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HomeMy WebLinkAbout01-05-21 EVB Agenda & Packet MaterialsA.Call to Order - 6:00 PM Via WebEx Via Webex: https://cityofbozeman.webex.com/cityofbozeman/onstage/g.php?MTID=e34a27238eab0e8d6170f7100aab40ca1 Click the Register link, enter the required information, and click submit. Click Join Now to enter the meeting Via Phone: This is for listening only if you cannot watch the stream or channel 190 • Call-in toll number (US/Canada): 1-650-479-3208 • Access code: 2552 657 3267 Public Comment: If you are interested in commenting in writing on items on the agenda, please send an email to agenda@bozeman.net prior to 4:00pm on the Monday before the meeting. You may also comment by visiting the City's public comment page. You can also comment by joining the WebEx meeting. If you do join the WebEx meeting, we ask you please be patient in helping us work through this online meeting. If you are not able to join the Webex meeting and would like to provide oral comment you may send a request to agenda@bozeman.net with your phone number, the item(s) you wish to comment on, and someone will call you during the meeting to provide an opportunity to comment. You may also send the above information via text to 406-224-3967. As always, the meeting will be streamed through the City's video page (click the Streaming Live in the drop down menu), and available in the City on cable channel 190. B.Disclosures C.Changes to the Agenda D.Approval of Minutes D.1 Approval of Minutes from the December 1, 2021 meeting.(DiTommaso ) E.Public Comments F.Action Items F.1 Economic Vitality (EV) Board 2022 Work Plan Discussion and Approval (Fontenot ) THE ECONOMIC VITALITY BOARD OF BOZEMAN, MONTANA EV AGENDA Wednesday, January 5, 2022 1 F.2 Appoint up to three (3) Member(s) to represent the Economic Vitality Board on the Regional Leadership Committee (RLC) for the Economic Developemt Strategy update.(Fontenot) G.FYI/Discussion H.Adjournment I.For more information please contact Brit Fontenot, bfontenot@bozeman.net General information about the Economic Vitality Board is available in our Laserfiche repository. This board generally meets the first Wednesday of the month from 6:00 pm to 8:00 pm. Citizen Advisory Board meetings are open to all members of the public. If you have a disability and require assistance, please contact our ADA coordinator, Mike Gray at 406-582-3232 (TDD 406- 582-2301). 2 Memorandum REPORT TO:Economic Vitality Board FROM:Jesse DiTommaso, Economic Development Specialist Brit Fontenot, Economic Development Director SUBJECT:Approval of Minutes from the December 1, 2021 meeting. MEETING DATE:January 5, 2022 AGENDA ITEM TYPE:Citizen Advisory Board/Commission RECOMMENDATION:Move to approve minutes from the December 1, 2021 meeting. STRATEGIC PLAN:1.1 Outreach: Continue to strengthen and innovate in how we deliver information to the community and our partners. BACKGROUND:In accordance with Commission Resolution 5323 and the City of Bozeman's Citizen Advisory Board Manual, all boards must have minutes taken and approved. Prepared minutes will be provided for approval by the board at the next regularly scheduled meeting. Staff will make any corrections identified to the minutes before submitting to the City Clerk's Office. UNRESOLVED ISSUES:None. ALTERNATIVES:Do not approve the minutes. FISCAL EFFECTS:None. Attachments: 120121 DRAFT Economic Vitality Board Minutes.docx Report compiled on: December 8, 2021 3 Bozeman Economic Vitality Board Meeting Minutes, December 1, 2021 Page 1 of 2 THE CITY COMMMISSION MEETING OF BOZEMAN, MONTANA MINUTES December 1, 2021 A)00:04:50 Call to Order -6pm via WebEx B)00:05:03 Introductions C)00:20:26 Public Comments D)00:22:57 FYI/Discussion D.1 00:23:01 Discussion on Advisory Board Norms City Manager Mihelich presented norms of behavior for citizen advisory boards. 00:36:51 Questions of Staff D.2 00:38:11 Review of High Performing Boards Manual City Clerk Maas presented information contained in the High Performing Boards Resolution and the Citizen Advisory Board Manual. 00:55:47 Questions of Staff D.3 00:57:42 City Ethics On-boarding Training Assistant City Attorney Giuttari provided the ethics onboarding and annual training. 01:33:13 Questions of Staff D.4 01:38:22 Role of Advisory Board Staff Liaison and Economic Development Director Brit Fontenot presented the subject specific role of Economic Vitality Board. 01:47:23 Questions of Staff E)02:09:02 Adjournment 4 Bozeman Economic Vitality Board Meeting Minutes, December 1, 2021 Page 2 of 2 ___________________________________ Katharine Osterloth Chair ATTEST: ___________________________________ Brit Fontenot Staff Liaison PREPARED BY: ___________________________________ Jesse DiTommaso Economic Development Specialist Approved on: January 5, 2022 5 Memorandum REPORT TO:Economic Vitality Board FROM:Brit Fontenot, Economic Development Director SUBJECT:Economic Vitality (EV) Board 2022 Work Plan Discussion and Approval MEETING DATE:January 5, 2022 AGENDA ITEM TYPE:Citizen Advisory Board/Commission RECOMMENDATION:I move to approve the Work Plan items and strategy recommended by Staff or with any specific changes or modifications made by the Board. STRATEGIC PLAN:1.2 Community Engagement: Broaden and deepen engagement of the community in city government, innovating methods for inviting input from the community and stakeholders. BACKGROUND:Established in August, 2021 by Resolution 5329, the Economic Vitality Board is responsible for the following four areas of focus: 1. Community Housing. The Economic Vitality Board will provide advisory recommendations to the Commission, and as requested by the City Manager to the City Manager, on policies related to community housing needs. 2. Economic Development. The Economic Vitality Board will advise the City Commission, and as requested by the City Manager to the City Manager, on policies related to economic development issues. 3. Diversity, Equity, and Inclusion (“DEI”). The Economic Vitality Board will advise the City Commission, and as requested by the City Manager to the City Manager, on policies related to diversity, equity, and inclusion. In doing so, the Board must be cognizant the City values and encourages the inclusion of diverse perspectives and experiences, and makes proactive efforts to ensure Bozeman is safe, welcoming, and inclusive. 4. Public Art. The Economic Vitality Board will advise the City Commission, and as requested by the City Manager to the City Manager, on policies related to the development and implementation of public art programs. In doing so, the Board must be cognizant the City recognizes public art is an indicator of Bozeman’s economic and community vitality. The Board will also assist the City in conducting the City’s annual Beautification Awards. 6 Additionally, the Economic Vitality Board encourages policies that: 1. Support and provide for community housing; 2. Enhance personal and professional economic growth in Bozeman, and vitalize Bozeman’s workforce development and job growth; 3. As requested by the City Manager or City Commission, assist the City regarding implementation of economic development plans; 4. Promote diversity, equity, and inclusion in Bozeman; 5. Recognize the use of public art as an indicator of economic and community vitality; and 6. Consider principles of sustainability and the Bozeman Climate Action Plan in its policy recommendations. Finally, Resolution 5323, adopted in August of 2021 establishes standards, expectations, duties and norms of behavior for all appointed City boards. Section 2 of the ordinance references the board annual work plans and alignment with the City Commission’s adopted Strategic Plan. The elements of the City’s adopted Strategic Plan Vision Statements include: 1. An Engaged Community. We foster a culture of engagement and civic leadership based on innovation and best practices involving community members of all backgrounds and perspectives. 2. An Innovative Economy. We grow a diversified and innovative economy leveraging our natural amenities, skilled and creative people, and educational resources to generate economic opportunities. 3. A Safe, Welcoming Community. We embrace a safe, healthy, welcoming and inclusive community. 4. A Well-Planned City. We consistently improve our community’s quality of life as it grows and changes, honoring our sense of place and the ‘Bozeman feel’ as we plan for a livable, affordable, more connected city. 5. A Creative, Learning Culture. We expand learning, education, arts, expression and creativity for all ages. 6. A Sustainable Environment. We cultivate a strong environmental ethic, protecting our clean air, water, open spaces and climate, and promote environmentally sustainable businesses and lifestyles. 7. A High Performance Organization. We operate as an ethical, high 7 performance organization anticipating future needs, utilizing best practices, and striving for continuous improvement. Preparing the 2022 Economic Vitality Board work plan is a priority. As referenced above, there are four primary areas of focus. Staff will lead a discussion with the EV Board on the status of each of the focus areas and recommend how the existing and ongoing work can be feathered into the Board’s 2022 work plan. David Fine, Urban Renewal and Housing Manager will discuss the status of the program and where the Board can join the work in progress being done in the Community Housing program. Similarly, Dani Hess, Community Engagement Coordinator, will lead a discussion on the recently completed DE&I Gaps Analysis, review the Inclusive City Quarterly Report (November, 2021) and discuss the planning for a future DE&I Action Plan. Your Staff Liaison will lead the next two discussion on the 1% for Art Program and finally the Economic Development Strategy Update. Your Staff Liaison will be joined by Alisa Pyszka of Bridge Economic Development, one of our partners on this project. Once discussions are complete, the Board should take one vote to approve the items and work plan strategy recommended by Staff or with any changes or modifications made by the Board. UNRESOLVED ISSUES:None at this time. ALTERNATIVES:As proposed by the Economic Vitality Board. FISCAL EFFECTS:None at this time. Attachments: 2020 Bozeman Community Housing Action Plan.pdf 2021 Gallatin County Regional Housing Study - One Valley.pdf CoB Inclusive City Report November 2021.pdf CoB Equity Indicators Gaps Analysis 2021.pdf 20- Ordinance 2056 Final Adoption Establishing Municipal Percent for Art Program.pdf Bozeman ED Strategy Update_11-2016_Final v 2.pdf Task Order 4 - Update of the EDS - 12.14.21.pdf BZN ED Strategy Milestones.pdf Report compiled on: December 23, 2021 8 Bozeman Community Housing Action Plan Working together to strengthen community by increasing the inventory of quality homes across the spectrum of needs. April 9, 2020 Amendment Prepared by: Christine Walker, Navigate Consulting | Wendy Sullivan, WSW Consulting | Seana Doherty, Freshtracks Collaboration 9 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration TOC Table of Contents EXECUTIVE SUMMARY ....................................................................................................................................................................................... 1 BOZEMAN COMMUNITY HOUSING ACTION PLAN .............................................................................................................................................. 3 1. OBJECTIVES ........................................................................................................................................................................................................... 5 2. HOUSING ACTION STRATEGIES .................................................................................................................................................................................. 6 Timeline for Implementation ............................................................................................................................................................................. 7 Roles and Responsibilities .................................................................................................................................................................................. 9 Action Strategy Descriptions ............................................................................................................................................................................ 10 3. CORE COMPONENTS ............................................................................................................................................................................................. 24 APPENDIX A – ACTION PLAN PROCESS, DEFINITIONS AND ACKNOWLEDGEMENTS ........................................................................................ A-1 COMMUNITY HOUSING ACTION PLAN PROCESS .................................................................................................................................................................. 1 DEFINITIONS ................................................................................................................................................................................................................. 3 ACKNOWLEDGEMENTS ................................................................................................................................................................................................... 4 FRONT COVER PHOTO BY ANDY AUSTIN, VIEW OF SPANISH PEAK FROM BOZEMAN 10 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 1 Executive Summary The Bozeman Community Housing Action Plan outlines a partnership framework to address community housing in Bozeman over at least the next five years. Community Housing is defined as: Homes that those who live and/or work in Bozeman can afford to purchase or rent. This includes apartments, townhomes, condominiums, emergency shelters, accessory dwelling units, mobile homes and single-family homes – all dwelling types – serving the entire spectrum of housing needs. The Plan presents a set of actions that address a range of community housing needs. The 2019 City of Bozeman Community Housing Needs Assessment study showed that between 5,400 to 6,340 housing units are needed over the next five years to address the current housing shortfall for residents and the workforce and to keep up with job growth. About 60% of these units need to be priced below-market to meet the full range of community housing needs. This includes a mix of housing unit types to diversify options for residents, with prices ranging primarily between $160,000 and $400,000 for ownership and $500 to $1,200 per month for rent. This plan was developed to begin addressing identified community housing needs and to create a lasting framework for implementation that will evolve as the community and its housing needs continue to evolve. The partnership framework for accelerating community housing in Bozeman is based on the recognition that no one entity can solve the local housing challenges – it takes a community to build a community. Utilizing the 2019 City of Bozeman Community Housing Needs Assessment as a base to understand the housing needs of residents and employees in Bozeman, a local Housing Working Group, comprised of Bozeman community stakeholders, with input from the public and technical assistance from consultants, created this Plan. Strategies to meet housing needs have been identified and prioritized; roles and responsibilities have been assigned. A timeline for achieving priority strategies has also been established, recognizing that this Plan will have life beyond this timeline and will continue to evolve and meet changing community housing needs over the long term. By including various community members in its implementation (employers, institutions, community organizations, and stakeholders), the Plan acknowledges that community involvement is necessary for the Plan’s success. 11 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 2 Objectives established in the Plan that will continue to be tracked to ensure progress is made, include: • Ensuring community housing serves the full range of incomes without losing sight of safety net programs for extremely low income and homeless families. This includes safety net rentals below 30% AMI (about $20,000 per year), additional resident and employee rentals up to 80% AMI (about $55,000 per year), and ownership housing up to 150% AMI (about $104,000 per year). • Producing community housing at a rate that exceeds, or at least matches, job growth so that new employees can find homes. • Striving to produce community housing at a rate that matches the spectrum of community housing needs, while also preserving what we have through a target of no net loss of existing community housing stock below 80% AMI. The following graphic summarizes the strategies Bozeman will pursue over the next five years. The primary affordability level that each strategy will address is illustrated below and represents the provision of a diversity of housing for community members across multiple income levels and in various life stages. Bozeman City Commission Amendments The Bozeman City Commission voted on January 13, 2000 to incorporate amendments into the October 16, 2019 Bozeman Community Housing Action Plan. Those amendments are incorporated into this April 9, 2020 version and are shown in “pink” text throughout the document. The amendments were not reviewed by either the Housing Working Group or Consultant Team, but are incorporated at the request of the City of Bozeman. 12 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 3 Bozeman Community Housing Action Plan Bridge 5800 UNITS NEEDED BY 2025 13 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 4 Bozeman Community Housing Action Plan This section presents the Bozeman Community Housing Action Plan. This Plan will focus the community housing partnership framework and increase the ability to meet community housing needs in Bozeman. The primary components of the Plan include: 1. Objectives. Plan objectives are established to help monitor progress. Objectives should be revisited as community housing needs evolve. 2. Action Strategies. The action strategies represent the prioritized strategies that have been developed to meet housing objectives. The action strategies include defined roles and responsibilities and a timeline for achievement. This is the Action part of the Plan. Because not every strategy can be implemented at once, the sequence of strategies were prioritized by evaluating current partner capacities and resources, understanding that some strategies may need to be implemented before others can be successful, and recognizing that others may have current political or legal limitations that will take more time. This prioritization is defined in more detail in the Action Strategy section. 3. Core Components. The core components represent the core operational needs to implement strategies, administer an inventory of community housing, and track the progress of the Action Plan. This structure is needed for successful implementation and to ensure continuation of the partnership framework to increase the availability of community housing in Bozeman. The Appendix contains a summary of the Action Plan process, defined terms used in this Plan, and acknowledgements of Plan participants. This Plan is also accompanied by Technical Documentation, which contains important information for Plan implementation. The Technical Documentation contains detail on each housing action strategy. The Technical Documentation should be referenced by implementing parties to understand the detailed background behind the formation of each strategy, best practices for each strategy, other communities implementing the strategy, and implementation steps and roles specific to Bozeman. 14 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 5 1. Objectives The Bozeman Community Housing Action Plan presents a set of actions that address a range of community housing needs. The 2019 City of Bozeman Community Housing Needs Assessment study showed that between 5,400 to 6,340 housing units are needed over the next five years to address the current housing shortfall for residents and the workforce and to keep up with job growth. About 60% of these units need to be priced below-market to meet the full range of community housing needs. This includes a mix of housing unit types to diversify options for residents, with prices ranging primarily between $160,000 and $400,000 for ownership and $500 to $1,200 per month for rent. As community housing needs change, the Housing Action Plan will evolve accordingly. The actions identified in this Plan are designed to help Bozeman improve the availability of community housing, defined as: Homes that those who live and/or work in Bozeman can afford to purchase or rent. This includes apartments, townhomes, condominiums, emergency shelters, accessory dwelling units, mobile homes and single-family homes – all dwelling types – serving the entire spectrum of housing needs. The following objectives for meeting community housing needs will be tracked to monitor progress and revisited as community housing needs evolve: • Income Levels. Community housing should serve the full range of incomes without losing sight of safety net programs. The primary focus should be on: o Ownership housing from 80% to 120% AMI, while also incentivizing the production of missing middle housing up to 150% AMI; o Additional resident and employee rentals up to 80% AMI; and o Safety net rentals below 30% AMI. • Jobs-Housing Relationship. Produce community housing at a rate that exceeds, or at least matches, job growth at income levels and ratios being earned by Bozeman employees. • Community Housing Built and Preserved. Strive to produce community housing at a rate that matches the spectrum of community housing needs, while also preserving what we have through a target of no net loss of existing community housing stock. 15 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 6 2. Housing Action Strategies Recognizing that there is no silver bullet – that no one housing strategy can do it all – the Housing Working Group evaluated about 40 different methods that could be used to address community housing needs in Bozeman. The reviewed options were based on strategies that have been used in high-amenity communities throughout the nation to address a variety of community housing needs. This process is described in more detail in the Appendix. Of the different options reviewed, the Working Group, with input from the public, housing needs assessment and technical assistance from the consultants, prioritized 17 of the options to implement within the next five years. Prioritization was required because neither the City nor the implementing partners have the capacity or resources to implement every strategy at once, nor would every strategy necessarily be effective in Bozeman. The other options are not lost, however. As the City and partners expand their capacity and successes, more strategies can be brought into the housing program to increase the impact of the actions taken. The 17 strategies identified for implementation over the next five years cover a range of options and target a variety of incomes and housing types, ensuring that community housing needs are being addressed from multiple angles. This includes: Funding: How do we pay for it? Programs: How do we get people into homes? Regulations: How do we make it happen? Incentives: How do we make it easier? Partnerships: How do we work together? Preservation: How do we keep what we create? The graphic on page two of this Plan (Executive Summary – Bozeman Community Housing Action Plan Bridge) summarizes the housing strategies that Bozeman will implement over the next five years and the primary affordability level that each strategy will address. This section provides more detail on the developed strategies, to-date, as follows: • Timeline for implementation: Shows the anticipated schedule for implementation for each community housing strategy over the next five years. • Roles and responsibilities: Identifies the Bozeman entities, organizations or stakeholders that will be responsible for implementing each strategy. Lead and supporting roles are identified. • Action strategy descriptions: Provides more detail on each of the 17 housing strategies, presented in the order shown on the timeline. A definition is provided for each strategy, along with a summary of the proposed action steps. A summary of non- prioritized strategies is also provided, many of which will be revisited for potential addition to the Action Plan as the housing program matures, capacity is added, and community needs change. 16 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 7 Timeline for Implementation The 17 housing strategies identified for implementation within the next five years are shown on the timeline below. Strategies will be monitored and modified as needed to ensure effectiveness. The bottom of the timeline shows existing housing strategies that will continue and that will also be monitored as part of this Plan. Strategies on the five-year timeline were identified as being “easy,” “medium,” and “hard” to implement, meaning: • “Easy” strategies utilize existing capacity, organizations and momentum in Bozeman. This includes tweaking what already exists to focus more specifically on housing and borrowing on current programs that are already under development. These strategies are also perceived as having good political and community support. • “Medium” strategies may require additional steps to complete, including more capacity or consultants; additional public outreach and input; new partnerships and/or more funding to ensure success. • “Hard” strategies will require a combination of additional capacity, expertise and possibly local financing; may have complex implementation or approval systems; and may have varied political or public support requiring additional research and education. State statutory limitations may be in place for some, requiring creative approaches or possibly legislative changes to implement. 17 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 8 Timeline of Priority Action Strategies Abbreviations: HRDC = Human Resources Development Council Strategies Type General Funds Funding Tax Increment Financing (TIF)Funding Community Land Trust Preservation Deed Restricted Housing (permanent)Preservation Inclusionary Zoning Regulation Public/Private/Institutional Partnerships Partnership/Land Home Buyer Assistance Program Program Removal of Regulatory Barriers Incentive/Regulation Accessory Dwelling Units (ADU)Incentive Fee Waiver/Deferral Incentive Co-op Housing (mobile home parks)Preservation Key: Employer Assisted Housing Program Action Phase Land Banking Partnership/Land On-going Phase Taxes Dedicated to Housing Funding Low Income Housing Tax Credits (LIHTC)Funding Flexible Development Standards Incentive City changes in effect; evaluation Short-Term Rental Regulations Regulation City adopted 2017; monitor Housing Rehabilitation and Weatherization Preservation Habitat for Humanity; HRDC Self Help Build Program Habitat for Humanity Senior Housing Program Various Funding HRDC, City Easy- exists; Medium-redirect for housing 1 to 2 years Short Easy-current; modify Mid Long 3 to 5 years 5+ years Medium Medium Hard Medium Hard Hard Permanent Supportive Housing (PSH) and Transitional Federal and State Grants/Loans – CDBG. HOME, USDA/Rural Development, Section 8 Easy-in process Medium Medium-modifications Medium Hard Hard Hard Hard On-going programs - to continue 18 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 9 Roles and Responsibilities The Housing Working Group recognized that utilizing partners that are already working on or that have expertise with various identified strategies have a role either leading or supporting identified actions. This includes the City, HRDC, Habitat for Humanity, primary employers and others working with or alongside each other to further housing goals in the community. Joint implementation provides the ability to share resources and capacity and leverage successes for a more robust and effective housing program. More specific involvement for each strategy is summarized in the Technical Documentation for this Plan. Matrix of Responsibilities: Action Strategies Strategies are sorted in the same order of the timeline presented above. Abbreviations: City = elected officials, advisory boards, and staff; HRDC = Human Resources Development Council; FUSE = Frequent Users Systems Engagement; Habitat = Habitat for Humanity; Chamber = Bozeman Chamber of Commerce; Prospera = Prospera Business Network; MSU = Montana State University; TBD = To Be Determined; Community Foundation = Bozeman Area Community Foundation STRATEGIES Type Lead Support General Funds Funding City TBD Tax Increment Financing (TIF)Funding City TIF Districts Community Land Trust Preservation HRDC/Habitat HRDC/Habitat Deed Restricted Housing (permanent)Preservation City HRDC/Habitat Inclusionary Zoning Regulation City 3rd party expert Public/Private/Institutional Partnerships Partnership/Land School district City support/convene potential partners; County; Habitat Home Buyer Assistance Program City/HRDC Prospera/Chamber Permanent Supportive Housing (PSH) and Transitional Program HRDC FUSE Team, hospital Fee Waiver/Deferral Incentive City TBD Co-op Housing (mobile home parks)Preservation HRDC Bozeman Cohousing Land Banking Partnership/Land City/Community Foundation TBD Employer Assisted Housing Program Prospera City, Habitat Removal of Regulatory Barriers Incentive/Regulation City 3rd party expert Accessory Dwelling Units (ADU)Incentive City MSU Low Income Housing Tax Credits (LIHTC)Funding HRDC City Taxes Dedicated to Housing Funding City Community/philanthropy (non profit) Commercial Linkage Regulation City TBD Flexible Development Standards Incentive Short-Term Rental Regulations Regulation Housing Rehabilitation and Weatherization Preservation Self Help Build Program Senior Housing Program Federal and State Grants/Loans – CDBG. HOME, USDA/Rural Development, Section 8 Funding On-going programs - to continue HRDC, City City changes in effect; evaluation City adopted 2017; monitor Habitat; HRDC Habitat for Humanity Various 19 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 10 Action Strategy Descriptions This section provides a short summary of the Action Strategies, with more detailed information provided in the Technical Documentation for this Plan. Strategies are color-coded based on the primary category type shown in the timeline: Funding: Blue Partnerships: Purple Programs: Red Regulations: Orange Incentives: Yellow Preservation: Green Strategies are summarized as follows: • Priority Action Strategies: Each priority action strategy is summarized and presented in order of implementation. A definition is provided for each strategy, along with a summary of the proposed actions. • On-Going Strategies: Each strategy that is on-going, meaning they are functioning and not currently a priority for additional changes or action at this time, are summarized. This includes the definition of the strategy, its current status and comments received. • Potential Strategies for Future Consideration: Strategies that were evaluated, but not yet prioritized for implementation, are summarized. This includes the definition of the strategy, along with comments from the public and Housing Working Group. Note that the strategies with a (*) indicate that the program is already in the place. 20 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 11 Bozeman Action Plan Strategies General Funds*An annual or occasional budget allocation primarily to support staffing, pre-development and gap financing for community housing. • Maintain in the short-term until broad-based, reliable funding source is secured. • Establish allocation criteria to inform use of the City’s Affordable Housing Fund. Tax Increment Financing (TIF)* Allows a local government or redevelopment authority to generate revenues for properties targeted for improvement. As improvements are made within the district, and as property values increase, the incremental increases in property tax revenue are earmarked for a fund. Expenditures of TIF- generated revenues are subject to certain restrictions and must be spent within the district. • Use of TIF to support community housing needs to be explored at the local and state levels. • Downtown is considering the use of TIF to incentivize Studios and 1- bedroom units and/or units that have long-term affordability assurances. • Considerations: o More TIF for housing means less money is available for other community priorities. o Potential challenges with state regulations and use for housing. o May be vulnerable at the state – care in crafting. o The establishment of any new TIF districts should balance competing community funding priorities. • Use TIF to incentivize long-term affordable housing within the districts including incentivizing ADUs and 1-bedroom units in the Downtown BID and incentivizing tax-credit qualifying projects. This amendment serves to clarify and combine the first two actions listed in this strategy. Community Land Trust* Community nonprofit owns land, develops housing and provides long-term stewardship for permanent affordability through long-term ground leases. Typically, single family or townhomes for moderate and middle-income households. • Consider establishing a Community Land Trust (CLT) organization that has the capability to take on management responsibilities of permanent restrictions. • Coordinate with existing housing providers with CLT homes to increase efficacy and avoid redundancy. • Facilitate a community land trust presentation to the City Commission. 21 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 12 Deed Restricted Housing (Permanent) Dwelling units permanently restricted by occupancy (local employee/resident), income level, and with rent/resale restrictions to retain affordability in rising and high cost housing markets. • Transition to a permanent restriction when publicly subsidized community housing units are created. • Align with other policies: fee waivers and incentives. • Create a permanent deed restriction that balances long-term affordability with wealth creation. • Structure the eligibility and occupancy criteria to ensure “fairness.” • Increase management capacity - begin by evaluating existing capacity, considering adjustments, and/or establishing a new entity, such as a Housing Authority or Community Land Trust. • Emphasize customer service, such as one point of contact. • Facilitate a deed restricted housing presentation to the City Commission. Inclusionary Zoning* Requires that new residential subdivisions and PUD’s include/build homes that are deed restricted for community housing. • Revisit Affordable Housing Ordinance: evaluate what has worked and not. • Apply to multi-family development, as well as single-family: ownership and rental. • Incorporate incentives along with housing development requirement. • Consider addressing up to 120% AMI for ownership. Work with CAHAB to develop a recommendation for adjusting the single-household and townhome ownership requirements in the inclusionary zoning ordinance to include up to 120%. • Require deed restrictions to be permanent. • Ensure consistency with other development codes. • Work with CAHAB to develop a recommendation on incorporating Condominiums into the inclusionary zoning ordinance, possibly targeting 100% AMI. • Research the feasibility of including multi-family rental units in the inclusionary zoning ordinance, possibly targeting 80% AMI. 22 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 13 Public/Private/ Institutional Partnerships Public/institutional organizations partnering with the private sector for development expertise to build community housing on publicly owned site. May be vacant or under-utilized land. May also include institutional properties. • Establish criteria to prioritize site(s). • Understand partner and site constraints. • Facilitate partnerships. • Issue Request for Proposals with desired community housing outcomes. • Keep prioritized list for future housing opportunities. * Strategies "Public/Private/Institutional Partnerships" and "Employer Assisted Housing" were seen as aligned by the Bozeman City Commission, and they amended the document to combine them into one strategy. Homebuyer Assistance* Down payment assistance of grants or second mortgages for qualified buyers. Can be used for restricted or market units. • Build upon existing program through the City, HRDC, Habitat for Humanity. • Seek local funding to serve households up to 120% AMI. • Community education program – financial literacy and assistance options. • Work with employers to assist employees. Technical assistance, loan/grant options, administration, etc. • Work with community partners to evaluate the establishment of home buyer assistance funds from non-city sources for home purchase made outside the inclusionary zoning ordinance. Permanent Supportive Housing (PSH) and Transitional* PSH pairs housing with supportive services to transition chronically homeless into home security. Transitional housing provides temporary assistance to bridge the gap from homelessness to permanent housing. • Inform developers of PSH incentives/opportunities. • Identify needs (HRDC). • Form housing group to advocate for more state funds. • Implement FUSE model to more efficiently and effectively provide services (HRDC). 23 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 14 Water/sewer, building permit or other fees waived in part or whole or deferred until occupancy/sale to reduce upfront cost to build. General funds or other source need to cover cost if fees waived or reduced and/or for the deferral period. • Update Affordable Housing Ordinance to reflect how fee waiver is implemented. • Structure fees to incentivize desired development (e.g. lower fees for smaller ownership and for-rent units, etc.). • Explore options to cover the cost of reduced fees – general fund, tax increment financing (TIF), etc. • Create an upfront schedule of all fees for developments – predictability. • Ensure homes benefit the community (deed restricted) if get reduced fees. Co-op Housing Common ownership and management of purpose-built communities. As related to preserving mobile home parks, residents form a corporate entity that purchases the park, placing the responsibility of park maintenance in the hands of the residents. Residents can self- organize to purchase or seek assistance. NeighborWorks Montana can provide assistance in Montana. • Explore as a means to preserve mobile home parks. • Reach out to NeighborWorks Montana through HRDC o Explore how the program works. o Verify that it can work in Bozeman/with Bozeman area mobile home parks, including evaluating parks and residents for interest and feasibility. Land Banking Acquiring land for eventual community housing development. Acquisition may occur through purchase, trades, life estates, donation (non-profits), in-lieu requirements. • Establish criteria to prioritize sites(s). • Inventory potential opportunities. • Understand constraints. • Include vacant, underutilized, redevelopment. 24 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 15 Employer Assisted Housing Employers providing housing support to employees. May be direct employee support (help with housing search, down payment, rent/mortgage, relocation) or master lease/buy/construct units. • Need education of and outreach to employers – present options and educate on tools available. • Hold symposium/education session. May be led by Chamber, Prospera, employers that currently have assisted housing programs in place, or another. • Next step: o Gauge interest in options from employers. Use information from the employer survey from the Needs Assessment as a starting point. o Find leaders to carry forward * Strategies "Public/Private/Institutional Partnerships" and "Employer Assisted Housing" were seen as aligned by the Bozeman City Commission, and they amended the document to combine them into one strategy. Updating/modifying code provisions and procedures that impair community housing development. For example, ensuring codes are consistent, simplifying applications. Complete code review and rewrite might be required. • Implement a biannual code revision process to make it easier for boards, committees, development professionals and the general public to suggest revisions to address current and future community housing needs. • Ensure process is predictable, transparent, useful and that codes produce what we want. • Engage third party to edit, reorganize and reformat the UDC to be more streamlined, functional and user friendly. Remove duplicative language and inconsistencies. • Engage third party to review all city codes, regulations and policies to identify disconnects and recommend methods to resolve. • Explore revisiting Engineering Design Standards and Specifications Policy to allow more compact development standards. • Explore adding code section for Moveable Tiny Homes. Coordinate at the state level. 25 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 16 An ADU is a second smaller home sharing a lot with a single-family or townhome residence. Some examples include an apartment over a garage, a tiny house in the backyard, or a basement apartment. Accessory dwellings that may be restricted for use by residents and employees require compliance monitoring. • Explore removing special use permit requirement for a detached ADU in • R-1 zone to allow by-right. • The city has taken steps to decrease the cost of ADUs, educate the community about these cost reductions and explore opportunities for additional reductions (i.e. permitting, impact fees, parking regulations). • Make pre-engineered ADU designs available for free – only a building permit needed to construct. • Deed-restrict units that receive an incentive/public break to build to ensure community benefit – e.g., require long term rental, resident/employee occupancy. Low Income Housing Tax Credits (LIHTC)* A federal program that creates an incentive to finance rental housing for households below 60% AMI. • Work with the “Complete Count Committee” to assist with the 2020 census count. An “Entitlement Community”, or city with a population of 50,000, receives increased and direct tax credit allocations. • Get Bozeman representation on the Montana Board of Housing. • Align regulations and zoning with Qualified Census Tracts to encourage LIHTC development. Taxes Dedicated to Housing Sales, property, lodging, short-term rental fee, real estate transfer, excise tax, vacancy tax, unit demolition or conversion fees. Voter approval required in most states. Revenue stream can be used for most housing-related activities. Approval requires extensive public education. • Pursue either a mill levy or bond issue. • Coordinate with a comprehensive education campaign. • Consider citywide Special District. • Evaluate what entity should hold funds collected (City, new Housing Trust fund, etc.). • Evaluate who should administer allocation of funds, taking into consideration accountability requirements with the use public funds. • Establish allocation criteria that considers: scoring system, leverages funds, aligns with income targets, requires permanent affordability. • Conduct a legal review of Montana Code to determine the most appropriate sustainable funding sources for Commission review. 26 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 17 Commercial Linkage Requires new commercial development to provide housing or pay fees for a portion of employees needed to fill the new jobs generated by the development. Nexus study is required to determine the mitigation requirement. Fluctuates with building activity. • Conduct Nexus Study to evaluate the potential impact of linkage on community housing and businesses. • Consider the impact on business growth and the impact on the community of doing nothing (status quo). • Identify peer communities and evaluate what has worked and not worked: learn from others. • Make it easy for employers to build housing today if they want to: e.g. continue to encourage residential above commercial or on same lot. • Conduct a legal review of Montana Code to determine the most appropriate sustainable funding sources for Commission review. Review of Planned Unit Developments (PUD) Planned Unit Developments (PUD) are a mechanism to gain relaxations from City Code by providing public benefit above and beyond what would otherwise be required. The PUD process can be lengthy and cost prohibitive in some cases due to the information needed prior to approval. This strategy would seek to further define elements of the code that could be standardized for approval when Community Housing needs are the focus of Code relaxations. • Evaluate past PUD relaxation approvals. • Explore changes in the UDC and other City standards to minimize the need for PUD relaxations. • Develop a pattern book and template for review of PUD criteria when a PUD includes construction of affordable homes 27 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 18 Up-Zoning With the goal of allowing increased density where appropriate this strategy would seek to identify areas where density could contribute to increased housing supply. The strategy is meant to create uniformity in decision making and lend some level of certainty to property owners looking to aid Community Housing efforts by adding to the housing supply beyond what current zoning would allow. Tools in this strategic area may include changes to policy as well as text within the City Code. • Align growth policy recommendations with the density goals supporting up- zoning. • Develop expanded criteria to be used for evaluation of up-zoning applications. • Develop appropriate transition standards when up-zoning existing parcels. • Identify areas ripe for up-zoning. NOTE: The CAHAB Commission Liaison, in coordination with the City Manager, shall work with the Community Development Department to advance the action plan items that require coordination with community partners, providing regular updates to the Commission. 28 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 19 On-Going Strategies Modified land use regulations in exchange for community housing. May include reductions in parking, setbacks, open space, height limits, road widths, etc. Quality, compatibility, safety and neighborhood impacts are concerns. • City changes are in effect – monitor. • Comments for future consideration: o Create predictable list of incentives that are by-right (approved by staff) in exchange for providing community housing benefit. o Amend utility and engineering standards to enable the creation of tiny home villages. o Evaluate reasons why mobile home parks are not being built or updated, consider adjustments to the building codes, engineering standards and UDC to encourage. Short Term Rental (STR) Regulations* Prohibiting or limited the use of homes for STR in specified neighborhoods or zones; placing resident-occupancy requirements on units that are rented short-term (e.g. rent bedroom only; ADU and primary home cannot both be STR; etc); require registration and charge fees; or other options. • City adopted restrictions in 2017; monitor. Housing Rehabilitation and Weatherization* Repairing, updating, enlarging, improving energy efficiency, and providing handicapped accessibility, typically with Federal or State grants with strict limitation on who can be served. Staff/time intensive. Does not increase inventory of Community Housing; rather improves the quality of the existing housing inventory. • Implementing partners: Habitat for Humanity; HRDC • Comments/benefits: o Enables people to stay in their homes. o Weatherization serves households earning <60% AMI. o Provides low interest loans to rehab homes. o Differentiate rehab (e.g. The Boulevards) from weatherization. o Keep – it’s a good thing. Self Help Build* Homebuyers receive low interest loans and technical assistance for their construction of homes. Requires large time commitment • Implementing partner: Habitat for Humanity • Comments: o Active in the area; keep doing it. o Scalability is a problem – modest production. o Land costs are a challenge in Bozeman. 29 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 20 Senior Housing* High density, smaller, low maintenance units designed for retiring residents. • 260 affordable rentals for seniors and/or persons with disabilities exist in the City; multiple managers/providers are involved. • Comment for future: o Research full range of senior housing & service needs o Understand what is working well and not. o Expand reach of needs to more than low- income renters. • Identify partners – a leader for this program. Federal and State Grants/Loans – CDBG, HOME, USDA/Rural Development, Section 8* Federal and State grants/loans for affordable housing, generally for construction of units. These include CDBG, HOME, and USDA/Rural Development. Major federal funding cuts proposed. Can only serve low income households (<50%, 60% or 80% AMI). Competitive and complicated grant application and administration process. • Primary implementing partners: City, HRDC • Comments: o Utilized to the max right now. o Allocation process skewed toward smaller communities. Takes longer to pull required information together in larger population communities such as Bozeman. o Highly competitive. o A population >50,000 would push Bozeman to an “Entitlement Community” status, which would increase availability and provide direct access to funding sources. 30 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 21 Other Strategies Reviewed – For Future Consideration HOUSING PROGRAMS • Construction Education Extension • Public Sector Development Work with local education system (high school technical extension, community colleges, post-secondary education) to provide training in the construction trades industry. Initiating, designing, financing and constructing dwelling units by municipalities, counties and/or housing authorities. Similar to developing other public infrastructure. • Shortage of construction labor – program can help build local labor/expertise. • High school and MSU as potential partners. • Requires public sector capacity and specific expertise. • Has financial risk. FUNDING • Construction & Debt Financing with Favorable Terms • Private Donations/Grants • Special Improvement District • Opportunity Zones Low interest loans, tax exempt bonds, certificates of participation and other forms of development financing available to housing authorities, cities, counties and some non profits to develop housing. Tax deductible contributions to a non-profit organization, which purchases or develops housing. Competes with other charitable causes. Special Improvement Districts (SIDs) are typically formed to fund public improvements, typically infrastructure (roads, sewer, etc.) or maintenance of City facilities or services. Costs are distributed across the properties within the SID that benefit from the improvements. Use specifically for housing is not common. The Opportunity Zones investment incentive was established in 2017 to encourage long-term private investments in low-income communities. Opportunity Zones are eligible to receive private investments through opportunity funds in the Bozeman area. The program does not explicitly address below-market community housing but may be designed to do so. • Favorable terms include 90% LTV (loan to value) and 30-40 year amortization. • Create a pot of money to use and leverage. • Interest rates are currently low; more effective in high-interest rate environment. • Donations to non-profit builders. • Philanthropic grants. • Consider a city-wide special improvement district. • Requires approval by 60% of the property owners in the proposed district. • System in place. • State regulations may be a challenge. • Not recommended for immediate use – new, untested, and complex. • Need education. • Economic Development tool, does not have any affordability incentives or controls. • City’s AHO could require some community housing in opportunity zones • Tax credit projects get an equity boost in Opportunity Zones. 31 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 22 Other Strategies Reviewed – For Future Consideration (Continued) PRESERVATION • No Net Loss • Condominium Conversion Policy • Deed Restriction – Local Preference • Acquisition of Market Units Requires replacement of below-market dwellings occupied by residents when redevelopment occurs. Similarly-priced units should be replaced on site or another site, or a fee-in-lieu of replacement could be allowed. Demolition tax can be used to fund replacement. Limiting or prohibiting conversion of apartments to condominiums to retain rental housing. May require some portion of converted units to be restricted community housing or provide first right of refusal of sales to apartment occupants, among other conditions. Some impose a conversion fee that goes into a housing fund. A deed restriction can be structured to give occupancy priority to certain households, as long as the priority does not discriminate against protected classes (race, color, religion, sex, handicap, familial status, national origin and, generally, source of income) in violation of the Fair Housing Act. Common preferences include employees that are working a certain number of hours in the community, employees that have worked a certain number of years in the community, and critical employees such as emergency service providers. Usually involves investing public funds to lower the sales price in exchange for restricted community housing. Inability to obtain condo mortgages can result in units being rented. Public sector purchases can drive up prices for low-end market units. • A demolition fee was discussed in the ”Funding” strategy session. • Homes transition from serving lower incomes to higher incomes – red to green on the bridge. • Some demolition and redevelopment is good. • Provide plan for displaced individuals. • Disincentivizes rehabilitation and redevelopment. • Must define substandard/unsafe housing that is best removed/redeveloped. • A conversion fee was discussed in the “Funding” strategy session. • Converted apartments to condominiums can create an entry level homeownership opportunity. • Conversions from apartments to condominiums are overseen by the state – would need to establish a city tracking system. • Big Sky requires 1590 hours of employment in community. • Be careful to not discriminate against “new locals.” • More bang for your buck with other options. 32 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 23 Other Strategies Reviewed – For Future Consideration (Continued) REGULATIONS • Annexation Policies • Residential Linkage Negotiating restricted community housing as part of annexation agreements. Policy based. Entities have discretion in negotiations. This is a widespread practice among communities with community housing programs. Requires new residential development to provide housing or pay fees for a portion of employees needed to fill the new jobs generated by the development. Nexus Study required. Mitigation rate often increases with house size. Fluctuates with building activity. • Could apply to County “donuts” within the City. • Consider if commercial linkage is applied. Ensure all type of development contributes to community housing impacts, not just one group. Providing additional density in exchange for community housing. Must be large enough to entice development yet small enough for livability and compatibility. Not effective if existing zoned densities are high (e.g. when zoned at a level where developers have trouble building to existing densities). Gives priority to developments that include community housing. May include expedited approval; help navigating entitlements (ombudsman approach). • Parking will be of concern if more density allowed in some areas. • May need to modify existing densities for bonuses to be effective. City currently has density minimums in all residential districts in place. • Need more staff capacity in order to fast track applications. • Potential for discontent among market rate developers if other projects move ahead. 33 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 24 3. Core Components The Bozeman region has several programs, organizations and structures in place that are addressing community housing needs. This Action Plan presents the ability to evolve the housing program to better meet the needs of residents and employees by creating, strengthening and defining a partnership framework to address housing needs. This will allow Bozeman to leverage resources and capacity throughout the community and region. We recognize that programmatically and administratively, this requires additional capacity to manage an inventory of permanently restricted housing. Core components are the tasks and structures needed to ensure that the partners and Plan continue to move forward. To ensure support and continuation of this partnership, a sound administrative structure needs to be established, along with housing program support to manage community housing that is produced through this Plan. Most of this structure needs to be in place within the first two-years of Action Plan implementation, as shown below. Core Components Timeline *Darker blue = the action phase for each element; lighter blue = on-going phase. CORE COMPONENTS LONGER TERM Quarter 3 4 1 2 3 4 1 2 3 4 2022+ 1. Action Plan Administration 2. Action Plan Coordinator/Facilitator - Action Plan to Work Plan 3. Housing Program Management Housing guidelines Deed restrictions (permanent) Unit management/housekeeping Inventory tracking 2019 2020 2021 34 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 25 Each item is generally defined below, followed by the recommended implementation for each core component. For more detail, please reference the Technical Documentation for this Action Plan: 1. Action Plan Administration – includes procuring and managing the budget and staff to implement the Plan. The first steps of administration will be to: o Submit the Action Plan for acceptance by the City Commission; o Present the Plan to Gallatin County for recognition; o Budget for 3 years of implementation (staff, contractors, etc.); and o Evaluate existing community housing program management (housing guidelines, deed restrictions-permanent, unit management, inventory tracking, etc.) and consider adjustment to meet community housing objectives. 2. Identify Action Plan Partner Coordinator—identifying a staff person/contractor who will serve as the convener of the Action Plan to assist with a regular meeting schedule (quarterly to begin) to track progress, learn of partner successes and challenges, and gather information for potential Plan modifications. • Staff for this position could either be: 1) City of Bozeman Affordable Housing Manager, 2) Contractor with City, or 3) Contractor with another entity, such as the Bozeman Community Foundation. • Role of coordinator: o Facilitation of partner meetings (at least quarterly to begin); o Summarize and advertise the “collective impact” of Action Plan partners (update quarterly and track and advertise through a published “Placemat” document or website); o Public outreach/communications tasks; o Partnership Development to build capacity of existing partners and recommend and bring in new partners; o Project management: work with partners on teams to implement strategies (research, facilitate teams, data analysis, outreach, etc.); and o Work Plan development: Concurrently, the coordinator would work with each Action Plan partner to take steps to develop a work plan for community housing from identified roles and tasks in the Action Plan. At the city, this would include, for example, incorporating the Plan into any Memorandums of Understanding (MOU) or contracts for implementation with supporting partners, as well as prioritizing strategies for which the City has a role and identifying capacity and next steps for implementation. 35 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 26 Action Plan to Work Plan Graphic Bozeman Community Housing Action Plan CITY AH PROGRAM MANAGER CITY CONTRACT COMMUNITY FOUNDATION ACTION PLAN WORK PLAN Community City County HRDC Habitat for Humanity School District Building Industry Chamber of Commerce 36 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration 27 3. Community Housing Program Management – ensuring clear tracking, monitoring and management of units to retain community housing goals: a. Housing guidelines – providing information on community housing development specifications, affordability levels, ownership and rental qualification procedures, sale/resale and rental standards, compliance and grievance processes, unit management, etc. The City and HRDC has guidelines in place; ensuring compatibility with new permanent affordability deed restrictions will be needed. b. Deed restriction (permanent) – ensuring consistency, clarity, and that community housing goals are met, which means preserving affordability in perpetuity for community housing produced. c. Unit management/housekeeping – having a central structure in place to monitor and manage the sales/rental occupancy, qualifications, maintenance, compliance monitoring, waitlists, etc. of community housing units. This oversight will require additional capacity as the inventory of homes expands. d. Inventory tracking – maintaining a database of deed-restricted rental and ownership units to track their effectiveness, continued affordability, turnover, and occupancy to ensure the housing program and units are meeting goals. HRDC has acquired HomeKeeper, a deed restricted housing tracking program, that can be very effective for this purpose. 37 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration A-1 APPENDIX A – Action Plan Process, Definitions and Acknowledgements Community Housing Action Plan Process The Action Plan process began with an update to the “2012 Affordable Housing Needs Assessment for the City of Bozeman, Montana,” to: • Identify how much, what type, at which price points, and for whom community housing is needed both currently and projected over the next five years; • Inventory existing resources and capacity; and • Understand current housing achievements. 38 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration A-2 Using the 2019 City of Bozeman Community Housing Needs Assessment report and employer survey as the foundation, the Bozeman Community Housing Action Plan process kicked off in May 2019. The process included six work sessions with the Housing Working Group over a six-month period, two public open houses and online participation opportunities for public input. The consultant team provided technical assistance and expertise on housing solutions in the intermountain west and, guided by a professional facilitator, worked with the over twenty (20) community members comprising the Housing Working Group to decide upon and craft strategies to make the Plan “Bozeman.” Input from the public helped ground the approach through open house and online opportunities for participation. Throughout this process, the community drove the Plan’s priorities and development, resulting in the Bozeman Community Housing Action Plan. More specifically, the process: • Began with an overview of key findings from the 2019 City of Bozeman Community Housing Needs Assessment and employer survey to shape initial goals and priorities for the community housing Action Plan. The public weighed in at the first open house and online regarding community housing objectives; Housing Working Group members were additionally presented with information on the necessary components of successful housing programs; core needs for housing plan implementation; and how other communities have been addressing similar housing challenges. • At the second session, the Housing Working Group was presented with near 40 tools that other communities have used to address community housing needs. Through input from the consultants and discussion among the Group, the Housing Working Group prioritized tools they felt would be most effective for Bozeman. • The Housing Working Group then spent two technical work sessions on the prioritized tools to develop action strategies. Through this process, the Housing Working Group learned about best practices in comparable communities, developed strategies, and discussed roles and responsibilities for implementation. The outcome of these sessions was presented to the public in a second open house to evaluate priorities and get input on drafted actions. • The final session modified the actions and priorities pursuant to public input received. Objectives were revaluated; a timeline for prioritized action strategies was developed; and roles and responsibilities were identified among the various partners to implement the Plan. 39 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration A-3 Definitions The following definitions are provided and coincide with those used in the City of Bozeman Community Housing Needs Assessment (February 2019). Affordable housing – As used in this report, housing is affordable if the monthly rent or mortgage payment is equal to or less than 30% of gross household income (before taxes). Area Median Income (AMI) – A term that generally refers to the median incomes published annually for counties by the US Department of Housing and Urban Development (HUD). AMI varies by household size. AMI is used to set income and rent limits for housing programs statutorily linked to HUD income limits (e.g. low-income housing tax credit rentals). Community Housing – Homes that those who live and work in Bozeman can afford to purchase or rent. This includes apartments, townhomes, condominiums, emergency shelters, accessory dwelling units, mobile homes and single-family homes – all dwelling types – serving the entire spectrum of housing needs. The report City of Bozeman Community Housing Needs Assessment (February 2019) identifies community housing needs in Bozeman in 2019 through 2025. Community Housing Action Plan – A partnership framework with actionable strategies to increase the inventory of community housing – dwellings that Bozemanites can afford to purchase or rent. Missing Middle – Generally refers to ownership housing needed for residents and employees earning over 80% AMI, yet that cannot afford market-rate housing. In Bozeman, this generally refers to households earning between about 80% AMI up to 150% AMI (an average-sized 2.0-person household earning between $55,700 to $104,400 per year). 40 Bozeman Community Housing Action Plan – April 9, 2020 Amended Version WSW Consulting, Inc.; Navigate, LLC.; Freshtracks Collaboration A-4 Acknowledgements We would like to thank everyone who gave their time and assistance to create the Bozeman Community Housing Action Plan. Input from local employers, Realtors, developers, end-users, lenders, and property managers (through targeted interviews and focus group meetings) and 491 businesses or about 10% of all businesses in the City of Bozeman (through an employer survey), were central to identifying the community housing needs and several strategies that are the focus of this Plan. Development of the Plan relied on funding from the City of Bozeman and philanthropy along with extensive participation from the City of Bozeman staff and community stakeholders, leaders, and residents that formed the Housing Working Group: Bozeman Community Housing Action Plan Working Group *Many working group members are affiliated with multiple organizations in Bozeman. Only the primary affiliation of each member is listed above. We cannot thank the community enough for the wealth of insight and experience they brought to this process. The Bozeman Community Housing Action Plan would not exist without this broad and extensive participation. NAME AFFILIATION Bill Fiedler & Penny Zacharisen (Alt)Chamber of Commerce Brian Popiel SWMBIA Bridget Wilkinson Bozeman Area Community Foundation Connie Campbell-Pearson Gallatin Valley Interfaith Association David Magistrelli Habitat for Humanity Desiree Smith Bank of Bozeman/Residential Lending Ellen Beck Gallatin Association of Realtors Erik Nelson ThinkTank/Development Jason Smith Bozeman Health Karin Jennings West Paw/Manufacturing Kathi Thorson Legacy Properties/Property Management Kevin Thane CAHAB Lila Fleishman & Brian Guyer (Alt)Missing Middle Loren Olsen & Marty Madsen City Staff Mathieu Menard Gallatin County Planner Pat Strauss Bozeman School District Paul Reichert Prospera Rob Pertzborn Intrinsik/Achitect Scott MacFarlane Gallatin County Commission Susan Riggs & Chris Naumann (Alt)Downtown Partnership Terry Cunningham City Commission Tracy Ellig & Michael Becker (Alt)Montana State University Tracy Menuez HRDC 41 Gallatin County Regional Housing Study Summer 2021 42 Gallatin County Regional Housing Study | July 2021 2 | Intro With a robust economy and wide attraction to those who love the outdoors, Gallatin County, Montana has experienced rapid growth over the past decade, growing jobs at nearly 4% per year and population approaching 3% per year prior to the COVID pandemic in 2020. While jobs declined beginning March 2020, following the national trend due to COVID public health orders, recovery since then has been rapid. And the housing market experienced the opposite effect – a rapid influx of visitors and new residents seeking less populated areas and taking advantage of the increased ability to work from home. This situation has only exacerbated an already prevalent housing shortage problem for residents and employees making their living in Gallatin County. This document highlights many of those challenges and provides information and ideas by which the region can move forward together to address these challenges. The following pages provide a point in time overview of the local economy, housing markets, and community housing needs, illustrating key housing and jobs information for each primary community area and the connections between them. This document should help: •Create a common understanding of countywide housing needs and the interrelationship of each county region in providing homes for residents; •Elevate the region’s understanding of employee and resident housing basics, including how to communicate effectively about housing issues; •Educate and motivate regional coordination among local governments and key stakeholders around resident and employee housing issues in Gallatin County; •Provide the necessary baseline of data and information to promote meaningful regional housing discussions; and •Help the region understand how they can work to address challenges and craft solutions. Table of Contents Gallatin County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 The Language of Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Identifying the Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Challenges Moving Forward . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 What Can We Do?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Next Steps. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Appendix . . . . . . . . . . . . . . . www.onevalley.org/regionalhousingstudy Introduction METHODOLOGY The report builds upon recent housing studies and housing action plans that have been conducted in Bozeman and Big Sky, supplemented with available information on all community regions in the county. It combines data from public sources with primary research from the aforementioned studies. The information is presented in two parts: •The summary report presents the big picture of housing needs and connections in the county which is intended to facilitate discussion on how to address housing in the region; and •The appendix contains more detailed data and figures that can be referenced if desired. This provides a deeper dive into the data brought forth in the summary report. 43 Gallatin County Regional Housing Study | July 2021 3 | Intro WYOMING ID A H O 0 10 20mi MeagherBroadwater Jeferson Park Madison Beaverhead Three ForksLoganManhattan Belgrade Four Corners Bozeman LivingstonGallatinGateway Big Sky West Yellowstone Belgrade CCD ManhattanCCD BozemanCCD Gallatin Gateway CCD ThreeForksCCD Big Sky and southCCD Gallatin County is the third most populous county in Montana, with approximately 120,000 people. One of the fastest growing micropolitan communities in the country, it is uniquely nestled between the Bridger Mountains in the north and the Gallatin Range and Yellowstone National Park to the south. Three Forks CCD Population � � � � � � � � � � � � � 3,000 Located 30 miles west of Bozeman the community attracts many middle income families, providing the most affordable home prices in the county. The area also has the fewest jobs in the county, which are predominately in mining, manufacturing, education and food services. Belgrade CCD Population � � � � � � � 25,000 Belgrade is the most proximate community to Bozeman and has been growing at the second fastest pace in the county. The area attracts families and some households that find homes in Bozeman too expensive. Jobs are predominately in construction, manufacturing, retail and professional services. Bozeman CCD Population � � � � � � � 50,000+ Bozeman is the county seat and the primary job center in the county. In addition to its beautiful location, the city boasts Montana State University, a robust and diverse economy, and is one of the fastest growing small cities in the United States. Manhattan CCD Population � � � � � � � � � � � � � 5,000 Manhattan is part of the Bozeman micropolitan area and includes Amsterdam -Churchhill, offering mid-rental and entry-owner households. Jobs are predominantly in agriculture, construction, education, retail and services. Gallatin Gateway CCD Population � � � � � � � � 4,800 Gallatin Gateway is twelve miles southwest of Bozeman. Housing in the community is comprised mostly of single household homes on larger lots, with a few rental opportunities in the Four Corners area. Jobs are predominately construction, retail and service, with some manufacturing. Big Sky CDP and South (incl. West Yellowstone) Population � � � � � � � � � � � � � 5,000 The southern end of the county is primarily a tourism service economy and includes the town of West Yellowstone and unincorporated community of Big Sky. Part of the Big Sky community also falls within neighboring Madison County. Gallatin County Census County Divisions (CCDs) are referenced throughout this document and are defined as areas delineated by the Census Bureau in cooperation with state, tribal, and local officials for statistical purposes. CCDs have no legal function and are not governmental units. CCD boundaries usually follow visible features and usually coincide with census tract boundaries. Census Designated Places (CDPs) are the statistical counterparts of incorporated places, and are delineated to provide data for settled concentrations of population that are identifiable by name but are not legally incorporated under the laws of the state. 44 Gallatin County Regional Housing Study | July 2021 4 | Intro Affordable Housing - Housing is affordable if the monthly rent or mortgage payment is equal to or less than 30% of gross household income (before taxes). Many people think the term “affordable housing” refers only to rental housing that is subsidized by the government. In reality, it’s a very broad term that can include housing provided by the private, public and non-profit sectors and includes all forms of housing tenure. Area Median Income (AMI) - A term that generally refers to the median incomes published annually for counties by the US Department of Housing and Urban Development (HUD). AMI is used to set income and rent limits for affordable housing programs statutorily linked to HUD income limits (e.g. low-income housing tax credit rentals). AMI varies by household size and is published each year by HUD for households at various income levels. Common affordability categories used are as follows: • Extremely Low Income – At or below 30% AMI • Very Low Income –Between 31% and 50% AMI • Low Income – From 51% to 80% AMI • Moderate Income – From 81% to 100% AMI Attainable - A term used to describe the ability of a household to enter, and graduate to successively higher levels of, the local housing market. Implicit in the usage of attainability is the idea that a range of housing options (type, size, tenure, cost) exists in the local market. Households at various income levels can find and secure (attain) suitable housing. Average household size - This refers to the number of persons living in a housing unit – includes all adults (employed or not) and children. There are about 2.0-persons per household in the city of Bozeman and 2.5 in Big Sky. Average year-round jobs - The average number of jobs available throughout the year, represented by the sum of jobs during each month (Jan. to Dec.) divided by the number of months in a year (twelve). Many employers hire for only the summer or winter seasons. Average year-round jobs condenses the fluctuation into one number for ease of reporting and to understand on average how many jobs a community supplies. Catch-up needs - The number of housing units needed to catch up to meet the current shortfall in housing available for residents. Community housing - Homes that those who live and/or work in Gallatin County can afford to purchase or rent. This includes apartments, townhomes, condominiums, emergency shelters, accessory dwelling units, mobile homes, and single- family homes—all dwelling types—serving the entire spectrum of housing needs. Community Land Trust - A community nonprofit that owns land, develops housing and provides long-term stewardship for permanent affordability through long-term ground leases. Typically, single household or townhomes for moderate and middle- income households. Cost Burdened - When housing costs exceed 30% of a household’s gross (pretax) income. Housing costs include rent or mortgage and may or may not include utilities, homeowner association fees, transportation or other necessary costs depending upon its application. Households are severely cost- burdened when housing costs comprises 50% or more of gross income. Deed Restriction - A mechanism recorded on a property to keep a housing unit out of the speculative market. Often used to protect the investment in and preserve the long-term affordability of units priced below below-market levels through a public or philanthropic subsidy, or government regulation (I.e. density bonus, reduced parking standards, impact fee waiver). Employee (or workforce) housing - Housing intended for employees earning local wages. Places to live may or may not be rented or sold at below market rates and can serve a range of household income levels. Housing unit - A residential unit such as a house, apartment, mobile home, or group of rooms, where a person or family eat, live and sleep. Household - One or several persons who live in the same dwelling and share meals. It may consist of a family or another group of people. In-commuter - Refers to an employee that works in a community, but that lives outside the community and must travel into the community for work. Occupied housing unit - Occupied housing unit means housing units that are occupied by persons that consider a community as their usual place of residence or that have no usual place of residence elsewhere. (US Census definition). Occupied units are also referred to as resident households in this report. Seasonal job - A job that lasts only during one season. Seasonal resident employee - An employee that lives in a community or elsewhere in the region for only part of the year and is employed in that community. These may be persons that are recruited from outside the area to fill seasonal jobs. Subsidy - A financial or regulatory investment to help bridge the capital gap between the cost to produce housing and what a household can afford to pay. Transitional and emergency housing - Safe and supportive places to live for those who are temporarily in need of shelter while they secure longer term housing. Workforce - The people engaged in or available for work. Year-round job - A job that lasts throughout the year, with no starting or ending date tied to the seasons. The Language of Housing This report uses a variety of terms in relation to housing, but there is not a standard housing language. This alone is a challenge when addressing the housing needs within the Gallatin County community. The following list of terms will hopefully establish a baseline of definitions for Gallatin County. 45 Gallatin County Regional Housing Study | July 2021 5 | Identifying the Problem Identifying the Problem Jobs & Housing Housing Affordability Community Impact • Jobs and housing are not evenly distributed within the county, with some areas housing more workers than providing jobs, and other areas relying on commuters to fill jobs. • The imbalance is increased when you see that the growth in housing units has not been keeping up with job growth – creating more of a housing shortage. • The imbalance causes housing prices to rise, meaning the wages paid in the area have trouble keeping up. • The lack of diversity of home types mean that there are few lower priced options for local workers to afford and for residents to move into when their life circumstances change. • With the low unemployment rate, if these trends continue, even more people will need to commute for work or crowd into homes to afford them locally. • The increase in home sale prices and rents in Gallatin County has been far outpacing the rise in wages, meaning that homes are becoming more unaffordable for people earning their living in the county. • Most renters need homes priced under 100% AMI; there is a large shortage of ownership homes priced between 80% and 150% AMI for first time buyers in particular to purchase; and the vast majority of homes available for sale are priced for households earning 150% AMI or more. • The affordability level varies by community, with the median sale price of single family homes in Greater Three Forks falling around 100% AMI, up to over 150% AMI in Bozeman and Big Sky. • Attached homes offer more affordable options, but are of limited supply in most communities. • With the rising home prices and comparatively low wages, about 50% of renters and 24% of owners are cost-burdened by their housing payment. • In the effort to find homes they can afford, households search for opportunities away from their place of work, adding significant commuting costs to many households. • The imbalance between where jobs are located and where homes exist means that workers in Bozeman need to seek homes in other places, such as Belgrade, who then push Belgrade workers to live in Three Forks, for example. • As jobs continue to grow, there will be more demand for housing. This demand will vary depending on whether the region desires to retain the current commuting patterns, or communities desire to house more of their workers locally by ensuring housing is available at a pace and price needed by new workers. The following section provides a point in time overview of the current status of jobs, housing, and impact to the community. Key points to note are listed below. 46 Gallatin County Regional Housing Study | July 2021 6 | Identifying the Problem Jobs & Housing 0 10 20mi Belgrade CCD ManhattanCCD BozemanCCD Gallatin Gateway CCD ThreeForksCCD Big Sky and southCCD Three Forks Manhattan Belgrade Bozeman GallatinGateway Big Sky Commute into community area for work Live and work in community area Commute out of community area for work 4% 8% Big Sky CDP and south 3%5% Gallatin Gateway CCD 58% 69% Bozeman CCD 3% 1% Three Forks CCD 17% 25%Belgrade CCD 5% 3%Manhattan CCD The labor force is in short supply in Gallatin County. As businesses recover from COVID, job opportunities will increase, but these same businesses will face increasing difficulty in filling positions due to low unemployment rates and wage needs to meet the cost of living here. The information on this page is point in time data, May 2021. Wages $56,200/year professional position $24,300/year service industry $51,390/year average wage in Gallatin County The natural rate of unemployment is the unemployment rate that would exist in a healthy economy operating at its full potential. What does unemployment less than 4.4% mean for a community? • Labor pool may not have requisite skills. • Wage wars and moving vacant positions result when businesses compete for the same skilled labor force. • Business expense of turnover. • The expense of moving and tight housing affects businesses ability to attract employees from outside the area to fill jobs. “I have had to raise wages to get employees so that they can afford to live here. The down side to that is that I have had to raise my rates and have lost customers that can no longer afford my services.” –2018 Employer Survey comments Where are the jobs and households located in Gallatin County? 4.1% increase in average wages/year Unemployment 3�0%Unemployment rate in Gallatin County� 4�4% Natural unemployment rate nationwide* *Estimate from the Congressional Budget Office 40% of jobs in Gallatin County pay above the average wage. 60% of jobs in Gallatin County pay below the average wage. Housing Unit Breakdown 59% Single-family housing units Detached units on a lot. 34% - Multi-family housing units Townhome, condo, duplex, apartments, all attached housing units. The majority (81%) of multi-family homes are found in Bozeman and Big Sky. 7% - Other Mobile home, boat, RV, van, etc. 97% of “other” units are mobile homes, which are movable manufactured homes that are design to be towed and do not need a permanent foundation. 34%59% 7% Growth Rate Jobs and housing unit growth rates are not on the same path. Households Jobs 47,500 households in Gallatin County 92,000 jobs in Gallatin County Housing Units + 2 % / year Jobs +3 �9%/year TimeGrowth Rate47 Gallatin County Regional Housing Study | July 2021 7 | Identifying the ProblemELIGIBLE FOR FEDERAL SUB S ID IE S ADDRESSED BY LOCAL SUBSIDY PR O VID E D B Y CURRENT MARKET24%6%27%12%16%11% 10% 10% 6% 9%7 % 1 4 %10%38%% of Owner Population% of Renter Population30%AMI 60%AMI 80%AMI 100%AMI 120%AMI 150%AMI 180%AMI TransitionalandEmergencyHousing Deeply Subsidized Rentals SubsidizedRentals Luxury Rentals/Ownership Market RateRentals/Ownership Market Rentals/SubsidizedHomeownership Very Low Income$24,000 Low Income$49,000 Moderate Income$65,000 Middle Income$81,000 Upper MiddleIncome$98,000 Upper Income$122,000 HighIncome>$122,000 Housing Affordability The balance between what a household earns and what housing costs is a struggle in Gallatin County. The common questions asked are: “Can I afford to live here? And if so, where and for how long?” Housing Affordability by Area Median Income (AMI) In order to afford a Single Family Home In order to afford a Condo/Townhome In order to afford rent 3 full-time professional wages 6.8full-time service industry wages or 1.8 full-time professional wages 4.3full-time service industry wages or 1 full-time professional wages 2.4full-time service industry wages or Housing Costs in Gallatin County (January - May 2021) $1,450/mo Median monthly rent advertised for a housing unit in Gallatin County in Dec. 2020. ($58,000 is the income needed to afford the average rent.) $648,000 Median sale price of a single-family home in Gallatin County in 2021. ($166,000 is the income needed to afford a median single-family home.) FORRENT $402,850 Median sale price for condo/townhome in Gallatin County in 2021. ($103,000 is the income needed to afford a median condo/townhome.) Buying Renting FORSALE Growth Rate Wages, housing prices, and rental rates are not on the same path. Rental Rat e s + 5 �2 %/year Wages +4 �1%/year Home S al e Pri c e + 9 �5%/year “There is a severe lack of homes being built that are starter homes. Two bedrooms, with living and storage space (ideally a garage). Something where a young couple can afford to start their lives together.” –Survey comment “There are no homes in my price range. Have tried to buy twice but offer not high enough.” –Survey comment **Based on 3-person household TimeGrowth Rate48 Gallatin County Regional Housing Study | July 2021 8 | Identifying the Problem Community Impact The high cost of housing compared to wages and incomes means households struggle to afford a roof over their head as well as other life necessities. Those who must commute to find and afford homes face significant additional expense, not to mention stress and delays in bad weather. Cost Burden Cost burden is defined as paying more than 30% of household income for housing (rent or mortgage, plus utilities). Exceeding 30% means households have insufficient income for life necessities including food, clothing, transportation and health care. 50% of RENTERS in Gallatin County are cost burdened� 24% of HOME OWNERS in Gallatin County are cost burdened� “Everyone wants to live in Bozeman but find the cost of living to be too high. The answer is to live nearby but when all the money is going to housing and the cost of commuting there is not money to make needed repairs to their vehicles.” –2018 Employer Survey comments (Bozeman) CommutingFuture Needs Jobs are projected to grow 2.2%/year through 2026 (an increase of 13,132 jobs in Gallatin County) Bozeman to Big Sky 88 mi RT $50 RT ($1,083/month) Belgrade to Bozeman 22 mi RT $12 RT ($269/month)Three Forks to Bozeman 62 mi RT $35 RT ($754/month) Three Forks Belgrade Bozeman Big Sky Cost to Commute* * Based on IRS rate of $.56/mile. Excludes other costs of commuting: lost wages (pay/hr. commuting), loss time with family/rest, stress. RT=round trip 0 10 20mi Belgrade CCD ManhattanCCD BozemanCCDGallatin Gateway CCD ThreeForksCCD Big Sky and southCCD Three Forks Manhattan Belgrade Bozeman GallatinGateway Big Sky Commute into community area for work Live and work in community area Commute out of community area for work 2,306 1,778 813 Big Sky and south CCD 1,616 342 2,387 Gallatin Gateway CCD 20,010 21,730 10,720 Bozeman CCD 583 252 1,004 Three Forks CCD 6,004 4,045 11,578 Belgrade CCD 1,003 570 1,969 Manhattan CCD COMMUTING IMPACTS ON EMPLOYEES • Time and cost of commuting. • Weather, accidents, and other delays result in tardiness, absences, stress. • Unpredictable bus schedulesand capacity. COMMUTING IMPACTS ON EMPLOYERS • Loss of employees to jobs found closer to their home. • Increased employee tardiness, absences, turnover and resulting lower level of service. • Cost of turnover, training and/orvacant jobs. COMMUTE INTO community area for work LIVE AND WORK in community area COMMUTE OUT OF community area for work Commuting is a result of heavy job centers (Bozeman and Big Sky) and heavy housing centers (rest of the communities). 6,815 additional, new housing units are needed to accommodate the increase in jobs� This is in addition to the housing needs we have currently� 49 Gallatin County Regional Housing Study | July 2021 9 | Challenges Moving Forward Employer Needs and Involvement Businesses cannot function if employees cannot find homes� Some employers are helping with housing; more opportunities can be explored� State Restrictions State statutes limit local options to pay for and address housing needs� Challenges Moving Forward Cost of Construction/ Construction Challenges $225/sq� ft� to construct, excluding design, land, and process fees; too expensive for locals� Housing Inventory Over 6,800 homes are needed by 2026 for residents and employees, most (60%) priced below market prices� 50 Gallatin County Regional Housing Study | July 2021 10 | Challenges Moving Forward Development Costs Money Developers rely on loans and other funding sources to pay for construction. They are available only if enough revenue can come back to the developer after construction is complete to pay them back. If costs of construction go up, the amount needed to show a profit goes up, which then drives up the sale/rental price. Cost of Construction/Construction Challenges Cost to build: + soft costs: design/permits/fees + infrastructure cost + land cost + construction cost A capital gap is when the cost to develop housing is greater than what a household can afford to pay to cover all the development costs. Public and/or philanthropic funds used to fill the capital gap are often referred to as subsidies. Single Family Home (1,500 sq� ft�) Capital Gap Examples (for new construction) Construction Cost Factors • Acquisition cost (land) • Developer fee (cost of doing business) • Design fees • Construction loan interest • Permanent financing fees • Reserves • Project management fees • Cost and availability of materials • Cost and availability of labor • Potential revenue post construction • Cost of operation (apartment rental building) Cost to build: $798,500 Affordable purchase price: $338,200 @100% AMI $460,300Community Investment/Assistance Needed Cost to build: $438,000 Townhome Multi-Family (rental units) Cost to build: $11,900,000* *For this illustration, we assume this is a 30-unit building, units are 2 bedroom each at 850 ft2 total. Total annual rent (income) . . .$594,000 Annual operating costs . . . . . .$72,000 Net operating income (NOI). . .$522,000 NOI supported debt . . . . . $11,200,000 $99,800Community Investment/Assistance Needed $23,333 per unit Community Investment/Assistance Needed Affordable purchase price: $338,200 @100% AMI Affordable rent per unit: $1,650/mo. @80% AMI Capital Gap Equation 51 Gallatin County Regional Housing Study | July 2021 11 | Challenges Moving Forward Employer Needs and Involvement Employers, Employees, and Housing Jobs, employees, housing, and businesses are all tied together. In order for a business to have employees, those employees must have housing. “We could not function without the housing that we provide for our employees.” -Local employer Employee Housing Job Businesseskept open PROGRAM OPTIONS Housing Search Assistance • Help applying for income-restricted rentals (for those that qualify) • “Employees leasing to employees” rental inventory • Realtor contacts to help employees learn neighborhoods and research homes • Property manager list and contacts Housing Unit Inventory • Purchase units (allows employer to control rents, lease terms (pets), etc.) • Lease/master-lease agreements (easier to dispose of if no longer needed) • Invest in new construction (rentals or ownership) • Hotel or dorm options for short-term/emergency needs • Temporary housing options - tiny home villages, RV lots Renter Assistance Programs • First/last/deposit assistance • Housing (rent) stipend • Utility assistance/emergency needs (medical bills, etc.) • Moving expenses/relocation assistance Ownership Programs • Down payment assistance for first time homebuyers or move-up buyers • Purchase a deed restriction from new or existing homebuyer • Homebuyer education/financial counseling • Home renovation/repair/rehabilitation support • Housing stipend • Low interest refinancing opportunities • Utility assistance/emergency needs (medical bills, etc.) • Moving expenses/relocation assistance Commuting Costs • Mileage reimbursement/travel stipend • Compensation for drive time Other Assistance • Student loan forgiveness • Childcare and tutoring/homeschooling assistance • Food or grocery discounts • Utility/emergency need assistance • Improved transit/transit options/passes • Insurance - medical, house/fire, pet Options for Employer Involvement Of that 29%: 79% pay higher wages than competitors 9% provide employer owned rentals for employees to use 4% offer master-leased housing for employees 8% offer temporary/relocation housing assistance for new hires or other employees 9% provide financial assistance to help with rent/move-in 4% provide assistance with down payments/mortgages According to a 2018 City of Bozeman Employer Survey, about 29% of employers indicated they have been assisting their employees with housing� Employers are responding 52 Gallatin County Regional Housing Study | July 2021 12 | Challenges Moving Forward State RestrictionsHousing Inventory 0 10 20mi Belgrade CCD ManhattanCCD BozemanCCD Gallatin Gateway CCD ThreeForksCCD Big Sky and southCCD Three Forks Manhattan Belgrade Bozeman GallatinGateway Big Sky 333 522Big Sky CDP and south 310 219Gallatin Gateway CCD 3,951 4,678Bozeman CCD 217 94Three Forks CCD 1,677 1,126 Belgrade CCD 326 176Manhattan CCD Based on current household distribution Based on jobs distribution How many housing units are needed? Current product being produced is targeted to higher income households. We need to produce homes that community members can afford� STATE RESTRICTIONS ON TAXES Allowed Not Allowed • Property tax • Lodging (restricted) • Short-term rental fee •Unit demolition or conversion fees •Sales tax •Real estate transfer tax* •Excise tax •Vacancy tax *A 2010 Montana constitutional amendment specifically prohibits taxing real estate transfers. State Restrictions on Local Communities These restrictions inhibit the ability for communities to raise revenue to dedicate toward housing affordability. Anything that is deemed to interfere with the landlord/tenant relationship is explicitly not allowed. • No rent control • No luxury taxes • No higher taxes on second home or out of state owners • No real estate transfer tax • No inclusionary zoning • No property tax increase protections for current residents In addition to the above opportunities we also have the following: Employer assisted housing in Big Sky. . . . . . . . . . . .approx. 1,400 units MSU student housing in Bozeman . . . . . . . . . .approx. 5,200 units Transitional and Emergency Housing . . . . . . . . .see appendix Where is community housing located?Ownership Rental Three Forks CCD 0 0 Manhattan CCD 0 16 Gallatin Gateway CCD 0 0 Big Sky CDP and south 59 55 Belgrade CCD 23 97 Bozeman CCD 162 940 Total 244 1,117 Subsidized Community Housing These units require philanthropic or public investment, a subsidy, to bridge the capital gap between the cost to produce the home and what a household can afford to pay. To protect this investment and keep the homes out of the speculative housing market, they come with eligibility criteria such as age, disability, or income. Organizations manage subsidized units to ensure the homes are used as intended, such as qualifying households to purchase or rent the home, annually confirming eligibility to occupy, etc. This management responsibility is often called stewardship. 53 Gallatin County Regional Housing Study | July 2021 13 | What Can We Do? Pending Developments What Can We Do? Current Programs Strategies Collaboration Communities need to look at solutions outside of the silos of their boundaries. Working together with other cities, county, state, and partners to solve the bigger issue is where solutions lie. • Education and understanding of the issue and the causes from a regional standpoint • Influence from the top down within the state • Partnerships and coordination of efforts 54 Gallatin County Regional Housing Study | July 2021 14 | What Can We Do? Current Programs There are a variety of programs available. Determine which program provides the assistance needed. Determine qualification needs. Each program has specific guidelines for applying and required documentation. The application process takes time. Is there housing available for applicants? The system has been navigated, housing is available, assistance provided. Current Programs County-wide: • HRDC • Habitat for Humanity of Gallatin Valley • HAVEN • Headwaters Community Housing Trust Bozeman based: • Family Promise • City of Bozeman Big Sky based: • Big Sky Community Housing Trust How are they Helping? Assisting with temporary and transitional shelter, regular housing (defined as rentals), and home ownership. Home Ownership Assistance • Dwellings built: - 224 homes - 1,117 rental units Who Are They Helping? The below 30% AMI to 100% AMI range, which is only reaching the very low end of the middle income group (100-120% AMI). Navigating the System Agencies and systems are in place to help people with housing and home ownership. Programs Knowledge Qualifications Navigation Time Availability Payout There are many organizations that are providing resource and programs to address housing needs for special needs, low-income households, and other households throughout the county. These organizations have a collaborative relationship, joining resources where helpful to improve service. HRDC 0-120% AMI (rental & ownership) Habitat for Humanity 60% AMI (ownership) City of Bozeman 0-120% AMI (rental & ownership) Family Promise 30% AMI (rental) HAVEN 30% AMI (rental) Reach 30% AMI (rental) Headwaters Community Housing Trust 60-120% AMI (ownership) Big Sky Community Housing Trust 60-120% ami (rental & ownership)ELIGIBLE FOR FEDERAL SUB SID IES ADDRESSED BY LOCAL SUBSIDY PR O VID E D B Y CURRENT MARKET24%6%27%12%16% 11% 10% 10% 6% 9%7 % 1 4 %10%38%% of Owner Population% of Renter Population30%AMI 60%AMI 80%AMI 100%AMI 120%AMI 150%AMI 180%AMI TransitionalandEmergencyHousing Deeply Subsidized Rentals SubsidizedRentals Luxury Rentals/Ownership Market RateRentals/Ownership Market Rentals/SubsidizedHomeownership Very Low Income$24,000 Low Income$49,000 Moderate Income$65,000 Middle Income$81,000 Upper MiddleIncome$98,000 Upper Income$122,000 High Income>$122,000 Housing assistance is provided throughout Gallatin County via a few organizations and their programs. Some of these also serve neighboring counties. Fewer than 200 homes purchased in Gallatin County are assisted through these organizations. 55 Gallatin County Regional Housing Study | July 2021 15 | What Can We Do? Pending Housing Development *This data was obtained from planning departments of incorporated areas of Gallatin County. Unincorporated areas of Gallatin County are regulated by the State of Montana and related data was not available. Even the shown data comes with a caution from the sources that providedinformation. Accurate projections of units that will be constructed will change over time as the development of housing from concept to completion of construction can take many years and plans often change through the course of seeking rights to build. Look around and you will see construction almost everywhere. But the construction market is volatile with costs rapidly escalating due to many factors including material and labor shortages. While this summary shows known pending developments, many could be put on hold or canceled. Special Needs Housing and Shelter in the Works There are several developments in the pipeline that address special needs and emergency shelters. These include: • Housing First Transitional Housing: 19 single detached tiny homes • Community First: 170 shelter beds • Blueprint Homes: 2 group living for teens Below Market Rate Housing in the Works There are several homes under construction that will meet the housing needs of low and middle income households. These include: Bridger View Redevelopment (currently under construction) 31 permanently restricted homes for purchase by middle- income residents. Timber Ridge Apartments: 30 rental homes for seniors with a household income of less than 60% AMI. Bozeman Co-Housing (in planning review): 46 condominiums, privately owned homes designed around shared common areas for a strong sense of community and social engagement. Arrowleaf (under construction): 232 units in a low income housing tax (LIHTC) apartment complex for households earning less than 60% AMI. 0 10 20mi Belgrade CCD ManhattanCCD BozemanCCDGallatin Gateway CCD ThreeForksCCD Big Sky and southCCD Three Forks Manhattan Belgrade Bozeman GallatinGateway Big Sky Housing Unit Types There are approximately 1,200 units under construction with over 950 of these units designated as rental units**. Data shows a trend toward more rental product than ownership, with 4,367 rental apartments in the pipeline and 962 under construction. The majority of these units are market rate, which tend to serve households below median incomes in a stable rental market. There are also 232 Low Income Housing Tax Credit (LIHTC) units in planning review that would provide rentals for households earning less than 60% AMI. Manhattan Single family - 7 Multi-household - 3 Three Forks Single family - 6 Multi-household - 40 Belgrade Single family - 200 Multi-household - 220 Bozeman Single family - 520 Multi-household - 4,839 Pending Housing Developments in Incorporated Gallatin County* 13% - Single-family housing units Detached units on a lot. 87% - Multi-family housing units Townhome, condo, duplex, apartments, all attached housing units. **This data is only for incorporated areas of Gallatin County. Data for “Other” was not collected. 13% 87% 56 Gallatin County Regional Housing Study | July 2021 16 | What Can We Do? Strategies Recognizing that there is no silver bullet—that no single housing strategy can do it all—communities utilize a variety of strategies to provide a diversity of product type and tenure and to address housing needs across multiple income levels. Infrastructure Communities must obtain an understanding of their infrastructure needs and how housing affordability fits into that. • Pooling Single Family Equivalents (SFEs) and water and sewer policies Funding The capital gap to produce below market housing units highlights the need for a reliable and significant pool of funds to help subsidize the production of housing units priced below market. • Resort Tax • General funds • Fee waivers/deferral • Tax Increment Financing (TIF) • Private donations • Federal/State funding (Grants/Loans) • Homebuyer assistance – down payment • Low-Income Housing Tax Credits (LIHTC) • Targeted Economic Development District (TEDD) for housing • Voluntary Real Estate Transfer Assessment (RETA) • Impact fees • Taxes dedicated to housing • Multifamily Coal Trust Homes Program Partnerships Organizations working together to leverage resources and skill sets to develop or facilitate the development of housing affordable to local residents. • Employer provided seasonal/student housing • Employer assisted housing • Land acquisition • Public/private institutional partnerships Regulatory Tools Levers that government entities have to manage development in their jurisdictions. • Zoning that allows more homes on less land • Accessory Dwelling Units (ADUs) •Removal of regulatory barriers •Flexible development standards •Annexation policies •Housing affordability overlay Preservation Occupancy by locals (open and/or maintain existing housing stock to local occupancy) and protect investment in creating places to live for locals. • Deed restricted housing (permanent) • Short-Term Rentals (STR) conversion to Long-Term Rentals (LTR) • Short Term Rental (STR) regulations • Employer assisted housing – rental matching and management program • Local option to purchase • Buying down deed restrictions on existing homes • Replacement or no-net-loss of housing requirements Organizational Entity/Programs Organizations with a mission or program that addresses or targets a specific housing need. • Community land trust • Permanent Supportive Housing (PSH) and transitional • Co-op housing • Housing rehabilitation and weatherization • Self help build • Senior housing 57 Gallatin County Regional Housing Study | July 2021 17 | What Can We Do? Collaboration Partnership Framework A successful model to accelerate housing solutions is a partnership framework like the one shown here. This framework brings together informal and formal community leaders that understand the value in working together to maintain a vibrant and economically stable region. A collaborative environment fosters partnerships and builds influence to thoughtfully address regional housing challenges. An example comes from Tahoe, California. The Mountain Housing Council of Tahoe Truckee (MHC) is a project of the Tahoe Truckee Community Foundation and brings together 28 diverse partners to accelerate solutions to achievable local housing including availability, variety, and affordability. www.mountainhousingcouncil.org It takes a community to build a community. Regionally our Gallatin County communities are connected with the housing challenge impacting the vitality of each one of them, and the county as a whole. This makes it essential that the communities come together to address the community housing needs as these are regional issues that require regional solutions. Communities Cities County School DistrictsProgram Entities Chamber of Commerce Employers Regional Housing Approach As shown previously there is a capital gap to produce homes for residents who are earning a local income that they can afford to purchase or rent. Additionally, there are limited methods to raise reliable and significant funds to bridge that gap and meaningfully facilitate development of below market housing. The question becomes, “how can we collaborate on potential funding to move forward?” Listed to the right is an example from Steamboat Springs, CO. But locally, an example of potential funding comes from the City of Bozeman, but could this be a solution for Gallatin County as a whole? Under consideration in the City of Bozeman is a ballot measure to increase property taxes for mill levies to fund affordable housing and provide repairs to a few city facilities. Proposed are up to 7 mill levies which could raise more than $9.5 million in the next decade. For years the City Commission has been assigning between 3-5 mills from the general fund to the Bozeman Housing Fund. These funds have been used to help subsidize the construction and preservation of below market housing. While this funding model has worked in the past, it does not address the fact that there is a lack of other methods to raise funds, and it highlights the need for a reliable and significant source of funds for the future. There are many other case studies and examples available to show successes with this funding model. Funding STEAMBOAT SPRINGS/ROUTT COUNTY, COLORADO: In 2017 voters approved a one-mill property tax levy collected over a 10-year period to fund the development of affordable housing. The key to the success was a strong campaign that built upon the success of the Yampa Valley Housing Authority (YVHA) when it acted on the findings of a community-wide housing steering committee and successfully developed an affordable apartment building, the Reserves at Steamboat. This apartment building contains 48 income-restricted affordable rental apartments and used federal income tax credits awarded by the Colorado Housing Financing Authority which were sold to a corporate investor, allowing YVHA to partner with a private sector apartment building developer for the new housing project. The tax raises about $900,000 annually until it sunsets after 10 years. The YVHA has been using these tax dollars to leverage private investment to develop affordable housing. They actively seek development partners to further their goals, clearly laying out what YVHA can provide which is gap financing, tax exemptions, local entitlements expertise and land due diligence. 58 Gallatin County Regional Housing Study | July 2021 18 | Next Steps Next Steps Communities need to look at solutions outside of the silos of their boundaries. Working together with other cities, county, state, and partners to solve the bigger issue is where solutions lie. The following core components should overlay any regional and local housing strategy to improve success: • Education and understanding of the issue and the causes from a regional standpoint, and across all levels of state, regional, and local control. • Influence from the top down within the state (state to local level). When the state removes local flexibility, the ability to structure effective, tailored programs is diminished. • Partnerships and coordination of efforts, meaning jurisdictions at all levels, private and non-profit organizations, employers, service providers, etc. A community-wide problem needs community-wide involvement in solutions. • Housing unit and program management. The job is not done when housing is produced. Investments in resident and employee housing production and programs must be monitored and maintained. How to use this document to move forward: Meet, discuss, set targets/goals, define a strategic path forward together: 1. Understand the problem: what housing gaps need to be filled regionally and locally. 2. Establish goals and objectives: what are our priorities and measurable targets? Do the same for each local area, completing the puzzle to meet regional goals in the process. 3. Identify housing strategies: place into context of existing capacity and how coordinating with others in the region can expand that capacity. 4. Assign roles: who should be involved for each strategy. 5. Establish implementation steps and a timeline for each strategy 6. Continue to meet on a regular basis to track progress, address challenges, learn from successes, and modify as needed. Appendix You can find the appendix with supporting data to this document at www.onevalley.org/regionalhousingstudy. 59 1 NOVEMBER 16, 2021 City of Bozeman Inclusive City Project Team Inclusive City Quarterly Report November 2021 60 2 City Manager Update In July of 2020, staff came before the City Commission with the Inclusive City report. This internal report has 24 actions describing how we can continue to strive towards a more equitable and inclusive organization and community. This is the City’s fifth quarterly report. We continue to remain dedicated to this work and I’m proud of the progress we are seeing across our organization. We now have 17 of our actions in progress or complete! Of course, the work is never done. As we look towards developing an equity action plan there will be more to do. To view all previous reports visit our website at www.bozeman.net/equityandinclusion. This report includes a list of completed actions along with updates on newly completed items, updates on actions that are in progress, and a detailed timeline and associated budget for all actions. Words matter in this work, and it’s important to point out that many of these items may never be “complete” but will be “ongoing” efforts that the City is dedicated to incorporating as a part of routine work. This fall was a busy season for several projects within the Inclusive City report. The Equity Indicators Project was finalized this fall giving us clear data points on which we can measure our progress as a community. The entire report is available on our website www.bozeman.net/equityandinclusion and we expect our live dashboard to be up this winter! After an extensive and intentional planning effort the Community Roundtable on Equity and Inclusion was a success! The event was attended by over 120 community members and combined real life stories with the data of our new equity indicators. We’d like to thank the many partners who attended and especially our planning team including folks from Montana State University, Bozeman Health, Montana Racial Equity Project and Bozeman School District 7. The roundtable helped strengthen and grow relationships across Bozeman and we are excited to take this momentum into the next year. Finally, the entire City Commission as well as some of our top leaders in City staff attended a four hour long course on the foundations of equity. Training remains one of our top priorities and we are thrilled to deliver core training to some of our key decision makers at the City. In the simplest terms, our goal is to ensure that every resident, visitor, and City of Bozeman employee feels welcomed and valued, and can thrive no matter their race, identity, or life circumstance. – Jeff Mihelich 61 3 Completed Actions For further detail on completed actions please review previous reports on our website at www.bozeman.net/equityandinclusion City Manager Recommendations 1. Provide a quarterly progress report to the City Commission and interested stakeholders The next report will be delivered in February 2021. 4. Sponsor a Diversity, Equity and Inclusion Summit with community partners such as Montana State University, HRDC, and Montana Racial Equity Project The Community Roundtable on Equity & Inclusion was hosted in partnership with the Montana State University Office of Diversity & Inclusion, Montana Racial Equity Project, Bozeman School District, and Bozeman Health. The 2.5 hour virtual event took place on Monday, October 25th and was attended by over 120 community members and leaders of organizations addressing our community’s most pressing needs. The planning committee took steps to create a welcoming and inclusive space by co-creating and delivering a land acknowledgement, establishing group agreements for participation in discussion, and providing language access for Spanish speakers through live interpretation, and accommodating the needs of people with low or no vision or hearing. The event covered the data with a presentation of equity indicators, made space for the voices of three local storytellers who shared their lived experiences, and sparked discussion among attendees about how we can all contribute to closing the gaps in our community. Out of these facilitated discussions, we gathered input, listened to people’s experiences, and exchanged contact information. We are excited to maintain momentum, strengthen existing relationships, and build new ones as we take the next steps together. The event closed by asking participants to commit to taking action in their organizations or personal lives through continued learning about inequity and injustice, contributing to the work being done by local organizations to correct inequities, and participate in the City of Bozeman’s upcoming efforts to develop a Diversity, Equity & Inclusion plan. Participants were directed to the city’s website to stay informed and engaged as we lay the groundwork for a Diversity, Equity & Inclusion plan in the coming year. 6. Become a member of the Government Alliance on Race and Equity (GARE) The City of Bozeman was accepted into GARE in November 2020. Bozeman is now the first organization from Montana to be a part of GARE! As a part of the City’s membership there are opportunities to learn from leaders in the space as well as share successes. Several staff have already completed the GARE Foundations training course “Advancing Racial Equity: The Role of Government” and are utilizing the network to ensure the City’s actions are in line with best practices. 62 4 Diversity, Inclusion and interaction with Minorities – Bozeman Police Department 2. Augment existing policies and update to “Bias-free Policing” The Bozeman Police Department has reviewed its existing policies against the model policy of “Bias-Free Policing” and updated the department’s existing policies where necessary to be in line with this national best practice (See Appendix A.) The final policy has now replaced the prior policy and staff have completed a training program which highlighted the changes and the key points. Use of Force – Bozeman Police Department 1. Policy Changes The Bozeman Police Department has made revisions to the current policy which includes providing additional policy direction concerning de-escalation and use of force. The goal of the updates is to address community concerns and provide clarity for officers. As a result, a new and updated “Use of Force” policy (see Appendix B) has been finalized and approved. The updated policy has been implemented and staff have completed a training program to familiarize them with the changes. Citizen Appeal Process – Bozeman Police Department 2. Clearly distinguish inquiries from complaints After distinguishing inquiries from complaints, Bozeman Police Department staff began the lengthy process of formulating workflow stemming from each category, which has now also been completed. The workflow clearly separates and defines “inquiries,” “minor complaints,” and “major complaints.” After that, it distinguishes which major complaints will require an administrative investigation and which will require an external investigation. 63 5 In Progress Actions City Manager Recommendations 2. Identify anti-discrimination, implicit bias and systemic racism training for elected officials and department heads. In September the Bozeman City Commission as well as Directors and City Management participated in a four hour foundational diversity, equity and inclusion training through The Equity Project. This voluntary, interactive, virtual training provided an opportunity for all elected officials to receive a basic level course ahead of implementation of the REAL program. The project Training Team continues to work with National League of Cities’ Race, Equity And Leadership (REAL) training program as the partner to deliver REAL 100: Normalizing Racial Equity in Local Government Training to city staff, including elected officials and department heads. It is very important that everyone in our organization, regardless of position, has the opportunity to experience this base-line training. The process includes an employee assessment that will take place leading into the training that will assist in identifying follow-up training needs after this 100-level course. Staff are currently putting together the questions for the pre-training assessment that will go out to all employees. 5. Accelerate the implementation of body worn cameras for the Bozeman Police Department. After having selected Getac Video Solutions as the new vendor for patrol car video systems, interview room video systems, and body worn cameras, the Bozeman Police Department installed a test patrol car video system this summer. Having a system installed and being tested on a daily basis has allowed the department to fix any issues and ensure complete integration with the new digital evidence management system. In addition, plans have been finalized to have this system installed in the interview rooms in the new Bozeman Public Safety Center. As of this report, the Bozeman Police Department and Bozeman City Attorney’s Office are still working to finalize a contract with Getac Video Solutions. During this quarter, payment options were closely considered and the departments’ Capital Improvement Project funding requests were adjusted. Once the contract is finalized, the process of migrating all patrol car video systems to this vendor will begin, hopefully this coming quarter. In addition, we have tentative plans to put together a community engagement process this winter, in anticipation of beginning use of the body cameras next year. 3. Develop a City Equity and Inclusion Plan to engage stakeholders and identify gaps community wide and to implement policies that help all persons in Bozeman thrive regardless of economic, racial, cultural, or gender identity. City staff finalized the Equity Indicators Report this fall and continue to focus on getting data sharing agreements executed with partner organizations. An online platform will be developed to share live indicators 64 6 and is anticipated to launch this winter. The data is intended to inform conversations on how the city can take action to address these needs and close the gaps together as a community. The first steps to develop an equity action plan are expected to start early 2022. Anti-discrimination 1. Implement additional training for all city staff. As mentioned above under City Manager’s Recommendation Action 2, The project Training Team continues to work with National League of Cities’ Race, Equity And Leadership (REAL) training program as the partner to deliver REAL 100: Normalizing Racial Equity in Local Government Training to city staff, including elected officials and department heads. It is very important that everyone in our organization, regardless of position, has the opportunity to experience this base-line training. The process includes an employee assessment that will take place leading into the training that will assist in identifying follow-up training needs after this 100-level course. Staff are currently putting together the questions for the pre-training assessment that will go out to all employees. In June of 2021, the City Commission intentionally earmarked approximately $61,000 for the Bozeman Police Department to use to increase training in the areas of implicit bias and de-escalation. During this quarter, the Bozeman Police Department utilized those funds to purchase a virtual reality training simulator. Rather than spending the funds on one-time training, the purchase of this system will allow the department to conduct ongoing training on these issues. In addition, the system will be used to offer training to other City employees, train new officers on a wide variety of topics, and during events such as the Citizen’s Police Academy. Training Date Completed Length # Staff Trained Comments Workplace Diversity Started December 2020, Ongoing 1 hour 98.2% of all employees Cultural diversity can strengthen an organization’s values and enhance community awareness. Due to our country’s rapid growth and ever- changing diverse populations, organizations are realizing strength in the marketplace is linked to their ability to attract a culturally diverse workforce. Unfortunately, discrimination still occurs on many levels. The goals of this program are to promote awareness and encourage acceptance, describe strategies to create a positive and accepting work environment, and to highlight the steps to take should discrimination occur in the workplace. GARE Foundations Advancing Racial Started December 2020, Ongoing 6 hours 7 This course provides an introduction to the role, responsibilities and opportunities for government to advance racial equity. Participants gain 65 7 Equity: The Role of Government awareness of the history of race and of implicit and explicit bias and individual, institutional, and structural racism and how it impacts the workplace. The course also focuses on normalizing racial equity as a core value with clear definitions of key terminology, operationalizing racial equity via new policies and institutional practices, and organizing, both internally and in partnership with other institutions and the community. Participants also become skilled at identifying and addressing institutional and structural racism. 3. Review employee performance appraisal system The City’s Human Resources department is working with managers, supervisors and represented employee groups to seek input on a new approach to performance evaluation. The new approach will have an emphasis on coaching and development and will aim to facilitate timely, reliable and valuable feedback for all employees. Once input has been received by staff the program will be reviewed and approved by City Management before being launched with employees in the “non-represented” category and MFPE union. 4. Review best practice recommendations, including the THRIVE index and the Municipal Equality index City staff had initial discussions on the City’s current scores in the THRIVE index (Appendix C) and the Municipal Equality Index (Appendix D.) Based on the City’s scores from 2019, the team has identified several key areas where additional progress can be made: 1. THRIVE Index: We believe that we may be able to improve our Paid Parental Leave policies to assist employees. The Human Resources Department is researching the issue and will make recommendations to the City Manager within the coming months. 2. Municipal Equality Index: The City has submitted feedback to MEI for any changes to our 2021 score. We expect a final scorecard to come out at the end of the year. 6. Evaluate Diversity and Inclusion on Advisory Boards The City Commission recently took action to consolidate many of the City’s Citizen Advisory Boards. As a part of the consolidation process the City Commission prioritized diversity, equity and inclusion in the new structure. At the direction of the Commission the City developed a voluntary survey to gather baseline information from the existing Citizen Advisory Board members. Upon the appointment of the new consolidated boards, the same survey tool will be distributed to gain a second data point. All data will be compiled in the aggregate and begins the formal tracking of diversity on the boards. 66 8 The results from those who responded to the initial survey show that people of color are underrepresented on advisory boards. The City also collected voluntary demographic data on gender, sexual orientation, age, disability, and whether board members are renters or homeowners. Diversity, inclusion and interaction with minorities – Bozeman Police Department 1. Training This item will be an ongoing effort by the Bozeman Police Department to explore additional training opportunities on topics including recognizing implicit bias, anti-racial profiling and Bias-Free policing. Training Date Completed Length # Staff Trained Comments Implicit Bias November 2020 2.5 hours 64 (all officers) Officers completed an online course intended to help them understand how implicit bias impacts actions and decisions. The course examined the relationship between unconscious and implicit bias, addressed illicit bias and how it affects decision making, and discussed the importance of communicating effectively. Use of Force 1. Training This item will be an ongoing effort by the Bozeman Police Department to incorporate more communication and de-escalation, scenario-based, in-service trainings for officers. Staff will also evaluate and consider additional training programs on topics that include communication, de-escalation, intervention, recognizing force mitigation opportunities, use of force decision-making and more. Training Date Completed Length # Staff Trained Comments Decision Making November 2020 2 hours 64 (all officers) Officers attended a training regarding making good decisions during critical incidents. This training included the science behind why poor decisions are sometimes made, the inherent “fight or flight” response and how to overcome it, and how to remain calm and think critically during high-stress incidents. De-escalation, Intervention, and Force Mitigation January 2021 2 hours 62 (all officers) Officers completed an online course focusing on “De-Escalation, Intervention, and Force Mitigation.” After defining each term, the training discussed the importance 67 9 of focusing on a “guardian” mindset, described a variety of factors involved in human interaction, and explored techniques for lowering emotions to change behavior in volatile situations. Situational Awareness for Force Usage Training May, 2021 2 hours 40 After participating in a live scenario that obviously required force, officers were placed in a slightly altered scenario that did not require force. Scenarios were intended to train officers to individually assess each situation, utilize good communication skills, recognize potential danger versus lethal danger, and focus on de-escalating whenever possible. Force Mitigation September, 2021 2 hours 64 (all) Every year, all officers must certify in a variety of “less lethal” options, all designed to mitigate the amount of force used during an encounter. During each training cycle, officers must complete a written or verbal test, practice with the tool, then complete a scenario that includes communicating with the individual in an attempt to avoid force, then deciding whether that tool is appropriate for the scenario. Communication and De-escalation October, 2021 3 hours 6 (newly hired officers) As part of their initial training, all new officers hired this quarter attended a 3 hour class on communication and verbal de- escalation tactics. This course includes examining the topic of “communication” from both legal and best-practice perspectives and ways to verbally de- escalate situations. Crisis Negotiations Course November, 2021 40 hours 3 (officers) Three current officers attended a 40 hour course focused on communicating effectively with those in a variety of crises, with the common goal always being to avoid using any type of force to resolve the situation. Crisis Negotiations Conference November, 2021 16 hours 3 (officers) Three different current officers attended a 2 day course which included classes on a variety of crisis negotiations topics. The conference and all included course again center on decreasing the need for any force. 68 10 Citizen Appeal Process 1. Create a stand-alone citizen complaint policy.3. Refine the complaint investigative process. These action items are interconnected and, for the sake of this report, are considered dependent upon each other. After distinguishing inquiries from complaints, staff began the lengthy process of formulating workflow stemming from each category, which has now also been completed. The workflow clearly separates and defines “inquiries,” “minor complaints,” and “major complaints.” After that, it distinguishes which major complaints will require an administrative investigation and which will require an external investigation. The overall citizen complaint policy has now also been completed, a policy which will be included when the department soon begins publically publishing all policies. The “complaint form” which will begin each complaint process is now also being finalized and will also be made available to the public. Discussions are still ongoing regarding the citizen’s appeal process, including who will conduct the review and how a review will be requested. 69 11 Bozeman as an Inclusive City Report – Actions, Budget, Timeline Green = Complete Yellow = In progress or Ongoing Red = Not yet started City Manager Recommendations Based on the review of our existing policies, procedures, training protocols and best practices the City Manager recommends the following actions: ACTION ITEM LEAD DEPARTMENT TIMELINE FOR IMPLEMENTATION BUDGET (ESTIMATE IF AVAILABLE, NOTE IF ALREADY BUDGETED FOR AND WHAT FISCAL YEAR) 1. PROVIDE A QUARTERLY PROGRESS REPORT TO THE CITY COMMISSION AND INTERESTED STAKEHOLDERS CITY MANAGER’S OFFICE IMMEDIATELY - FIRST REPORT NOVEMBER 2020 $0 2. IDENTIFY ANTI-DISCRIMINATION, IMPLICIT BIAS AND SYSTEMIC RACISM TRAINING FOR ELECTED OFFICIALS AND DEPARTMENT HEADS HUMAN RESOURCES/CITY MANAGER’S OFFICE DEVELOP 12-MONTH TRAINING PROGRAM BY DECEMBER 2020 $53, 745 (PAID FOR THROUGH GRANT) 3. DEVELOP A CITY DIVERSITY, EQUITY AND INCLUSION PLAN TO ENGAGE STAKEHOLDERS AND IDENTIFY GAPS COMMUNITY WIDE AND TO IMPLEMENT POLICIES THAT HELP ALL PERSONS IN BOZEMAN THRIVE REGARDLESS OF ECONOMIC, RACIAL, CULTURAL, OR GENDER IDENTITY CITY MANAGER’S OFFICE 18 MONTHS UNKNOWN 4. SPONSOR A DIVERSITY, EQUITY AND INCLUSION SUMMIT WITH COMMUNITY PARTNERS SUCH AS MONTANA STATE UNIVERSITY, HRDC, AND MONTANA RACIAL EQUITY PROJECT CITY MANAGER’S OFFICE 2021 UNKNOWN 5. ACCELERATE THE IMPLEMENTATION OF BODY WORN CAMERAS FOR THE BOZEMAN POLICE DEPARTMENT BOZEMAN POLICE DEPARTMENT BPD WILL HAVE RECOMMENDATION ON TIMELINE AS A PART OF THE UPCOMING CAPITAL IMPROVEMENT PLANNING PROCESS AND WILL MAKE RECOMMENDATIONS ON FISCAL YEAR. BPD WILL HAVE COST ESTIMATES AS A PART OF THE UPCOMING CAPITAL IMPROVEMENT PLANNING PROCESS. 70 12 6. BECOME A MEMBER OF THE GOVERNMENT ALLIANCE ON RACE AND EQUITY CITY MANAGER’S OFFICE IMMEDIATELY $1,000 ANNUALLY 71 13 Overall Diversity for the Organization ACTION ITEM LEAD DEPARTMENT TIMELINE FOR IMPLEMENTATION BUDGET (ESTIMATE IF AVAILABLE, NOTE IF ALREADY BUDGETED FOR AND WHAT FISCAL YEAR) 1. MAKE DIVERSITY A FORMAL AND HIGH PRIORITY FOR THE ORGANIZATION The City will communicate its commitment to diversity to all city staff and significantly increase formal training for supervisors and employees on implicit bias. The City will review and adjust its employee performance appraisal system to ensure consistency of evaluations and non- discrimination. CITY MANAGER HOLD ALL CITY STAFF MEETING AND PASS ADMINISTRATIVE ORDER $0 72 14 Anti-discrimination ACTION ITEM LEAD DEPARTMENT TIMELINE FOR IMPLEMENTATION BUDGET (ESTIMATE IF AVAILABLE, NOTE IF ALREADY BUDGETED FOR AND WHAT FISCAL YEAR) 1. IMPLEMENT ADDITIONAL TRAINING FOR ALL CITY STAFF HUMAN RESOURCES LMS “WORKPLACE DIVERSITY” DEPLOYED TO ALL EMPLOYEES BY DECEMBER. ESTABLISH A 12 MONTH TRAINING CALENDAR FOR ALL EMPLOYEES BY MARCH 2021 WE HAVE A SYSTEM WITH THESE TYPES OF TRAININGS INCLUDED BUT MAY NEED FUNDING FOR IN PERSON TRAINING The City will consider more frequent and additional trainings including trainings on “Inclusion in the Workplace” and “Implicit Bias” 2. EMPLOYEE ENGAGEMENT SURVEYS HUMAN RESOURCES MOVED TO SPRING 2022 $0 The City will engage employees annually to gauge inclusion and engagement in the workplace to measure the success of other efforts by the City. 3. EMPLOYEE PERFORMANCE APPRAISAL SYSTEM HUMAN RESOURCES FY22 $0 The City will review its employee performance appraisal system and provide updates with greater consideration to fairness and inclusion. 4. REVIEW BEST PRACTICE RECOMMENDATIONS, INCLUDING THE THRIVE INDEX AND THE MUNICIPAL EQUALITY INDEX HUMAN RESOURCES/CITY MANAGER’S OFFICE INITIAL MEETING WITH CITY MANAGER TO REVIEW THESE PROGRAM ELEMENTS IN JANUARY 2021 $0 FOR INITIAL REVIEW. IMPLEMENTING NEW ELEMENTS MAY REQUIRE FUNDING. The City will review the best practices of the THRIVE index and the Human Rights Campaign’s Municipality Equality index and consider City policies that may need additional updates to meet these best practices. 5. REVIEW HOW THE CITY HANDLES ANONYMOUS COMPLAINTS (ETHICS ORDINANCE) CITY MANAGER’S OFFICE 2022 $0 73 15 The City will review the current policies within the ethics ordinance that requires complainants to give their name before complaints are given a complaint investigation status. The review will consider the failures of the policy to meet the needs of the victim and should be updated to reflect those needs. 6. EVALUATE DIVERSITY & INCLUSION ON ADVISORY BOARDS CITY CLERK’S OFFICE SUMMER 2021 $0 The City will conduct an evaluation of City Advisory Boards to determine how or if the City tracks diversity on these boards and consider systems that could be implemented to support diversity and inclusion in these spaces. 74 16 Diversity, inclusion and interaction with minorities – Bozeman Police Department ACTION ITEM LEAD DEPARTMENT TIMELINE FOR IMPLEMENTATION BUDGET (ESTIMATE IF AVAILABLE, NOTE IF ALREADY BUDGETED FOR AND WHAT FISCAL YEAR) 1. ADD FUTURE TRAININGS POLICE DEPARTMENT The Bozeman Police Department will explore additional training opportunities on topics including recognizing implicit bias, anti-racial profiling, and Bias-Free Policing. IMPLICIT BIAS TRAINING (ONLINE) (2.5 HR) NOVEMBER 2020 $3,400 2. AUGMENT EXISTING POLICIES AND UPDATE TO “BIAS-FREE POLICING” POLICE DEPARTMENT The Bozeman Police Department will review its existing policies against the model policy of “Bias-Free Policing” and update existing policies where necessary to be in line with this national best practice. COMPLETED AND TRAINING IMPLEMENTED $0 3. BROADEN COMMUNITY OUTREACH EVENTS The Bozeman Police Department will give continued consideration to broadening community outreach events to interact with more Montana State University groups as well as other community groups. POLICE DEPARTMENT TO BE DETERMINED DEPENDENT UPON PANDEMIC- RELATED RESTRICTIONS N/A 75 17 Hiring Practices - Overall ACTION ITEM LEAD DEPARTMENT TIMELINE FOR IMPLEMENTATION BUDGET (ESTIMATE IF AVAILABLE, NOTE IF ALREADY BUDGETED FOR AND WHAT FISCAL YEAR) 1. CONTINUED EFFORTS TO REACH OUR BEST PRACTICES The City will continue to evaluate and improve its efforts to achieve our best practices in hiring and recruitment. This includes improving our results for candidates and evaluating the impacts of turnover. HUMAN RESOURCES APRIL 2021 MAY NEED MINIMAL AMOUNTS FOR JOB POSTINGS TO NICHE GROUPS. 2. UPDATE HIRING PRACTICES POLICY HUMAN RESOURCES 2021-2022 $0 The City will update the hiring practices manual to reflect current practices and further efforts for diversity. The City will also train supervisors to the hiring practices and hold supervisors accountable for not following hiring practices. 3. REVIEW AND UPDATE THE LANGUAGE AND IMAGES USED FOR ADVERTISING POSITIONS HUMAN RESOURCES 2021 $20,000 The City will review the language and images used for recruiting and advertising open city positions to specialized groups. Language and images should take into consideration literal and visual differences in varied applicant pools. WORK WITH A CONSULT TO DEVELOP NEW VISUAL AND WRITTEN MATERIALS 76 18 Use of Force ACTION ITEM LEAD DEPARTMENT TIMELINE FOR IMPLEMENTATION BUDGET (ESTIMATE IF AVAILABLE, NOTE IF ALREADY BUDGETED FOR AND WHAT FISCAL YEAR) 1. POLICY CHANGES The Bozeman Police Department will make revisions to the current BPD policy and provide additional policy direction concerning de- escalation and use of force. These updates hope to address community concerns and provide clarity for officers. POLICE DEPARTMENT COMPLETE AND TRAINING IMPLEMENTED $0 2. FUTURE TRAININGS POLICE DEPARTMENT The Bozeman Police Department will incorporate more communication and de-escalation scenario-based in-service trainings for officers. They will also evaluate and consider additional training programs on topics that include communication, de-escalation, intervention, recognizing force mitigation opportunities, use of force decision-making, and others. DECISION MAKING (IN PERSON FOR OFFICERS) (2 HR) NOVEMBER 2020 $0 DE-ESCALATION AND FORCE MITIGATION (ONLINE FOR ALL OFFICERS) (2 HR) FALL 2020 $3,400 DE-ESCALATION SCENARIOS (IN PERSON FOR OFFICERS) (2 HR) MAY, 2021 $0 FORCE MITIGATION OCTOBER, 2021 $0 77 19 COMMUNICATION AND DE-ESCALATION OCTOBER, 2021 $0 CRISIS NEGOTIATIONS NOVEMBER, 2021 78 20 Citizen Appeal Process – Bozeman Police Department ACTION ITEM LEAD DEPARTMENT TIMELINE FOR IMPLEMENTATION BUDGET (ESTIMATE IF AVAILABLE, NOTE IF ALREADY BUDGETED FOR AND WHAT FISCAL YEAR) 1. CREATE A STAND-ALONE CITIZEN COMPLAINT POLICY The Bozeman Police Department will create a stand-alone Citizen Complaint Policy that will be available on the City’s website with clear instructions on how to file a complaint, the complaint investigation process, timeline for response, and steps for further engagement after an outcome has been determined. POLICE DEPARTMENT SPRING 2021 $0 2. CLEARLY DISTINGUISH INQUIRIES FROM COMPLAINTS The Bozeman Police Department will create a process, including defining the terms “inquiry” and “complaint” to clearly distinguish inquiries from complaints requiring an investigation and create a system for documenting inquiries. POLICE DEPARTMENT SPRING 2021 $0 3. REFINE THE COMPLAINT INVESTIGATIVE PROCESS The Bozeman Police Department will review and update the Complaint Investigative Process to establish a clear timeframe for notification and follow-up within 24 hours with a complainant. The Bozeman Police Department will also explore options for developing an appeal process for citizens that are unsatisfied with the outcome of a complaint investigation. POLICE DEPARTMENT SPRING 2021 $0 79 GAPS ANALYSIS FOREQUITY INDICATORS PROJECT July 31, 2021 SUBMITTED BY 80 2GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT CITY MANAGER’S STATEMENT – EQUITY INDICATORS REPORT Whether you’re one of the millions who visit this beautiful community every year or you have called this place home for generations, the Bozeman area is special to many. Bozeman is built upon the homelands, villages, and traditional use areas of many indigenous nations including the Bitteroot Sal- ish, Pend O’Reille, Kootenai, Blackfeet, Northern Cheyenne, Crow, Chippewa Cree, Assiniboine, Gros Ventre, Dakota, and others. Since long before Bozeman became the rapidly growing city it is today, this area has supported thriving and diverse communities. The goal of the equity and inclusion work we are doing at the City of Bozeman is to ensure that people here can thrive, no matter their race, identity, or life circumstance. Residents, visitors, and employees of the City of Bozeman all deserve to feel welcomed, valued, and included in our community. As we work towards this goal, it is essential that the actions we take as a city are guided by data and informed by the people we serve. The Equity Indicators Project is key to understanding where more re- sources and support are needed and provides baseline data to measure our progress towards becom- ing a more inclusive city. The equity indicators described in this report are living data points that the City and local partners have developed together and will continue to refer to when making decisions about how to support the most vulnerable people in our community. To those who engaged in focus groups, interviews, surveys, community forums, and conversations, thank you for sharing your insights, your professional expertise, and even your own lived experiences and personal stories. We at the City of Bozeman recognize our reliance on the knowledge of people providing and seeking accessible, inclusive, and high-quality services. Our hope is that the equity indicators presented in this report serve as meaningful measures of equity and reflect where we are as a community and where we need to go. We invite you to join us and con- tinue the conversation of turning the results of the Equity Indicators Project into tangible action. Our progress will be ongoing and intentional and we are excited for opportunities to work together to make Bozeman a place where all are welcome, valued, and can thrive. City Manager, Jeff Mihelich 81 3GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT TABLE OF CONTENTS Executive Summary 4 Introduction 11 Who lives in Bozeman 13 Who responded to the survey 14 Finding gaps and understanding needs 18 Perceptions of Equity in Bozeman 21 Housing 25 Transportation 35 Health 41 Education 50 Childcare and Youth Programming 59 Economic Opportunity 68 Quality of Place 73 Justice and Civic Health 79 Conclusion and Next Steps 87 Appendix A | Data Collection Tools 89 Appendix B | References 97 82 4GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT EXECUTIVE SUMMARY The City of Bozeman (the City) hired Thomas P. Miller & Associates (TPMA), an Indianapolis-based consulting firm, to measure equity and access to resources in the City. The purpose of this project was to establish a baseline to make Bozeman a more inclusive, welcoming, and equitable place. The TPMA and City of Bozeman used the following definitions to guide the work. • Equity: Ensuring that all residents, visitors, and City of Bozeman employees feel welcome, valued, and like they can thrive in our community no matter their race, identity, or life circumstance. • Equity indicator: A specific measurement that quantifies the disparity in experience between a community average and a given identity or characteristic (race, ethnicity, gender identity, ability, socioeconomic status). • Gaps Analysis: A process to identify which services exist and which are needed to provide all people with access to the things they need to thrive in our community. The development of the report relied on input from the community through a survey, facilitated conversations in focus groups, virtual one-on-one interviews, and two community forums. Data from the census and from local community needs assessments and other programmatic documents were also reviewed and included in this report. The community stakeholder engagement process provided opportunities to discuss pressing needs of the community, share the lived experience of community members and offer recommendations on what the equity indicators should measure. Qualitative data was collected through community forums, focus groups, interviews, and open-ended survey responses. Priority Needs • Housing • Transportation • Health • Education • Childcare and Youth Programming • Economic Opportunity • Quality of Place • Justice and Civic Health 83 5GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Overall Ranking of Large and Moderate Needs Affordable Housing Increased Availability of Living-Wage Jobs Substance Abuse Services Access to Mental Health Care Job Training Early Childhood Care & Education Homeless Support or Programs Out-of-School Time Programs for Children Improved Housing Quality Clean & Well-Lit Streets & Sidewalks Criminal Justice Reform Violent Crime Prevention Transportation To & From Work Access to Broadband Increased Access to Food Legal Help Access to Quality K-12 Education Transportation for Reasons Other Than Work Adult Education / GED / Language Programs Truancy or Dropout Programs College Enrollment / Persistence / Success School Safety Non-Violent Crime Prevention Access to Public Parks / Playgrounds Assistance with Public Health Hazards 68.9%11.3% 56.1%17.7% 39.9%31.6% 39.6%31.1% 25.49%35.4% 39.2%19.9% 30.5%28.2% 29.1%27.6% 26.6%28.0% 15.7%33.1% 15.5%32.3% 15.5%30.3% 12.6%30.2% 13.9%30.2% 13.4%27.1% 13.0%27.3% 13.3%23.9% 12.3%23.8% 9.6%27.4% 8.3%22.4% 17.9%27.9% 20.0%27.7% 21.9%22.9% 25.5%22.6% 25.5%22.5% Large Need Moderate Need Below is chart depicting the areas survey respondents identified as the most strongly needed and indicates what percent of respondents indicated there was a Large Need or a Moderate Need. 84 6GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT There were cross-cutting needs and gaps mentioned during stakeholder engagement that overlapped all categories. Those needs included: Increased information about resources // Stakeholders shared that they did not often know where to look for resources and that improved communication would increase individuals’ ability to access the resources needed. Spanish translation // With a growing Hispanic and Latinx population, the need for Spanish translation was mentioned regarding several of the categories listed above. Partnering with other organizations // There are local organizations that are working to increase equity and meet the needs of the community; stakeholders felt it was important that the City connect with these organizations, both so they could serve as experts, and also to ensure services were not needlessly duplicated. Needs and Gaps Summary Each category in the report includes three sections: • “What We Heard” - The relevant findings from interviews, focus groups, survey results, and community forums. • “Recommendations” - Based on what we heard and available data, this section outlines recommendations for programming or policy to support community needs or address gaps • “Recommended Indicators” – These are the potential equity indicators that the City could choose to adopt. The recommended indicators utilize both local sources and publicly available data; they are not the only indicators that could be used, but reflect the gaps and needs reported by the community. The City of Bozeman will determine which indicators work best in developing an indicators dashboard. The findings from each category are summarized below; detailed findings, recommendations, and further explanation of the indicators are located in the report. Some of the recommended indicators may not be collected currently and may need data sharing agreements or additional conversations with local partners to develop the indicators. Housing Needs: There were a multitude of issues within the realm of housing that arose during the data collection, the main needs identified were: • Access to affordable housing • Programs and supports for individuals and families experiencing homelessness 85 7GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Recommendations: Recommendations for housing included supporting and expanding existing housing initiatives and navigation services as well as public policy and incentives to support the development of affordable housing. Recommended Indicators: • Average listing price for homes • Home ownership: percent owner-occupied households by race/ethnicity compared to rentals by race/ethnicity • Housing Cost Burden: The percentage of households that spend more than 30% of their income on housing • The rate at which individuals receive emergency housing, including how many people are unhoused/living in tents/cars/RVs • Have more data on the Affordable Home Buyers dashboard on the Community Hub • Number of subsidized units, as reported to the U.S. Department of Housing and Urban Development, in Bozeman as a proportion of number of households living in poverty Transportation Needs: • Access to transportation • Safety Recommendations: Recommendations for transportation include increasing the hours of operation, adopting innovative first mile/last mile solutions, and creating rider centered transit design. Recommended Indicators: • Percent of households without a vehicle by race and ethnicity: this information will not be available until the 2020 Decennial Census is available. • Means of transportation to work by vehicles available • Use local source for Streamline and Galavan ridership • Number of public transportation documents and signage translated into Spanish • Audible Crosswalks • Pedestrian and cyclist crashes by location Health Needs: • Access to healthcare • Mental health and substance use supports and programs 86 8GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Recommendations: Recommendations include using data driven solutions to address health inequities, confronting institutional racism and discrimination, and prioritizing health system and community collaboration. Recommended Indicators: • Drug use hospitalizations • Mental disorders hospitalization rate • Drug overdose mortality • Suicide mortality • Access to healthcare • Tracking the rate of translation services used • LGBTQ+ healthcare providers trainings Education Needs: • Increased opportunities for adult education • Addressing the disparity in k-12 education Recommendations: Recommendations include creating cradle-to-career educational systems, partnering with the community and leaders to advance educational equity, and investing in sector- based strategies and career pathways. Recommended Indicators: • Educational Attainment for the population age 25-64, by race/ethnicity • Number of job training programs and average cost • Demographics for workforce programs • Median earnings by educational attainment • Graduation rate by race/ethnicity, receiving free and reduce lunch, English learner status, experiencing homelessness, and students receiving IDEA services • Percent of students receiving free and reduce lunch by school location • 3rd grade reading scores by race/ethnicity, receiving free and reduce lunch, English learner status, experiencing homelessness, and students receiving IDEA services • Advanced Placement enrollment • School suspension and instances of bullying Childcare and Youth Programming Need: • Access to affordable programs 87 9GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Recommendations: Recommendations include supporting specialized childcare and youth programming for vulnerable communities, addressing the childcare benefits cliff, and expanding access to high quality, affordable childcare and early learning opportunities. Recommended Indicators: • Percent of children enrolled in school age 3 to 4 • Children younger than 6 by parental employment status • Free programs offered for youth • STARS to Quality Programs by level, and location in the community • Families in Bozeman with Income Below 200% of the Federal Poverty Level • Best Beginnings Child Care Scholarships for Bozeman Economic Opportunity Need: • Having living wage jobs Recommendations: Recommendations include institute a living wage. Enhance business retention and expansion services to include emphasis on job quality and diversity, equity, and inclusion. Use fiscal, purchasing, and incentive strategies to improve availability of quality jobs. Recommended Indicators: • Disability & unemployment ratio: between the unemployment rates for people with and without disabilities • Household income by race • Poverty: percent people below poverty by race/ethnicity and age • Unemployment: unemployment rate by race/ethnicity • Business Ownership- firms by race/ethnicity, age, and gender Quality of Place Needs: • Physical space needs including better trails and paths, safer built environment, and more recreational spaces • Increased access to broadband Recommendations: Recommendations include incorporating inclusive placemaking design strategies and the increased accessibility of broadband internet services. 88 10GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Recommended Indicators: • ADA compliant pedestrian ramps • Tracking accessible and inclusive signage and amenities in public spaces. Examples include gender neutral bathrooms and signs in braille. Other inclusive art or signs like the rainbow crosswalks or Black Lives Matter signs that indicate to the community the City supports all members of the community. • Percent of households without internet subscription by household income • Participation in recreation and culture activities and events • Number of City events that promote diversity, equity, and inclusion or celebrate diverse cultures. Examples are Pride, Juneteenth, Indigenous Peoples Day. Justice and Civic Health Needs: • Safety and justice reform • Civic engagement & representation in government Recommendations: Recommendations include recruiting and empowering diverse leaders, applying a racial equity impact analysis to policy decisions, deepening the connection between safety and justice, and investing in community equity and awareness training. Recommended Indicators: • Demographic breakdown of city employees • City employee cumulative turnover rate • Demographics of candidates applied, interviewed, and hired • Representation in government of City Commissioners • Bozeman Police Department call logs • Police Department representation • Traffic stops and arrests • Incorporate the Inclusive City Quarterly Reports as indicators 89 11GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT PROJECT OVERVIEW The City of Bozeman (the City) hired Thomas P. Miller & Associates (TPMA), an Indianapolis-based consulting firm, to measure equity and access to resources in the City. The purpose of this project was to establish a baseline to make Bozeman a more inclusive, welcoming, and equitable place. The Equity Indicators create ways to measure gaps and inequities, so the City can make data informed decisions about how to close those gaps and correct inequities. Ultimately, the goal is to ensure that every resident, visitor, and City of Bozeman employee feels welcomed, valued, and can thrive regardless of their race, identity, or life circumstance. The outcome of the Equity Indicators Project is this Gaps Analysis and the development of a set of equity indicators that can be used not only by the City, but also community members and organizations serving Bozeman. The TPMA and City of Bozeman used the following definitions to guide the work. • Equity: Ensuring that all residents, visitors, and City of Bozeman employees feel welcome, valued, and like they can thrive in our community no matter their race, identity, or life circumstance. • Equity indicator: A specific measurement that quantifies the disparity in experience between a community average and a given identity or characteristic (race, ethnicity, gender identity, ability, socioeconomic status). • Gaps Analysis: A process to identify which services exist and which are needed to provide all people with access to the things they need to thrive in our community. Data Gathering & Methodology This report relied on input from the community through a survey, facilitated conversations in focus groups, virtual one-on-one interviews, and two community forums. Data from the census and from local community needs assessments and other programmatic documents were also reviewed and included in this report. The community stakeholder engagement process provided opportunities to discuss pressing needs of the community, share the lived experience of community members and offer recommendations on what the equity indicators should measure. Qualitative data was collected through community forums, focus groups, interviews, and open-ended survey responses. TPMA utilized a mixed methods approach combining qualitative and quantitative data to provide insights. Qualitative data collected through interviews and focus groups were placed into a matrix that listed responses by interview questions (row) and participant (column). Based on participant responses, key words were identified and listed in the appropriate column and row to produce themes. For the surveys, data were exported into Excel for analysis. For quantitative data, Excel spreadsheets were cleaned and merged for analysis, while qualitative data from open-ended responses supplemented the themes identified in the matrix. The protocols for the interviews, focus groups, and survey are included in Appendix A of this report. 90 12GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Focus Groups and Interviews: Focus groups and interviews were conducted from April 28, 2021, through June 18, 2021, with 36 separate engagements during that time with a total of 64 Bozeman community members. Focus groups were conducted to better understand the equity in certain sectors; health, education, business, religious, and social service sectors were all included in focus groups. Interviews were conducted with organizations and individuals who are serving or belong to marginalized communities, completing equity work, or have insights into the needs and gaps in services in Bozeman. The individuals identified for the focus groups and interviews were determined by the internal City of Bozeman team with guidance from TPMA. When deliberating who should be invited to the focus groups and interviews the internal City of Bozeman team used stakeholder mapping, considering if the individual has a high or low level of influence in Bozeman or within a particular community, and if they had a high or low stake in the work being completed for the Equity Indicators project. Additional stakeholders were identified by participants in interviews and focus groups. Community Forums: On May 24th and May 26th TPMA and the City of Bozeman hosted two Community Forums. The forum invites were shared on the City’s social media, and through local news media outlets and shared with survey participants who indicated they would be interested in participating in a forum. The May 24th community forum had 12 participants and the May 26th community forum had 19 participants. Participants were asked questions about their lived experience in Bozeman. During the May 26th forum the zoom experienced a glitch ending the session early. A final community forum was hosted on June 30th to report out on what we heard during stakeholder engagement and ensure that input was reflected in preliminary indicators. The June 30th forum was attended by 33 community members. Survey: The survey was available in Spanish and English. There was a total of 1518 completed responses. 13 participants chose to take the survey in Spanish. In addition to the completed results there were 213 partial responses that were at least 50% complete that were included in the analyses. The survey was shared on social media, through local news media, sent to participants of the focus groups, and included in some of the City of Bozeman’s internal team signature lines. The purpose of the survey was to gather a better understanding of perceived needs in Bozeman, gather insights to strategies to increase equity in the city, and understand how individuals define equity and the city’s role in promoting equity. Participants were not required to answer all questions so there are a variety of response rates for each question. The survey draft can be found in Appendix A. The survey also collected respondents demographic information including age, employment status, race, ethnicity, ability, gender identity, and sexual orientation. These pieces of information were essential to separating responses based on an individual’s inherent characteristics or identity, also known as “disaggregating” responses. While the survey collected information to help disaggregate responses based on one’s race, ethnicity, gender, sexuality, and ability, the survey did not collect income level, so the results cannot not be disaggregated by socioeconomic status. 91 13GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Who Lives in Bozeman General Overview According to The US Census Bureau’s American Community Survey (2019: ACS 5-Year Estimates Data Profiles), the City of Bozeman has a population of 46,746i, making it the fourth largest city in Montana.ii Race and Ethnicity Overview The majority of the population of the City of Bozeman is White alone (89.6%), followed by those reporting that they are two or more races (2.9%). The City is made up of 3.6% non-White, single race members: 0.7% Black or African American alone, 0.7% Indian and Alaska Native alone, and 2.2% Asian alone. 3.8% of the population is Hispanic or Latinx (of any race).iii Racial diversity is low in Bozeman, MT.iv The national average for an area this size is 45,646 racially diverse peoplev, while there are 9,974 in Bozeman. Gender Overview Males make up 53% of Bozeman’s population, while females make up 47% of the population.vi Age Overview The largest age group in the City of Bozeman is between the ages of 20 and 24 (21.4%), followed by those between 25 and 34 years (19%). Overall, 62% of the population are 34 years of age or younger and 38% are 35 or older.vii Bozeman’s largest age group is slightly younger compared to the United States’ largest, 25 to 34 years (13.9%).viii Disabled Community Overview The disabled community makes up 7.6% of Bozeman’s population. Type of disability is broken down by hearing, vision, cognitive, ambulatory, self-care, and independent living difficulties. Cognitive difficulties make up the largest number of disabilities in the City (3.4%), followed by hearing difficulties.ix Bozeman has a smaller disabled population compared with the United States as a whole (12.7%), with the United States’ most prevalent disability being ambulatory difficulty (6.9%) and cognitive difficulty being third most common (5.2%).x 85 years and over 75 - 84 years 65 - 74 years 60 - 64 years 55 - 59 years 45 - 54 years 35 - 44 years 25 - 34 years 20 - 24 years 15 - 19 years 10 - 14 years 5 - 9 years Under 5 years HearingDifficulty VisionDifficulty CognitiveDifficulty AmbulatoryDifficulty Self-careDifficulty IndependentLivingDifficulty Age of Residents Type of Disability 1.1% 2.8% 1.3% 3.4% 2.6% 1.2% 2.2% 2.8% 5.4% 4.5% 4.2% 7.9% 11.7% 21.4% 19.0% 10.1% 4.1% 3.4% 4.5% 92 14GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Employment Overview There is a 70.5% employment rate in Bozeman, of those, 60% worked 35 hours or more in a week, 30% worked 34 hours or less, and 10% did not work.xi Bozeman’s 35+ hour workers are representative of the United States (61%). Bozeman’s population is made up of significantly more individuals working up to 34 hours a week compared with the United States rate (17%) and rates of those who did not work in Bozeman are significantly less than that of the United States (22%).xii Income Overview Those earning between $100,000.00 and $149,999.00 a year make up the largest group in Bozeman (23.6%). Those earning $50,000.00 to $74,999.00 make up the next largest group (16.4%), followed closely by those earning $75,000.00 to $99,999.00 (15.4%). Those earning less than $25,000 a year make up 8.3% of the population. Bozeman’s median income is $55,569.00, and its poverty rate is 17.8%.xiii The United States’ largest group are those earning $50,000.00 to $74,999.00 (17.4%). Those earning less than $25,000 a year make up 18.1% of the United States’ population. The United States poverty rate is 12.3%, lower than that of Bozeman, MT, with a higher median income than that of Bozeman ($65,712.00).xiv 35+ Hours/Week Up to 34 Hours/Week Did not work < $25K $25K - $50K $50K - $100K > $100K Employment Type Earnings 60.0% 8%18%32%42% 30.0% 10.0% Who Responded to the Survey? Survey Respondents, as Compared to General Population This survey was intended to reach as many Bozeman community members as possible with targeted outreach to Hispanic and Latinx communities. Local nonprofit and social service organizations were asked share the survey with their clients to ensure representation of their needs in the survey. As previously discussed in the Methodology section, this survey was used to establish overall community needs. Further analysis of demographic breakdowns and comparisons against the overall population are included in this section of the report. 93 15GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Race Data Nearly two-thirds (65.8%) of survey respondents were white. In sum, approximately 20% of survey respondents were non-White. White is the majority race in Bozeman (92%) and was also the majority race of survey respondents (65.8%). In Bozeman, communities of color make up less than 8% of the population but are represented by 22% of survey respondents. Specifically, Black or African American made up 4.5% of respondents, Hispanic or Latinx made up 4.4%, American Indian or Alaska Native made up 4.2%, Asian made up 3.6%, Native Hawaiian or another Pacific Islander made up 1.7%, Middle Eastern or North African made up 1.5%, and those races/ethnicities not listed made up 0.8%. Gender Data According to census data, the City of Bozeman is relatively equal in terms of sex makeup of the population; 53% of Bozeman residents are male and 47% are female. The survey asked respondents to identify as transgender or cisgender. Transgender (often abbreviated to “trans-”) was defined as a person whose gender identity, expression or behavior is different from those typically associated with their assigned sex at birth. Cisgender (often abbreviated to “cis-”) was defined as a person whose gender identity, expression, or behavior is the same as those typically associated with their assigned sex at birth. Respondents had the option to choose from cisfemale, cismale, transfemale, transmale, non-binary, prefer not to respond, or they could input their gender if it was not already listed. In contrast to the population of Bozeman, ciswomen made up the majority of survey respondents (58%) followed by cismen (26%). Approximately 4% of respondents were not ciswomen or cismen and 12% of respondents preferred not to respond. Race (N=1150)Gender (N=960) Not listed Hispanic or Latinx Native Hawaiian / Other Pacific Islander Middle Eastern / North African Asian White Black / African American American Indian / Alaska Native Prefer not to answer Female (cis-female) Male (cis-male) Prefer not to answer Non-binary Male (trans-male) Female (trans-female) Intersex, Genderqueer, Two spirit 65.8% 57.5% 26.4% 12.4% 2.1% 0.8% 0.7% 0.2%4.5% 4.2% 13.6% 0.8% 4.4% 1.7%1.3%3.6% 94 16GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Sexual Orientation Data Nearly three-quarters (73.3%) of survey respondents identified as heterosexual or straight. 9% of survey respondents were bisexual, 2.5% were gay or lesbian, and 2.2% of respondents’ genders were not listed (pansexual/pan, fluid, queer, or asexual/ace). 13.1% of respondents preferred not to answer. Age Data The largest group of survey respondents (37.5%) were between the ages of 26 and 40, which is slightly over representative of that age group in Bozeman (approx. 30%). Those who were over the age of 55 made up the next largest group of respondents (24.0%), which is slightly overrepresented as compared to the general population in this age group (17.0%). There were very few respondents under the age of 25 (10.4%); the population of those younger than 25 years old is underrepresented in the survey as this population makes up the largest group in Bozeman (43%) but is represented by 10% of survey respondents. Sexual Orientation (N=976) Age (N=1066) Prefer not to answerNot listed: Pan, Fluid, Queer, AceGayBisexualHeterosexual / Straight 0-18 19-25 26-40 41-54 55+Prefer not to answer 2.2% 22.1% 13.1% 24.0% 9.0% 6.0% 2.5% 9.4% 1.0% 73.3% 37.5% 95 17GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Full-time (40 hours) More than Full-time (40+ hours) Retired Multiple Jobs Part-time (< 40 hours) Student (University or Trade School) Unemployed Prefer not to answer High School Student Employment Status (N=1205) Respondents with Disabilities (N=1058) 37.1% 17.3% 10.8% 10.1% 8.8% 5.5% 5.5% 0.6% 4.3% Disability Data Survey respondents who reported having a disability are generally representative of the disabled population in the City of Bozeman. This community makes up 7.6% of Bozeman’s population and 9% of survey respondents. No Yes Prefer not to answer 83.3% 9.4%7.4% Employment Data Most survey respondents reported working full-time (37%), followed by those working more than full-time (17%). Unemployed participants made up only 5% of survey respondents. For those working 40 hours or more, the survey (54%) was representative of Bozeman’s population (60%). Bozeman’s population is made up of 10% of individuals who do not work. When considering unemployed and retired respondents, the survey is fairly representative (16%) of Bozeman’s population. 96 18GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT FINDING GAPS & UNDERSTANDING NEEDS Based on the stakeholder engagement, key needs and gaps were identified and were grouped into the following themes/categories: • Housing • Transportation • Health • Education • Childcare and Youth Programming • Economic Opportunity • Quality of Place • Justice and Civic Health Each category includes three sections. 1. “What We Heard” - Relevant findings from interviews, focus groups, survey results, and community forums. and recommendations. Findings were formed from both the stakeholder engagement and the community profile data analysis, as well as drawing on national best practices and insights shared by organizations currently serving Bozeman. Within this section, there is also an overview of publicly available data related to the category. This community data was collected from a variety of public sources, including the U.S. Census Bureau’s American Community Survey, Housing and Urban Development, and Montana Office of Public Instruction Gems Public Dashboard. The data regarding the social, financial, and general well-being of individuals in Bozeman has been analyzed and incorporated into each of the categories. 2. “Recommendations” - Based on what we heard and available data, this section outlines recommendations for programming or policy to support community needs or address gaps. 3. “Recommended Indicators” - Also included under each category are potential equity indicators the City could adopt. The recommended indicators utilize both local sources and publicly available data; they are not the only indicators that could be used, but reflect the gaps and needs reported by the community. The City of Bozeman will determine which indicators work best in developing an indicators dashboard. 97 19GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT In addition to these categories there were needs and gaps mentioned during stakeholder engagement that overlapped all categories those were: Increased information about resources // Stakeholders shared that they did not often know where to look for resources and that improved communication would increase individuals’ ability to access the resources needed. Spanish translation // With a growing Hispanic and Latinx population, the need for Spanish translation was mentioned regarding several of the categories listed above. Partnering with other organizations // There are local organizations that are working to increase equity and meet the needs of the community; stakeholders felt it was important that the City connect with these organizations, both so they could serve as experts and also to ensure services were not needlessly duplicated. More engagement opportunities for community participation // Stakeholders wanted opportunities to better engage in decisions the City was making. “The City Council must connect more with the community. Citizen involvement is critical to success in equity. Currently, [I] see few ways to be engaged with what you are doing,” explained one survey respondent. 98 20GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Overall Ranking of Large and Moderate Needs Affordable Housing Increased Availability of Living-Wage Jobs Substance Abuse Services Access to Mental Health Care Job Training Early Childhood Care & Education Homeless Support or Programs Out-of-School Time Programs for Children Improved Housing Quality Clean & Well-Lit Streets & Sidewalks Criminal Justice Reform Violent Crime Prevention Transportation To & From Work Access to Broadband Increased Access to Food Legal Help Access to Quality K-12 Education Transportation for Reasons Other Than Work Adult Education / GED / Language Programs Truancy or Dropout Programs College Enrollment / Persistence / Success School Safety Non-Violent Crime Prevention Access to Public Parks / Playgrounds Assistance with Public Health Hazards 68.9%11.3% 56.1%17.7% 39.9%31.6% 39.6%31.1% 25.49%35.4% 39.2%19.9% 30.5%28.2% 29.1%27.6% 26.6%28.0% 15.7%33.1% 15.5%32.3% 15.5%30.3% 12.6%30.2% 13.9%30.2% 13.4%27.1% 13.0%27.3% 13.3%23.9% 12.3%23.8% 9.6%27.4% 8.3%22.4% 17.9%27.9% 20.0%27.7% 21.9%22.9% 25.5%22.6% 25.5%22.5% Large Need Moderate Need Below is chart depicting the areas survey respondents identified as the most strongly needed and indicates what percent of respondents indicated there was a Large Need or a Moderate Need. The report further details these findings, the different areas of need are broken out in the next section and disaggregated when responses from demographic groups varied significantly. 99 21GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Perception of Equity in Bozeman Survey respondents were divided on the statement “The City of Bozeman is an equitable place to live and work.” Nearly 50% somewhat or strongly disagreed that Bozeman was an equitable place to live and work, 13% were neutral, and approximately 37% somewhat or strongly agreed that Bozeman is an equitable place to live and work. There is a perception from many stakeholders, particularly in the survey and community forums, that there were not inequities in Bozeman, and that all necessary services were already offered to community members. When asked in the survey “What services or opportunities for yourself or your family do you wish were available in your community?”, these respondents answered with a variation of no services were needed. However, many of them offered more insights than just writing none or no services needed, and they generally offered two types of written responses, “None, the community is great as is. Let’s not change it and make it worse!” and there are no services needed because the individual or family “have been privileged to have the community provide the services we need.” Survey respondents were also asked in an open-ended question, “How would you define equity?” There was a range of responses from equity being a political tool or buzzword to it being an instrument to address disparities. There were several survey respondents who indicated they believed that equality should be the focus instead of equity. Many respondents discussed equal access or equal opportunity; another word used frequently in definitions was fairness. Below are several quotes that showcase some of the different views on what equity means to survey respondents. • “Acknowledges that at times the allocation of resources and entitlements may need to focus on particular groups, individuals or areas of concern in order to allow and encourage their full participation in departmental practices and decision-making.” • “Believing all people are equal and treating them that way.” • “Addressing disparities in a way that acknowledges the vulnerability and unique needs of marginalized groups to promote equal opportunities for success and security.” • “Do for yourself and you will receive and equal opportunity. Everyone has equal access.” • “It’s not needed. Equity comes from good character and hard work!” • “Equal opportunity, respect, and support for everyone paired with an understanding of peoples differing family, social, racial, cultural and other backgrounds.” • “Equality has to do with giving everyone the exact same resources, whereas equity involves distributing resources based on the needs of the recipients.” Perceptions of Equity in Bozeman (N=1119) 24.9%25.5%13.2%14.9%21.9% Strongly agree The City of Bozeman is an equitable place to live and work Somewhat agree Neither agree or disagree Somewhat disagree Strongly disagree 100 22GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT • “Fair and impartial, opportunities for all people” • “Making sure no citizen is left behind in Bozeman’s growth.” • “Making sure everyone has the same opportunities, taking into account historical inequities” Perceptions of Equity by Subgroups As this study focuses on equity in the community, in many cases it is important to disaggregate responses or look at the data for subgroups of the population, not just for the population as a whole. Regarding the perceptions of equity in the community, survey data was analyzed by race & ethnicity, gender, sexual orientation, and age to determine if there are variances in the perceptions within these subgroups. Almost half of respondents (44.4%) who identified themselves as part of the population of color reported that they somewhat or strongly disagreed that Bozeman was an equitable place to live and work. This is relatively similar (approx. 6% difference) to the overall group of respondents. Of all respondents, the American Indian or Alaska Native group strongly disagreed with Bozeman’s equitability at the highest rate (38.9%). The percentage of people of color in Bozeman who somewhat or strongly disagree is fewer than the White respondents who somewhat or strongly disagreed (60.2%) that Bozeman was an equitable place to live and work. Of all respondents, Black or African American respondents strongly agreed with Bozeman’s equitability at the highest rate (53.3%). Perceptions of Equity by Race/Ethnicity (N=1079) 31.2% 23.3% 22.8% 24.9% 16.7% 23.5% 14.3% 29.0% 6.7% 28.1% 23.8% 38.9% 23.5% 7.1% 11.0% 10.0% 10.5% 4.8% 16.7% 11.8% 42.9% 15.8% 6.7% 8.8% 9.5% 11.1% 23.5% 14.3% 13.0% 53.3% 29.8% 33.3% 16.7% 17.6% 21.4% Strongly agree The City of Bozeman is an equitable place to live and work Somewhat agree Neither agree or disagree Somewhat disagree Strongly disagree White Hispanic or Latinx Black or African American Asian American Indian or Alask Native More than one race Other Race/Ethnicity 101 23GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Perceptions of Equity by Sexual Orientation (N=1060) 34.0% 9.2% 28.3% 40.4% 11.7% 23.7% 5.0% 16.7% 12.9% 11.3% 14.2% 15.7% 9.2% 48.3% 19.5% Strongly agree The City of Bozeman is an equitable place to live and work Somewhat agree Neither agree or disagree Somewhat disagree Strongly disagree LGBTQ Heterosexual Prefer not to say Nearly three-quarters of respondents (74.4%) who identified themselves as part of the LGBTQ+ population reported that they somewhat or strongly disagreed that Bozeman was an equitable place to live and work. This is a substantial difference from the overall group of respondents, where nearly half disagreed. The population of respondents who identified as straight responded in rates more closely aligned to the overall group of survey respondents, with 35.2% somewhat or strongly agreeing that Bozeman was an equitable place to work and live, as compared to 36.8% of the overall group of survey respondents. 40% of respondents strongly disagreed that the City of Bozeman is an equitable place to live and work, compared to 24% of non-LGBTQ+ respondents. Of the respondents who preferred not to disclose their sexual orientation, almost 50% believed that Bozeman was an equitable place to live and work. Cisgender men agreed that Bozeman was an equitable place to live and work at higher rates than any other gender. 47.1% of cismen strongly or somewhat agreed that Bozeman was an equitablie place and 40.4% strongly or somewhat disagreed with this. In contrast, 66.1% of ciswomen respondents, 83.3% of transwomen respondents, 100% of transmen respondents, 60.8% of non-binary respondents, and 100% of respondents whose gender was not listed either strongly or somewhat disagreed that Bozeman is an equitable place to live and work. 102 24GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Perceived Equitability by Age (N=1248) 36.4% 31.2% 32.3% 22.1% 23.7% 18.2% 29.6% 31.3% 19.3% 20.3% 27.3% 11.5% 8.3% 14.8% 13.4% 18.2% 13.3% 16.7% 18.9% 12.5% 15.2% 11.5% 25.0% 30.2% Strongly agree The City of Bozeman is an equitable place to live and work Somewhat agree Neither agree or disagree Somewhat disagree Strongly disagree 0-18 19-25 26-40 41-54 55+ Younger survey respondents were more likely to disagree that the City of Bozeman is an equitable place to live and work. 63% of respondents between the ages of 19 and 25 either somewhat or strongly disagreed and over half (54%) of respondents under the age of 18 either somewhat or strongly disagreed. In contrast, 43% of respondents ages 41 to 54, and 44% of those older than 55 years either somewhat or strongly agreed that Bozeman is an equitable place to live and work. 103 HOUSING 104 26GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT What We Heard: Housing Needs related to housing were identified in almost every focus group, interview, and forum. For the write-in survey question “What services or opportunities for yourself or your family do you wish were available in your community?” over 30% of written responses mentioned housing. There were a multitude of issues within the realm of housing that arose during the data collection, including access to and availability of affordable housing, and resources for individuals facing homelessness. Affordable Housing Access to more affordable housing was the number one need identified in the survey, with 69% of survey respondents reporting that affordable housing availability was a large need. This remained consistent when disaggregating by all demographics (e.g. race, sexual orientation, gender, etc.) This sentiment was present in the focus groups and interviews with even focus groups centered on health or education indicating housing was a need. One participant in the healthcare field shared when asked about other needs that “housing is another major issue. Probably the biggest.” When asked “What services or opportunities for yourself or your family do you wish were available in your community?” one survey respondent shared they wanted a “home I could afford for my wife and child, because even though I work 40-50 hours per week at a good wage, with no debt, I don’t have a chance to really take care of my family in that way.” Another reported, “Affordable housing is the biggest need. I’m a first year, highly-educated teacher who [can] barely afford to stay in the district. I will have to leave unless housing becomes more affordable.” Housing has been a high need in Bozeman for years, but after reviewing the Bozeman, Montana Community Housing Needs Assessment from February 2019,xiv it is clear that housing issues have been exacerbated by the COVID-19 pandemic. Participants shared that while housing has been an issue for the City of Bozeman for the last 5-10 years, they believed the pandemic has increased the number of people who can work remotely causing more people, especially those with higher incomes, to move to Bozeman. Recent trends from the 2019 report that were mirrored in focus groups, interviews, and community forums included that many residents “are stuck in their homes. With no rentals available, renters cannot move around as their housing situation changes. Owners looking to move as their families grow, or downsize as they age, cannot find affordable options on the market.” Several residents who participated in focus groups and community forums and who have lived in Bozeman for several years stated that they would never have been able to purchase their homes if the housing market was like it is currently. The need for affordable housing was identified as a significant need across all age groups Affordable Housing Availability (N=1719) 6.3%2.0%11.5%11.3%68.9% Large Need Moderate Need No Need Small Need Prefer not to answer / Unsure Level of Need 105 27GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT in the survey, at least three-quarters of all age groups reported affordable housing as a moderate or large need in Bozeman. All survey respondents under the age of 18 believed affordable housing was either a large or moderate need, and 89.0% of those between 19-25 years of age concurred. The need for access to affordable housing was identified as a large need at similar rate across all race/ethnicity groups in the survey. All race/ ethnicity groups reported at least a 60% large or moderate need for access to affordable housing in Bozeman – with the exception of Middle Eastern or North African respondents, in which 33.0% reported a large need and 0% reported moderate need for affordable housing. White respondents identified affordable housing as a large need at the highest rate (79.0%), followed by Hispanic or Lantinx respondents (72.0%) and Native Hawaiian or another Pacific Islander (71.0%). Out of State Homeownership and Short Term/Vacation Rentals Within the discussion around affordable housing, there was also concern about people moving into Bozeman who work remotely, individuals purchasing vacation homes, and homes being used for Airbnb’s instead of as rentals or made available on the housing market. One survey respondent shared they wanted “affordable housing for people with Montana wages. It feels like we are all being pushed out and the City doesn’t seem to care.” Another stakeholder shared “My rent continually goes up by quite a bit every year, there were a few rental homes that have been purchased and are now Airbnb’s. Across the street, there was a family and then someone bought the house and now the place is an Airbnb, and someone only stays there one week out of the month.” Need for Affordable Housing by Age (N=1262) 0-18 19-25 26-40 41-54 55+ 78.8%60.7%64.1% Large Need Moderate Need Small Need No Need Prefer not to answer / Unsure 90.9% 9.1%5.0%6.5%14.1%17.5% 6.0%7.8%14.5%15.0%4.0%4.8%6.3%6.8% 1.0%1.8%1.2% 84.0% 106 28GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Access to affordable housing was reported as a priority need for several distinct populations including individuals and families that fall under the poverty line, senior citizens, individuals and families who have immigrated to Bozeman, and individuals and families who are above the poverty line but still make less than the median income. One stakeholder shared that through her volunteer work she helped three families who immigrated to Bozeman. “Finding housing was hard. Difficult to rent, many live in RV park.” Lack of services to support non-English speakers and people without documentation make these communities in Bozeman especially vulnerable to housing insecurity. Additionally, there was concern for senior citizens and concern voiced by senior citizens who lived on a fixed income, impacting their ability to stay in Bozeman. A stakeholder shared that “seniors who have grown up in Bozeman and lived their whole lives [in Bozeman]” have been priced out of housing. Participants reported that to pay for housing costs, some individuals had to choose between housing and paying for basic needs and health care. Another participant shared “We cannot afford to rent or buy a home on current [professional] salary.” According to the Housing and Urban Development (2020) Assisted Housing: National and Local data in Bozeman, there are 570 subsidized housing units. 84% subsidized housing units are currently occupied.xv There are 3,815 households living below the poverty linexvi in Bozeman. Subsidized housing units cover only 14.9% of households living in poverty. 99% of households in subsidized housing units are very low income, and 85% are extremely low income. Additionally, the average length of time on the waiting list for subsidized housing is nearly 3 years. Total number of subsidized housing units 570 units Total number of individuals in subsidized housing units 759 individuals Average household income $12,855.00 % very low income 99% % extremely low income 85% % female headed household 64% % with disability 36% % minority 13% Average number of months on waiting list 35 months Average number of months since moving in 86 months Characteristics of Households in Subsidized Housing Units in Bozeman 107 29GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Currently, the City works in partnership with Human Resource Development Council IX (HRDC) to educate, certify, and prepare people to purchase an affordable home. The HRDC manages a waitlist for purchasing affordable homes that are built by HRDC and homes built in accordance with the City of Bozeman Affordable Housing Ordinance, prior to the outlawing of Inclusionary Zoning in the 2021 Montana State legislature. The Affordable Home Buyers dashboard on the Community Hub tracks progress on the waitlist. As of June 22, 2021, there are 46 people on the waitlist, and the wait time is well over one year, close to 16 months. The average household income for participants on the waitlist is $49,613. Prior to legislative changes in 2021, The City of Bozeman used Area Median Income to determine pricing of affordable homes and eligibility of buyers of those homes. Home buyers have an average Area Median Income (AMI) of 70.14%.xvii Below is the breakout of 2021 Median Income for Gallatin County.xviii 46 70.14%$49,613 494People on Waitlist Average % of AMIAverage Household Average Days Income On Waitlist Total number of subsidized housing units % Area Median Income 1 2 3 4 5 6 7 8 80%$49,784 $56,896 $64,008 $71,120 $76,810 $82,499 $88,189 $93,878 90%$56,007 $64,008 $72,009 $80,010 $86,411 $92,812 $99,212 $105,613 100%$62,230 $71,120 $80,010 $88,900 $96,012 $103,236 $110,236 $117,348 2021 Area Median Income (HUD) 108 30GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Housing Cost Burden Cost burdened indicates the extent to which housing costs exceed 30% of the income of residents. The Bozeman, Montana Community Housing Needs Assessment from February 2019 found that the “percentage of households paying over 30% of their income for rent plus utilities is very high (55%). These households are considered to be cost burdened, often having insufficient income left over for other life necessities including food, clothing, transportation, and health care.”xix Housing cost burden is a continued struggle for people renting and owning homes in Bozeman. This data aligns with the 2019 census data, as the percentage of households paying more than 30% of their income for housing remains high.xx However, more current census data, which would demonstrate the extent to which the COVID-19 pandemic affected housing burden, is not currently available. According to ACS data, renters whose income is below $35,000 are three times as likely as homeowners to be housing cost burdened.xxi Percent of Households That Pay More Than 30% of Income on Housing by Income Level Less than $20,000 $20,000 - $34,997 $35,000 - $49,995 $50,000 - $74,993 $75,000 or more Own Rent 6.50%6.20%5.30%6.00% 2.50% 19.4%19.0% 7.3% 5.0% 2.0% Equity Spotlight: According to the National Equity Atlas, “People of color are over- represented in these [housing cost burdened] populations; this is due in part to a long history of racial segregation forged through practices such as racially restrictive housing covenants, redlining, and discriminatory lending. People of color are also more likely to rent than own a home because historical dispossession and discrimination have prevented accumulation of wealth and upward mobility.”xxii 109 31GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Resources for Individuals Facing Homelessness Over half of survey respondents (58.7%) reported that there was a moderate or large need for more homelessness support or programs. One stakeholder shared that “many residents are struggling to find employment that pays a living wage, struggling to find affordable housing, and homeless high school students and other homeless people are especially concerning.” Other stakeholders shared they would like “more resources for our low income and homeless neighbors.” One stakeholder shared “Instead of receiving direct aid from the community, our neighbors who are hurting the most are expected to jump through bureaucratic hoops to prove need; many are long, slow processes, like waitlists for housing or seeing a counselor. This barrier to access creates bad outcomes for everyone. In the case of the houseless population, they are encouraged to leave the community entirely and seek help in other Montana cities.” Hispanic or Latinx and American Indian or Alaska Native respondents reported the highest levels of need for homeless support or programs (40.0%). 71.6% of White respondents and 60% of Hispanic and Latinx respondents believed there was a moderate or large need for homeless support or programs. Homelessness Support or Programs (N=1625) 16.3%4.2%11.5%28.2%30.5% Large Need Moderate Need Small Need No Need Prefer not to answer / Unsure Level of Need Need for Homeless Support or Programs by Race (N=1432) White Hispanic or Latinx American Indian or Alaska Native Asian More than one race Native Hawaiian or other Pacific Islander Black or African American Not listed above 37.6%34.0% 40.0%20.0% 40.0%10.0% 20.8%29.2% 30.0%16.7% 33.3%8.3% 14.0%18.6% 14.3%14.3% Large Need Moderate Need 110 32GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT When discussing programs or organizations in the area that were already working on addressing this need, the Human Resource Development Council (HRDC) was reported as the main service provider and connector of services in Bozeman. The HRDC shared, “on average, there are an estimated 100 homeless people in Bozeman on any given day.” According to the HRDC’s Community Profile for Bozeman in 2020, 291 individuals were provided with a warm, safe place to sleep in the winter months at the Warming Center and 180 individuals utilized the day center to access computers, snacks, and housing resources.xxiii Not all individuals experiencing homelessness utilize services like the Warming Center; it is important to also consider the needs of unhoused individuals that may reside in RVs, tents, or cars when developing homelessness supports or programs. Some individuals who felt that there was no need or a small need for supports expressed concern that having supports in place would encourage more individuals who were experiencing homelessness to come to Bozeman. Housing Recommendations Support and Expand Existing Housing Initiatives and Navigation Services Organizations like HRDC offer a suite of important housing services including the administration of housing choice vouchers, emergency rental assistance, homelessness prevention, and affordable housing properties. They also offer unique navigation services which help residents find, access, and maintain affordable housing. This is particularly critical for residents with low-incomes, for whom navigating the often complex and bureaucratic federal rental subsidy program can be burdensome. There is an additional need for these navigational services to be multilingual and accessible for the growing Spanish speaking population in Bozeman. Incentivize Affordable Housing Development One of the most significant trends in Bozeman is the widening gap between the highest earners and lowest earners. This manifests itself increasingly, in that the people who work in Bozeman, cannot afford to live in Bozeman; this includes residents who are being priced out of market rate housing options including single-family home ownership, multi-family home ownership, and rental units. As a result, many residents would like to see the addition of incentives in city policy that would make the development of affordable housing more attractive to developers. Examples of some of the incentive- based tools that should be considered include cost reduction programs, density bonuses, and down payment assistance and tax abatements: Cost Reduction Programs: Policy that reduces the cost of developing affordable housing. This may include development line items such as permit fee reductions, impact fees waivers, utility improvement, and hook-up fee reductions. 111 33GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Density Bonuses: Density bonuses can be used to provide additional flexibility to developers that incents the development of affordable housing. Using this policy, developers are able to build more housing on a site when they meet affordable housing guidelines as outlined by the City. Down Payment Assistance and Tax Abatements: Incentives that effectively reduce the equity/ debt needed either to build or buy a house will help lower the bar of entry for attainable housing production. Programs such as tax abatement and down payment assistance can be effective in encouraging housing production and home purchases.xxiv xxv Engage the Community to Purposefully Build Diverse Neighborhoods “Though many neighborhoods have “Black Lives Matters” signs in homes’ windows, I see VERY FEW people of color in Bozeman.” This quote from a resident highlights that while many in Bozeman would like to see a more diverse community, there is significant work to be done in making this reality in many of the city’s neighborhoods. Efforts to diversify neighborhoods both from an affordability standpoint and from a racial diversity standpoint will have varying responses from residents. Strategies that both broaden and deepen community engagement in these efforts will be critical to sustaining long term successes that result in a truly diverse community. This deepened community engagement will be connected to the civic health of Bozeman and its ability to create and sustain a civic infrastructure that invites community engagement. Equity Spotlight: Redevelopment of mobile home parks can cause challenges if resident displacement is not considered when they are closed. Strategies that should be deployed when considering the redevelopment of a mobile home park should include resident displacement mitigation strategies and mobile home park preservation strategies. Examples of these strategies include subsidizing relocation and increased rental costs, creating specific mobile home park zoning districts, and offering financial preservation incentives for park owners and developers.xxvi 112 34GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Housing Recommended Indicators The City of Bozeman is already tracking the work being done to add additional housing through the Community Hub. To put an emphasis on equity, it is recommended the City begins collecting more demographic data such as age, race, gender, and location in the City to better understand where and to whom City resources are going. It would also be helpful to track some more general indicators of housing in the City to share with community members, such as average listing price of houses, and to work with Community Partners to track the rate at which individuals receive emergency housing and subsidized housing. Initial recommended indicators include: 1. Average listing price for homes 2. Home ownership: percent owner-occupied households by race/ethnicity compared to rentals by race/ethnicity 3. Housing cost burden: the percentage of households that spend more than 30% of their income on housing 4. The rate at which individuals receive emergency housing, including how many people are unhoused/living in tents/cars/RVs 5. Have more data on the Affordable Home Buyers dashboard on the Community Hub 6. Proportion of subsidized units, as reported to the U.S. Department of Housing and Urban Development, in Bozeman compared to the number of households living in poverty 113 TRANSPORTATION 114 36GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT What We Heard: Transportation Transportation issues discussed in focus groups, interviews, and the community forums included not only discussion of the Streamline – the primary transit service for residents and visitors of Bozeman and surrounding communities – but also the use of trails and bike paths as a means of commuting, and not just for recreational purposes. Stakeholders shared there was a need for “better bicycle infrastructure for commuters” and “bike/walk paths separated from motor vehicle traffic.” Implementing such measures would help meet the need for “increased bicyclist and pedestrian safety.” In response to the question “what strategies or suggestions would you give to make Bozeman more equitable,” one survey respondent wrote they would like “better sidewalks and trails through town for safe, enjoyable bike/walk to work.” Survey respondents noted that transportation needs for traveling to or from work were greater than needs for other reasons. 47.8% of respondents indicated that transportation to and from work was a moderate or high need, while 42.8% of respondents believed transportation was a high or moderate need for reasons other than work. One respondent to the survey shared “I wish there were more public transportation options for those who do not drive or own a car, and multimodal transportation facilities that made it more appealing and approachable for people to choose to bike or walk.” Many survey respondents and stakeholders shared these thoughts when discussing operation of transportation, they reported the need for increased and diversified services, including being able to use multiple modes of transportation. Need for Transportation (N=1596; 1559) Large Need Moderate Need Small Need No Need Unsure / Prefer not to answer To and From Work For Reasons Other Than Work 15.5% 32.3% 23.7% 20.1% 8.3%9.4%12.6% 30.2% 26.5% 21.3% 115 37GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Need for Transportation for Those with Disabilities (N=99; 99) Large Need Moderate Need Small Need No Need Unsure / Prefer not to answer To and From Work For Reasons Other Than Work 22.2% 29.3% 21.2%24.2% 3.0%5.1% 20.2% 29.3% 18.2% 27.3% Means of Transportation to Work Car, truck, or van - drove alone Car, truck, or van - carpooled Public Transportation (excluding taxicab) Walked Taxicab, motorcycle, bicycle, or other means Worked from Home 8.8% 0.4% 6.6% 5.6% 7.3% 71.3% Notably, according to the ACS 5-year estimates, almost three-quarters (71.3%) of Bozeman households drove to work alone in a car, truck or van, while 8.8% carpooled. Almost 7% of households worked from home, though these data were pre-pandemic estimates, and that percentage is likely to have grown in 2020. Public transportation was the least utilized means of transport for work. However, as one stakeholder noted during a focus group, “Public transit is still new for the community. It has only been around 15 years, so the broader community still needs buy-in to support it.” While the overall majority of workers traveled to work by driving alone in a car, truck, or van, workers older than 16 who fell below 150% of the poverty level were more likely to use public transportation, according to the 2019 ACS 5-year estimates. Participants also reported that there was a need for the public transit system, Streamline, to be more accessible and available. One participant shared, “There needs to be more public transportation, longer hours, more accessible.” Concerns over access included better resources on the Streamline’s routes and times of operation. It was noted that it would help to have these resources available in Spanish, as well as English. Another need reported when discussing transportation was making the paths to transportation accessible, especially for senior citizens and individuals who are disabled. Of survey respondents that reported having a disability, about half believed there was either a large or moderate need for transportation to and from work (51.5%), and for reasons other than work (49.5%). 116 38GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT “Complete Streets design provides an environment where all street users, particularly the most vulnerable, can get around safely and efficiently. This means that regardless of the mode of transportation, the age, the ability, or the confidence level, streets are accessible, safe, and appropriate for the needs of all users. Complete Streets policies precisely aim at enabling safe use and support mobility for all users using various street design elements such as: • Pedestrian infrastructure: sidewalks, crosswalks, median crossing islands, curb extensions, pinch point, Accessible pedestrian Signals for visually impaired people, pedestrian wayfinding, greenery, and street furniture. • Traffic calming measures to lower speeds of vehicles: speed humps, speed tables, speed cushions, signage, and traffic lights. • Bicycle accommodations: protected or dedicated bicycle lanes, repair stations, and bicycle parking. • Public transit equipment: Bus Rapid Transit, bus pullouts, transit signal priority, bus shelters, and dedicated bus lanes.”xxvii Equity Spotlight: Participants shared that transportation, including walking, can be unsafe for individuals with disabilities. One individual with disabilities shared that when trying to cross Main Street, “it is a nightmare to understand traffic flows.” Utilizing Complete Streets design could help create better accessibility. Connection to Redesign Streamline 2020: Existing Service and Market Evaluation Findings from the Gaps Analysis are similar to those of the Redesign Streamline 2020: Existing Service and Market Evaluation which stated “in some cases, the lack of pedestrian infrastructure makes it unsafe or extremely unpleasant to walk to a bus stop on the main road.” Additionally, it was noted by stakeholders that the volume of stop announcements was affecting those who are disabled and senior citizens. A stakeholder mentioned that the announcements for the stops on the Streamline were turned “way down” so it was hard to hear when the stop was reached, this was particularly hard for individuals who may be blind or visually impaired, as well as for citizens who may have difficulty hearing low volume announcements. According to the 2020 Existing Services report “The backbone of Streamline are the four local routes serving Bozeman providing service 12-13 hours per day on weekdays and 10-11 hours on Saturday with half hour service during the AM and PM weekday peak hours and 60 minutes during weekday middays and Saturdays.” Stakeholders discussed that the Streamline schedule assumed everyone worked a 9 to 5 job and that if someone worked different hours, it could be difficult to utilize transportation. Stakeholders indicated they wished there was “better and more frequent public 117 39GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT transportation,” “better public transportation that’s economical,” and that there should be “expanded public transportation.” One stakeholder suggested increasing public transportation by having “half hour service and increased evening service.” The report also indicated the “majority of Streamline routes operate as a one way loop. This strategy maximizes coverage at minimal cost and is commonly used when resources are limited. However, one-way service results in a poor experience for customers. Riders must typically ride through the entire loop to end up at their origin, requiring significant out-of-direction travel and additional travel time.” Participants shared that individuals utilizing public transportation for reasons such as getting to work or getting children to daycare, are inconvenienced by one-way services making it hard to utilize the Streamline efficiently. Based off of the 2020 Existing Services report the “Routes were just redesigned for the fixed system. The purpose is to better serve the city and provide more access to transportation routes. Part of the redesign means tradeoffs.” One of the tradeoffs mentioned was taking service away from Four Corners which would have an impact on the disabled community. Transportation Recommendations Increase the Hours of Operation One survey participant shared the recommendation to increase “the number of pick-up times and spots for Streamline. The schedule assumes that people work 9 to 5 jobs, but that is not accurate. Service industry workers, cleaning industries, etc. work completely different hours and need access to this resource.” This sentiment was echoed in focus groups when discussing barriers to access to transportation. Adopt Innovative First Mile/Last Mile Solutions While the Streamline is often cited as an important asset for the community, there are gaps in service which include both frequency of service and geographic location of routes. This can mean that for riders there is a mismatch between their destination and the fixed schedule of public transit. To solve this issue, residents requested the expansion and enhancement of infrastructure to support alternative modes of transportation that complements existing transit services such as, “increased and safer bike lanes/paths for commuting (not just recreation)” and “bike/pedestrian pathways need to be greatly invested in and strengthened.”xxviii In addition to bike and pedestrian infrastructure, the community can explore the expansion of unified transit solutions that include care and bike shares, facilities for making modal connections, and additional technology solutions such as the RouteShout mobile app.xxix 118 40GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Create Rider Centered Transit Design Very often the individuals with the most knowledge and understanding of a public transit system are the riders themselves and yet, so often they are left out of decision-making processes. To build more equitable transit services, riders, residents, and community-based organizations should be centered in transit development conversations. Transit riders do not exist in a vacuum, their ability to use transit and be successful on the job, at school, and at home are all interconnected. Therefore, an equitable transit system must consider the holistic transit rider and connect to and enhance existing services such as housing, workforce development, and economic development opportunities.xxx An example of a successful transit strategy that recognizes these important intersections is the work of the HRDC to meet the needs of Spanish speaking riders with limited English skills. Through multi- lingual signage and personalized public transit tutorials, Streamline has recognized the need to create customized solutions to meet the needs of this community. With additional rider input, Streamline may find ways to increase the visibility of these opportunities and increase the usage of these services. Transportation Recommended Indicators The City is already tracking pedestrian and cyclist crashes as well as improvements being made to the streets, maintaining this as an indicator will help inform where improvements could be made to make the City safer. An indicator that summarizes the work being done and tracks how many accessible projects, such as audible crosswalks, would help the community know what actions the City is taking. Additionally, tracking who is using the Streamline and Galavan would be beneficial. Indicators informed by census data, such as the percent of households without a vehicle disaggregated by race and ethnicity, and the means of transportation to work by vehicles available, would help inform who is using what means of transportation and why. Initial recommended indicators include: • Percent of households without a vehicle by race and ethnicity: this information will not be available until the 2020 Decennial Census is available. • Means of transportation to work by vehicles available • Use local source for Streamline and Galavan ridership • Number of public transportation documents and signage translated into Spanish • Audible Crosswalks • Pedestrian and cyclist crashes by location 119 HEALTH 120 42GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT What We Heard: Health When discussing health needs in Bozeman, three main issues were discussed in the stakeholder engagement - accessing healthcare, mental health, and substance use. These align with the recent community health needs assessmentsxxxi (2017 Community Health Needs Assessment Report: Gallatin, Madison & Park Counties and the 2020 Community Health Needs Assessment Gallatin, Madison & Park Counties, Montana).xxxii In 2017, all three of the needs that were identified by stakeholders were among the top five in the prioritized list of community health needs for the three-county region and in the 2020 Community Health Needs Assessment, mental health, substance abuse, and access to health care services were in the top three prioritized community health needs. Stakeholders noted that accessing healthcare does not only include physical access to locations, ability to pay for services, and availability of medical professionals – though those are important components of access – but access also includes trusting providers to meet your needs and having access to the services you need. Accessing Healthcare Stakeholders reported that there is a need to increase trust in the healthcare system and local providers, in order to increase use of healthcare services. Stakeholders emphasized that for marginalized communities, almost everyone has had or knows someone who has had a terrible healthcare experience, which has limited use of healthcare services. Several participants shared experiences of being discriminated against or not receiving treatment they needed based on their gender identity or race. One participant shared, “people don’t access healthcare anymore because you can only have so many bad experiences with doctors in a place before you just don’t see them anymore.” Bilingual healthcare services: Stakeholders also reported that there was a need for practitioners who better understood and could serve their patients. Stakeholders emphasized the need for having better training and more accountability for medical professionals, so they are equipped to serve diverse populations. One participant shared “Patients would love to have bilingual healthcare providers. It’s not just a language barrier, it’s a cultural barrier. I’ve got some patients that would prefer to see someone that already speaks Spanish. There is a shortage of bilingual counselors.” Representation and diversity among providers: Participants noted that there is a need for enhanced recruitment efforts to attract and retain diverse medical professionals that are members of the communities that have been historically underserved by the healthcare system. One respondent believed a strategy to increase equity in Bozeman would be to “talk about race and the impacts it has had amongst BIPOC communities and what their lives actually look like in regard to trauma, resources, access, food, culture, erasure, microaggressions, chronic conditions, and mental and physical health of our bodies.” 121 43GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT LGBTQ+ affirming healthcare: Enhanced resources for LGBTQ+ patients, training, and an increased understanding from providers were identified healthcare needs for LGBTQ+ residents. Stakeholders shared that there was a lack of providers in Bozeman who understand LGBTQ+ health needs, particularly for transgender youth. A stakeholder discussed that providers are not trained to serve the LGBTQ+ community in their coursework and often have to find supplemental training and support, such as those provided by Bridgercare – a nonprofit reproductive healthcare facility – to better understand the needs of LGBTQ+ patients. One stakeholder reported they believed, “more medical providers should have more training on healthcare allies, and also transgender health. It’s a shame because it would be helpful and make more people feel welcome in the healthcare system.” This stakeholder went on to discuss that they “would love if that [training] was mandatory for all pharmacies” stating it would make “everyone feel more understood when getting their medication.” Stakeholders reported that without local providers who understand these needs, many residents either forego medical care or seek it out-of-state. Access to healthcare and insurance coverage: The 2020 CHNA found that “LGBTQ residents receive routine checkups at a level that is statistically similar to others in the community, but are more likely to report difficulties accessing services, and are more likely to be without insurance coverage.” Additionally, the 2020 CHNA found, “communities of color are much less likely to get routine checkups than White residents. And, while they don’t report access difficulties to a significantly greater degree, they are significantly more likely to be without health insurance coverage.”xxxiii Mental Health and Substance Use Bozeman stakeholders reported that there is a need for an increase in both mental health services and substance abuse support services, including more inpatient treatment options and more resources. Over 70% of survey respondents indicated there is a large or moderate need for both access to mental health care and substance abuse services. Regardless of age, sexual orientation, gender, and race, survey respondents agreed that there was either a large or moderate need for access to mental health services. One participant summarized the current situation in Bozeman by sharing “mental health and substance abuse are at the root of so many issues as is housing and food insecurity which are the result of wages that do not cover the cost of living.” Another stakeholder highlighted that the COVID-19 pandemic has resulted in inequitable access to mental health services. Stakeholders discussed how issues like housing security can be connected to mental health and substance use. One survey respondent shared they believed there should be better supports for homeless individuals where they “can receive the mental or drug care they need”. Others shared these sentiments stating, “I wish there were facilities that were able to expediently assist members of the community with their respective needs and be able to direct them to similarly expedient programs that address things such as homelessness, medical assistance, financial and legal help, as well as mental health.” 122 44GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Several respondents in the survey and focus groups indicated that not only increasing mental health practitioners was a need but there was also a need for “mental health services, especially inpatient adult and adolescent facility in Bozeman.” This need was echoed when discussing substance abuse services, when it was reported that there were additional services needed for substance use, including inpatient treatment options. Additionally, stakeholders expressed that there needed to be changes within law enforcement to better respond to individuals having a mental health emergency or who have substance use disorders. One survey respondent reported they wished “there were more resources and collaboration between law enforcement, the healthcare system, and mental health orgs [organizations] to support people with mental health needs.” Many stakeholders reported that increased demand for services, the cost of services, and perceived stigma around needing mental health care are all barriers that limit access to services for Bozeman residents. One participant shared, “There’s an access to care problem for mental health. We have a lot of people calling in for counseling referral and are able to connect with a counselor but can’t afford it. If you look at the types of insurance counselors take and the types of insurance people have there’s a mismatch.” Stakeholders consistently shared that there is often a wait to be seen by a mental health professional. In addition to the cost and the perceived stigma surrounding mental health, there are barriers to accessing mental health care. This was also found in the 2020 CHNA, where survey respondents reported, when asked about what most often prevents people who need mental health services from getting care, “most survey respondents mentioned stigma, cost, and availability of services.”xxxiv Need for Access to Mental Health Care & Substance Abuse Services (N=1524; 1515) Reasons For Not Accessing Mental Health Care Availability Stigma Cost 8.6% 8.6% 6.5% 6.5% 13.1% 13.3% 31.1% 31.6% 39.6% 39.9% Large Need Moderate Need Small Need No Need Prefer not to answer / Unsure Access to mental health care Substance abuse services 123 45GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT When assessing the Difficulty Accessing Mental Health Services, the 2020 CHNA found that “the prevalence of difficulties is much higher in Gallatin County (especially Bozeman)”xxxv compared to the total area, and that “among the small sample of those reporting difficulties, cost and barriers due to coronavirus were predominant reasons given.”xxxvi When discussing mental health, stakeholders also expressed that State of Montana policies impact the wellbeing of LGBTQ+ community members. One stakeholder shared, “the legislation has been really rough – the anti-trans bill. For those that identify as a sexual minority it’s been hard. A lot of people are struggling with what’s happening at the state level.” Ciswomen reported a large need for access to mental health services at a higher rate compared to other genders. Nearly three-quarters of ciswomen (72.5%) believed that access to mental health services in Bozeman was a large need. Similarly, all respondents whose gender was not listed reported a large need. Cismen (40.9%), transwomen (42.9%), and non-binary respondents (46.2%) reported a large need for access to mental health services at similar rates. Access to Mental Health Services by Subgroups (N=1066; 867; 1058 0-40 41+Not LGBTQ LGBTQ No Disability Disability 57.1%67.1%55.6%50.5% Large Need Moderate Need Small Need No Need Prefer not to answer / Unsure 58.7% 19.8%20.6%20.8%21.0%23.2% 14.5% 9.4%7.8%6.9%7.5%15.2%9.9% 14.9%9.6%11.6%12.1%11.1%5.3% 2.2%4.1%3.6%3.3%3.7% 53.0% 124 46GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT White respondents reported the highest levels of need for access to mental health services. Over three-quarters of white respondents (83.8%) believed there was a moderate or large need for access to mental health services. 80% of respondents whose race/ethnicity were not listed (N = 20), and 75% of Asian respondents also identified a moderate or large need for access to mental health services. Need for Access to Mental Health Services by Race (N=1524) White Not listed above Asian Hispanic or Latinx American Indian or Alaska Native Native Hawaiian or other Pacific Islander More than one race Black or African American 62.2%21.6% 35.0%45.0% 55.0%20.0% 45.7%20.0% 46.4%14.3% 50.0%10.0% 46.7%11.7% 21.6% 13.5% Large Need Moderate Need Equity Spotlight: Montana has ranked in the top five for suicide rates in the nation for the past thirty years for all age groups. In a report for 2019 in the National Vital Statistics Report, Montana has the 3rd highest rate of suicide in the nation.xxxvii The Montana DPHHS report Suicide in Montana: Facts, Figures and Formulas for Prevention shared that according “to the 2019 Youth Risk Behavior Survey, during the 12 months before the survey, 10% of all Montanan students in grades 9 through 12 had made a suicide attempt and 15.6% of 7th and 8th graders. For American Indian students, 15.4% had attempted suicide one or more times in the twelve months before the survey. There is a 380% increase in suicidal ideations for students getting “D”’s compared to “A”’s.” The report also highlights other populations, such as LGBTQ+ individuals, elderly, men, college students, and veterans, who have higher than average suicide rates.”xxxviii 125 47GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT When expressing the need for more mental health services, stakeholders also indicated that resources for individuals experiencing a substance use disorder was also a need. All survey respondents agreed that there was a large or moderate need for substance abuse services in Bozeman, with almost half of all respondents identifying this as a large need. When looking at subgroups, nearly three-quarters of respondents for all subgroups reported access to substance abuse services as a moderate or large need. Stakeholders responded to the survey question “What services or opportunities for yourself or your family do you wish were available in your community?” by listing several types of supports they saw as a need including “substance support groups for Alcohol that isn’t religious-based (AA) and support groups for cannabis abuse,” “teen substance abuse help,” and a “substance abuse treatment center.” Substance abuse services were identified as a large or moderate need at similar rates across subgroups. All groups – of all ages, sexualities, and disabilities – reported at least a 69% large or moderate need for substance abuse services in Bozeman. Access to Substance Abuse Services by Subgroups (N=1248; 976; 1515) 0-40 41+Not LGBTQ LGBTQ No Disability Disability 45.0%49.0%43.5%45.5% Large Need Moderate Need Small Need No Need Prefer not to answer / Unsure 44.0% 30.0%30.0% 30.0%30.4%24.2%24.0% 9.0%8.0%7.0%7.5%13.1%10.0% 15.0%11.0%12.0%12.0%14.1%8.0% 5.0%7.0% 9.0%6.6% 3.0% 42.0% 126 48GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Hispanic or Lantinx respondents reported the highest levels of need for access to substance abuse services. 82.7% of Hispanic or Lantinx respondents identified a moderate or large need for access to substance abuse services. 80% of Asian respondents, and 79% of White respondents also identified a moderate or large need for access to substance abuse services. Need for Substance Abuse Services by Race (N=1500) Hispanic or Latinx Asian White Native Hawaiian or other Pacific Islander Middle Eastern or North African More than one race Not listed above American Indian or Alaska Native Prefer not to answer Black or African American 37.9%44.8% 40.0%40.0% 48.7%30.3% 50.0%25.0% 16.7%50.0% 33.3%26.7% 40.0% 18.8% 20.0% 32.0% 42.9% 18.9% 14.3% 27.0% Large Need Moderate Need Health Recommendations Data Driven Solutions to Address Health Inequities Health inequities exist across the United States and the case is no different in Bozeman. To be successful in confronting these inequities, the community must understand the health outcomes being experienced by residents. To do this, healthcare systems and leaders must insist on disaggregating health outcomes by factors such as socio-economic status, race, gender, ability, and sexual orientation and making those outcomes publicly available. The integration of disaggregation into health dashboards will quickly highlight areas in which the healthcare system is serving populations differently. These differences should provide opportunities to design custom intervention to address disparities within the community.xxxix Confront Institutional Racism and Discrimination It is well documented that people of color and other marginalized communities experience disproportionately negative health outcomes when compared with their peers.xl Research tells us that in addition to the systemic factors outside of the healthcare system that influence health, the healthcare system itself was designed to center its services from the majority group’s perspective, which in the case of Bozeman is the white, heterosexual, able-bodied perspective.xli This institutionalized centering, while in many cases implicit, leaves other groups marginalized and on the fringe of an otherwise functioning healthcare system. 127 49GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Health Recommended Indicators For Health Indicators, it will be important to create data sharing agreements with local hospitals and health providers to get local data more frequently than it is shared at the state level and at a level that can be disaggregated by race, ethnicity, gender identity, sexual orientation, and ability when possible. In addition to those health indicators, tracking the rate of translation services and LGBTQ+ trainings would also help measure need and services. It was reported that there are already efforts underway between health organizations to create dashboards, so it would be beneficial for the City to connect to see if partnering is a possibility. Initial recommended indicators include: 1.Health indicators a. Drug Use Hospitalizations b. Mental Disorders Hospitalization Rate c. Drug Overdose Mortality d. Suicide Mortality e. Access to Healthcare 2.Rate of translation services used 3.LGBTQ+ health provider trainings conducted 4.Number of suicide prevention calls to the Help Center Prioritize Health System and Community Collaboration Health disparities and many of the factors associated with the social determinants of health happen outside of the physical walls of a healthcare system. The community plays an integral part in the health of residents and healthcare providers’ ability to connect, leverage, and center resources on improving health outcomes for marginalized communities. Many of the factors that keep people from regularly accessing and utilizing available healthcare services fall outside of the traditional purview of a healthcare provider, but without accounting for and mitigating against these factors, providers will continue to see poor health outcomes for marginalized communities. Examples of these types of integral community connections include understanding if a patient has paid time off to attend an appointment, understanding if a patient has access to transportation to appointments, and cultural competencies when dealing with particular communities.xlii 128 EDUCATION 129 51GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT What We Heard: Education Stakeholders considered K-12 education, post-secondary education, and adult education when discussions around educational topics arose. Survey respondents were split on whether these issues were of large/moderate need or small/no need. From the survey, 45% of respondents believed access to quality K-12 education was of large or moderate need, while 46% believed there was small need or no need. 42% believed adult education/GED/language programs were of large or moderate need but 39% believed in small or no need. 40% agreed college enrollment/persistence/success was of large or moderate need however, 46% believed there was small need or no need. Finally, 40% believed truancy or dropout prevention was a large or moderate need but 39% believed in small or no need. These split findings were relatively consistent when disaggregated by race, age, sexual orientation, gender, and location in Bozeman (NW, NE, SW, SE quadrants). Increased Opportunities for Adult Education Stakeholders shared in focus groups and interviews that they wished “more adult education opportunities” were available in the community, this included classes for seniors, job training, as well as career and technical experience opportunities. One survey respondent wrote, “[Bozeman] used to have a lot of adult education classes, but I think it’s at a minimum right now. What happened to them all? Computer classes, cooking, sewing, accounting, exercise, etc.” Education Needs (N=1519; 1492; 1563; 1480) Access to quality K-12 education Truancy or dropout prevention Adult education / GED / language programs College enrollment / persistence / success 13.4% 49.0%43.5% Large Need Moderate Need Small Need No Need Prefer not to answer / Unsure 22.9%27.1% 13.0%13.9% 28.2% 24.0% 20.9% 21.8%15.1% 22.2%25.5% 27.3% 23.6%24.2% 8.7% 13.1% 18.5%14.3% 21.9% 130 52GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT More than half of the survey respondents (60.9%) agreed there was at least a moderate need for increased job training in Bozeman, and a quarter of the respondents (25.5%) believed there to be a large need. Very few respondents (9.5%) believed that there was no need for increased job training in Bozeman. One stakeholder shared, “because of the service/construction industry, there are a lot of apprenticeship options because of the trades. Colleagues that have children who have gone through that, electrician, carpentry, but beyond those trades and the Gallatin College I’m not aware of what additional options there are.” Job training was identified as a large or moderate need at similar rates across subgroups. All groups – of all ages, sexualities, and disabilities – reported at least a 60% large or moderate need for job training in Bozeman. Need for Job Training (N=1483) 9.5%12.2%17.4%35.4%25.5% Large Need Moderate Need Small Need No Need Prefer not to answer / Unsure Need for Job Training by Subgroups (N=1483; 864; 1515) 0-40 41+Not LGBTQ LGBTQ No Disability Disability 26.5%31.3%25.3%45.5% Large Need Moderate Need Small Need No Need Prefer not to answer / Unsure 25.2% 35.2%36.3%37.8%37.0% 31.3% 32.7% 9.8%8.4% 12.6% 8.5%9.1% 9.3%18.1%15.9%16.1%16.6%17.2%12.0% 8.1% 7.0%15.3%14.7%12.5% 5.1% 27.7% 131 53GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Asian respondents reported the highest levels of need for job training in Bozeman. Three- quarters of Asian respondents identified a moderate or large need for job trainings. 47.9% of White respondents, and 60% of Native Hawaiian or another Pacific Islander respondents also identified a moderate or large need for job trainings. Need for Job Training by Race (N=1483) Asian White Native Hawaiian or other Pacific Islander Not listed above American Indian or Alaska Native More than one race Hispanic or Latinx Black or African American 55.0%20.0% 27.9%39.7% 30.0%30.0% 23.8%33.3% 40.7%14.8% 23.3%31.7% 23.5%23.5% 14.3%14.3% Large Need Moderate Need Within the City of Bozeman, 97.9% of the population over the age of 25 is a high school graduate or higher,xliii whereas 58.7% percent of the population over the age of 25 has a Bachelor’s degree or higher. When disaggregated by race, American Indian or Alaska Native individuals and individuals of Hispanic or Latin origin have a lower percent of high school or high school equivalent attainment than the community average. The disparity between education attainment and race is more prevalent in the percent of individuals who have a Bachelors’ degree or higher. As the graph below shows, individuals who are Black, American Indian or Alaska Native, Hispanic or Latino, or identified as some other races are less likely to have attained a Bachelor’s degree or higher. Educational Attainment by Race Age 25+ American Indian orAlaska Native Asian Black Hispanic or Latino Origin Some other race Two or more races White, not Hispanic or Latino High school graduate or higher Bachelor’s degree or higher 94.6%100%98.8%94.7%100%100%97.9% 22.6% 60.2%59.6% 38.9% 70.8% 44.5% 29.3% 132 54GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT The disparity in educational attainment impacts income, as individuals who have a high school diploma earn only 57% of the median earnings of an individual who has attained a Bachelor’s degree.xliv The table compares the median earnings by educational attainment, showing the correlation between increased educational attainment and increased median earnings. Educational Attainment 25+Median Earnings in Last 12 Months Less than high school graduate $15,842 High school graduate (includes equivalency)$24,026 Some college or associate’s degree $29,801 Bachelor’s degree $41,762 Graduate or professional degree $56,317 Disparity in K-12 Education Stakeholders expressed that Bozeman could be more equitable by focusing equity efforts on K-12 education, one strategy mentioned was to “close the achievement gap in schools.” One participant shared “we all want our students and children to be successful. [We want] our children to have it better than we did.” According to Bozeman Public School District’s graduation rates for the 2019-2020 cohort, similar disparities are present with American Indian/Alaskan Native students and Hispanic students having a lower graduation rate than their White and Asian peers.xlv It is important to note that the cohort graduation does not include students who did not complete their high school education in four years and the 2019-2020 rate did not have data available for Black or African American students. 2019-2020 Cohort Graduation Rate 75.7% 76.5% 78.6% 88.6% 95.0% Hispanic Multi-Racial American Indian or Alaska Native White Asian 133 55GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT In addition to a disparity between graduation rates between different races, students who qualified for free or reduced lunch or were homeless were less likely to graduate than their peers. Students who experienced homelessness in the 2019-2020 Cohort had a graduation rate of 55.0%, whereas 88.6% of students who were not homeless graduated.xlvi Students who participated in free or reduced lunch had a 69.5% graduation rate while students not eligible or not participating in free and reduced lunch had a 91.1% graduation rate for the 2019-2020 cohort.xlvii In the 2019-2020 cohort, students who were English Learners has a graduation rate of 65.5% whereas students who were not English Learners has a graduation rate of 86.7%.xlviii Students with disabilities who were receiving services under Individuals With Disabilities Education Act (IDEA) had a lower graduation rate (75.5%) than students not receiving services under IDEA (87.4%).xlix When comparing all the graduation rate demographics, housing security and whether a student experienced homelessness had the largest impact on graduation rates. 69.5% of free and reduced lunch participants graduated whereas 91.1% of students who were not eligible or did not participate in free and reduced lunch. English learners has a graduation rate of 65.5% whereas students who were not English learners have a graduation rate of 86.7% 55.0% of students who experienced homelessness graduated whereas 88.6% of students did not experience homelessness graduated. 75.7% of students with disabilities who were receiving services under IDEA graduated compared to 87.4% who were not. 134 56GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Resources for Students with Disabilities In addition to understanding the lived experience and having representation in curriculum, participants shared that education services to support students with disabilities, particularly developmental disabilities, was a need. One participant discussing K-12 education shared, “students with disabilities is big gap and funding for us is an issue for all these programs. Schools are asked to do more and more for students with greater and greater needs.” Another shared more broadly that for most resources, including educational resources, a “large funding gap exists for resources that support developmentally disabled.” Understanding Lived Experiences and Representation in Curriculum Stakeholders identified the need for educational staff, counselors, and teachers, to also serve students better through enhanced understanding. Some stakeholders identified training specially around cultural competency and diversity; other stakeholders thought having stronger recruitment and retention efforts for a more diverse teaching staff, including members of the BIPOC, Spanish speaking Hispanic and Latinx, and LGBTQ+ communities would help meet students’ needs. It was also suggested that teachers and staff who understand lived experience help create safe spaces for students and can better empathize and respond should instances of bullying occur. Stakeholders also shared there have been instances of bullying with regards to race, including a racial slur being written on school property. Understanding lived experience also includes understanding the different needs of students with disabilities. In discussions around education, particularly K-12 education, there was an emphasis on curriculum that was inclusive and representative of diverse populations. A participant referenced that diverse curriculum should not just be a part of electives, but “part of the core curriculum.” The participant noted that in looking at curriculum, “teachers are using derogatory statements [when] reading passages out loud in class.” Another shared that Bozeman could be equitable by “addressing it [equitability] at the school level by adding more inclusivity in learning and different cultures and people.” This included having books that were written by diverse authors and ensuring history classes did not only focus on the achievement and history of white men and women, but also shared the history of BIPOC and LGBTQ+ experiences and contributions to society. 135 57GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Education Recommendations Create Cradle-to-Career Educational Systems To build a more equitable school system in which all students achieve better educational outcomes, Bozeman must make a commitment to ensure that all students have the supports needed to be successful. Often the supports necessary for a student to be successful in the classroom are found in the community and must be leveraged within the school setting. Cradle-to-Career Education Systems utilize community resources to provide students with wrap around supports from birth through college. These supports can include health, social, and educational wrap around supports that are deployed appropriately throughout a student’s development. These supports should also reflect the students that they are serving and be culturally informed.l An example of this type of support would be increased English as a Second Language services for the City’s growing population of Spanish speaking students. Partner with the Community and Leaders to Advance Educational Equity Issues like income inequality and racism are too great for school districts to tackle alone. Each of these challenges require community champions who are both interested in systemic change and are supported and empowered to make that change. These champions can hold informal positions of power such as community members and PTO parents or formal positions of power such as school board members and teaching staff. These champions should also reflect the diversity of the community and be supported to amplify marginalized voices in the education system.li These champions, such as the school district’s diversity, equity, and inclusion committee, should be empowered to design and implement equity strategies like updating curriculum to be racially informed and the recruitment of diverse faculty and staff as recommended in stakeholder feedback. Sector Based Strategies and Career Pathways Invest in sector-based strategies and career pathways that can move individuals into jobs with family sustaining wages, in particular the construction industry where “if we can train people on how to build, we can overcome the labor shortage and associated costs, while possibly building the affordable housing that Bozeman so desperately needs.” Sector-based strategies are an employer-driven model for aligning resources and promoting collaboration among educational institutions, workforce service providers, and community-based organizations to meet the needs of business. They offer a way to simultaneously meet business’ needs for a robust and qualified workforce, while also expanding access to the skills that lead to jobs with family sustaining wages for workers.lii 136 58GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Recommended Indicators: Education Graduation rates and other public-school data is publicly available however there may be indicators that are not captured in that data that through a data agreement with the local school district could provide additional insights to equity, advanced placement enrollment is one such indicator that may not be reported at the state level. It would also be beneficial for the City to track adult education programs and opportunities available to community members. Initial recommended indicators include: • Educational Attainment: Educational attainment for the population age 25-64, by race/ethnicity • Number of job training programs and average cost • Demographics for workforce programs • Median Earnings by Educational Attainment • Graduation Rate: race/ethnicity, receiving free and reduce lunch, English learner status, experiencing homelessness, and students receiving IDEA services • Percent of students receiving free and reduce lunch by school location • 3rd grade reading scores: race/ethnicity, receiving free and reduce lunch, English learner status, experiencing homelessness, and students receiving IDEA services • Advanced Placement Enrollment • School Suspension and Instances of bullying: though with the number of instances and small number of minority students these may not be able to be disaggregated without potentially identifying students. 137 CHILDCARE & YOUTH PROGRAMMING 138 60GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT What We Heard: Childcare & Youth Programming Almost half (45%) of survey respondents believe access to quality K-12 education is a large or moderate need, 59% of survey respondents believe early childhood care and education is a large or moderate need and 57% of survey respondents believe out-of-school time programs for children and youth are a large or moderate need. The need for early childhood care and education was identified as a large or moderate need at similar rates across subgroups. All groups – of all ages, sexualities, and disabilities – reported at least a 48% large or moderate need for early childhood care and education in Bozeman. The largest need was reported by heterosexual respondents, of which 69.4% identified early childhood care and education as a large or moderate need. Out-of-School Time Programs for Children & Youth and Early Childhood Care and Education (N=1502; 1575) Out-of-School Time Programs for Children & Youth Early Childhood Care & Education 29.1% Large Need Large Need Moderate Need Moderate Need Small Need Small Need No Need No Need Prefer not to answer / Unsure Prefer not to answer / Unsure 27.6% 39.2% 12.3% 15.4% 17.0%15.5% 13.9% 10.0% 19.9% Early Childhood Care & Education by Subgroups (N=1575; 867; 1515) 0-40 41+Not LGBTQ LGBTQ No Disability Disability 49.8%36.8%45.2%34.2%45.6% 19.0%20.0% 19.6%20.2% 14.1%20.4% 17.7%10.6% 9.1% 11.7% 26.3%13.8%15.1%10.6%10.8%12.9% 15.2%9.9% 5.7% 10.8%14.3%19.1%10.0%10.1% 41.5% 139 61GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Three-quarters (75.6%) of ciswomen respondents reported a large need for early childhood care and education. Cismen respondents reported a 59.8% large or moderate need for early childhood care and education. Transwomen (42.9%) and non-binary (42.3%) respondents reported a large or moderate need at similar rates, and all respondents whose gender was not listed reported a large or moderate need for early childhood care and education. White respondents reported the highest levels of need for early childhood care and education in Bozeman. 69.8% of White respondents identified a moderate or large need for early childhood care and education. 61.9% of Asian respondents, and approximately 58% of Native Hawaiian or another Pacific Islander (58.3%) and Hispanic or Lantinx (57.9%) respondents also identified a moderate or large need for early childhood care and education. According to the 2019 American Community Survey 5-year estimates there are 10,348 individuals between the ages of 0-19 in Bozeman, which is approximately 22% of the total population of Bozeman.liii While most of this population falls between the ages of 15-19, there are still around 20% that are children (approximately 2,000) under the age of 5. Need for Early Childhood Care by Race (N=1575) White Asian Native Hawaiian or other Pacific Islander Hispanic or Latinx More than one race Not listed above American Indian or Alaska Native Black or African American 49.3%20.5% 38.1%23.8% 33.3%25.0% 42.1%15.8% 30.0%20.0% 22.7%27.3% 32.1%10.7% 10.0%30.0% Large Need Moderate Need Age of Children in Bozeman Under 5 years 5 - 9 years 10 - 14 years 15 - 19 years 45.8% 15.4% 20.2% 18.6% 140 62GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Poverty guidelines, issued by the United States Department of Health and Human Services, simplify the equation for the official poverty thresholds used to determine the poverty rate. According to the guidelines, a one-parent household with one child is considered “in poverty” if their income is less than $17,420 each year. A two-parent household with two children is considered “in poverty” if their income is less than $26,500.liv Federal Poverty Level The federal poverty level provides a baseline for determining a community’s economic health, but the full extent to which poverty’s effects negatively impact communities and individuals requires a thorough understanding of local context. Also, once above the poverty level, individuals may still struggle to make ends meet depending on the local cost of housing, food, childcare, transportation, and medical care. # of Persons in Household 2021 Federal Poverty Level for the 48 Contiguous States (Annual Income) 50%100%130%150%200% 1 $6,440 $12,880 $16,744 $19,320 $25,760 2 $8,710 $17,420 $22,646 $26,130 $34,840 3 $10,980 $21,960 $28,548 $32,940 $43,920 4 $13,250 $26,500 $34,450 $39,750 $53,000 5 $15,520 $31,040 $40,352 $46,560 $62,080 6 $17,790 $35,580 $46,254 $53,370 $71,160 7 $20,060 $40,120 $52,156 $60,180 $80,240 8 $22,330 $44,660 $58,058 $66,990 $89,320 Add $4,540 for each person in household over 8 persons 141 63GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Affordable Childcare & Youth Programming While there are some affordable childcare options in Bozeman, not all families qualify for the support they need to make childcare affordable. There are some affordable childcare options, such as HRDC’s Early Childhood Education, but to qualify for childcare, families in the program must be “experiencing homelessness, receiving TANF/SSI, have a foster child, or are below 130% of the federal poverty guidelines.”lv This often leaves families, who earn above 130% of the federal poverty guidelines unable to afford childcare. For example, a single parent with 2 children would not qualify for childcare if they made over $28,548.lvi The Living Wage Calculation for Gallatin County, Montana estimated the typical expense for childcare for one adult and two children is $17,507 and to support the typical expenses of a family of that size in Gallatin County would require an annual income of $81,794 before taxes.lvii According to the 2019 5-year American Community Survey estimates, of the families that fall below 200 percent of the federal poverty level, over half (56.8%) are above 125% of the federal poverty level but still below 200%. Being below 200% of the federal poverty level for the family mentioned in the example above would have an income under $43,920.lviii Families in Bozeman with Income Below 200% of the Federal Poverty Level 50% of Poverty Level 125% of Poverty Level 150% of Poverty Level 185% of Poverty Level 200% of Poverty Level 30.2% 10.1% 23.1% 20.2% 16.4% 142 64GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Source: U.S. Census American Community Survey, 2015-2019 5-Year Estimates: Table B23008 Focus group participants discussed that not having affordable childcare could impact employment, for example one adult in a two adult household would not be able to work as they would be the primary caretaker for young children, participants noted that this impacts women more frequently than men. Additionally, one participant shared, “[There is] now a childcare desert and [that is] making it harder on working families and people that want to own businesses.” Another participant reported, “childcare in Bozeman has been a problem for many, many years.” The chart below details the number of children younger than 6 years old who have parents in the labor force. Women were more likely to not be in the labor force, only 7.3% of mothers in two-parent families were the only worker in the labor force.lix Evidence suggests that children who struggle to adapt to abrupt transitions from childcare to kindergarten may benefit from dedicated efforts to make this transition smoother.lx To put this struggle in the context of Bozeman, there is a large difference between the percentage of children enrolled in school (defined as nursery, preschool, kindergarten, or elementary school) at ages 3-4 and the percentage enrolled at ages 5-9. In Bozeman, as many as 40.4% more 5-9-year-old children are in school as 3-4-year-old children.lxi Childcare options that included early education programming helps set the tone for a smooth transition by helping prepare children for the rules and structure of school, but research emphasizes that this must be paired with ongoing support even after children enter kindergarten.lxii Children Younger Than 6 by Parental Labor Force Status With All Parents in Labor Force At Least One Parent Not in Labor ForceTwo-Parent Family Single-Parent Family 1,062 422 907 School Enrollment by Age 3 and 4 years 5 to 9 years Enrolled Not Enrolled 54.6% 95.0% 45.4% 5.0% 143 65GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Currently Bozeman has 11 programs that are part of the Best Beginnings STARS to Quality Program, a voluntary quality rating and improvement system that aligns quality indicators with support and incentives for early childhood programs and early childhood professionals.lxiii STARS to Quality Programs Stars Program Type Program Name 5 Family Mosaic Early Learning, LLC 4 Group Quail Hollow Dippers 3 Center AWARE Early Head Start at Hope Lutheran 3 Center Bozeman Montessori 3 Center Quail Hollow Cooperative Day School 2 Center Gallatin Valley YMCA Hawk’s Nest Early Learning Center 2 Center Montana Kids Too 1 Center ASMSU Daycare Preschool 1 Center Montana Kids 1 Center The Gathering Place Pre-STAR Group Little Blessings Family Daycare Lack of out-of-school time programs for children and youth also impacts families, especially in summer months. When asked what opportunities or services survey participants would like to see in their community, several written suggestions were offered for “more free programs for children and teens and young adults.” Another stakeholder shared that they would like “affordable youth programming and sports that don’t need signed up for 4-6 months in advance, easily available pool access and lessons, academic enrichment opportunities/clubs that aren’t dependent on being in the ‘right’ school district.” Participants also reported that not having affordable childcare and programs for youth in the summer meant that some parents were leaving their children in the care of the oldest child in the family while parents worked. Focus group and interview participants mentioned that low-income families and families who had parents who worked outside of the City were more likely to be impacted by lack of programming during the summer, specifically more options for families in the Hispanic or Latinx community were requested. Additionally, it was noted that even though schools may offer programs before and after school, if certain populations of children and youth cannot access them for reasons such as lack of transportation or language barriers, then the program still was not meeting the need. 144 66GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Childcare and Youth Programming Recommendations Support Specialized Childcare and Youth Programming for Vulnerable Communities “When discussing childcare and the out-of-school time programs for children and youth, participants discussed that while childcare and out-of-school time programming were needed for most, the needs were different between different communities. Additionally, the need for resources translated in Spanish was a need in multiple sectors and was prevalent in the discussions around childcare and out- of-school time programs for children and youth. For both the LGBTQ+ community and the Hispanic and Latinx community, participants discussed that there were not central locations where children and young adults could gather and where parents would feel their children were safe. • For the Hispanic and Latinx community, the participants suggested the need for a space that could serve as childcare center, especially during the summer months when schools were closed. It was noted there is fear of the U.S. Immigration and Customs Enforcement in undocumented communities, and that any organization or space would have to be trusted if they were to serve this community. • In the LGBTQ+ community, the focus was more on the need for an inclusive location where children and young adults could have programming and access to resources, including inclusive programming that respected gender identity and parent support resources. “I’d really love to see an LGBTQ Center established to provide support and space for youth and adults,” shared a survey respondent. Address the Childcare Benefits Cliff For families in Gallatin County, childcare is a significant expense. For many low-income families, their ability to access high quality, affordable childcare is dependent on their ability to access public childcare benefits. A person’s ability to access these benefits is often financially based which means that increases in wages can have unintended consequences where families can unexpectedly lose significant benefits due a small increase in earnings. To mitigate against the benefits cliff, policies should allow for benefits to be phased out more gradually, access to benefits programs should be expanded by increasing eligibility limits, and strong program coordination so that families do not lose multiple benefits due to modest wage increases.lxiv 145 67GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Expand Access to High Quality, Affordable Childcare and Early Learning Opportunities The need for expanded access to high quality childcare and early learning opportunities was noted by residents throughout stakeholder engagement efforts. A family’s ability to access these services is a determining factor in success on the job and future educational achievement. As one resident noted, these services go even further to supporting overall family well-being; “More support for young families. We are past this in our family, but we need more QUALITY pre-K childcare (especially [for] infants). Also, general support for families, including housing and emotional wellbeing.” To expand access, Bozeman should be thinking about not only the quantity of childcare options available, but also the quality and how that quality is defined. Many assessments for childcare quality do not consider characteristics related to equity. These characteristics can include curriculum and pedagogy that are culturally responsive, expanded family and community engagement efforts, dual language accessibility, and supports for culturally informed childcare options such as family childcare.lxv Childcare and Youth Programming Recommended Indicators For Childcare and Youth Programming the most useful indicators will be a mix of local data paired with census data that helps contextualize the needs of families in Bozeman. Initial recommended indicators include: •Percent of children enrolled in school age 3 to 4 •Children younger than 6 by parental labor force status •Free programs offered for youth •STARS to Quality Programs by level, and location in the community •Families in Bozeman with Income Below 200% of the Federal Poverty Level •Best Beginnings Child Care Scholarships for Bozeman 146 ECONOMICOPPORTUNITY 147 69GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT What We Heard: Economic Opportunity Nearly three-quarters of survey respondents (73.8%) reported that increased availability of living-wage jobs was a high or moderate need in Bozeman. The increased need for higher wage jobs corresponds to the expressed high need of affordable housing. One stakeholder emphasized that “up until recently wages weren’t keeping pace with wages nationally. People can’t afford to live in Bozeman making $18/hr.” According to the American Community Survey 5-year estimates (2015-2019), the City of Bozeman has an average household median income was $55,569.00.lxvi Only two groups of households were above the median income – Asian and White. While Asian households had almost twice the average median income, $106,204.00, White households were slightly above the average at $57,523.00 and all other households were below the average. Black or African American households made slightly less at $54,375.00 and American Indian and Alaska Native households made $50,536.00. Households that selected some other race or Hispanic or Latino origin had the lowest median income, $43,023.00 for some other race and $33,833.00 for Hispanic or Latino households. Need for Increased Availability of Living-wage Jobs (N=1605) 14.8%1.8%9.7%17.7%56.1% Large Need Moderate Need Small Need No Need Prefer not to answer / Unsure Household Income by Race $33,833 $43,023 $50,536 $54,375 $57,523 $106,204 Hispanic or Latino Origin (of any race)Some other race American Indian or Alaska Native Black or African American White alone, not Hispanic or Latino Asian 148 70GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Living Wage Jobs The need for good-paying jobs is vital for Bozeman, according to stakeholders. Many participants shared that service industry workers could not afford to live in Bozeman, and that while unemployment rates were low, employers were going to struggle to find and retain employees since workers were not able to find affordable housing in Bozeman. “Affordability and livability are a major problem. Many businesses can’t find employees who are willing to work low-paying jobs, and many people can’t afford to live in Bozeman. I moved to Bozeman 6 months ago, have a good paying job with my partner who works in the area, but I don’t know if Bozeman will be a long-term place for us because we can’t afford to live here,” shared a survey respondent. Another participant added “I wish my salary kept up with cost of living expenses.” “Fair wages consistent with cost of living here,” shared another participant in response to what opportunity or services they wanted for themselves or their families. Several survey respondents believed the City of Bozeman has a role in creating living wage jobs. One survey respondent shared, “City government must be proactive implementing with their own staff first for equal pay, diversify, and require all contractors to comply. Then come up with ways to get private business, Gallatin County, to do the same with incentives offered.” Another respondent suggested the City should give “rewards or tax breaks to businesses that pay their employees living wages on par with the cost of living with the area.” Other participants thought the City should “support small and local businesses.” When discussing strategies to make Bozeman more equitable, one participant shared that the City should be supporting minority-owned businesses and businesses that serve minority populations and highlighting those businesses within the community. The most recent Survey of Business Owners and Self-Employed Persons (SBO) from the United States Census Bureau was conducted in 2012, at the time Bozeman was estimated to have 7,473 total firms, 26.6% of that were owned by women and .03% that were minority owned.lxvii Equity Spotlight: In addition to supporting minority owned businesses, a stakeholder shared it was important to enact policies that supported and protected minority workers. One of the recommended laws the City could adopt was the CROWN Act. “The CROWN Act, which stands for ‘Creating a Respectful and Open World for Natural Hair’, is a law that prohibits race-based hair discrimination, which is the denial of employment and educational opportunities because of hair texture or protective hairstyles including braids, locs, twists or bantu knots.”lxviii 149 71GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT 1 Adult 0 Children 1 Child 2 Children 3 Children Living Wage $14.98 $31.11 $39.32 $51.87 Poverty Wage $6.13 $8.29 $10.44 $12.60 Minimum Wage $8.65 $8.65 $8.65 $8.65 2 Adults (1 Working) 0 Children 1 Child 2 Children 3 Children Living Wage $23.96 $28.87 $32.73 $36.37 Poverty Wage $8.29 $10.44 $12.60 $14.75 Minimum Wage $8.65 $8.65 $8.65 $8.65 2 Adults (Both Working) 0 Children 1 Child 2 Children 3 Children Living Wage $11.98 $17.09 $21.68 $26.16 Poverty Wage $4.14 $5.22 $6.30 $7.38 Minimum Wage $8.65 $8.65 $8.65 $8.65 Economic Opportunity Recommendations Institute a Living Wage The residents of Bozeman are ready for a raise with countless survey respondents, focus group participants, interviewees, and community forum participants citing the unaffordability of living and working in Bozeman. A minimum wage increase would benefit many workers in Bozeman; it would drastically improve conditions for people of color and women and begin to narrow pay gaps between these groups and their White counterparts.lxix The living wage shown below is the hourly rate that an individual in a household must earn to support his or herself and their family in Gallatin County. The assumption is the individual is working full-time (2080 hours per year).lxx 150 72GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Enhance Business Retention and Expansion Services to Include Emphasis on Job Quality and Diversity, Equity, and Inclusion Local government, chambers of commerce, economic development organizations, and other community leadership groups are regularly interacting with businesses. As a part of those existing conversations, these groups are well positioned as trusted partners to begin shaping employer practice change towards greater jobs quality and improved diversity, equity, and inclusion. These strategies can include targeted communication and outreach around specific workplace policies, implementation of programs to improve employer practice, and recognition of employers of choice who demonstrate and excel in creating workplaces that center job quality and diversity, equity, and inclusion. Use Fiscal, Purchasing, and Incentive Strategies to Improve Availability of Quality Jobs Local government is uniquely positioned to positively influence area business behavior by leveraging its public purchasing power to reward and incentivize businesses who are creating high quality and equitable work environments. To do this, local governments can employ a number of strategies including community benefits agreements, procurements processes – which favor high quality employers, and subsidized services and technical assistance to businesses interested in improving the quality of their jobs.lxxi While the City does have applications for business licenses, it does not include demographic information. As the City looks to better understand and serve the community, knowing the demographics of business owners will help inform what supports can be offered.   Economic Opportunity Recommended Indicators Economic Opportunity indicators would benefit from being a mix of census level indicators and local indicators. Once measures are established and the City is able to track the changes over time, it would be beneficial for the City to change Economic Opportunity to Economic Mobility. Economic mobility is a measure of how much a person’s income changes over time.lxxii The City should focus on indicators of economic opportunity and then, as the City has data that is disaggregated, adapt the measure to be longer term, looking at mobility. Initial recommended indicators include: • Disability & unemployment ratio: between the unemployment rates for people with and without disabilities • Household income by race • Poverty: Percent people below poverty by race/ethnicity and age • Unemployment: Unemployment rate by race/ethnicity • Business Ownership: Firms by race/ethnicity, age, and gender 151 73GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT QUALITY OF PLACE 152 74GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT What We Heard: Quality of Place Improving Quality of Place - which has been defined as “the physical characteristics of a community, the way it is planned, designed, developed and maintained that affect the quality of life of people living and working in it and those visiting it both now and in the future,” - was an identified need in the survey.lxxiii Survey respondents, when asked “What services or opportunities for yourself or your family do you wish were available in your community?,” had several suggestions, including: • Better trails and paths • Safer built environment • More recreational spaces, such as a swimming pool or splash park While quality of place needs were not identified as the largest needs in Bozeman to advance equity, there was still a desire among respondents for additional amenities. Even though recreational water facilities, swimming pools, and splash parks were mentioned as a service or opportunity survey respondents wanted, 60.9% of survey respondents indicated that access to parks and playgrounds was a small need or no need. However, there was a large number of respondents who wanted recreational options and amenities. One survey respondent shared they wished “we had a real rec center with family centered amenities and hours. The swim center is entirely insufficient both in what is offered and when. A splash park, slides, play features, etc. would be a great service to our community.” When considering building or expanding services, the City should examine who would utilize the services and ensure any new additions meet the needs of the community, such as being ADA accessible and having inclusive signage. The majority of survey respondents thought there was a moderate or small need for clean and well- lit streets. As mentioned in the Transportation section of this report, stakeholders shared safety of sidewalks and bike paths were a concern, especially for senior citizens and individuals with disabilities. The transportation insights regarding Complete Streets have elements that can also be applied to designing public spaces as stakeholders mentioned a need for “more wheelchair accessibility for public events such as Sweet Pea and farmers markets” as well as “more wheelchair accessibility in Bozeman such as parks and trails.” In addition to making public spaces accessible for individuals with Quality of Place Needs (N=1541; 1531) 29.4% 16.5% 3.1% 2.8% 31.5% 32.0% 23.8% 33.1% 12.3% 15.7% Large Need Access to public parks/playgrounds Clean and well-lit streets and sidewalks Moderate Need Small Need No Need Prefer not to answer / Unsure 153 75GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT disabilities, it was also discussed that not everyone in Bozeman is fit and the City could help in “ending weight stigma and making more inclusive spaces for people of various sizes.” Additionally, stakeholders thought public spaces, such as parks, could provide venues to help celebrate diversity and promote a better sense of understanding and empathy in the community. Stakeholders thought community events, both educational and recreational, would be a good way to promote equity and understanding in the community, sharing the strategy that the City could “create *free and affordable* community activities and spaces.” Additionally, stakeholders shared the City should “provide educational spaces to provide awareness on equity and what that looks like.” Broadband In addition to physical spaces and safety, access to broadband and digital connectivity add to quality of place. 47.7% of survey respondents reports a large or moderate need for access to broadband. Over one-quarter (27.7%) of respondents believed there was a moderate need for access to broadband in Bozeman. 65.3% agreed in some level of need for access and 20% identified this as a large need. Need for Access to Broadband (N=1680) 16.3%18.5%17.6%27.7%20.0% Large Need Access to Broadband Moderate Need Small Need No Need Prefer not to answer / Unsure 154 76GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT At least half of American Indian or Alaska Native respondents (53.2%), White respondents (51.3%), and Asian respondents (50%) identified a moderate or large need for broadband. 48.4% of respondents who were more than one race reported a moderate or large need for broadband. Need for Access to Broadband by Age (N=1680) 0.0% 11.0% 12.5% 17.4% 12.9% 54.5% 28.0% 22.0% 14.0% 11.3% 27.3% 23.0% 19.3% 21.3% 14.5% 9.1% 24.0% 25.5% 28.9% 29.7% 9.1% 14.0% 20.8% 18.3% 31.6% Large Need 0 - 18 19 - 25 26 - 40 41 - 54 55+ Moderate Need Small Need No Need Prefer not to answer / Unsure Need for Access to Broadband by Race (N=1680) American Indian or Alaska Native White Asian More than one race Native Hawaiian or other Pacific Islander Hispanic or Latinx Not listed above Black or African American Middle Eastern or North African 31.3%21.9% 22.0%29.3% 33.3%16.7% 16.7%31.7% 14.3%28.6% 18.6%23.3% 16.7%25.0% 16.7% 12.5% 14.3% 12.5% Large Need Moderate Need When disaggregated by age, the survey results showed that individuals age 55+ selected access to broadband as a large need more frequently (31.6%) than any other age demographic. The older population in Bozeman (55+) identified access to broadband as a large need at higher rates than younger respondents. 61.3% of respondents ages 55+ agreed that access to broadband was a large or moderate need. As the age of respondents increased, the level of agreement that broadband was a large or moderate need also increased. 155 77GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Equity Spotlight: According to the National Digital Inclusion Alliance, “Digital Equity is a condition in which all individuals and communities have the information technology capacity needed for full participation in our society, democracy and economy. Digital Equity is necessary for civic and cultural participation, employment, lifelong learning, and access to essential services.”lxxv Percent of Households Without Internet Subscription by Household Income 4.3% 11.6% 24.3% $75,000 or more $20,000 - $74,999 Less than $20,000 Income is another factor that impacts the need for broadband. According to the American Community Survey 5-year estimates, 10.9% of households are without an internet subscription of any sort, including broadband. When disaggregated by household income, 24.3% of households that earn less than $20,000 are without internet subscription, whereas 4.3% of households that earn $75,000 or more are without internet.lxxiv 156 78GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Quality of Place Recommendations Incorporate Inclusive Placemaking Design Strategies Bozeman and its residents pride themselves on their love of the outdoors and all of the activities that come along with it – skiing, hiking, camping, etc. It is one of the many reasons that residents reported choosing to live in Bozeman and many public spaces have been designed with this stereotypical Bozeman resident in mind. Despite residents citing recent park designs as being particularly welcoming, there are still opportunities for placemaking processes to become more inclusive. Largely, this means centering planning activities on individuals who may not already have a seat at the planning table but for whom access to public spaces and places is equally as important, such as those with disabilities, young people, people of color, or the LGBTQ+ community. These types of inclusive processes allow diverse sets of users to define spaces, program goals, and efforts and generate deeper connections in the community.lxxvi Focus on Digital Equity Efforts The challenges of the Covid-19 pandemic emphasized the need for digital connectivity in the way people work, learn, and socialize. Access to broadband and computing devices, such as computers or smartphones, is essential in helping people thrive and access the digital economy. Brookings released an essay as part of their the Actionable Ideas for Economic Recovery in American Cities, about digital equity offices sharing, “American households cannot access the digital economy due to physical gaps in local broadband networks, unaffordable subscription plans and personal devices, and a lack of digital skills.” Digital equity offices would aim to address these structural barriers and ensure the digital economy reaches all local households.”lxxvii The City could benefit from establishing a digital equity office or similar initiative, as the office “will create a permanent administrative unit to prioritize historically disadvantaged groups and neighborhoods, build trust, and create interventions to directly benefit those who have struggled the most to digitally compete.” Quality of Place Recommended Indicators Quality of Place equity indicators recommendations are centered around data the City currently collects and local data the City could begin to collect. Initial recommended indicators include: • ADA Compliant Pedestrian Ramps • Broadband and Internet access • Tracking accessible and inclusive signage and amenities in public spaces. Examples include gender neutral bathrooms and signs in braille. Other inclusive art or signs like the rainbow crosswalks or Black Lives Matter signs that indicate to the community the City supports all members of the community. • Percent of Households without Internet Subscription by Household Income • Participation in Recreation and Culture Activities and Events • Number of City events that promote diversity, equity, and inclusion or celebrate diverse cultures. Examples are Pride, Juneteenth, Indigenous Peoples Day 157 JUSTICE &CIVIC HEALTH 158 80GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT What We Heard: Justice & Civic Health The concerns from stakeholders with regards to Justice and Civic Health centered around key themes including: • Safety and Justice Reform • Civic Engagement & Representation in Government The National Conference on Citizenship (NCoC), a nonprofit dedicated to advancing civic life in America, defines civic health as “the manner in which communities organize to define and address public problems” and has found that communities with strong indicators of civic health “have higher employment rates, stronger schools, better physical health, and more responsive governments.”lxxviii NCoC’s Civic Health Index uses measures such as voter registration and turnout, as well as community engagement such as volunteering to measure civic health. Safety and Justice Reform Approximately half of survey respondents agreed that there was a moderate or large need for criminal justice reform (48.1%) and violent crime prevention (48%) in the City of Bozeman. Several survey respondents discussed defunding the police to support other services. “Defund the police and give the budget to affordable housing, homeless and domestic violence shelter, food access assistance, and mental health care providers,” said one respondent. Another stakeholder shared, “There is much pushback against the proposed strategy of defunding the police, and often the pushback is uninformed.” Not all respondents thought reform and crime prevention should be accomplished through defunding police, one survey respondent called for “more aggressive policing of homeless and drug addicts.” Need for Criminal Justice Reform 29.4%3.1%31.5%23.8%12.3% Large Need Moderate Need Small Need No Need Prefer not to answer / Unsure 159 81GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT While nearly half (47%) of all respondents from any age, sexuality, or disability group identified criminal justice reform as a large or moderate need, respondents belonging to the LGBTQ community reported the largest need for criminal justice reform. 69.5% of LGBTQ respondents identified criminal justice reform as a large or moderate need in Bozeman. Further, 41.7% of this group identified criminal justice reform as a large need. Large Need Moderate Need Small Need No Need Prefer not to answer / Unsure Need for Criminal Justice Reform by Subgroups (N=1576; 866; 1576) 0-40 41+Not LGBTQ LGBTQ No Disability Disability 27.4%41.7%26.8%34.3%30.3% 26.8% 22.4%26.9%25.4%18.2% 27.8% 29.3%21.1% 10.1% 24.4%29.3%13.2% 16.9%10.4%12.3%13.6%14.1% 9.9% 6.5% 23.4% 11.4%7.3%9.8%4.0% 24.8% Female (cis- and trans-) and non-binary respondents reported that criminal justice reform was either a large or moderate need at higher rates than other genders. 66.3% of ciswomen, 71% of transwomen, 57.7% of non-binary respondents, and all respondents whose gender was not listed believe there is a large or moderate need for criminal justice reform. In contrast, 44.5% of cismen, and no transmen reported criminal just reform as a large or moderate need. 160 82GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Asian respondents identified a moderate or large need for criminal justice reform at the highest rates. 61.9% of Asian respondents believed in a large or moderate need for criminal justice reform in Bozeman. Over half of White respondents (58%), American Indian or Alaska Native respondents (53.6%), and respondents of more than one race (53.3%) reported a moderate or large need for criminal justice reform. Need for Criminal Justice Reform by Race (N=1576) Asian White American Indian or Alaska Native More than one race Hispanic or Latinx Native Hawaiian or other Pacific Islander Not listed above Black or African American 33.3%28.6% 31.2%26.8% 28.6%25.0% 23.3%30.0% 27.0%21.6% 27.3%9.1% 19.0%14.3% 12.2%19.5% Large Need Moderate Need A survey participant responded to the question of “What strategies or suggestions would you give to make Bozeman more equitable?” by suggesting the City “reimagine what public safety is to ensure BIPOC community members feel safe.” Another respondent shared that the City should be “adequately dealing with hate crimes and the overall intolerance of White community members.” Need for Crime Prevention (N=1534; 1549) Non-violent crime (graffiti/theft) prevention Violent crime prevention 9.6% Large Need Moderate Need Small Need No Need Prefer not to answer / Unsure 27.4% 25.5% 7.6% 26.1% 37.3%15.3% 18.1% 9.8% 22.5% 161 83GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT According to Emsi’slxxix Regional Comparison Table, Bozeman has a lower property crime rate and violent crime rate than both the United States and Montana. Bozeman’s violent crime rate was 2.3 violent crimes per 1000 people compared to the State rate of 3.97 and the national rate of 3.53.lxxx Property crime rates per 1000 people were 12.77 for Bozeman, Montana was 21.65, and the national rate is 19.79. Even though the crime rates were less than state and national rate, some stakeholders shared they felt unsafe, especially while they advocated for equity. Violent Crime 2.3/1,000 12.77/1,000 Property Crime Bozeman, MT has 2.3 violent crimes per 1,000 people. The national rate is 3.53 per 1,000 people Bozeman, MT has 12.77 property crimes per 1,000 people. The national rate is 19.79 per 1,000 people Many of the insights and strategies stakeholders shared are actions the City is working on after the Inclusive City Report. The Inclusive City Report May 2021lxxxi shows an update on the actions the City has taken given the suggestions from stakeholders such as “make sure the City is equitable within itself, City of Bozeman agency, before making change within it constituents.” However, since much of the feedback from stakeholders is the same as these very actions that the City is taking for Inclusive City, Bozeman may need to explore ways to better share these efforts with community members. 162 84GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Civic Engagement & Representation In Government Survey respondents reported having a low level of confidence in the City of Bozeman in its ability to make Bozeman more equitable. Almost half of respondents (48.8%) felt somewhat unconfident or very unconfident in this ability. A survey respondent shared, “It’s hard not to be discouraged by who’s running our state. It’s hard to think you can make a difference when our state is doing what it’s doing to limit what we can do. I don’t really know what the City of Bozeman is doing.” Stakeholders expressed a desire for more ways to engage in policy decisions with the City; however, as one stakeholder shared “the city’s rules and bylaws are not accessible to the average person.” The City of Bozeman must look at its own practices and equity as it works to make a more equitable City. Stakeholders in the focus groups, interviews, and survey shared that the City, as an organization, and organizations in Bozeman needed to recruit and retain BIPOC staff members. Stakeholders noted the importance of representation in key leadership roles. One survey respondent shared, “City employees are largely white. The City should recruit more people of color and create employment practices that help to retain these employees.” Respondents pointed out that the City needed to be sure they had equitable practices and work on needs within in the organization before the City would be able to be a leader in equity efforts. Confidence in Bozeman (N=1050) 23.1%25.7%21.8%22.5%6.8% Very Confident Somewhat Confident Neither Confident Nor Unconfident Somewhat Unconfident Very Unconfident 163 85GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Justice and Civic Health Recommendations Recruit and Empower Diverse Leaders Residents recommended that Bozeman institutions should “actively seek, recruit and hire BIPOC individuals into leadership positions. More BIPOC teachers, counselors and community leaders. Actively and purposefully seek out diversity in the workplace while advertising across platforms that attract BIPOC professionals.” Having leaders from diverse populations, especially those most adversely affected by inequity, ensures that individuals with lived experiences have a meaningful voice in community decision making. They can also lift up issues such as “race and the impacts it has had amongst BIPOC communities and what their lives actually look like in regard to trauma, resources, access, food, culture, erasure, micro aggressions, chronic conditions and mental and physical health of our bodies” in a way in which a leader from the majority identity may not be able. Apply a Racial Equity Impact Analysis to Policy Decisions Racial equity impact analysis (REIA) tools are a “systemic examination of how different racial and ethnic groups will likely be affected by a proposed action or policy change.”lxxxii The purpose of these types of tools is to ensure that unanticipated adverse consequence are minimized for diverse communities when new policies are implemented. Due to the systemic nature of racial inequity, it is often perpetuated through regular decision making about policies, institutional practices, programs, planning processes, and budgetary decisions. An REIA tool, mitigates against the unintentional perpetuation of inequity and lifts up alternative solutions. This shift to applying an equity lens to all decisions was emphasized in stakeholder engagement, “Equity has to be a cornerstone of all discussions. When the City examines planning proposals, it must consider how the proposal contributes to its equity commitment.” Deepen Connection Between Safety and Justice When comparing violent crime and property crime per capita data between Bozeman and other similarly situated cities, Bozeman typically ranks below the average. However, when reviewing stakeholder engagement data, residents reported a disconnect between this relatively low crime rate and the feeling of safety among residents, particularly with regard to policing. During stakeholder engagement, several priorities outlined in the Inclusive City Report were supported by stakeholder recommendations: • Continue to deliver and enhance officer training on implicit bias and de-escalation techniques; “The police and sheriff’s office to self-report to the community about how they tackle issues of fairness. Do they use de-escalation techniques? Do they train their officers to recognize gender, race, sexual orientation biases?” • “Creating a paid position for civilians to ride with every officer on duty. Give them weapons, de- escalation and mental health training. The individual WILL NOT carry a firearm but is there as a mediator as well as a witness. An easier and cheaper fix would be to mandate body cams on on- duty officers.” 164 86GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT •Increased investments in “affordable housing, homeless and domestic violence shelter, food access assistance, and mental health care providers,” rather than additional policing. Invest in Community Equity and Awareness Training Through stakeholder engagement, it is evident that residents, leaders, businesses, and community- based organizations are all at different points in their journeys to better understand and implement strategies that can support the diversity of their community. One way in which Bozeman can begin to lay a strong foundation for this work is to create a shared language for equity across the community. In particular, this type of training can be used to raise awareness about the issues facing diverse communities, particularly communities of color in Bozeman. This desire to amplify diverse experiences with the community was recommended through the stakeholder engagement process and included the suggestions to “increase awareness of BIPOC people living in our community, promote acceptance, ensure equal access through assistance and advocacy.” Implement an Open and Transparent Processes for Decision Making and Gathering Feedback Issues of diversity, equity, and inclusion are complex and historically speaking, efforts to create a more equitable country are relatively new. As a result, government transparency in decision making and clear processes for resident feedback are essential. There is no single roadmap for creating a more equitable community. There will be a diversity of opinion, there will be pushback, and there will be missteps. Only by building trust with residents and working in true partnership with community members can the City move forward on creating a more just and equitable Bozeman. Justice and Civic Health Recommended Indicators All indicators in Justice and Civic Health would use local data. The Inclusive City Quarterly Reports have data that if made into a dashboard could serve as an equity indicator and also allow the community to better access and understand the actions that are occurring as the City looks to become more inclusive. Initial recommended indicators include: •Demographic breakdown of city Employees •City employee cumulative turnover rate •Demographics of Candidates Applied Interviewed and Hired •Representation in Government of City Commissioners •Bozeman Police Department Call Logs •Police Department Representation •Traffic stops and arrests •Incorporate the Inclusive City Quarterly Reports as indicators 165 CONCLUSION& NEXT STEPS 166 88GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT CONCLUSION & NEXT STEPS Equity is not accomplished overnight. Establishing Equity Indicators will not serve the City well, unless these indicators are consistently reviewed, updated, and are used to inform actions. This report serves as a starting point to develop meaningful indicators that can help inform the gaps in services and help the City better understand the lived experiences of community members. While other cities may have adopted a larger number of indicators, it is recommended that Bozeman start with the suggested indicators identified in this document to establish baseline data, and then build in additional indicators once the City understands the capacity and ability to maintain and update the indicator data. As indicators are adapted or added, it provides a chance for the City to further engage with the community and develop stronger partnerships with community organizations. After the baselines are firmly established, and as trends are discovered within the data, it will be important to set targets and plan for meaningful actions to move towards the targets. The City is encouraged to continue to engage the community in developing an equity action plan, hold those responsible for implementing changes accountable, and share progress and barriers to progress along the way. Increased transparency about both successes and areas for growth will build further buy-in towards improving equity in Bozeman. TPMA and the City of Bozeman thank all the individuals who contributed to this effort through focus groups, interviews, community conversations and surveys. Your insight on these issues will continue to guide this work in the City of Bozeman and throughout the Gallatin Valley in partnership with the many organizations working to make Bozeman a place where everyone belongs and all can thrive. 167 89GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT APPENDIX A | DATA COLLECTION TOOLS Focus Group Protocols Intros TPMA Explains the Purpose of the Focus Group: Welcome! Thank you for joining us today. My name is XXXX and I will be facilitating this conversation today with me is XXXX who will be assisting by taking notes. As many of you know The City of Bozeman is identifying ways to measure equity and access to resources in the community. The purpose of this project is to establish a baseline from which to measure ongoing work in equity and inclusion. Today we would like to talk with you about the services you offer, issues that your clients/ patients face, barriers that exist, as well as what kinds of data or metrics could help your organization bolster justification or funding for additional services. The report will not individually ID you •Ask permission to record. TPMA is recording, but won’t share recordings or notes with the City of Bozeman •The report will help the City of Bozeman as they develop equity indicators and understanding the gaps in services across the city 1.Tell me about your position/organization. a. (If applicable) What community challenges is your organization working to impact? Background 1.In your sector what are the main problems or issue areas within this topic that individuals/families in Bozeman are facing? a. Are some residents experiencing these issues differently based on their race, gender, etc. 2.Is there anything unique about Bozeman that has caused or exacerbates these issues? 3.Does your organization / or sector face any barriers to providing services to your clients or to making the desired change in your community? If so, what? 4.What resources in your sector or overlapping sectors currently exist to address these issues? a. Who accesses these? 5.What gaps in services are individuals/clients feeling? E.g. a. who doesn’t get services, b. who no longer gets services, c. what types of services are not available in Bozeman d. what problems cannot be solved by a known service? 168 90GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Equity (define equity) 1. How does your organization (or sector) center diversity, equity, inclusion, and belonging? 2. What if anything, is your organization doing to help achieve a more equitable Bozeman? 3. What are ways, if any, could your sector/org be more equitable? 4. In your work have there been certain populations that have not been connected or received services? a. Why? 5. If you had one suggestion for how to improve equitability in Bozeman what would it be? Define Equity indicators: A specific measurement that show the disparity in outcomes between a community average and a given identity or characteristic (race, ethnicity, gender identity, ability, socioeconomic status). Examples include: Housing - Home loan approval by race and ethnicity and Education - School absenteeism by race and ethnicity 6. Does your organization collect data/ report on metrics? a. If so what are some of the key points? b. Have you seen different outcomes for different populations of people? 7. Are there any equity indicators or data that would be useful to your organization? Any other thoughts you would like to share? Gap Analysis Community Focus Group Protocols Welcome/Introduction (5 mins) TPMA Explains the Purpose of the Focus Group: • The report will not individually ID you • Ask permission to record. TPMA is recording, but won’t share recordings or notes with the City of Bozeman • The report will help the City of Bozeman as they develop equity indicators and understanding the gaps in services across the city Community (7 mins) 1. What are 3 words you would use to describe your neighborhood a. What do you like or not like about where you live? b. Is it safe? 2. Do residents in your community or neighborhood care and support one another? If so, how? 3. Do stores in your area supply the necessities you require on a day to day basis? (food, water, etc.) a. Nutrition (grocery access, meals programs, etc.) b. Exercise (parks, playgrounds, etc.) 4. Are people of all races, ethnicities, and backgrounds given the same opportunities/ have access to the same resources and services? 169 91GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT a. How diverse is your neighborhood? b. Do you think the City of Bozeman is segregated? 5. Tell us about the places you spend your recreational time/ free time. Are there places of recreation (parks, gyms, cafes) accessible in your neighborhood? a. Do you feel welcomed in those spaces? b. Are the places in good condition, clean, and safe? Affordable? Housing & Transport (7 mins) 1. Tell me about housing in your community. a. Affordable, nice? 2. Do most people rent or own? Why? 3. How do you get around most of the time? a. Do you have/need a car? b. Public transport? 4. Are there any barriers to receiving housing services? a. What barriers and for whom? 5. Are there any barriers to accessing and using public transit? a. What barriers and for whom? Education (7 mins) 1. What do families with young children do for childcare and education? a. Are they available at the right hours / locations? b. Are they affordable? 2. How would you describe the schools in your area? a. Are they hard? b. Are teachers respectful? 3. What do youth do when they’re not in school? 4. Are there any good training opportunities for teens who are looking to go into the workforce? 5. What do post-high school options look like for youth who grow up in Bozeman? a. Who goes to college? Economics (7 min) 1. What types of jobs are available in your community? a. Do they pay well? 2. What is job searching like? a. Are there any programs that help adults prepare for new/different careers? 3. Have you experienced any barriers to getting a job or finding housing? a. If so, what? Reentry or immigrant paperwork issues? 170 92GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Health (7 mins) 1.Do you have a regular health care provider? a. How do you decide when you need to seek heath care/see a doctor? b. Are there offices nearby? c. Do you use immediate care or ER for regular health care? 2.Do people in your family regularly get checkups from doctors, dentists, or eye doctors? a. If not, why? b. Is preventative care affordable / covered for you? 3.What does mental health care look like in Bozeman? a. Are there providers available? b. Is there a stigma/do people use it? c. Is it covered under insurance? 4.Are there resources in the community for people living with substance abuse or addiction? a. What are the resources? Are they in community centers, outpatient, corrections etc.? b. What about for senior citizens? What services are available to meet their needs? Needs/Services (10 mins) 1.Where do you get info about community resources that might be helpful for you or your family? 2.Are there any gaps in services, or needs that are not addressed by organizations in your area? Dreaming and Closing (5 mins) 1.If you had a million dollars to help your community, what one service would you provide? Thank you and re-state how the info will be used. Community Survey Intro to Project The City of Bozeman is identifying ways to measure equity and access to resources in our community. The purpose of this project is to establish a baseline from which to measure our ongoing work in equity and inclusion. Ultimately, it’s about ensuring that every resident, visitor, and City of Bozeman employee feels welcomed, valued, and can thrive no matter their race, identity, or life circumstance. The outcome of the project will be a set of equity indicators that are meaningful to people and organizations outside just the City of Bozeman. Our team is committed to a process that acknowledges and builds upon the work already underway in our community. To that end, we invite you to provide your input as we develop these indicators and identify gaps in our community. 171 93GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT This survey is voluntary and anonymous, and you can stop at any time. The information provided Not be reported at an individual level, but responses will be disaggregated by demographics. The survey should take no more than 10 minutes to complete. By clicking “Start” you are agreeing to complete this survey. If you have any questions about this survey, please contact Joey Pope at jpope@ tpma-inc.com. Thank you for your participation and feedback. (in Spanish for the English survey and English in the Spanish survey) If you would prefer to take the survey in Spanish/ English please click this link. 1. Please rate how much individuals/families in your community need additional support in the following areas to thrive? Unsure, no need, small need, moderate need, large need prefers not to answer Affordable housing availability Improved housing quality Homelessness support or programs Increased availability of living-wage jobs Access to Broadband Transportation to and from work Transportation for reasons other than work Increased access to Food School safety Criminal Justice Reform Violent crime Prevention Non-violent crime (graffiti/theft) Prevention Clean and well-lit streets and sidewalks Assistance with public health hazards (lead, air quality) Access to public parks/playgrounds Access to mental health care Substance abuse services Early childhood care and education Access to quality K-12 education Out-of-school time programs for children and youth Truancy or Dropout Prevention 172 94GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT Adult education / GED / Language Programs College enrollment / persistence/ success Legal Help Job Training What services or opportunities for yourself or your family do you wish were available in your community? Equity 1.How would you define equity? 2.The City of Bozeman is an equitable place to live and work? a. Strongly Agree, Somewhat agree, neither agree nor disagree, somewhat disagree, Strongly disagree 3.How confident are you in the City of Bozeman’s ability to make Bozeman a place where all people can thrive no matter their race, identity, or life circumstance? a. Very confident, somewhat confident, neither confident nor unconfident, somewhat unconfident, very unconfident 4.What strategies or suggestions, if any, would you give to make Bozeman more equitable? Demographics The following questions allow us to understand how your identity and life-circumstances relate to your needs, ability to access resources, and perceptions around equity in our community. Your responses are not associated with any identifying information other than what you provide here. Please respond as completely as possible. 1.Are you a resident of the City of Bozeman? a. Yes b. No 2.(if Logic was yes) Please select the quadrant where you live. This information will not be used to identify you individually but will help us understand similarities and differences experienced based on where people live. a. NW b. NE c. SW d. SE 3.(if logic is yes) Would you be interested in participating in a community forum in your quadrant? Your email will only be used to invite you to a community forum in your area it will not be used to identity your survey responses in anyway or shared beyond the invite. a. If yes add space for email 173 95GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT 4.(If logic was yes ) How long have you lived in Bozeman? a. Less than a year b. One to five years c. Six to ten years d. More than ten years e. Not a resident f. Prefer not to answer 5.What is your age? a. 0-18 b. 19-25 c. 26-40 d. 41-54 e. 55+ f. Prefer not to answer 6.What is your current employment status (Check all that apply)? a. Currently unemployed b. I work part-time (less than 40 hours/week) c. I work full-time (40 hours/week) d. I work more than full-time (more than 40 hours/week) e. I work multiple jobs f. I am a high school student g. I am a student at a university or trade school h. I am retired i. Prefer not to answer Logic if they selected one of the work options 7.Do you work in the City of Bozeman? a. Yes b. No 8.With which racial or ethnic group(s) do you identify? (Check all that apply) a. American Indian or Alaska Native b. Asian c. Black or African American d. Hispanic or Latinx e. Middle Eastern or North African f. Native Hawaiian or another Pacific Islander 174 96GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT g. White h. Prefer not to answer i. Not listed above 9.Do you have a disability? a. Yes b. No c. Prefer not to answer 10.With which gender(s) do you most identify? (Check all that apply) Transgender (often abbreviated to “trans”) is an umbrella term that refers to people whose gender identity, expression or behavior is different from those typically associated with their assigned sex at birth. Other identities considered to fall under this umbrella can include non-binary, two-spirit, gender fluid, genderqueer, and more. Cisgender (often abbreviated to “cis”) is a term that refers to people whose gender identity, expression or behavior is the same as those typically associated with their assigned sex at birth. a. Female (cis-female) b. Female (trans-female) c. Male (cis-male) d. Male (trans-male) e. Non-binary f. Prefer not to answer g. Not listed above 11.With which orientation do you most identify? (Mark one answer) a. Heterosexual or straight b. Gay c. Lesbian d. Bisexual e. Not listed above f. Prefer not to answer Thank you for taking the survey page 175 97GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT APPENDIX B | REFERENCES i American Community Survey (2019: ACS 5-Year Estimates Data Profiles) ACS DEMOGRAPHIC AND HOUSING ESTIMATES, Table DP0. Accessed at: https://data.census.gov/cedsci/table?g=1600000US3008950&tid=ACSDP5Y2019. DP05&hidePreview=true ii Montana Demographics (2020) Montana Cities by Population. Accessed at: https://www.montana- demographics.com/cities_by_population iii American Community Survey (2019: ACS 5-Year Estimates Data Profiles) ACS DEMOGRAPHIC AND HOUSING ESTIMATES, Table DP0. Accessed at: https://data.census.gov/cedsci/table?g=1600000US3008950&tid=ACSDP5Y2019. DP05&hidePreview=true iv Ibid. v American Community Survey (2019: ACS 1-Year Estimates Data Profiles) ACS DEMOGRAPHIC AND HOUSING ESTIMATES, Table DP05. Accessed at: https://data.census.gov/cedsci/table?g=0100000US&tid=ACSDP1Y2019.DP05&hidePreview=true vi American Community Survey (2019: ACS 5-Year Estimates Data Profiles) ACS DEMOGRAPHIC AND HOUSING ESTIMATES, Table DP0. Accessed at: https://data.census.gov/cedsci/table?g=1600000US3008950&tid=ACSDP5Y2019. DP05&hidePreview=true vii Ibid. viii American Community Survey (2019: ACS 1-Year Estimates Data Profiles) ACS DEMOGRAPHIC AND HOUSING ESTIMATES, Table DP05. Accessed at: https://data.census.gov/cedsci/table?g=0100000US&tid=ACSDP1Y2019.DP05&hidePreview=true ix American Community Survey (2019: ACS 5-Year Estimates Data Profiles) SELECTED SOCIAL CHARACTERISTICS IN THE UNITED STATES, Table DP02. Accessed at: https://data.census.gov/cedsci/table?g=1600000US3008950&tid=ACSDP5Y2019. DP02&hidePreview=true x American Community Survey (2019: ACS 1-Year Estimates Subject Tables) DISABILITY CHARACTERISTICS, Table S1810. Accessed at: https://data.census.gov/cedsci/table?q=DISABILITY&g=0100000US&tid=ACSST1Y2019. S1810&hidePreview=true xi American Community Survey (2019: ACS 5-Year Estimates Subject Tables) WORK STATUS IN THE PAST 12 MONTHS, TableS2303. Accessed at: https://data.census.gov/cedsci/table?q=employment&g=1600000US3008950&tid=ACSST5Y2019. S2303 xii American Community Survey (2019: ACS 1-Year Estimates Subject Tables) WORK STATUS IN THE PAST 12 MONTHS, TableS2303. Accessed at: https://data.census.gov/cedsci/table?q=EMPLOYMENT&g=0100000US&tid=ACSST1Y2019.S2303 176 98GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT xiii American Community Survey (2019: ACS 1-Year Estimates Data Profiles) SELECTED ECONOMIC CHARACTERISTICS, Table DP03. Accessed at: https://data.census.gov/cedsci/table?g=0100000US&tid=ACSDP1Y2019.DP03&hidePreview=true xiv Bozeman, Montana Community Housing Needs Assessment (2019) Page 73. Accessed at: https://www.bozeman.net/home/showpublisheddocument/8773/636873023437470000 xv U.S. Department of Housing and Urban Development (2020) Assisted Housing: National and Local. Accessed at: https://www.huduser.gov/portal/datasets/assthsg.html xvi American Community Survey (2019: ACS 5-Year Estimates Detailed Tables) POVERTY STATUS IN THE PAST 12 MONTHS BY HOUSEHOLD TYPE BY AGE OF HOUSEHOLDER, Table B17017. Accessed at: https://data.census.gov/cedsci/table?q=Bozeman%20city,%20Montana%20 B17017&tid=ACSDT5Y2019.B17017&moe=false&hidePreview=true xvii Bozeman Community Housing (2020) Affordable Home Buyers. Accessed at: https://community- housing-hub-bozeman.hub.arcgis.com/ xviii Bozeman Community Housing (2020) Community Measures. Accessed at: https://community- housing-hub-bozeman.hub.arcgis.com/ xix Bozeman, Montana Community Housing Needs Assessment (2019) Page 3. Accessed at: https://www.bozeman.net/home/showpublisheddocument/8773/636873023437470000 xx American Community Survey (2019: ACS 1-Year Estimates Data Profiles) SELECTED HOUSING CHARACTERISTICS, Table DP04. Accessed at: https://data.census.gov/cedsci/table?q=housing%20cost&tid=ACSDP1Y2019.DP04 xxi Ibid. xxii National Equity Atlas (1990-2017) Housing burden: All residents should have access to quality, affordable homes. Accessed at: https://nationalequityatlas.org/indicators/Housing_burden xxiii Human Resource Development Council (HRDC) Bozeman Community Profile. Accessed at: https:// thehrdc.org/who-we-serve/bozeman-location/ xxiv All-In Cities (2021) All-In Cities Policy Toolkit – Community Benefits Agreements. Accessed at: https://allincities.org/toolkit/community-benefits-agreements xxv Inclusionary Housing Incentives (2021). Accessed at: https://inclusionaryhousing.org/designing-a- policy/land-dedication-incentives/ xxvi The Western Planner (2014) Strategies to preserve mobile parks and to mitigate displacement when they are closed. Accessed at https://www.westernplanner.org/arc/2016/10/30/strategies-to- preserve-mobile-parks-and-to-mitigate-displacement-when-they-are-closed xxvii Inclusive City Maker (2020) Accessibility Toolkit: When Complete Streets Help People with Disabilities. Accessed at: https://www.inclusivecitymaker.com/complete-streets-help-disabled/ xxviii TriMet (2021) Transit Equity and Environmental Justice Building Consensus, Creating Connections. Accessed at: https://trimet.org/about/transitequity.htm xxix Streamline – A Program of HRDC (2015) RouteShout Mobile App Information for Passengers. Accessed at: https://streamlinebus.com/rider-info/info-for-passengers/ xxx All-In Cities (2021) All-In Cities Policy Toolkit Equitable Transit-Oriented Development. Accessed at: https://allincities.org/toolkit/equitable-transit-oriented-development 177 99GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT xxxi Community Health Needs Assessment Report: Gallatin, Madison & Park Counties, Montana (2017). Accessed at: https://res.cloudinary.com/dpmykpsih/image/upload/bozeman-health-site-321/ media/1432/2017_prc_chna_report_bhdh.pdf xxxii COMMUNITY HEALTH NEEDS ASSESSMENT: Gallatin, Madison & Park Counties, Montana (2020) Accessed at: https://www.healthygallatin.org/wp-content/uploads/2020/12/Final-2020-CHNA-Report. pdf xxxiii Community Health Needs Assessment: Gallatin, Madison & Park Counties, Montana (2020) Access to Health Care p 218. Accessed at: https://www.healthygallatin.org/wp-content/uploads/2020/12/Final- 2020-CHNA-Report.pdf xxxiv Ibid. xxxv Community Health Needs Assessment: Gallatin, Madison & Park Counties, Montana (2020) Difficulty Accessing Mental Health Services p 70-71. Accessed at: https://www.healthygallatin.org/wp- content/uploads/2020/12/Final-2020-CHNA-Report.pdf xxxvi Ibid. xxxvii Montana Department of Public Health and Human Services (2021) Suicide in Montana Facts, Figures, and Formulas for Prevention. Accessed at: https://dphhs.mt.gov/assets/suicideprevention/ SuicideinMontana.pdf xxxviii Ibid. xxxix Health Catalyst (2017) Advancing Health Equity – Data Driven Strategies Reduce Health Inequities. Accessed at: https://www.healthcatalyst.com/wp-content/uploads/2017/12/Advancing- Health-Equity%E2%80%93Data-Driven-Strategies-Reduce-Health-Inequities.pdf xl Health, United States (2015) With Special Feature on Racial and Ethnic Health Disparities. Accessed at: https://www.cdc.gov/nchs/data/hus/hus15.pdf xli Rachel R. Hardeman, Eduardo M. Medina, and Katy B. Kozhimannil (2016) Structural Racism and Supporting Black Lives — The Role of Health Professionals. The New England Journal of Medicine. Accessed at: https://www.nejm.org/doi/full/10.1056/NEJMp1609535#t=article xlii The Commonwealth Fund (2018) In Focus: Reducing Racial Disparities in Health Care by Confronting Racism. Accessed at: https://www.commonwealthfund.org/publications/2018/sep/focus- reducing-racial-disparities-health-care-confronting-racism xliii American Community Survey (2015-2019 5-Year Estimates) table S1501. Accessed at: https:// data.census.gov/cedsci/table?q=Bozeman%20city,%20Montana%20&t=Educational%20 Attainment&tid=ACSST5Y2019.S1501&moe=false&hidePreview=true xliv Ibid. xlv Montana Office of Public Instruction Gems public Dashboard. Growth and Enhancement of Montana Students, Bozeman High School. Accessed at: https://gems.opi.mt.gov/student-data xlvi Ibid. xlvii Ibid. xlviii Ibid. xlix Ibid. 178 100GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT l All-In Cities: an Initiative of PolicyLink (2021) Cradle-to-career systems. Accessed at: https://allincities. org/toolkit/cradle-to-career-systems li Racial Equity Series (2020) Equity and Expectations: Leading Rural Communities through Unprecedented Pressures. Accessed at: https://maec.org/wp-content/uploads/2020/09/MAEC-Rural- Equity-and-Expectations.pdf lii The Ohio Manufacturers’ Association INDUSTRY SECTOR PARTNERSHIPS: WHAT THEY ARE AND WHY THEY WORK. Accessed at: https://www.ohiomfg.com/wp-content/uploads/Industry_Sector_ Partnerships_What_They_Are_and_Why_They_Work.pdf liii American Community Survey (2019: ACS 5-Year Estimates Data Profiles) ACS DEMOGRAPHIC AND HOUSING ESTIMATES, Table DP0. Accessed at: https://data.census.gov/cedsci/table?g=1600000US3008950&tid=ACSDP5Y2019. DP05&hidePreview=true liv OFFICE OF THE ASSISTANT SECRETARY FOR PLANNING AND EVALUATION (2021) Poverty Guidelines. Accessed at: https://aspe.hhs.gov/poverty-guidelines lv HDRC Early Childhood Education. Accessed at: https://thehrdc.org/early-childhood-education/ lvi OFFICE OF THE ASSISTANT SECRETARY FOR PLANNING AND EVALUATION (2021) Poverty Guidelines. Accessed at: https://aspe.hhs.gov/poverty-guidelines lvii Living Wage Calculator Living Wage Calculation for Gallatin County, Montana. Accessed at: https:// livingwage.mit.edu/counties/30031 lviii OFFICE OF THE ASSISTANT SECRETARY FOR PLANNING AND EVALUATION (2021) Poverty Guidelines. Accessed at: https://aspe.hhs.gov/poverty-guidelines lix American Community Survey (2015-2019 5-Year Estimates) Table B23008. Accessed at: https://data. census.gov/cedsci/table?g=1600000US3008950&tid=ACSDP5Y2019.DP03&hidePreview=true lx Bohan-Baker, M., & Little, P. M. D. (2002) The Transition to Kindergarten: A Review of Current Research and Promising Practices to Involve Families. Harvard Family Research Project. P. 2. Accessed at: http://www.hfrp.org/publications-resources/browse-our-publications/the-transition-to-kindergarten-a- review-of-current-research-and-promising-practices-to-involve-families lxi American Community Survey (2015-2019 5-Year Estimates) table B14003. Accessed at: https:// data.census.gov/cedsci/table?q=Bozeman%20city,%20Montana%3A%20B14003&tid=ACSDT5Y2019. B14003&hidePreview=true lxii Bohan-Baker, M., & Little, P. M. D. (2002) The Transition to Kindergarten: A Review of Current Research and Promising Practices to Involve Families. Harvard Family Research Project. P. 2. Accessed at: https://archive.globalfrp.org/publications-resources/browse-our-publications/the-transition-to- kindergarten-a-review-of-current-research-and-promising-practices-to-involve-families lxiii Montana Department of Public Health and Human Services Current STARS Programs. Accessed at: https://dphhs.mt.gov/ecfsd/ChildCare/stars/index lxiv National Center for Children in Poverty Making Work Pay in Montana. Accessed at: https://www. nccp.org/publication/making-work-pay-in-montana/ 179 101GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT lxv Start with Equity: 14 Priorities to Dismantle Systemic Racism In Early Care And Education (2020) MOVE TOWARD HOLISTIC, STRENGTHS-BASED, AND AUTHENTIC INTEGRATION. Accessed at: https://childandfamilysuccess.asu.edu/sites/default/files/2020-12/14-priorities-equity-121420.pdf lxvi American Community Survey (2019: ACS 1-Year Estimates Subject Tables) MEDIAN INCOME IN THE PAST 12 MONTHS (IN 2019 INFLATION-ADJUSTED DOLLARS) Table S1903. Accessed at: https://data. census.gov/cedsci/table?q=S1903&tid=ACSST1Y2019.S1903 lxvii American Community Survey (2012) Statistics for All U.S. Firms by Industry, Gender, and Receipts Size of Firm for the U.S. and States table SBOCS201. Accessed at: https://data.census.gov/ cedsci/table?q=Bozeman%20firms%20by%20industry&g=1600000US3008950&tid=SBOCS2012. SB1200CSA05&hidePreview=true lxviii The Crown Act Creating a Respectful and Open World for Natural Hair. Accessed at: https://www. thecrownact.com/about lxix Center for American Progress (2021) Small Businesses Get a Boost From a $15 Minimum Wage. Accessed at: https://www.americanprogress.org/issues/economy/reports/2021/02/25/496355/small- businesses-get-boost-15-minimum-wage/ lxx Living Wage Calculator Living Wage Calculation for Gallatin County, Montana. Accessed at: https:// livingwage.mit.edu/counties/30031 lxxi Aspen Institute (2021) To Build Back Better, Job Quality Is the Key. Accessed at: https://www. aspeninstitute.org/publications/to-build-back-better-job-quality-is-the-key/ lxxii Pew Trust Economic Mobility Project (2008) PATHWAYS TO ECONOMIC MOBILITY: KEY INDICATORS p. 2. Accessed at: https://www.pewtrusts.org/~/media/legacy/uploadedfiles/ wwwpewtrustsorg/reports/economic_mobility/pewempchartbook12pdf.pdf lxxiii HM Government, Communities and Local Government. (2009). World class places. The government’s strategy for improving quality of place. London: Communities and Local Government. http://www.communities.gov.uk/documents/planningandbuilding/pdf/1229344.pdf. lxxiv American Community Survey (2015-2019 5-Year Estimates) Table S2801. Accessed at: https:// data.census.gov/cedsci/table?q=Bozeman%20city,%20Montana%20computer&tid=ACSST5Y2019. S2801&hidePreview=true lxxv The National Digital Inclusion Alliance Definitions Accessed at: https://www.digitalinclusion.org/ definitions/ lxxvi Urban Institute (2018) Creative Placemaking and Community Safety: Synthesizing Cross-Cutting Themes. Accessed at: https://www.urban.org/research/publication/creative-placemaking-and- community-safety-synthesizing-cross-cutting-themes/view/full_report lxxvii The Brookings Institution Bridging the digital divide through digital equity offices Accessed at: https://www.brookings.edu/research/bridging-the-digital-divide-through-digital-equity-offices/ lxxviii National Conference on Citizenship Civic Health Initiative. Accessed at: https://ncoc.org/civic- health-initiative/ lxxix Emsi Regional Comparison Table for US, Montana, and Bozeman, MT. Accessed at: https://a. economicmodeling.com/analyst/?t=3NMzJ#h=W6W3R&page=regional_side_by_side_table 180 102GAPS ANALYSIS FOR EQUITY INDICATORS PROJECT lxxx Ibid. lxxxi Inclusive City Quarterly Report (2021) City of Bozeman Inclusive City Project Team. Accessed at: https://www.bozeman.net/home/showpublisheddocument/11280/637562465141670000 lxxxii The Center for Racial Justice Innovation (2009) Racial Equity Impact Assessment. Accessed at: https://www.raceforward.org/sites/default/files/RacialJusticeImpactAssessment_v5.pdf 181 182 Page 1 of 11 ORDINANCE NO. 2056 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA ESTABLISHING A PERCENT FOR ART PROGRAM AND AMENDING CHAPTER 2, ARTICLE 6 OF THE BOZEMAN MUNICIPAL CODE TO ADD DIVISION 11, PUBLIC ART. WHEREAS, the City of Bozeman (the “City”) is authorized by the City Charter and Montana law to establish administrative programs designed to enhance and protect the public welfare; and WHEREAS, the City finds it promotes and protects the public welfare to enhance the beauty of public areas of the City; and WHEREAS, the City finds that such enhancement adds to the quality of life of the City’s citizens, attracts tourism, and encourages businesses and other organizations to locate in the City, adding to the City’s economic vitality. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: Section 1 That the Bozeman Municipal Code be amended by adding a new division 11, Public Art, to Chapter 2, Administration, Article 6, Finance, as follows: 169 DocuSign Envelope ID: F417F015-F107-43B8-8320-38D7BDC49338 183 Ordinance 2056, Percent for Art Program Page 2 of 11 DIVISION 11. – PUBLIC ART 2.06.1960. – Title and purpose. This division shall be known as the “City of Bozeman Percent for Art Ordinance.” The purpose of this division is to establish a Percent for Art Program for city-funded capital improvement projects and to provide for the funding, selection, and maintenance of public art and establish responsibilities relating to administering the Percent for Art Program. The purpose of the Percent for Art Program is to include works of art within certain city capital improvement projects equal to one percent (1%) of construction costs of the project. 2.06.1970. – Percent for Art Program established. There is hereby established a Percent for Art Program. The city manager or their designee shall be responsible to administer the Percent for Art Program as described in this division and in 2.05.1420. The City shall endeavor to develop a collection of public art of high quality, encompassing a broad aesthetic range reflecting the city, in order to improve the quality of life in the area, be accessible to all individuals, and be a source of pride to residents. A. The Percent for Art Program shall apply to both new and remodeled city-owned public spaces and structures. B. The following categories of projects are exempt from the Percent for Art Program requirements: 1. Water, stormwater, or wastewater facilities, except for office buildings. 2. Street construction and repair; public right of way improvements, such as curb, sidewalk, trails, pedestrian pathways, and traffic control facilities; and landscaping. C. The Percent for Art Program requires one percent (1%) of eligible construction costs of city capital improvement projects over $500,000 to construct or remodel any public or city building, structure, park or any portion thereof, to be allocated for public art. No less than eighty percent (80%) of the one percent appropriation will be used for on-site artwork; up to twenty percent (20%) of this one percent shall be held in a public art operations fund to be used for program administration and maintenance of the art, as determined necessary by the city manager to carry out the provisions of this division. 170 DocuSign Envelope ID: F417F015-F107-43B8-8320-38D7BDC49338 184 Ordinance 2056, Percent for Art Program Page 3 of 11 D. The art may serve a function, express a theme, or commemorate an important person. It may underscore or provide a counterpoint to the architecture and surrounding site. It may serve as a landmark that adds definition to the city. E. The city manager is authorized to adopt such additional processes and policies by Administrative Order not inconsistent with this division 11 as they may deem necessary to implement the Percent for Art Program in accordance with the objectives of this division. 2.06.1980. – Objectives. The Percent for Art Program objectives include: A. Develop a public art program that is unique to Bozeman. B. Increase the understanding and enjoyment of public art by Bozeman residents. C. Invite public participation in the interaction with public spaces. D. Provide challenging employment opportunities for artists. E. Encourage collaborations between artists and architects and engineers. F. Support artist participation on design teams for planning public projects. G. Encourage a variety of art forms: temporary and permanent, object and event, single or dispersed locations. H. Spread commissions among a wide number of artists and strive for overall diversity in style, scale and intent. 2.06.1990. - Definitions. A. “Architect” is the person or firm designing the project to which the one percent (1%) funding applies. Where the architect is a firm, the term architect shall mean the principal of that firm in charge of designing the project for which the one percent (1%) funding applies. B. “Artist” is a practitioner in the visual arts, generally recognized by critics and peers as a professional of serious intent and recognized ability who produces artworks and is not a member of the project architectural/design firm. C. “Artwork” includes but is not limited to, paintings, murals, inscriptions, stained glass, fiber work, statues, reliefs or other sculpture, monuments, arches, or other structures 171 DocuSign Envelope ID: F417F015-F107-43B8-8320-38D7BDC49338 185 Ordinance 2056, Percent for Art Program Page 4 of 11 intended for ornament or commemoration. Also included are carvings, frescoes, mosaics, mobiles, photographs, drawings, collages, prints, crafts, both decorative and utilitarian in clay, fiber, wood, metal, glass, plastics and other materials. Landscape items include the artistic placement of natural materials or other functional art objects. Artwork may be portable as well as permanently sited. D. “Capital Improvement Plan” (CIP) means the annual capital improvement plan adopted for city-financed public improvement projects. E. “Capital Improvement Project” means any public works project undertaken by the city to construct or remodel any public or city building, structure, park or any portion thereof. F. “Construction Cost” is the contracted sum for construction of the designated project including any change orders included in the initial contract notice of award. Construction costs do not include costs such as professional fees, cost of land, rights of way and financing. G. “Contractor” is any firm, individual, joint venture or team of firms or individuals with which the city contracts for design, engineering, or construction services. H. “Deaccessioning” is a procedure for the withdrawal of an artwork from the public collection. I. “Eligible Construction Cost” is that portion of the construction cost of any capital improvement project paid for solely by the city to construct or remodel any building, decorative or commemorative structure, parking facility, park, recreational facility, or any portion thereof, located on city property, provided that the source of funds for such project(s) is not restricted by law or regulation as to its use for artworks. J. “Maintenance” is the periodic work on a facility or asset required to maintain its original functionality. K. “Remodel” is work required to substantially change or enhance the functionality of a facility. 2.06.2000. – Procedure to select public art for eligible projects. A. Upon adoption of the capital improvement plan the finance director will identify all projects for which the Percent for Art Ordinance applies. 172 DocuSign Envelope ID: F417F015-F107-43B8-8320-38D7BDC49338 186 Ordinance 2056, Percent for Art Program Page 5 of 11 B. All Percent for Art Program projects, whether they are permanent or temporary artworks, will be developed to respond to a specific site or building location, with the exception of artworks that are conceptually intended to circulate among various sites or facilities within the project area. C. The selection of artist(s) who will provide art integral to the project will be made as early in the conceptual design stage as practical, so artist(s) will be able to work with the contractor from the beginning of the project. D. The city manager or their designee is responsible for identifying, investigating, and selecting the artist(s) or artwork(s). For each project, the city manager or their designee will develop a formal structure in which to select, develop and maintain public art as well as further public accessibility to the arts in accordance with the objectives of the Percent for Art Program. The city manager may choose to work in cooperation with an independent contractor or nonprofit arts organization in the selection process. E. The city manager or their designee shall work with city staff and/or the independent contractor or nonprofit arts organization to analyze and discuss appropriate locations, suitable art forms, artists’ prerequisites, and specifics of artist/artwork selection process. F. A call for artists, request for proposals, or other form of advertisement as provided by the city’s procurement policy will be prepared by city staff and/or the independent contractor or nonprofit arts organization and advertised by the city clerk. The proposals will be evaluated by the city manager or their designee. The city manager may form a selection committee for this purpose. If the city manager has enlisted an independent contractor or nonprofit arts organization to assist in the selection process, that contractor or organization will evaluate the proposals and make a recommendation regarding the final selection to the city manager. The city manager will make the final selection determination. G. In the response to the city’s request for proposals, artists must include information relating to the proposed artwork’s lifecycle. H. The city manager is responsible for providing staff and other resources to meet the city’s obligations under this division. In the event of a disagreement as to whether an expense is eligible pursuant to 2.06.2020, the city manager shall make the final determination. 173 DocuSign Envelope ID: F417F015-F107-43B8-8320-38D7BDC49338 187 Ordinance 2056, Percent for Art Program Page 6 of 11 I. Contractors invited to submit a proposal for an applicable construction or renovation project shall be advised of the requirements of this division. The contractor shall work closely with the city manager or their designee on the designation of appropriate sites and shall incorporate the artist’s or artwork’s special requirements within the construction documents, including the time of delivery and installation of the artwork. The selected artwork must be placed so that it is the public view. J. Artists will be selected in accordance with the city’s procurement policy, on the basis of their qualifications as demonstrated by past work, appropriateness of the proposal to the particular project, and its probability of successful completion as determined by the selection committee. K. The city has the option of making no selection. If no proposal is accepted, the city has the right to reopen the competition or to propose other methods of selection. L. Upon the selection of an artwork, the artist shall enter into a contract with the city for the artist’s services or for the purchase and installation of the artwork. This contract shall require the artist to produce or deliver the artwork for a price guaranteed to be no greater than the maximum contracted cost, and shall require the transfer of all rights in and to the artwork to the city, including all intellectual property rights. The contract must be reviewed by the city attorney. M. Where the city manager determines that an expenditure for a specific artwork is inappropriate, the city manager may approve the transfer of those funds to another Percent for Art project. 2.06.2010. – Criteria for selection of artwork(s). A. In making the final selection, the city shall be guided by the goals and purposes of this ordinance and the criteria set forth in this document and any regulations promulgated to fulfill the criteria. B. Each proposed artwork will also be evaluated as to its artistic excellence, appropriateness in terms of scale, material and content relative to the immediate and general architectural, social and historic context; technical feasibility; and long term durability against vandalism, weather, and theft. Consideration must be given to materials, construction, durability, maintenance costs, public access and safety. 174 DocuSign Envelope ID: F417F015-F107-43B8-8320-38D7BDC49338 188 Ordinance 2056, Percent for Art Program Page 7 of 11 2.06.2020. – Conflict of interest. A. No artist sitting on a nonprofit arts organization’s board of directors may submit for Percent for Art projects over which that organization has approval authority or administrative responsibility during his/her tenure. B. No staff member of a nonprofit arts organization or member of a staff member’s household may submit for Percent for Art projects over which that organization has approval authority or administrative responsibility. C. No artist sitting on a selection committee may submit for the project for which the committee was formed. D. The selection process must comply with the Code of Ethics, article 3, division 4 of this chapter. 2.06.2030. - Eligible expenses for the Percent for Art Program. A. Appropriations for Percent for Art Program projects may be spent for: 1. The artwork itself, including but not limited to: a. Artist’s design fees. b. Additional labor and materials required for production and installation of the artwork. c. Artist’s operating costs. d. Travel related to the project. e. Transportation of the artwork to the site and installation. f. Any required permitting fees. 2. Identification plaques and labels. 3. Frames, mats, mountings, anchorages, containments, pedestals, or materials necessary for the installation, location or security of the artwork. 4. Photographs of completed artworks. 5. Communication and other indirect costs including insurance. 6. Expenses for special advisors or consultants. 7. Historical artifacts displaced by construction. 175 DocuSign Envelope ID: F417F015-F107-43B8-8320-38D7BDC49338 189 Ordinance 2056, Percent for Art Program Page 8 of 11 8. Expenses related to the administration of carrying out the directives of this division, including but not limited to: a. Technology services and subscriptions (e.g., a web-service for promoting an art- call). b. Advertising, publicity, promotion, and invitation expenses. c. Expenses related to public events related to artwork (e.g., rental of public address equipment and catering expenses). d. Due diligence expenses required for the responsible consideration of artwork (e.g., engineering or environmental consultation). e. Expenses related to augmenting artwork (e.g., addition of lighting, landscaping or general enhancements to artwork), if such components are not included in the artwork itself. B. Appropriations for Percent for Art Program projects may not be spent for: 1. Reproduction, by mechanical or other means, of original artworks, except in cases of film, video, photography, printmaking or other media arts. 2. Those elements generally considered to be components of a landscape architectural design or landscape gardening. 3. “Art objects” which are mass produced of standard design, such as playground sculptures. 4. Directional or other functional elements, such as supergraphics, signs, color coding, maps, etc. except where a recognized artist is employed. C. The city manager shall make the final determination of the eligibility of a particular expense. 2.06.2040. – Public Art Management/Maintenance. A. All artworks remain under the ownership of the city. Artworks will be insured for property damage in accordance with the city’s policies for insuring city property. B. The city will be responsible for the ongoing care and maintenance of all artworks purchased or commissioned pursuant to this division. C. The city manager or their designee shall inform the city attorney if an artwork is damaged or stolen. 176 DocuSign Envelope ID: F417F015-F107-43B8-8320-38D7BDC49338 190 Ordinance 2056, Percent for Art Program Page 9 of 11 D. Monies to maintain artworks shall come from the public art operations fund. 2.06.2050. – Deaccessioning. Deaccessioning will be considered only after a careful and impartial evaluation of the artwork within the context of the collection as a whole. At the beginning of the process, the city manager or their designee will make a reasonable effort to notify any living artist whose work is being considered for deaccessioning. The city manager may consider the deaccession of artwork for one or more of the following reasons in the event that it cannot be re-sited: A. The artwork has been damaged or has deteriorated and repair is impractical or unfeasible. B. The artwork endangers public safety. C. In the case of site-specific artwork, the artwork is destroyed by severely altering its relationship to the site. D. The artwork requires excessive maintenance or has faults of design or workmanship. Section 2 Repealer. All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force and effect. Section 3 Savings Provision. This ordinance does not affect the rights and duties that matured, penalties that were incurred or proceedings that were begun before the effective date of this ordinance. All other provisions of the Bozeman Municipal Code not amended by this ordinance shall remain in full force and effect. 177 DocuSign Envelope ID: F417F015-F107-43B8-8320-38D7BDC49338 191 Ordinance 2056, Percent for Art Program Page 10 of 11 Section 4 Severability. That should any sentence, paragraph, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this ordinance as a whole, or any part or provision thereof, other than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman Municipal Code as a whole. Section 5 Codification. This ordinance shall be codified as indicated in Section 1. Section 6 Effective Date. This ordinance shall be in full force and effect 30 days after final passage and approval. PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on the 27th day of October, 2020. ____________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: _______________________________ MIKE MAAS City Clerk 178 DocuSign Envelope ID: F417F015-F107-43B8-8320-38D7BDC49338 192 Ordinance 2056, Percent for Art Program Page 11 of 11 FINALLY PASSED, ADOPTED AND APPROVED by the City Commission of the City of Bozeman, Montana on second reading at a regular session thereof held on the 10th day of November, 2020. The effective date of this ordinance is December 10, 2020. ________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: _______________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ________________________________ GREG SULLIVAN City Attorney 179 DocuSign Envelope ID: F417F015-F107-43B8-8320-38D7BDC49338 193 194 City of Bozeman | Economic Development Strategy Update November 2016 Page i Acknowledgements Bozeman City Commission Mayor Carson Taylor Deputy Mayor Cynthia Andrus Commissioner Chris Mehl Commissioner I-Ho Pomery Commissioner Jeff Krauss Economic Development Council Mayor Carson Taylor, Commission Liaison Erik Garberg Steve Holland Chris Kukulski Kris Kumlien Rebecca Marhurin Cheryl Ridgely Daryl Schliem Economic Development Council Subcommittee of Local Business Leaders Terry Alborn Jim Ness Alistair Stewart Penny Zacharisian Economic Development Department Brit Fontenot David Fine Prepared By Leland Consulting Group, Inc. 610 SW Alder Street, Suite 1008 Portland, Oregon 97205 503.222.1600 195 City of Bozeman | Economic Development Strategy Update November 2016 Page ii Table of Contents Introduction ..................................................................................................................................................................... 1 What is Economic Development? ........................................................................................................................ 2 Talent ........................................................................................................................................................................... 5 Skilled Workforce ...................................................................................................................................................... 6 What is the Benefit of an Economic Development Vision and Strategy? ................................................. 7 Background .................................................................................................................................................................... 9 Stakeholder Interview Themes .............................................................................................................................. 9 Citywide Survey Themes ........................................................................................................................................ 10 Business Owner Survey Themes .......................................................................................................................... 11 Montana Photonics Industry Alliance Member Survey (2014) ..................................................................... 14 Strengths, Weaknesses, Opportunities, and Challenges (SWOT) ............................................................... 14 Economic Profile .......................................................................................................................................................... 15 Population Growth .................................................................................................................................................. 15 Employment Growth .............................................................................................................................................. 16 Commute Patterns .................................................................................................................................................. 16 Median Age .............................................................................................................................................................. 17 Distribution of Employment.................................................................................................................................. 17 Income Distribution ................................................................................................................................................ 18 Education Attainment............................................................................................................................................. 19 Industry Clusters .......................................................................................................................................................... 20 Photonics .................................................................................................................................................................. 20 Software/IT ............................................................................................................................................................... 23 Outdoor .................................................................................................................................................................... 24 Tourism/Recreation ............................................................................................................................................... 26 Biotechnology ......................................................................................................................................................... 28 The Strategy ................................................................................................................................................................. 30 Current Strategy ..................................................................................................................................................... 30 Strategy Update ...................................................................................................................................................... 30 Goal 1: Expand the Existing Base ......................................................................................................................... 31 Goal 2: Support Business ...................................................................................................................................... 33 Goal 3: Regional Connections ............................................................................................................................. 35 Appendix A: Action List Appendix B: Stakeholder List Appendix C: Commission Resolution 196 City of Bozeman | Economic Development Strategy Update November 2016 Page 1 Introduction The modern global economy consists of rapidly changing market trends. The one economic certainty that pertains to any industry is the increasing need for skilled talent. Unfortunately, complex issues driving income stratification and workforce skills gaps are making it more difficult for all citizens to realize positive personal economic growth in keeping with business growth. In order to plan for this modern economy, communities must consciously foster a diverse economic base and skilled workforce to weather inevitable negative and positive cycles. Coupled with global economic trends, the city of Bozeman is growing rapidly, which introduces new challenges regarding affordable housing, traffic, and public service provision. It is important for the City to consciously manage growth aligned with the desired economic base in order to retain the small town and outdoor qualities that make Bozeman unique, while remaining competitive in the global modern economy. Finally, city government plays a unique and distinct role in economic development. They are the key stakeholder among many engaged organizations that significantly invests in infrastructure and guides land use policy. Fortunately, the City of Bozeman has a strong culture poised to facilitate collaboration among departments including public works, finance and community and economic development to thoughtfully align objectives that foster a healthy economic base. 197 City of Bozeman | Economic Development Strategy Update November 2016 Page 2 What is Economic Development? Economic development can be defined as efforts that seek to improve the economic well-being and quality of life for a community by creating and/or retaining middle and high income jobs and supporting or growing incomes and the tax base through diversification of the local economy. These jobs are generally defined as two different sectors with distinct needs in terms of workforce and business location. In addition, the City must provide different types of support and investments for each sector. These sectors are distinguished for clarification regarding strategy objectives and actions. Traded Sector vs. Local Sector Jobs Traded sector (also referred to as basic sector) businesses include industries and employers which produce goods and services that are consumed outside the region where they are produced and therefore bring in new income to the area (e.g., outdoor gear, photonics, software). Workers in the traded sector tend to be better educated, work more hours, and earn higher average wages than local sector business. As the traded sector increases employment and wages, it also enables entrepreneurs to develop skills and resources to foster innovation and start new businesses and increase employment opportunities. Furthermore, certain traded sector companies foster a supply chain effect that create the need for additional companies to supply components of a product that is manufactured. Tourism is a unique traded sector industry to Bozeman in that it brings new income into the region and it leverages Yellowstone National Park as well as numerous outdoor assets not found elsewhere in the United States. Local sector business consists of industries and firms that are in every region. They produce goods and services that are consumed locally in the region where they were made, and therefore circulate existing income in the area (e.g., drug stores, physician offices, restaurants). These businesses are important as they make a community distinct and provide amenities to attract young professionals and families that drive the new economy. A sampling of traded vs. local sector businesses in the Bozeman region is indicated in Figure 1. 198 City of Bozeman | Economic Development Strategy Update November 2016 Page 3 Figure 1. Representative Traded Sector and Local Sector Bozeman Businesses Traded Sector Local Sector Table 1 highlights the average wage difference between traded sector jobs and local sector jobs in the U.S. Also of note is the difference between Gallatin County and U.S. average wages. The community is well aware of this disparity and that it is currently an advantage for employers. However, business leaders interviewed as part of this economic development strategy process expressed an understanding that this is not a healthy trend. For businesses to continue to attract a highly skilled workforce, there need to be more companies here. When there is a larger job base, it is more attractive to employees because they have options for career growth. In turn, once the employment base grows, competition will occur and ultimately increase wages. Montana is starting to realize gains in this area with real median household income increasing by 6.8 percent between 2014 and 2015 per American Community Survey statistics. 199 City of Bozeman | Economic Development Strategy Update November 2016 Page 4 Table 1. 2015 Annual Average Wages by Industry Sector NAICS Industry Sector United States Average Wage 2015 Gallatin County Average Wage 2015 Mesa County, CO (City of Grand Junction) Average Wage 2015 Traded Sector 55 Management of Companies & Enterprises $116,745 $60,078 $101,797 51 Information $95,038 $56,541 $44,836 54 Professional, Scientific, & Technical Services $ 89,785 $66,648 $53,640 42 Wholesale Trade $ 73,363 $56,074 $55,629 31-33 Manufacturing $64,305 $41,516 $43,293 Local Sector 23 Construction $57,009 $46,908 $49,377 61 Education Services $47,968 $25,908 $21,404 62 Health Care & Social Assistance $47,296 $44,891 $45,897 71 Arts, Entertainment, Recreation $36,128 $25,840 $16,454 44-45 Retail Trade $29,742 $29,319 $27,194 72 Accommodation & Food Services $19,415 $18,307 $16,888 Source: Quarterly Census of Employment and Wages - Bureau of Labor Statistics, May 2016. The lower average wages in Gallatin County are further impacted by the higher cost of living in Bozeman as compared to similar communities as identified in the following table. As an example, Grand Junction, CO with a similar size population as Bozeman has similar average wages as indicated in Table 1. However Grand Junction has a lower Cost of Living Index score as identified in Table 2, which provides more purchasing power with the wages. The composite Cost of Living Index score is based on six categories – housing, utilities, grocery items, transportation, health care, and miscellaneous goods and services. The national average composite index is set at 100 each period; so the index conveys relative price levels at a specific point in time. 200 City of Bozeman | Economic Development Strategy Update November 2016 Page 5 Table 2. Cost of Living Index Results (Q2 2016) Source: Prospera Business Network, September 2016. Talent The national economy is becoming increasingly more talent/knowledge-based than resource-based meaning people over raw materials are the most important asset to a company’s value and prospects for growth. This applies to all industries including manufacturing, professional services, and technology. Articulating this further is the following chart defining the shift in market assessment for the world’s most valuable companies. As illustrated in Figure 2, 10 years ago the most valuable companies consisted largely of natural resource extraction and now they are largely technology companies with values based upon people Figure 2. The Age of Tech 201 City of Bozeman | Economic Development Strategy Update November 2016 Page 6 generating innovative ideas and processes. This is not to suggest that Bozeman needs to focus their industrial base entirely on technology companies, but to understand that the modern economy thrives more on skilled people than natural resource extraction. A significant cohort of the talent in demand consists of the “Millennial” generation (generally ages 19 to 35 in 2016) made up of approximately 76 million people – the largest demographic group our country has seen. As this generation grows and shapes our talent-based economy, it is important to understand what motivates them and the communities they choose in such a highly mobile environment. Such an environment includes the following elements:  Job Base. Talent moving to a new community wants to know that there are other opportunities if the job that brought them there does not fulfill expectations.  Simple Commute. Many Millennials are not defined by the automobile, and do not want to drive if they don’t have to. As reported in Urban Land Institute (ULI) Emerging Trends 2016, miles traveled by car for those people 34 years old or younger are down 23 percent nationally. Locally, the average miles travelled by any mode – walking, driving, biking, or taking transit – is the lowest for Millennials.  Urban Lifestyle. They tend to prefer density with alternative transportation modes and retail nearby, which provides alternatives to owning a car. This urban lifestyle does not mean that an entire community must conform to urban densities. What is important is that some element of an urban lifestyle through either a healthy Main Street in a traditional downtown or denser town centers in suburbs is provided.  Amenities. Millennials are looking for ample amenities, especially restaurants and access to outdoor recreation.  Open Culture. They embrace social or ethical causes1 and communities that are more diverse, accepting, and open to change. Skilled Workforce When planning for a future economy it is important to understand that all industries are dependent on a talented workforce that has technical skills and/or higher education attainment. Bozeman’s future economy requires a skilled workforce with training in career technical education (CTE) and access to higher education science, technology, engineering, and mathematics (STEM) degrees. Career Technical Education (CTE) Training CTE training is targeted toward middle-skill jobs, which require education and training beyond high school but less than a bachelor's degree, and are a significant part of the economy. Of the 55 million job openings created by 2020, 30 percent will require some college or a two-year associate degree. 1 Brookings Institute, 11 Facts about the Millennial Generation, June, 2014. 202 City of Bozeman | Economic Development Strategy Update November 2016 Page 7 It is important to foster partnerships with Gallatin College and local primary and secondary schools to encourage youth to consider this career path. By engaging youth early, they may be more likely to attend Gallatin College or obtain other skills training and either start their own enterprise or apply their critical skills with local companies in Bozeman. An example of CTE training includes culinary programs that support the hospitality and tourism industry, and photonics technician training with Computer Numeric Control (CNC) machining skills development that supports high-tech manufacturing. Higher Education Globally, positions requiring substantial independent judgment and decision making are now in high demand. Increasingly employers are demanding a workforce that has technical skills, including manufacturing jobs that involve the operation of sophisticated machinery requiring some advanced training beyond high school. Science, technology, engineering, and mathematics (STEM) workers are increasingly in demand and in short supply, especially in the private sector which needs software developers, data scientists, and those in skilled trades. Bozeman is fortunate in that it is home to Montana State University (MSU), which provides several degrees and research facilities to equip students with these technical, interpersonal, and entrepreneurial skills that are in high demand. What is the Benefit of an Economic Development Vision and Strategy? In order to prepare a community to proactively respond to rapidly changing trends, it must have a strategy in place. Without a strategy, efforts are often reactive, non-collaborative, and not connected for meaningful impact. An economic development strategy will: #1: Document a Playbook For economic development to succeed, numerous partners and organizations must be engaged and collaborate toward common goals. At the same time, it is essential for public and private entities to recognize that they are partners in economic development efforts, as one cannot be sustained without the other. To efficiently and effectively align goals, a community must understand, document, and achieve consensus on its vision, values, opportunities, and objectives. Bozeman has established a solid foundation with the three economic development pillar strategies defined below: 1. Support retention and growth of existing businesses, while welcoming and encouraging new businesses; 2. Invest in infrastructure as a mechanism to drive economic development; and 3. Support education and workforce development initiatives to provide businesses with qualified workers. 203 City of Bozeman | Economic Development Strategy Update November 2016 Page 8 The world’s economy is changing rapidly. An established “playbook” provides enough broad goals to recognize opportunities when they arise, and also clear direction regarding the City’s roles to help determine projects that should be pursued and those that are better implemented by other stakeholders. To effectively implement a strategy, it is as important to say “no” to certain opportunities as it is to say “yes” to others. #2: Identify Specific Actions and Metrics Once goals and objectives are defined, action must be taken. Often these actions will appear minor without the overall context of the plan. Furthermore, some actions will build momentum and have a meaningful impact, others will fail, and some may not occur due to limited stakeholder interest or resources. The intent of the strategy is to provide several action items by several partners, all working toward the same overall goal. This is a flexible document that will be shaped as opportunities arise. Finally, it is important to revisit the document annually and determine where progress is being made, where other areas are deficient, and acknowledge that progress is being made. It will be necessary to update the document every three to five years in keeping with the rapid pace of change in the economy. 204 City of Bozeman | Economic Development Strategy Update November 2016 Page 9 Background In developing the economic development strategy, it is important to obtain information from local businesses and employees. We have achieved this through personal interviews of stakeholders identified in Attachment B and survey responses from the business community. Consistent themes from the interviews and surveys are summarized below and are reflected in the strategy. Stakeholder Interview Themes In August, 2016 Leland Consulting Group and Bozeman Economic Development staff held several meetings with industry representatives, small business organizations, the Economic Development Committee, and City staff to determine opportunities and challenges to fostering economic development in the Bozeman region. Consistent themes and comments are noted below.  Hard to attract and hire senior level talent. Often want to also bring professional spouse but may not have a position for that person. This is referred to as a “trailing spouse issue”.  Need to tell Bozeman business story (outdoor recreation story is done well already).  If more companies are here, it is more attractive to employees because they have options for career growth and competition which ultimately increases wages.  Need to make sure existing companies have place to grow. They want to stay within the Bozeman city limits but that opportunity is becoming constrained by costs and lack of building sites.  Protect access to and quality of outdoor life and ecosystem (aquifers, trails, streams, views). This is vital to Bozeman.  Emerging growth and economic development issues must be addressed on a regional level. Need to start thinking regionally.  Financial resources are constrained. Need to work together (private/public) for proactive solutions.  Accommodate and welcome new businesses interested in Bozeman, and balance other economic development priorities with recruitment of companies.  Work with industry clusters to determine gaps in supply-chain and target companies needed to fill the gaps. 205 City of Bozeman | Economic Development Strategy Update November 2016 Page 10 Citywide Survey Themes The City of Bozeman is undergoing a Strategic Planning Process, which included outreach to the local citizens via survey. They received over 530 responses, including the following, which represent consistent themes in answering “What is your vision for an innovative economy?”  Higher wages, more appreciation of workforce, less concentration of wealth in the hands of a few privileged folks  Promote growth on the micro level by opening doors and lightening unnecessary restrictions that were written with larger businesses in mind. We need more people manufacturing or running businesses out of their homes and vehicles as the cost of brick and mortar businesses has become prohibitive to smaller startups.  Small, entrepreneurial businesses are the key. They are flexible, hire the most individuals and adapt better than large businesses to a constantly changing economy!  Thriving business community, lots of growing startups, full employment, opportunities to get training to improve your position.  Easy to start a business, easy to get funding.  A varied economy that continues to make quality of life a priority.  Economy based on multiple legs – technology, recreation, other skilled employment  Utilizing local talent and businesses.  Develop a plan to improve jobs and employment opportunities for residents wanting to stay in the area equally matched with recruiting out of state residents for current and future openings for employment. Develop training programs for workforces underrepresented, like skilled trades, high-tech, and service work such as hospitality, landscaping, or unskilled labor.  Jobs that pay enough to let you live here.  Global, technology based businesses and other clean industries.  I would hope that Bozeman is an outdoor industry hub, has more than high-tech as options for well-paying jobs, and has direct educational opportunities for residents who want to pursue jobs in Bozeman.  Bozeman has a healthy mix of industries, including thriving high-tech companies who are based in Bozeman.  That Bozeman would not become a mini Silicon Valley, even though high-tech businesses are here. We need to make sure Bozeman remains diversified enough that we have a variety of business that offer a variety of positions from skilled labor to Ph.D....not just all jobs requiring a high amount of education.  A diversified economy that provides high paying jobs but doesn't detract from our natural environment. 206 City of Bozeman | Economic Development Strategy Update November 2016 Page 11 Business Owner Survey Themes City of Bozeman staff in partnership with Prospera, Bozeman Chamber of Commerce, and Downtown Partnership distributed a survey to over 2,000 businesses. A total of 107 responses were submitted. The company make-up is shown in the following chart and predominant themes are summarized below. Figure 3. Types of Businesses Responding to Survey 207 City of Bozeman | Economic Development Strategy Update November 2016 Page 12 Figure 4. Where Bozeman Companies Find Talent Figure 5. Ideal Location for Bozeman Companies 0 5 10 15 20 25 30 35 Manufacturing Retail/Restaurant Professional services Tourism Outdoor Photonics Bioscience Software/IT 208 City of Bozeman | Economic Development Strategy Update November 2016 Page 13 Business Owner Survey Comments  I work with businesses who are hiring. Barriers include: No local job posting site, costly nature of newspaper advertisements, many businesses don't offer any type of health insurance (too expensive), inability to be competitive with wages.  Available pool of experienced applicants, timing of students coming and going seasonally.  Hiring is done through word of mouth, online notices, in-store notices; university job board and local Job Center.  If you could locate anywhere, where would it be: o Downtown o Northeast Bozeman o Four Corners o West end of Huffine o MSU Innovation Campus  What do you like about your current location: o Easy access to I-90 for shipping. Central. o Downtown – close to services, culture, active main street. o Easy to get to, easy parking, close to MSU campus. o In the heart of the western expansion of Bozeman. o Don't like current location with too much traffic and no place to walk. Suburban.  I'm not a "Bozeman native," I moved here in 2003. So I realize I'm part of the "growth challenge." I believe there are ways we can grow responsibly, put infrastructure first (so we're not handling those issues in "reactive mode" five years from now), and foster a sense of community downtown and beyond, so we don't lose the fine qualities that drew us to Bozeman in the first place. We do need to look at establishing more live/work/eat/play hubs outside the Bozeman Main Street. That will be the toughest shift I imagine. Our single-street downtown is so beloved by so many, but as the valley continues to grow, that Main-centric mentality will get even harder to sustain. Thriving cities find a way to establish micro-hubs and self-sufficient mini communities in rays branching out from the main downtown. We don't have that yet, but it's where we need to go.  The City needs help implementing a system that would work more efficiently for small business owners. It shouldn't take as long as it does to get permits approved.  Thank you for this opportunity to give input. 209 City of Bozeman | Economic Development Strategy Update November 2016 Page 14 Montana Photonics Industry Alliance Member Survey (2014) The Photonics Alliance issues an annual survey to its membership. One specific question is “What are the three most important things that the city/county government could do to promote the success your organization?” This question helps guide specific actions the city should take to foster economic development. The three most common answers were:  Support the Montana Photonics Industry Alliance (20 percent).  Support a campaign to increase awareness of the growing Montana photonics industry and the attractiveness of this area for photonics companies and employees (20 percent).  Support infrastructure projects such as increased internet bandwidth and better business travel connections (20 percent). Strengths, Weaknesses, Opportunities, and Challenges (SWOT) The following strengths, weaknesses, opportunities, and threats (SWOT) are derived from stakeholder input, survey responses, and general research. Strength (internal) Weakness (internal)  High-wage and knowledge-based industry clusters  MSU and Gallatin College programs and increasing enrollment in both  Bozeman Yellowstone International Airport  Outdoor recreation opportunities  Vibrant downtown  High net-worth population  Small-town feel  Strong K-12 system  Sustainable culture  Regional retail hub (important for talent attraction)  I-90 access  City has great GIS data sharing capability and culture  Limited affordable housing  Low salaries (also a strength for business)  Limited rail freight loading  Isolated location  Lack of cultural diversity  Limited access to venture capital and startup ecosystem  Hard to attract senior level talent  City permitting process perceived as difficult  Broadband infrastructure  Limited site availability for business expansion  Lack of activities to support youth programs, especially teenagers  Lack of larger conference/convention facility Opportunity (external) Threat (external)  Yellowstone National Park tourist attraction  Big Sky Resort business leader attraction  Millennial talent pool is mobile and seeks quality location  Population growth in mountain states  MT #6 best state for business tax climate  Limited STEM education workforce  State dependence on energy economic base  Increase in fuel prices 210 City of Bozeman | Economic Development Strategy Update November 2016 Page 15 Economic Profile The following information provides a current snapshot of economic conditions in the city of Bozeman that provide direction regarding strategy actions. These data points can be used over longer periods of time as a point of reference in gauging if the City is achieving overall goals. Population Growth The city of Bozeman’s population increased from 27,509 in 2000 to 39,123 in 2014 for a 42.2 percent change in population. Population is projected to continue to grow at an annual rate of 4.2 percent. This trend will continue to compel the City to consider strategic infrastructure investments that can foster efficient development patterns that will support this growth. Figure 6. Percent Change in Population (2000 to 2014) Source: U.S. Department of Commerce. 2015. Census Bureau, American Community Survey Office, Washington, D.C.; U.S. Department of Commerce. 2000. Census Bureau, Systems Support Division, Washington, D.C. Produced by Economic Profile System (EPS) September, 2016. 211 City of Bozeman | Economic Development Strategy Update November 2016 Page 16 Employment Growth In line with population growth, employment grew at an average of 3.2 percent annually in Gallatin County from 2004 to 2014. Table 3. Gallatin County Annual Total Employment 2008 2009 2010 2011 2012 2013 2014 2008 to 2014 2010 to 2014 Gallatin County 49,081 45,324 45,043 46,419 47,718 50,315 55,533 6,452 10,490 Annualized Employment Growth -7.7% -0.6% 3.1% 2.8% 5.4% 10.4% 2.2% 5.4% Source: U.S. Census LEHD Leland Consulting Group. Commute Patterns Commute patterns reflect how much of the workforce lives and works within the city of Bozeman. Ideally, the workforce lives and works within the city to reduce congestion and retain spending dollars within the community. Table 4 shows there is an increase of employment and residents within the city between years 2010 and 2014. What is remarkable is the minimal increase in people commuting into Bozeman for a job and living outside the city. Instead there is an increase in people living and working in Bozeman, as well as the number of people living in Bozeman but working outside the city. What this suggests is that the workforce prefers to live in Bozeman. Therefore, if an employer locates a business within Bozeman they have a competitive advantage in providing a desired location that reduces commute times and congestion and more access to local sector businesses. Table 4. City of Bozeman Commute Patterns 2010 2014 Employment in City 24,384 27,317 Employed Individuals Living in City 13,737 18,266 Commute into City for Employment and Live Outside 16,370 16,637 Live and Work in City 8,014 10,680 Live in City but Leave for Employment 5,723 7,585 Source: U.S. Census LEHD Leland Consulting Group. 212 City of Bozeman | Economic Development Strategy Update November 2016 Page 17 Median Age The median age in Bozeman is 27.5 years versus the U.S. average of 37.4 years. The distribution of ages within Bozeman is shown in Figure 7. As evidenced, the Millennial cohort dominates the Bozeman population. This average age is largely influenced by Montana State University, but still has a significant influence on the culture and design of the community quality of life elements. Distribution of Employment Table 5 reflects the distribution of employment within Bozeman in comparison with U.S. averages. Of note is a smaller percentage of manufacturing employment at seven percent compared with a national average of 10.4 percent. This likely reflects the nature of small manufacturing facilities within the city. There is a higher percentage of arts and entertainment at 14.8 percent compared to the national average of 9.5 percent which reflects the unique tourism industry within Bozeman. According to projections by the U.S. Department of Labor, service-providing sectors are projected to capture 94.6 percent of all the jobs added between 2014 and 2024. This trend toward the service- producing sectors emphasizes the importance of focusing on talent based industries that require skills and some additional education. Figure 7. City of Bozeman Average Age (2014) Source: U.S. Department of Commerce. 2015. Census Bureau, American Community Survey Office, Washington, D.C.; U.S. Department of Commerce. 2000. Census Bureau, Systems Support Division, Washington, D.C. Produced by Economic Profile System (EPS) September, 2016. 213 City of Bozeman | Economic Development Strategy Update November 2016 Page 18 Table 5. Distribution of Employment by Industry (2014) Bozeman, MT U.S. Goods-Producing/Non-Service Ag, Forestry, Fishing & Hunting, Mining 2.2% 2.0% Construction 6.4% 6.2% Manufacturing 7.0% 10.4% Wholesale Trade 1.8% 2.7% Service Related Retail Trade 12.9% 11.6% Transportation, Warehousing, and Utilities 2.2% 4.9% Information 1.5% 2.1% Finance and Insurance, and Real Estate 4.6% 6.6% Professional, Scientific, Management, Admin, & Waste Management 11.4% 10.9% Education, Health Care, & Social Assistance 27.6% 23.2% Arts, Entertainment, Recreation, Accommodation, & Food 14.8% 9.5% Other Services, except Public Administration 3.8% 5.0% Public Administration 3.7% 4.9% Source: U.S. Department of Commerce. 2015. Census Bureau, American Community Sur vey Office, Washington, D.C. Produced by Economic Profile System (EPS) September, 2016. Income Distribution In the 2009 to 2014 period, the income category in the city of Bozeman with the most households was $50,000 to $74,999 (19.3 percent of households). The income category with the fewest households was $150,000 to $199,999 (2.5 percent of households). In the 2009 to 2014 period, the bottom 40 percent of households in the city of Bozeman accumulated approximately 10.7 percent of total income, and the top 20 percent of households accumulated approximately 52.6 percent of total income. Figure 8. City of Bozeman Household Income Distribution (2014) Source: U.S. Department of Commerce. 2015. Census Bureau, American Community Survey Office, Washington, D.C. Produced by Economic Profile System (EPS) September, 2016. 214 City of Bozeman | Economic Development Strategy Update November 2016 Page 19 This income distribution is summarized by a Gini coefficient, which is a commonly used measure of inequality. In the 2009 to 2014 period, the city of Bozeman had an average income distribution between high and low-income households (Gini coefficient of 0.47) similar to the U.S. average income distribution (Gini coefficient of 0.48). Education Attainment As discussed, the modern global economy thrives on a skilled workforce. As indicated in the following table, Bozeman is fortunate to have a highly-skilled workforce based on education attainment. This is especially important for the types of industry clusters driving the Bozeman economy that require a highly skilled workforce. Table 6. Educational Attainment (2014) Bozeman % of Total U.S. % of Total No High School Degree 2.5% 13.7% High School Graduate 97.5% 86.3% Associates Degree 6.6% 7.9% Bachelor's Degree or Higher 54.4% 29.3% Bachelor's Degree 35.6% 18.3% Graduate or Professional 18.8% 11.0% Source: U.S. Department of Commerce. 2015. Census Bureau, American Community Survey Office, Washington, D.C. Produced by Economic Profile System (EPS) September, 2016. Figure 9. Gini Coefficient (where 1 represents inequality) Source: U.S. Department of Commerce. 2015. Census Bureau, American Community Survey Office, Washington, D.C. Produced by Economic Profile System (EPS) September, 2016. 215 City of Bozeman | Economic Development Strategy Update November 2016 Page 20 Industry Clusters Industry clusters are groups of similar and related traded sector businesses in a defined geographic area that share common markets, technologies, worker skill needs, and which are often linked by buyer-seller relationships. Industry clusters represent distinct qualities of a community and help define what makes one community different from another. As they convey distinct qualities, it is important to be specific in the definition of a cluster. For example, rather than promoting “high- tech,” a community should focus on “software or photonics” to convey the type of product being manufactured and its unique workforce and supply chain needs. Promotion of clusters helps reinforce to existing businesses and interested outside talent the unique community assets and why it is good place to stay and grow. When interviewed, business leaders agreed with this approach in that it helps convey an understanding of the distinct industry assets in the region. The City has identified the following key industry clusters it can support and grow:  Photonics  Software/IT  Outdoor  Tourism/Recreation  Biotechnology Each cluster benefits from partnership with the significant higher education assets of Montana universities and colleges. Furthermore, the city’s infrastructure, unique assets, and existing company base serves to support these industries. In defining specific clusters and fostering collaboration, new business opportunities arise, workforce training needs can be met, and physical site expansion needs can be addressed. The following summaries by cluster will vary in the amount of detailed information depending on the level of business alliance organization behind each cluster and the research invested to date. Those with more information provide a good benchmark for the level of information desired from business retention efforts and fostering formal business alliances for each group. Photonics Overview Optics and photonics are a significant component of the southwestern Montana economy. On a per capita basis, Bozeman has one of the highest densities of optics companies found anywhere in the United States. Many of these companies were founded by Montana State University graduates, often through MSU technology transfer. 216 City of Bozeman | Economic Development Strategy Update November 2016 Page 21 Companies There are at least 30 photonics companies within the Bozeman region (http://www.montanaphotonics.org/members/). Anchor companies that founded the cluster and are larger employers include Quantel, ILX Lightwave, Lattice Materials Corporation, and FLIR. Sixty-three percent of the companies reported fewer than 20 employees, while 18 percent had 21 to 50 employees, and another 18 percent had 50 to 100 employees.2 A sizeable majority of the firms in the cluster were formed since 2000, and they tend to be young, small, and innovation intensive. Industry Growth Projections According to the following excerpt from Multiannual Strategic Roadmap 2014 – 2020 by the European Technology Platform Photonics21, the opportunities for the photonics is significant: “Photonics is everywhere around us: from communications and health, to materials processing in production, to lighting and photovoltaics and to everyday products like DVD players and mobile phones. Yet the full disruptive potential of photonics is only now becoming clear. New advances in photonics will revolutionize healthcare and provide new ways of detecting, treating and even preventing illness. In manufacturing, laser processing will be a basic prerequisite for high-volume, low-cost manufacturing.”3 The report continues to identify significant opportunities clearly conveying how photonics is becoming one of the most important industries for the future. According to a Montana Photonics Industry Alliance 2015 Member Survey, total industry employment is 517 and they forecast headcount growth rate of nine percent for the year. Distinct Resources Many of the companies have a strong connection to MSU’s Optical Technology Center (OpTec) and its associated nonprofit Spectrum Lab. OpTec plays a prominent role within the optics cluster as a networking center for research and talent development. Spectrum Lab was “spun out” of OpTec in 1999 to further development technologies from MSU’s research facilities. Spectrum Lab serves as a kind of optics “application incubator” for faculty and industry and as a bridge between MSU labs and the private sector.4 2 Imagining a Future for the Big Sky Optics Cluster, RTS Inc., October 2012. 3 Multiannual Strategic Roadmap 2014 – 2020 by the European Technology Platform Photonics21, April 2013. 4 Imagining a Future for the Big Sky Optics Cluster, Regional Technology Strategies, October 2012. 217 City of Bozeman | Economic Development Strategy Update November 2016 Page 22 Montana Manufacturing Extension Center (MMEC) is an important organization fostering growth of the cluster as well. The MMEC at Montana State University’s College of Engineering in Bozeman is a statewide manufacturing assistance center that provides technical support and training to Montana businesses. MMEC is also a part of the National Institute of Standards and Technology (NIST) nationwide network of centers created to assist small and mid-size manufacturers, the Manufacturing Extension Partnership (MEP). MMEC offers a wide array of services to Montana manufacturers including business management, design and product development, lean enterprise, process improvement, and quality systems services as well as a variety of training courses. Workforce The photonics industry is able to access a skilled workforce from both MSU and Gallatin College through the following programs. Montana State University:  Bachelor of Science (BS) Degree in: o Chemical Engineering o Computer Engineering o Industrial Engineering  Masters of Science (MS) Degree in Optics and Photonics  BS, MS, PhD in Physics Gallatin College:  Associate of Applied Science (AAS) Degree o Photonics, Laser, Optics Technology. o Design Drafting o Production Management Course for Manufacturing (proposed)  Certificate of Applied Science (CAS) Degree o Welding o Machining Industry Alliances The Montana Photonics Industry Alliance is a strong organization serving the Bozeman area. They perform annual surveys of members and have identified that they most need support from the City regarding organizational support and employee attraction. Through their industry collaboration they worked with Gallatin College to create the Photonics AAS degree that started Fall, 2016. 218 City of Bozeman | Economic Development Strategy Update November 2016 Page 23 Software/IT Overview The majority of software/IT companies within the Bozeman region provide Enterprise Software (SaaS) services. These are companies with a software distribution model in which a third-party provider hosts applications and makes them available to customers over the Internet. This distinguishes Bozeman’s clusters from other regions that may specialize in consumer-facing or gaming products. Companies Bozeman is fortunate to be home to a major facility of a globally recognized company, Oracle, which serves as a significant anchor company for the region. Other growing companies include Workiva, Zoot Enterprises, and Wisetail. Industry Growth Projections In 2016, spending on public cloud infrastructure as a service hardware and software is forecast to reach $38 billion, growing to $173 billion in 2026. SaaS and Platform as a Service (PaaS) portion of cloud hardware and infrastructure software spending are projected to reach $12 billion in 2016, growing to $55 billion in 2026.5 Trends driving the market growth include geographic expansion, industry customization, developer focus, expanding professional and managed services, and enhanced security, governance, and compliance. The Montana High-Tech Business Alliance (HTBA) includes software companies as well as high-tech manufacturers. The HTBA 2016 Member Survey indicates that Montana’s high-tech companies anticipate growing almost seven times faster than the Montana economy as a whole. HTBA members (23 percent of all responses) most often reported that attracting talent and hiring skilled technology workers was their firm’s largest impediment to growth. Distinct Resources A robust broadband network is critical for the growth of this industry. The City’s leadership role in planning this infrastructure is a significant action toward fostering the growth of this industry. Continuing to ensure access to convenient business flights to major software/IT regions is important for talent attraction and access to capital will be important as well. 5 Statistica: Public cloud Infrastructure as a Service (IaaS) hardware and software spending from 2015 to 2026, by segment (in billion U.S. dollars). 219 City of Bozeman | Economic Development Strategy Update November 2016 Page 24 Workforce The software industry differs slightly from the business survey results regarding source of hiring. As this industry has strong demand for talent that is highly mobile companies often extend beyond Bozeman and Montana to hire employees. However, they can access a skilled workforce from both MSU and Gallatin College through the following programs: Montana State University:  BS, MS, and PhD in Computer Science  Bachelor of Science Degree Computer Engineering Gallatin College:  Certificate of Applied Science (CAS) Degree o Network Administration Technology (Fall 2017) Industry Alliances The Montana High-Tech Business Alliance (HTBA) consists of more than 300 high tech and manufacturing firms and affiliates in Montana. It consists is a broad range of companies including pharmaceutical, semiconductor, software, and manufacturing using high-tech methods. If Bozeman wants to foster a distinct software cluster, it can benefit from a distinct industry alliance that is focused on their unique culture of collaboration, fostering startups, and addressing their need for talent. Outdoor Overview Leveraging the unparalleled access to outdoor recreation, Bozeman has a growing industry tied to this asset. The outdoor cluster consists of firms that design, develop, manufacture, market, distribute and sell apparel, footwear, and gear for active outdoor recreation. While manufacturing is a key component to the industry, it also hosts highly skilled knowledge-based workers in design, marketing, and managing product development. Companies A key Bozeman regional anchor company is Simms Fishing Products, with its significant brand awareness and large workforce. Other Bozeman companies include Mystery Ranch, Sklar Bikes, Buck Products, and Sitka. 220 City of Bozeman | Economic Development Strategy Update November 2016 Page 25 Industry Growth Projections Outdoor recreation is an economic powerhouse in the United States, each year generating $646 billion in consumer spending.6 Outdoor recreation in Montana generates $5.8 billion in consumer spending on gear, vehicles, trips, travel-related expenses, and more. Over the next five years, as total recreation expenditure expands, demand for hiking and outdoor equipment is anticipated to grow. Industry revenue is $4 billion within Montana, with an annual growth of 1.8 percent.7 Distinct Resources Outdoor manufacturers such as Simms place a high value on the Montana Manufacturing Extension Center (MMEC) due to its practical and meaningful consulting services that help a company improve production efficiencies. Bozeman’s easy access to the outdoors helps attract workers in this industry to the region. Workforce The outdoor industry is made of a variety of skills and degrees tied to design and manufacturing. Local industries benefit from tailored training programs offered by Gallatin College:  Associate of Applied Science (AAS) Degree o Design Drafting o Production Management Course for Manufacturing (proposed)  Apprenticeship o Sewing Apprenticeship - According to Gallatin College staff, they are currently working with Extended University-MSU, and Career Transitions (non-profit) and some outdoor industry manufacturers to put together an industrial sewing apprenticeship or short-term training, likely through a non-credit course path. Business Alliances Several Bozeman companies are members of the Outdoor Industry Association, which is a national organization focused on the broader advancement to encourage outdoor recreation. Local Bozeman manufacturing companies could benefit from an organized effort to promote their companies tied to the Bozeman tourism/recreation industry. There is a ready opportunity to leverage the messages and collaborations developed in the recent Bring it to Bozeman outdoor video. Additionally, they can continue to partner with higher-education partners to grow the workforce base. 6 Outdoor Recreation Economy, Outdoor Industry Association, 2016. 7 Climbing high: Revenue trends upward as recreational spending rises, IBIS World, September 2015. 221 City of Bozeman | Economic Development Strategy Update November 2016 Page 26 Tourism/Recreation Overview The tourism industry cluster consists of a very wide range of businesses that benefit from travelers. Buses, automobiles, airlines, rail, and other transportation companies bring travelers into an economic region. These consumers in turn purchase products and services offered by local lodging establishments, restaurants, amusement, recreational and entertainment establishments, and general retail outlets. This process creates many employment and business opportunities, all of which help sustain and expand the local economy.8 Companies This industry cluster is supported by numerous local sector businesses including hotels, restaurants, tour guides, and retailers. Industry Growth Projections In 2015, Yellowstone National Park experienced record visitation. One reason is that this iconic national park is a draw for many international visitors. Pair that with reduced visa requirements in China, for example, and there is a sudden boom. Nationally, the number of visitors from China to the U.S. currently ranks as the 7th highest visitor group. By 2020, Chinese visitors are expected to be one of the largest groups of visitors to the U.S.9 This trend is reflected in the National Park Service recent addition of Mandarin speaking translators at the Park. Projected growth in the industry is highlighted in Figure 10. 8 The Economic Review of the Travel Industry in Montana, Institute for Tourism & Recreation Research, University of Montana, December 2014. 9 Montana Economic Report, Bureau of Business and Economic Research, 2016. 222 City of Bozeman | Economic Development Strategy Update November 2016 Page 27 Figure 10. Total Travel Expenditures in the U.S. Source: The U.S. Travel Association, June 2016. Distinct Resources The Bozeman Yellowstone International Airport, direct access to Interstate 90, and nearby access to Interstate 15 in Butte are critical infrastructure assets for the tourism industry. The continual trend of the Bozeman Yellowstone International Airport outpacing Billings in passenger volume remained in 2015. Bozeman, with its population growth and nearby attractions (Yellowstone and ski resorts), should remain Montana's busiest airport for visitation in the state. Additionally, distinct assets such as Yellowstone National Park, Big Sky Resort, and Bridger Bowl Ski Area are important to the vitality of this industry. Workforce The tourism/recreation industry consists of a variety of skills and degrees. Local industries benefit from tailored training programs offered by MSU and Gallatin College: Montana State University:  BS, Hospitality Management Gallatin College:  Associate of Applied Science (AAS) o Culinary Arts AAS Fall 2017 223 City of Bozeman | Economic Development Strategy Update November 2016 Page 28 Business Alliances The Bozeman Convention and Visitor Bureau and the Bozeman Area Chamber of Commerce currently promote local businesses and attractions for visitors. There is an opportunity for these organizations to align events, marketing, and promotions to highlight and promote traded-sector outdoor companies. The alignment between tourism and outdoor gear marketing can effectively help the existing traded-sector companies expand their market base and revenues, which in turn allows them to grow the company. Biotechnology Overview Southwest Montana has developed its own distinctive biotech infrastructure that includes several medical/bioscience research institutes, hospitals with research and clinical trials capacity, and a very strong life sciences and related engineering presence within its two major universities. Nearly 61 percent of all bioscience jobs in Montana are in the Research, Testing and Medical Laboratories category, compared to 56.5 percent in the U.S. Bozeman has the largest concentration of bioscience companies, with 33 percent of all Montana companies being located in Bozeman.10 Companies The broader Southwest Montana bioscience cluster is anchored by the GlaxoSmithKline manufacturing facility in Hamilton, Montana. Within Bozeman, companies include Takeda, Microbion, ProPharma Group, and ADVR Inc. Industry Growth Projections Entering the second half of this decade, most life sciences organizations appear to be adopting an attitude of cautious optimism. Significant opportunities exist in the global marketplace but challenges exist as well. Spending growth in pharmaceuticals (pharma), biotechnology (biotech), and medical technologies (medtech) is projected to follow an upward trend due to increasing demand, but pricing challenges are still an issue. Industry margins are being eroded by high discounts, retail sector price controls, public sector purchasing policies, and the move to value-based care. Biotech drugs (vaccines, biologics) continue to gain traction in the life sciences sector. Of the top 10 pharma products by sales in 2014, the majority of them were biotech drugs, including monoclonal antibodies and recombinant products. Treatments for rheumatoid arthritis, Hepatitis C, and cancer figure most prominently in the list of the most sales generating drugs.11 10 Montana Bioscience Cluster Revisited, RTS Inc., 2013. 11 Global life sciences outlook, Deloitte, 2016. 224 City of Bozeman | Economic Development Strategy Update November 2016 Page 29 GlaxoSmithKline shut down its vaccine R&D branch within its Hamilton facility and laid off all of the unit’s 27 employees in 2015. (No layoffs have occurred for the manufacturing portion of the Hamilton site, where the bulk of the company’s employees work.) In addition, Takeda Pharmaceutical Company will close its vaccine facility in Bozeman by 2017 as part of a company- wide consolidation. While these companies have announced their relocation, some staff have indicated that they will not leave Bozeman and instead start new companies. This is a significant testament to Bozeman’s ability as a community to retain talent and continue to grow industry clusters from the ground up. Furthermore, according to interviews with local business bioscience leaders, the industry holds promise with the recent addition of Dr. Renee Reijo Pera highlighted below, which will only further support the talent base determined to stay in Bozeman. Distinct Resources Montana State University lab facilities and technology transfer services are critical to the growth of this industry. Dr. Renee Reijo Pera, an internationally recognized stem cell scientist and former director at Stanford University is the new Vice President for Research and Economic Development at Montana State University.12 According to business leaders, there is approximately 40,000 square feet of private wet lab space available for lease. This is a highly valuable asset that should be highlighted and promoted to retain and grow local companies. Additionally, development of the Montana State University Innovation Campus has gained momentum and is attracting interest in development. Workforce The biotech industry is able to access a skilled workforce from MSU through the programs listed below. Gallatin College currently does not have specific training programs tied to this cluster, however staff indicated that they are willing to work with the industry leaders to develop new programs as needed. Montana State University:  Bachelor of Science Degree in Biotechnology  PhD in Bioengineering Business Alliances Montana Bioscience Alliance is an organization that serves as a hub for Montana’s biotechnology companies, entrepreneurs, laboratories, hospitals, clinics, and universities to commercialize, grow, and sustain globally competitive bioscience companies. Business leaders expressed in interviews that it would be beneficial to work with this organization with more concentrated focus on Bozeman companies and MSU opportunities for commercialization. 12 Bioscience Under the Big Sky, Montana Bioscience Alliance, 2014. 225 City of Bozeman | Economic Development Strategy Update November 2016 Page 30 The Strategy Strategies must continuously evolve as economic situations change, actions are accomplished, and new opportunities arise. Current Strategy The City of Bozeman has established a solid approach to economic development with its current strategy that is based on the three economic development pillar strategies below. 1. Business Growth: Support retention and growth of existing businesses, while welcoming and encouraging new businesses. 2. Infrastructure: Invest in infrastructure as a mechanism to drive economic development. 3. Workforce: Support education and workforce development initiatives to provide businesses with qualified workers. Strategy Update The strategy update builds on the current work to date with a consideration of broader economic development trends. Specifically, within this recent economic growth cycle, the nation has seen large regions boom with innovation and employment that largely benefits a workforce with significant education and skills development. Many of these areas are now struggling with complex issues tied to increased traffic and limited affordable housing for the middle and low-income workforce. The city of Bozeman is at a critical point in growth and has an opportunity to learn from these larger regions. Fortunately, civic leadership is looking ahead to retain the exceptional quality of life in the city, while also growing the economic base that is so vital to the health of a community. A critical question that was heard throughout the development of this strategy was “Can we maintain the high quality of life Bozeman citizens expect while increasing wages to compete regionally and nationally?” The answer is yes with a commitment to the following outcomes, which are the foundation of this strategy update, and shape the three explicit goals outlined below. Strong Economic Base  Increase middle and high wage traded sector employment and diversify the economic base by supporting existing businesses and strategically growing the local supply chain.  Support local sector businesses with a seamless permitting process and awareness about existing small business programs.  Invest in infrastructure projects identified on the capital improvement plan (CIP) that the business community needs and wants by leveraging the City’s proactive culture to foster collaboration across departments and commitments to identified projects. 226 City of Bozeman | Economic Development Strategy Update November 2016 Page 31 Strong Community  Protect the outdoor environment by guiding efficient industry site development within the city limits.  Foster an environmentally and economically sustainable community with an active transportation network (transit networks, bicycle routes, trails, and sidewalks) that employers and employees desire.  Offset livability costs for citizens with conscious infrastructure and workforce investments that improve access to job opportunities with the understanding that several other stakeholders are focused specifically on affordable housing. Goal 1: Expand the Existing Base Why this Goal? The Bozeman area is fortunate to already host a robust base of knowledge-based industries that are poised for more growth. However, these existing industries are challenged with attracting a skilled workforce. Due to Bozeman’s high quality of life, it can attract and retain this needed talent with a concentrated message and outreach effort. When there is a larger employment base, it is more attractive to employees because they have options for career growth. In turn, once the employment base grows, competition will occur and ultimately increase wages. Objective 1.1 Develop strategic approach to business retention visits City staff must have a good understanding of the existing industry base to effectively support it. Meeting with businesses and documenting opportunities and challenges is an important first step to gain industry insights, resolve challenges, and foster collaboration. Furthermore, based on the significant amount of appreciation for outreach identified in the survey, it is clear this effort is desired and needed. Actions  Prepare list of existing targeted traded-sector companies that are within industry clusters. Become familiar with workforce services and grant programs that can help business. May want to include workforce representative as appropriate on visits.  Identify companies that are facing retirement and need to transition ownership or need assistance in scaling up facility.  Based on interviews with businesses, identify any barriers to growth. Compile responses from business to find common themes of strengths and weaknesses of working in Bozeman.  Obtain quotes from CEOs to authentically promote Bozeman. 227 City of Bozeman | Economic Development Strategy Update November 2016 Page 32 Objective 1.2 Invest in infrastructure and employment areas desired by traded sector business expansion It is important to understand where different industries can locate. For example, bioscience needs to be near MSU research facilities and photonics is sensitive to vibration and can’t be near rail. With this understanding of site needs, the appropriate infrastructure improvements can be made in the right locations to foster growth. City staff has the unique role in guiding infrastructure investments, land use policy, and the permitting process. Removing barriers to site development and proactively fostering site readiness tied to business needs is a critical role in economic development. Furthermore, development in the desired downtown core is more complex than standard “greenfield” development and requires hands-on engagement with staff. Actions  Work with industry clusters to understand their unique siting needs and help them find locations. Leverage planning and investment in broadband with site determination process.  Establish list of infrastructure needs tied to facilitation of site development.  Collaborate with Public Works, Finance, and Community Development Department to determine if the needed infrastructure serves multiple properties and is on the Capital Improvement Plan (CIP).  Ensure enough appropriately zoned land in desired employment areas.  Based on this understood need, apply for grants or apply Tax Increment Financing (TIF) funds for projects in appropriate districts. Consider applying for a federal EDA Public Works grant for infrastructure serving multiple employment sites. Objective 1.3 Foster industry cluster collaboration Industry clusters can thrive with a concentrated effort to bring research, workforce training, and business together. In doing so, innovation is commercialized, business opportunities are fostered, and training needs addressed. Cluster collaboration is realized through events, business assistance, infrastructure investment, workforce training, mentorships, education, and marketing. Actions  Continue to provide staff support for the photonics industry alliance.  Provide funding and staff support to implement a software industry alliance that includes stakeholder representatives.  Provide funding and staff support to implement an outdoor industry alliance that includes stakeholder representatives. 228 City of Bozeman | Economic Development Strategy Update November 2016 Page 33  Provide staff support to engage existing tourism organizations to align events, marketing and promotions to highlight and promote local outdoor companies.  Provide staff support to engage Montana Bioscience Alliance locally to further a bioscience industry alliance that includes stakeholder representatives.  Determine if there are gaps in the supply-chain requiring a specific company presence to bolster industry cluster strength. Partner with industry leaders to fill supply-chain gaps with known sites, market demand, and workforce opportunities. Objective 1.4 Strategically market for talent attraction The number one asset and need for any industry is talent. In expanding the existing base, it is important for businesses to easily retain and attract talent. In preparing the strategy, almost all industry sectors expressed the need to build one compelling website that aggregates the business case for Bozeman and why talent will want to come here. Additionally, in the business survey responses it was expressed that limited pools of applicants and no central site for postings is a barrier to hiring. The website could serve as important tool as a portal for hiring. Actions  Pending private industry match, hire consultant to build basic website for talent attraction that supports all industries. Consider annual maintenance in budget and strategy to engage industry for use and upkeep. Based on meetings with business groups and BRE visits, determine key messages to attract talent. Goal 2: Support Business Why this Goal? New businesses account for nearly all net new job creation and almost 20 percent of gross job creation. Furthermore, companies less than one-year-old have created an average of 1.5 million jobs per year over the past three decades.13 People generally start businesses in the places they are already located, and many of the resources they access are at the local or regional level. New local sector businesses are important as they make a community distinct, provide amenities to attract young professionals and families that drive the new economy, and serve the tourist industry. Many of these businesses need “brick-and-mortar” locations often requiring tenant improvements and building permits, which can be a daunting process. These businesses often benefit greatly from business planning and consulting as well. For these business owners, having one point of contact to navigate the process of starting a new business is extremely valuable. 13 The Importance of Young Firms for Economic Growth, Kaufman Foundation, September 13, 2015. 229 City of Bozeman | Economic Development Strategy Update November 2016 Page 34 New traded sector startups generally stem from university research or an existing industry cluster. These new businesses have limited space needs and may just be starting out of the home or garage. These businesses need access to capital and industry networks for collaboration and support. Objective 2.1 Provide resources to local businesses to help them grow and expand Often owners of new businesses have never experienced permitting and development of a business place nor are they aware of the many programs offered to support their growth. City staff has a unique role as an important point of contact for these new business owners and can make the process more seamless and supportive. Actions  Create a role for a specific person in economic development department to be first stop for permitting and process concierge. Introduce businesses to existing small business programs.  Continue to proactively share GIS data and information to help businesses determine new locations. Objective 2.2 Support existing startup infrastructure It is important to support an ecosystem where startups are supported and celebrated to create new jobs. An entrepreneurial culture not only serves to create new jobs, but it provides an environment that supports “trailing spouses:” a person who follows his or her life partner to another city because of a work assignment. In a tough hiring climate, promoting this asset is important. Actions  Collaborate with the startup organization to define roles and objectives. The City’s role is to help promote awareness of programs. Promote existing programs through business license renewal or City mailings.  Promote the MSU Blackstone Launchpad, which is an entrepreneur resource for students, alumni, and faculty offering coaching, ideation, and venture creation support.  Collaborate with MSU Tech Link (formerly Tech Transfer Office) staff to foster partnerships with industry clusters.  Promote the Blue Ocean Innovation Center, which is an existing private co-working space, as resource for startups.  Promote Startup Bozeman as networking resource for startups. 230 City of Bozeman | Economic Development Strategy Update November 2016 Page 35 Goal 3: Regional Connections Why this Goal? Complex issues driving income stratification and workforce skills gaps are making it more difficult for all citizens to realize positive personal economic growth in keeping with business growth. In order to plan for this modern economy, communities must consciously foster a diverse economic base and skilled workforce to weather inevitable negative portions of the economic cycles. Objective 3.1 Regional focus The economic development issues facing Bozeman do not adhere to geopolitical boundaries. In order for the City to effectively achieve goals of efficient, sustained and diverse economic growth, it must collaboratively work with County staff. Furthermore, if new financing tools are to be secured, it will take a unified regional voice. Actions  Establish economic development implementation group with County economic development, planning and public works staff.  Consider how tourism funds can be incorporated into economic development efforts.  Align economic development legislative agendas on a regional level for stronger voice and actions to preserve existing economic development tools and diversified funding stream for new opportunities.  Support Gallatin College in finding a location for a 100,000-square-foot facility and aligning regional funding. Objective 3.2 Workforce training partnerships To succeed in the modern global economy people must develop skills. In order to ensure economic opportunities for Bozeman citizens, it is important to foster interest in job opportunities at a young age and make training programs readily available. Actions  Build project-based learning partnerships between industry and K-12 programs. Have students visit manufacturing facilities to make education relevant.  Continue to support Gallatin College and training programs by commuting needs of businesses.  Explore opportunity for a coding school. These are fully-immersive coding boot-camp programs and a part-time course designed to produce or enhance highly employable software developers ready to work in Montana’s thriving community of startups and tech businesses. 231 City of Bozeman | Economic Development Strategy Update November 2016 Page 36 Objective 3.3 Strategically invest Urban Renewal With a conscious investment in active transportation, the City provides the crucial infrastructure to foster affordable lifestyle (not just affordable housing). With a focused effort to promote infill and building housing and employment along corridors, individuals are less compelled to own an automobile, which translates into $9,000 in personal annual savings. Actions  Understand where different types of workforce lives and their employment locations. Determine if there are commute barriers/opportunities.  Collaborate with transit authority to determine if routes and service are matching with employer and employee locations.  Support efforts to build higher-density housing near transit and active transportation routes.  Enhance bike and pedestrian connections throughout the city to offer low cost active transportation options. End of document. 232 City of Bozeman | Economic Development Strategy Update November 2016 Appendices Appendix A: Action List Appendix B: Stakeholder List Appendix C: Commission Resolution 233 Business Growth Infrastructure Workforce Actions and Metrics 2017 2018 2019 Years 4 and 5 Staff and Resource Partner Metric Outcome Expand the Existing Base √ Prepare list of existing targeted traded-sector companies that are within industry clusters. Become familiar with workforce services and grant programs that can help business. May want to include workforce representative as appropriate on visits. X X X X Project Manager / new staff Prospera, Chamber, Gallatin College, MSU, and other similar partners Identify how many business visits made in what sector. How many training programs utilized by business and what skills traiing is provided. Identify companies that are facing retirement and need to transition ownership or need assistance in scaling up facility. X X X X New staff Manufacturing Partnership List how many companies are facing this situation and resolution by what organization. Based on interviews with businesses, identify any barriers to growth. Compile responses from business to find common themes of strengths and weaknesses of working in Bozeman. X X X X New staff Brokers, developers, engineers Identify the barriers to growth and how are they resolved by staff. Obtain quotes from CEOs to authentically promote Bozeman.X X X X New staff NA Document quotes and utilize on website. √√ Work with industry clusters to understand their unique siting needs and help them find locations. Leverage planning and investment in broadband with site determination process. X X X X Project Manager Brokers, developers, engineers, MSUIC Identify how many infill projects were developed. Establish list of infrastructure needs tied to facilitation of site development.X X X X Project Manager Brokers, developers, engineers Document needed infrastructure projects. Collaborate with Public Works, Finance and Community Development departments to determine if the needed infrastructure serves multiple properties and is on the captial improvement plan. X X X X Project Manager City staff Identify how many ED projects on CIP and where. Ensure enough appropriately zoned land in desired employment areas.X X X Project Manager Community Development Department Identify how many sites available for expansion and where. Based on this understood need, apply for grants or apply Tax Increment Financing (TIF) funds to projects in appropriate districts. Federal EDA Public Works grant for infrastructure serving multiple employment sites. X X Project Manager City staff Identify how many grants and dollars have and/or can be obtained to fund infrastructure. √√ Continue to provide staff support for the photonics industry alliance. X X X X Director / Project Manager Photonics companies, MSU, and Gallatin College Determine barriers to growth within industry and how they align with regional legislative agendas. Build industry support for determined infrastructure needs. Provide funding and staff support to implement a software industry alliance that includes stakeholder representatives.X X X New staff and $10,000 Software companies, MSU, and Gallatin College Organization Chair identified and first meeting held. Provide funding and staff support to implement an outdoor industry alliance that includes stakeholder representatives. X X New staff and $10,000 Outdoor companies, MSU, MMEC and Gallatin College Organization Chair identified and first meeting held. Provide staff support to engage existing tourism organizations to align events, marketing and promotions to highlight and promote local outdoor companies. X X New staff Tourism organization and chamber Staff attending meetings to determine if there is an opportunity to align with outdoor industry. Provide staff support to engage Montana Bioscience Alliance locally to further a bioscience industry alliance that includes stakeholder representatives. X X New staff Biotechnology companies, MSU, and Gallatin College Organization Chair identified and first meeting held. Determine if there are gaps in the supply-chain requiring a specific company presence to bolster industry cluster strength. Partner with industry leaders to fill supply-chain gaps with known sites, market demand, and workforce opportunities. X X X Director / new staff Industry cluster organizations Identify company gaps internally and outreach strategy to address. √√ Pending private industry match, hire consultant to build basic website for talent attraction that supports all industries. Consider annual maintenance in budget and strategy to engage industry for use and upkeep. Based on meetings with business groups and BRE visits, determine key messages to attract talent. X X $15,000 + maintenance Industry cluster organizations Website created. Business attracts talent more easily. Glossary Strategy Overall document that guides economic development department workplan for up to five years. Goal An overarching principle that guides decision making.Objective Specific area of focus to implement goal.Action Specific task undertaken by staff to meet objective.Outcome Three Pillar Strategies Result of actions. Objective 1.3 Foster industry cluster collaboration Objective 1.4 Strategically market for talent attraction BOZEMAN ECONOMIC DEVELOPMENT STRATEGY (2017 to 2022) Objective 1.1 Develop strategic approach to business retention visits Objective 1.2 Invest in infrastructure and employment areas desired by traded sector business Business opportunities are fostered, innovation encouraged, training needs addressed, and barriers removed, all strengthening and growing industry base. Local industries grow with the removal of barriers to growth and nuturing of assets. Construction of infrastructure to employment areas desired by industry. 234 Business Growth Infrastructure Workforce Actions and Metrics 2017 2018 2019 Years 4 and 5 Staff and Resource Partner Metric Outcome Three Pillar Strategies BOZEMAN ECONOMIC DEVELOPMENT STRATEGY (2017 to 2022) √ Create a role for a specific person in ED to be first stop for permitting and process concierge. Introduce businesses to existing small business programs.X X X X New staff DDA, SCORE, SBA, County, Chamber, and similar partners Identify how many businesses supported and the services provided. Continue to proactively share GIS data and information to help business determine locations for new business to help determine where infrastructure investments should be made. X X X X Director / new staff City staff Identify how many business licenses issued annually in what sector and where. √ Collaborate with the start-up organizations to define roles and objectives. City’s role is to help promote awareness of programs. Promote existing programs through business license renewal or City mailings. X X X X Director / new staff Launchpad, Tech Link, Blue Ocean, Startup Bozeman, and other Document number of promotions provided for each start-up organization. Promote the MSU Blackstone Launchpad, which is an entrepreneur resource for students, alumni, and faculty offering coaching, ideation, and venture creation support. X X Director / new staff Startup Organization Highlight information in website. Collaborate with MSU Tech Link (formerly Tech Transfer Office) staff to foster partnerships with industry clusters. X X Director / new staff Startup Organization Highlight information in website. Promote the Blue Ocean Innovation Center, which is an existing private co- working space, as resource for startups.X X Director / new staff Startup Organization Highlight information in website. Promote Startup Bozeman as networking resource for startups. X X Director / new staff Startup Organization Highlight information in website. √√√ Establish economic development implementation group with County economic development, planning and public works staff.X X X X Director County Organize committee and hold at least two meetings. Consider how tourism funds can be incorporated into economic development efforts.X X X Director Convention and Tourism Bureau, Chamber, and other similar partners Meet with partners and identify potential projects for funding that support both tourism and economic development. Align economic development legislative agendas on a regional level for stronger voice and actions to preserve existing economic development tools and diversified funding stream for new opportunities. X X Director Chamber and other similar partners Prepare aligned legislative agenda items for focused efforts. Identify how industry leaders can specific support efforts. Support Gallatin College in finding a location for a 100,000 square foot facility and aligning regional funding.X X Director Gallatin College, County, Chamber, Prospera, and other similar partners Work with partners to determine specific college needs and fundraising strategy. Leverage established partnerships. √ Build project-based learning partnerships between industry and K-12 programs. Have students visit manufacturing facilities to make education relevant. X X X X Director / new staff Gallatin College, MSU, industry organizations Align with ongoing efforts to define and promote programs when visiting businesses. Continue to support Gallatin College and training programs by commuting needs of businesses. X X X X Director / new staff Gallatin College, industry organizations Document training needs identified in business visits and document follow up as to how need is met. Explore opportunity for a coding school. These are fully-immersive coding boot-camp programs and a part-time course designed to produce or enhance highly employable software developers ready to work in Montana’s thriving community of startups and tech businesses. X X Director / new staff Sofware companies, Gallatin College, MSU Based on business visits determine industry support and need. Document need and next steps with partners. √ Understand where different types of workforce lives and employment locations. Determine if there are commute barriers/opportunities.X X X X Project Manager Brokers, developers, engineers Map desired areas and if there are infrastructure gaps. Collaborate with transit authority to determine if routes and service are matching with employer and employee locations. X X X X Project Manager HRC, businesses Map employment and employee areas and desired transit routes. Determine opportunities for new services lines and necessary revenues. Support efforts to build higher-density housing near transit and active transportation routes.X X X X Project Manager Community Development Department Document and map new housing projects. Enhance bike and ped connections throughout city to offer low cost active transportation options.X X X X Project Manager Public works Document and map new projects. Objective 2.1 Provide resources to local businesses to help them grow and expand Objective 2.2 Support existing startup infrastructure Objective 3.1 Regional focus Objective 3.2 Workforce training partnerships Objective 3.3 Strategically invest Urban Renewal Business starts and grows more easily. Regional Connections Local workforce is strengthened with enhanced skills and training. Community has awareness of existing start-up community and more start-ups may emerge. City builds the type of place employees and employers want to live and work in. City and County partners effectively and proactively address complex issues facing the region. Support Business 235 City of Bozeman | Economic Development Strategy Update November 2016 Stakeholder List City Staff Craig Woolard, Public Works Shawn Kohtz, Public Works Chris Saunders, Community Development Natalie Meyer, Sustainability Mitchell Overton, Parks and Recreation State and Community Partners and Resource Providers Paul Reichert, the Prospera Business Network Rob Gilmore, Northern Rocky Mountain EDD Chris Naumann, Downtown Bozeman Partnership Karyl Tobel, Montana Department of Commerce Heather Grenier, Human Resource Development Council Tracy Menuez, Human Resource Development Council Jackie Haines, Human Resource Development Council Stephanie Gray, Gallatin College Bob Hietala, Gallatin College Warren Vaughan, Gallatin County Daryl Schliem, Bozeman Area Chamber of Commerce Les Craig, Blackstone LaunchPad and the Montana State University Innovation Campus; Anya Frey, Small Business Development Center at Montana State University Sarah Ferguson, Montana Community Development Corporation Luke Howard, Southwest Montana Building Industry Association Business Leaders Jim Ness, Big Sky Western Bank Bob Gieseke, Rocky Mountain Bank Matt Johnson, First Interstate Bank Andrew Hull, Elixiter KC Walsh, Simms Fishing Products Andy Wunch, Sitka Gear Rob Irizarry, Oracle Justin Bigert, Wisetail Ken Fichtler, Lattice Materials, Startup Bozeman Michael Monaghan, Beartooth Radio Cody Sauer, StartUp Bozeman Bob Wall, Iron Core Labs Robert Goodwin, Takeda Pharmaceuticals Larry Johnson, Montana Photonics Industry Alliance Pete Roos, Bridger Photonics Tim Sheehy, Bridger Aerospace 236 COMMISSION RESOLUTION NO. 4730 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ADOPTING THE 2016 ECONOMIC DEVELOPMENT STRATEGY UPDATE. WHEREAS, On August 3, 2009, via Commission Resolution 4195, the Bozeman City Commission (the "Commission") adopted Bozeman's 2009 Economic Development Plan (the 2009 Plan"); and WHEREAS, the 2009 Plan established an advisory committee, the Economic Development Council, to review the City of Bozeman's development review and permitting process, evaluate development issues and make recommendations for policy and procedure changes to the Commission; and WHEREAS, the 2009 Plan designated a qualified city employee with economic development responsibilities and a role as the community business advocate in coordination with the Economic Development Council on the implementation of the 2009 Plan; and WHEREAS, the recommended priorities identified in the 2009 Plan's Implementation Matrix that could be addressed and completed have been; and WHEREAS, local economic conditions present upon adoption of the 2009 Plan have changed; WHEREAS, the Economic Development Council led the effort to coordinate internal and external stakeholders and supports the 2016 Economic Development Strategy Update (the 112016 Update") and the recommendations contained therein; and WHEREAS, the Commission remains committed to facilitating mid- and high wage job growth and economic strength and diversification in the City and the region through updated and timely economic development planning, strategy and policy updates; and WHEREAS, the Commission supports the primary tenets of the 2016 Update: a) retention and growth of existing businesses, while welcoming and encouraging new businesses; and b) investments in infrastructure as a mechanism to drive economic development; and Page 1 of 3 237 Resolution 4730, Adoption ofthe City ofBozeman's 2016 Economic Development Strategy Update c) education and workforce development initiatives to provide businesses with qualified workers. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, that: Section 1 The 2016 Economic Development Strategy Update is hereby adopted and shall be as follows: See Exhibit A. Section 2 Effective Date. This resolution shall be in full force and effect upon passage. PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 14th day ofNovember, 2016. CARSON TAYLOR Mayor ATTEST: OF! BO ' ROBIN CRO1UdH A , City Clerk -- 3 C. u Page 2 of 3 238 Resolution 4730, Adoption ofthe City ofBozeman's 2016 Economic Development Strategy Update APPR VED AS T FORM: GREG kDELIVAN City Attorney Page 3 of3 239 Memorandum REPORT TO:City Commission FROM:Brit Fontenot, Economic Development Director SUBJECT:Authorize the City Manager to Sign a Task Order 4 for Economic and Planning Systems, Inc (EPS) - Update to the 2016 Economic Development Strategy MEETING DATE:December 14, 2021 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign a task order 4 for Economic and Planning Systems, Inc (EPS) - Update to the 2016 Economic Development Strategy. STRATEGIC PLAN:2.1 Business Growth: Support retention and growth of both the traded and local business sectors while welcoming and encouraging new and existing businesses, in coordination with the Economic Development Plan. BACKGROUND:See attached memo. UNRESOLVED ISSUES:None. ALTERNATIVES:As proposed by the Bozeman City Commission. FISCAL EFFECTS: The project is budgeted in the FY 22 Economic Development budget in the amount of $100,000. Task Order 4 defines the project total as up to $100,000. The proposed scope of work defines the project budget at $98,980. Attachments: CC Memo for EPS TO 4 EDS Update 12.05.21 FINAL.docx Attachment 1 EPS Task Order 4 Form EDS Update December 2021.pdf Attachment 2 213051_SOW_Economic Development Strategy Final 11-30-2021.pdf Attachment 3 EDS Update Community Engagement Plan 11- 24-2021 FINAL.pdf Attachment 4 Executed EPS PSA.pdf Report compiled on: December 1, 2021 1240 Commission Memorandum REPORT TO:Honorable Mayor and City Commission FROM:Brit Fontenot Economic Development Director SUBJECT:Task Order 4 with Economic and Planning Systems, Inc. (EPS) for the update of the 2016 Economic Development Strategy MEETING DATE:December 14, 2021 AGENDA ITEM TYPE:Consent RECOMMENDATION:Authorize the City Manager to Sign Task Order 4 with Economic and Planning Systems, Inc. (EPS) for the update of the 2016 Economic Development Strategy. BACKGROUND: In 2016 the City produced and economic development strategy to guide the activities of the Economic Development Department. When drafting the strategy in 2016, it was envisioned that this would be a 3 –5 year plan. Along with the strategy, the plan included a focus and definition of traded vs. local sector job growth, analyzed local sectors and recommended specific tasks for implementation. A link to the strategy is here: 2016 Economic Development Strategy . The City of Bozeman’s Economic Development Strategy rests on three Strategic Imperatives defined by the former Economic Development Council (EDC) include: 1.Support retention and growth of existing businesses, while welcoming and encouraging new businesses; 2.Invest in infrastructure as a mechanism to drive economic development; and 3.Support education and workforce development initiatives to provide businesses with qualified workers. In 2016, The EDC also created the Economic Development Vision for the community: 2241 “Our community strengthens and diversifies the local economy by supporting business sectors that create & sustain mid-to high-paying jobs, enhancing the high quality of life in the greater Bozeman area.” Guiding Economic Development Values/Principles include: 1.Strengthening and diversifying the local home-grown economy; 2.Increasing economic activity that improves our community’s prosperity; 3.Supporting innovation and encouraging growth in mid-to-high wage sectors; 4.Facilitating the creation of mid-to-high paying jobs/high quality employment to match the high quality of life; 5.Environmental responsibility; and 6.Intentional growth planning. Since the 2016 plan was adopted, the region has experienced significant changes including impacts from the Great Recession, a global pandemic, the great resignation, a re-focus on sustainability and equity, expansion of sectors in the region and a massive shift in the available workforce to meet the demands of growing businesses. The proposed update intends to evaluate and update current traded vs. local sector conditions and update the strategy while taking into account disruptive events over the past five years and include components of sustainability/resiliency and address equity issues. Examples of updates to the plan include an expansion to sector development initiatives to include additional high-growth sectors including health care, the film industry and quantum computing. Over the past 18-24 months, the importance of workforce development and regional economic partnerships is elevated and requires focused effort. Finally, continued infrastructure investment in targeted areas will add vibrancy, community and economic stability and continue to expand the tax base. Finally, in 2018, the City Commission adopted a Strategic Plan that envisions Bozeman remaining “a safe, inclusive community, fostering civic engagement and creativity, with a thriving diversified economy, a strong environmental ethic, and a high quality of life as our community grows and changes”. The principles imbedded in the 2016 Economic Development Strategy are fully incorporated into the Strategic Plan in the Innovative Economy section which reads: 2. An Innovative Economy We grow a diversified and innovative economy leveraging our natural amenities, skilled and creative people, and educational resources to generate economic opportunities. 3242 2.1 Business Growth -Support retention and growth of both the traded and localbusiness sectors while welcoming and encouraging new and existing businesses, in coordination with the Economic Development Plan. 2.2 Infrastructure Investments -Strategically invest in infrastructure as a mechanism to encourage economic development. a) Identify Commercial/Industrial Infrastructure Needs. Identify sites for new or redevelopment in areas that lack adequate infrastructure and develop new financing strategies to fund these investments. 2.3 Workforce Development -Support education and workforce development initiatives to improve the skills of our citizens. We are now closing in on the end of the 5th year using the plan. Over the last 5 years we have experienced significant changes to our economic, social and political landscape. A few of the significant events include the economic impacts of the COVID-19 virus on the global economy and workforce, a heightened awareness of diversity, equity and inclusion in our economic landscape and an ever increasing importance placed on the impacts of climate change on community sustainability and resiliency. The goal of this update is to refresh the strategy under our new normal and including elements that were not included in the 2016 strategy. FISCAL EFFECTS: The project is budgeted in the FY 22 Economic Development budget in the amount of $100,000. Task Order 4defines the project total as up to $100,000. The proposed scope of work defines the project budget at $98,980. ATTACHMENTS: 1. Task Order 4 with Economic and Planning Systems, Inc. 2. Economic Development Strategy Update Scope of Work 3. Economic Development Strategy Update Engagement Plan 4. Executed Professional Services Agreement and Term Contract with Economic and Planning Systems, Inc. 4243 City of Bozeman Term Contract with Economic & Planning Systems, Inc. Task Order Number 4: Economic Development Strategy Update PROJECT: Economic Development Strategy Update Issued under the authority of the City of Bozeman Professional Services Agreement Term Contract with Economic and Planning Systems, Inc. to support Economic Development and Community Housing programs. This Task Order is dated [ ] between the City of Bozeman Economic Development Department and Economic & Planning Systems, Inc. (EPS) (Contractor). The following representatives have been designated for the work performed under this Task Order: City: Brit Fontenot, Economic Development Director Contractor: Brian Duffany, Executive Vice President, Economic & Planning Systems SCOPE OF WORK: See attached Scope of Work. COMPENSATION: EPS will bill for its services on a time and materials basis with a project total not-to-exceed $100,000.00 (One hundred thousand dollars). The provisions of the Professional Services Agreement Term Contract shall govern the Work. IN WITNESS WHEREOF, the parties authorized to commit resources of the parties have executed this Task Order: City of Bozeman Economic & Planning Systems Jeff Mihelich Brian Duffany City Manager Executive Vice President ________________________________ Daniel R. Guimond, Principal 5244 213051_SOW_Economic Development Strategy Final 11-30-2021.docx S COPE OF W ORK To: Brit Fontenot, City of Bozeman From: Alisa Pyszka, Bridge Economic Development and Brian Duffany, Economic & Planning Systems Subject: Economic Development Strategy Scope of Work Date: November 2, 2021 The City of Bozeman Economic Development department intends to update its current strategy in response to significant economic impacts due to COVID and growing disparities in economic mobility for underserved and under-represented people. Furthermore, the City of Bozeman has recently revised the structure of various committees and boards providing policy direction on numerous issues impacting the city. For economic development, the department is now advised by one board that represents interests in: economic development; diversity, equity and inclusion (DEI); housing; and public art. Recognizing these significant issues, the following scope of work outlines how the consultant team will work with city staff to effectively engage city and regional stakeholders to update the economic development strategy. The strategy will ultimately guide the city with transparent actions that fosters equitable economic development that creates a resilient community with specific consideration to climate action. Task 1 - Kick-Off and Project Management To advance an economic development vision and strategy that truly resonates with the region, we recommend that the following committees are developed to facilitate the evaluation and feedback on consultant team recommendations. We will refine this approach and finalize the engagement plan for Task 3 in with staff. Core Committee (CC): This consists of approximately 2 core staff that will engage regularly with the consultant team. This core committee needs to include the staff person that will be ultimately responsible for implementing the strategy over the next several years. This key individual must be engaged from the outset of the project to build the relationships with the community that are necessary to foster ownership and follow-through on identified actions. 6245 Scope of Work: Economic Development Strategy Scope of Work Page | 2 Advisory Committee (AC): This consists of economic development stakeholders and practitioners that are currently implementing programs tied to workforce, entrepreneurship, etc., and will serve as a preliminary “sounding board” for recommendations that have been developed by the consultant team and core committee. They serve to provide recommendations for information presented to the Regional Leadership Committee. Members of the AC may be co-chairs of the RLC. Regional Leadership Committee (RLC): This group functions at the regional policy and leadership level that includes elected officials, university chancellors, etc. that serve as thought leaders and influencers of economic growth in the region. It could largely consist of the new Economic Vitality Board and economic development stakeholders. However, we recommend that this group should include “collaborative partners” that represent under-represented populations. By including them from the outset of the project and on this committee, they are an active partner in the development of the strategy and will provide meaningful input from individuals not always heard in the traditional economic development process. Task 1 Deliverables • Kick-off meeting with client • Community engagement plan and schedule Task 2. Conditions Assessment EPS will complete a quantitative analysis of local economic trends and competitive advantage, economic development assets and economic development conditions within the project area. The team will analyze publicly available data and review relevant research report findings. Regional demographic data will be compared with up to five peer regions, determined by the CC and consultant team, to provide context regarding the local strengths and weaknesses. The consultant team will also develop several Diversity, Equity and Inclusion (DEI) metrics to inform the strategy. These will include data points such as employment status, educational attainment, and incomes by race. We will also evaluate the characteristics of the workforce against the economic base and growing sectors to gauge potential mismatches between skills and access and the local economy. This will be informed from a combination of publish data sources and stakeholder interviews. Our team’s equity lens means that the priorities will also include systematic efforts to increase economic opportunities for all Bozeman residents. For example, supporting existing small businesses and the growth of new local businesses is critical to driving sustainable and equitable economic growth. We will analyze the strength of the small business ecosystem in terms of supporting diverse entrepreneurs. Focusing on small businesses within the city’s industries that have a competitive advantage will enhance their chance for success. This work will serve as the foundation for engagement in Task 3. Task 2 Deliverables • Coordination and review meetings with staff (CC) throughout the task • Conditions Assessment, as a Word document, that summarizes the project area’s local economic trends, economic development assets and economic development conditions 7246 Economic & Planning Systems, Inc. Page | 3 Task 3. Stakeholder Engagement It is our belief that each strategy must align with a community’s values and distinct culture to have meaningful results. For Bozeman, the three economic development strategic imperatives or values include: 1. Support retention and growth of existing businesses, while welcoming and encouraging new businesses 2. Invest in infrastructure as a mechanism to drive economic development. 3. Support education and workforce development initiatives to provide businesses with qualified workers. Stakeholder engagement is a critical element in the strategy development to hear consistent themes regarding barriers and opportunities. All stakeholder engagement will be grounded in the presentation of facts and findings determined in the preliminary work in Task 2. This approach will provide a foundation for feedback and more guided discussion. The consultant team will work with staff to develop meetings with a specific grouping of attendees (e.g. target industry cluster, economic development professionals, etc.) to gather more detailed information specific to their interests. This qualitative information will supplement the quantitative information to begin to guide the strategy. It is anticipated that these meetings will be in person. During the visit, the consultant team will also meet with the RLC and City Commission to outline the strategy development process and gather their initial feedback as well. Task 3 Deliverables • Up to five roundtable meetings with industry cluster businesses and community stakeholders • RLC meeting • City Commission meeting • Up to 6 individual follow-up meetings as necessary. • Summary of feedback Task 4. Economic Development Strategy Bridge will work with staff and community stakeholders to define a city vision, values and guiding principles. This definition is important for establishing a common definition of prosperity and provides a foundation for the goals and strategic objectives that will guide economic development for the Bozeman area over the next five years. The goals and objectives will be driven by the analysis completed during Task 2 and feedback from the AC and RLC. Our team’s equity lens means that the priorities will also include systematic efforts to reduce unemployment and increase incomes within the city. For example, supporting existing small businesses and the growth of new local businesses is critical to driving 8247 Scope of Work: Economic Development Strategy Scope of Work Page | 4 4 sustainable and equitable economic growth. In most cities, if every small business grew by just one employee, it could create enough employment opportunities for all unemployed residents in disadvantaged neighborhoods. Focusing on small businesses within the region’s sectors that have a competitive advantage will enhance their chance for success. The strategy goals and priorities will build on the project area’s strengths and opportunities and address the primary weaknesses and threats facing the area. Input from project staff and the RLC, in addition to our own research, will ensure the plan is consistent with relevant state and local economic development or workforce development strategies. Task 4 Deliverables • SWOT analysis • Coordination and review meetings with CC throughout the task • Summary of Vision Values, Guiding Principles, Key Findings, Goals and Objectives in PowerPoint presentation format. • Presentations to AC and RLC to approve vision, values, guiding principles. • Presentations to AC and RLC to goals and objectives. • Presentation to City Commission • Final Strategy document report summarizing Tasks 2-4 and subsequent recommendations. The report will be provided in Word formatted document. Task 5. Economic Development Action Plan Successful implementation of the plan depends on significant ownership from the stakeholders established at the outset of the plan development. A tactical action plan should be limited to those actions where a lead organization has come forward and committed to implementing the action (versus just identifying a lead organization not committed to action). In all of our recommended actions, we identify the need for a lead organization. Without an organization to own and champion a project, it will remain a concept on paper. As all communities face limited staffing and funds, the allocation of these resources must be deliberate. The plan serves as a tool to decide which new actions to green light. When a new action appropriately aligns with the plan's priorities, the data and regional support defined in the process are incredibly valuable in preparing grant documents to obtain the necessary funding to implement planned actions. 9248 Economic & Planning Systems, Inc. Page | 5 Task 5 Deliverables • A five-year action plan with identified lead organization, deliverable and timeline that implements the goals and objectives. • Coordination and review meetings with CC throughout the task • Presentations to AC and RLC to approve the action plan and performance measures. 10249 Scope of Work: Economic Development Strategy Scope of Work Page | 6 6 Budget Pyszka EPS PM EPS Analyst Hours Budget$200 $240 $135 by Task by Task Task 1. Kick-Off and Project Management 26 $5,200Kick-off meeting with client 2 0 0 2 $400 Finalize scope and engagement approach 4 0 0 4 $800Project management and client coordination 20 0 0 20 $4,000 Task 2. Conditions Assessment 136 $23,520 Demographics compared with peer regions 2 2 12 16 $2,500 LQ analysis 2 4 16 22 $3,520 Labor assessment 2 4 16 22 $3,520 Small Business Assessment 8 8 4 20 $4,060 DEI Metrics 2 4 16 22 $3,520 Summary Assessment 2 16 16 34 $6,400 Task 3. Stakeholder Engagement (in person visit)80 $17,120 Preparation for presentations and meetings 16 8 0 24 $5,120 Stakeholder Roundtables 16 8 0 24 $5,120 RLC Board Meeting 2 2 0 4 $880 City Commission Meeting 2 2 0 4 $880 Follow Up Virtual Stakeholder Meetings 8 4 0 12 $2,560 Summary of Engagement 8 4 0 12 $2,560 Task 4. Economic Development Strategy 162 $34,060 Draft vision, values and guiding principles 12 4 0 16 $3,360 Staff (CC) meeting 4 0 0 4 $800 AC meeting 4 0 0 4 $800 RLC meeting (virtual mtg)4 0 0 4 $800 Draft key findings, goals, objectives 12 4 0 16 $3,360 Staff (CC) meeting 4 0 0 4 $800 AC meeting 4 0 0 4 $800 RLC meeting (virtual mtg)4 0 0 4 $800 Draft Strategy Report 28 12 4 44 $9,020 Staff (CC) meeting 4 4 0 8 $1,760 AC meeting 4 4 0 8 $1,760 RLC meeting (virtual mtg)4 4 0 8 $1,760 City Commission Meeting (in person mtg)8 8 0 16 $3,520 Final Report 14 8 0 22 $4,720 Task 5. Economic Development Action Plan 72 $14,880 Draft Actions 18 4 0 22 $4,560 Stakeholder Meeting 8 4 0 12 $2,560 RLC Board Meeting 8 4 0 12 $2,560 Final Action Plan 6 0 0 6 $1,200 RLC Board Meeting 8 0 0 8 $1,600 Commission Meeting (AP in person mtg)12 0 0 12 $2,400 266 126 84 392 $53,200 $30,240 $11,340 $94,780 Fees $94,780Expenses Travel (2 people x 2 trips + 1 trip)$4,200Total Budget "not to exceed"$98,980 11250 Last Updated: 11/30/2021 1:59 PM 1 COMMUNITY ENGAGEMENT PLAN PROJECT TITLE: Economic Development Strategy Update PROJECT LEADS: Brit Fontenot - Economic Development Director community Engagement PURPOSE Community engagement is a critical element in the strategy development to hear consistent themes regarding barriers and opportunities in Bozeman. BACKGROUND: The City of Bozeman’s Economic Development Strategy rests on three Strategic Imperatives defined by the former Economic Development Council (EDC) include: 1. Support retention and growth of existing businesses, while welcoming and encouraging new businesses; 2. Invest in infrastructure as a mechanism to drive economic development; and 3. Support education and workforce development initiatives to provide businesses with qualified workers. The EDC also created the Economic Development Vision for the community: “Our community strengthens and diversifies the local economy by supporting business sectors that create & sustain mid-to high-paying jobs, enhancing the high quality of life in the greater Bozeman area.” Guiding Economic Development Values/Principles include: 1. Strengthening and diversifying the local home-grown economy; 2. Increasing economic activity that improves our community’s prosperity; 3. Supporting innovation and encouraging growth in mid-to-high wage sectors; 4. Facilitating the creation of mid-to-high paying jobs/high quality employment to match the high quality of life; 5. Environmental responsibility; and 6. Intentional growth planning. The inaugural Economic Development Plan was prepared by the Prospera Business Network and adopted by the Bozeman City Commission in 2009. The 2009 plan was very aspirational and encouraged, supported and recommended community partnerships in order to accomplish the modest goals of the plan. In November 2016, the City of Bozeman adopted a new 3- 5 year Economic Development Strategy to update and replace the 2009 plan. Along with the strategy, the update includes a focus and definition of traded vs. local sector job growth, analyzed local sectors and recommended specific tasks for implementation. 12251 Last Updated: 11/30/2021 1:59 PM 2 Since the 2016 plan was adopted, the region has experienced significant changes including the Great Recession, a global pandemic, a re-focus on sustainability and equity, expansion of sectors in the region and a massive shift in the available workforce to meet the demands of growing businesses. The proposed update intends to evaluate and update current traded vs. local sector conditions, update the strategy while taking into account events over the past five years and include components of sustainability/resiliency and address equity issues. Finally, in 2018, the City Commission adopted a Strategic Plan that envisions Bozeman remaining “a safe, inclusive community, fostering civic engagement and creativity, with a thriving diversified economy, a strong environmental ethic, and a high quality of life as our community grows and changes”. The principles imbedded in the 2016 Economic Development Strategy are fully incorporated into the Strategic Plan in the Innovative Economy section which reads: 2. An Innovative Economy We grow a diversified and innovative economy leveraging our natural amenities, skilled and creative people, and educational resources to generate economic opportunities. 2.1 Business Growth - Support retention and growth of both the traded and local business sectors while welcoming and encouraging new and existing businesses, in coordination with the Economic Development Plan. 2.2 Infrastructure Investments - Strategically invest in infrastructure as a mechanism to encourage economic development. a) Identify Commercial/Industrial Infrastructure Needs. Identify sites for new or redevelopment in areas that lack adequate infrastructure and develop new financing strategies to fund these investments. 2.3 Workforce Development - Support education and workforce development initiatives to improve the skills of our citizens. 13252 Last Updated: 11/30/2021 1:59 PM 3 2022 Economic Development Strategy Update This Community Engagement Plan is being prepared for the 2022 Economic Development Strategy Update (EDS). The EDS will take off from the previous work but take a broader look at the City and Greater Bozeman Region and incorporate economic and racial equity perspectives. The EDS is comprised of the following elements:  Economic Development Strategy – The document that outlines and furthers the City of Bozeman’s economic development efforts and is aligned with the City’s strategic goals, i.e. An Innovative Economy  Economic Development Action Plan – The portion of the Economic Development Strategy Update that identifies specific action steps  SWOT Analysis – SWOT is an acronym for [Economic] Strengths, Weaknesses, Opportunities and Threats analysis conducted as part of the strategy update.  Conditions Assessment – This assessment considers economic conditions on the ground in the region as of the time frame in which the strategy is being updated  Business or Industry Cluster or Sector – a geographic concentration of interconnected businesses, suppliers, and associated institutions in a particular field, i.e. the photonics cluster or sector. Key partners and interest groups Internal 1. Economic development team; 2. Consultant team; and 3. Community engagement. External 1. Local and regional economic development practitioners; 2. The Economic Vitality Board; 3. Private sector business representatives; 4. Minority business owners; and 5. Affordable housing and social service providers and advocates. These external partners will all comprise the Regional Leadership Council (RLC) that will provide guidance and feedback throughout the strategy development. More details on the RLC are outlined below Partners’ role in decision making process 1. Engage stakeholders on the Condition Assessment and SWOT analysis; 2. Identify barriers and opportunities for underrepresented groups to access opportunity and economic mobility; 14253 Last Updated: 11/30/2021 1:59 PM 4 3. Provide feedback and input on the vision, goals and objectives in the EDS; and 4. Provide feedback and guidance from the RLC and stakeholders on the appropriate method of weaving equity and sustainability/resiliency into the ED Strategy update. 5. Consulting partners on what economic development and prosperity look like in Bozeman from their unique perspectives. STEP IN DECISION MAKING PROCESS SPECTRUM LEVEL C.E. STATEMENT (leave empty if Spectrum Level is INFORM) Interest group or partner (ex. all or targeted) Define problem / opportunity Involve  Define a city vision, values and guiding principles for the EDS.  Establish a common definition of prosperity All Gather information Consult  Identify barriers and opportunities for underrepresented groups to access opportunity and economic mobility. RLC, community members, cluster representatives Establish decision criteria Inform Criteria used to establish vision, values, guiding principles will be determined by CC, EPS/Bridge through the Conditions Assessment and results from engagement All Develop alternatives Inform CC, EPS/Bridge team will develop the “alternatives” or draft goals and objectives for the EDS All 15254 Last Updated: 11/30/2021 1:59 PM 5 Evaluate alternatives Consult  Provide feedback and input on the goals and objectives in the EDS All Make decision Inform Economic Vitality Board will make recommendation to City Commission to adopt EDS All OVERALL PUBLIC INVOLVEMENT LEVEL: Consult, Involve and Collaborate GOAL FOR COMMUNITY ENGAGEMENT Update the City’s Economic Development Strategy by revisiting the three strategic imperatives to ensure that changing conditions in our community, equity, sustainability and resiliency are reflected in the new strategy OBJECTIVES – (SMART! Specific, Measurable, Attainable, Realistic, Timely) Stakeholder engagement is a critical element in the strategy development to hear consistent themes regarding barriers and opportunities. All stakeholder engagement will be grounded in 16255 Last Updated: 11/30/2021 1:59 PM 6 the presentation of facts and findings determined in the preliminary work. This approach will provide a foundation for feedback and more guided discussion. The consultant team will work with staff to develop meetings with a specific grouping of attendees (e.g. target industry cluster, economic development professionals, underserved, sustainability/resiliency, housing, etc.) to gather more detailed information specific to their interests. This qualitative information will supplement the quantitative information to begin to guide the strategy. We anticipate that these meetings will be in person. During the visit(s), staff and the consultant team will also meet with the Regional Leadership Committee (RLC) and the Bozeman City Commission, or individual Commissioners, to outline the strategy development process and gather their initial feedback as well. Proposed engagement includes: 1. Up to five roundtable meetings with industry cluster businesses and community stakeholders; 2. Up to two focus groups with housing advocates, affordable housing developers, and social service providers; 3. Meeting with City staff including, but not limited to, sustainability, public works, community development, strategic services and communication and engagement;. 4. RLC meeting; 5. City Commission or Commissioner meetings; 6. Up to 6 individual follow-up meetings as necessary; and 7. Summary of feedback. PUBLIC ENGAGEMENT STRATEGY This section summarizes CEP. An estimated meeting schedule is attached for planning purposes but may be adjusted over the course of the project. Phase I Timeline: Tasks 1-2 in Economic Development Strategy (EDS) December-January 2021-2022 Phase 1: In Phase I the Consultant Team will establish baseline information on the economy needed to inform the engagement process. We will also work with the Core Committee (City Staff) to form the Advisory Committees and Regional Leadership Committees. Prepare and Inform:  Committee member identification  Committee formation  Perform data gathering and analysis to inform committee members and participants in Phase II 17256 Last Updated: 11/30/2021 1:59 PM 7 Actions: o City and Consultant will work together to form the Advisory Committee (AC) and Regional Leadership Committee (RLC) Tools: o Personal contact and outreach to prospective committee members o Economic and demographic research, benchmarking against peer cities or regions. Phase II Timeline: February-March 2022 Tasks 3 and 4 of EDS Phase II: Involve and Consult This Phase will cover the bulk of the community engagement in the EDS. We will be engaging with a broad cross section of groups organized around the Guiding Principles. After the Task 3 engagement activities, we will develop draft strategies and policies for review by the AC and RLC. Actions:  Up to five roundtables with industry cluster businesses and community members  Up to two focus groups with housing and social services providers and advocates for low income and vulnerable populations.  Meeting with City staff including, but not limited to, sustainability, public works, community development, strategic services and communication and engagement;  RLC Meeting  City Commission Meeting  Up to 6 individual follow up meetings as necessary  Summary of engagement and feedback  Draft of Vision, Values, Guiding Principles, Key Findings, Goals and Objectives Tools:  Facilitated discussions  Focus groups  One-on-one follow up interviews Phase III Timeline: April-June 2022 Tasks 4 and 5 of EDS Phase III: Inform and Consult In Phase III the Consultant will revise the strategies and policies from the feedback from the Phase II engagement and work between the Consultant and Core Committee. We will ensure that the revised strategies and policies reflect input from the Phase II engagement, including input from vulnerable populations. The Consultant will inform the AC and RLC on the recommendations and consult them for feedback on the direction of the EDS. Actions:  Revised Vision, Values, Guiding Principles, Key Findings, Goals and Objectives 18257 Last Updated: 11/30/2021 1:59 PM 8  Presentations to AC and RLC to review and approve vision, values, guiding principles  Presentations to AC and RLC to review and approve goals and objectives  Presentation to City Commission  Final Strategy document report Tools:  Facilitated discussions with AC, RLC, and City Commission 19258 Last Updated: 11/30/2021 1:59 PM 9 TASK 2 & 3 – Conditions Assessment and Engagement CC (Consultants + Brit/David) AC (Co-Chairs of RLC – one private) RLC (Economic Vitality Board + stakeholders) Estimated Mtg. Date Topic Mtg Date Topic Mtg Date Topic 12/03  Bridge/EPS finalize draft peer regions and data points to start analysis  Review RLC list and AC members to finalize groups. 12/17 (client task) Finalize RLC and AC 1/07  EPS presents internal raw data on peers  Bridge provides stakeholder meeting list and invite language 1/10 (client task) Stakeholder meeting invites out 2/02 Draft RLC Presentation for AC review 2/07  Overview of Roles and Process  Draft RLC Presentation for AC review 2/14  RLC Role and Process  ED + traded sector defined  Strategy Framework  Peer regions, demographic data 2/14 -2/15 Participant Roundtables 2/15 City Commission Meeting 20259 Last Updated: 11/30/2021 1:59 PM 10 TASK 4 – Strategy CC (Consultants + Brit/David) AC (Co-Chairs of RLC – one private) RLC (Economic Vitality Board + participants) Mtg Date Topic Mtg Date Topic Mtg Date Topic 2/21 Debrief on Engagement Feedback 3/02 Vision, Values and Guiding Principles 3/07 Vision, Values and Guiding Principles 3/14 Vision, Values and Guiding Principles 3/30 Key Findings, Goals, and Objectives 4/04 Key Findings, Goals, and Objectives 4/11 Key Findings, Goals, and Objectives 4/22  Final Draft Strategy  Preliminary Action Ideas 4/27  Final Draft Strategy  Preliminary Action Ideas 5/16  Final Draft Strategy  Preliminary Action Ideas 5/17 City Commission Meeting 21260 Last Updated: 11/30/2021 1:59 PM 11 TASK 5 – Implementation CC (Consultants + Brit/David) AC (Co-Chairs of RLC – one private) RLC (Economic Vitality Board + participants) Mtg Date Topic Mtg Date Topic Mtg Date Topic 5/31 Draft Action Matrix 6/10 Draft Action Matrix 6/22 Draft Action Matrix 6/29 Final Action Matrix 7/08 Final Action Matrix 7/20 Final Action Matrix 22261 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 1 of 13 PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this 22nd day of June, 2021 (“Effective Date”), by and 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, ECONOMIC AND PLANNING SYSTEMS, INC., 730 17th Street, Suite 630, Denver, CO 80202, hereinafter referred to as “Contractor.” The City and Contractor may be referred to individually as “Party” and collectively as “Parties.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter this Agreement with Contractor to perform for City services described in the Scope of Services attached hereto as Exhibit A and by this reference made a part hereof. 2. Term/Effective Date: This Agreement is effective upon the Effective Date and will expire on the 30 day of June 2026, or the completion of any written Task Order initiated prior to June 30, 2026 unless earlier terminated in accordance with this Agreement. 3. Scope of Services: Contractor will perform the work and provide the services in accordance with the specific services and corresponding schedule as mutually agreed upon by City and Contractor and included in each individual Task Order executed under the authority of this Agreement. Task Orders shall be attached and made part of this Agreement. For conflicts between this Agreement and the Scope of Services, unless specifically provided otherwise, the Agreement governs. 4. Payment: The terms of compensation to Contractor shall be agreed upon and included in each Task Order. City agrees to pay Contractor the amount specified in the individual Task Orders. Any alteration or deviation from the described services that involves additional costs above the Agreement amount will be performed by Contractor after written request by the City, and will DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 23262 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 2 of 13 become an additional charge over and above the amount listed in the Scope of Services. The City must agree in writing upon any additional charges. 5. Contractor’s Representations: To induce City to enter into this Agreement, Contractor makes the following representations: a. Contractor has familiarized itself with the nature and extent of this Agreement, the Scope of Services, and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services. b. Contractor represents and warrants to City that it has the experience and ability to perform the services required by this Agreement; that it will perform the services in a professional, competent and timely manner and with diligence and skill; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this warranty. 6. Independent Contractor Status/Labor Relations: The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, Montana Code Annotated (MCA), and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 24263 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 3 of 13 specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue at no additional cost to City. Contractor shall indemnify, defend, and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes. 7. Indemnity/Waiver of Claims/Insurance: For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; or (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents. For the professional services rendered, to the fullest extent permitted by law, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the negligence or intentional misconduct of the Contractor or Contractor’s agents or employees. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the City as indemnitee(s) which would otherwise exist as to such indemnitee(s). Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. Should the City be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor’s applicable insurance DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 25264 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 4 of 13 policies required below, the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. In the event of an action filed against the City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. Contractor also waives any and all claims and recourse against the City, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for [City’s] own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. These obligations shall survive termination of this Agreement and the services performed hereunder. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage 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 Contractor in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in this Section. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City. Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows: • Workers’ Compensation – statutory; • Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; • Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; • Automobile Liability - $1,000,000 property damage/bodily injury per accident; and • Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate. The above amounts shall be exclusive of defense costs. The City shall be endorsed as an additional or named insured on a primary non-contributory basis on both the Commercial General DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 26265 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 5 of 13 and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non-renewal. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. 8. Termination for Contractor’s Fault: a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, the City may, by written notice, terminate this Agreement and the Contractor’s right to proceed with all or any part of the work (“Termination Notice Due to Contractor’s Fault”). The City may then take over the work and complete it, either with its own resources or by re-letting the contract to any other third party. b. In the event of a termination pursuant to this Section 8, Contractor shall be entitled to payment only for those services Contractor actually rendered. c. Any termination provided for by this Section 8 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. d. In the event of termination under this Section 8, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 9. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease performance under this Agreement, the City may terminate this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 27266 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 6 of 13 b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease performance under this Agreement and make every reasonable effort to refrain from continuing work, incurring additional expenses or costs under this Agreement and shall immediately cancel all existing orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as may be necessary to preserve, protect, and maintain work already completed or immediately in progress. c. In the event of a termination pursuant to this Section 9, Contractor is entitled to payment only for those services Contractor actually rendered on or before the receipt of the Notice of Termination for City’s Convenience. d. The compensation described in Section 9(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 10. Limitation on Contractor’s Damages; Time for Asserting Claim: a. In the event of a claim for damages by Contractor under this Agreement, Contractor’s damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. b. In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 11. Representatives and Notices: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be David Fine, Urban Renewal Program Manager, or such other individual as City shall designate in writing. Whenever approval or authorization from or DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 28267 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 7 of 13 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, Contractor 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. Contractor’s Representative: The Contractor’s Representative for the purpose of this Agreement shall be Brian Duffany, Executive Vice President, or such other individual as Contractor shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed to Contractor’s Representative; provided, however, that in exigent circumstances when Contractor’s Representative is not available, City may direct its direction or communication to other designated Contractor 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. 12. Permits: Contractor 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. 13 Laws and Regulations: Contractor 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 non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 14. Nondiscrimination and Equal Pay: The Contractor agrees that all hiring by Contractor of persons performing this Agreement shall be on the basis of merit and qualifications. DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 29268 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 8 of 13 The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor 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. Contractor 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). Contractor 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. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 15. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing its employees and agents in safe work practices. 16. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of the City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 30269 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 9 of 13 17. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor shall 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 the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 18. 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. 19. 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. 20. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 21. 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. 22. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 31270 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 10 of 13 23. 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. 24. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 25. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 26. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 27. 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. 28. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 29. 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. 30. 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. DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 32271 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 11 of 13 **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written or as recorded in an electronic signature. CITY OF BOZEMAN, MONTANA ____________________________________ CONTRACTOR (Type Name Above) By________________________________ By__________________________________ Jeff Mihelich, City Manager Print Name: ___________________________ Print Title: ____________________________ APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 Economic & Planning Systems, Inc. Principal Dan Guimond 33272 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 12 of 13 Exhibit “A” SCOPE OF SERVICES The selected consultant may assist the City on any task defined by the general scope of work as directed by written task order. A) Economic Development Strategy and Implementation • Provide strategic, data-driven advice regarding the feasibility of various development types and projects and provide guidance on the tools, public infrastructure, programs, partnerships, incentives and policies that can stimulate the desired development. • Background and experience in analyzing regulations and development codes and policies to support strategic objectives • Commercial and Mixed-Use District Development strategies and implementation. • Perform market analysis to support policy and land use decisions. • Create strategic Economic Development Strategies and Action Plans • Create data driven marking materials that reflect community assets to welcome talent and business for key clusters B) Economic Development and Real Estate Financial Analysis • Provide robust and data rich assessments of Bozeman and Gallatin County’s real estate and housing market. o Regional growth trends related to population, employment including tracking key employment sectiors, and demographic data o For-sale Market o Rental Market o Commercial and Residential Market Trends o Affordability Indicators • Provide data driven analysis to support economic development strategy and implementation of that strategy. C) Public-Private Partnerships • Assist in negotiating and structuring public-private partnerships that are beneficial to the City of Bozeman. o Provide guidance on the development of shared structured and surface parking facilities. o Provide guidance on attracting and facilitating mixed use investment in key districts. o Provide guidance on the development of workforce and affordable housing projects, deal structures and incentives • Provide robust and detailed analysis and financial pro formas to examine the financial feasibility of specific projects and provide gap financing analysis to right size economic development incentives. • Project TIF cash flows based on existing projects and projected projects to assist with obtaining financing, including bonding. DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 34273 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 13 of 13 D) Building and Development Conceptualization • Provide ongoing assistance in developing Bozeman’s mixed-use districts as a specific kinds of places by working with property owners and developers to advance building concepts and formats that are consistent with the aspirations of Bozeman’s guiding plans, while staying feasible in Bozeman’s real estate market. The firm or team will demonstrate competency in urban and landscape planning and design and be able to produce visioning documents that show the integration of plans and projects with the built environment. DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 35274 Meeting Date in Red indicates in person meeting with consultant team December 15, 2021 1 Conditions Assessment and Engagement CC (Consultants + Brit/David) AC (Co-Chairs of RLC – one private) RLC (Economic Vitality Board + stakeholders) Mtg Date Topic Mtg Date Topic Mtg Date Topic 1/03 • Kick-off meeting: review proposed peer regions and data points to start analysis • Review final RLC and AC list 1/05 EVB meeting 1/25 • EPS presents internal raw data on peers • Bridge provides stakeholder meeting list and invite language 1/27 (client task) Stakeholder meeting invites out 2/07 Draft RLC Presentation for AC review 2/14 • Overview of Roles and Process • Draft RLC Presentation for AC review 2/21 • RLC Role and Process • ED + traded sector defined • Strategy Framework • Peer regions, demographic data 2/21 - 2/22 Stakeholder Roundtables 2/22 City Commission Meeting 275 Meeting Date in Red indicates in person meeting with consultant team December 15, 2021 2 Strategy CC (Consultants + Brit/David) AC (Co-Chairs of RLC – one private) RLC (Economic Vitality Board + stakeholders) Mtg Date Topic Mtg Date Topic Mtg Date Topic 3/02 Debrief on Engagement Feedback 3/07 Vision, Values and Guiding Principles 3/11 Vision, Values and Guiding Principles 3/14-18 BZN Spring Break 3/21-25 PDX Spring Break 3/28-4/01 CO Spring Break 3/25 Vision, Values and Guiding Principles 4/15 Key Findings, Goals, and Objectives 4/20 Key Findings, Goals, and Objectives 4/27 Key Findings, Goals, and Objectives 5/20 Draft Strategy and Preliminary Action Ideas 5/26 Draft Strategy and Preliminary Action Ideas 5/27-31 Memorial Day 6/13-16 AP out 6/20 Draft Strategy and Preliminary Action Ideas 6/21 City Commission Meeting 276 Meeting Date in Red indicates in person meeting with consultant team December 15, 2021 3 Implementation CC (Consultants + Brit/David) AC (Co-Chairs of RLC – one private) RLC (Economic Vitality Board + stakeholders) Mtg Date Topic Mtg Date Topic Mtg Date Topic 6/30 Draft Action Matrix 7/07 Draft Action Matrix 7/15 Draft Action Matrix 8/03 Final Action Matrix 8/10 Final Action Matrix 8/19 Final Action Matrix 277 Memorandum REPORT TO:Economic Vitality Board FROM:Brit Fontenot, Economic Development Director SUBJECT:Appoint up to three (3) Member(s) to represent the Economic Vitality Board on the Regional Leadership Committee (RLC) for the Economic Developemt Strategy update. MEETING DATE:January 5, 2022 AGENDA ITEM TYPE:Citizen Advisory Board/Commission RECOMMENDATION:I move to appoint [up to three (3) member(s)] to represent the Economic Vitality Board on the Regional Leadership Committee (RLC) for the Economic Developemt Strategy update. STRATEGIC PLAN:1.2 Community Engagement: Broaden and deepen engagement of the community in city government, innovating methods for inviting input from the community and stakeholders. BACKGROUND: In 2016 the City produced and economic development strategy to guide the activities of the Economic Development Department. When drafting the strategy in 2016, it was envisioned that this would be a 3 – 5 year plan. Along with the strategy, the plan included a focus and definition of traded vs. local sector job growth, analyzed local sectors and recommended specific tasks for implementation. The City of Bozeman’s Economic Development Strategy rests on three Strategic Imperatives defined by the former Economic Development Council (EDC) include: 1. Support retention and growth of existing businesses, while welcoming and encouraging new businesses; 2. Invest in infrastructure as a mechanism to drive economic development; and 3. Support education and workforce development initiatives to provide businesses with qualified workers. In 2016, The EDC also created the Economic Development Vision for the community: “Our community strengthens and diversifies the local economy by supporting business sectors that create & sustain mid-to high-paying jobs, enhancing the 278 high quality of life in the greater Bozeman area.” Guiding Economic Development Values/Principles include: 1. Strengthening and diversifying the local home-grown economy; 2. Increasing economic activity that improves our community’s prosperity; 3. Supporting innovation and encouraging growth in mid-to-high wage sectors; 4. Facilitating the creation of mid-to-high paying jobs/high quality employment to match the high quality of life; 5. Environmental responsibility; and 6. Intentional growth planning. Since the 2016 plan was adopted, the region has experienced significant changes including impacts from the Great Recession, a global pandemic, the great resignation, a re-focus on sustainability and equity, expansion of sectors in the region and a massive shift in the available workforce to meet the demands of growing businesses. The proposed update intends to evaluate and update current traded vs. local sector conditions and update the strategy while taking into account disruptive events over the past five years and include components of sustainability/resiliency and address equity issues. Examples of updates to the plan include an expansion to sector development initiatives to include additional high-growth sectors including health care, the film industry and quantum computing. Over the past 18-24 months, the importance of workforce development and regional economic partnerships is elevated and requires focused effort. Finally, continued infrastructure investment in targeted areas will add vibrancy, community and economic stability and continue to expand the tax base. Finally, in 2018, the City Commission adopted a Strategic Plan that envisions Bozeman remaining “a safe, inclusive community, fostering civic engagement and creativity, with a thriving diversified economy, a strong environmental ethic, and a high quality of life as our community grows and changes”. The principles imbedded in the 2016 Economic Development Strategy are fully incorporated into the Strategic Plan in the Innovative Economy section which reads: 2. An Innovative Economy We grow a diversified and innovative economy leveraging our natural amenities, skilled and creative people, and educational resources to generate economic opportunities. 2.1 Business Growth - Support retention and growth of both the traded and local business sectors while welcoming and encouraging new and existing businesses, in coordination with the Economic Development Plan. 2.2 Infrastructure Investments - Strategically invest in infrastructure as a 279 mechanism to encourage economic development. 1. a) Identify Commercial/Industrial Infrastructure Needs. Identify sites for new or redevelopment in areas that lack adequate infrastructure and develop new financing strategies to fund these investments. 2.3 Workforce Development - Support education and workforce development initiatives to improve the skills of our citizens. We are now closing in on the end of the 5 th year using the plan. Over the last 5 years we have experienced significant changes to our economic, social and political landscape. A few of the significant events include the economic impacts of the COVID-19 virus on the global economy and workforce, a heightened awareness of diversity, equity and inclusion in our economic landscape and an ever increasing importance placed on the impacts of climate change on community sustainability and resiliency. The goal of this update is to refresh the strategy under our new normal and including elements that were not included in the 2016 strategy. The update includes an engagement plan and scope of work outlining how information and data will be gathered throughout the community. Part of this work will include the establishment of a few teams to engage the public and the process. Establishment of the Regional Leadership Committee (RLC) includes the appointment of up to three (3) members of the EV Board to the RLC. The Goal of including EV Board members in the RLC is two-fold; 1) engage in the process and bring EV Board expertise and interest to the team and 2) report on the progress of the ED Strategy update to the EV Board. UNRESOLVED ISSUES:None at this time. ALTERNATIVES:As proposed by the Economic Vitality Board. FISCAL EFFECTS:None at this time. Attachments: Task Order 4 - Update of the EDS - 12.14.21.pdf BZN ED Strategy Milestones.pdf Bozeman ED Strategy Update_11-2016_Final v 2.pdf Report compiled on: December 23, 2021 280 Memorandum REPORT TO:City Commission FROM:Brit Fontenot, Economic Development Director SUBJECT:Authorize the City Manager to Sign a Task Order 4 for Economic and Planning Systems, Inc (EPS) - Update to the 2016 Economic Development Strategy MEETING DATE:December 14, 2021 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign a task order 4 for Economic and Planning Systems, Inc (EPS) - Update to the 2016 Economic Development Strategy. STRATEGIC PLAN:2.1 Business Growth: Support retention and growth of both the traded and local business sectors while welcoming and encouraging new and existing businesses, in coordination with the Economic Development Plan. BACKGROUND:See attached memo. UNRESOLVED ISSUES:None. ALTERNATIVES:As proposed by the Bozeman City Commission. FISCAL EFFECTS: The project is budgeted in the FY 22 Economic Development budget in the amount of $100,000. Task Order 4 defines the project total as up to $100,000. The proposed scope of work defines the project budget at $98,980. Attachments: CC Memo for EPS TO 4 EDS Update 12.05.21 FINAL.docx Attachment 1 EPS Task Order 4 Form EDS Update December 2021.pdf Attachment 2 213051_SOW_Economic Development Strategy Final 11-30-2021.pdf Attachment 3 EDS Update Community Engagement Plan 11- 24-2021 FINAL.pdf Attachment 4 Executed EPS PSA.pdf Report compiled on: December 1, 2021 1281 Commission Memorandum REPORT TO:Honorable Mayor and City Commission FROM:Brit Fontenot Economic Development Director SUBJECT:Task Order 4 with Economic and Planning Systems, Inc. (EPS) for the update of the 2016 Economic Development Strategy MEETING DATE:December 14, 2021 AGENDA ITEM TYPE:Consent RECOMMENDATION:Authorize the City Manager to Sign Task Order 4 with Economic and Planning Systems, Inc. (EPS) for the update of the 2016 Economic Development Strategy. BACKGROUND: In 2016 the City produced and economic development strategy to guide the activities of the Economic Development Department. When drafting the strategy in 2016, it was envisioned that this would be a 3 –5 year plan. Along with the strategy, the plan included a focus and definition of traded vs. local sector job growth, analyzed local sectors and recommended specific tasks for implementation. A link to the strategy is here: 2016 Economic Development Strategy . The City of Bozeman’s Economic Development Strategy rests on three Strategic Imperatives defined by the former Economic Development Council (EDC) include: 1.Support retention and growth of existing businesses, while welcoming and encouraging new businesses; 2.Invest in infrastructure as a mechanism to drive economic development; and 3.Support education and workforce development initiatives to provide businesses with qualified workers. In 2016, The EDC also created the Economic Development Vision for the community: 2282 “Our community strengthens and diversifies the local economy by supporting business sectors that create & sustain mid-to high-paying jobs, enhancing the high quality of life in the greater Bozeman area.” Guiding Economic Development Values/Principles include: 1.Strengthening and diversifying the local home-grown economy; 2.Increasing economic activity that improves our community’s prosperity; 3.Supporting innovation and encouraging growth in mid-to-high wage sectors; 4.Facilitating the creation of mid-to-high paying jobs/high quality employment to match the high quality of life; 5.Environmental responsibility; and 6.Intentional growth planning. Since the 2016 plan was adopted, the region has experienced significant changes including impacts from the Great Recession, a global pandemic, the great resignation, a re-focus on sustainability and equity, expansion of sectors in the region and a massive shift in the available workforce to meet the demands of growing businesses. The proposed update intends to evaluate and update current traded vs. local sector conditions and update the strategy while taking into account disruptive events over the past five years and include components of sustainability/resiliency and address equity issues. Examples of updates to the plan include an expansion to sector development initiatives to include additional high-growth sectors including health care, the film industry and quantum computing. Over the past 18-24 months, the importance of workforce development and regional economic partnerships is elevated and requires focused effort. Finally, continued infrastructure investment in targeted areas will add vibrancy, community and economic stability and continue to expand the tax base. Finally, in 2018, the City Commission adopted a Strategic Plan that envisions Bozeman remaining “a safe, inclusive community, fostering civic engagement and creativity, with a thriving diversified economy, a strong environmental ethic, and a high quality of life as our community grows and changes”. The principles imbedded in the 2016 Economic Development Strategy are fully incorporated into the Strategic Plan in the Innovative Economy section which reads: 2. An Innovative Economy We grow a diversified and innovative economy leveraging our natural amenities, skilled and creative people, and educational resources to generate economic opportunities. 3283 2.1 Business Growth -Support retention and growth of both the traded and localbusiness sectors while welcoming and encouraging new and existing businesses, in coordination with the Economic Development Plan. 2.2 Infrastructure Investments -Strategically invest in infrastructure as a mechanism to encourage economic development. a) Identify Commercial/Industrial Infrastructure Needs. Identify sites for new or redevelopment in areas that lack adequate infrastructure and develop new financing strategies to fund these investments. 2.3 Workforce Development -Support education and workforce development initiatives to improve the skills of our citizens. We are now closing in on the end of the 5th year using the plan. Over the last 5 years we have experienced significant changes to our economic, social and political landscape. A few of the significant events include the economic impacts of the COVID-19 virus on the global economy and workforce, a heightened awareness of diversity, equity and inclusion in our economic landscape and an ever increasing importance placed on the impacts of climate change on community sustainability and resiliency. The goal of this update is to refresh the strategy under our new normal and including elements that were not included in the 2016 strategy. FISCAL EFFECTS: The project is budgeted in the FY 22 Economic Development budget in the amount of $100,000. Task Order 4defines the project total as up to $100,000. The proposed scope of work defines the project budget at $98,980. ATTACHMENTS: 1. Task Order 4 with Economic and Planning Systems, Inc. 2. Economic Development Strategy Update Scope of Work 3. Economic Development Strategy Update Engagement Plan 4. Executed Professional Services Agreement and Term Contract with Economic and Planning Systems, Inc. 4284 City of Bozeman Term Contract with Economic & Planning Systems, Inc. Task Order Number 4: Economic Development Strategy Update PROJECT: Economic Development Strategy Update Issued under the authority of the City of Bozeman Professional Services Agreement Term Contract with Economic and Planning Systems, Inc. to support Economic Development and Community Housing programs. This Task Order is dated [ ] between the City of Bozeman Economic Development Department and Economic & Planning Systems, Inc. (EPS) (Contractor). The following representatives have been designated for the work performed under this Task Order: City: Brit Fontenot, Economic Development Director Contractor: Brian Duffany, Executive Vice President, Economic & Planning Systems SCOPE OF WORK: See attached Scope of Work. COMPENSATION: EPS will bill for its services on a time and materials basis with a project total not-to-exceed $100,000.00 (One hundred thousand dollars). The provisions of the Professional Services Agreement Term Contract shall govern the Work. IN WITNESS WHEREOF, the parties authorized to commit resources of the parties have executed this Task Order: City of Bozeman Economic & Planning Systems Jeff Mihelich Brian Duffany City Manager Executive Vice President ________________________________ Daniel R. Guimond, Principal 5285 213051_SOW_Economic Development Strategy Final 11-30-2021.docx S COPE OF W ORK To: Brit Fontenot, City of Bozeman From: Alisa Pyszka, Bridge Economic Development and Brian Duffany, Economic & Planning Systems Subject: Economic Development Strategy Scope of Work Date: November 2, 2021 The City of Bozeman Economic Development department intends to update its current strategy in response to significant economic impacts due to COVID and growing disparities in economic mobility for underserved and under-represented people. Furthermore, the City of Bozeman has recently revised the structure of various committees and boards providing policy direction on numerous issues impacting the city. For economic development, the department is now advised by one board that represents interests in: economic development; diversity, equity and inclusion (DEI); housing; and public art. Recognizing these significant issues, the following scope of work outlines how the consultant team will work with city staff to effectively engage city and regional stakeholders to update the economic development strategy. The strategy will ultimately guide the city with transparent actions that fosters equitable economic development that creates a resilient community with specific consideration to climate action. Task 1 - Kick-Off and Project Management To advance an economic development vision and strategy that truly resonates with the region, we recommend that the following committees are developed to facilitate the evaluation and feedback on consultant team recommendations. We will refine this approach and finalize the engagement plan for Task 3 in with staff. Core Committee (CC): This consists of approximately 2 core staff that will engage regularly with the consultant team. This core committee needs to include the staff person that will be ultimately responsible for implementing the strategy over the next several years. This key individual must be engaged from the outset of the project to build the relationships with the community that are necessary to foster ownership and follow-through on identified actions. 6286 Scope of Work: Economic Development Strategy Scope of Work Page | 2 Advisory Committee (AC): This consists of economic development stakeholders and practitioners that are currently implementing programs tied to workforce, entrepreneurship, etc., and will serve as a preliminary “sounding board” for recommendations that have been developed by the consultant team and core committee. They serve to provide recommendations for information presented to the Regional Leadership Committee. Members of the AC may be co-chairs of the RLC. Regional Leadership Committee (RLC): This group functions at the regional policy and leadership level that includes elected officials, university chancellors, etc. that serve as thought leaders and influencers of economic growth in the region. It could largely consist of the new Economic Vitality Board and economic development stakeholders. However, we recommend that this group should include “collaborative partners” that represent under-represented populations. By including them from the outset of the project and on this committee, they are an active partner in the development of the strategy and will provide meaningful input from individuals not always heard in the traditional economic development process. Task 1 Deliverables • Kick-off meeting with client • Community engagement plan and schedule Task 2. Conditions Assessment EPS will complete a quantitative analysis of local economic trends and competitive advantage, economic development assets and economic development conditions within the project area. The team will analyze publicly available data and review relevant research report findings. Regional demographic data will be compared with up to five peer regions, determined by the CC and consultant team, to provide context regarding the local strengths and weaknesses. The consultant team will also develop several Diversity, Equity and Inclusion (DEI) metrics to inform the strategy. These will include data points such as employment status, educational attainment, and incomes by race. We will also evaluate the characteristics of the workforce against the economic base and growing sectors to gauge potential mismatches between skills and access and the local economy. This will be informed from a combination of publish data sources and stakeholder interviews. Our team’s equity lens means that the priorities will also include systematic efforts to increase economic opportunities for all Bozeman residents. For example, supporting existing small businesses and the growth of new local businesses is critical to driving sustainable and equitable economic growth. We will analyze the strength of the small business ecosystem in terms of supporting diverse entrepreneurs. Focusing on small businesses within the city’s industries that have a competitive advantage will enhance their chance for success. This work will serve as the foundation for engagement in Task 3. Task 2 Deliverables • Coordination and review meetings with staff (CC) throughout the task • Conditions Assessment, as a Word document, that summarizes the project area’s local economic trends, economic development assets and economic development conditions 7287 Economic & Planning Systems, Inc. Page | 3 Task 3. Stakeholder Engagement It is our belief that each strategy must align with a community’s values and distinct culture to have meaningful results. For Bozeman, the three economic development strategic imperatives or values include: 1. Support retention and growth of existing businesses, while welcoming and encouraging new businesses 2. Invest in infrastructure as a mechanism to drive economic development. 3. Support education and workforce development initiatives to provide businesses with qualified workers. Stakeholder engagement is a critical element in the strategy development to hear consistent themes regarding barriers and opportunities. All stakeholder engagement will be grounded in the presentation of facts and findings determined in the preliminary work in Task 2. This approach will provide a foundation for feedback and more guided discussion. The consultant team will work with staff to develop meetings with a specific grouping of attendees (e.g. target industry cluster, economic development professionals, etc.) to gather more detailed information specific to their interests. This qualitative information will supplement the quantitative information to begin to guide the strategy. It is anticipated that these meetings will be in person. During the visit, the consultant team will also meet with the RLC and City Commission to outline the strategy development process and gather their initial feedback as well. Task 3 Deliverables • Up to five roundtable meetings with industry cluster businesses and community stakeholders • RLC meeting • City Commission meeting • Up to 6 individual follow-up meetings as necessary. • Summary of feedback Task 4. Economic Development Strategy Bridge will work with staff and community stakeholders to define a city vision, values and guiding principles. This definition is important for establishing a common definition of prosperity and provides a foundation for the goals and strategic objectives that will guide economic development for the Bozeman area over the next five years. The goals and objectives will be driven by the analysis completed during Task 2 and feedback from the AC and RLC. Our team’s equity lens means that the priorities will also include systematic efforts to reduce unemployment and increase incomes within the city. For example, supporting existing small businesses and the growth of new local businesses is critical to driving 8288 Scope of Work: Economic Development Strategy Scope of Work Page | 4 4 sustainable and equitable economic growth. In most cities, if every small business grew by just one employee, it could create enough employment opportunities for all unemployed residents in disadvantaged neighborhoods. Focusing on small businesses within the region’s sectors that have a competitive advantage will enhance their chance for success. The strategy goals and priorities will build on the project area’s strengths and opportunities and address the primary weaknesses and threats facing the area. Input from project staff and the RLC, in addition to our own research, will ensure the plan is consistent with relevant state and local economic development or workforce development strategies. Task 4 Deliverables • SWOT analysis • Coordination and review meetings with CC throughout the task • Summary of Vision Values, Guiding Principles, Key Findings, Goals and Objectives in PowerPoint presentation format. • Presentations to AC and RLC to approve vision, values, guiding principles. • Presentations to AC and RLC to goals and objectives. • Presentation to City Commission • Final Strategy document report summarizing Tasks 2-4 and subsequent recommendations. The report will be provided in Word formatted document. Task 5. Economic Development Action Plan Successful implementation of the plan depends on significant ownership from the stakeholders established at the outset of the plan development. A tactical action plan should be limited to those actions where a lead organization has come forward and committed to implementing the action (versus just identifying a lead organization not committed to action). In all of our recommended actions, we identify the need for a lead organization. Without an organization to own and champion a project, it will remain a concept on paper. As all communities face limited staffing and funds, the allocation of these resources must be deliberate. The plan serves as a tool to decide which new actions to green light. When a new action appropriately aligns with the plan's priorities, the data and regional support defined in the process are incredibly valuable in preparing grant documents to obtain the necessary funding to implement planned actions. 9289 Economic & Planning Systems, Inc. Page | 5 Task 5 Deliverables • A five-year action plan with identified lead organization, deliverable and timeline that implements the goals and objectives. • Coordination and review meetings with CC throughout the task • Presentations to AC and RLC to approve the action plan and performance measures. 10290 Scope of Work: Economic Development Strategy Scope of Work Page | 6 6 Budget Pyszka EPS PM EPS Analyst Hours Budget$200 $240 $135 by Task by Task Task 1. Kick-Off and Project Management 26 $5,200Kick-off meeting with client 2 0 0 2 $400 Finalize scope and engagement approach 4 0 0 4 $800Project management and client coordination 20 0 0 20 $4,000 Task 2. Conditions Assessment 136 $23,520 Demographics compared with peer regions 2 2 12 16 $2,500 LQ analysis 2 4 16 22 $3,520 Labor assessment 2 4 16 22 $3,520 Small Business Assessment 8 8 4 20 $4,060 DEI Metrics 2 4 16 22 $3,520 Summary Assessment 2 16 16 34 $6,400 Task 3. Stakeholder Engagement (in person visit)80 $17,120 Preparation for presentations and meetings 16 8 0 24 $5,120 Stakeholder Roundtables 16 8 0 24 $5,120 RLC Board Meeting 2 2 0 4 $880 City Commission Meeting 2 2 0 4 $880 Follow Up Virtual Stakeholder Meetings 8 4 0 12 $2,560 Summary of Engagement 8 4 0 12 $2,560 Task 4. Economic Development Strategy 162 $34,060 Draft vision, values and guiding principles 12 4 0 16 $3,360 Staff (CC) meeting 4 0 0 4 $800 AC meeting 4 0 0 4 $800 RLC meeting (virtual mtg)4 0 0 4 $800 Draft key findings, goals, objectives 12 4 0 16 $3,360 Staff (CC) meeting 4 0 0 4 $800 AC meeting 4 0 0 4 $800 RLC meeting (virtual mtg)4 0 0 4 $800 Draft Strategy Report 28 12 4 44 $9,020 Staff (CC) meeting 4 4 0 8 $1,760 AC meeting 4 4 0 8 $1,760 RLC meeting (virtual mtg)4 4 0 8 $1,760 City Commission Meeting (in person mtg)8 8 0 16 $3,520 Final Report 14 8 0 22 $4,720 Task 5. Economic Development Action Plan 72 $14,880 Draft Actions 18 4 0 22 $4,560 Stakeholder Meeting 8 4 0 12 $2,560 RLC Board Meeting 8 4 0 12 $2,560 Final Action Plan 6 0 0 6 $1,200 RLC Board Meeting 8 0 0 8 $1,600 Commission Meeting (AP in person mtg)12 0 0 12 $2,400 266 126 84 392 $53,200 $30,240 $11,340 $94,780 Fees $94,780Expenses Travel (2 people x 2 trips + 1 trip)$4,200Total Budget "not to exceed"$98,980 11291 Last Updated: 11/30/2021 1:59 PM 1 COMMUNITY ENGAGEMENT PLAN PROJECT TITLE: Economic Development Strategy Update PROJECT LEADS: Brit Fontenot - Economic Development Director community Engagement PURPOSE Community engagement is a critical element in the strategy development to hear consistent themes regarding barriers and opportunities in Bozeman. BACKGROUND: The City of Bozeman’s Economic Development Strategy rests on three Strategic Imperatives defined by the former Economic Development Council (EDC) include: 1. Support retention and growth of existing businesses, while welcoming and encouraging new businesses; 2. Invest in infrastructure as a mechanism to drive economic development; and 3. Support education and workforce development initiatives to provide businesses with qualified workers. The EDC also created the Economic Development Vision for the community: “Our community strengthens and diversifies the local economy by supporting business sectors that create & sustain mid-to high-paying jobs, enhancing the high quality of life in the greater Bozeman area.” Guiding Economic Development Values/Principles include: 1. Strengthening and diversifying the local home-grown economy; 2. Increasing economic activity that improves our community’s prosperity; 3. Supporting innovation and encouraging growth in mid-to-high wage sectors; 4. Facilitating the creation of mid-to-high paying jobs/high quality employment to match the high quality of life; 5. Environmental responsibility; and 6. Intentional growth planning. The inaugural Economic Development Plan was prepared by the Prospera Business Network and adopted by the Bozeman City Commission in 2009. The 2009 plan was very aspirational and encouraged, supported and recommended community partnerships in order to accomplish the modest goals of the plan. In November 2016, the City of Bozeman adopted a new 3- 5 year Economic Development Strategy to update and replace the 2009 plan. Along with the strategy, the update includes a focus and definition of traded vs. local sector job growth, analyzed local sectors and recommended specific tasks for implementation. 12292 Last Updated: 11/30/2021 1:59 PM 2 Since the 2016 plan was adopted, the region has experienced significant changes including the Great Recession, a global pandemic, a re-focus on sustainability and equity, expansion of sectors in the region and a massive shift in the available workforce to meet the demands of growing businesses. The proposed update intends to evaluate and update current traded vs. local sector conditions, update the strategy while taking into account events over the past five years and include components of sustainability/resiliency and address equity issues. Finally, in 2018, the City Commission adopted a Strategic Plan that envisions Bozeman remaining “a safe, inclusive community, fostering civic engagement and creativity, with a thriving diversified economy, a strong environmental ethic, and a high quality of life as our community grows and changes”. The principles imbedded in the 2016 Economic Development Strategy are fully incorporated into the Strategic Plan in the Innovative Economy section which reads: 2. An Innovative Economy We grow a diversified and innovative economy leveraging our natural amenities, skilled and creative people, and educational resources to generate economic opportunities. 2.1 Business Growth - Support retention and growth of both the traded and local business sectors while welcoming and encouraging new and existing businesses, in coordination with the Economic Development Plan. 2.2 Infrastructure Investments - Strategically invest in infrastructure as a mechanism to encourage economic development. a) Identify Commercial/Industrial Infrastructure Needs. Identify sites for new or redevelopment in areas that lack adequate infrastructure and develop new financing strategies to fund these investments. 2.3 Workforce Development - Support education and workforce development initiatives to improve the skills of our citizens. 13293 Last Updated: 11/30/2021 1:59 PM 3 2022 Economic Development Strategy Update This Community Engagement Plan is being prepared for the 2022 Economic Development Strategy Update (EDS). The EDS will take off from the previous work but take a broader look at the City and Greater Bozeman Region and incorporate economic and racial equity perspectives. The EDS is comprised of the following elements:  Economic Development Strategy – The document that outlines and furthers the City of Bozeman’s economic development efforts and is aligned with the City’s strategic goals, i.e. An Innovative Economy  Economic Development Action Plan – The portion of the Economic Development Strategy Update that identifies specific action steps  SWOT Analysis – SWOT is an acronym for [Economic] Strengths, Weaknesses, Opportunities and Threats analysis conducted as part of the strategy update.  Conditions Assessment – This assessment considers economic conditions on the ground in the region as of the time frame in which the strategy is being updated  Business or Industry Cluster or Sector – a geographic concentration of interconnected businesses, suppliers, and associated institutions in a particular field, i.e. the photonics cluster or sector. Key partners and interest groups Internal 1. Economic development team; 2. Consultant team; and 3. Community engagement. External 1. Local and regional economic development practitioners; 2. The Economic Vitality Board; 3. Private sector business representatives; 4. Minority business owners; and 5. Affordable housing and social service providers and advocates. These external partners will all comprise the Regional Leadership Council (RLC) that will provide guidance and feedback throughout the strategy development. More details on the RLC are outlined below Partners’ role in decision making process 1. Engage stakeholders on the Condition Assessment and SWOT analysis; 2. Identify barriers and opportunities for underrepresented groups to access opportunity and economic mobility; 14294 Last Updated: 11/30/2021 1:59 PM 4 3. Provide feedback and input on the vision, goals and objectives in the EDS; and 4. Provide feedback and guidance from the RLC and stakeholders on the appropriate method of weaving equity and sustainability/resiliency into the ED Strategy update. 5. Consulting partners on what economic development and prosperity look like in Bozeman from their unique perspectives. STEP IN DECISION MAKING PROCESS SPECTRUM LEVEL C.E. STATEMENT (leave empty if Spectrum Level is INFORM) Interest group or partner (ex. all or targeted) Define problem / opportunity Involve  Define a city vision, values and guiding principles for the EDS.  Establish a common definition of prosperity All Gather information Consult  Identify barriers and opportunities for underrepresented groups to access opportunity and economic mobility. RLC, community members, cluster representatives Establish decision criteria Inform Criteria used to establish vision, values, guiding principles will be determined by CC, EPS/Bridge through the Conditions Assessment and results from engagement All Develop alternatives Inform CC, EPS/Bridge team will develop the “alternatives” or draft goals and objectives for the EDS All 15295 Last Updated: 11/30/2021 1:59 PM 5 Evaluate alternatives Consult  Provide feedback and input on the goals and objectives in the EDS All Make decision Inform Economic Vitality Board will make recommendation to City Commission to adopt EDS All OVERALL PUBLIC INVOLVEMENT LEVEL: Consult, Involve and Collaborate GOAL FOR COMMUNITY ENGAGEMENT Update the City’s Economic Development Strategy by revisiting the three strategic imperatives to ensure that changing conditions in our community, equity, sustainability and resiliency are reflected in the new strategy OBJECTIVES – (SMART! Specific, Measurable, Attainable, Realistic, Timely) Stakeholder engagement is a critical element in the strategy development to hear consistent themes regarding barriers and opportunities. All stakeholder engagement will be grounded in 16296 Last Updated: 11/30/2021 1:59 PM 6 the presentation of facts and findings determined in the preliminary work. This approach will provide a foundation for feedback and more guided discussion. The consultant team will work with staff to develop meetings with a specific grouping of attendees (e.g. target industry cluster, economic development professionals, underserved, sustainability/resiliency, housing, etc.) to gather more detailed information specific to their interests. This qualitative information will supplement the quantitative information to begin to guide the strategy. We anticipate that these meetings will be in person. During the visit(s), staff and the consultant team will also meet with the Regional Leadership Committee (RLC) and the Bozeman City Commission, or individual Commissioners, to outline the strategy development process and gather their initial feedback as well. Proposed engagement includes: 1. Up to five roundtable meetings with industry cluster businesses and community stakeholders; 2. Up to two focus groups with housing advocates, affordable housing developers, and social service providers; 3. Meeting with City staff including, but not limited to, sustainability, public works, community development, strategic services and communication and engagement;. 4. RLC meeting; 5. City Commission or Commissioner meetings; 6. Up to 6 individual follow-up meetings as necessary; and 7. Summary of feedback. PUBLIC ENGAGEMENT STRATEGY This section summarizes CEP. An estimated meeting schedule is attached for planning purposes but may be adjusted over the course of the project. Phase I Timeline: Tasks 1-2 in Economic Development Strategy (EDS) December-January 2021-2022 Phase 1: In Phase I the Consultant Team will establish baseline information on the economy needed to inform the engagement process. We will also work with the Core Committee (City Staff) to form the Advisory Committees and Regional Leadership Committees. Prepare and Inform:  Committee member identification  Committee formation  Perform data gathering and analysis to inform committee members and participants in Phase II 17297 Last Updated: 11/30/2021 1:59 PM 7 Actions: o City and Consultant will work together to form the Advisory Committee (AC) and Regional Leadership Committee (RLC) Tools: o Personal contact and outreach to prospective committee members o Economic and demographic research, benchmarking against peer cities or regions. Phase II Timeline: February-March 2022 Tasks 3 and 4 of EDS Phase II: Involve and Consult This Phase will cover the bulk of the community engagement in the EDS. We will be engaging with a broad cross section of groups organized around the Guiding Principles. After the Task 3 engagement activities, we will develop draft strategies and policies for review by the AC and RLC. Actions:  Up to five roundtables with industry cluster businesses and community members  Up to two focus groups with housing and social services providers and advocates for low income and vulnerable populations.  Meeting with City staff including, but not limited to, sustainability, public works, community development, strategic services and communication and engagement;  RLC Meeting  City Commission Meeting  Up to 6 individual follow up meetings as necessary  Summary of engagement and feedback  Draft of Vision, Values, Guiding Principles, Key Findings, Goals and Objectives Tools:  Facilitated discussions  Focus groups  One-on-one follow up interviews Phase III Timeline: April-June 2022 Tasks 4 and 5 of EDS Phase III: Inform and Consult In Phase III the Consultant will revise the strategies and policies from the feedback from the Phase II engagement and work between the Consultant and Core Committee. We will ensure that the revised strategies and policies reflect input from the Phase II engagement, including input from vulnerable populations. The Consultant will inform the AC and RLC on the recommendations and consult them for feedback on the direction of the EDS. Actions:  Revised Vision, Values, Guiding Principles, Key Findings, Goals and Objectives 18298 Last Updated: 11/30/2021 1:59 PM 8  Presentations to AC and RLC to review and approve vision, values, guiding principles  Presentations to AC and RLC to review and approve goals and objectives  Presentation to City Commission  Final Strategy document report Tools:  Facilitated discussions with AC, RLC, and City Commission 19299 Last Updated: 11/30/2021 1:59 PM 9 TASK 2 & 3 – Conditions Assessment and Engagement CC (Consultants + Brit/David) AC (Co-Chairs of RLC – one private) RLC (Economic Vitality Board + stakeholders) Estimated Mtg. Date Topic Mtg Date Topic Mtg Date Topic 12/03  Bridge/EPS finalize draft peer regions and data points to start analysis  Review RLC list and AC members to finalize groups. 12/17 (client task) Finalize RLC and AC 1/07  EPS presents internal raw data on peers  Bridge provides stakeholder meeting list and invite language 1/10 (client task) Stakeholder meeting invites out 2/02 Draft RLC Presentation for AC review 2/07  Overview of Roles and Process  Draft RLC Presentation for AC review 2/14  RLC Role and Process  ED + traded sector defined  Strategy Framework  Peer regions, demographic data 2/14 -2/15 Participant Roundtables 2/15 City Commission Meeting 20300 Last Updated: 11/30/2021 1:59 PM 10 TASK 4 – Strategy CC (Consultants + Brit/David) AC (Co-Chairs of RLC – one private) RLC (Economic Vitality Board + participants) Mtg Date Topic Mtg Date Topic Mtg Date Topic 2/21 Debrief on Engagement Feedback 3/02 Vision, Values and Guiding Principles 3/07 Vision, Values and Guiding Principles 3/14 Vision, Values and Guiding Principles 3/30 Key Findings, Goals, and Objectives 4/04 Key Findings, Goals, and Objectives 4/11 Key Findings, Goals, and Objectives 4/22  Final Draft Strategy  Preliminary Action Ideas 4/27  Final Draft Strategy  Preliminary Action Ideas 5/16  Final Draft Strategy  Preliminary Action Ideas 5/17 City Commission Meeting 21301 Last Updated: 11/30/2021 1:59 PM 11 TASK 5 – Implementation CC (Consultants + Brit/David) AC (Co-Chairs of RLC – one private) RLC (Economic Vitality Board + participants) Mtg Date Topic Mtg Date Topic Mtg Date Topic 5/31 Draft Action Matrix 6/10 Draft Action Matrix 6/22 Draft Action Matrix 6/29 Final Action Matrix 7/08 Final Action Matrix 7/20 Final Action Matrix 22302 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 1 of 13 PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this 22nd day of June, 2021 (“Effective Date”), by and 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, ECONOMIC AND PLANNING SYSTEMS, INC., 730 17th Street, Suite 630, Denver, CO 80202, hereinafter referred to as “Contractor.” The City and Contractor may be referred to individually as “Party” and collectively as “Parties.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter this Agreement with Contractor to perform for City services described in the Scope of Services attached hereto as Exhibit A and by this reference made a part hereof. 2. Term/Effective Date: This Agreement is effective upon the Effective Date and will expire on the 30 day of June 2026, or the completion of any written Task Order initiated prior to June 30, 2026 unless earlier terminated in accordance with this Agreement. 3. Scope of Services: Contractor will perform the work and provide the services in accordance with the specific services and corresponding schedule as mutually agreed upon by City and Contractor and included in each individual Task Order executed under the authority of this Agreement. Task Orders shall be attached and made part of this Agreement. For conflicts between this Agreement and the Scope of Services, unless specifically provided otherwise, the Agreement governs. 4. Payment: The terms of compensation to Contractor shall be agreed upon and included in each Task Order. City agrees to pay Contractor the amount specified in the individual Task Orders. Any alteration or deviation from the described services that involves additional costs above the Agreement amount will be performed by Contractor after written request by the City, and will DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 23303 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 2 of 13 become an additional charge over and above the amount listed in the Scope of Services. The City must agree in writing upon any additional charges. 5. Contractor’s Representations: To induce City to enter into this Agreement, Contractor makes the following representations: a. Contractor has familiarized itself with the nature and extent of this Agreement, the Scope of Services, and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services. b. Contractor represents and warrants to City that it has the experience and ability to perform the services required by this Agreement; that it will perform the services in a professional, competent and timely manner and with diligence and skill; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this warranty. 6. Independent Contractor Status/Labor Relations: The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, Montana Code Annotated (MCA), and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 24304 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 3 of 13 specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue at no additional cost to City. Contractor shall indemnify, defend, and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes. 7. Indemnity/Waiver of Claims/Insurance: For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; or (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents. For the professional services rendered, to the fullest extent permitted by law, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the negligence or intentional misconduct of the Contractor or Contractor’s agents or employees. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the City as indemnitee(s) which would otherwise exist as to such indemnitee(s). Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. Should the City be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor’s applicable insurance DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 25305 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 4 of 13 policies required below, the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. In the event of an action filed against the City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. Contractor also waives any and all claims and recourse against the City, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for [City’s] own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. These obligations shall survive termination of this Agreement and the services performed hereunder. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage 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 Contractor in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in this Section. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City. Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows: • Workers’ Compensation – statutory; • Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; • Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; • Automobile Liability - $1,000,000 property damage/bodily injury per accident; and • Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate. The above amounts shall be exclusive of defense costs. The City shall be endorsed as an additional or named insured on a primary non-contributory basis on both the Commercial General DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 26306 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 5 of 13 and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non-renewal. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. 8. Termination for Contractor’s Fault: a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, the City may, by written notice, terminate this Agreement and the Contractor’s right to proceed with all or any part of the work (“Termination Notice Due to Contractor’s Fault”). The City may then take over the work and complete it, either with its own resources or by re-letting the contract to any other third party. b. In the event of a termination pursuant to this Section 8, Contractor shall be entitled to payment only for those services Contractor actually rendered. c. Any termination provided for by this Section 8 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. d. In the event of termination under this Section 8, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 9. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease performance under this Agreement, the City may terminate this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 27307 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 6 of 13 b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease performance under this Agreement and make every reasonable effort to refrain from continuing work, incurring additional expenses or costs under this Agreement and shall immediately cancel all existing orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as may be necessary to preserve, protect, and maintain work already completed or immediately in progress. c. In the event of a termination pursuant to this Section 9, Contractor is entitled to payment only for those services Contractor actually rendered on or before the receipt of the Notice of Termination for City’s Convenience. d. The compensation described in Section 9(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 10. Limitation on Contractor’s Damages; Time for Asserting Claim: a. In the event of a claim for damages by Contractor under this Agreement, Contractor’s damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. b. In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 11. Representatives and Notices: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be David Fine, Urban Renewal Program Manager, or such other individual as City shall designate in writing. Whenever approval or authorization from or DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 28308 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 7 of 13 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, Contractor 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. Contractor’s Representative: The Contractor’s Representative for the purpose of this Agreement shall be Brian Duffany, Executive Vice President, or such other individual as Contractor shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed to Contractor’s Representative; provided, however, that in exigent circumstances when Contractor’s Representative is not available, City may direct its direction or communication to other designated Contractor 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. 12. Permits: Contractor 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. 13 Laws and Regulations: Contractor 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 non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 14. Nondiscrimination and Equal Pay: The Contractor agrees that all hiring by Contractor of persons performing this Agreement shall be on the basis of merit and qualifications. DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 29309 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 8 of 13 The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor 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. Contractor 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). Contractor 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. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 15. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing its employees and agents in safe work practices. 16. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of the City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 30310 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 9 of 13 17. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor shall 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 the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 18. 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. 19. 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. 20. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 21. 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. 22. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 31311 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 10 of 13 23. 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. 24. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 25. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 26. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 27. 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. 28. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 29. 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. 30. 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. DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 32312 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 11 of 13 **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written or as recorded in an electronic signature. CITY OF BOZEMAN, MONTANA ____________________________________ CONTRACTOR (Type Name Above) By________________________________ By__________________________________ Jeff Mihelich, City Manager Print Name: ___________________________ Print Title: ____________________________ APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 Economic & Planning Systems, Inc. Principal Dan Guimond 33313 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 12 of 13 Exhibit “A” SCOPE OF SERVICES The selected consultant may assist the City on any task defined by the general scope of work as directed by written task order. A) Economic Development Strategy and Implementation • Provide strategic, data-driven advice regarding the feasibility of various development types and projects and provide guidance on the tools, public infrastructure, programs, partnerships, incentives and policies that can stimulate the desired development. • Background and experience in analyzing regulations and development codes and policies to support strategic objectives • Commercial and Mixed-Use District Development strategies and implementation. • Perform market analysis to support policy and land use decisions. • Create strategic Economic Development Strategies and Action Plans • Create data driven marking materials that reflect community assets to welcome talent and business for key clusters B) Economic Development and Real Estate Financial Analysis • Provide robust and data rich assessments of Bozeman and Gallatin County’s real estate and housing market. o Regional growth trends related to population, employment including tracking key employment sectiors, and demographic data o For-sale Market o Rental Market o Commercial and Residential Market Trends o Affordability Indicators • Provide data driven analysis to support economic development strategy and implementation of that strategy. C) Public-Private Partnerships • Assist in negotiating and structuring public-private partnerships that are beneficial to the City of Bozeman. o Provide guidance on the development of shared structured and surface parking facilities. o Provide guidance on attracting and facilitating mixed use investment in key districts. o Provide guidance on the development of workforce and affordable housing projects, deal structures and incentives • Provide robust and detailed analysis and financial pro formas to examine the financial feasibility of specific projects and provide gap financing analysis to right size economic development incentives. • Project TIF cash flows based on existing projects and projected projects to assist with obtaining financing, including bonding. DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 34314 Professional Services Agreement for Economic and Planning Systems, Inc. Term Contract FY 2021 – FY 2027 Page 13 of 13 D) Building and Development Conceptualization • Provide ongoing assistance in developing Bozeman’s mixed-use districts as a specific kinds of places by working with property owners and developers to advance building concepts and formats that are consistent with the aspirations of Bozeman’s guiding plans, while staying feasible in Bozeman’s real estate market. The firm or team will demonstrate competency in urban and landscape planning and design and be able to produce visioning documents that show the integration of plans and projects with the built environment. DocuSign Envelope ID: 463D846F-B33D-495F-ABF4-127FE0DC5E88 35315 Meeting Date in Red indicates in person meeting with consultant team December 15, 2021 1 Conditions Assessment and Engagement CC (Consultants + Brit/David) AC (Co-Chairs of RLC – one private) RLC (Economic Vitality Board + stakeholders) Mtg Date Topic Mtg Date Topic Mtg Date Topic 1/03 • Kick-off meeting: review proposed peer regions and data points to start analysis • Review final RLC and AC list 1/05 EVB meeting 1/25 • EPS presents internal raw data on peers • Bridge provides stakeholder meeting list and invite language 1/27 (client task) Stakeholder meeting invites out 2/07 Draft RLC Presentation for AC review 2/14 • Overview of Roles and Process • Draft RLC Presentation for AC review 2/21 • RLC Role and Process • ED + traded sector defined • Strategy Framework • Peer regions, demographic data 2/21 - 2/22 Stakeholder Roundtables 2/22 City Commission Meeting 316 Meeting Date in Red indicates in person meeting with consultant team December 15, 2021 2 Strategy CC (Consultants + Brit/David) AC (Co-Chairs of RLC – one private) RLC (Economic Vitality Board + stakeholders) Mtg Date Topic Mtg Date Topic Mtg Date Topic 3/02 Debrief on Engagement Feedback 3/07 Vision, Values and Guiding Principles 3/11 Vision, Values and Guiding Principles 3/14-18 BZN Spring Break 3/21-25 PDX Spring Break 3/28-4/01 CO Spring Break 3/25 Vision, Values and Guiding Principles 4/15 Key Findings, Goals, and Objectives 4/20 Key Findings, Goals, and Objectives 4/27 Key Findings, Goals, and Objectives 5/20 Draft Strategy and Preliminary Action Ideas 5/26 Draft Strategy and Preliminary Action Ideas 5/27-31 Memorial Day 6/13-16 AP out 6/20 Draft Strategy and Preliminary Action Ideas 6/21 City Commission Meeting 317 Meeting Date in Red indicates in person meeting with consultant team December 15, 2021 3 Implementation CC (Consultants + Brit/David) AC (Co-Chairs of RLC – one private) RLC (Economic Vitality Board + stakeholders) Mtg Date Topic Mtg Date Topic Mtg Date Topic 6/30 Draft Action Matrix 7/07 Draft Action Matrix 7/15 Draft Action Matrix 8/03 Final Action Matrix 8/10 Final Action Matrix 8/19 Final Action Matrix 318 319 City of Bozeman | Economic Development Strategy Update November 2016 Page i Acknowledgements Bozeman City Commission Mayor Carson Taylor Deputy Mayor Cynthia Andrus Commissioner Chris Mehl Commissioner I-Ho Pomery Commissioner Jeff Krauss Economic Development Council Mayor Carson Taylor, Commission Liaison Erik Garberg Steve Holland Chris Kukulski Kris Kumlien Rebecca Marhurin Cheryl Ridgely Daryl Schliem Economic Development Council Subcommittee of Local Business Leaders Terry Alborn Jim Ness Alistair Stewart Penny Zacharisian Economic Development Department Brit Fontenot David Fine Prepared By Leland Consulting Group, Inc. 610 SW Alder Street, Suite 1008 Portland, Oregon 97205 503.222.1600 320 City of Bozeman | Economic Development Strategy Update November 2016 Page ii Table of Contents Introduction ..................................................................................................................................................................... 1 What is Economic Development? ........................................................................................................................ 2 Talent ........................................................................................................................................................................... 5 Skilled Workforce ...................................................................................................................................................... 6 What is the Benefit of an Economic Development Vision and Strategy? ................................................. 7 Background .................................................................................................................................................................... 9 Stakeholder Interview Themes .............................................................................................................................. 9 Citywide Survey Themes ........................................................................................................................................ 10 Business Owner Survey Themes .......................................................................................................................... 11 Montana Photonics Industry Alliance Member Survey (2014) ..................................................................... 14 Strengths, Weaknesses, Opportunities, and Challenges (SWOT) ............................................................... 14 Economic Profile .......................................................................................................................................................... 15 Population Growth .................................................................................................................................................. 15 Employment Growth .............................................................................................................................................. 16 Commute Patterns .................................................................................................................................................. 16 Median Age .............................................................................................................................................................. 17 Distribution of Employment.................................................................................................................................. 17 Income Distribution ................................................................................................................................................ 18 Education Attainment............................................................................................................................................. 19 Industry Clusters .......................................................................................................................................................... 20 Photonics .................................................................................................................................................................. 20 Software/IT ............................................................................................................................................................... 23 Outdoor .................................................................................................................................................................... 24 Tourism/Recreation ............................................................................................................................................... 26 Biotechnology ......................................................................................................................................................... 28 The Strategy ................................................................................................................................................................. 30 Current Strategy ..................................................................................................................................................... 30 Strategy Update ...................................................................................................................................................... 30 Goal 1: Expand the Existing Base ......................................................................................................................... 31 Goal 2: Support Business ...................................................................................................................................... 33 Goal 3: Regional Connections ............................................................................................................................. 35 Appendix A: Action List Appendix B: Stakeholder List Appendix C: Commission Resolution 321 City of Bozeman | Economic Development Strategy Update November 2016 Page 1 Introduction The modern global economy consists of rapidly changing market trends. The one economic certainty that pertains to any industry is the increasing need for skilled talent. Unfortunately, complex issues driving income stratification and workforce skills gaps are making it more difficult for all citizens to realize positive personal economic growth in keeping with business growth. In order to plan for this modern economy, communities must consciously foster a diverse economic base and skilled workforce to weather inevitable negative and positive cycles. Coupled with global economic trends, the city of Bozeman is growing rapidly, which introduces new challenges regarding affordable housing, traffic, and public service provision. It is important for the City to consciously manage growth aligned with the desired economic base in order to retain the small town and outdoor qualities that make Bozeman unique, while remaining competitive in the global modern economy. Finally, city government plays a unique and distinct role in economic development. They are the key stakeholder among many engaged organizations that significantly invests in infrastructure and guides land use policy. Fortunately, the City of Bozeman has a strong culture poised to facilitate collaboration among departments including public works, finance and community and economic development to thoughtfully align objectives that foster a healthy economic base. 322 City of Bozeman | Economic Development Strategy Update November 2016 Page 2 What is Economic Development? Economic development can be defined as efforts that seek to improve the economic well-being and quality of life for a community by creating and/or retaining middle and high income jobs and supporting or growing incomes and the tax base through diversification of the local economy. These jobs are generally defined as two different sectors with distinct needs in terms of workforce and business location. In addition, the City must provide different types of support and investments for each sector. These sectors are distinguished for clarification regarding strategy objectives and actions. Traded Sector vs. Local Sector Jobs Traded sector (also referred to as basic sector) businesses include industries and employers which produce goods and services that are consumed outside the region where they are produced and therefore bring in new income to the area (e.g., outdoor gear, photonics, software). Workers in the traded sector tend to be better educated, work more hours, and earn higher average wages than local sector business. As the traded sector increases employment and wages, it also enables entrepreneurs to develop skills and resources to foster innovation and start new businesses and increase employment opportunities. Furthermore, certain traded sector companies foster a supply chain effect that create the need for additional companies to supply components of a product that is manufactured. Tourism is a unique traded sector industry to Bozeman in that it brings new income into the region and it leverages Yellowstone National Park as well as numerous outdoor assets not found elsewhere in the United States. Local sector business consists of industries and firms that are in every region. They produce goods and services that are consumed locally in the region where they were made, and therefore circulate existing income in the area (e.g., drug stores, physician offices, restaurants). These businesses are important as they make a community distinct and provide amenities to attract young professionals and families that drive the new economy. A sampling of traded vs. local sector businesses in the Bozeman region is indicated in Figure 1. 323 City of Bozeman | Economic Development Strategy Update November 2016 Page 3 Figure 1. Representative Traded Sector and Local Sector Bozeman Businesses Traded Sector Local Sector Table 1 highlights the average wage difference between traded sector jobs and local sector jobs in the U.S. Also of note is the difference between Gallatin County and U.S. average wages. The community is well aware of this disparity and that it is currently an advantage for employers. However, business leaders interviewed as part of this economic development strategy process expressed an understanding that this is not a healthy trend. For businesses to continue to attract a highly skilled workforce, there need to be more companies here. When there is a larger job base, it is more attractive to employees because they have options for career growth. In turn, once the employment base grows, competition will occur and ultimately increase wages. Montana is starting to realize gains in this area with real median household income increasing by 6.8 percent between 2014 and 2015 per American Community Survey statistics. 324 City of Bozeman | Economic Development Strategy Update November 2016 Page 4 Table 1. 2015 Annual Average Wages by Industry Sector NAICS Industry Sector United States Average Wage 2015 Gallatin County Average Wage 2015 Mesa County, CO (City of Grand Junction) Average Wage 2015 Traded Sector 55 Management of Companies & Enterprises $116,745 $60,078 $101,797 51 Information $95,038 $56,541 $44,836 54 Professional, Scientific, & Technical Services $ 89,785 $66,648 $53,640 42 Wholesale Trade $ 73,363 $56,074 $55,629 31-33 Manufacturing $64,305 $41,516 $43,293 Local Sector 23 Construction $57,009 $46,908 $49,377 61 Education Services $47,968 $25,908 $21,404 62 Health Care & Social Assistance $47,296 $44,891 $45,897 71 Arts, Entertainment, Recreation $36,128 $25,840 $16,454 44-45 Retail Trade $29,742 $29,319 $27,194 72 Accommodation & Food Services $19,415 $18,307 $16,888 Source: Quarterly Census of Employment and Wages - Bureau of Labor Statistics, May 2016. The lower average wages in Gallatin County are further impacted by the higher cost of living in Bozeman as compared to similar communities as identified in the following table. As an example, Grand Junction, CO with a similar size population as Bozeman has similar average wages as indicated in Table 1. However Grand Junction has a lower Cost of Living Index score as identified in Table 2, which provides more purchasing power with the wages. The composite Cost of Living Index score is based on six categories – housing, utilities, grocery items, transportation, health care, and miscellaneous goods and services. The national average composite index is set at 100 each period; so the index conveys relative price levels at a specific point in time. 325 City of Bozeman | Economic Development Strategy Update November 2016 Page 5 Table 2. Cost of Living Index Results (Q2 2016) Source: Prospera Business Network, September 2016. Talent The national economy is becoming increasingly more talent/knowledge-based than resource-based meaning people over raw materials are the most important asset to a company’s value and prospects for growth. This applies to all industries including manufacturing, professional services, and technology. Articulating this further is the following chart defining the shift in market assessment for the world’s most valuable companies. As illustrated in Figure 2, 10 years ago the most valuable companies consisted largely of natural resource extraction and now they are largely technology companies with values based upon people Figure 2. The Age of Tech 326 City of Bozeman | Economic Development Strategy Update November 2016 Page 6 generating innovative ideas and processes. This is not to suggest that Bozeman needs to focus their industrial base entirely on technology companies, but to understand that the modern economy thrives more on skilled people than natural resource extraction. A significant cohort of the talent in demand consists of the “Millennial” generation (generally ages 19 to 35 in 2016) made up of approximately 76 million people – the largest demographic group our country has seen. As this generation grows and shapes our talent-based economy, it is important to understand what motivates them and the communities they choose in such a highly mobile environment. Such an environment includes the following elements:  Job Base. Talent moving to a new community wants to know that there are other opportunities if the job that brought them there does not fulfill expectations.  Simple Commute. Many Millennials are not defined by the automobile, and do not want to drive if they don’t have to. As reported in Urban Land Institute (ULI) Emerging Trends 2016, miles traveled by car for those people 34 years old or younger are down 23 percent nationally. Locally, the average miles travelled by any mode – walking, driving, biking, or taking transit – is the lowest for Millennials.  Urban Lifestyle. They tend to prefer density with alternative transportation modes and retail nearby, which provides alternatives to owning a car. This urban lifestyle does not mean that an entire community must conform to urban densities. What is important is that some element of an urban lifestyle through either a healthy Main Street in a traditional downtown or denser town centers in suburbs is provided.  Amenities. Millennials are looking for ample amenities, especially restaurants and access to outdoor recreation.  Open Culture. They embrace social or ethical causes1 and communities that are more diverse, accepting, and open to change. Skilled Workforce When planning for a future economy it is important to understand that all industries are dependent on a talented workforce that has technical skills and/or higher education attainment. Bozeman’s future economy requires a skilled workforce with training in career technical education (CTE) and access to higher education science, technology, engineering, and mathematics (STEM) degrees. Career Technical Education (CTE) Training CTE training is targeted toward middle-skill jobs, which require education and training beyond high school but less than a bachelor's degree, and are a significant part of the economy. Of the 55 million job openings created by 2020, 30 percent will require some college or a two-year associate degree. 1 Brookings Institute, 11 Facts about the Millennial Generation, June, 2014. 327 City of Bozeman | Economic Development Strategy Update November 2016 Page 7 It is important to foster partnerships with Gallatin College and local primary and secondary schools to encourage youth to consider this career path. By engaging youth early, they may be more likely to attend Gallatin College or obtain other skills training and either start their own enterprise or apply their critical skills with local companies in Bozeman. An example of CTE training includes culinary programs that support the hospitality and tourism industry, and photonics technician training with Computer Numeric Control (CNC) machining skills development that supports high-tech manufacturing. Higher Education Globally, positions requiring substantial independent judgment and decision making are now in high demand. Increasingly employers are demanding a workforce that has technical skills, including manufacturing jobs that involve the operation of sophisticated machinery requiring some advanced training beyond high school. Science, technology, engineering, and mathematics (STEM) workers are increasingly in demand and in short supply, especially in the private sector which needs software developers, data scientists, and those in skilled trades. Bozeman is fortunate in that it is home to Montana State University (MSU), which provides several degrees and research facilities to equip students with these technical, interpersonal, and entrepreneurial skills that are in high demand. What is the Benefit of an Economic Development Vision and Strategy? In order to prepare a community to proactively respond to rapidly changing trends, it must have a strategy in place. Without a strategy, efforts are often reactive, non-collaborative, and not connected for meaningful impact. An economic development strategy will: #1: Document a Playbook For economic development to succeed, numerous partners and organizations must be engaged and collaborate toward common goals. At the same time, it is essential for public and private entities to recognize that they are partners in economic development efforts, as one cannot be sustained without the other. To efficiently and effectively align goals, a community must understand, document, and achieve consensus on its vision, values, opportunities, and objectives. Bozeman has established a solid foundation with the three economic development pillar strategies defined below: 1. Support retention and growth of existing businesses, while welcoming and encouraging new businesses; 2. Invest in infrastructure as a mechanism to drive economic development; and 3. Support education and workforce development initiatives to provide businesses with qualified workers. 328 City of Bozeman | Economic Development Strategy Update November 2016 Page 8 The world’s economy is changing rapidly. An established “playbook” provides enough broad goals to recognize opportunities when they arise, and also clear direction regarding the City’s roles to help determine projects that should be pursued and those that are better implemented by other stakeholders. To effectively implement a strategy, it is as important to say “no” to certain opportunities as it is to say “yes” to others. #2: Identify Specific Actions and Metrics Once goals and objectives are defined, action must be taken. Often these actions will appear minor without the overall context of the plan. Furthermore, some actions will build momentum and have a meaningful impact, others will fail, and some may not occur due to limited stakeholder interest or resources. The intent of the strategy is to provide several action items by several partners, all working toward the same overall goal. This is a flexible document that will be shaped as opportunities arise. Finally, it is important to revisit the document annually and determine where progress is being made, where other areas are deficient, and acknowledge that progress is being made. It will be necessary to update the document every three to five years in keeping with the rapid pace of change in the economy. 329 City of Bozeman | Economic Development Strategy Update November 2016 Page 9 Background In developing the economic development strategy, it is important to obtain information from local businesses and employees. We have achieved this through personal interviews of stakeholders identified in Attachment B and survey responses from the business community. Consistent themes from the interviews and surveys are summarized below and are reflected in the strategy. Stakeholder Interview Themes In August, 2016 Leland Consulting Group and Bozeman Economic Development staff held several meetings with industry representatives, small business organizations, the Economic Development Committee, and City staff to determine opportunities and challenges to fostering economic development in the Bozeman region. Consistent themes and comments are noted below.  Hard to attract and hire senior level talent. Often want to also bring professional spouse but may not have a position for that person. This is referred to as a “trailing spouse issue”.  Need to tell Bozeman business story (outdoor recreation story is done well already).  If more companies are here, it is more attractive to employees because they have options for career growth and competition which ultimately increases wages.  Need to make sure existing companies have place to grow. They want to stay within the Bozeman city limits but that opportunity is becoming constrained by costs and lack of building sites.  Protect access to and quality of outdoor life and ecosystem (aquifers, trails, streams, views). This is vital to Bozeman.  Emerging growth and economic development issues must be addressed on a regional level. Need to start thinking regionally.  Financial resources are constrained. Need to work together (private/public) for proactive solutions.  Accommodate and welcome new businesses interested in Bozeman, and balance other economic development priorities with recruitment of companies.  Work with industry clusters to determine gaps in supply-chain and target companies needed to fill the gaps. 330 City of Bozeman | Economic Development Strategy Update November 2016 Page 10 Citywide Survey Themes The City of Bozeman is undergoing a Strategic Planning Process, which included outreach to the local citizens via survey. They received over 530 responses, including the following, which represent consistent themes in answering “What is your vision for an innovative economy?”  Higher wages, more appreciation of workforce, less concentration of wealth in the hands of a few privileged folks  Promote growth on the micro level by opening doors and lightening unnecessary restrictions that were written with larger businesses in mind. We need more people manufacturing or running businesses out of their homes and vehicles as the cost of brick and mortar businesses has become prohibitive to smaller startups.  Small, entrepreneurial businesses are the key. They are flexible, hire the most individuals and adapt better than large businesses to a constantly changing economy!  Thriving business community, lots of growing startups, full employment, opportunities to get training to improve your position.  Easy to start a business, easy to get funding.  A varied economy that continues to make quality of life a priority.  Economy based on multiple legs – technology, recreation, other skilled employment  Utilizing local talent and businesses.  Develop a plan to improve jobs and employment opportunities for residents wanting to stay in the area equally matched with recruiting out of state residents for current and future openings for employment. Develop training programs for workforces underrepresented, like skilled trades, high-tech, and service work such as hospitality, landscaping, or unskilled labor.  Jobs that pay enough to let you live here.  Global, technology based businesses and other clean industries.  I would hope that Bozeman is an outdoor industry hub, has more than high-tech as options for well-paying jobs, and has direct educational opportunities for residents who want to pursue jobs in Bozeman.  Bozeman has a healthy mix of industries, including thriving high-tech companies who are based in Bozeman.  That Bozeman would not become a mini Silicon Valley, even though high-tech businesses are here. We need to make sure Bozeman remains diversified enough that we have a variety of business that offer a variety of positions from skilled labor to Ph.D....not just all jobs requiring a high amount of education.  A diversified economy that provides high paying jobs but doesn't detract from our natural environment. 331 City of Bozeman | Economic Development Strategy Update November 2016 Page 11 Business Owner Survey Themes City of Bozeman staff in partnership with Prospera, Bozeman Chamber of Commerce, and Downtown Partnership distributed a survey to over 2,000 businesses. A total of 107 responses were submitted. The company make-up is shown in the following chart and predominant themes are summarized below. Figure 3. Types of Businesses Responding to Survey 332 City of Bozeman | Economic Development Strategy Update November 2016 Page 12 Figure 4. Where Bozeman Companies Find Talent Figure 5. Ideal Location for Bozeman Companies 0 5 10 15 20 25 30 35 Manufacturing Retail/Restaurant Professional services Tourism Outdoor Photonics Bioscience Software/IT 333 City of Bozeman | Economic Development Strategy Update November 2016 Page 13 Business Owner Survey Comments  I work with businesses who are hiring. Barriers include: No local job posting site, costly nature of newspaper advertisements, many businesses don't offer any type of health insurance (too expensive), inability to be competitive with wages.  Available pool of experienced applicants, timing of students coming and going seasonally.  Hiring is done through word of mouth, online notices, in-store notices; university job board and local Job Center.  If you could locate anywhere, where would it be: o Downtown o Northeast Bozeman o Four Corners o West end of Huffine o MSU Innovation Campus  What do you like about your current location: o Easy access to I-90 for shipping. Central. o Downtown – close to services, culture, active main street. o Easy to get to, easy parking, close to MSU campus. o In the heart of the western expansion of Bozeman. o Don't like current location with too much traffic and no place to walk. Suburban.  I'm not a "Bozeman native," I moved here in 2003. So I realize I'm part of the "growth challenge." I believe there are ways we can grow responsibly, put infrastructure first (so we're not handling those issues in "reactive mode" five years from now), and foster a sense of community downtown and beyond, so we don't lose the fine qualities that drew us to Bozeman in the first place. We do need to look at establishing more live/work/eat/play hubs outside the Bozeman Main Street. That will be the toughest shift I imagine. Our single-street downtown is so beloved by so many, but as the valley continues to grow, that Main-centric mentality will get even harder to sustain. Thriving cities find a way to establish micro-hubs and self-sufficient mini communities in rays branching out from the main downtown. We don't have that yet, but it's where we need to go.  The City needs help implementing a system that would work more efficiently for small business owners. It shouldn't take as long as it does to get permits approved.  Thank you for this opportunity to give input. 334 City of Bozeman | Economic Development Strategy Update November 2016 Page 14 Montana Photonics Industry Alliance Member Survey (2014) The Photonics Alliance issues an annual survey to its membership. One specific question is “What are the three most important things that the city/county government could do to promote the success your organization?” This question helps guide specific actions the city should take to foster economic development. The three most common answers were:  Support the Montana Photonics Industry Alliance (20 percent).  Support a campaign to increase awareness of the growing Montana photonics industry and the attractiveness of this area for photonics companies and employees (20 percent).  Support infrastructure projects such as increased internet bandwidth and better business travel connections (20 percent). Strengths, Weaknesses, Opportunities, and Challenges (SWOT) The following strengths, weaknesses, opportunities, and threats (SWOT) are derived from stakeholder input, survey responses, and general research. Strength (internal) Weakness (internal)  High-wage and knowledge-based industry clusters  MSU and Gallatin College programs and increasing enrollment in both  Bozeman Yellowstone International Airport  Outdoor recreation opportunities  Vibrant downtown  High net-worth population  Small-town feel  Strong K-12 system  Sustainable culture  Regional retail hub (important for talent attraction)  I-90 access  City has great GIS data sharing capability and culture  Limited affordable housing  Low salaries (also a strength for business)  Limited rail freight loading  Isolated location  Lack of cultural diversity  Limited access to venture capital and startup ecosystem  Hard to attract senior level talent  City permitting process perceived as difficult  Broadband infrastructure  Limited site availability for business expansion  Lack of activities to support youth programs, especially teenagers  Lack of larger conference/convention facility Opportunity (external) Threat (external)  Yellowstone National Park tourist attraction  Big Sky Resort business leader attraction  Millennial talent pool is mobile and seeks quality location  Population growth in mountain states  MT #6 best state for business tax climate  Limited STEM education workforce  State dependence on energy economic base  Increase in fuel prices 335 City of Bozeman | Economic Development Strategy Update November 2016 Page 15 Economic Profile The following information provides a current snapshot of economic conditions in the city of Bozeman that provide direction regarding strategy actions. These data points can be used over longer periods of time as a point of reference in gauging if the City is achieving overall goals. Population Growth The city of Bozeman’s population increased from 27,509 in 2000 to 39,123 in 2014 for a 42.2 percent change in population. Population is projected to continue to grow at an annual rate of 4.2 percent. This trend will continue to compel the City to consider strategic infrastructure investments that can foster efficient development patterns that will support this growth. Figure 6. Percent Change in Population (2000 to 2014) Source: U.S. Department of Commerce. 2015. Census Bureau, American Community Survey Office, Washington, D.C.; U.S. Department of Commerce. 2000. Census Bureau, Systems Support Division, Washington, D.C. Produced by Economic Profile System (EPS) September, 2016. 336 City of Bozeman | Economic Development Strategy Update November 2016 Page 16 Employment Growth In line with population growth, employment grew at an average of 3.2 percent annually in Gallatin County from 2004 to 2014. Table 3. Gallatin County Annual Total Employment 2008 2009 2010 2011 2012 2013 2014 2008 to 2014 2010 to 2014 Gallatin County 49,081 45,324 45,043 46,419 47,718 50,315 55,533 6,452 10,490 Annualized Employment Growth -7.7% -0.6% 3.1% 2.8% 5.4% 10.4% 2.2% 5.4% Source: U.S. Census LEHD Leland Consulting Group. Commute Patterns Commute patterns reflect how much of the workforce lives and works within the city of Bozeman. Ideally, the workforce lives and works within the city to reduce congestion and retain spending dollars within the community. Table 4 shows there is an increase of employment and residents within the city between years 2010 and 2014. What is remarkable is the minimal increase in people commuting into Bozeman for a job and living outside the city. Instead there is an increase in people living and working in Bozeman, as well as the number of people living in Bozeman but working outside the city. What this suggests is that the workforce prefers to live in Bozeman. Therefore, if an employer locates a business within Bozeman they have a competitive advantage in providing a desired location that reduces commute times and congestion and more access to local sector businesses. Table 4. City of Bozeman Commute Patterns 2010 2014 Employment in City 24,384 27,317 Employed Individuals Living in City 13,737 18,266 Commute into City for Employment and Live Outside 16,370 16,637 Live and Work in City 8,014 10,680 Live in City but Leave for Employment 5,723 7,585 Source: U.S. Census LEHD Leland Consulting Group. 337 City of Bozeman | Economic Development Strategy Update November 2016 Page 17 Median Age The median age in Bozeman is 27.5 years versus the U.S. average of 37.4 years. The distribution of ages within Bozeman is shown in Figure 7. As evidenced, the Millennial cohort dominates the Bozeman population. This average age is largely influenced by Montana State University, but still has a significant influence on the culture and design of the community quality of life elements. Distribution of Employment Table 5 reflects the distribution of employment within Bozeman in comparison with U.S. averages. Of note is a smaller percentage of manufacturing employment at seven percent compared with a national average of 10.4 percent. This likely reflects the nature of small manufacturing facilities within the city. There is a higher percentage of arts and entertainment at 14.8 percent compared to the national average of 9.5 percent which reflects the unique tourism industry within Bozeman. According to projections by the U.S. Department of Labor, service-providing sectors are projected to capture 94.6 percent of all the jobs added between 2014 and 2024. This trend toward the service- producing sectors emphasizes the importance of focusing on talent based industries that require skills and some additional education. Figure 7. City of Bozeman Average Age (2014) Source: U.S. Department of Commerce. 2015. Census Bureau, American Community Survey Office, Washington, D.C.; U.S. Department of Commerce. 2000. Census Bureau, Systems Support Division, Washington, D.C. Produced by Economic Profile System (EPS) September, 2016. 338 City of Bozeman | Economic Development Strategy Update November 2016 Page 18 Table 5. Distribution of Employment by Industry (2014) Bozeman, MT U.S. Goods-Producing/Non-Service Ag, Forestry, Fishing & Hunting, Mining 2.2% 2.0% Construction 6.4% 6.2% Manufacturing 7.0% 10.4% Wholesale Trade 1.8% 2.7% Service Related Retail Trade 12.9% 11.6% Transportation, Warehousing, and Utilities 2.2% 4.9% Information 1.5% 2.1% Finance and Insurance, and Real Estate 4.6% 6.6% Professional, Scientific, Management, Admin, & Waste Management 11.4% 10.9% Education, Health Care, & Social Assistance 27.6% 23.2% Arts, Entertainment, Recreation, Accommodation, & Food 14.8% 9.5% Other Services, except Public Administration 3.8% 5.0% Public Administration 3.7% 4.9% Source: U.S. Department of Commerce. 2015. Census Bureau, American Community Sur vey Office, Washington, D.C. Produced by Economic Profile System (EPS) September, 2016. Income Distribution In the 2009 to 2014 period, the income category in the city of Bozeman with the most households was $50,000 to $74,999 (19.3 percent of households). The income category with the fewest households was $150,000 to $199,999 (2.5 percent of households). In the 2009 to 2014 period, the bottom 40 percent of households in the city of Bozeman accumulated approximately 10.7 percent of total income, and the top 20 percent of households accumulated approximately 52.6 percent of total income. Figure 8. City of Bozeman Household Income Distribution (2014) Source: U.S. Department of Commerce. 2015. Census Bureau, American Community Survey Office, Washington, D.C. Produced by Economic Profile System (EPS) September, 2016. 339 City of Bozeman | Economic Development Strategy Update November 2016 Page 19 This income distribution is summarized by a Gini coefficient, which is a commonly used measure of inequality. In the 2009 to 2014 period, the city of Bozeman had an average income distribution between high and low-income households (Gini coefficient of 0.47) similar to the U.S. average income distribution (Gini coefficient of 0.48). Education Attainment As discussed, the modern global economy thrives on a skilled workforce. As indicated in the following table, Bozeman is fortunate to have a highly-skilled workforce based on education attainment. This is especially important for the types of industry clusters driving the Bozeman economy that require a highly skilled workforce. Table 6. Educational Attainment (2014) Bozeman % of Total U.S. % of Total No High School Degree 2.5% 13.7% High School Graduate 97.5% 86.3% Associates Degree 6.6% 7.9% Bachelor's Degree or Higher 54.4% 29.3% Bachelor's Degree 35.6% 18.3% Graduate or Professional 18.8% 11.0% Source: U.S. Department of Commerce. 2015. Census Bureau, American Community Survey Office, Washington, D.C. Produced by Economic Profile System (EPS) September, 2016. Figure 9. Gini Coefficient (where 1 represents inequality) Source: U.S. Department of Commerce. 2015. Census Bureau, American Community Survey Office, Washington, D.C. Produced by Economic Profile System (EPS) September, 2016. 340 City of Bozeman | Economic Development Strategy Update November 2016 Page 20 Industry Clusters Industry clusters are groups of similar and related traded sector businesses in a defined geographic area that share common markets, technologies, worker skill needs, and which are often linked by buyer-seller relationships. Industry clusters represent distinct qualities of a community and help define what makes one community different from another. As they convey distinct qualities, it is important to be specific in the definition of a cluster. For example, rather than promoting “high- tech,” a community should focus on “software or photonics” to convey the type of product being manufactured and its unique workforce and supply chain needs. Promotion of clusters helps reinforce to existing businesses and interested outside talent the unique community assets and why it is good place to stay and grow. When interviewed, business leaders agreed with this approach in that it helps convey an understanding of the distinct industry assets in the region. The City has identified the following key industry clusters it can support and grow:  Photonics  Software/IT  Outdoor  Tourism/Recreation  Biotechnology Each cluster benefits from partnership with the significant higher education assets of Montana universities and colleges. Furthermore, the city’s infrastructure, unique assets, and existing company base serves to support these industries. In defining specific clusters and fostering collaboration, new business opportunities arise, workforce training needs can be met, and physical site expansion needs can be addressed. The following summaries by cluster will vary in the amount of detailed information depending on the level of business alliance organization behind each cluster and the research invested to date. Those with more information provide a good benchmark for the level of information desired from business retention efforts and fostering formal business alliances for each group. Photonics Overview Optics and photonics are a significant component of the southwestern Montana economy. On a per capita basis, Bozeman has one of the highest densities of optics companies found anywhere in the United States. Many of these companies were founded by Montana State University graduates, often through MSU technology transfer. 341 City of Bozeman | Economic Development Strategy Update November 2016 Page 21 Companies There are at least 30 photonics companies within the Bozeman region (http://www.montanaphotonics.org/members/). Anchor companies that founded the cluster and are larger employers include Quantel, ILX Lightwave, Lattice Materials Corporation, and FLIR. Sixty-three percent of the companies reported fewer than 20 employees, while 18 percent had 21 to 50 employees, and another 18 percent had 50 to 100 employees.2 A sizeable majority of the firms in the cluster were formed since 2000, and they tend to be young, small, and innovation intensive. Industry Growth Projections According to the following excerpt from Multiannual Strategic Roadmap 2014 – 2020 by the European Technology Platform Photonics21, the opportunities for the photonics is significant: “Photonics is everywhere around us: from communications and health, to materials processing in production, to lighting and photovoltaics and to everyday products like DVD players and mobile phones. Yet the full disruptive potential of photonics is only now becoming clear. New advances in photonics will revolutionize healthcare and provide new ways of detecting, treating and even preventing illness. In manufacturing, laser processing will be a basic prerequisite for high-volume, low-cost manufacturing.”3 The report continues to identify significant opportunities clearly conveying how photonics is becoming one of the most important industries for the future. According to a Montana Photonics Industry Alliance 2015 Member Survey, total industry employment is 517 and they forecast headcount growth rate of nine percent for the year. Distinct Resources Many of the companies have a strong connection to MSU’s Optical Technology Center (OpTec) and its associated nonprofit Spectrum Lab. OpTec plays a prominent role within the optics cluster as a networking center for research and talent development. Spectrum Lab was “spun out” of OpTec in 1999 to further development technologies from MSU’s research facilities. Spectrum Lab serves as a kind of optics “application incubator” for faculty and industry and as a bridge between MSU labs and the private sector.4 2 Imagining a Future for the Big Sky Optics Cluster, RTS Inc., October 2012. 3 Multiannual Strategic Roadmap 2014 – 2020 by the European Technology Platform Photonics21, April 2013. 4 Imagining a Future for the Big Sky Optics Cluster, Regional Technology Strategies, October 2012. 342 City of Bozeman | Economic Development Strategy Update November 2016 Page 22 Montana Manufacturing Extension Center (MMEC) is an important organization fostering growth of the cluster as well. The MMEC at Montana State University’s College of Engineering in Bozeman is a statewide manufacturing assistance center that provides technical support and training to Montana businesses. MMEC is also a part of the National Institute of Standards and Technology (NIST) nationwide network of centers created to assist small and mid-size manufacturers, the Manufacturing Extension Partnership (MEP). MMEC offers a wide array of services to Montana manufacturers including business management, design and product development, lean enterprise, process improvement, and quality systems services as well as a variety of training courses. Workforce The photonics industry is able to access a skilled workforce from both MSU and Gallatin College through the following programs. Montana State University:  Bachelor of Science (BS) Degree in: o Chemical Engineering o Computer Engineering o Industrial Engineering  Masters of Science (MS) Degree in Optics and Photonics  BS, MS, PhD in Physics Gallatin College:  Associate of Applied Science (AAS) Degree o Photonics, Laser, Optics Technology. o Design Drafting o Production Management Course for Manufacturing (proposed)  Certificate of Applied Science (CAS) Degree o Welding o Machining Industry Alliances The Montana Photonics Industry Alliance is a strong organization serving the Bozeman area. They perform annual surveys of members and have identified that they most need support from the City regarding organizational support and employee attraction. Through their industry collaboration they worked with Gallatin College to create the Photonics AAS degree that started Fall, 2016. 343 City of Bozeman | Economic Development Strategy Update November 2016 Page 23 Software/IT Overview The majority of software/IT companies within the Bozeman region provide Enterprise Software (SaaS) services. These are companies with a software distribution model in which a third-party provider hosts applications and makes them available to customers over the Internet. This distinguishes Bozeman’s clusters from other regions that may specialize in consumer-facing or gaming products. Companies Bozeman is fortunate to be home to a major facility of a globally recognized company, Oracle, which serves as a significant anchor company for the region. Other growing companies include Workiva, Zoot Enterprises, and Wisetail. Industry Growth Projections In 2016, spending on public cloud infrastructure as a service hardware and software is forecast to reach $38 billion, growing to $173 billion in 2026. SaaS and Platform as a Service (PaaS) portion of cloud hardware and infrastructure software spending are projected to reach $12 billion in 2016, growing to $55 billion in 2026.5 Trends driving the market growth include geographic expansion, industry customization, developer focus, expanding professional and managed services, and enhanced security, governance, and compliance. The Montana High-Tech Business Alliance (HTBA) includes software companies as well as high-tech manufacturers. The HTBA 2016 Member Survey indicates that Montana’s high-tech companies anticipate growing almost seven times faster than the Montana economy as a whole. HTBA members (23 percent of all responses) most often reported that attracting talent and hiring skilled technology workers was their firm’s largest impediment to growth. Distinct Resources A robust broadband network is critical for the growth of this industry. The City’s leadership role in planning this infrastructure is a significant action toward fostering the growth of this industry. Continuing to ensure access to convenient business flights to major software/IT regions is important for talent attraction and access to capital will be important as well. 5 Statistica: Public cloud Infrastructure as a Service (IaaS) hardware and software spending from 2015 to 2026, by segment (in billion U.S. dollars). 344 City of Bozeman | Economic Development Strategy Update November 2016 Page 24 Workforce The software industry differs slightly from the business survey results regarding source of hiring. As this industry has strong demand for talent that is highly mobile companies often extend beyond Bozeman and Montana to hire employees. However, they can access a skilled workforce from both MSU and Gallatin College through the following programs: Montana State University:  BS, MS, and PhD in Computer Science  Bachelor of Science Degree Computer Engineering Gallatin College:  Certificate of Applied Science (CAS) Degree o Network Administration Technology (Fall 2017) Industry Alliances The Montana High-Tech Business Alliance (HTBA) consists of more than 300 high tech and manufacturing firms and affiliates in Montana. It consists is a broad range of companies including pharmaceutical, semiconductor, software, and manufacturing using high-tech methods. If Bozeman wants to foster a distinct software cluster, it can benefit from a distinct industry alliance that is focused on their unique culture of collaboration, fostering startups, and addressing their need for talent. Outdoor Overview Leveraging the unparalleled access to outdoor recreation, Bozeman has a growing industry tied to this asset. The outdoor cluster consists of firms that design, develop, manufacture, market, distribute and sell apparel, footwear, and gear for active outdoor recreation. While manufacturing is a key component to the industry, it also hosts highly skilled knowledge-based workers in design, marketing, and managing product development. Companies A key Bozeman regional anchor company is Simms Fishing Products, with its significant brand awareness and large workforce. Other Bozeman companies include Mystery Ranch, Sklar Bikes, Buck Products, and Sitka. 345 City of Bozeman | Economic Development Strategy Update November 2016 Page 25 Industry Growth Projections Outdoor recreation is an economic powerhouse in the United States, each year generating $646 billion in consumer spending.6 Outdoor recreation in Montana generates $5.8 billion in consumer spending on gear, vehicles, trips, travel-related expenses, and more. Over the next five years, as total recreation expenditure expands, demand for hiking and outdoor equipment is anticipated to grow. Industry revenue is $4 billion within Montana, with an annual growth of 1.8 percent.7 Distinct Resources Outdoor manufacturers such as Simms place a high value on the Montana Manufacturing Extension Center (MMEC) due to its practical and meaningful consulting services that help a company improve production efficiencies. Bozeman’s easy access to the outdoors helps attract workers in this industry to the region. Workforce The outdoor industry is made of a variety of skills and degrees tied to design and manufacturing. Local industries benefit from tailored training programs offered by Gallatin College:  Associate of Applied Science (AAS) Degree o Design Drafting o Production Management Course for Manufacturing (proposed)  Apprenticeship o Sewing Apprenticeship - According to Gallatin College staff, they are currently working with Extended University-MSU, and Career Transitions (non-profit) and some outdoor industry manufacturers to put together an industrial sewing apprenticeship or short-term training, likely through a non-credit course path. Business Alliances Several Bozeman companies are members of the Outdoor Industry Association, which is a national organization focused on the broader advancement to encourage outdoor recreation. Local Bozeman manufacturing companies could benefit from an organized effort to promote their companies tied to the Bozeman tourism/recreation industry. There is a ready opportunity to leverage the messages and collaborations developed in the recent Bring it to Bozeman outdoor video. Additionally, they can continue to partner with higher-education partners to grow the workforce base. 6 Outdoor Recreation Economy, Outdoor Industry Association, 2016. 7 Climbing high: Revenue trends upward as recreational spending rises, IBIS World, September 2015. 346 City of Bozeman | Economic Development Strategy Update November 2016 Page 26 Tourism/Recreation Overview The tourism industry cluster consists of a very wide range of businesses that benefit from travelers. Buses, automobiles, airlines, rail, and other transportation companies bring travelers into an economic region. These consumers in turn purchase products and services offered by local lodging establishments, restaurants, amusement, recreational and entertainment establishments, and general retail outlets. This process creates many employment and business opportunities, all of which help sustain and expand the local economy.8 Companies This industry cluster is supported by numerous local sector businesses including hotels, restaurants, tour guides, and retailers. Industry Growth Projections In 2015, Yellowstone National Park experienced record visitation. One reason is that this iconic national park is a draw for many international visitors. Pair that with reduced visa requirements in China, for example, and there is a sudden boom. Nationally, the number of visitors from China to the U.S. currently ranks as the 7th highest visitor group. By 2020, Chinese visitors are expected to be one of the largest groups of visitors to the U.S.9 This trend is reflected in the National Park Service recent addition of Mandarin speaking translators at the Park. Projected growth in the industry is highlighted in Figure 10. 8 The Economic Review of the Travel Industry in Montana, Institute for Tourism & Recreation Research, University of Montana, December 2014. 9 Montana Economic Report, Bureau of Business and Economic Research, 2016. 347 City of Bozeman | Economic Development Strategy Update November 2016 Page 27 Figure 10. Total Travel Expenditures in the U.S. Source: The U.S. Travel Association, June 2016. Distinct Resources The Bozeman Yellowstone International Airport, direct access to Interstate 90, and nearby access to Interstate 15 in Butte are critical infrastructure assets for the tourism industry. The continual trend of the Bozeman Yellowstone International Airport outpacing Billings in passenger volume remained in 2015. Bozeman, with its population growth and nearby attractions (Yellowstone and ski resorts), should remain Montana's busiest airport for visitation in the state. Additionally, distinct assets such as Yellowstone National Park, Big Sky Resort, and Bridger Bowl Ski Area are important to the vitality of this industry. Workforce The tourism/recreation industry consists of a variety of skills and degrees. Local industries benefit from tailored training programs offered by MSU and Gallatin College: Montana State University:  BS, Hospitality Management Gallatin College:  Associate of Applied Science (AAS) o Culinary Arts AAS Fall 2017 348 City of Bozeman | Economic Development Strategy Update November 2016 Page 28 Business Alliances The Bozeman Convention and Visitor Bureau and the Bozeman Area Chamber of Commerce currently promote local businesses and attractions for visitors. There is an opportunity for these organizations to align events, marketing, and promotions to highlight and promote traded-sector outdoor companies. The alignment between tourism and outdoor gear marketing can effectively help the existing traded-sector companies expand their market base and revenues, which in turn allows them to grow the company. Biotechnology Overview Southwest Montana has developed its own distinctive biotech infrastructure that includes several medical/bioscience research institutes, hospitals with research and clinical trials capacity, and a very strong life sciences and related engineering presence within its two major universities. Nearly 61 percent of all bioscience jobs in Montana are in the Research, Testing and Medical Laboratories category, compared to 56.5 percent in the U.S. Bozeman has the largest concentration of bioscience companies, with 33 percent of all Montana companies being located in Bozeman.10 Companies The broader Southwest Montana bioscience cluster is anchored by the GlaxoSmithKline manufacturing facility in Hamilton, Montana. Within Bozeman, companies include Takeda, Microbion, ProPharma Group, and ADVR Inc. Industry Growth Projections Entering the second half of this decade, most life sciences organizations appear to be adopting an attitude of cautious optimism. Significant opportunities exist in the global marketplace but challenges exist as well. Spending growth in pharmaceuticals (pharma), biotechnology (biotech), and medical technologies (medtech) is projected to follow an upward trend due to increasing demand, but pricing challenges are still an issue. Industry margins are being eroded by high discounts, retail sector price controls, public sector purchasing policies, and the move to value-based care. Biotech drugs (vaccines, biologics) continue to gain traction in the life sciences sector. Of the top 10 pharma products by sales in 2014, the majority of them were biotech drugs, including monoclonal antibodies and recombinant products. Treatments for rheumatoid arthritis, Hepatitis C, and cancer figure most prominently in the list of the most sales generating drugs.11 10 Montana Bioscience Cluster Revisited, RTS Inc., 2013. 11 Global life sciences outlook, Deloitte, 2016. 349 City of Bozeman | Economic Development Strategy Update November 2016 Page 29 GlaxoSmithKline shut down its vaccine R&D branch within its Hamilton facility and laid off all of the unit’s 27 employees in 2015. (No layoffs have occurred for the manufacturing portion of the Hamilton site, where the bulk of the company’s employees work.) In addition, Takeda Pharmaceutical Company will close its vaccine facility in Bozeman by 2017 as part of a company- wide consolidation. While these companies have announced their relocation, some staff have indicated that they will not leave Bozeman and instead start new companies. This is a significant testament to Bozeman’s ability as a community to retain talent and continue to grow industry clusters from the ground up. Furthermore, according to interviews with local business bioscience leaders, the industry holds promise with the recent addition of Dr. Renee Reijo Pera highlighted below, which will only further support the talent base determined to stay in Bozeman. Distinct Resources Montana State University lab facilities and technology transfer services are critical to the growth of this industry. Dr. Renee Reijo Pera, an internationally recognized stem cell scientist and former director at Stanford University is the new Vice President for Research and Economic Development at Montana State University.12 According to business leaders, there is approximately 40,000 square feet of private wet lab space available for lease. This is a highly valuable asset that should be highlighted and promoted to retain and grow local companies. Additionally, development of the Montana State University Innovation Campus has gained momentum and is attracting interest in development. Workforce The biotech industry is able to access a skilled workforce from MSU through the programs listed below. Gallatin College currently does not have specific training programs tied to this cluster, however staff indicated that they are willing to work with the industry leaders to develop new programs as needed. Montana State University:  Bachelor of Science Degree in Biotechnology  PhD in Bioengineering Business Alliances Montana Bioscience Alliance is an organization that serves as a hub for Montana’s biotechnology companies, entrepreneurs, laboratories, hospitals, clinics, and universities to commercialize, grow, and sustain globally competitive bioscience companies. Business leaders expressed in interviews that it would be beneficial to work with this organization with more concentrated focus on Bozeman companies and MSU opportunities for commercialization. 12 Bioscience Under the Big Sky, Montana Bioscience Alliance, 2014. 350 City of Bozeman | Economic Development Strategy Update November 2016 Page 30 The Strategy Strategies must continuously evolve as economic situations change, actions are accomplished, and new opportunities arise. Current Strategy The City of Bozeman has established a solid approach to economic development with its current strategy that is based on the three economic development pillar strategies below. 1. Business Growth: Support retention and growth of existing businesses, while welcoming and encouraging new businesses. 2. Infrastructure: Invest in infrastructure as a mechanism to drive economic development. 3. Workforce: Support education and workforce development initiatives to provide businesses with qualified workers. Strategy Update The strategy update builds on the current work to date with a consideration of broader economic development trends. Specifically, within this recent economic growth cycle, the nation has seen large regions boom with innovation and employment that largely benefits a workforce with significant education and skills development. Many of these areas are now struggling with complex issues tied to increased traffic and limited affordable housing for the middle and low-income workforce. The city of Bozeman is at a critical point in growth and has an opportunity to learn from these larger regions. Fortunately, civic leadership is looking ahead to retain the exceptional quality of life in the city, while also growing the economic base that is so vital to the health of a community. A critical question that was heard throughout the development of this strategy was “Can we maintain the high quality of life Bozeman citizens expect while increasing wages to compete regionally and nationally?” The answer is yes with a commitment to the following outcomes, which are the foundation of this strategy update, and shape the three explicit goals outlined below. Strong Economic Base  Increase middle and high wage traded sector employment and diversify the economic base by supporting existing businesses and strategically growing the local supply chain.  Support local sector businesses with a seamless permitting process and awareness about existing small business programs.  Invest in infrastructure projects identified on the capital improvement plan (CIP) that the business community needs and wants by leveraging the City’s proactive culture to foster collaboration across departments and commitments to identified projects. 351 City of Bozeman | Economic Development Strategy Update November 2016 Page 31 Strong Community  Protect the outdoor environment by guiding efficient industry site development within the city limits.  Foster an environmentally and economically sustainable community with an active transportation network (transit networks, bicycle routes, trails, and sidewalks) that employers and employees desire.  Offset livability costs for citizens with conscious infrastructure and workforce investments that improve access to job opportunities with the understanding that several other stakeholders are focused specifically on affordable housing. Goal 1: Expand the Existing Base Why this Goal? The Bozeman area is fortunate to already host a robust base of knowledge-based industries that are poised for more growth. However, these existing industries are challenged with attracting a skilled workforce. Due to Bozeman’s high quality of life, it can attract and retain this needed talent with a concentrated message and outreach effort. When there is a larger employment base, it is more attractive to employees because they have options for career growth. In turn, once the employment base grows, competition will occur and ultimately increase wages. Objective 1.1 Develop strategic approach to business retention visits City staff must have a good understanding of the existing industry base to effectively support it. Meeting with businesses and documenting opportunities and challenges is an important first step to gain industry insights, resolve challenges, and foster collaboration. Furthermore, based on the significant amount of appreciation for outreach identified in the survey, it is clear this effort is desired and needed. Actions  Prepare list of existing targeted traded-sector companies that are within industry clusters. Become familiar with workforce services and grant programs that can help business. May want to include workforce representative as appropriate on visits.  Identify companies that are facing retirement and need to transition ownership or need assistance in scaling up facility.  Based on interviews with businesses, identify any barriers to growth. Compile responses from business to find common themes of strengths and weaknesses of working in Bozeman.  Obtain quotes from CEOs to authentically promote Bozeman. 352 City of Bozeman | Economic Development Strategy Update November 2016 Page 32 Objective 1.2 Invest in infrastructure and employment areas desired by traded sector business expansion It is important to understand where different industries can locate. For example, bioscience needs to be near MSU research facilities and photonics is sensitive to vibration and can’t be near rail. With this understanding of site needs, the appropriate infrastructure improvements can be made in the right locations to foster growth. City staff has the unique role in guiding infrastructure investments, land use policy, and the permitting process. Removing barriers to site development and proactively fostering site readiness tied to business needs is a critical role in economic development. Furthermore, development in the desired downtown core is more complex than standard “greenfield” development and requires hands-on engagement with staff. Actions  Work with industry clusters to understand their unique siting needs and help them find locations. Leverage planning and investment in broadband with site determination process.  Establish list of infrastructure needs tied to facilitation of site development.  Collaborate with Public Works, Finance, and Community Development Department to determine if the needed infrastructure serves multiple properties and is on the Capital Improvement Plan (CIP).  Ensure enough appropriately zoned land in desired employment areas.  Based on this understood need, apply for grants or apply Tax Increment Financing (TIF) funds for projects in appropriate districts. Consider applying for a federal EDA Public Works grant for infrastructure serving multiple employment sites. Objective 1.3 Foster industry cluster collaboration Industry clusters can thrive with a concentrated effort to bring research, workforce training, and business together. In doing so, innovation is commercialized, business opportunities are fostered, and training needs addressed. Cluster collaboration is realized through events, business assistance, infrastructure investment, workforce training, mentorships, education, and marketing. Actions  Continue to provide staff support for the photonics industry alliance.  Provide funding and staff support to implement a software industry alliance that includes stakeholder representatives.  Provide funding and staff support to implement an outdoor industry alliance that includes stakeholder representatives. 353 City of Bozeman | Economic Development Strategy Update November 2016 Page 33  Provide staff support to engage existing tourism organizations to align events, marketing and promotions to highlight and promote local outdoor companies.  Provide staff support to engage Montana Bioscience Alliance locally to further a bioscience industry alliance that includes stakeholder representatives.  Determine if there are gaps in the supply-chain requiring a specific company presence to bolster industry cluster strength. Partner with industry leaders to fill supply-chain gaps with known sites, market demand, and workforce opportunities. Objective 1.4 Strategically market for talent attraction The number one asset and need for any industry is talent. In expanding the existing base, it is important for businesses to easily retain and attract talent. In preparing the strategy, almost all industry sectors expressed the need to build one compelling website that aggregates the business case for Bozeman and why talent will want to come here. Additionally, in the business survey responses it was expressed that limited pools of applicants and no central site for postings is a barrier to hiring. The website could serve as important tool as a portal for hiring. Actions  Pending private industry match, hire consultant to build basic website for talent attraction that supports all industries. Consider annual maintenance in budget and strategy to engage industry for use and upkeep. Based on meetings with business groups and BRE visits, determine key messages to attract talent. Goal 2: Support Business Why this Goal? New businesses account for nearly all net new job creation and almost 20 percent of gross job creation. Furthermore, companies less than one-year-old have created an average of 1.5 million jobs per year over the past three decades.13 People generally start businesses in the places they are already located, and many of the resources they access are at the local or regional level. New local sector businesses are important as they make a community distinct, provide amenities to attract young professionals and families that drive the new economy, and serve the tourist industry. Many of these businesses need “brick-and-mortar” locations often requiring tenant improvements and building permits, which can be a daunting process. These businesses often benefit greatly from business planning and consulting as well. For these business owners, having one point of contact to navigate the process of starting a new business is extremely valuable. 13 The Importance of Young Firms for Economic Growth, Kaufman Foundation, September 13, 2015. 354 City of Bozeman | Economic Development Strategy Update November 2016 Page 34 New traded sector startups generally stem from university research or an existing industry cluster. These new businesses have limited space needs and may just be starting out of the home or garage. These businesses need access to capital and industry networks for collaboration and support. Objective 2.1 Provide resources to local businesses to help them grow and expand Often owners of new businesses have never experienced permitting and development of a business place nor are they aware of the many programs offered to support their growth. City staff has a unique role as an important point of contact for these new business owners and can make the process more seamless and supportive. Actions  Create a role for a specific person in economic development department to be first stop for permitting and process concierge. Introduce businesses to existing small business programs.  Continue to proactively share GIS data and information to help businesses determine new locations. Objective 2.2 Support existing startup infrastructure It is important to support an ecosystem where startups are supported and celebrated to create new jobs. An entrepreneurial culture not only serves to create new jobs, but it provides an environment that supports “trailing spouses:” a person who follows his or her life partner to another city because of a work assignment. In a tough hiring climate, promoting this asset is important. Actions  Collaborate with the startup organization to define roles and objectives. The City’s role is to help promote awareness of programs. Promote existing programs through business license renewal or City mailings.  Promote the MSU Blackstone Launchpad, which is an entrepreneur resource for students, alumni, and faculty offering coaching, ideation, and venture creation support.  Collaborate with MSU Tech Link (formerly Tech Transfer Office) staff to foster partnerships with industry clusters.  Promote the Blue Ocean Innovation Center, which is an existing private co-working space, as resource for startups.  Promote Startup Bozeman as networking resource for startups. 355 City of Bozeman | Economic Development Strategy Update November 2016 Page 35 Goal 3: Regional Connections Why this Goal? Complex issues driving income stratification and workforce skills gaps are making it more difficult for all citizens to realize positive personal economic growth in keeping with business growth. In order to plan for this modern economy, communities must consciously foster a diverse economic base and skilled workforce to weather inevitable negative portions of the economic cycles. Objective 3.1 Regional focus The economic development issues facing Bozeman do not adhere to geopolitical boundaries. In order for the City to effectively achieve goals of efficient, sustained and diverse economic growth, it must collaboratively work with County staff. Furthermore, if new financing tools are to be secured, it will take a unified regional voice. Actions  Establish economic development implementation group with County economic development, planning and public works staff.  Consider how tourism funds can be incorporated into economic development efforts.  Align economic development legislative agendas on a regional level for stronger voice and actions to preserve existing economic development tools and diversified funding stream for new opportunities.  Support Gallatin College in finding a location for a 100,000-square-foot facility and aligning regional funding. Objective 3.2 Workforce training partnerships To succeed in the modern global economy people must develop skills. In order to ensure economic opportunities for Bozeman citizens, it is important to foster interest in job opportunities at a young age and make training programs readily available. Actions  Build project-based learning partnerships between industry and K-12 programs. Have students visit manufacturing facilities to make education relevant.  Continue to support Gallatin College and training programs by commuting needs of businesses.  Explore opportunity for a coding school. These are fully-immersive coding boot-camp programs and a part-time course designed to produce or enhance highly employable software developers ready to work in Montana’s thriving community of startups and tech businesses. 356 City of Bozeman | Economic Development Strategy Update November 2016 Page 36 Objective 3.3 Strategically invest Urban Renewal With a conscious investment in active transportation, the City provides the crucial infrastructure to foster affordable lifestyle (not just affordable housing). With a focused effort to promote infill and building housing and employment along corridors, individuals are less compelled to own an automobile, which translates into $9,000 in personal annual savings. Actions  Understand where different types of workforce lives and their employment locations. Determine if there are commute barriers/opportunities.  Collaborate with transit authority to determine if routes and service are matching with employer and employee locations.  Support efforts to build higher-density housing near transit and active transportation routes.  Enhance bike and pedestrian connections throughout the city to offer low cost active transportation options. End of document. 357 City of Bozeman | Economic Development Strategy Update November 2016 Appendices Appendix A: Action List Appendix B: Stakeholder List Appendix C: Commission Resolution 358 Business Growth Infrastructure Workforce Actions and Metrics 2017 2018 2019 Years 4 and 5 Staff and Resource Partner Metric Outcome Expand the Existing Base √ Prepare list of existing targeted traded-sector companies that are within industry clusters. Become familiar with workforce services and grant programs that can help business. May want to include workforce representative as appropriate on visits. X X X X Project Manager / new staff Prospera, Chamber, Gallatin College, MSU, and other similar partners Identify how many business visits made in what sector. How many training programs utilized by business and what skills traiing is provided. Identify companies that are facing retirement and need to transition ownership or need assistance in scaling up facility. X X X X New staff Manufacturing Partnership List how many companies are facing this situation and resolution by what organization. Based on interviews with businesses, identify any barriers to growth. Compile responses from business to find common themes of strengths and weaknesses of working in Bozeman. X X X X New staff Brokers, developers, engineers Identify the barriers to growth and how are they resolved by staff. Obtain quotes from CEOs to authentically promote Bozeman.X X X X New staff NA Document quotes and utilize on website. √√ Work with industry clusters to understand their unique siting needs and help them find locations. Leverage planning and investment in broadband with site determination process. X X X X Project Manager Brokers, developers, engineers, MSUIC Identify how many infill projects were developed. Establish list of infrastructure needs tied to facilitation of site development.X X X X Project Manager Brokers, developers, engineers Document needed infrastructure projects. Collaborate with Public Works, Finance and Community Development departments to determine if the needed infrastructure serves multiple properties and is on the captial improvement plan. X X X X Project Manager City staff Identify how many ED projects on CIP and where. Ensure enough appropriately zoned land in desired employment areas.X X X Project Manager Community Development Department Identify how many sites available for expansion and where. Based on this understood need, apply for grants or apply Tax Increment Financing (TIF) funds to projects in appropriate districts. Federal EDA Public Works grant for infrastructure serving multiple employment sites. X X Project Manager City staff Identify how many grants and dollars have and/or can be obtained to fund infrastructure. √√ Continue to provide staff support for the photonics industry alliance. X X X X Director / Project Manager Photonics companies, MSU, and Gallatin College Determine barriers to growth within industry and how they align with regional legislative agendas. Build industry support for determined infrastructure needs. Provide funding and staff support to implement a software industry alliance that includes stakeholder representatives.X X X New staff and $10,000 Software companies, MSU, and Gallatin College Organization Chair identified and first meeting held. Provide funding and staff support to implement an outdoor industry alliance that includes stakeholder representatives. X X New staff and $10,000 Outdoor companies, MSU, MMEC and Gallatin College Organization Chair identified and first meeting held. Provide staff support to engage existing tourism organizations to align events, marketing and promotions to highlight and promote local outdoor companies. X X New staff Tourism organization and chamber Staff attending meetings to determine if there is an opportunity to align with outdoor industry. Provide staff support to engage Montana Bioscience Alliance locally to further a bioscience industry alliance that includes stakeholder representatives. X X New staff Biotechnology companies, MSU, and Gallatin College Organization Chair identified and first meeting held. Determine if there are gaps in the supply-chain requiring a specific company presence to bolster industry cluster strength. Partner with industry leaders to fill supply-chain gaps with known sites, market demand, and workforce opportunities. X X X Director / new staff Industry cluster organizations Identify company gaps internally and outreach strategy to address. √√ Pending private industry match, hire consultant to build basic website for talent attraction that supports all industries. Consider annual maintenance in budget and strategy to engage industry for use and upkeep. Based on meetings with business groups and BRE visits, determine key messages to attract talent. X X $15,000 + maintenance Industry cluster organizations Website created. Business attracts talent more easily. Glossary Strategy Overall document that guides economic development department workplan for up to five years. Goal An overarching principle that guides decision making.Objective Specific area of focus to implement goal.Action Specific task undertaken by staff to meet objective.Outcome Three Pillar Strategies Result of actions. Objective 1.3 Foster industry cluster collaboration Objective 1.4 Strategically market for talent attraction BOZEMAN ECONOMIC DEVELOPMENT STRATEGY (2017 to 2022) Objective 1.1 Develop strategic approach to business retention visits Objective 1.2 Invest in infrastructure and employment areas desired by traded sector business Business opportunities are fostered, innovation encouraged, training needs addressed, and barriers removed, all strengthening and growing industry base. Local industries grow with the removal of barriers to growth and nuturing of assets. Construction of infrastructure to employment areas desired by industry. 359 Business Growth Infrastructure Workforce Actions and Metrics 2017 2018 2019 Years 4 and 5 Staff and Resource Partner Metric Outcome Three Pillar Strategies BOZEMAN ECONOMIC DEVELOPMENT STRATEGY (2017 to 2022) √ Create a role for a specific person in ED to be first stop for permitting and process concierge. Introduce businesses to existing small business programs.X X X X New staff DDA, SCORE, SBA, County, Chamber, and similar partners Identify how many businesses supported and the services provided. Continue to proactively share GIS data and information to help business determine locations for new business to help determine where infrastructure investments should be made. X X X X Director / new staff City staff Identify how many business licenses issued annually in what sector and where. √ Collaborate with the start-up organizations to define roles and objectives. City’s role is to help promote awareness of programs. Promote existing programs through business license renewal or City mailings. X X X X Director / new staff Launchpad, Tech Link, Blue Ocean, Startup Bozeman, and other Document number of promotions provided for each start-up organization. Promote the MSU Blackstone Launchpad, which is an entrepreneur resource for students, alumni, and faculty offering coaching, ideation, and venture creation support. X X Director / new staff Startup Organization Highlight information in website. Collaborate with MSU Tech Link (formerly Tech Transfer Office) staff to foster partnerships with industry clusters. X X Director / new staff Startup Organization Highlight information in website. Promote the Blue Ocean Innovation Center, which is an existing private co- working space, as resource for startups.X X Director / new staff Startup Organization Highlight information in website. Promote Startup Bozeman as networking resource for startups. X X Director / new staff Startup Organization Highlight information in website. √√√ Establish economic development implementation group with County economic development, planning and public works staff.X X X X Director County Organize committee and hold at least two meetings. Consider how tourism funds can be incorporated into economic development efforts.X X X Director Convention and Tourism Bureau, Chamber, and other similar partners Meet with partners and identify potential projects for funding that support both tourism and economic development. Align economic development legislative agendas on a regional level for stronger voice and actions to preserve existing economic development tools and diversified funding stream for new opportunities. X X Director Chamber and other similar partners Prepare aligned legislative agenda items for focused efforts. Identify how industry leaders can specific support efforts. Support Gallatin College in finding a location for a 100,000 square foot facility and aligning regional funding.X X Director Gallatin College, County, Chamber, Prospera, and other similar partners Work with partners to determine specific college needs and fundraising strategy. Leverage established partnerships. √ Build project-based learning partnerships between industry and K-12 programs. Have students visit manufacturing facilities to make education relevant. X X X X Director / new staff Gallatin College, MSU, industry organizations Align with ongoing efforts to define and promote programs when visiting businesses. Continue to support Gallatin College and training programs by commuting needs of businesses. X X X X Director / new staff Gallatin College, industry organizations Document training needs identified in business visits and document follow up as to how need is met. Explore opportunity for a coding school. These are fully-immersive coding boot-camp programs and a part-time course designed to produce or enhance highly employable software developers ready to work in Montana’s thriving community of startups and tech businesses. X X Director / new staff Sofware companies, Gallatin College, MSU Based on business visits determine industry support and need. Document need and next steps with partners. √ Understand where different types of workforce lives and employment locations. Determine if there are commute barriers/opportunities.X X X X Project Manager Brokers, developers, engineers Map desired areas and if there are infrastructure gaps. Collaborate with transit authority to determine if routes and service are matching with employer and employee locations. X X X X Project Manager HRC, businesses Map employment and employee areas and desired transit routes. Determine opportunities for new services lines and necessary revenues. Support efforts to build higher-density housing near transit and active transportation routes.X X X X Project Manager Community Development Department Document and map new housing projects. Enhance bike and ped connections throughout city to offer low cost active transportation options.X X X X Project Manager Public works Document and map new projects. Objective 2.1 Provide resources to local businesses to help them grow and expand Objective 2.2 Support existing startup infrastructure Objective 3.1 Regional focus Objective 3.2 Workforce training partnerships Objective 3.3 Strategically invest Urban Renewal Business starts and grows more easily. Regional Connections Local workforce is strengthened with enhanced skills and training. Community has awareness of existing start-up community and more start-ups may emerge. City builds the type of place employees and employers want to live and work in. City and County partners effectively and proactively address complex issues facing the region. Support Business 360 City of Bozeman | Economic Development Strategy Update November 2016 Stakeholder List City Staff Craig Woolard, Public Works Shawn Kohtz, Public Works Chris Saunders, Community Development Natalie Meyer, Sustainability Mitchell Overton, Parks and Recreation State and Community Partners and Resource Providers Paul Reichert, the Prospera Business Network Rob Gilmore, Northern Rocky Mountain EDD Chris Naumann, Downtown Bozeman Partnership Karyl Tobel, Montana Department of Commerce Heather Grenier, Human Resource Development Council Tracy Menuez, Human Resource Development Council Jackie Haines, Human Resource Development Council Stephanie Gray, Gallatin College Bob Hietala, Gallatin College Warren Vaughan, Gallatin County Daryl Schliem, Bozeman Area Chamber of Commerce Les Craig, Blackstone LaunchPad and the Montana State University Innovation Campus; Anya Frey, Small Business Development Center at Montana State University Sarah Ferguson, Montana Community Development Corporation Luke Howard, Southwest Montana Building Industry Association Business Leaders Jim Ness, Big Sky Western Bank Bob Gieseke, Rocky Mountain Bank Matt Johnson, First Interstate Bank Andrew Hull, Elixiter KC Walsh, Simms Fishing Products Andy Wunch, Sitka Gear Rob Irizarry, Oracle Justin Bigert, Wisetail Ken Fichtler, Lattice Materials, Startup Bozeman Michael Monaghan, Beartooth Radio Cody Sauer, StartUp Bozeman Bob Wall, Iron Core Labs Robert Goodwin, Takeda Pharmaceuticals Larry Johnson, Montana Photonics Industry Alliance Pete Roos, Bridger Photonics Tim Sheehy, Bridger Aerospace 361 COMMISSION RESOLUTION NO. 4730 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ADOPTING THE 2016 ECONOMIC DEVELOPMENT STRATEGY UPDATE. WHEREAS, On August 3, 2009, via Commission Resolution 4195, the Bozeman City Commission (the "Commission") adopted Bozeman's 2009 Economic Development Plan (the 2009 Plan"); and WHEREAS, the 2009 Plan established an advisory committee, the Economic Development Council, to review the City of Bozeman's development review and permitting process, evaluate development issues and make recommendations for policy and procedure changes to the Commission; and WHEREAS, the 2009 Plan designated a qualified city employee with economic development responsibilities and a role as the community business advocate in coordination with the Economic Development Council on the implementation of the 2009 Plan; and WHEREAS, the recommended priorities identified in the 2009 Plan's Implementation Matrix that could be addressed and completed have been; and WHEREAS, local economic conditions present upon adoption of the 2009 Plan have changed; WHEREAS, the Economic Development Council led the effort to coordinate internal and external stakeholders and supports the 2016 Economic Development Strategy Update (the 112016 Update") and the recommendations contained therein; and WHEREAS, the Commission remains committed to facilitating mid- and high wage job growth and economic strength and diversification in the City and the region through updated and timely economic development planning, strategy and policy updates; and WHEREAS, the Commission supports the primary tenets of the 2016 Update: a) retention and growth of existing businesses, while welcoming and encouraging new businesses; and b) investments in infrastructure as a mechanism to drive economic development; and Page 1 of 3 362 Resolution 4730, Adoption ofthe City ofBozeman's 2016 Economic Development Strategy Update c) education and workforce development initiatives to provide businesses with qualified workers. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, that: Section 1 The 2016 Economic Development Strategy Update is hereby adopted and shall be as follows: See Exhibit A. Section 2 Effective Date. This resolution shall be in full force and effect upon passage. PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 14th day ofNovember, 2016. CARSON TAYLOR Mayor ATTEST: OF! BO ' ROBIN CRO1UdH A , City Clerk -- 3 C. u Page 2 of 3 363 Resolution 4730, Adoption ofthe City ofBozeman's 2016 Economic Development Strategy Update APPR VED AS T FORM: GREG kDELIVAN City Attorney Page 3 of3 364