Building Permit to Billings Clinic, Billings Clinic agrees that Billings
Clinic will pursue Option A from Paragraph 1 and construct and install Clinic Infrastructure that is
capable of and ready to connect to the Davis Lift Station and Norton East Ranch Interceptor
Extension that the City currently plans to construct.
5. If the City does not extend its Existing Infrastructure to the to the connection points anticipated by
Option A when the Clinic Infrastructure is ready for connection, Billings Clinic instead will employ
Option B from paragraph 1. The City agrees and covenants that, if Billings Clinic pursues Option B,
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the City will review the proposed Option B infrastructure plans and specifications pursuant to City
requirements and approve Option B and issue any necessary permits for Option B.
6. If Billings Clinic pursues Option B and the City decides at some future point to extend the City’s
Existing Infrastructure to the connection points anticipated by Option A, at that point Billings Clinic
will eliminate the lift station and connect to the City’s Existing Infrastructure.
7. Option B is an allowed connection per the Wastewater Collection System Agreement, executed in
2014, attached as Exhibit 2.
8. The temporary sanitary sewer lift station and pressure sewer main associated with Option B
would be owned and maintained by the Billings Clinic until such time as connection of the sanitary
sewer is made to the Norton East Ranch Interceptor Sewer.
9. Billings Clinic acknowledges that the City has not promised or represented, and is not promising or
representing, that the City’s Existing Infrastructure actually will be extended and completed to the
connection points anticipated by Option A. Billings Clinic agrees that covenants that Billings Clinic
will not assert any claim, demand, or cause of action against the City caused by the City’s decision,
for whatever reason, not to extend the City’s Existing Infrastructure to the connection points
anticipated by Option A. Any construction by Billings Clinic pursuant to this Agreement is at
Billings Clinic’s sole risk.
10. Each of the signatories to this Agreement represents and warrants that he or she is authorized to
execute this Agreement.
Dated this ____ day of ______________, 2020
CITY OF BOZEMAN
____________________________________
By:
Printed Name:________________________
Title:________________________________
Dated this ____ day of ______________, 2020
BILLINGS CLINIC
____________________________________
By:
Printed Name:________________________
Title:________________________________
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OPTION "A" -
CONNECT TO
DAVIS LIFT
STATION &
NORTON SANITARY
SEWER EXTENSION
PROJECT TO BE
COMPLETED BY
CITY OF BOZEMAN OPTION "B" -
TEMPORARY LIFT
STATION
OPTION "B" -
TEMPORARY
SANITARY SEWER
MAIN CONNECTION
TO EXISTING
SANITARY SEWER
MAIN
Exhibit 1
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Exhibit 2
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132
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