HomeMy WebLinkAbout20- Indemnification Agreement - Wallace-Babcock Properties, LLC - South Wallace Sewer UpgradeIndemnity Agreement Wallace & Babcock LLC
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City of Bozeman Indemnification Agreement
This Agreement for Indemnification, to Hold Harmless and defend arising out of Montana
Department of Transportation Utility Occupancy and Location Agreement by and between the
City of Bozeman and the State of Montana, Department of Transportation for the Wallace and
Main Project, dated July 15, 2020 (hereinafter “MDT Agreement”). This agreement is by and
between Wallace - Babcock Properties, LLC (“Developer”) with address of 1283 N 14th Ave.,
Suite 101, Bozeman, Montana, 59718, and the City of Bozeman, PO Box 1230, Bozeman,
Montana 59771 (“City”).
RECITALS
Whereas, Developer is a Montana limited liability company which has been permitting
and constructing the Wallace and Babcock Building – City of Bozeman Project 27148 on the real
property described as Lot 13A of the Amended Plat of Lot 13, Lot 14, Lot 15A and Lot 16A,
Block A of Rouse’s 2nd Addition to Bozeman, according to the official plat thereof on file and
of record in the office of the County Clerk and Recorder, Gallatin County, Montana (Plat
Reference: C-6-F) (“Development Project”); and
Whereas, to proceed with the Development Project, Developer must upgrade the sewer
main consistent with the South Wallace Sewer Upgrade - City of Bozeman Project - Site Plan
Development 17-263 and incorporated located in the State of Montana Highway commonly
referred to as East Main Street (“Sewer Project”); and
Whereas, at the end of the Development Project the newly installed lines within the
Sewer Project will become the property of the City and be permanently located in the State of
Montana Highway right of way, which is under the authority of the Montana State Department of
Transportation (“MDT”); and
Whereas, MDT requires the City to consent to the MDT Agreement and refuses to issue
an occupancy permit or encroachment permit for the Sewer Project until such time as the City
has signed the Agreement; and
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Whereas, the City and Developer agree the terms and conditions of the MDT Agreement
as required by MDT erroneously shift responsibilities and obligations away from Developer to
the City; and
Whereas, Developer remain steadfast in supporting the efforts of the City to secure water
and sewer service to the Development Project and agree to be fully responsible for fulling the
conditions of the MDT Agreement and release the City from responsibility to do so.
Now therefore Developer and the City agree as follows:
1. Purpose and Consideration/Developer’s Responsibilities. The purpose of this Agreement
is for the City and Developer to understand the City consents to sign the MDT
Agreement only if Developer enters into this Agreement and willingly accepts the
responsibilities, obligations, and liabilities imposed by MDT upon the City pursuant to
the MDT Agreement. As such, in exchange for the City executing the MDT Agreement
and any further permits required by MDT in order for the Development Project to
proceed, which is recognized as good valuable consideration for both parties, Developer
agrees to be solely responsible and obligated for fulfilling, abiding by, and complying
with the MDT Agreement and the terms and commitments set forth therein. Such terms
include but are not limited to the Terms and Conditions as stated in the MDT Agreement,
Standard MDT Permit Conditions, and any other requirement imposed upon the City as
part of MDT’s authorization to construct the Sewer Project.
2. Indemnity. Should MDT or any other party attempt to enforce against the City any and all
provisions of the MDT Agreement, Developer must immediately take all steps and
actions necessary, regardless of cost or effort required, to comply with the requirements
and fulfill all obligations of the MDT Agreement. In addition, Developer shall hold
harmless, defend and indemnify the City from all actions, damages, costs, including
attorney’s fees which may arise out of MDT’s enforcement actions or which become
necessary to comply with the MDT Agreement.
In addition, the duty and obligation to indemnify the City, its officers, agents, and
employees extends to the duty and obligation to hold harmless, defend and indemnify the
City, it’s officers, agents, and employees, from all actions, damages, claims, obligations,
liabilities, demands, judgements, and costs, including attorney’s fees, of any kind which
may arise in relation to Developer’s activities in performance of the MDT Agreement and
design, engineering, and construction of the Sewer Project.
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3. Representatives and Notices.
a. City’s Representative: The City’s Representative for the purpose of this
Agreement shall be the City Engineer 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, Developer may direct its communication or submission to
other designated City personnel or agents as designated by the City in writing
and may receive approvals or authorization from such persons.
b. Consultant’s Representative: The Developer’s Representative for the purpose
of this Agreement shall be or such other individual as
Developer shall designate in writing. Whenever direction to or communication
with Developer is required by this Agreement, such direction or communication
shall be directed to Developer’s Representative; provided, however, that in
exigent circumstances when Developer’s Representative is not available, the
City may direct its direction or communication to other designated Developer
personnel or agents.
c. Notices: All notices required by this Agreement shall be in writing and shall
be provided to the Representatives named in this Section. Notices shall be
deemed given when delivered, if delivered by courier to party’s address shown
above during normal business hours of the recipient; or when sent, if sent by
email or fax (with a successful transmission report) to the email address or fax
number provided by the party’s Representative; or on the fifth business day
following mailing, if mailed by ordinary mail to the address shown above,
postage prepaid.
4. Permits. Developer shall provide all notices, comply with all applicable laws,
ordinances, rules, and regulations, obtain all necessary permits, licenses, including a
City of Bozeman business license, and inspections from applicable governmental
authorities, and pay all fees and charges in connection therewith.
5. Costs to the City. Developer agrees to reimburse the City for all costs related to the
City entering into the MDT Agreement.
6. Laws and Regulations. Developer 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,
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Chapter 71, MCA, all applicable City, County, and State building and electrical codes,
the Americans with Disabilities Act, and all non- discrimination, affirmative action,
and utilization of minority and small business statutes and regulations.
7. Nondiscrimination and Equal Pay. The Developer agrees that all hiring by Developer
of persons performing this Agreement shall be on the basis of merit and qualifications.
The Con Developer tractor will have a policy to provide equal employment opportunity
in accordance with all applicable state and federal anti-discrimination laws, regulations,
and contracts. The Developer 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 Contractor shall be subject to and comply with Title VI of the Civil
Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations
promulgated thereunder. Developer represents it is, and for the term of this Agreement
will be, in compliance with the requirements of the Equal Pay Act of 1963 and Section
39-3-104, MCA (the Montana Equal Pay Act).
Developer must report to the City any violations of the Montana Equal Pay Act that
Contractor has been found guilty of within 60 days of such finding for violations
occurring during the term of this Agreement.
Developer shall require these nondiscrimination terms of its subcontractors providing
services under this Agreement.
8. Modification and Assignability. This Agreement may not be enlarged, modified,
amended or altered except by written agreement signed by both parties hereto. The
Developer may not subcontract or assign Developer’s rights or duties arising
hereunder, without the prior written consent of the City.
9. Non-Waiver. A waiver by either party of any default or breach by the other party of
any terms or 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.
10. Attorney’s Fees and Costs. In the event it becomes necessary for either Party 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 including the City Attorney’s Office staff.
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11. 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.
12. Survival. Consultant’s indemnification shall survive the termination or expiration of
this Agreement for the maximum period allowed under applicable law.
13. Legal Review. The City and Developer sought independent legal advice prior to
executing this Indemnification Agreement.
14. Headings. The headings used in this Agreement are for convenience only and are not
be construed as a part of the Agreement or as a limitation on the scope of the particular
paragraphs to which they refer.
15. Severability. If any portion of this Agreement is held to be void or unenforceable, the
balance thereof shall continue in effect.
16. Applicable Law. The parties agree that this Agreement is governed in all respects by
the laws of the State of Montana.
17. Binding Effect. This Agreement is binding upon and inures to the benefit of the heirs,
legal representatives, successors, and assigns of the parties.
18. 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 including but not limited to Developer’s contractors or MDT.
19. Counterparts. This Agreement may be executed in counterparts, which together
constitute one instrument.
20. Integration. This Agreement and all Exhibits attached hereto constitute the entire
agreement of the parties. Covenants or representations not contained herein 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.
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21. Consent to Electronic Signatures. The Parties have consented to execute this
Agreement electronically in conformance with the Montana Uniform Electronic
Transactions Act, Title 30, Chapter 18, Part 1, MCA.
**** END OF AGREEMENT EXCEPT FOR SIGNATURES ****
The person signing below represents it has the authority to enter into this Agreement on
behalf of its respective entity.
Wallace – Babcock Properties, LLC
By __________________________________ DATE: _________
Peter Belschwender, Managing Member
City Of Bozeman
By ___________________________________ DATE: _________
Jeff Mihelich, City Manager
Attested by:
______________________________________ DATE: _________
City Clerk
DocuSign Envelope ID: 5492C28D-A9E2-4114-99A9-E9D09D34B241
7/16/2020
7/20/2020
7/20/2020