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HomeMy WebLinkAbout02-07-23 City Commission Meeting Agenda & Packet MaterialsA.Call to Order - 6:00 PM - Commission Room, City Hall, 121 North Rouse B.Pledge of Allegiance and a Moment of Silence C.Changes to the Agenda D.FYI E.Commission Disclosures F.Approval of Minutes F.1 Approve the Regular Meeting Minutes from: January 10, 2023 January 24, 2023  Approve the Special Meeting Minutes from: January 25, 2023  Approve the Executive Session Minutes from: December 6, 2022 (distributed separately)(Maas) G.Consent THE CITY COMMISSION OF BOZEMAN, MONTANA REGULAR MEETING AGENDA Tuesday, February 7, 2023 This meeting will be held both in-person and also using Webex, an online videoconferencing system. You can join this meeting: Via Webex: 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, channel 190, or attend in-person United States Toll +1-650-479-3208 Access code: 2555 693 5822 If you are interested in commenting in writing on items on the agenda please send an email to agenda@bozeman.net prior to 12:00pm on the day of the meeting. Public comments will be accepted in-person during the appropriate agenda items. You may also comment by visiting the Commission's 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 hybrid meeting. As always, the meeting will be streamed through the Commission's video page and available in the City on cable channel 190. 1 G.1 Accounts Payable Claims Review and Approval (Waters) G.2 Approval of Depository Bonds and Pledged Securities as of December 31, 2022 (Hodnett) G.3 Authorize the Mayor to Sign the 2131 Graf Street Minor Subdivision Preliminary Plat Findings of Fact and Order(Montana) G.4 Authorize the City Manager to Sign a Notice of Award and Purchase Agreement for One (1) New 2022 Ford F550 Metro Sized Truck Mounted Attenuator (TMA)(Van Delinder) G.5 Authorize the City Manager to sign a Notice of Award to Purchase a Dump Truck Replacement in Utilities Department(Pericich) G.6 Authorize the City Manager to Sign an Irrevocable Offer of Dedication and a Hold Harmless Agreement with Gallatin County for Gallatin County Courts Site Plan (22186)(Schultz) G.7 Authorize the City Manager to Sign an Amendment 1 to the 2022 CIPP Project with DOWL, LLC to Facilitate the Bidding and Construction Phases of the Project(Gamradt) G.8 Ratify the City Manager's Signature on Early Work Amendment 1 for the Fire Station 2 Relocation Project(Henderson) G.9 Resolution 5464 A Resolution of Intent of the Bozeman City Commission to Create Special Improvement District (SID) 778 for the Purpose of Undertaking Certain Local Improvements to Bogert Place from South Church Avenue to East Story Street and Financing the Costs Thereof(Gamradt) G.10 Resolution 5474 Approving Change Order 2 to the WRF Solids Dewatering Building Expansion and Headworks Improvement Project(Heaston) G.11 Resolution 5476 Authorizing Prime Change Order 2 and Guaranteed Maximum Price Amendment 4 with Martel Construction, Inc. for the Construction of the Bozeman Public Library Renovation Project(Henderson) G.12 Resolution 5477 Adopting the Update to the Fair Market Value of Land for Cash-in-Lieu of Parkland Calculations(Jadin) H.Public Comment This is the time to comment on any matter falling within the scope of the Bozeman City Commission. There will also be time in conjunction with each agenda item for public comment relating to that item but you may only speak once. Please note, the City Commission cannot take action on any item which does not appear on the agenda. All persons addressing the City Commission shall speak in a civil and courteous manner and members of the audience shall be respectful of others. Please state your name and address in an audible tone of voice for the record and limit your comments to three minutes. Written comments can be located in the Public Comment Repository. I.Action Items I.1 Continue the Public Hearing for a Zone Text Amendment to Modify the City’s 2 Development Code to Restrict Greek Letter Organizations (GLOs) to the R-4, R-O, B-2, B-3, REMU Zoning Districts as Principal Uses, and Conditionally in the R-3 Zoning District, Application 22270 to April 4, 2023.(Rogers) I.2 Northwest Crossing Phase 2 Preliminary Plat Application, to Subdivide Five Restricted Development Lots Platted with Northwest Crossing Phase 1 into 264 Developable Lots with Associated Stormwater, Open Space, City Park, Easements, and Right-of-way, Located Southwest of the Corner of Baxter Lane and North Cottonwood Road, Application 22129 (Quasi-Judicial)(Garber) I.3 Saccoccia Minor Subsequent Subdivision Preliminary Plat (Quasi-judicial)(Montana) I.4 Resolution 5478 A Resolution Approving the Cloverleaf Project in the Northeast Urban Renewal District as an Urban Renewal Project; Making Findings with with Respect Thereto and Approving the Use of Tax Increment Revenues to Reimburse Eligible Costs Thereof and Approving a Related Development Agreement(Fine) I.5 Authorize the City Manager to Sign the Development Agreement for Provision of Utilities and Affordable Housing with Virga Venture II(Fine) J.Appointments J.1 Appointment to the Community Development Advisory Board(Maas) K.FYI / Discussion L.Adjournment City Commission meetings are open to all members of the public. If you have a disability that requires assistance, please contact our ADA Coordinator, Mike Gray, at 582-3232 (TDD 582-2301). Commission meetings are televised live on cable channel 190 and streamed live at www.bozeman.net. In order for the City Commission to receive all relevant public comment in time for this City Commission meeting, please submit via www.bozeman.net or by emailing agenda@bozeman.net no later than 12:00 PM on the day of the meeting. Public comment may be made in person at the meeting as well. 3 Memorandum REPORT TO:City Commission FROM:Taylor Chambers, Deputy City Clerk Mike Maas, City Clerk Jeff Mihelich, City Manager SUBJECT:Approve the Regular Meeting Minutes from: January 10, 2023 January 24, 2023 Approve the Special Meeting Minutes from: January 25, 2023 Approve the Executive Session Minutes from: December 6, 2022 (distributed separately) MEETING DATE:February 7, 2023 AGENDA ITEM TYPE:Minutes RECOMMENDATION:I move to approve the combined City Commission minutes as submitted. STRATEGIC PLAN:1.1 Outreach: Continue to strengthen and innovate in how we deliver information to the community and our partners. BACKGROUND:In 2013, The Clerk’s Office identified goals related to the Commission’s priority of Improving Technology Utilization and Proficiency. Improvements included: • Live streaming broadcast of the City Commission Meeting • Meeting efficiency • Better access of meeting information for staff and the public • Time savings • Streamlined approach to citizen involvement and public comment In addition to the City Commission, many Citizen Advisory Boards utilize the system as well. Beginning January 5, 2021 meetings in the Granicus platform have been closed captioned. Those captions are searchable using the advanced search option on our video view page. Users are always welcome to contact the City Clerk’s Office at 582-2320 or email agenda@bozeman.net for assistance. UNRESOLVED ISSUES:None 4 ALTERNATIVES:As determined by the Commission. FISCAL EFFECTS:None Attachments: 01-10-23 City Commission Meeting Minutes.pdf 01-24-23 City Commission Meeting Minutes.pdf 01-25-23 City Commission Special Meeting Minutes.pdf Report compiled on: January 25, 2023 5 Bozeman City Commission Meeting Minutes, Tuesday, January 10, 2023 Page 1 of 11 THE CITY COMMMISSION MEETING OF BOZEMAN, MONTANA MINUTES Tuesday, January 10, 2023 Present: Cyndy Andrus, Terry Cunningham, I-Ho Pomeroy, Jennifer Madgic, Christopher Coburn Absent: None Excused: None Staff Present at the dais: City Manager (CM) Jeff Mihelich, City Attorney (CA) Greg Sullivan, Deputy City Clerk (DCC) Taylor Chambers. A) 00:02:40 Call to Order - 6:00 PM - Commission Room, City Hall, 121 North Rouse B) 00:02:43 Pledge of Allegiance and a Moment of Silence C) 00:03:35 Changes to the Agenda D) 00:03:39 Public Service Announcements D.1 The Community Development Board and the Economic Vitality Board are both currently accepting applications until January 20. The application can be found at www.bozeman.net/boards. E) 00:04:01 FYI CM Mihelich gave the Commission an update on Short Term Rentals in the City. CM Mihelich also informed the Commission that the City is expanding the hours for the Swim Center. F) 00:08:40 Commission Disclosures G) 00:08:46 Consent G.1 Accounts Payable Claims Review and Approval G.2 2131 Graf Street Minor Subdivision Preliminary Plat. 22188 Graf St PP CC Memo.pdf 6 Bozeman City Commission Meeting Minutes, Tuesday, January 10, 2023 Page 2 of 11 22188 Graf PP CC Staff Report.pdf 22188 Graf St Preliminary Plat.pdf G.3 Recommend Rejecting All Bids for the 2023 LFG and Leachate/Condensate System Improvements Project and Rebidding the Project at a Later Date Bid Sheet DocuSign Bid Sheet-2023 LFG Notice of Award G.4 Authorize the City Manager to Sign a Notice of Award with Blanton Contracting, LLC for the Aspen Street Pedestrian Bridge Notice of Award Aspen Street Ped Bridge V2.pdf G.5 Authorize the City Manager to sign a Sewer and Water Pipeline and Access Easement and Agreement with L&S Properties, LLC for the Oak & Cottonwood Master Site Plan (20433) Sewer and Water Pipeline and Access Easement and Agreement G.6 Authorize the City Manager to sign a Utility Easement with MJN Properties, LLC for the Nahorniak Commons Phase 1 Site Plan (22307) Utility Easement G.7 Authorize the City Manager to sign a Conditional Irrevocable Offer of Dedication and a Utility Easement with NWX Apartments, LLC for the Icon at NWX Master Site Plan (21433) Irrevocable Offer of Dedication Utility Easement G.8 Authorize the City Manager to Sign a Memorandum of Understanding with American Jobs for American's Youth Montana 230104 AJAY-MT MOU Final.pdf G.9 Authorize the City Manager to Sign an Agreement Involving Water Pressure at Nelson Meadows 12.20.2022 PRV Agreement - Nelson Meadows - City of Bozeman (002).pdf G.10 Authorize the Honorable J. Colleen Herrington to Sign a Hosted Software Service Agreement with Public Health Management Corporation DUI RANT-Hosted Software Service Agreement Template_Bozeman MT Municipal_commission(2).pdf Schedule A -.pdf Exhibit A -.pdf G.11 Authorize the City Manager to Enter into Equipment Lease-Purchase Agreement with Caterpillar Financial Services for Two Road Graders and Approve Governmental Entity Resolution Authorizing Lease Grader Lease Document G.12 Authorize the City Manager to Sign a Professional Services Agreement with VertiGIS for GIS Consulting Services Professional Services Agreement Exhibit A - Scope of Services Workers Compensation Act Clearance Reference G.13 Authorize the City Manager to Sign a Professional Services Agreement with CitiFi to Provide Micromobility Policy Services 20230110_CitiFi Professional Services Agreement.pdf 20230110_Exhibit A_CitiFi Scope of Services.pdf 7 Bozeman City Commission Meeting Minutes, Tuesday, January 10, 2023 Page 3 of 11 G.14 Authorize the City Manager to Sign a Professional Services Agreement between the City of Bozeman and the Downtown Bozeman Partnership for the Administration of the Downtown Urban Renewal District for Fiscal Year 2023 FY23 PSA for URD-CC.pdf G.15 Authorize the City Manager to Sign a Professional Services Agreement with Stahly Engineering and Associates for Story Mill Community Park East Parking Lot Story Mill Park East Parking Lot - Stahly PSA.docx ExhibitA-SMCP_SOW_Stahly_EastParkingLot.pdf G.16 Authorize City Manager to Sign Second Amendment to Professional Services Agreement with Cushing Terrell for Engineering and Architectural Services for Swim Center Renovation. Swim Center - Engineering and Architectural Services - PSA 2ND Amendment - Compiled.pdf G.17 Resolution 5436 A Resolution of the City Commission of the City of Bozeman, Montana, Adopting the Story Mill Community Park Master Plan Resolution 5436 Story Mill Community Park Master Plan.docx Exhibit A-SMCP Narrative.pdf Exhibit B-SMCP Supplemental Materials.pdf Exhibit C-SMCP Donor Recognition Statement.pdf G.18 Resolution 5454 Intent to Create a Special Improvement Lighting District 776 for Eastlake Professional Center Resolution 5454-Intent to Create SILD 776.docx Schedule A.pdf Exhibit B-Eastlake Professional Center.pdf G.19 Resolution 5456 Intent to Create a Special Improvement Lighting District 777 for Billings Clinic Bozeman Campus Resolution 5456-Intent to Create SILD 777.docx Exhibit A.pdf Exhibit B-Billings Clinic Bozeman.pdf G.20 Ordinance 2065, Final Adoption of Ordinance 2065 Generally Revising the Purchase and Disposition of Municipal Property Ordinance 2065 Final Adoption.pdf 00:10:38 Public Comment Opportunity 00:11:14 Motion I move to approve consent items 1-20 as submitted. Terry Cunningham: Motion I-Ho Pomeroy: 2nd 00:11:20 Vote on the Motion to approve I move to approve consent items 1-20 as submitted. The Motion carried 5 - 0. Approve: Cyndy Andrus Terry Cunningham I-Ho Pomeroy Jennifer Madgic 8 Bozeman City Commission Meeting Minutes, Tuesday, January 10, 2023 Page 4 of 11 Christopher Coburn Disapprove: None H) 00:11:26 Public Comment I) 00:12:38 Action Items I.1 00:12:40 The East Main Zone Map Amendment Requesting Amendment of the City Zoning Map for an Existing Lot Consisting of Approximately 1.5 Acres and the Accompanying Adjacent Right-of-way from B-2 (Community Business District) to B-2M (Community Business District-Mixed) for the Property Addressed at 1200 East Main Street, Application 22184 22184 East Main ZMA CC SR.pdf 00:12:43 Staff Presentation Senior Planner Tom Rogers presented project 22184 East Main Zone Map Amendment to the Commission. 00:17:26 Questions of Staff 00:27:53 Applicant Presentation Rob Pertzborn of Intrinsik Architecture presented the East Main Zone Map Amendment to the Commission. 00:30:47 Questions of the Applicant. 00:35:26 Public Comment Opportunity 00:35:59 Motion Having reviewed and considered the staff report, application materials, public comment which is none, and all information presented, I hereby adopt the findings presented in the staff report for application 22184 and move to recommend approval of the East Main Zone Map Amendment, with contingencies required to complete the application processing. I-Ho Pomeroy: Motion Jennifer Madgic: 2nd 00:36:26 Discussion 00:42:15 Vote on the Motion to approve Having reviewed and considered the staff report, application materials, public comment which is none, and all information presented, I hereby adopt the findings presented in the staff report for application 22184 and move to recommend approval of the East Main Zone Map Amendment, with contingencies required to complete the application processing. The Motion carried 5 - 0. 9 Bozeman City Commission Meeting Minutes, Tuesday, January 10, 2023 Page 5 of 11 Approve: Cyndy Andrus Terry Cunningham I-Ho Pomeroy Jennifer Madgic Christopher Coburn Disapprove: None I.2 00:42:22 The West Kagy Zone Map Amendment Requesting Amendment of the City Zoning Map for Two Existing Lots Consisting of Approximately 2.899 Acres and the Accompanying Adjacent Right-of way from R-4 (Residential High Density) to R-5 (Residential Mixed-use High Density) Property is Located on the Northeast Corner of South 19th and West Kagy Boulevard, Application 22249. 22249 W Kagy ZMA CC SR.pdf 00:42:25 Staff Presentation Senior Planner Tom Rogers presented application 22249 West Kagy Zone Map Amendment to the Commission. 00:51:01 Questions of Staff. 01:10:35 Applicant Presentation Charlie Franklin of SMA Architecture and Design Introduced the applicant team and presented the West Kagy Zone Map Amendment to the Commission. 01:19:29 Questions of the Applicant 01:31:33 Public Comment Opportunity 01:32:08 Jason Delmue, Public Comment Jason suggested that commercial may be a better use for the site rather than residential. 01:34:41 Motion Having reviewed and considered the staff report, application materials, public comment, recommendation of the Zoning Commission, and all information presented, I hereby adopt the findings presented in the staff report for application 22249 and move to approve the West Kagy Zone Map Amendment, with contingencies required to complete the application processing. Jennifer Madgic: Motion Christopher Coburn: 2nd 01:35:05 Discussion 01:47:07 Vote on the Motion to approve Having reviewed and considered the staff report, application materials, public comment, recommendation of the Zoning Commission, and all information presented, I 10 Bozeman City Commission Meeting Minutes, Tuesday, January 10, 2023 Page 6 of 11 hereby adopt the findings presented in the staff report for application 22249 and move to approve the West Kagy Zone Map Amendment, with contingencies required to complete the application processing. The Motion carried 5 - 0. Approve: Cyndy Andrus Terry Cunningham I-Ho Pomeroy Jennifer Madgic Christopher Coburn Disapprove: None I.3 01:47:26 Resolution 5443 Adoption of Bozeman's 2022 Economic Vitality Strategy CC Memo 12.06.22 FINAL 11.22.22.pdf Resolution 5443 Adoption of the 2022 Economic Vitality Strategy.docx.pdf Bozeman Economic Vitality Strategy 10.17.22 Final Complete.pdf 01:47:29 Staff Presentation Economic Development Director Brit Fontenot presented the 2022 Economic Vitality Strategy to the Commission. 02:05:40 Questions of Staff 02:49:08 Public Comment Opportunity 02:49:22 Sierra Wallace, Public Comment Sierra commented in on the necessity of including arts in the Economic Vitality Strategy. 02:52:12 Norman Huynh, Public Comment Norman commented on the necessity of including arts in the Economic Vitality Strategy. 02:56:18 Will Shepard, Public Comment Will commented in support of the Economic Vitality Strategy. 02:58:49 Motion I move Approve Resolution 5443 adopting Bozeman's 2022 Economic Vitality Strategy. Christopher Coburn: Motion Terry Cunningham: 2nd 02:58:55 Discussion 11 Bozeman City Commission Meeting Minutes, Tuesday, January 10, 2023 Page 7 of 11 03:10:01 Motion I move to table Resolution 5443 Adoption of Bozeman's 2022 Economic Vitality Strategy to allow staff time to incorporate more components of arts and culture as well as climate. Christopher Coburn: Motion Terry Cunningham: 2nd 03:10:10 Discussion 03:12:06 Vote on the Motion to continue I move to table Resolution 5443 Adoption of Bozeman's 2022 Economic Vitality Strategy to allow staff time to incorporate more components of arts and culture as well as climate. The Motion carried 5 - 0. Approve: Cyndy Andrus Terry Cunningham I-Ho Pomeroy Jennifer Madgic Christopher Coburn Disapprove: None J) 03:12:14 Work Session J.1 Bozeman Community Center Bozeman Community Center RFQ/RFP for Community Engagement and Conceptual Design.pdf Bozeman Community Center - Phase 1 - Basic Scope of Work.pdf Bozeman Community Center - Community Engagement Plan.pdf 03:12:18 Staff Presentation Strategic Services Director Jon Henderson, Parks and Recreation Director Mitch Overton and Library Director Susan Gregory provided a work session on the Bozeman Community Center to the Commission. 03:37:16 Discussion 03:56:18 Mayor Andrus extended the meeting to 10:15pm 03:57:10 Public Comment Opportunity 03:57:33 Steve Roderick, Public Comment Steve Roderick of the Ridge Athletic Club commented in opposition of the Community Center offering services that would directly compete with local businesses. 12 Bozeman City Commission Meeting Minutes, Tuesday, January 10, 2023 Page 8 of 11 K) 04:01:29 Other Agency Hearing K.1 Public Hearing for the Timber Ridge Low Income Housing Tax Credit (LIHTC) Project Applying for Real Property Tax Exemption from Montana Board of Housing Timber Ridge City Commission Memo 01.10.23.pdf 04:01:32 Staff Presentation Community Housing Program Coordinator Renata Munfrada presented the public hearing for Timber Ridge Low Income Housing Tax Credit to the Commission. 04:03:34 Questions of Staff 04:03:42 Public Comment Opportunity L) 04:04:08 Appointments L.1 04:04:14 Appointment to the Transportation Board Bryce Gordon.pdf 04:04:17 Public Comment Opportunity 04:04:37 Motion I move to appoint Bryce Gordon to the Transportation Board for a term ending December 31, 2026. Christopher Coburn: Motion Terry Cunningham: 2nd 04:04:49 Vote on the Motion to approve I move to appoint Bryce Gordon to the Transportation Board for a term ending December 31, 2026. The Motion carried 5 - 0. Approve: Cyndy Andrus Terry Cunningham I-Ho Pomeroy Jennifer Madgic Christopher Coburn Disapprove: None L.2 04:05:00 Appointment to the Downtown Business Improvement District Board Randy Scully.pdf 04:04:53 Public Comment Opportunity 04:05:26 Motion I move to appoint Randy Scully the Downtown Business Improvement District Board for a term expiring June 30, 2025. 13 Bozeman City Commission Meeting Minutes, Tuesday, January 10, 2023 Page 9 of 11 Terry Cunningham: Motion I-Ho Pomeroy: 2nd 04:05:36 Vote on the Motion to approve I move to appoint Randy Scully the Downtown Business Improvement District Board for a term expiring June 30, 2025. The Motion carried 5 - 0. Approve: Cyndy Andrus Terry Cunningham I-Ho Pomeroy Jennifer Madgic Christopher Coburn Disapprove: None L.3 04:05:35 Appointments to the Downtown Urban Renewal District Board 06-15-22 - CAB Applications - CAB Application George (Jake) Van Dusen.pdf 06-14-22 - CAB Applications - CAB Application Cory Lawrence.pdf 05-26-22 - CAB Applications - CAB Application Nicholas Wickes.pdf 11-30-22 - CAB Applications - CAB Application Will Shepard.pdf 12-01-22 - CAB Applications - CAB Application Aaron Parker.pdf 12-19-22 - CAB Applications - Suzi Berget White.pdf 04:05:38 Public Comment Opportunity 04:06:30 Bobby Bear, Public Comment Bobby commented in opposition of the Mayor's appointment selections for the Downtown Urban Renewal District Board. 04:10:49 Will Shepard, Public Comment Will offered congratulations to the newly appointed board members. 04:15:30 Motion I move to make the following appointment to the Downtown Urban Renewal Board, Jake Van Dusen and Aaron Parker, as non-voting members for terms ending June 30, 2026, Suzi Berget White, as a voting member for a term ending June 30, 2026. I also move to appoint Barbara Bear as Chair and Suzi Berget White as Vice-chair. Terry Cunningham: Motion I-Ho Pomeroy: 2nd 04:16:03 Vote on the Motion to approve I move to make the following appointment to the Downtown Urban Renewal Board, Jake Van Dusen and Aaron Parker, as non-voting members for terms ending June 30, 2026, Suzi Berget White, as a voting member for a term ending June 30, 2026. I also move to appoint Barbara Bear as Chair and Suzi Berget White as Vice-chair. The Motion carried 3 - 2. 14 Bozeman City Commission Meeting Minutes, Tuesday, January 10, 2023 Page 10 of 11 Approve: Cyndy Andrus Terry Cunningham Christopher Coburn Disapprove: I-Ho Pomeroy Jennifer Madgic 04:17:59 Discussion M) 04:20:44 FYI / Discussion N) 04:20:49 Adjournment City Commission meetings are open to all members of the public. If you have a disability that requires assistance, please contact our ADA Coordinator, Mike Gray, at 582-3232 (TDD 582-2301).Commission meetings are televised live on cable channel 190 and streamed live at www.bozeman.net. ___________________________________ Cynthia L. Andrus Mayor ATTEST: ___________________________________ Mike Maas City Clerk PREPARED BY: ___________________________________ Taylor Chambers Deputy City Clerk Approved on: February 7, 2023 15 Bozeman City Commission Meeting Minutes, Tuesday, January 10, 2023 Page 11 of 11 16 Bozeman City Commission Meeting Minutes, January 24, 2023 Page 1 of 7 THE CITY COMMMISSION MEETING OF BOZEMAN, MONTANA MINUTES January 24, 2023 Present: Cyndy Andrus, Terry Cunningham, I-Ho Pomeroy, Jennifer Madgic, Christopher Coburn Absent: None Excused: None Staff Present at the Dais: City Manager (CM) Jeff Mihelich, City Attorney (CA) Greg Sullivan, City Clerk (CC) Mike Maas A) 00:04:33 Call to Order - 6:00 PM - Commission Room, City Hall, 121 North Rouse B) 00:05:33 Pledge of Allegiance and a Moment of Silence C) 00:06:14 Changes to the Agenda • Item G.13 was removed from the consent agenda. D) 00:06:31 FYI • CM Mihelich invited everyone to the Love Your Land Open House, Rock River Event Center in Belgrade between 5:30 - 7 p.m. on January 31, 2023. E) 00:07:27 Commission Disclosures F) Approval of Minutes F.1 00:07:33 Approve the regular meeting minutes from: December 6, 2022 December 13, 2022 December 20, 2022 12-06-22 City Commission Meeting Minutes.pdf 17 Bozeman City Commission Meeting Minutes, January 24, 2023 Page 2 of 7 12-13-22 City Commission Meeting Minutes.pdf 12-20-22 City Commission Meeting Minutes.pdf 00:07:38 Motion to approve the combined City Commission minutes as submitted. Terry Cunningham: Motion I-Ho Pomeroy: 2nd 00:07:44 Vote on the Motion to approve the combined City Commission minutes as submitted. The Motion carried 5 - 0. Approve: Cyndy Andrus Terry Cunningham I-Ho Pomeroy Jennifer Madgic Christopher Coburn Disapprove: None G) 00:07:55 Consent G.1 Accounts Payable Claims Review and Approval G.2 Appoint a Sub-committee of Two Commissioners to Review Pledged Securities as of December 31, 2022 Depository Bonds & Securities 1222.doc G.3 Authorize the Mayor to sign the Nexus Point Major Subdivision Preliminary Plat Findings of Fact and Order 22246 Nexus Point PP CC FOF Memo.pdf 22188 Graf PP FOF staff rpt 01 13 23.docx G.4 Recommend Rejecting All Bids for the 2022 3rd, 4th, and 5th Water Renovations Project and Rebidding the Project at a Later Date Bid Tab Bid Worksheet Notice Of Award G.5 Approval of Norton East Ranch Phase 5A Major Subdivision Final Plat Application to Divide 35.56 Acres into Fifty-one (51) Single Household Residential lots, One (1) Park Parcel, and One (1) Remainder Restricted Development Lot Needing Further Subdivision Review, and Associated Roads and Public Infrastructure, Located Northwest of the Intersection of West Babcock Street and Laurel Parkway, Application 22063 - Quasi- Judicial 22063 Commission Memo.pdf 18 Bozeman City Commission Meeting Minutes, January 24, 2023 Page 3 of 7 G.6 Approval of Norton East Ranch Phase 5B Major Subdivision Final Plat Application to divide 25.74 Acres Together and Create Forty-three (43) Single Household Residential Lots, Three (3) Park Parcels, Four (4) Open Space Lots, One (1) Remainder Restricted Development Lot Needing Further Subdivision Review, and Associated Roads and Public Infrastructure, Located Northwest of the Intersection of West Babcock Street and Laurel Parkway, Application 22203 - Quasi-Judicial 22203 Commission Memo.pdf G.7 Authorize the City Manager to sign a Conditional Irrevocable Offer of Dedication with TWAS Properties, LLC for the Tidal Wave Auto Spa (21358) Irrevocable Offer of Dedication G.8 Authorize the City Manager to sign a Sewer and Water Pipeline and Access Easement and Agreement with Town & Country Foods Inc for the Town & Country Foods Site Plan (19-207) Sewer and Water Pipeline and Access Easement and Agreement G.9 Authorize the City Manager to sign a Sewer and Water Pipeline and Access Easement and Agreement (3) and a Release and Reconveyance of Easements with Gallatin County for Gallatin County Courts Site Plan (22186) Sewer and Water Pipeline and Access Easement and Agreement(1) Sewer and Water Pipeline and Access Easement and Agreement(2) Sewer and Water Pipeline and Access Easement and Agreement(3) Release and Reconveyance of Easements G.10 Authorize the City Manager to Sign a Utility Easement with Gallatin County for Gallatin County Regional Park Improvements Site Plan (22017) Utility Easement G.11 Formal Recommendation to Amend the City’s 2015 Wastewater Facilities Plan Based on Findings and Analysis in the Attached Baxter Creek Drainage Basin Analysis Memorandum by Advanced Engineering and Environmental Services (AE2S) as Well as Incorporate the Final Recommendations into the City’s on-going Wastewater Facility Plan Update G7. Amendment No. 1 to Professional Services Agreement Valley Center Lift Station Analysis Memo G.12 Authorize the City Manager to Sign a Memorandum of Understanding with the Trust for Public Land for the Story Mill Community Park Splash Pad Story Mill Splash Pad MOU.docx Exhibit A_SMCP-SplashPadDesigns.pdf Exhibit B_SMCP-DonorRecognitionStatement.pdf G.13 Authorize the Mayor to Sign a Memorandum of Understanding (MOU) between City of Bozeman and Bozeman School District 7 for Development of the Bozeman Community Center Memorandum of Understanding BSC7 West-Side SD Edits.docx G.14 Authorize the City Manager to Sign an Agreement with Northwestern Energy for the Installation of Interim Street Lights on Griffin Drive 19 Bozeman City Commission Meeting Minutes, January 24, 2023 Page 4 of 7 20230124_Street Lighting Agreement_Bozeman_Griffin Manley.pdf TEMP LIGHT LOCATIONS - GRIFIFN & MANLEY_map.pdf G.15 Authorize the City Manager to Sign Construction Documents with Blanton Contracting, LLC for the Aspen Street Pedestrian Bridge Contract Documents Aspen Street Ped Bridge V3 Final 230112.pdf G.16 Authorize the City Manager to Sign a Professional Services Agreement with ESRI for GIS Implementation Services Scope of Work.pdf Task Order.pdf State Master Purchase Agreement.pdf G.17 Authorize City Manager to Sign the Professional Services Agreement with Morrison Maierle for the Sourdough Creek Intake Improvements Project Sourdough Intake Professional Services Agreement.pdf G.18 Authorize the City Manager to Sign a Professional Services Agreement with Field Studio Landscape Architects, PLLC for Story Mill Community Park Splash Pad Construction Administration 230109 Story Mill Splash Pad_Field Studio Architectural Services Agreement_final for upload.docx Exhibit A-SMCP-SplashPad-FieldStudioScope.pdf ExhibitB-SMCP-SplashPadDesigns.pdf G.19 Authorize the City Manager to Sign a Second Amendment to the Professional Services Agreement with Stay Green Sprinklers Inc. for Irrigation Maintenance Services in the Parks and Trails District Attachment A PSA Amendment 2 Stay Green Sprinklers Inc..pdf Attachment B PSA Stay Green Sprinklers Inc..pdf G.20 Authorize the City Manager to Sign a Second Amendment to the Professional Services Agreement with Hydro Logistics Irrigation LLC. for Irrigation Maintenance Services in the Parks and Trails District Attachment A PSA Amendment 2 Hydro Logistics Irrigation LLC..pdf Attachment B PSA Hydro Logistics Irrigation LLC. (2).pdf G.21 Authorize the City Manager to Sign a Task Order MID22-002 with Sanderson Stewart for On-Call Miscellaneous Engineering Services for the Midtown Urban Renewal District URD Task Order Form MID22-002.pdf G.22 Resolution 5471 Adopting the Burke Park Master Plan Amendment Resolution 5471 Story Mill Community Park Master Plan.docx Exhibit_A-2023_Burke_Park_Master_Plan_Amendment.pdf Burke_Park_Survey_2023.pdf G.23 Resolution 5472 Adopting the Update to the Fair Market Value of Land for Cash-in-Lieu of Parkland Calculations Exhibit A - Appraisal Report.pdf Resolution 5472 CILP Valuation Update.docx 20 Bozeman City Commission Meeting Minutes, January 24, 2023 Page 5 of 7 G.24 Resolution 5473 A Resolution Related to the Creation of the Gallatin Valley Urban Transportation District Resolution 5473 Urban Trans District Board by Appt 1 17 23 gs.docx 00:08:00 City Manager Introduction CM Mihelich provided the highlights of the Consent Agenda. 00:08:12 Public Comment Mayor Andrus opened the Consent Agenda for public comment. 00:08:34 Heather Grenier, Public Comment Heather Grenier, Executive Director of HRDC, commented on the Urban Transit District. 00:09:45 Motion to approve Consent Items 1-12, and 14-24. I-Ho Pomeroy: Motion Christopher Coburn: 2nd 00:09:56 Vote on the Motion to approve Consent Items 1-12, and 14-24. The Motion carried 5 - 0. Approve: Cyndy Andrus Terry Cunningham I-Ho Pomeroy Jennifer Madgic Christopher Coburn Disapprove: None H) 00:10:07 Public Comment Mayor Andrus opened general public comments. 00:10:50 Mary Wictor, Public Comment Mary Wictor commented on the UDC update process. I) 00:14:25 Special Presentation I.1 00:15:03 State of the City Address Mayor Andrus provided the State of the City Address. J) 00:51:02 Work Session J.1 00:51:03 Parking Supply and Demand Work Session 2 21 Bozeman City Commission Meeting Minutes, January 24, 2023 Page 6 of 7 City Commission Parking Supply and Demand Work Session 2--012423.doc Bozeman Paid Parking Work Session Report 1.18.23.pdf 00:52:40 Staff Presentation Mike Veselik, Economic Development Program Manager, presented the Work Session for the Commission. He presented an overview of the presentation, a recap of past community engagement efforts, the occupancy study results and its presentation, the theory of parking management, actions taken since last work sessions, employee parking solutions, other revenue sources, additional engagement with downtown business owners and their recommendation, the staff response to the downtown report, the proposal's alignment with adopted City plans, the amount of engagement, and the staff recommendation. 01:56:06 Questions of Staff 02:36:42 Recess Mayor Andrus called the meeting into recess. 02:41:25 Call to Order Mayor Andrus called the meeting back to order. 02:41:30 Public Comment Mayor Andrus opened the item for public comment. 02:41:53 Ellie Staley, Public Comment Ellie Staley, Executive Director of the Downtown Partnership, submitted comments on behalf of the Downtown Executive Committee. 02:45:36 Cory Lawrence, Public Comment Cory Lawrence commented on the Downtown Owner's Group report. 02:48:42 Alex Musar, Public Comment Alex Musar commented in support of parking demand management. 02:51:02 Babs Noelle, Public Comment Babs Noelle commented on the Downtown Owner's Group Report. 02:54:32 Ashley Ogle, Public Comment Ashley Ogle commented on alternatives to paid parking 02:57:23 Mike Hope, Public Comment Mike Hope commented on alternative funding for increasing parking supply. 22 Bozeman City Commission Meeting Minutes, January 24, 2023 Page 7 of 7 03:00:06 Vonda Laird, Public Comment Vonda Laird commented on the proposal. 03:03:40 Jerry Pape, Public Comment Jerry Pape commented on the proposal. 03:06:18 Jason Delmue, Public Comment Jason Delmue commented in favor of the proposal. 03:09:38 Discussion K) 03:49:30 FYI / Discussion L) 03:49:36 Adjournment ___________________________________ Cynthia L. Andrus Mayor ATTEST: ___________________________________ Mike Maas City Clerk PREPARED BY: ___________________________________ Mike Maas City Clerk Approved on: February 7, 2023 23 Bozeman City Commission Special Meeting Minutes, January 25, 2023 Page 1 of 2 THE CITY COMMMISSION SPECIAL MEETING OF BOZEMAN, MONTANA MINUTES January 25, 2023 A) 00:06:49 Call to Order - 12:00 PM - Commission Room, City Hall, 121 North Rouse Present: Cyndy Andrus, Terry Cunningham, I-Ho Pomeroy, Jennifer Madgic, Christopher Coburn Absent: None Excused: None Staff Present: City Manager (CM) Jeff Mihelich, City Attorney (CA) Greg Sullivan, City Clerk (CC) Mike Maas B) 00:07:13 Pledge of Allegiance and a Moment of Silence C) 00:07:35 Changes to the Agenda D) Public Service Announcements E) 00:07:43 Public Comment F) 00:08:16 Work Session F.1 00:08:19 2022 City Commission Ethics Trainings CA Sullivan presented the 2022 annual ethics training for the City Commission. Present: Cyndy Andrus, Terry Cunningham, I-Ho Pomeroy, Christopher Coburn Absent: None Excused: Jennifer Madgic • Cr. Madgic had to leave due to a schedule conflict. G) FYI / Discussion 24 Bozeman City Commission Special Meeting Minutes, January 25, 2023 Page 2 of 2 H)01:32:45 Adjournment ___________________________________ Cynthia L. Andrus Mayor ATTEST: ___________________________________ Mike Maas City Clerk PREPARED BY: ___________________________________ Mike Maas City Clerk Approved on: February 7, 2023 25 Memorandum REPORT TO:City Commission FROM:Nadine Waters, Accounts Payable Clerk Nicole Armstrong, Accounts Payable Clerk Levi Stewart, Assistant City Controller Aaron Funk, City Controller Melissa Hodnett, Finance Director SUBJECT:Accounts Payable Claims Review and Approval MEETING DATE:February 7, 2023 AGENDA ITEM TYPE:Finance RECOMMENDATION:The City Commission is recommended to make a motion and approve payment of claims as presented. STRATEGIC PLAN:7.5. Funding and Delivery of City Services: Use equitable and sustainable sources of funding for appropriate City services, and deliver them in a lean and efficient manner. BACKGROUND:Montana Code Annotated, Section 7-6-4301 requires the City Commission to review claims prior to payment. Claims presented to the City Commission under this item have been reviewed and validated by the Finance Department. The Department has ensured that all goods and services have been received along with necessary authorizations and supporting documentation. Additionally, the Department confirmed all expenditures were appropriately coded and within the current fiscal year allocated budget. In addition to the weekly check issue, please provide approval for checks dated 1/26 thru 2/1, as there was no commission meeting on 1/31. UNRESOLVED ISSUES:None ALTERNATIVES:The City Commission could decide not to approve these claims or a portion of the claims presented. This alternative is not recommended as it may result in unbudgeted late fees assessed against the City. FISCAL EFFECTS:The total amount of the claims to be paid is presented at the bottom of the Expenditure Approval List posted on the City’s website at https://www.bozeman.net/departments/finance/purchasing. Report compiled on: February 2, 2023 26 27 Memorandum REPORT TO:City Commission FROM:Laurae Clark, Treasurer Melissa Hodnett, Finance Director SUBJECT: Approval of Depository Bonds and Pledged Securities as of December 31, 2022 MEETING DATE:February 7, 2023 AGENDA ITEM TYPE:Finance RECOMMENDATION: Approve the depository bonds and pledged securities as of December 31, 2022. STRATEGIC PLAN:7.5. Funding and Delivery of City Services: Use equitable and sustainable sources of funding for appropriate City services, and deliver them in a lean and efficient manner. BACKGROUND: 17-6-102. Insurance on deposits. (1) Deposits in excess of the amount insured by the federal deposit insurance corporation or the national credit union administration may not be made unless the bank, building and loan association, savings and loan association, or credit union first delivers to the state treasurer or deposits in trust with some solvent bank, as security therefore, bonds or other obligations of the kinds listed in 17-6-103, having a market value equal to at least 50% of the amount of the deposits in excess of the amount insured. The board of investments may require security of a greater value. When negotiable securities are placed in trust, the trustee's receipt may be accepted instead of the actual securities if the receipt is in favor of the state treasurer, successors in office, and the state of Montana and the form of receipt and the trustee have been approved by the board of investments. (2) Any bank, building and loan association, savings and loan association, or credit union pledging securities as provided in this section may at any time substitute securities for any part of the securities pledged. The substituted collateral must conform to 17-6-103 and have a market value at least sufficient for compliance with subsection (1). If the substituted securities are held in trust, the trustee shall, on the same day the substitution is made, forward by registered or certified mail to the state treasurer and to the depository financial institution a receipt specifically 28 describing and identifying both the securities substituted and those released and returned to the depository financial institution. Section 7-6-207 (2), MCA, requires the City Commission to approve pledged securities at least quarterly. UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the City Commission FISCAL EFFECTS:The city is sufficiently pledged. Attachments: Depository Bonds & Securities 1222.doc Report compiled on: January 10, 2023 29 DEPOSITORY BONDS AND SECURITIES AS OF December 31, 2022 MATURITY CUSIP NO/LOC NO. TOTAL AMOUNT US BANK All Accounts Federal Deposit Insurance Corporation-Operating Accts $ 250,000.00 LOC-FHLB Cincinnati 04/14/2023 569228 $ 18,000,000.00 TOTAL – US Bank $ 18,250,000.00 This is to certify that we, the Commission of the City of Bozeman, in compliance with the provisions of Section 7-6- 207, M.C.A., have this day certified the receipts of US Bank, for the Depository Bonds held by the Director of Finance as security, for the deposit for the City of Bozeman funds as of December 31, 2022, by the banks of Bozeman and approve and accept the same. _____________________________________________ CYNTHIA L. ANDRUS, Mayor ______________________________________________________________________________ TERRY CUNNINGHAM, Deputy Mayor I-HO POMEROY, Commissioner ______________________________________________________________________________ CHRISTOPHER COBURN, Commissioner JENNIFER MADGIC, Commissioner 30 PLEDGED SECURITIES AND CASH IN BANK As of December 31, 2022 US BANK Total Cash on Deposit $8,299,782.78 FDIC Coverage $250,000.00 Amount Remaining $8,049,782.78 Pledges Required 104%$8,371,774.09 Actual Pledges $18,000,000.00 Over (Under) Pledged $9,628,225.91 REFERENCE: Section 7-6-207, M.C.A. 31 Memorandum REPORT TO:City Commission FROM:Susana Montana, Senior Planner Brian Krueger, Manager, Development Review Division Anna Bentley, Director, Community Development Department SUBJECT:Authorize the Mayor to Sign the 2131 Graf Street Minor Subdivision Preliminary Plat Findings of Fact and Order MEETING DATE:February 7, 2023 AGENDA ITEM TYPE:Community Development - Quasi-Judicial RECOMMENDATION:Approve and authorize the Mayor to sign the 2131 Graf Street Minor Subdivision Preliminary Plat Findings of Fact and Order. STRATEGIC PLAN:4.2 High Quality Urban Approach: Continue to support high-quality planning, ranging from building design to neighborhood layouts, while pursuing urban approaches to issues such as multimodal transportation, infill, density, connected trails and parks, and walkable neighborhoods. BACKGROUND: This is a minor subdivision of a 25.99 acre parcel to create 5 lots in 2 Blocks. One lot would be dedicated to the City as a 2.1 acre public park. The other 4 lots would be developed in two phases with a total of 457 rental apartment dwelling units. The subdivision Site has an approved Master Site Plan for the 457 dwelling units and has an approved Phase I Site Plan for development of 198 apartment units. The Phase I apartment building development is under construction. UNRESOLVED ISSUES:None. ALTERNATIVES:None suggested. FISCAL EFFECTS: Fiscal impacts are undetermined at this time, but will include increased property tax revenues from new development, along with increased costs to deliver municipal services to the property. Attachments: 22188 Graf St PP CC FOF Memo.pdf 22188 Graf PP FOF staff rpt 01 13 23.docx 32 2131 Graf St Preliminary Plat.pdf Report compiled on: January 17, 2023 33 Commission Memorandum REPORT TO: Mayor and City Commission FROM: Susana Montana, Senior Planner, Community Development Department SUBJECT: 2131 Graf Street Minor Subdivision Preliminary Plat Finding of Fact and Order STRATEGIC PLAN: 4.2 High Quality Urban Approach. Continue to support high quality planning, ranging from building design to neighborhood layouts, while pursuing urban approaches to issues such as multimodal transportation, infill, density, connected trails and parks, and walkable neighborhoods. MEETING DATE: February 7, 2023 AGENDA ITEM TYPE: Consent—Quasi-Judicial RECOMMENDATION: Approve and authorize the Mayor to sign the Finding of Fact and Order for the January 10, 2023 City Commission approval of the Preliminary Plat for the 2131 Graf Street Minor Subdivision. BACKGROUND: This is a minor subdivision of a 25.99 acre parcel to create 5 lots in 2 Blocks. One lot would be dedicated to the City as a 2.1 acre public park. The other 4 lots would be developed in two phases with a total of 457 rental apartment dwelling units. The subdivision Site has an approved Master Site Plan for the 457 dwelling units and has an approved Phase I Site Plan for development of 198 apartment units. The Phase I apartment building development is under construction. UNRESOLVED ISSUES: None identified. ALTERNATIVES: None suggested or proposed. FISCAL EFFECTS: Fiscal impacts are undetermined at this time, but will include increased property tax revenues from new development, along with increased costs to deliver municipal services to the property. Report compiled on: January 17, 2023 34 Page 1 of 30 Findings of Fact and Order for the 2131 Graf Street Minor Subdivision Preliminary Plat; Application No. 22188. Public Meeting Date:The City Commission meeting will be held Tuesday, February 7, 2023 at 6:00 pm. Project Description The 2131Graf Street Minor Subdivision is a proposed 5 lot minor subdivision, is within a R-4 (Residential High Density District) zoned property located directly West of South 19th Avenue, between Lantern Drive and Graf Street. The minor subdivision is located on a 25.99-acre parcel. Development plans for the property have been reviewed and approved through a Master Site Plan and Phase I Site Plan, Project No. 19308 and 19309. South 21st Avenue would be extended between Lantern Drive and Graf Street with Phase I. Water and sewer main extensions for the entire property would be installed to serve the minor subdivision with Phase I. A 2.116 acre City park is proposed on the north side of the subdivision on Block 1, Lot 1, and has been reviewed and approved with the Master Site Plan. Development of the property would take place in two phases. Phase I is on the north side of the plat consisting of 3 lots; Phase II is on the southwest side and consists of 2 lots. Lot 1, Block 1 shows the location of the proposed Lantern Park which would be installed with Phase I of 2131 Graf Apartments project. The Lantern Park is being constructed in cooperation with Nexus Point Apartments project located immediately to the north. This parkland consists of a combined 3.374 acres located in the Northeast corner of the property. The park wouldinclude pavilions, a dog park, a playground area as well as an exercise trail, and equipment. In addition, 0.62 acres of a narrow 30-footwide public park easementis being provided within the trail corridor on the West boundary of the project within Block 2, Lots 1 and 2. The Applicant previously coordinated with the City of Bozeman Parks and Recreation Department on the layout and development of the park plan and received approval from the Parks Department’s Subdivision Review Board. The subdivision would have a trail corridor that would give pedestrians east-west access through the development to South 19th Avenue. Sidewalks would be installed on both sides of South 21st Avenue from the existing Lantern Drive to Graf Street. A pedestrian trail connecting the park sidewalks to 19th Street would also be constructed with the park development. A footbridge for the park pedestrian connection has been constructed across the East Catron Creek tributary wetlands. The site wetland area is located within Block 1, lot 2, and Block 1, Lot 3. The Site has an approved Master Site Plan for a two-Phase developmentof 457 apartment dwelling units, a clubhouse, a maintenance building, parking, common open space, landscaping, and the south half of the new Lantern City Park. The development has an approved Phase 1 Site Plan for 198 apartment dwelling units. The development was approved as rental housing on the existing, single lot under single ownership. A Property Owners Association (POA) will be established with 35 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 2 of 30 the Final Plat along with a Covenants, Conditions and Restrictions (CC&R) document outlining how common areas and facilities would be properly maintained. Project Legal Description: 2131 Graf Street Minor Subdivision, a minor subdivision of Lot 2 of Minor Subdivision Number 235 containing 25.999 acres of land. Project Location:The property is addressed as 2131 Graf Street and is located at the northwest former of S. 19th Avenue and Graf Street in the NE ¼ of S23, T2 S, R5 E, P.M.M, City of Bozeman, Gallatin County, Montana. Development Review Committee (DRC)/Staff Finding: On December 15, 2022, the DRC found that the application conforms to standards and is sufficient for approval with conditions and code provisions. City Commission Action:On January 10, 2023, having reviewed and considered the application materials, public comment, and all the information presented, the Commission, by a unanimous vote of 5 to 0, adopted the findings presented in the staff report for application 22188 and moved to approve the 2131 Graf Street Minor Subdivision preliminary plat with the recommended condition of approval and subject to all applicable code provisions. Report Date:January 17, 2023 Staff Contact: Susana Montana, Senior Planner Suzanne Ryan, Project Engineer Agenda Item Type:Consent (Quasi-judicial) EXECUTIVE SUMMARY This report is based on the application materials submitted and the public comment received to date. The application materials are available in the City’s Laserfiche archive and may be accessed through the Community Development viewer as well at: https://weblink.bozeman.net/WebLink/Browse.aspx?id=266413&dbid=0&re No public comments have been received as of the writing of this report. Should written public comments be received they would be included in the City’s Laserfiche archive and available to the public. Unresolved Issues. There are no unresolved issues with this application. 36 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 3 of 30 Project Summary The Department of Community Development received a Preliminary Plat Application on July 2019 with revisions submitted in May 2020, September 2020, January 2021, September 2021, and this final revision on October 12, 2022. This report evaluates the October 12, 2022 submittal. The ~26 acre property (“Site”) will have access from the Graf Street which borders its south side and from a new extension of South 21st Avenue from the north that bisects the Site in a north-south orientation. A new extension of Lantern Drive from the west will provide access from the north and west. On December 15, 2022 the Development Review Committee (DRC) found the application sufficient for continued review and recommends the condition and code provisions identified in this report. Public notice began on November 11, 2022 and continues until the Commission meeting on January 10, 2023. A second public notice posting of the property and mailing for the January 10th Commission meeting was made on December 23, 2022. The subdivider did not request any subdivision or zoning variances with this application. The City did not receive any written public comment on the application as of the writing of this report. Pursuant to State statute 76.3-609, preliminary plat subdivision applications, the final decision for this preliminary plat must be made within 35 days of the date the DRC deemed the application as complete, which would be January 17, 2023. BMC Section 38.240.140A.2 delegates review of minor subdivision applications to the Community Development Director rather than the Community Development Board acting in their capacity as the Planning Board. The Director reviewed this application for compliance on December 29, 2022. Alternatives 1. Approve the application with the recommended condition and code provisions; 2. Approve the application with modifications to the recommended condition and code provisions; 3. Deny the application based on the Commission’s findings of non-compliance with the applicable criteria contained within the staff report; or 4. Continue the public meeting on the application, with specific direction to staff or the subdivider to supply additional information or to address specific items. 37 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 4 of 30 TABLE OF CONTENTS EXECUTIVE SUMMARY ............................................................................................................ 2 Unresolved Issues............................................................................................................... 2 Project Summary................................................................................................................. 3 Alternatives......................................................................................................................... 3 SECTION 1 – MAP SERIES.......................................................................................................... 5 SECTION 2 – REQUESTED VARIANCES ............................................................................... 11 SECTION 3 – RECOMMENDED CONDITION OF APPROVAL............................................ 11 SECTION 4 – CODE PROVISIONS........................................................................................... 11 SECTION 5 – RECOMMENDATION AND FUTURE ACTIONS............................................ 12 SECTION 6 – STAFF ANALYSIS and findings......................................................................... 12 Applicable Subdivision Review Criteria, Section 38.240.150.B, BMC........................... 12 BMC 38.220.060 Documentation of compliance with adopted standards....................... 14 SECTION 7 - FINDINGS OF FACT, ORDER AND APPEAL PROVISIONS ......................... 20 APPENDIX A – PROJECT SITE ZONING AND GROWTH POLICY..................................... 23 APPENDIX B – DETAILED PROJECT DESCRIPTION .......................................................... 28 APPENDIX C – NOTICING AND PUBLIC COMMENT ......................................................... 30 APPENDIX D – OWNER INFORMATION AND REVIEWING STAFF................................. 30 FISCAL EFFECTS....................................................................................................................... 30 APPLICATION LINK.................................................................................................................. 30 38 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 5 of 30 SECTION 1 – MAP SERIES Figure 1 – Zoning Site 39 Page 6 of 30 Figure 2 –Proposed Five-Lot Preliminary Plat 40 Page 7 of 30 Figure 3 –Two-Phase Approved Master Site Plan 41 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 8 of 30 Figure 4: Approved Phase I East Site Plan (northeast portion of subdivision) 42 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 9 of 30 Figure 5: Approved Phase I West Site Plan (southeast portion of subdivision) 43 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 10 of 30 Figure 6: Overall Lantern Park Plan—Applicant to build the southern portion; Nexus Point developer to build the northern portion. 44 Page 11 of 30 SECTION 2 – REQUESTED VARIANCES The subdivider did not request any subdivision or zoning variances with this preliminary plat application. SECTION 3 – RECOMMENDED CONDITION OF APPROVAL Please note that this condition is in addition to any required code provisions identified in this report. These condition is specific to this project. Recommended Condition of Approval: 1. The Applicant is advised that unmet code provisions, or code provisions that are not specifically listed as a condition of approval, does not, in any way, create a waiver or other relaxation of the lawful requirements of the Bozeman Municipal Code (BMC) or state law. SECTION 4 – CODE PROVISIONS All references are to the Bozeman Municipal Code (BMC). 1. BMC Section 38.100.080. Compliance with regulations required. The final plat must comply with State statute, the Administrative Rules of Montana, and the Bozeman Municipal Code. 2.BMC Section 38.270.030. The Applicant is advised that all common subdivision infrastructure including roads, water, sanitary sewer, stormwater, sidewalk and lighting must be complete and accepted before final plat approval. This includes Lantern Drive, South 21st Avenue, widening of South 19th Avenue, and improvements along West Graf Street including sidewalks, lighting, water, and sewer facilities. 3. BMC Section 38.270.090.C. Common Area Maintenance Plan. a. Prior to final plat approval, a maintenance access easement from the City is required for developer/Property Owner Association (POA) in order to assure City access to stormwater features within designated public park lands within these lots. b.The Applicant must prepare easement documents that include the area of access for stormwater feature maintenance. c.The Applicant must provide an exhibit with the stormwater maintenance plan identifying all the stormwater features that the POA needs to maintain and have that included in the POA Covenants, Conditions & Restrictions (CC&R) document recorded with the Gallatin County Clerk and Recorder. 4. BMC Section 38.220.070.A.8.h and 38.410.130.D. Transfer of water rights. Note Number 5 is included in the Plat Sheet 4, Conditions of Approval sheet, advising prospective buyers that cash-in-lieu of water rights must be paid for these lots with future development of the lot. 45 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 12 of 30 5.BMC Section 38.410.060.D. Agricultural Water Facilities. East Catron Creek conveys irrigation water, therefore, easements for the Agricultural Water User apply. Prior to final plat approval, the developer must establish an agricultural water user facility easement pursuant to Sec. 38.410.060.D. for the portion East Catron Creek crossing the subject property. 6. BMC Section 38.420. Parks. a.A preconstruction meeting with the Park Division is required prior to any site work. Applicants to provide most recent park plans and request meeting at least 30 days prior to commencement of parkland construction. b.All park wells, irrigation infrastructure, and water rights would be transferred to and owned by the City of Bozeman. c.Easements for trails within open space parcels must include agreement to utilize city-wide wayfinding and allow parks staff to install and/or repair wayfinding. d.Private utilities are not allowed within parkland. Non-park related public utilities are only allowed within the defined Public Utility Easements (PUE). 7. BMC Section 38.410.060.A.1. All easements, existing and proposed, must be accurately depicted and addressed on the final plat and in the final plat application. SECTION 5 – RECOMMENDATION AND FUTURE ACTIONS On December 15, 2022, the Development Review Committee (DRC) determined the application was sufficient for continued review and recommended approval with a condition and required BMC code provisions. On January 10, 2023, at 6:00 P.M., the City Commission held a public meeting on this minor subdivision preliminary plat. A WebEx link was provided with the City Commission agenda. No members of the public attended or called in or wrote in comments on the application. SECTION 6 – STAFF ANALYSIS AND FINDINGS Analysis and resulting recommendations are based on the entirety of the application materials, State statutes and municipal codes, standards, plans, public comment, and all other materials available during the review period. Collectively this information is the record of the review. The analysis in this report is a summary of the completed review. Applicable Subdivision Review Criteria, Section 38.240.150.B, BMC. In considering applications for subdivision approval under this title, the advisory boards and City Commission shall consider the following: 46 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 13 of 30 1) Compliance with development standards and policies of the City, the City’s Growth Policies, zoning standards, and the survey requirements of Part 4 of the Montana Subdivision and Platting Act. Appendix A of this report outlines how the preliminary plat would positively address the Growth Policies of the Bozeman Community Plan. The proposed five lots meet the requirements of the Bozeman Municipal Code (BMC). The preliminary plat was prepared in accordance with the surveying and monumentation requirements of the Montana Subdivision and Platting Act by a Professional Engineer registered in the State of Montana. As noted in Code provision No. 1, the final plat must comply with State statute Administrative Rules of Montana, and the Bozeman Municipal Code. The final plat must comply with the standards identified and referenced in the Bozeman Municipal Code. Per Condition of Approval No. 1, the subdivider is advised that unmet code provisions, or code provisions not specifically listed as a condition of approval, do not, in any way, create a waiver or other relaxation of the lawful requirements of the Bozeman Municipal Code or State law. Sections 3 and 4 of this report identify the condition of approval and code provisions necessary to meet all municipal standards and mitigate potential adverse impacts associated with development of this subdivision. The listed code requirements address necessary documentation and compliance with standards. Therefore, upon satisfaction of the condition and all code provisions the subdivision would comply with the subdivision regulations. 2) Public notice and Comment in compliance with the local subdivision review procedures provided for in Part 6 of the Montana Subdivision and Platting Act. The City Commission public meeting was properly noticed in accordance with the Bozeman Municipal Code. Based on the recommendation of the Development Review Committee (DRC) and other applicable review agencies, as well as any public testimony received on the matter, the City Commission will make the final decision on the subdivider’s request. The subdivider requested review of this subdivision under the terms of 76-3-616 MCA for minor subdivisions, as authorized in 38.240.100. The Department of Community Development received a preliminary plat application on June 16, 2022 and the DRC reviewed the preliminary plat application and determined the submittal did not contain the detailed, supporting information that was sufficient to allow for the continued review of the proposed subdivision. A revised application was received on October 12, 2022. On November 11, 2022, the DRC determined the application was adequate for public notice and the Applicant initiated the public notice procedures of mailing to adjacent property owners and posting a sign on the property. The Applicant posted a public notice on the subject property on November 11, 2022. The Applicant sent public notice to physically adjacent landowners and any purchasers under contract of proposed lots via certified mail, and to all other landowners of record within 200- feet of the subject property via first-class mail, on November 11, 2022. No public comment has been received on this application. Due to unforeseen circumstances, the staff report for the 47 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 14 of 30 December 20, 2022 City Commission consideration of this Preliminary Plat did not make the deadline for the December 20th Commission agenda. Therefore, the application was re-advertised on December 23, 2022 for a January 10, 2023 City Commission meeting by posting the property and mailing to adjacent property owners. 3) Compliance with Chapter 38, BMC and other relevant regulations. Community Development staff and the DRC reviewed the preliminary plat against all applicable regulations and the application complies with the BMC and all other relevant regulations with conditions and code corrections. This report includes the Condition of Approval and required code provisions as recommended by the DRC for consideration by the City Commission to complete the application processing for final plat approval. All municipal water and sewer facilities would conform to the regulations outlined by the Montana Department of Environmental Quality and the requirements of the Design Standards and Specifications Policy and the City of Bozeman Modifications to Montana Public Works Standard Specifications. 4) Easements.The provision of easements to and within the subdivision for the location and installation of any necessary utilities. Code provision No. 5 requires the Applicant to establish an agricultural water users’ facility easement for that portion of East Catron Creek crossing the Site. Code provision No. 3 requires the Applicant to secure a maintenance access easement from the City for the Property Owners Association to access stormwater facilities within Park lots; this must be accomplished prior to final plat approval.Code Provision No. 7 requires that all easements, existing and proposed, must be accurately depicted and addressed on the final plat and in the final plat application. Public utilities are located within dedicated street right of ways. 5) Lot Access.The provision of legal and physical access to each lot within the subdivision and the notation of that access on the applicable plat and any instrument transferring the parcel. The final plat will provide legal and physical access to each parcel within the subdivision. All proposed lots will have frontage on public streets constructed to City standards with lot frontage meeting minimum standards shown on the preliminary plat. 38.220.060 Documentation of compliance with adopted standards. The Development Review Committee (DRC) completed a subdivision pre-application plan review on December 22, 2021 and no variances were requested. Staff offers the following summary comments on the documents required with Article 38.220.060, BMC. 38.220.060.A.1.Surface Water.East Catron Creek runs North-South through the eastern portion of the site. East Catron Creek on the Site does not have a FEMA delineated floodplain. The approved Phase I Site Plan application, Project No. 19308, included the necessary wetland permits for the construction of 48 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 15 of 30 the bridge pedestrian crossings. All required permitting was done prior to construction, which has been completed. The tributary to East Catron Creek and the associated wetlands with wetland setbacks are included in Lots 2 and 3 on the plat. There is a recorded deed restriction covering the lands and wetlands of the creek in Document No. 2449987 recorded in 2013. There is a 50-foot wetland setback from the edge of the wetlands surrounding East Catron Creek which would be maintained by this subdivision and all construction would remain outside of this setback. 38.220.060.A.2.Floodplains.The tributary to East Catron Creek adjacent to the property is shown on Firm panel 30031C0814D and does not have a FEMA delineated floodplain. The subdivision is not located within a known floodplain. 38.220.060.A.3.Groundwater.Groundwater monitoring was conducted on the site in 2020 during the anticipated peak season for high groundwater levels. Seasonal high groundwater depths were at 4.11’ to 6.68’ on the Northwest side, 5.32’ to 6.11’ on the Northeast side, 4.58’ to 4.89’ on the Southeast side and 6.22’ to 6.68 on the Southwest side. The following standard language is shown as a condition of approval on Sheet 4 of the plat “This subdivision is in a known area of high groundwater. No crawl spaces or basements may be constructed. Sump pumps are not allowed to be connected to the sanitary sewer system or the stormwater drainage system. Sump pumps may not discharge onto streets or into the curb and gutter.” This is a standard provision to alert lot owners of the high ground water on the lot and to flooding hazards if a basement is built. This subdivision will avoid groundwater degradation through the utilization of City sewer and water mains as well as stormwater control measures in accordance with the City of Bozeman design standards. The groundwater recharge areas (opens space and stormwater retention ponds) will avoid being degraded through maintenance provided by the Owner’s Association. The project will have indoor water use provided by the City of Bozeman, while groundwater would be used for open space irrigation; 3.24 acres of lawn and garden irrigation will be provided by groundwater wells, up to 7.38 AF (or to 8.1 AF, using our exemption standard). The groundwater use for this project does not exceed 10 AF, so no water right permitting is required by DNRC. Each well cannot exceed a diversion rate of 35 GPM. 38.220.060.A.4.Geology – Soils – Slopes.A Geotechnical Report conducted for the property was submitted. The site is geologically characterized as containing gravel deposits which range from pebble to boulder size and include sand, silt, and clay. These deposits are generally alluvial terrace, abandoned channel and floodplain, remnant alluvial fan, and local glacial outwash. The gravel is predominately subrounded to subangular and reportedly extend down to as much as 165 feet. Upper tertiary sediments or sedimentary rock (Tsu) also frequent the Bozeman area according to the Montana Bureau of Mines and Geology (MBMG), Geologic Map of Montana. These formations consist of conglomerate, tuffaceous sandstone and siltstone, marlstone, and equivalent sediment and ash beds. 49 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 16 of 30 Based on the subsurface conditions encountered, the site falls under seismic Site Class D. Standard City Building Code requirements apply. 38.220.060.A.5.Vegetation.No vegetation currently rests on steep or unstable soils. No vegetation is currently on soils highly susceptible to wind or water erosion. The Nexus Point development immediately to the North was mapped for weeds and the following were found on-site: Henbane, Rush Skeletons, Thistles, Knapweeds and Hoary Alyssum. A weed management plan with 406 Weed Control and Braxton Development is under contract. The application with Gallatin County Weed District is included with this application. Wetlands are located on the eastern portion of the site but would not be altered.The subdivision is in accordance with the approved 2131 Graf Master Site Plan. The undisturbed portions of the property are undeveloped. The tributary to East Catron Creek and the associated wetlands with wetland setbacks would be located in Lots 2 and 3. 38.220.060.A.6.Wildlife.No significant wildlife areas exist on site. The area has historically been used as agricultural land and therefore is not a significant habitat for wildlife. The occasional deer and birds have been spotted on site by the Applicant before construction began. No known fish populations exist in East Catron Creek as the creek is dry for portions of the year. The implementation of temporary Best Management Practices (BMPs) during construction (e.g. silt fences, straw wattles) as well as permanent BMPs post construction including stabilization of the slopes with vegetation. All land included in the streets and public parks will be dedicated to the City of Bozeman for public use and enjoyment. All wetlands will be located in Lot 2 and Lot 3 with minimal impacts to the tributary to East Catron Creek and associated wetlands. A 50-foot setback is required and provided to minimize the degradation of the wetlands East Catron Creek. The Applicant received his “310 Permit” from the Gallatin Conservation District in May 2019 to relocate the portion of East Catron Creek on the Site and to add 2 additional pedestrian crossings across the relocated creek. It is not anticipated that subdivision of the subject property would adversely impact wildlife. Effects from humans would be minimal because the site does not contain significant wildlife. All wetlands would be located in Lot 2 and Lot 3 with minimal impacts to the tributary to East Catron Creek and associated wetlands. The implementation of temporary Best Management Practices (BMPs) during construction (e.g. silt fences, straw wattles) as well as permanent BMPs post construction including stabilization of the slopes with vegetation. All land included in the streets and public parks would be dedicated to the City of Bozeman for public use and enjoyment. All wetlands would be located in Lot 2 and Lot 3 with minimal impacts to the tributary to East Catron Creek and associated wetlands. A 50-foot setback is required to minimize the degradation of the wetlands East Catron Creek. 50 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 17 of 30 38.220.060.A.7.Agriculture.The Site is no longer in agricultural use. It is not anticipated that the development of the subdivision will have adverse impacts on Agriculture. 38.220.060.A.8.Agricultural Water User Facilities. There are no irrigation ditches or agricultural water user facilities located on the Site. The tributary to East Catron creek on the east side of the subdivision would not be significantly disturbed and is currently protected under a deeded wetlands per Document 2449987. Code provision No. 5 requires the Applicant to establish an agricultural water users’ facility easement for that portion of East Catron Creek crossing the Site. 38.220.060.A.9.Water and Sanitary Sewer. The City of Bozeman approved the infrastructure plans for water and sewer and provided a letter indicating that adequate capacity exists within the City system to serve the proposed subdivision. New water and sewer infrastructure is already installed on the site to serve the future development’s residents. The sewer main wouldconnect to the existing City of Bozeman system on South 21st Avenue. The water mains would be looped connected to the existing City of Bozeman system in South 21st Avenue and Graf Street.The sewer main would be extended from the existing 8” PVC stub at the intersection of Lantern Drive and South 21st Avenue. The sewer mains would be 8” in diameter to serve the future subdivision. The water main would connect to the existing City of Bozeman utilities at two locations. The first is the current stub at the intersection of Lantern Drive and South 21st Avenue and the second is a new tap located within Graf Street. The water mains would be 8” in diameter. The infrastructure has already been reviewed and approved by the City and DEQ. Code provision No. 2 assures that all infrastructure, including roads, water, sanitary sewer, stormwater facilities, sidewalks and street lighting must be complete and accepted by the City before final plat approval. This includes Lantern Drive, South 21st Street, the widening of 19th Avenue and improvements along Graf Street. Cash-in-lieu of water rights are proposed to be paid prior to final plat per Code provision No. 4. 38.220.060.A.10.Stormwater Management.The City of Bozeman approved the infrastructure plans for stormwater and the stormwater infrastructure was constructed in the spring of 2022 per approved plans. All water and sewer utilities will be installed at one time. Public storm utilities located within South 21st Avenue will be installed with the construction of Phase I. On Site stormwater facilities will be constructed with each phase. The construction of South 21st Avenue and the trail corridor sidewalks will be installed prior to receiving building occupancy. Code provision No. 2 assures that all infrastructure, including roads, water, sanitary sewer, stormwater facilities, sidewalks and street lighting must be complete and accepted by the City before final plat approval. This includes Lantern Drive, South 21st Street, widening of 19th Avenue and improvements along Graf Street. Code provision No. 3 requires the Applicant to provide an exhibit with the stormwater maintenance plan identifying all the stormwater features that the Property Owners Association (POA) needs to maintain and this information must be included in the final plat Covenants, Conditions and Restrictions (CC&R) document. 51 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 18 of 30 38.220.060.A.11.Streets, Roads and Alleys.The City of Bozeman has approved the infrastructure plans for streets, roads, and alleys. Roadway easements were dedicated with the Site Plan application and the roadways are anticipated for construction in the spring of 2022. Code provision No. 2 assures that all infrastructure, including roads, water, sanitary sewer, stormwater facilities, sidewalks and street lighting must be complete and accepted by the City before final plat approval. This includes Lantern Drive, South 21st Avenue, widening of 19th Avenue and improvements along Graf Street. An extension of existing South 21st Avenue is under construction and will tie into existing Graf Street. The local public roadway extension would maintain a 60’ ROW and would be installed per City of Bozeman and MDEQ roadway standards. No individual lots or tracts have access directly to arterial streets or roads. Upon acceptance of South 21st Avenue, this road would be maintained by the City of Bozeman. The public road of South 21st Avenue willbe dedicated to the City and would be maintained by the City. Interior drive lanes beyond the right of way will be maintained by the Owner’s Association or the lot’s respective owners. The subdivision has several different pedestrian pathways including a 10-foot wide public concrete sidewalk running North-South located on the West end of the site. An 8-foot wide public asphalt pathway running East-West through the middle of the site. An 8-foot wide pervious paver trail running North-South located on East end of the site connecting to Lantern Park and the existing sidewalk located along South 19th Avenue. A traffic impact study was performed by Marvin & Associates for both the Nexus Point and Graf Street Subdivision and is included in this submittal. It concluded that future traffic (year 2038) on area streets is projected to increase significantlyover current traffic volumes. Even with significant growth, in combination with full development of the Nexus Point & Graf Street Apartments development, all ofthe key intersectionswilloperate at or above LOS “C” and no mitigatingmeasures would be required at the study intersections. Pursuant to BMC 38.400.060.B.4, a Level of Service (LOS) “C” is deemed an acceptable service capacity. Walkability, Transit and Bike ability The City of Bozeman requires street frontage sidewalk to be installed with each phase. Sidewalks must be installed along the south side of Lantern Drive, both sides of the South 21st Avenue extension through the Site, along the north side of Graf Street and along the west side of South 19th Avenue. There is a mid-block pedestrian trail that bisects the Site in an east-west orientation that connects from South 19th Avenue, through the East Catron Creek wetlands, westward to a 30- foot wide public park easement along the Site’s western boundary. That easement would be developed by the Applicant as a publicly-accessible trail. Lastly, there is a public trail corridor easement that meanders along the eastern wetlands area in a north-south orientation from Graf Street to the north side of the new Lantern Park. 52 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 19 of 30 Please also see the discussion in Appendix A regarding walkability of this Site and area. Site plan applications for developments within the subdivision require pathways, sidewalks and bike parking facilities. 38.220.060.A.12.Non-Municipal Utilities.The Utilities were submitted, reviewed and approved for the 2131 Graf Site Plan application. 38.220.060.A.13.Land Use.A waiver is requested for Land Use Supplement information. The necessary land use information was submitted and reviewed with the 2131 Graf Site Plan application. 38.220.060.A.14.Parks and Recreation Facilities.A Park Plan and associated park and recreation facilities information was submitted, reviewed, and approved with the 2131 Graf Site Plan application. A parkland calculation table is included on Sheet 1 of the plat. Code provision No. 6 assures that the proper parkland is provided. Code Provision No. 3 requires the Applicant to secure a maintenance access easement from the City for the Property Owners Association to access stormwater facilities within Park lots; this must be accomplished prior to final plat approval. 38.220.060.A.15.Neighborhood Center Plan. This 26 acre development has its own “neighborhood center” with its clubhouses, trails, park and wetlands area. The necessary neighborhood center plan information was submitted, reviewed, and approved with the 2131 Graf Master Site Plan application. 38.220.060.A.16.Lighting Plan.The necessary lighting plan information was submitted, reviewed, and approved with the 2131 Graf Master Site Plan and Phase I Site Plan applications. The approved lighting plans included public street lighting and site lighting. Public street lighting was expected to be completed this past summer with the roadways. Code provision No. 2 assures that all infrastructure, including roads, water, sanitary sewer, stormwater facilities, sidewalks and street lighting must be complete and accepted by the City before final plat approval. This includes Lantern Drive, South 21st Street, widening of 19th Avenue and improvements along Graf Street. 38.220.060.A.17.Miscellaneous. The necessary information was submitted and reviewed with the 2131 Graf Site Plan application. Educational Facilities.A waiver is requested for Educational Facilities Supplement information. The project received Site Plan approval. Concurrent construction.Concurrent construction of public infrastructure with the site plan for Phase I was granted by the City and an Improvements Agreement and Financial Surety for completion of these improvements has been provided.Code provision No. 2 assures that all infrastructure, including roads, water, sanitary sewer, stormwater facilities, sidewalks and street lighting must be complete and accepted by the City before final plat approval. This includes Lantern Drive, South 21st Street, widening of 19th Avenue and improvements along Graf Street. 53 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 20 of 30 Hazards.There are no known potential hazards such as mining activity, potential subsidence, high pressure gas lines, dilapidated structure or high voltage power lines located within the proposed subdivision. Wildlands-urban interface.The subdivision is not located in the wildlands-urban interface per Gallatin County Wildlife Urban Interface Areas and Fire District Map. The land has been used for agriculture and has lain fallow for a number of years. There is not a significant habitat for wildlife on the Site. The occasional deer and birds have been spotted on the Site prior to construction activities. No known fish populations exist in the East Catron Creek as the creek is dry for portions of the year. Public Lands.Apart from the 2.1 acres of land proposed to be dedicated to the City for the Lantern Park on the Site and the Nexus Point subdivision, there are no public lands within 200 feet of the Site. Historical Features. The Site is former agricultural land that is now fallow. It is not anticipated that Historical Features will be encountered on the Site. 38.220.060.A.18.Affordable Housing.The proposed 457 apartment dwelling units are proposed to be market-rate rental units. SECTION 7 - FINDINGS OF FACT, ORDER AND APPEAL PROVISIONS A.PURSUANT to Chapter 38, Article 3, BMC, and other applicable sections of Chapter 38, BMC, public notice was given, opportunity to submit comment was provided to affected parties, and a review of the preliminary plat described in these findings of fact was conducted. B.The purposes of the preliminary plat review were to consider all relevant evidence relating to public health, safety, welfare, and the other purposes of Chapter 38, BMC; to evaluate the proposal against the criteria and standards of Chapter 38 BMC, BMC; and to determine whether the plat should be approved, conditionally approved, or denied. C.The matter of the preliminary plat application was considered by the City Commission at a public hearing on December 20, 2022 at which time the Department of Community Development Staff reviewed the project, submitted and summarized recommended conditions of approval, and summarized the public comment submitted to the City prior to the public hearing. D.The Applicant acknowledged understanding and agreement with the recommended conditions of approval, code provisions. E.The City Commission requested public comment at the public hearing on December 20, 2022 and no one sought to offer comment. F.It appeared to the City Commission that all parties and the public wishing to examine the proposed preliminary plat and offer comment were given the opportunity to do so. After receiving the recommendation of the relevant advisory bodies established by Article 38.210, BMC, and 54 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 21 of 30 considering all matters of record presented with the application and during the public comment period defined by Chapter 38, BMC, the City Commission has found that the proposed preliminary plat would comply with the requirements of the Bozeman Municipal Code if certain conditions were imposed. Therefore, being fully advised of all matters having come before her regarding this application, the City Commission makes the following decision. G.The preliminary plat has been found to meet the criteria of Chapter 38, BMC, and is therefore approved, subject to the conditions listed in Section 3 of this report and the correction of any elements not in conformance with the standards of the Chapter including those identified in Section 4 of this report. The evidence contained in the submittal materials, advisory body review, public testimony, and this report, justify the conditions imposed on this development to ensure that the final site plan and subsequent construction complies with all applicable regulations, and all applicable criteria of Chapter 38, BMC. H.This City Commission order may be appealed by bringing an action in the Eighteenth District Court of Gallatin County, within 30 days after the adoption of this document by the City Commission, by following the procedures of Section 76-3-625, MCA. The preliminary approval of this subdivision shall be effective for three (3) years from the date of the signed Findings of Fact and Order approval. At the end of this period the City may, at the request of the subdivider, grant an extension to its approval for a period of mutually agreed upon time. DATED this ________ day of _____________________, 2023 BOZEMAN CITY COMMISSION _________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: _______________________________ Mike Maas City Clerk 55 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 22 of 30 APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 56 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 23 of 30 APPENDIX A – PROJECT SITE ZONING AND GROWTH POLICY Zoning Designation and Land Uses: The subject property is zoned R-4, Residential High Density District. The intent of the R-4 residential medium density district is to provide for high-density residential development through a variety of housing types within the city with associated service functions. This purpose is accomplished by: 1. Providing for minimum lot sizes in developed areas consistent with the established development patterns while providing greater flexibility for clustering lots and mixing housing types in newly developed areas. 2. Providing for a variety of compatible housing types, including single and multi-household dwellings to serve the varying needs of the community's residents. 3. Allowing office use as a secondary use, measured by percentage of total building area. Use of this zone is appropriate for areas adjacent to mixed-use districts, commercial districts, and/or served by transit to accommodate a higher density of residents in close proximity to jobs and services Growth Policy / Future Land Use Designation.The subject property is designated as Urban Neighborhood. This category primarily includes urban density homes in a variety of types, shapes, sizes, and intensities. Large areas of any single type of housing are discouraged. In limited instances, an area may develop at a lower gross density due to site constraints and/or natural features such as floodplains or steep slopes. Complementary uses such as parks, home-based occupations, fire stations, churches, schools, and some neighborhood-serving commerce provide activity centers for community gathering and services. This proposed subdivision would provide rental apartment dwelling units exclusively. A similar apartment complex to the north, the Nexus Point development, would provide similar rental apartment units, a clubhouse for residents, half the Lantern Park, trails and wetland areas. The 2131 Graf Street development proposed for this 5-lot minor subdivision would be constructed in an area of the City that is emerging as a mixed homeowner and rental housing area. This neighborhood is emerging and is not yet fully developed with neighborhood-serving businesses, transit service or parks. The addition of housing and the residents’ purchasing power are expected to attract such businesses to the area and are expected to provide transit ridership demand. The development would have its own recreational and social clubhouse to foster/facilitate neighbors interacting. This serves as its own neighborhood center. This proposed subdivision is well-suited to implement the Urban Neighborhood by providing lots that would support apartment buildings in an area that is developing as a multi-household neighborhood. The area is developing as a neighborhood that would serve workers and students of the nearby Montana State University. 57 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 24 of 30 The multi-household lots would support construction of rental housing which is contemplated throughout the Bozeman Community Plan 2020. The growth policy encourages development to be walkable: Goal N-1: Support well-planned, walkable neighborhoods. The Community Plan’s Glossary (Appendix F) describes what they mean by neighborhoods as: “Neighborhood. A walkable area of Bozeman with a distinct character that may have some boundaries defined by physical barriers, such as major roads or railroads or by natural features, such as watercourses or topography. A neighborhood includes both geographic (place-oriented) and social (people oriented) components and is often characterized by residents sharing common amenities such as an elementary school, park, shops, community center or other similar elements. As a distinct and identified area, often with its own name, neighborhoods are recognized as fostering community spirit and a sense of place, factors recognized as important in community planning.” The Plan’s Glossary defines “Walkable” as: “Walkable. A walkable area has: • A center, whether it’s a main street or a public space. • People: Enough people for businesses to flourish and for public transit to run frequently. • Parks and public space: Functional and pleasant public places to gather and play. • Pedestrian design: Buildings are close to the street, parking lots are relegated to the back. • Schools and workplaces: Close enough that walking to and from home to these destinations is realistic. • Complete streets: Streets designed for bicyclists, pedestrians, and transit.” The Site and area are still developing as a neighborhood and a walkable neighborhood. The companion Nexus Point development immediately north of the Site features connecting trails, the wetlands nature area, a City Park, a clubhouse for residents, and a density that encourages residents interactions within these amenities. The proposed development provides its own 1.2 acre City Park as well as nearly 3 acres of common open space wetlands. The 1.2 acre City Park at the northeast corner of the Site is matched by a similar sized Park at the abutting the Site to the north at the proposed Nexus Point Major Subdivision. The Executive Park is located a half block west of the Site and a 9 acre City Park located northwest of the Site called “City Park 2” which is provided by the South University District Phase 3 development. Morning Star Elementary School is located less than a quarter mile to the east of the Site and Montana State University is located a couple blocks north of the Site. 58 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 25 of 30 The proposed subdivision meets or positively addresses the following Bozeman Community Plan 2020 goals and policies: N-1.1 Promote housing diversity. N-1.10 Increase connectivity between parks and neighborhoods through continued trail and sidewalk development. Prioritize closing gaps within the network. N-1.11 Enable a gradual and predictable increase in density in developed areas over time. N-1.5 Encourage neighborhood focal point development with functions, activities, and facilities that can be sustained over time. Maintain standards for placement of community focal points and services within new development. N-4.4 Ensure an adequate supply of off leash facilities to meet the demand of Bozeman dog owners. The Lantern Park has a dog park area. DCD-1.5 Identify underutilized sites, vacant, and undeveloped sites for possible development or redevelopment, including evaluating possible development incentives. DCD-2.1 Coordinate infrastructure development, land use development, and other City actions and priorities through community planning. DCD-2.2 Support higher density development along main corridors and at high visibility street corners to accommodate population growth and support businesses. DCD-2.7 Encourage the location of higher density housing and public transit routes in proximity to one another. The “Gold Line” transit line maintains a bus stop about ¾ mile from Graf Street on 19th Avenue between Stucky and Kagy streets. Goal EPO-2: Work to ensure that development is responsive to natural features. EPO-2.1 Where appropriate, activate connections to waterways by creating locations, adjacent trails, and amenities encouraging people to access them. EPO-2.2 Work with the U.S. Army Corps of Engineers to keep wetlands mitigation within the Gallatin Valley rather than locating to other watersheds. [The Applicant received his “310 Permit” from the Gallatin Conservation District in May 2019 to relocate the creek and road and add 2 additional pedestrian crossings across the relocated creek.] EPO-2.3 Identify, prioritize, and preserve key wildlife habitat and corridors. The Community Plan defines Site assets as follows: AGRICULTURAL WATER USER FACILITIES Agricultural water user facilities are defined as follows: Those facilities, which include but are not limited to ditches, pipes, and other water conveying facilities that provide water for irrigation and stock watering on agricultural lands, with said lands being defined in MCA 15-7-202 59 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 26 of 30 The following presumptions apply: 1. Agricultural uses are not generally urban uses. The transition of agricultural lands to urban uses would often remove the need for agricultural water user facilities within the urbanized area. Where a need for protection due to ongoing use for water conveyance can be demonstrated, provision for protection of the facility must be made. 2. The formal abandonment and removal of all agricultural water user facilities within the City must occur in accordance with Montana law. Should the beneficial use cease in the future, an easement for protection of agricultural water user facilities may be removed. 3. The use of agricultural water user facilities for stormwater does not constitute beneficial use for the purposes of presumption 2 above unless agreed to by the facility owner. Stormwater facilities may require separate easements or other procedures. 4. Agricultural Water User Facilities are subject to Section 70-17-112, and Section 85-7-2211 and 85-7-2212, MCA. The Natural Environment is defined as the physical conditions which exist within a given area, including land, water, mineral, flora, fauna, noise, light, and objects of historic or aesthetic significance. The following presumptions apply: 1. The natural environment is fundamentally linked with our economic development, as an attraction to new and expanding businesses, a tourist destination, and a basic component of Bozeman’s character. 2.The natural environment should be conserved and development should respect significant natural features and systems. Impacts to consider include road locations, stormwater treatment and discharges, potential contamination of ground or surface water, building placement, and others that may be identified through subdivision, zoning, data inventories, and other implementation tools. Mitigation of negative development impacts is required. WILDLIFE AND WILDLIFE HABITAT Wildlife means animals that are neither human, domesticated, nor feral descendants of commonly domesticated animals. Wildlife habitat means the place or type of habitat where wildlife naturally thrives. Habitat excludes areas developed for human use including agriculture. The following presumptions apply: 1. Lands within the designated urban area are typically utilized for development purposes and would have a minor impact on wildlife habitat. Watercourse corridors and wetlands are an exception to this presumption. The designated urban area includes all lands except the No City Services category shown on the future land use map. 2. The habitat needs of larger and/or predatory wildlife species such as deer, moose, bears, coyotes, or similar species would not be met within urban density development and would likely be in conflict with people. Therefore, these types of animals are found to be undesirable within the City boundaries. 60 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 27 of 30 3. Smaller species, especially birds, are compatible within urban density development and should be preserved, including the encouragement of suitable habitats. 4. High value wetlands, stream corridors, and similar high value habitats should be preserved in accordance with the City’s adopted standards. These provide a variety of recreational, environmental sustainability, and safety values such as flood control as well as habitat. Walkability.The growth policy encourages development to be walkable, which is defined in the glossary as: Walkable. A walkable area has: • A center, whether it’s a main street or a public space. • People: Enough people for businesses to flourish and for public transit to run frequently. • Parks and public space: Functional and pleasant public places to gather and play. • Pedestrian design: Buildings are close to the street, parking lots are relegated to the back. • Schools and workplaces: Close enough that walking to and from home to these destinations is realistic. • Complete streets: Streets designed for bicyclists, pedestrians, and transit. The Graf Street development, which is the subject of this subdivision preliminary plat, would provide its own neighborhood center in the park, open space, trails and clubhouse on the Site. The development provides the southern half of the new Lantern Park with the Nexus Point development providing the north half of the City park. Trails and the wetlands conservation area link the two developments to the Lantern Park. Enterprise Park is located a half block to the west of the Site and the South University District City Park 2 is located two blocks to the northeast. The additional density of the Graf Street and Nexus Point developments are expected to provide the “rooftops” needed to attract neighborhood-serving businesses to the area. The roads abutting the Site would be improved to City “complete streets” standards. The University of Montana is within walking and biking distance The site has a Walk Score of 4, a Transit score of zero, and a Bike Score of 49. Average walk score for the city as a whole is 48 out of 100. These values are provided by Walk Score, a private organization which presents information on real estate and transportation through walkscore.com. The algorithm which produces these numbers is proprietary. A score is not an indication of safety or continuity of services or routes. Scores are influenced by proximity of housing, transit, and services and expected ability, as determined by the algorithm, to meet basic needs without using a car. This Site is in an undeveloped area of the City without nearby grocery stores and employment opportunities within a relatively short distance. There are no BMC development standards relating to the walk score. Overall, the City of Bozeman walk score is 47 out of 100. 61 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 28 of 30 Adopted Growth Policy Designation: Table 4 of the Bozeman Community Plan 2020 shows the correlation between future land use map designations and implementing zoning districts. (See below for the Table) APPENDIX B – DETAILED PROJECT DESCRIPTION Project Background and Description 2131 Graf Minor Subdivision is a proposed 5 lot minor subdivision, is within a R-4 (High Density Residential District) zoned property located directly West of South 19th Avenue and between Lantern Drive and Graf Street. The minor subdivision is located on a 25.99-acre parcel. Development plans for the property has already been reviewed and approved through a Master Site Plan and Phase I Site Plan, Project No. 19308 and 19309. South 21st Avenue would be extended between Lantern Drive and Graf Street with Phase I. Water and sewer main extensions 62 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 29 of 30 for the entire property would be installed to serve the minor subdivision with Phase I. A 2.6-acre park is proposed on the north side of the subdivision and has been reviewed and approved with the master site plan. Development of the property would be phased: Phase I = the north side consisting of 3 lots, Phase II = the south side consisting of 2 lots. Lot 1, Block 1 shows the location of the proposed subdivision Lantern Park which will be installed with Phase I of 2131 Graf Apartments project. The Lantern Park is being constructed in cooperation with Nexus Point Apartments project, located to the north. This parkland consists of 2.116 acres located in the Northeast corner of the property. The park will include pavilions, a dog park, playground area as well as an exercise trail and equipment. In addition, 0.62 acres of a public park easement will be provided within the trail corridor bordering the West side of the subdivision. The Applicant previously coordinated with the City of Bozeman Recreation and Parks Department on the layout and development of the park plan and received approval from the Parks Subdivision Review Board. The subdivision will have a trail corridor that will give pedestrian east-west access through the development to South 19th Avenue. Sidewalks will be installed on both side of South 21st Avenue from existing Lantern Drive to Graf Street. A pedestrian trail connecting the park sidewalks to 19th Street will be also be constructed with the park development. A footbridge for the park pedestrian connection has been constructed across the East Catron Creek wetlands. The stormwater design for the development will consist of different aspects throughout the site that include surface drainage, pervious pavers, sub-surface retention chambers and gravel infiltration systems. The public roadway along South 21st Avenue will utilize four curb inlets to convey water runoff to an underground storage/infiltration system. The interior drainage of the development will utilize several pervious paver retention/infiltration systems located within proposed parking and buried gravel infiltration systems located in future landscaped areas. Water and sewer mains will be extended from existing City of Bozeman utilities. The sewer main will be extended from the existing 8” PVC stub at the intersection of Lantern Drive and South 21st Avenue. The sewer mains will be 8” in diameter to serve the future subdivision. The water main will connect to the existing City of Bozeman utilities at two locations. The first being the current stub at the intersection of Lantern Drive and South 21st Avenue and the second being a new tap located within Graf Street. The water mains will be 8” in diameter. The infrastructure has already been reviewed and approved by the City and DEQ. All water and sewer utilities will be installed at one time. Public storm utilities located within South 21st Avenue will be installed with the construction of Phase I. On Site stormwater facilities will be constructed with each phase. The construction of South 21st Avenue and the trail corridor sidewalks will be installed prior to receiving building occupancy for any lot. 63 22188; 2131 Graf Minor Subdivision Preliminary Plat Finding of Fact Staff Report Page 30 of 30 The site has a wetland area is located within Block 1, lot 2 and Block 1, Lot 3. As noted above, the Site has an approved Master Site Plan for a two phase development of 457 apartment dwelling units, a clubhouse, a maintenance building, parking, common open space, landscaping and a City Park. The development has an approved Phase 1 Site Plan for 198 apartment dwelling units. The development was approved as rental housing on the existing, single lot under single ownership. APPENDIX C – NOTICING AND PUBLIC COMMENT Per BMC 38.220.420, public notice for this subdivision preliminary plat Commission action must be provided at least 15 and not more than 45 days prior to the City Commission action. The application was originally scheduled for the December 20, 2022 City Commission meeting and public notice for that public meeting began on November 11, 2022. The Applicant posted public notice on the subject property on November 11, 2022 and sent public notice to physically adjacent landowners via certified mail, and to all other landowners of record within 200-feet of the subject property via first class mail, on that same date. However, due to unforeseen illness of the reviewing planner, the staff report for the December 20th Commission date was delayed and a new public notice for the new January 23, 2023 Commission meeting was initiated on December 23, 2022. As of the date of this report, January 13, 2023, no public comment has been received. APPENDIX D – OWNER INFORMATION AND REVIEWING STAFF Owner: Will Ralph of Graf Apartments LLC; P.O. Box 11890, Bozeman, MT 59719 Applicant:Madison Engineering, 895 Technology Blvd, Suite 203, Bozeman, MT 59718 Representative:Erik Ringsak of Madison Engineering Report By: Susana Montana, Senior Planner FISCAL EFFECTS No unusual fiscal effects have been identified. No presently budgeted funds would be changed by this subdivision. APPLICATION LINK The full application and file of record can be viewed digitally at https://weblink.bozeman.net/WebLink/Browse.aspx?id=266413&dbid=0&re select the “Project Documents Folder” link and navigate to application 22188, as well as digitally at the Community Development Department at 20 E. Olive Street, Bozeman, MT 59715. 64 65 66 67 68 Memorandum REPORT TO:City Commission FROM:John Van Delinder, Streets Superintendent Nicolas Ross, Director of Transportation and Engineering SUBJECT:Authorize the City Manager to Sign a Notice of Award and Purchase Agreement for One (1) New 2022 Ford F550 Metro Sized Truck Mounted Attenuator (TMA) MEETING DATE:February 7, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Award bid and authorize City Manager to sign Purchase Agreement for a New 2022 Ford F550 Metro Sized Truck Mounted Attenuator (TMA) to J- TECH for a total of $136,331.06. STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:The approved FY23 Street Operation Capital Improvement Program (CIP) and the FY23 approved budget lists the purchase of a Safety Truck (STR118). We only received bids from one vendor and that was J-TECH. The budgeted amount was one hundred thousand dollars ($100,000) from STR118. The extra $36,331.06 will come from the savings where we did not spend all the money we had budgeted for concrete work from STR75. UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the City Commission FISCAL EFFECTS:This item is in the FY23 Streets Operations CIP and approved FY23 budget. Attachments: BID PURCHASE AGREEMENT Notice of Award Quote and Bid Form Report compiled on: January 23, 2023 69 Purchase Agreement Page 1 of 4 BID PURCHASE AGREEMENT THIS AGREEMENT is made this ____day of___________, 2023, by and between the CITY OF BOZEMAN, a municipal corporation organized and existing under the laws of the State of Montana, 121 North Rouse Ave., Montana 59715, hereinafter referred to as “City,” and J-TECH, with a mailing address of 102 Oscar Way, Chester Springs, PA 19425, hereinafter referred to as (“Seller”). In consideration of the mutual promises and agreements hereinafter contained, the parties agree as follows: 1. PROPERTY PURCHASED: Seller agrees to sell and City agrees to purchase the property requested and described in the City’s Bid Specifications, as modified by the parts of Seller’s response accepted by City, all of which is incorporated into this Purchase Agreement by this reference. By accepting this Purchase Agreement, Seller hereby agrees that the sale, use, or incorporation into manufactured products of all machines, software, hardware, materials and other devices furnished under this Purchase Agreement which are not of the Seller’s design, composition, or manufacture shall be free and clear of infringement of any valid patent, copyright, or trademark. Seller shall hold the City harmless from any and all costs and expenses, including attorney fees, liability, and loss of any kind growing out of claims, suits, or actions alleging such infringement, and Seller agrees to defend such claims, suits, or actions. The property being purchased (“Property”) consists of: One (1) New Current Model Year 2022 or Newer Metro Sized Truck Mounted Attenuator (TMA) TOTAL PRICE: $136,331.06 2. SPECIFICATIONS: The Seller agrees that all material and workmanship in and upon this Property complies with the City’s Bid Specifications as shown on the Seller’s Bid Form and the Seller’s response thereto as accepted by the City. Unless otherwise agreed to by the City, the City’s Bid Specifications as shown on the Seller’s Bid Form govern in the event of inconsistencies with the Seller’s response to the same. 3. PRICE: The City agrees to pay One hundred Thirty Six Thousand, Three Hundred Thirty One 06/100 Dollars ($136,331.06) as the purchase price. All prices are less any applicable local, state or federal taxes that may be applied to the Property to be purchased. This price is firm and not subject to escalation under agreed to in writing by the City. 4. DELIVERY AND PAYMENT: Time is of the essence in the performance of this Purchase Agreement. Seller assumes full responsibility for all transportation, transportation scheduling, packing, handling, insurance, and other served associated with delivery of the Property. Seller agrees to deliver the above-described Property to the City within ninety (90) days of the receipt of City’s order. Delivery will occur at the City of Bozeman’s Vehicle Maintenance 70 Purchase Agreement Page 2 of 4 Shop (1812 North Rouse Ave., Bozeman, MT 59715), or at a place otherwise selected by City. If delivery of the Property and/or performance of services required under this Purchase Agreement cannot be made Seller shall promptly notify the City of the earliest possible date for delivery or performance. Notwithstanding such notice, if Seller for any reason fails to deliver the Property or perform required services within the time specific or to the City’s satisfaction the City may terminate this Purchase Agreement or any part therefore without liability except or good or services previously provided and accepted. The City’s receipt or acceptance of any part of a non- conforming delivery or service shall not constitute a waiver of any claim, right or remedy the City has under this Purchase Agreement or applicable law. Upon delivery and for a reasonable period thereafter, City has the right to inspect the Property to ensure that it meets Bid Specifications as modified by Seller’s responses accepted by City. If the Property meets the modified Bid Specifications, City shall tender the purchase price stated above to Seller through the City’s normal claim process. Unless otherwise agreed in writing, payment terms shall be net thirty (30) days from the date of receipt of invoice or acceptance of goods and services by the City, whichever occurs last. Payment will be made to Seller at the address previously stated unless Seller provides a different address in writing. Invoices must be mailed to: John Van Delinder, Street Superintendent, PO Box 1230, Bozeman, MT 59771-1230. 5. NONDISCRIMINATION: Seller will not discriminate in the performance of this Agreement on the basis of race, color, religion, creed, sex, age, marital status, national origin, or because of actual or perceived sexual orientation, gender identity or disability and shall ensure this provision applies to all subcontracts let by the Seller in fulfillment of this Purchase Agreement. 6. DEFAULT/ TERMINATION/ REMEDIES: In the event of Seller’s breach of this Purchase Agreement, including if Seller fails to deliver the Property as set forth herein or fails to meet City’s Bid Specifications, City may, at its option, take any or all of the following actions without prejudice to any other rights or remedies available to the City by law: (i) declare the Seller in default and immediately cancel and rescind this Purchase Agreement; (ii) require Seller to repair or replace any equipment or materials used in the Property, and upon Seller’s failure or refusal to do so, repair or replace the same at Seller’s expense; (iii) reject any material or equipment included in the Property containing defective or nonconforming equipment or material and return for credit or replacement at Seller’s option; or (iv) cancel any outstanding deliveries and treat such breach by Seller as Seller’s repudiation of this Purchase Agreement. Thereafter, City may procure substitute property to replace the Property described herein. In such event, Seller is liable to City for the difference between the price set forth herein and the price paid by City for the replacement property. Additionally, the City may pursue any other remedy it has at law or in equity. In the event of the City’s breach hereunder, Seller’s exclusive remedy shall be Seller’s recovery of the material or equipment or of the Purchase Price or portion of the Purchase Price payable for equipment and material delivered to the City prior to such breach. 7. CHANGE ORDERS: The City shall have the right to revoke, amend, or modify this Purchase Agreement or the equipment or material included in the Bid Specifications at any time. Seller’s receipt of City’s written change order without response received by the City within 71 Purchase Agreement Page 3 of 4 10 (ten) business days or Seller’s shipment or other performance reflecting the change, whichever occurs first, shall be Seller’s acceptance of the change without any price or other adjustment. 8. WARRANTY: THE SELLER SHALL WARRANTY THE PROPERTY FOR A MINIMUM OF TWO (2) YEARS AND SHALL ALSO ASSIGN TO THE CITY ALL WARRANTIES FOR ALL COMPONENT PARTS OF THE PROPERTY NOT WARRANTIED BY SELLER. IN ADDITION, THE SELLER AGREES THE PROPERTY IS COVERED BY IMPLIED WARRANTIES FOR MERCHANTABILITY AND FITNESS FOR THE PARTICULAR PURPOSE FOR WHICH IT HAS BEEN PURCHASED. IN ADDITION TO ANY OTHER EXPRESSED OR IMPLIED WARRANTIES AND UNLESS OTHERWISE AGREED IN WRITING, SELLER ALSO WARRANTS THAT ALL EQUIPMENT DELIVERED HEREUNDER WILL BE NEW, SUITABLE FOR USE AS DESCRIBED, OF THE GRADE AND QUALITY SPECIFIED, FREE FROM ALL DEFECTS IN DESIGN, MATERIAL AND WORKMANSHIP; IN CONFORMITY WITH ALL SPECIFICATIONS FURNISHED; IN COMPLIANCE WITH ALL APPLICABLE FEDERAL, STATE AND LOCAL LAWS AND REGULATIONS AND FREE FROM ANY LIENS AND ENCUMBRANCES. THESE WARRANTIES SHALL NOT BE DEEMED TO EXCLUDE SELLER’S STANDARD WARRANTIES OR OTHER RIGHTS OR WARRANTIES WHICH THE CITY MAY HAVE OR OBTAIN. 9. INSURANCE/INDEMNIFICATION: The Seller shall insure the One (1) New Current Model Year 2022 or Newer Metro Sized Truck Mounted Attenuator (TMA) for a minimum of one hundred fifteen thousand dollars ($115,000.000) against all damages during the time the One (1) New Current Model Year 2022 or Newer Metro Sized Truck Mounted Attenuator (TMA) is in the Seller’s possession which time of Seller’s possession shall commence the moment the One (1) New Current Model Year 2022 or Newer Metro Sized Truck Mounted Attenuator (TMA) is picked up from the City of Bozeman by Seller or Seller’s agent until the moment the One (1) New Current Model Year 2022 or Newer Metro Sized Truck Mounted Attenuator (TMA) is returned to the City of Bozeman by Seller or Seller’s agent and accepted by the City. In addition to and independent from the above requirement, from the moment Seller or Seller’s agent takes possession of the One (1) New Current Model Year 2022 or Newer Metro Sized Truck Mounted Attenuator (TMA). Seller shall defend, indemnify, and hold the City harmless against claims, demands, suits, damages, losses, and expenses connected therewith that may be asserted or claimed against, recovered from or suffered by the City by reason of any injury or loss, including but not limited to, personal injury, including bodily injury or death, property damage, occasioned by, growing out of, or in any way arising or resulting from any intentional or negligent act on the part of Seller, it’s agents or employees during the performance of this Purchase Agreement. 10. ASSIGNMENT: Seller may not delegate, subcontract, or assign any duties and services or assign any rights or claims under this Purchase Agreement without the express written consent of City. 11. ENTIRE AGREEMENT: This Agreement, including its appendices, if any, embodies the entire understanding between the parties relating to the subject matter contained herein. No agent or representative of either party has authority to make any representations, 72 Purchase Agreement Page 4 of 4 statements, warranties or agreements not herein expressed and all modifications or amendments of this Agreement, including the appendices, must be in writing and signed by an authorized representative of each of the parties hereto. 12. APPLICABILITY: This Agreement and any extensions hereof shall be governed and construed in accordance with the laws of the State of Montana, and the same is binding upon the parties, their heirs, successors, and assigns. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives the day and year first above written. CITY OF BOZEMAN ______________________________________ SELLER (Type Name Above) By___________________________________ By____________________________________ Jeff Mihelich, City Manager Print Name: ___________________________ Print Title: ____________________________ APPROVED AS TO FORM: By____________________________________ Greg Sullivan, City Attorney 73 NOTICE OF AWARD Dated: February 7, 2023 TO: J-TECH ADDRESS: 102 Oscar Way, Chester Springs, PA 19425 CONTRACT FOR: One (1) New Current Model Year 2022 or Newer Metro Sized Truck Mounted Attenuator (TMA) You are notified that your Bid opened on November 29, 2022 at 2 p.m. for the above Contract has been considered. You are the apparent Successful Bidder and have been awarded a Contract for the: One (1) New Current Model Year 2022 or Newer Metro Sized Truck Mounted Attenuator (TMA) The Contract Price of your Contract is: One hundred Thirty Six thousand, Three Hundred Thirty One 06/100 Dollars ($136,331.06) Two (2) copies of each of the proposed Contract Documents have been signed and One copy accompanies this Notice of Award for your records. CITY OF BOZEMAN, MONTANA BY: __________________________________ (CITY MANAGER) BY: ___________________________________ (CITY CLERK) DATE: _______________________________ 74 75 76 77 78 City of Bozeman Bozeman Street Department Bozeman, MT 59715 Bid specifications and bid form. Note: The bid must be submitted on this form. One (1) New Current Model Year 2022 or Newer Metro Sized Truck Mounted Attenuator (TMA) The vehicle described herein shall be a new North American manufactured from 2022 or newer production and shall be in compliance with the 2022 or current emission laws. All parts and accessories, which are required to compose a complete unit, shall be furnished whether herein stipulated or not. Unless otherwise noted in these specifications, all equipment cataloged as standard shall be furnished and included in the purchase price of the unit. Section 1: Standard Options All standard options, whether expressly stated here or not, shall be included. Cab interior shall be of the manufacturer's medium quality Compliant: • Exception: Section 2: Color Truck shall be white in color Compliant:. Exception: Section 3: Cab & Chassis Truck shall be a standard cab class five (5) chassis, F550 or equivalent Compliant: • Exception: Gross Vehicle Weight Rating shall be nineteen-thousand five hundred (19,500) pounds Compliant: Exception: Truck shall be four-wheel drive Compliant: • Exception: 79 80 81 82 83 84 85 86 87 Memorandum REPORT TO:City Commission FROM:Nick Pericich John Alston SUBJECT:Authorize the City Manager to sign a Notice of Award to Purchase a Dump Truck Replacement in Utilities Department MEETING DATE:February 7, 2023 AGENDA ITEM TYPE:Administration RECOMMENDATION:Authorize the City Manager to sign the notice of award for the new dump truck. STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a mechanism to encourage economic development. BACKGROUND:This is a notice of award to purchase a dump truck replacement in the Utilities Department. The dump truck was part of an approved capital budget and the successful bidder is Floyd's Truck Center in Belgrade. UNRESOLVED ISSUES:none ALTERNATIVES:As determined by the Commission FISCAL EFFECTS:no additional Attachments: Notice_of_Award Dump Truck.docx Report compiled on: January 31, 2023 88 NOTICE OF AWARD Dated: February 7, 2023 TO: Floyd’s Truck Center ADDRESS: 3110 Alaska Frontage Rd. Belgrade MT 59714 CONTRACT FOR: One New Dump Truck (Current Model Year 2023 or newer) You are notified that your Bid opened on January 30th, 2022 at 2 p.m. for the above Contract has been considered. You are the apparent Successful Bidder and have been awarded a Contract for the: One New Dump Truck (Current Model Year 2023 or newer). The Contract Price of your Contract is: One hundred Thirty Three thousand, Seven Hundred and Twenty Three Dollars ($133,723) Two (2)copies of each of the proposed Contract Documents have been signed and One copy accompanies this Notice of Award for your records. CITY OF BOZEMAN, MONTANA BY: __________________________________ (CITY MANAGER) BY: ___________________________________ (CITY CLERK) DATE: _______________________________ 89 Memorandum REPORT TO:City Commission FROM:Mikaela Schultz, Engineer I Nicholas Ross, Director of Transportation and Engineering SUBJECT:Authorize the City Manager to Sign an Irrevocable Offer of Dedication and a Hold Harmless Agreement with Gallatin County for Gallatin County Courts Site Plan (22186) MEETING DATE:February 7, 2023 AGENDA ITEM TYPE:Agreement - Property RECOMMENDATION:Authorize the City Manager to sign an Irrevocable Offer of Dedication and a Hold Harmless Agreement with Gallatin County for Gallatin County Courts Site Plan (22186). STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:Attached is a copy (original to City Clerk) of the partially executed agreement. Engineering staff reviewed the document and found it to be acceptable. UNRESOLVED ISSUES:None ALTERNATIVES: As suggested by the City Commission. FISCAL EFFECTS:None Attachments: Irrevocable Offer of Dedication Hold Harmless Agreement Report compiled on: January 18, 2023 90 91 92 93 94 95 96 97 98 99 Memorandum REPORT TO:City Commission FROM:Kellen Gamradt, Engineer Nick Ross, Director of Transportation and Engineering SUBJECT:Authorize the City Manager to Sign an Amendment 1 to the 2022 CIPP Project with DOWL, LLC to Facilitate the Bidding and Construction Phases of the Project MEETING DATE:February 7, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Approve and authorize the City Manager to sign Amendment No. 1 to the 2022 CIPP Project with DOWL, llc to facilitate the bidding and construction phases of the project STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a mechanism to encourage economic development. BACKGROUND:Attached is a copy of the partially executed amendment with DOWL. This amendment will add scope and fee to the original contract to include bidding and construction professional services for this project. City engineering staff have reviewed the amendment and found it to be commensurate with the work involved. The project will generally include lining an existing 21-inch gravity sewer main in poor structural condition beginning near the northeast corner of Walmart’s Propety off of North 7th Avenue and ending at a 30-inch trunk sewer main connection in Rouse Avenue near the Lehrkinds Propety. This sewer main was installed in 1969 and crosses under the railroad tracks (MRL), interstate 90 (MDOT), along Evergreen Drive (COB), and thru the Lehrkinds Property. This sewer main is very difficult for City crews to access for maintenance and has a high probability of failure. The City is proposing cure-in-place pipe lining to improve the condition of this pipe. A second sewer main along South 19th Avenue between College Street and Lincoln Street has been identified for pipe lining due high groundwater infiltration into the pipe. The existing sewer main is 8-inch diameter vitrified clay pipe, installed in 1963 within the right-of-way of South 19th Avenue. There are very few service connections on this main which makes it an ideal candidate for lining. 100 UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the commission FISCAL EFFECTS:If approved, this amendment will increase the fee on a time and materials basis with a cost not to exceed of $161,295.00 Attachments: 2022_CIPP_DOWL_Amend1.pdf Report compiled on: January 13, 2023 101 406-586-8834 ■ 800-865-9847 (fax) ■ 2090 Stadium Drive ■ Bozeman, Montana 59715 ■ www.dowl.com January 12, 2023 Mr. Kellen Gamradt City of Bozeman P.O. Box 1230 Bozeman, MT 59771 Subject: 2022 CIPP Projects – Amendment for Design, Bidding and Construction Phase Services; 4528.12477.01 Dear Mr. Gamradt: Please find enclosed Amendment No. 1 for the 2022 CIPP Projects, engineering services agreement. The amendment includes adjustment to the design phase services and incorporation of bidding, construction administration, inspection and post construction services. If you have any further questions are comments on the amendment, please let us know. Sincerely, DOWL Kevin R. Johnson, PE, BCEE Project Manager Attachment(s): As stated 102 First Amendment to Professional Services Agreement for 2022 CIPP Projects Page 1 of 2 FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT THIS FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT FOR 2022 CIPP Projects dated February 1, 2022 (the “Agreement”) is made and entered into this _____ day of ____________, 2023, 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 DOWL, LLC, hereinafter referred to as “Contractor.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree to amend the Agreement as follows: 1. Addition to Scope of Work. EXHIBIT A-1 has been added to the engineering services. These services include project management and oversight for bidding and construction of the project. 2. Addition to Payment. See Exhibit A-1, Part 4-Compensation, and Fee estimates attached. 3. Addition to Payment. Unit Rate Schedule (Attachment 1) has been added to the payment provisions. 4. Addition to Scope of Work. Attachment 2 has been added to the scope of work. Duties, responsibilities, and limitations of authority of resident project representative. 5. Agreement still valid. All remaining terms and provisions of the original Agreement remain valid. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** 103 First Amendment to Professional Services Agreement for 2022 CIPP Projects Page 2 of 2 IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA DOWL, LLC. By________________________________ By_____________________________ Jeff Mihelich, City Manager Print Name: Kevin R. Johnson Title: Water Supply & Wastewater Practice Lead APPROVED AS TO FORM By_______________________________ Greg Sullivan, Bozeman City Attorney 104 Exhibit A-1 - Professional Services Agreement Page 1 of 8 Jan 2023 This is EXHIBIT A-1, consisting of 8 pages, is referred to in and part of the Agreement Amendment 01 between Owner and DOWL for Professional Services. Project No. 4528.12477.01 Engineer’s Services Article 1 of the Agreement is supplemented to include the following agreement of the parties. Engineer shall provide Basic and Additional Services as set forth below. PART 1 – BASIC SERVICES A1.01 Introduction, Pre-Design, Permitting Modify the corresponding section as indicated: B.5.e Montana Rail Link (MRL) Application: The original scope included a typical permitting process with MRL given it was not yet known what additional coordination or permitting efforts would be required. MRL requested a visual inspection of the existing casing under the railroad to capture the existing condition of the casing before they could accept the proposed approach of lining the sewer pipe then grouting the annular space between the sewer pipe and casing. This has warranted additional coordination with MRL, hiring of an excavation subcontractor and assistance from the City to expose the casing and perform a partial video inspection of the casing. DOWL facilitated procurement of Temporary Access Permits (T.O.P.’s) and hired a subcontractor to procure the necessary “Railroad Protective” insurance coverage and complete the necessary hydrovac excavation of the end of the casing. These tasks were beyond the original scope of permitting the slip-lining work on the existing sewer, and the costs incurred are subject to the requested adjustment in the original scope and fee. A1.02 Preliminary Design Phase No changes to this phase. A1.03 Final Design Phase No changes to this phase. A1.04 Bidding or Negotiating Phase A. After acceptance by Owner of the bidding documents and the most recent opinion of probable Construction Cost as determined in the Final Design Phase, and upon written authorization by Owner to proceed, Engineer shall: 1. Assist Owner in advertising for bids on QuestCDN plan distribution site and obtaining bids or proposals for the Work. It is assumed hard copy sets of the drawings and specifications will not be provided to prospective bidders. 2. Prepare and agenda and attend pre-bid conference. 3. Assist in developing addenda as appropriate to clarify, correct, or change the bidding documents. One addendum is assumed following the pre-bid meeting to distribute meeting minutes and provide written clarifications, as needed, to questions addressed at the pre-bid meeting. The City will post any Addenda to the QuestCDN planholder distribution site. 105 Exhibit A-1 - Professional Services Agreement Page 2 of 8 Jan 2023 4. Provide information or assistance needed by Owner in the course of any negotiations with prospective contractors. 5. Consult with Owner as to the acceptability of subcontractors, suppliers, and other individuals and entities proposed by prospective contractors for those portions of the Work as to which such acceptability is required by the bidding documents. 6. Assist Owner in evaluating Bids or proposals and in assembling and awarding contracts for the Work. 7. It is assumed the City will be responsible for opening bids, preparing bid tabulation, preparing a Notice of Award, requesting and reviewing bonds and insurance documentation, preparing and distributing the Agreement packages. 8. Perform or provide the following additional Bidding or Negotiating Phase tasks or deliverables: - None. B. The Bidding or Negotiating Phase will be considered complete upon commencement of the Construction Phase or upon cessation of negotiations with prospective contractors. A1.05 Construction Phase A. Upon successful completion of the Bidding and Negotiating Phase, and upon written authorization from Owner, Engineer shall: 1. General Administration of Construction Contract: Consult with Owner and act as Owner’s representative as provided in the Construction Contract. The extent and limitations of the duties, responsibilities, and authority of Engineer as assigned in the Construction Contract shall not be modified, except as Engineer may otherwise agree in writing. All of Owner’s instructions to Contractor will be issued through Engineer, which shall have authority to act on behalf of Owner in dealings with Contractor to the extent provided in this Agreement and the Construction Contract except as otherwise provided in writing. 2. Resident Project Representative (RPR): Provide the services of an RPR at the Site to assist the Engineer and to provide more extensive observation of Contractor’s work. Duties, responsibilities, and authority of the RPR are as set forth in Attachment 2. The furnishing of such RPR’s services will not limit, extend, or modify Engineer’s responsibilities or authority except as expressly set forth in Attachment 2. 3. Pre-Construction Conference: Participate in a Pre-Construction Conference prior to commencement of Work at the Site. 4. Schedules: Receive, review, and determine the acceptability of any and all schedules that Contractor is required to submit to Engineer, including the Progress Schedule, Schedule of Submittals, and Schedule of Values. 5. Baselines and Benchmarks: As appropriate, establish baselines and benchmarks for locating the Work which in Engineer’s judgment are necessary to enable Contractor to proceed. 6. Visits to Site and Observation of Construction: In connection with observations of Contractor’s Work while it is in progress: 106 Exhibit A-1 - Professional Services Agreement Page 3 of 8 Jan 2023 a. Make visits to the Site at intervals appropriate to the various stages of construction, as Engineer deems necessary, to observe as an experienced and qualified design professional the progress of Contractor’s executed Work. Such visits and observations by Engineer, and the Resident Project Representative, if any, are not intended to be exhaustive or to extend to every aspect of Contractor’s Work in progress or to involve detailed inspections of Contractor’s Work in progress beyond the responsibilities specifically assigned to Engineer in this Agreement and the Contract Documents, but rather are to be limited to spot checking, selective sampling, and similar methods of general observation of the Work based on Engineer’s exercise of professional judgment, as assisted by the Resident Project Representative, if any. Based on information obtained during such visits and observations, Engineer will determine in general if the Work is proceeding in accordance with the Contract Documents, and Engineer shall keep Owner informed of the progress of the Work. b. The purpose of Engineer’s visits to, and representation by the Resident Project Representative, if any, at the Site, will be to enable Engineer to better carry out the duties and responsibilities assigned to and undertaken by Engineer during the Construction Phase, and, in addition, by the exercise of Engineer’s efforts as an experienced and qualified design professional, to provide for Owner a greater degree of confidence that the completed Work will conform in general to the Contract Documents and that Contractor has implemented and maintained the integrity of the design concept of the completed Project as a functioning whole as indicated in the Contract Documents. Engineer shall not, during such visits or as a result of such observations of Contractor’s Work in progress, supervise, direct, or have control over Contractor’s Work, nor shall Engineer have authority over or responsibility for the means, methods, techniques, sequences, or procedures of construction selected or used by Contractor, for security or safety at the Site, for safety precautions and programs incident to Contractor’s Work, nor for any failure of Contractor to comply with Laws and Regulations applicable to Contractor’s furnishing and performing the Work. Accordingly, Engineer neither guarantees the performance of any Contractor nor assumes responsibility for any Contractor’s failure to furnish or perform the Work in accordance with the Contract Documents. c. The scope of work assumes weekly site visits for the duration of the construction project. 7. Defective Work: Reject Work if, on the basis of Engineer’s observations, Engineer believes that such Work (a) is defective under the standards set forth in the Contract Documents, (b) will not produce a completed Project that conforms to the Contract Documents, or (c) will imperil the integrity of the design concept of the completed Project as a functioning whole as indicated by the Contract Documents. 8. Clarifications and Interpretations; Field Orders: Issue necessary clarifications and interpretations of the Contract Documents as appropriate to the orderly completion of Contractor’s work. Such clarifications and interpretations will be consistent with the intent of and reasonably inferable from the Contract Documents. Subject to any limitations in the Contract Documents, Engineer may issue field orders authorizing minor variations in the Work from the requirements of the Contract Documents. 9. Change Orders and Work Change Directives: Recommend change orders and work change directives to Owner, as appropriate, and prepare change orders and work change directives as required. 10. Shop Drawings and Samples: Review and approve or take other appropriate action in respect to Shop Drawings and Samples and other data which Contractor is required to submit, but 107 Exhibit A-1 - Professional Services Agreement Page 4 of 8 Jan 2023 only for conformance with the information given in the Contract Documents and compatibility with the design concept of the completed Project as a functioning whole as indicated by the Contract Documents. Such reviews and approvals or other action will not extend to means, methods, techniques, sequences, or procedures of construction or to safety precautions and programs incident thereto. 11. Substitutes and “or-equal”: Evaluate and determine the acceptability of substitute or “or- equal” materials and equipment proposed by Contractor, but subject to the Additional Services provisions of Paragraph A2.02 of this Exhibit A-1. 12. Inspections and Tests: Require such special inspections or tests of Contractor’s work as deemed reasonably necessary, and receive and review all certificates of inspections, tests, and approvals required by Laws and Regulations or the Contract Documents. Engineer’s review of such certificates will be for the purpose of determining that the results certified indicate compliance with the Contract Documents and will not constitute an independent evaluation that the content or procedures of such inspections, tests, or approvals comply with the requirements of the Contract Documents. Engineer shall be entitled to rely on the results of such tests. 13. Disagreements between Owner and Contractor: Render formal written decisions on all duly submitted issues relating to the acceptability of Contractor’s work or the interpretation of the requirements of the Contract Documents pertaining to the execution, performance, or progress of Contractor’s Work; review each duly submitted Claim by Owner or Contractor, and in writing either deny such Claim in whole or in part, approve such Claim, or decline to resolve such Claim if Engineer in its discretion concludes that to do so would be inappropriate. In rendering such decisions, Engineer shall be fair and not show partiality to Owner or Contractor and shall not be liable in connection with any decision rendered in good faith in such capacity. 14. Applications for Payment: Based on Engineer’s observations as an experienced and qualified design professional and on review of Applications for Payment and accompanying supporting documentation: a. Determine the amounts that Engineer recommends Contractor be paid. Such recommendations of payment will be in writing and will constitute Engineer’s representation to Owner, based on such observations and review, that, to the best of Engineer’s knowledge, information and belief, Contractor’s Work has progressed to the point indicated, the Work is generally in accordance with the Contract Documents (subject to an evaluation of the Work as a functioning whole prior to or upon Substantial Completion, to the results of any subsequent tests called for in the Contract Documents, and to any other qualifications stated in the recommendation), and the conditions precedent to Contractor’s being entitled to such payment appear to have been fulfilled in so far as it is Engineer’s responsibility to observe Contractor’s Work. In the case of unit price work, Engineer’s recommendations of payment will include final determinations of quantities and classifications of Contractor’s Work (subject to any subsequent adjustments allowed by the Contract Documents). b. By recommending any payment, Engineer shall not thereby be deemed to have represented that observations made by Engineer to check the quality or quantity of Contractor’s Work as it is performed and furnished have been exhaustive, extended to every aspect of Contractor’s Work in progress, or involved detailed inspections of the Work beyond the responsibilities specifically assigned to Engineer in this Agreement and the Contract Documents. Neither Engineer’s review of Contractor’s Work for the purposes of recommending payments nor Engineer’s recommendation of any payment 108 Exhibit A-1 - Professional Services Agreement Page 5 of 8 Jan 2023 including final payment will impose on Engineer responsibility to supervise, direct, or control Contractor’s Work in progress or for the means, methods, techniques, sequences, or procedures of construction or safety precautions or programs incident thereto, or Contractor’s compliance with Laws and Regulations applicable to Contractor’s furnishing and performing the Work. It will also not impose responsibility on Engineer to make any examination to ascertain how or for what purposes Contractor has used the moneys paid on account of the Contract Price, or to determine that title to any portion of the Work in progress, materials, or equipment has passed to Owner free and clear of any liens, claims, security interests, or encumbrances, or that there may not be other matters at issue between Owner and Contractor that might affect the amount that should be paid. 15. Contractor’s Completion Documents: Receive, review, and transmit to Owner maintenance and operating instructions (if any), schedules, guarantees, bonds, certificates or other evidence of insurance required by the close out requirements of the Contract Documents, and any certificates of inspection, tests and approvals, Shop Drawings, Samples and other data which are to be assembled by Contractor in accordance with the Contract Documents to obtain final payment. 16. Substantial Completion: Promptly after notice from Contractor that Contractor considers the entire Work ready for its intended use, in company with Owner and Contractor, visit the Project to determine if the Work is substantially complete. If after considering any objections of Owner, Engineer considers the Work substantially complete, Engineer shall deliver a certificate of Substantial Completion to Owner and Contractor. 17. Additional Tasks: Perform or provide the following additional Construction Phase tasks or deliverables: - None. 18. Final Notice of Acceptability of the Work: Conduct a final visit to the Project to determine if the completed Work of Contractor is acceptable so that Engineer may recommend, in writing, final payment to Contractor. B. Duration of Construction Phase: The Construction Phase will commence with the execution of the first Construction Contract for the Project or any part thereof and will terminate upon written recommendation by Engineer for final payment to Contractors. If the Project involves more than one prime contract as indicated above, then Construction Phase services may be rendered at different times in respect to the separate contracts. Subject to the provisions of Part 2 below, Engineer shall be entitled to an equitable increase in compensation if Construction Phase services (including Resident Project Representative services, if any) are required after the original date for completion and readiness for final payment of Contractor as set forth herein or in the Construction Contract. 1. The Construction Phase services are based upon a construction contract time of 77 calendar days (11 weeks) to complete the project. 2. The basis of the on-site RPR effort is for full-time inspection and the assumption of 50-hours per week between on-site observation and preparation of field documentation. C. Limitation of Responsibilities: Engineer shall not be responsible for the acts or omissions of any Contractor, Subcontractor or Supplier, or other individuals or entities performing or furnishing any of the Work, for safety or security at the Site, or for safety precautions and programs incident to Contractor's Work, during the Construction Phase or otherwise. Engineer shall not be responsible for the failure of any Contractor to perform or furnish the Work in accordance with the Contract Documents. 109 Exhibit A-1 - Professional Services Agreement Page 6 of 8 Jan 2023 A1.06 Post-Construction Phase A. Upon written authorization from Owner during the Post-Construction Phase Engineer shall: 1. Together with Owner, visit the Project to observe any apparent defects in the Work, assist Owner in consultations and discussions with Contractor concerning correction of any such defects, and make recommendations as to replacement or correction of defective Work, if any. 2. Together with Owner or Owner’s representative, visit the Project within one month before the end of the correction period to ascertain whether any portion of the Work is subject to correction. 3. Prepare and deliver project record drawings in one full-size printed copy, one, full-size mylar, electronic PDF format and AutoCAD C3D format on USB drive or CD. 4. Perform or provide the following additional Post-Construction Phase tasks or deliverables: - None. B. The Post-Construction Phase services may commence during the Construction Phase and, if not otherwise modified in this Exhibit A-1, will terminate twelve months after the commencement of the Construction Contract’s correction period. PART 2 – ADDITIONAL SERVICES – No Changes PART 3 – INSURANCE REQUIREMENTS – No Changes PART 4 - COMPENSATION A4.01 Basic Services Article I of the Agreement is amended as follows to include the following agreement of the parties: A. Owner shall pay Engineer for the corresponding Basic Services set forth in this Exhibit A-1, as follows: 1. Adjustments to the corresponding Lump Sum amount of $159,686 based on the following estimated distribution of compensation: Phase Original Contract Amendment Amt. Adjusted Amt. Pre-design, Permitting $76,294 $23,030 $99,324 Prelim. Design $46,150 $0.00 $46,150 Final Design $14,212 $0.00 $14,212 Totals = $136,656 $23,030 $159,686 2. Engineer may alter the distribution of compensation between individual phases noted herein to be consistent with services actually rendered but shall not exceed the total Lump Sum amount unless approved in writing by the Owner. 110 Exhibit A-1 - Professional Services Agreement Page 7 of 8 Jan 2023 3. The Lump Sum includes compensation for Engineer’s services and services of Engineer’s Consultants, if any. Appropriate amounts have been incorporated in the Lump Sum to account for labor, overhead, profit, and Reimbursable Expenses. 4. The portion of the Lump Sum amount billed for Engineer’s services will be based upon Engineer’s estimate of the percentage of the total services actually completed during the billing period. B. Owner shall pay Engineer for corresponding Basic Services set forth in this Exhibit A-1 on a time and materials basis, not to exceed the estimated amounts without prior authorization. 1. Estimated cost per phase, as follows: a. Bidding and Negotiating Phase $8,788.00 b. Construction Phase $52,519.00 c. Post-Construction Phase $5,878.00 d. Total (Less RPR Services) $67,185.00 2. Engineer may alter the distribution of compensation between individual phases noted herein to be consistent with services actually rendered but shall not exceed the total Lump Sum amount unless approved in writing by the Owner. C. Period of Service: The compensation amount stipulated above is conditioned on a period of service not exceeding 18 months through the Construction Phase Services. Post Construction Services shall extend a total of 24 months longer to account for warranty walkthrough and coordination activities. If such periods of service are extended, the compensation amount for Engineer's services shall be appropriately adjusted. A4.02 Resident Project Representative – Standard Hourly Rates Article I of the Agreement is supplemented to include the following agreement of the parties: A. Owner shall pay Engineer for Resident Project Representative Basic Services as follows: 1. Resident Project Representative Services: For services of Engineer’s Resident Project Representative under Paragraph A1.05A of this Exhibit A-1, an amount equal to the cumulative hours charged to the Project by each class of Engineer’s personnel times Standard Hourly Rates for each applicable billing class at the rates set forth in Attachment 1 to this Exhibit A-1 for all Resident Project Representative services performed on the Project, plus related Reimbursable Expenses and Engineer’s Consultant’s charges, if any. The total compensation under this Paragraph is estimated to be $ 71,080.00 based upon full-time RPR services on an ten-hour workday, Monday through Friday, over a 77 calendar day construction schedule. B. Compensation for Reimbursable Expenses: 1. For those Reimbursable Expenses that are not accounted for in the compensation for Basic Services under Paragraph A4.01, and are directly related to the provision of Resident Project Representative Basic Services, Owner shall pay Engineer at the rates set forth in Appendix 1 to this Exhibit A-1. 111 Exhibit A-1 - Professional Services Agreement Page 8 of 8 Jan 2023 4.03 Additional Services – Standard Hourly Rates Article 2 of the Agreement is supplemented to include the following agreement of the parties: A. Owner shall pay Engineer for Additional Services, if any, as follows: 1. For services of Engineer’s personnel engaged directly on the Project pursuant to Paragraph A2.01 of Exhibit A-1, an amount equal to that separately negotiated prior to performing the Additional Services based on the nature of the required Additional Services. 2. For services of Engineer’s personnel engaged directly on the Project pursuant to Paragraph A2.02, an amount equal to the cumulative hours charged to the Project by each class of Engineer’s personnel times Standard Hourly Rates for each applicable billing class, plus related Reimbursable Expenses and Engineer’s Consultant’s charges, if any. B. Other Provisions Concerning Payment For Additional Services: 1. Whenever Engineer is entitled to compensation for the charges of Engineer’s Consultants, those charges shall be the amounts billed by Engineer’s Consultants to Engineer times a factor of 1.10 . 2. The amounts payable to Engineer for Reimbursable Expenses, if any, will be the related internal expenses actually incurred or allocated by Engineer, plus all invoiced external Reimbursable Expenses allocable to such Additional Services, the latter multiplied by a factor of 1.00. 112 Attachment 1 to Exhibit A Professional Services Contract Page 1 of 1 This is Attachment 1, consisting of 5 pages, referred to in and part of the Exhibit A of the Agreement Amendment 01 between Owner and DOWL for Professional Services. Project No: 4528.12477.01 Unit Rate Schedule 113 Effective July 3, 2022 Until Further Notice 1 | Page MONTANA FEE SCHEDULE Personnel Billing Rates Personnel are identified on our invoices by name and/or labor category. Description Rate Description Rate Accounting Manager $170 Accounting Technician $105 Administrative Assistant $80 Administrative Manager $110 Biologist I $115 Biologist II $125 Biologist III $135 Biologist IV $145 Biologist V $190 CAD Drafter I $90 CAD Drafter II $105 CAD Drafter III $115 CAD Drafter IV $125 CAD Drafter V $135 Civil and Transportation Designer $120 Contract Administrator I $145 Contract Administrator II $170 Corporate Development Manager $215 Cultural Resources Specialist I $105 Cultural Resources Specialist II $125 Cultural Resources Specialist III $130 Cultural Resources Specialist IV $165 Cultural Resources Specialist V $180 Document Production Supervisor $135 Engineer I $115 Engineer II $125 Engineer III $140 Engineer IV $160 Engineer V $180 Engineer VI $190 Engineer VII $200 Engineer VIII $210 Engineer IX $235 Engineer X $250 Engineering Technician I $85 Engineering Technician II $100 Engineering Technician III $110 Engineering Technician IV $125 Engineering Technician V $140 Engineering Technician VI $160 Environmental Specialist I $105 Environmental Specialist II $120 Environmental Specialist III $125 Environmental Specialist IV $135 Environmental Specialist V $140 Environmental Specialist VI $175 Environmental Specialist VII $195 Environmental Specialist VIII $210 Environmental Specialist IX $230 Environmental Specialist X $250 Field Project Representative I $100 Field Project Representative II $110 Field Project Representative III $140 Field Project Representative IV $155 Geologist I $120 Geologist II $130 Geologist III $140 Geologist IV $160 Geologist V $190 GIS Coordinator $155 GIS Manager $165 GIS Specialist $110 GIS Technician $90 Graphics Designer $115 Intern I $70 Intern II $90 Laboratory Manager $110 Laboratory Supervisor $90 114 Effective July 3, 2022 Until Further Notice 2 | Page Landscape Architect I $115 Landscape Architect II $130 Landscape Architect III $145 Landscape Architect IV $160 Landscape Architect V $175 Landscape Architect VI $185 Landscape Architect VII $195 Landscape Designer $100 Landscape Planner $120 Lead Materials Technician $100 Marketing & Administrative Manager $210 Marketing Assistant $90 Marketing Coordinator $120 Materials Manager $115 Materials Technician $75 Materials Technician II $85 Planner I $105 Planner II $130 Planner III $145 Planner IV $160 Planner V $175 Planner VI $185 Planner VII $195 Planner VIII $210 Planner IX $225 Planner X $265 Planning Technician $95 Professional Land Surveyor I $105 Professional Land Surveyor II $115 Professional Land Surveyor III $125 Professional Land Surveyor IV $135 Professional Land Surveyor V $145 Professional Land Surveyor VI $150 Professional Land Surveyor VII $160 Professional Land Surveyor VIII $170 Professional Land Surveyor IX $195 Professional Land Surveyor X $205 Professional Land Surveyor XI $230 Project Administrator $120 Project Assistant I $100 Project Assistant II $115 Project Controller $150 Project Manager I $145 Project Manager II $160 Project Manager III $175 Project Manager IV $190 Project Manager V $205 Project Manager VI $220 Project Manager VII $235 Proposal Manager $125 Public Involvement Assistant $100 Public Involvement Coordinator $140 Public Involvement Planner $120 Public Involvement Program Manager $185 Real Estate Services Manager $165 Right of Way Agent I $110 Right of Way Agent II $125 Right of Way Agent III $140 Right of Way Agent IV $155 Right of Way Agent V $170 Right of Way Agent VI $200 Right of Way Assistant $100 Risk Manager $185 Senior CAD Drafter $155 Senior Civil and Transportation Designer $155 Senior Graphics Designer $150 Senior Manager I $225 Senior Manager II $245 Senior Manager III $255 Senior Manager IV $290 Senior Manager V $300 Senior Manager VI $320 Senior Materials Technician $105 Senior Project Controller $170 Senior Proposal Manager $195 Survey Technician -- Supervisor $140 Survey Technician I $75 Survey Technician II $80 Survey Technician III $85 Survey Technician IV $100 115 Effective July 3, 2022 Until Further Notice 3 | Page Survey Technician V $105 Survey Technician VI $115 Survey Technician VII $130 Survey Technician VIII $145 Survey Technician IX $155 Systems Administrator $140 Technical Coordinator $165 Survey Crews One-Person Survey Crew = $145 /hour One-Person Survey Crew GPS/ Robotics = $165 /hour Two-Person Survey Crew = $210 /hour Two-Person Survey Crew GPS/ Robotics = $220 /hour Two-Person Survey Crew (PLS + LSIT) = $245 /hour Three-Person Survey Crew = $295 /hour Travel, Mileage, & Miscellaneous Lodging = Cost per night Airfare = Cost Vehicle Usage – Passenger Cars = 1.00/mile Vehicle Usage – Trucks & SUV’s = 1.20/mile Printing/Supplies/Phone/Fax/Postage = Note 3 In-House Usage Charges = Note 4 Per Diem Unless otherwise specified contractually, per diem will be billed when travel is more than 50 miles from the office during a meal allowance period of three or more consecutive hours or involves an overnight stay. The three meal allowance periods are breakfast (midnight to 10 am), lunch (10 am – 3 pm) and dinner (3 pm to midnight). Breakfast Lunch Dinner Incidentals 1st and Last Day GSA Per Diem Rate Billings $13.00 $15.00 $26.00 $5.00 $44.25 $59.00 Bozeman $18.00 $20.00 $36.00 $5.00 $59.25 $79.00 Helena $14.00 $16.00 $29.00 $5.00 $48.00 $64.00 All other cities not listed above, please use the following link: https://www.gsa.gov/travel/plan-book/per-diem-rates Please use the following link for the meal breakdown: https://www.gsa.gov/travel/plan-book/per-diem-rates/meals-and-incidental-expenses-mie-breakdown 116 Effective July 3, 2022 Until Further Notice 4 | Page Notes 1. DOWL’s Professional Services Fee Schedule is subject to adjustment each year or at the end of a contract period, whichever is appropriate. Should adjustments be anticipated or required, such adjustments will not affect existing contracts without prior agreement between Client and DOWL. 2. Straight-time rates are given. Multiply by 1.5 for overtime rates. Overtime rates will be applied at the rate prescribed by applicable state law. 3. Direct reimbursable expenses such as travel, freight, subcontractors, and request beyond those requests considered reasonable by the Project Manager for phone/fax/postage, office supplies, reproduction and photography, and laboratory analysis will be billed at cost plus the negotiated markup. 4. In-house equipment usage charges or specialized software/equipment that are not separately stated on the fee schedule will be negotiated at rates deemed fair and reasonable. 5. Late charges will be assessed on the unpaid balance of all accounts not paid within 30 days of the billing date, at a rate of 1.0 percent per month (12% per year). 117 Bozeman 2022 CIPP Projects; Attachment 2 to Exhibit A-1 Professional Services Contract Page 1 of 5 This is Attachment 2, consisting of 5 pages, referred to in and part of the Exhibit A-1 of the Agreement Amendment 01 between Owner and DOWL for Professional Services. Project No:4528.12477.01 Duties, Responsibilities, and Limitations of Authority of Resident Project Representative Article A1.05.A.2 of Exhibit A-1 to the Agreement is supplemented to include the following agreement of the parties: 1.01 Resident Project Representative A. Engineer shall furnish a Resident Project Representative (“RPR”) to assist Engineer in observing progress and quality of the Work. The RPR may provide full time representation or may provide representation to a lesser degree. B. Through RPR's observations of Contractor’s work in progress and field checks of materials and equipment, Engineer shall endeavor to provide further protection for Owner against defects and deficiencies in the Work. However, Engineer shall not, during such RPR field checks or as a result of such RPR observations of Contractor’s work in progress, supervise, direct, or have control over Contractor’s Work, nor shall Engineer (including the RPR) have authority over or responsibility for the means, methods, techniques, sequences, or procedures of construction selected or used by any contractor, for security or safety at the Site, for safety precautions and programs incident to any contractor’s work in progress, or for any failure of a contractor to comply with Laws and Regulations applicable to such contractor’s performing and furnishing of its work. The Engineer (including RPR) neither guarantees the performances of any contractor nor assumes responsibility for Contractor’s failure to furnish and perform the Work in accordance with the Contract Documents. In addition, the specific terms set forth in Paragraph A1.05 of Exhibit A of the Agreement are applicable. C. The duties and responsibilities of the RPR are as follows: 2.General: RPR is Engineer’s representative at the Site, will act as directed by and under the supervision of Engineer, and will confer with Engineer regarding RPR’s actions. RPR’s dealings in matters pertaining to the Contractor’s work in progress shall in general be with Engineer and Contractor. RPR’s dealings with Subcontractors shall only be through or with the full knowledge and approval of Contractor. RPR shall generally communicate with Owner only with the knowledge of and under the direction of Engineer. 118 Bozeman 2022 CIPP Projects; Attachment 2 to Exhibit A-1 Professional Services Contract Page 2 of 5 3.Schedules: Review the progress schedule, schedule of Shop Drawing and Sample submittals, and schedule of values prepared by Contractor and consult with Engineer concerning acceptability. 4.Conferences and Meetings: Attend meetings with Contractor, such as preconstruction conferences, progress meetings, job conferences and other project-related meetings, and prepare and circulate copies of minutes thereof. 5.Liaison: a. Serve as Engineer’s liaison with Contractor. Working principally through Contractor’s authorized representative or designee, assist in providing information regarding the intent of the Contract Documents. b. Assist Engineer in serving as Owner’s liaison with Contractor when Contractor’s operations affect Owner’s on-Site operations. c. Assist in obtaining from Owner additional details or information, when required for proper execution of the Work. 6.Interpretation of Contract Documents: Report to Engineer when clarifications and interpretations of the Contract Documents are needed and transmit to Contractor clarifications and interpretations as issued by Engineer. 7.Shop Drawings and Samples: a. Record date of receipt of Samples and approved Shop Drawings. b. Receive Samples which are furnished at the Site by Contractor, and notify Engineer of availability of Samples for examination. c. Advise Engineer and Contractor of the commencement of any portion of the Work requiring a Shop Drawing or Sample submittal for which RPR believes that the submittal has not been approved by Engineer. 8. Modifications: Consider and evaluate Contractor’s suggestions for modifications in Drawings or Specifications and report such suggestions, together with RPR’s recommendations, to Engineer. Transmit to Contractor in writing decisions as issued by Engineer. 9.Review of Work and Rejection of Defective Work: a. Conduct on-Site observations of Contractor’s work in progress to assist Engineer in determining if the Work is in general proceeding in accordance with the Contract Documents. 119 Bozeman 2022 CIPP Projects; Attachment 2 to Exhibit A-1 Professional Services Contract Page 3 of 5 b. Report to Engineer whenever RPR believes that any part of Contractor’s work in progress will not produce a completed Project that conforms generally to the Contract Documents or will imperil the integrity of the design concept of the completed Project as a functioning whole as indicated in the Contract Documents, or has been damaged, or does not meet the requirements of any inspection, test or approval required to be made; and advise Engineer of that part of work in progress that RPR believes should be corrected or rejected or should be uncovered for observation, or requires special testing, inspection, or approval. 10.Inspections, Tests, and System Start-ups: a. Consult with Engineer in advance of scheduled inspections, tests, and systems start-ups. b. Verify that tests, equipment, and systems start-ups and operating and maintenance training are conducted in the presence of appropriate Owner’s personnel, and that Contractor maintains adequate records thereof. c. Observe, record, and report to Engineer appropriate details relative to the test procedures and systems start-ups. d. Accompany visiting inspectors representing public or other agencies having jurisdiction over the Project, record the results of these inspections, and report to Engineer. 11.Records: a. Maintain at the Site orderly files for correspondence, reports of job conferences, reproductions of original Contract Documents including all change orders, field orders, work change directives, addenda, additional Drawings issued subsequent to the execution of the Construction Contract, Engineer’s clarifications and interpretations of the Contract Documents, progress reports, Shop Drawing and Sample submittals received from and delivered to Contractor, and other Project-related documents. b. Prepare a daily report or keep a diary or log book, recording Contractor’s hours on the Site, weather conditions, data relative to questions of change orders, field orders, work change directives, or changed conditions, Site visitors, daily activities, decisions, observations in general, and specific observations in more detail as in the case of observing test procedures; and send copies to Engineer. c. Record names, addresses, fax numbers, e-mail addresses, web site locations, and telephone numbers of all Contractors, Subcontractors, and major Suppliers of materials and equipment. 120 Bozeman 2022 CIPP Projects; Attachment 2 to Exhibit A-1 Professional Services Contract Page 4 of 5 d. Maintain records for use in preparing Project documentation. e. Upon completion of the Work, furnish original set of all RPR Project documentation to Engineer. 12.Reports: a. Furnish to Engineer periodic reports as required of progress of the Work and of Contractor’s compliance with the progress schedule and schedule of Shop Drawing and Sample submittals. b. Draft and recommend to Engineer proposed change orders, work change directives, and field orders. Obtain backup material from Contractor. c. Furnish to Engineer and Owner copies of all inspection, test, and system start-up reports. d. Immediately notify Engineer of the occurrence of any Site accidents, emergencies, acts of God endangering the Work, damage to property by fire or other causes, or the discovery of any Constituent of Concern. 13.Payment Requests: Review applications for payment with Contractor for compliance with the established procedure for their submission and forward with recommendations to Engineer, noting particularly the relationship of the payment requested to the schedule of values, Work completed, and materials and equipment delivered at the Site but not incorporated in the Work. 14.Certificates, Operation and Maintenance Manuals: During the course of the Work, verify that materials and equipment certificates, operation and maintenance manuals and other data required by the Contract Documents to be assembled and furnished by Contractor are applicable to the items actually installed and in accordance with the Contract Documents, and have these documents delivered to Engineer for review and forwarding to Owner prior to payment for that part of the Work. 15.Completion: a. Participate in visits to the Project to determine Substantial Completion, assist in the determination of Substantial Completion and the preparation of lists of items to be completed or corrected. b. Participate in a final visit to the Project in the company of Engineer, Owner, and Contractor, and prepare a final list of items to be completed and deficiencies to be remedied. c. Observe whether all items on the final list have been completed or corrected and make recommendations to Engineer concerning acceptance. 121 Bozeman 2022 CIPP Projects; Attachment 2 to Exhibit A-1 Professional Services Contract Page 5 of 5 D. Resident Project Representative shall not: 1. Authorize any deviation from the Contract Documents or substitution of materials or equipment (including “or-equal” items). 2. Exceed limitations of Engineer’s authority as set forth in this Agreement. 3. Undertake any of the responsibilities of Contractor, Subcontractors or Suppliers. 4. Advise on, issue directions relative to, or assume control over any aspect of the means, methods, techniques, sequences or procedures of Contractor’s work. 5. Advise on, issue directions regarding, or assume control over security or safety practices, precautions, and programs in connection with the activities or operations of Owner or Contractor. 6. Participate in specialized field or laboratory tests or inspections conducted off-site by others except as specifically authorized by Engineer. 7. Accept shop drawing or sample submittals from anyone other than Contractor. 8. Authorize Owner to occupy the Project in whole or in part. 122 Prepared By: K. Johnson Reviewed By: Summary P. Yakawich 1 - -$ -$ -$ -$ 2 - -$ -$ -$ -$ 3 MRL Additional Permitting Procedures 78 12,030.00$ -$ 11,000.00$ 23,030.00$ 4 - -$ -$ -$ -$ 20 - -$ -$ -$ -$ 78 12,030.00$ -$ 11,000.00$ 23,030.00$ 1 Quality Control - -$ -$ -$ -$ 2 - -$ -$ -$ -$ 310 PM; QC 4 836.00$ -$ -$ 836.00$ 320 Invitation to Bid; Quest CDN Set UP 4 720.00$ -$ -$ 720.00$ 330 Prebid Conference 8 1,460.00$ 12.00$ -$ 1,472.00$ 340 Bidding Questions, Addenda 24 4,320.00$ -$ -$ 4,320.00$ 350 Bid Opening, Bid Review - -$ -$ -$ -$ 360 Recommendation for Award 4 720.00$ -$ -$ 720.00$ 370 Bonds, Insurance Review, contract assembly/execution 4 720.00$ -$ -$ 720.00$ 380 - -$ -$ -$ -$ 20 - -$ -$ -$ -$ 48 8,776.00$ 12.00$ -$ 8,788.00$ 1 - -$ -$ -$ -$ 2 - -$ -$ -$ -$ 410 PM; QC 29 5,491.00$ -$ -$ 5,491.00$ 415 General Construction Administration 54 9,820.00$ 240.00$ -$ 10,060.00$ 425 Preconstruction Meeting 14 2,320.00$ 18.00$ -$ 2,338.00$ 435 Submittal Review 56 7,880.00$ -$ -$ 7,880.00$ 445 RFI's 28 4,420.00$ -$ -$ 4,420.00$ 455 Field Order, Work Directive, Change Order 44 6,860.00$ -$ -$ 6,860.00$ 465 Bi-weekly Progress Meetings 35 5,800.00$ 72.00$ -$ 5,872.00$ 475 Monthly Progress Payments 16 2,880.00$ -$ -$ 2,880.00$ 485 Substantial Completion Walkthrough/Review 16 2,440.00$ 18.00$ -$ 2,458.00$ 495 Project Closeout Documentation 26 4,260.00$ -$ -$ 4,260.00$ - -$ -$ -$ -$ - -$ -$ -$ -$ 318 52,171.00$ 348.00$ -$ 52,519.00$ 1 Quality Control 4 760.00$ -$ -$ 760.00$ 2 - -$ -$ -$ -$ 500 Daily Field Observation - RPR (55 days; 10 hrs/day)550 68,750.00$ 1,570.00$ -$ 70,320.00$ Project Totals Direct Expenses SubtotalCostHours Subtotal Subtotal Subtotal SubconsultantsTaskPhase Name Pre- Design/Permitting Phase 300 - Bidding Phase 400 - Construction Administration Project: City of Bozeman 2022 CIPP Projects; Amend 01 Client: City of Bozeman Project or Contract #: 4528.12477.01 12/24/2022 Labor Subtotal T&M Lump Sum Other ______________________ T&M Lump Sum Other _________________________ T&M Lump Sum Other ________________________ \\dowl.com\j\Projects\28\12477-01\10PM\Contract\Amend1_Bidding_CA\Boz_CIPP_CA_DOWL Fee Proposal.xlsm Summary123 Prepared By: K. Johnson Reviewed By: Summary P. Yakawich Project Totals Direct Expenses SubtotalCostHours SubconsultantsTaskPhase Name Project: City of Bozeman 2022 CIPP Projects; Amend 01 Client: City of Bozeman Project or Contract #: 4528.12477.01 12/24/2022 Labor Subtotal 4 - -$ -$ -$ -$ 5 - -$ -$ -$ -$ 20 - -$ -$ -$ -$ 554 69,510.00$ 1,570.00$ -$ 71,080.00$ 1 --$ -$ -$ -$ 2 --$ -$ -$ -$ 600 --$ 18.00$ -$ 18.00$ 605 Warranty Review and Coordination 16 2,080.00$ -$ -$ 2,080.00$ 610 Record Drawings 24 3,780.00$ -$ -$ 3,780.00$ 615 --$ -$ -$ -$ 685 --$ -$ -$ -$ 40 5,860.00$ 18.00$ -$ 5,878.00$ 1038 148,347.00$ 1,948.00$ 11,000.00$ 161,295.00$ TOTAL Phase 5 Inspection Subtotal Phase 6 -Post Construction Subtotal T&M Lump Sum Other ________________________ T&M Lump Sum Other ________________________ \\dowl.com\j\Projects\28\12477-01\10PM\Contract\Amend1_Bidding_CA\Boz_CIPP_CA_DOWL Fee Proposal.xlsm Summary124 Labor KRJ PY GC JP ABC ABC ABC $ 190/hour $ 180/hour $ 115/hour $ 125/hour $ 1/hour $ 110/hour $ 1/hour 1 ---$ 2 ---$ 3 MRL Additional Permitting Procedures 40 32 6 78 12,030.00$ 4 ---$ 20 ---$ 40 - 32 6 - - - 78 12,030.00$ 1 Quality Control --$ 2 ---$ 310 PM; QC 4 4 836.00$ 320 Invitation to Bid; Quest CDN Set UP 4 4 720.00$ 330 Prebid Conference 2 6 8 1,460.00$ 340 Bidding Questions, Addenda 24 24 4,320.00$ 350 Bid Opening, Bid Review - --$ 360 Recommendation for Award 4 4 720.00$ 370 Bonds, Insurance Review, contract assembly/execution 4 4 720.00$ 380 ---$ 11 ---$ 20 ---$ 6 42 - - - - - 48 8,776.00$ 1 ---$ 2 ---$ 410 PM; QC 29 29 5,491.00$ 415 General Construction Administration 10 44 54 9,820.00$ 425 Preconstruction Meeting 2 8 4 14 2,320.00$ 435 Submittal Review 16 40 56 7,880.00$ 445 RFI's 4 12 12 28 4,420.00$ 455 Field Order, Work Directive, Change Order 4 20 20 44 6,860.00$ 465 Bi-weekly Progress Meetings 5 20 10 35 5,800.00$ 475 Monthly Progress Payments 16 16 2,880.00$ 485 Substantial Completion Walkthrough/Review 8 8 16 2,440.00$ 495 Project Closeout Documentation 2 16 8 26 4,260.00$ 0 ---$ 0 ---$ 56 160 - 102 - - - 318 52,171.00$ Prepared By: K. Johnson Reviewed By: P. Yakawich City of Bozeman 2022 CIPP Projects; Amend 01 Client: City of Bozeman Project or Contract #: 4528.12477.01 12/24/2022 Phase Name Pre- Design/Permitti ng Phase 300 - Bidding Phase 400 - Construction Administration Subtotal Engineer V Subtotal CostHours Labor SubtotalEngineer VI Subtotal Task Admin. AssistantTechnician IIIEngineer I RPR Engineer III \\dowl.com\j\Projects\28\12477-01\10PM\Contract\Amend1_Bidding_CA\Boz_CIPP_CA_DOWL Fee Proposal.xlsm Labor125 Labor KRJ PY GC JP ABC ABC ABC $ 190/hour $ 180/hour $ 115/hour $ 125/hour $ 1/hour $ 110/hour $ 1/hour Prepared By: K. Johnson Reviewed By: P. Yakawich City of Bozeman 2022 CIPP Projects; Amend 01 Client: City of Bozeman Project or Contract #: 4528.12477.01 12/24/2022 Phase Name Engineer V CostHours Labor SubtotalEngineer VI Task Admin. AssistantTechnician IIIEngineer I RPR Engineer III 1 Quality Control 4 4 760.00$ 2 ---$ 500 Daily Field Observation - RPR (55 days; 10 hrs/day)550 550 68,750.00$ 4 ---$ 8 ---$ 9 ---$ 4 - - 550 - - - 554 69,510.00$ 1 ---$ 2 ---$ 600 ---$ 605 Warranty Review and Coordination 4 12 16 2,080.00$ 610 Record Drawings 12 12 24 3,780.00$ 615 ---$ 620 ---$ 685 ---$ 16 - - 12 - 12 - 40 5,860.00$ 122 202 32 670 - 12 - 1038 23,237.00$ 36,360.00$ 3,680.00$ 83,750.00$ -$ 1,320.00$ -$ 148,347.00$ Phase 6 -Post Construction Subtotal Phase 5 Inspection Subtotal LABOR COST TOTAL LABOR HOUR TOTAL \\dowl.com\j\Projects\28\12477-01\10PM\Contract\Amend1_Bidding_CA\Boz_CIPP_CA_DOWL Fee Proposal.xlsm Labor126 City of Bozeman 2022 CIPP Projects; Amend 01 Client: City of Bozeman Project or Contract #: 4528.12477.01 Expenses 12/24/2022 Total Total Autos Total $1/day Cost $35/night Cost $ 1.20 Cost *Other Expenses Description 1 --$ -$ -$ -$ -$ 0% -$ 2 --$ -$ -$ -$ -$ 0% -$ 3 MRL Additional Permitting Procedures -$ -$ -$ -$ -$ 0% -$ 4 --$ -$ -$ -$ -$ 0% -$ 20 --$ -$ -$ -$ -$ 0% -$ - -$ - -$ - -$ -$ -$ -$ -$ -$ 1 Quality Control -$ -$ -$ -$ -$ 0% -$ 2 --$ -$ -$ -$ -$ 0% -$ 310 PM; QC -$ -$ -$ -$ -$ 0% -$ 320 Invitation to Bid; Quest CDN Set UP -$ -$ -$ -$ -$ 0% -$ 330 Prebid Conference -$ -$ 10 12.00$ 12.00$ 12.00$ 0% 12.00$ 340 Bidding Questions, Addenda -$ -$ -$ -$ -$ 0% -$ 350 Bid Opening, Bid Review -$ -$ -$ -$ -$ 0% -$ 360 Recommendation for Award -$ -$ -$ -$ -$ 0% -$ 370 Bonds, Insurance Review, contract assembly/execution -$ -$ -$ -$ -$ 0% -$ 380 --$ -$ -$ -$ -$ 0% -$ 11 --$ -$ -$ -$ -$ 0% -$ 12 --$ -$ -$ -$ -$ 0% -$ 20 --$ -$ -$ -$ -$ 0% -$ - -$ - -$ 10 12.00$ 12.00$ -$ -$ 12.00$ 12.00$ 1 --$ -$ -$ -$ -$ 0% -$ 2 --$ -$ -$ -$ -$ 0% -$ 410 PM; QC -$ -$ -$ -$ -$ 0% -$ 415 General Construction Administration -$ -$ 200 240.00$ 240.00$ 240.00$ 0% 240.00$ 425 Preconstruction Meeting -$ -$ 15 18.00$ 18.00$ 18.00$ 0% 18.00$ 435 Submittal Review -$ -$ -$ -$ -$ 0% -$ 445 RFI's -$ -$ -$ -$ -$ 0% -$ 455 Field Order, Work Directive, Change Order -$ -$ -$ -$ -$ 0% -$ 465 Bi-weekly Progress Meetings -$ -$ 60 72.00$ 72.00$ 72.00$ 0% 72.00$ 475 Monthly Progress Payments -$ -$ -$ -$ -$ 0% -$ 485 Substantial Completion Walkthrough/Review -$ -$ 15 18.00$ 18.00$ 18.00$ 0% 18.00$ 495 Project Closeout Documentation -$ -$ -$ -$ -$ 0% -$ 0 --$ -$ -$ -$ -$ 0% -$ 0 --$ -$ -$ -$ -$ 0% -$ - -$ - -$ 290 348.00$ 348.00$ -$ -$ 348.00$ 348.00$ 1 Quality Control -$ -$ -$ -$ -$ 0% -$ 2 --$ -$ -$ -$ -$ 0% -$ 500 Daily Field Observation - RPR (55 days; 10 hrs/day)-$ -$ 1100 1,320.00$ 1,320.00$ 250.00$ 1,570.00$ 0% 1,570.00$ 4 --$ -$ -$ -$ -$ 0% -$ 5 --$ -$ -$ -$ -$ 0% -$ 6 --$ -$ -$ -$ -$ 0% -$ 7 --$ -$ -$ -$ -$ 0% -$ 20 --$ -$ -$ -$ -$ 0% -$ - -$ - -$ 1100 1,320.00$ 1,320.00$ 250.00$ -$ 1,570.00$ 1,570.00$ 1 --$ -$ -$ -$ -$ 0% -$ 2 --$ -$ -$ -$ -$ 0% -$ Prepared By: Total w/ Mark Up% Mark Up P. Yakawich Reviewed By: K. Johnson Phase Name Pre- Design/Permitti ng Phase 300 - Bidding Phase 400 - Construction Administration Phase 5 Inspection Subtotal Subtotal Subtotal Task Subtotal Per Diem (State) Travel, Mileage, & Misc. Subtotal Lodging (State) Direct Expenses SubtotalCost Vehicle Miles Supplies *Other Expenses Travel, Mileage, & Misc. Subtotal \\dowl.com\j\Projects\28\12477-01\10PM\Contract\Amend1_Bidding_CA\Boz_CIPP_CA_DOWL Fee Proposal.xlsm Expenses127 City of Bozeman 2022 CIPP Projects; Amend 01 Client: City of Bozeman Project or Contract #: 4528.12477.01 Expenses 12/24/2022 Total Total Autos Total $1/day Cost $35/night Cost $ 1.20 Cost *Other Expenses Description Prepared By: Total w/ Mark Up% Mark Up P. Yakawich Reviewed By: K. Johnson Phase Name Task Per Diem (State) Travel, Mileage, & Misc. Subtotal Lodging (State) Direct Expenses SubtotalCost Vehicle Miles Supplies *Other Expenses Travel, Mileage, & Misc. Subtotal 600 --$ -$ 15 18.00$ 18.00$ 18.00$ 0% 18.00$ 605 Warranty Review and Coordination -$ -$ -$ -$ -$ 0% -$ 610 Record Drawings -$ -$ -$ -$ -$ 0% -$ 685 --$ -$ -$ -$ -$ 0% -$ - -$ - -$ 15 18.00$ 18.00$ -$ -$ 18.00$ 18.00$ - -$ - -$ - -$ -$ -$ -$ -$ -$ - -$ - -$ 1415 1,698.00$ 1,698.00$ 250.00$ -$ 1,948.00$ 1,948.00$ Phase 6 -Post Construction Subtotal EXPENSES TOTAL Phase 10 Subtotal \\dowl.com\j\Projects\28\12477-01\10PM\Contract\Amend1_Bidding_CA\Boz_CIPP_CA_DOWL Fee Proposal.xlsm Expenses128 Project:City of Bozeman 2022 CIPP Projects; Amend 01 Prepared By: Client:City of Bozeman K. Johnson Project or Contract #:4528.12477.01 Reviewed By:Subconsultants 12/24/2022 P. Yakawich *See attachment for subconsultants full cost breakout 1 - -$ -$ -$ -$ -$ 2 --$ -$ -$ -$ -$ 3 MRL Additional Permitting Procedures 10,000.00$ 10% 11,000.00$ -$ -$ -$ 11,000.00$ 4 --$ -$ -$ -$ -$ 5 --$ -$ -$ -$ -$ 6 --$ -$ -$ -$ -$ 20 --$ -$ -$ -$ -$ 10,000.00$ 11,000.00$ -$ -$ -$ -$ -$ -$ 11,000.00$ 1 Quality Control -$ -$ -$ -$ -$ 2 --$ -$ -$ -$ -$ 3 PM; QC -$ -$ -$ -$ -$ 4 Invitation to Bid; Quest CDN Set UP -$ -$ -$ -$ -$ 5 Prebid Conference -$ -$ -$ -$ -$ 6 Bidding Questions, Addenda -$ -$ -$ -$ -$ 7 Bid Opening, Bid Review -$ -$ -$ -$ -$ 8 Recommendation for Award -$ -$ -$ -$ -$ 9 Bonds, Insurance Review, contract assembly/execution -$ -$ -$ -$ -$ 10 --$ -$ -$ -$ -$ 11 --$ -$ -$ -$ -$ 12 --$ -$ -$ -$ -$ 20 --$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1 --$ -$ -$ -$ -$ 2 --$ -$ -$ -$ -$ 3 PM; QC -$ -$ -$ -$ -$ 4 General Construction Administration -$ -$ -$ -$ -$ 5 Preconstruction Meeting -$ -$ -$ -$ -$ 6 Submittal Review -$ -$ -$ -$ -$ 7 RFI's $ 4,420.00 -$ -$ -$ -$ -$ 8 Field Order, Work Directive, Change Order -$ -$ -$ -$ -$ 9 Bi-weekly Progress Meetings -$ -$ -$ -$ -$ 10 Monthly Progress Payments -$ -$ -$ -$ -$ 11 Substantial Completion Walkthrough/Review -$ -$ -$ -$ -$ 12 Project Closeout Documentation -$ -$ -$ -$ -$ 13 --$ -$ -$ -$ -$ 14 --$ -$ -$ -$ -$ 20 --$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1 Quality Control -$ -$ -$ -$ -$ 2 --$ -$ -$ -$ -$ 3 Daily Field Observation - RPR (55 days; 10 hrs/day)-$ -$ -$ -$ -$ 4 --$ -$ -$ -$ -$ 5 --$ -$ -$ -$ -$ 20 --$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1 --$ -$ -$ -$ -$ Subtotal Subtotal Subtotal Subtotal Cost* Cost*% Mark Up Total w/Markup Cost*% Mark Up Total w/Markup Rocky Mountain Contractors Subconsultant Name Subconsultant Name Subconsultant Name Subconsultants Subtotal% Mark Up % Mark Up Total w/Markup Total w/Markup Cost* Phase 5 Inspection TaskPhase Name Pre- Design/Permitti ng Phase 300 - Bidding Phase 400 - Construction Administration \\dowl.com\j\Projects\28\12477-01\10PM\Contract\Amend1_Bidding_CA\Boz_CIPP_CA_DOWL Fee Proposal.xlsm Subconsultants129 Project:City of Bozeman 2022 CIPP Projects; Amend 01 Prepared By: Client:City of Bozeman K. Johnson Project or Contract #:4528.12477.01 Reviewed By:Subconsultants 12/24/2022 P. Yakawich *See attachment for subconsultants full cost breakout Cost* Cost*% Mark Up Total w/Markup Cost*% Mark Up Total w/Markup Rocky Mountain Contractors Subconsultant Name Subconsultant Name Subconsultant Name Subconsultants Subtotal% Mark Up % Mark Up Total w/Markup Total w/Markup Cost* TaskPhase Name 2 --$ -$ -$ -$ -$ 3 --$ -$ -$ -$ -$ 4 Warranty Review and Coordination -$ -$ -$ -$ -$ 5 Record Drawings -$ -$ -$ -$ -$ 20 --$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 10,000.00$ 11,000.00$ -$ -$ -$ -$ -$ -$ 11,000.00$ SUBCONSULTANTS TOTAL Subtotal Phase 6 -Post Construction Phase 10 Subtotal \\dowl.com\j\Projects\28\12477-01\10PM\Contract\Amend1_Bidding_CA\Boz_CIPP_CA_DOWL Fee Proposal.xlsm Subconsultants130 Memorandum REPORT TO:City Commission FROM:Jon Henderson, Strategic Services Director SUBJECT:Ratify the City Manager's Signature on Early Work Amendment 1 for the Fire Station 2 Relocation Project MEETING DATE:February 7, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Ratify the City Manager's Signature on Early Work Amendment No.1 for the Fire Station 2 Relocation Project. STRATEGIC PLAN:3.1 Public Safety: Support high quality public safety programs, emergency preparedness, facilities, and leadership. BACKGROUND:On February 8, 2022 the City Commission approved a contract for General Contractor / Construction Manager Services for the relocation of Fire Station 2. Pursuant to Subparagraphs 3.7.1-3.7.4 and 4.1 of the contract, this Early Work Amendment authorizes the purchase of main electrical gear, engine generator, automatic transfer switch, and docking station to avoid delays in construction related to supply chain issues resulting in a seventy week lead time. Construction is scheduled to begin in April of 2023, with an estimated completion date of June of 2024. UNRESOLVED ISSUES:None. ALTERNATIVES:As directed by the City Commission. FISCAL EFFECTS:This project is funded through bonds approved by public vote on November 2, 2021. Attachments: Bozeman Fire Station No. 2 - Early Work Amendment No. 1.pdf Report compiled on: January 5, 2023 131 EARLY WORK AMENDMENT (EWA) NO. 1 TO AGREEMENT BETWEEN OWNER AND CONSTRUCTION MANAGER Pursuant to Subparagraphs 3.7.1-3.7.4 and 4.1 of the Preconstruction Services Conditions Agreement between Owner and Construction Manager this amendment dated the 17th day of January 2023, between City of Bozeman (“Owner”) and Martel Construction, Inc. (“Contractor”) for the Fire Station No. 2 Relocation Project, hereby establishes a Guaranteed Maximum Price and Contract Time for the portion of the Project as set forth below: GUARANTEED MAXIMUM PRICE FOR MAIN ELECTRICAL GEAR & ENGINE GENERATOR & AUTOMATIC TRANSFER SWITCH & DOCKING STATION The Construction Manager’s Guaranteed Maximum Price (GMP) for the Work, including the Cost of the Work and the Construction Manager’s Fee is as follows: Electrical $267,495.00 Subtotal $267,495.00 General Liability Insurance $2,693.00 Gross Receipts Tax $3,026.00 Bond $2,270.00 Construction Fee $13,774.00 Construction Contingency $13,375.00 TOTAL GUARANTEED MAXIMUM PRICE $302,663.00 CONTRACT TIME The date of Substantial Completion for the Work outlined above is: June 3rd, 2024 OWNER: CONTRACTOR: City of Bozeman Martel Construction, Inc. 121 N. Rouse Ave. 1203 S. Church Ave. Bozeman, MT 59715 Bozeman, MT 59715 By:__________________________ By: __________________________ Jeff Mihelich, City Manager Jason Martel, Executive Vice President DocuSign Envelope ID: 64021E74-4A8D-426C-9D4A-1D14FE35F3EB 132 Memorandum REPORT TO:City Commission FROM:Kellen Gamradt, Engineer Nick Ross, Director of Transportation and Engineering SUBJECT:Resolution 5464 A Resolution of Intent of the Bozeman City Commission to Create Special Improvement District (SID) 778 for the Purpose of Undertaking Certain Local Improvements to Bogert Place from South Church Avenue to East Story Street and Financing the Costs Thereof MEETING DATE:February 7, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Adopt Resolution 5464 declaring it to be the City's intention to create Special Improvement District (SID) No. 778 STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a mechanism to encourage economic development. BACKGROUND:In FY 2012, the City Commission authorized that additional street maintenance funds be set aside for street reconstruction projects. This street reconstruction money is in addition to the annual street maintenance projects the City funds with its gas tax allocation. It is used to finance a portion of the complete reconstruction of streets which have deteriorated beyond the point where they can be maintained. Current practice per Commission direction is to supplement these street reconstruction funds with a contribution from the residents adjacent to the street who are its primary users and therefore specially benefitted by the street improvements through the creation of an SID. The street proposed for reconstruction this year is Bogert Place between South Church Avenue and East Story Street. Proposed Resolution 5464, a Resolution of Intent to Create SID 778, is the first step in the process of creating an SID as allowed by the Montana Code Annotated (MCA), Chapter 7-12, Part 41. The purpose of this Resolution is to inform the public of the City's intention to raise funds from adjacent property owners to pay for a portion of the authorized improvements. The Resolution must do the following: 1) designate the number of the district; 2) describe the boundaries thereof; 3) state the general character of the improvements and the approximate estimated cost; and 4) state the method by which the costs of the improvements will be assessed against property owners in the district. 133 The number of this SID will be 778. The boundaries of the district include all of the parcels of property directly fronting on Bogert Place between South Church Avenue and East Story Street as illustrated in Exhibit A. The general character of the improvements consist of roadway improvements including repaving of the road, replacement of curbing, installation of storm drainage improvements, and pedestrian ramps. There are four methods of assessment which are allowed by the MCA - the area method which is based on the area of the lot, the frontage method which is based on the lots width fronting the street, the assessed valuation method which uses the assessed valuation of the parcel and the equal shares method. As on the previous seven Street Reconstruction projects: South 8th, East Story Street, North Wallace Avenue, East Olive Street, South Tracy Avenue, North Tracy Avenue, and South 6th Avenue, staff recommends using the lot frontage method of assessment for this SID. In February 2014 the Commission adopted Resolution 4507 which establishes policies regarding the local share for street reconstruction. The resolution contains the following table which establishes the funding splits to be used based on traffic counts: Funding Classification Average Daily Traffic (vehicles per day) Funding Split (Reconstruction Fund/SID) Local Less than 800 75% / 25% Minor Collector 800 - 1500 50% / 50% Major Collector 1501 - 4500 15% / 85% Arterial More than 4500 100% Traffic counts on Bogert Place are approximately 46 vehicles per day, resulting in a split of 75% street reconstruction funds and 25% local share or approximately $293 per foot of street frontage for property owners within the district. However, this calculated assessment is higher than allowed by City Commission Resolution 5174 adopted in January 2020. Resolution 5174 states that “…there shall be a maximum of $138 per-lineal-foot assessed to an individual property and paid for through creation of a Special improvement district.” Therefore, the assessment for this district shall be $138 per-lineal-foot resulting in a total assessment of $167,064 and a total Street Reconstruction Fund cost of $331,936 (33%/67% split). Exhibit B 134 includes the cost by property in the SID. Engineering Division staff hosted two neighborhood meetings to present information about the proposed project to the local residents. At the meetings staff discussed the project design elements, proposed schedule, estimated costs and proposed method of assessment and answered questions. The proposed schedule for the SID and construction is as follows: Resolution of Intent to Create February 7, 2023 Mail Notice of Public Hearing February 9, 2023 Publish Notice of Public Hearing February 12 and 19, 2023 (protest period begins upon first publication of the notice of passage of the resolution of intent) End of Protest Period March 1, 2023 Public Hearing on Resolution of Creation March 7, 2023 Advertise for Construction Bids March 7 – March 19, 2023 Open Bids March 29, 2023 Award Contract April 11, 2023 The protest period begins upon first publication of the notice of the public hearing, in this case February 12, 2023. The 15 day protest period begins on February 13, 2023 and ends on March 1, 2023 (two additional days are added to the protest period for the intervening holiday). PROPOSED FINDINGS: Should the Commission move to adopt Resolution 5464, we suggest incorporating the following findings: 1. The properties fronting on Bogert Place were created through the Parkside Addition to the City of Bozeman, filed with the Gallatin 135 County Clerk and Recorder in January of 1946 and as shown in Plat E- 2. 2. Residential homes were constructed on these lots between 1950 and 1957. 3. Bogert Place and associated infrastructure improvements, were constructed in 1959 as part of a pavement improvements project for the City of Bozeman, Special Improvement District #406. 4. Over the following years, the city continued to develop and expand and in 1962, a trunk sewer main was constructed through Bogert Place and Bogert Park to the north. 5. By the 1990’s Bogert Place had fallen into a failed condition as a result of the age of the street. 6. In 2021, the City hired a consultant to perform a citywide inventory of our street pavement conditions. The results of the survey indicated that Bogert Place was among the streets in the worst condition in the City. 7. City staff are currently designing a reconstruction project on Bogert Place to bring the street to a City Standard Local Street, install new water, sewer and storm drainage utilities. 8. The planned Improvements will preserve public safety by providing through lanes and drive approaches for those who reside along this street or use the street to access their residences and Bogert Park. Safety will be improved, especially for those properties within the District, by reconstructing roadway that has deteriorated beyond the point where it can be maintained and by installing pedestrian ramps, traffic control signage and other safety measures. The planned storm water collection improvements will benefit properties within the district by improving drainage and reducing the risk of flooding caused by major storm events. UNRESOLVED ISSUES:SID creation is subject to protest by the property owners to be assessed. A Protest/Support Form is included in the Commission Packet. The sufficiency of protest is outlined in 7-12-4113, MCA. Simply stated, if protest is made by property owners to be assessed for more than 50% of the costs of the proposed work, further proceedings are barred for six months. Should this occur, there are a number of other street reconstruction projects in the adopted Capital Improvement Plan to consider. However, at some point in the future, the community at large will not be able to absorb the displaced traffic that will result from the failure to reconstruct local streets that are a critical component of the City’s street network. At that time, the Commission will be asked to provide direction on how to finance local street improvements in the face of local opposition to SIDs. ALTERNATIVES:As Suggested by FISCAL EFFECTS:Current Budget: The Adopted 2024-2028 Capital Improvement Plan includes $402,000 for the reconstruction of Bogert Place. The current engineering project cost estimate is $499,000. Expenditures will be made in fiscal year 136 2024 and updated costs will be included in the FY24 City Manager’s Recommended Budget. Project Costs: The total estimated cost of the street and storm drain improvements are $499,000. This estimate is broken out in Exhibit C by item. The City can commit, per its policy, $331,936 from the Street Reconstruction fund to reduce the costs to the SID, leaving $167,064 to be funded by the SID. In addition, the SID will be responsible for an estimated $1,000 in incidental costs related to the creation of the SID for a total of $168,064. If the Commission adopts Resolution 5464 based on the recommended method of assessment ( linear feet lot frontage), then for an average residential lot with 114 ft. of frontage, the total estimated assessment would be $15,732 plus interest on the loan described in the Financing section below. Financing. Costs and expenses of construction of the Improvements will be paid for in part by the Street Reconstruction Fund and in part by the District proposed in this Resolution as described in the background section. Costs of the Districts portion of the improvements will be financed by an interfund loan from the General Fund to the North Tracy SID. An interfund loan has a number of benefits, including a lower interest rate for the District property owners, and avoidance of the costs and time-consuming work of underwriting a bond sale. The General Fund will be paid back as property owners make their payments over time, with interest. In accordance with Resolution 4983, special assessments for the District’s share will be payable over a term not exceeding twenty (20) years, in equal semi-annual installments. Property owners have the right to prepay assessments. If SID 778 is created, a Resolution approving the interfund loan documents will be proposed to the Commission at a future meeting. Attachments: RES 5464.docx Exhibit A.pdf Exhibit B.pdf Exhibit C.pdf Exhibit D - Letter to Property Owners.doc Exhibit E - NOTICE OF PASSAGE OF RESOLUTION OF INTENT.doc PROTEST FORM Special Improvement District Creation.docx Report compiled on: January 20, 2023 137 Version April 2020 RESOLUTION 5464 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 778 FOR LOCAL IMPROVEMENTS TO BOGERT PLACE; DECLARING IT TO BE THE INTENTION OF THE CITY COMMISSION TO CREATE THE DISTRICT FOR THE PURPOSE OF UNDERTAKING CERTAIN LOCAL IMPROVEMENTS AND FINANCING THE COSTS THEREOF AND INCIDENTAL THERETO THROUGH THE ISSUANCE OF MUNICIPAL WARRANTS. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: Section 1. Proposed Improvements; Intention To Create District. The City proposes to undertake certain local improvements (the “Improvements”) to benefit certain property located in the City limits. The improvements consist of roadway improvements to Bogert Place between South Church Avenue and East Story Street, including: repaving of the road, replacement of curbing, installation of storm drainage improvements, and pedestrian ramps, as more particularly described in Section 5. The total estimated costs of the Improvements are $499,000. Pursuant to Resolution 4507 and 5174, $331,936will be paid from the City’s Street Maintenance District fund, leaving $167,064 of the costs of the Improvements to be funded through the District (hereinafter referred to as the “District's Share of the Improvements”). It is the intention of this Commission to create and establish in the City under Montana Code Annotated, Title 7, Chapter 12, Parts 41 and 42, as amended, a special improvement district (the “District”) for the purpose of financing the District's Share of the Improvements and paying costs incidental thereto, including any costs associated with issuance of warrants drawn against special assessments to be paid by benefitted properties in the District (the “Warrants”), the creation and administration of the District, and the funding of an administrative charge to the General Fund for costs associated with financing of the Improvements (collectively the "Incidental Costs"). The total estimated cost of the District's Share of the Improvements, including such Incidental Costs, to be financed is $168,064. The City Commission intends to provide the funds to pay the District’s Share of the Improvements and the Incidental Costs through an interfund loan from the General Fund to the Bogert Place SID Fund. The City Commission intends to direct that the funds so applied will be evidenced by and will purchase the Warrants issued against the SID 778 Bogert Place Fund into which special assessments paid by owners of benefitted properties in the District will be deposited. The properties in the District subject to assessment will be specially benefited by the Improvements in 138 Version April 2020 an amount not less than $168,064. Section 2. Number of District. The District, if the same shall be created and established, shall be known and designated as Special Improvement District No. 778 of the City of Bozeman, Montana. Section 3. Boundaries of District. The limits and boundaries of the District are depicted by the continuous line circumscribing the exterior boundaries of the properties shown on the map attached as Exhibit A hereto (which is hereby incorporated herein and made a part hereof) and includes all those lots and parcels on Bogert Place between South Church Avenue and East Story Street which front directly on Bogert Place, legal descriptions of which are contained in Exhibit B hereto (which is hereby incorporated herein and made a part hereof), which boundaries are designated and confirmed as the boundaries of the District. Section 4. Benefitted Property. The District and territory included within the limits and boundaries described in Section 3 and as shown on Exhibit A and Exhibit B are hereby declared to be the special improvement district and the territory that will benefit from and be benefitted by the Improvements and will be assessed for a portion of the costs of the Improvements as described herein. The property included within said limits and boundaries is hereby declared to be the property benefitted by the Improvements. Section 5. General Character of the Improvements. The Improvements to be constructed generally consist of removing the existing street pavement and curbing, installing a 35-foot-wide street section on Bogert Place with gravel base course material, asphaltic cement surfacing, City standard curbs and gutters, pedestrian ramps, traffic control signage and pavement striping, storm drains, and all related improvements on these streets. The Improvements shall include the engineering design, construction, inspection and engineering certification of asphalt cement paving, gravel base courses and subgrade preparation, storm drainage, and all necessary permits and appurtenances to complete the road installation. Each lot, parcel, or tract abutting such portion of Bogert Place, as set forth on the attached Exhibit B, will be improved with or benefitted by such Improvements. Section 6. Engineer and Estimated Cost. The City, acting through its City Engineer, shall be the engineer for the District. The Engineer has estimated the costs of the Improvements to be $499,000, as shown on Exhibit C, attached hereto (and hereby incorporated herein and made a part hereof). The City has committed $331,936 in Street Maintenance District funds, in accordance with Commission Resolution No. 4507 and 5174, to the costs of the Improvements. The District's Share of the Improvements, plus the Incidental Costs, are $168,064. The District’s Share of the costs of the Improvements to be financed by the proceeds of the Warrants are shown on Exhibit B (which is hereby incorporated herein and made a part hereof). Section 7. Assessment Methods. 7.1. Property To Be Assessed. All properties in the District will be assessed for their proportionate share of the costs of the District's Share of the Improvements plus the Incidental Costs from which they derive a benefit as determined and set forth herein. The District's Share of 139 Version April 2020 the Improvements plus the Incidental Costs shall be assessed against the property in the District benefitting from these Improvements, based on the method as authorized by Section 7-12-4163, M.C.A., as particularly applied and set forth in Section 7.2 hereof. 7.2. Lot Frontage. The District's Share of the Improvements plus the Incidental Costs will be assessed using the lot frontage method of assessment. The Engineer has determined the lineal feet of the frontage on Bogert Place of each lot, tract or parcel, based on current recorded plats and certificates of survey for each lot, tract or parcel of land, on file at the Clerk and Recorder’s office. The total lineal feet frontage of the District to be assessed, exclusive of streets, roads, and rights- of-way, is 1,210.61 feet. The total estimated cost of the District's Share of the Improvements, including Incidental Costs, to be funded through the District is $168,064 and shall be assessed against each lot, tract or parcel of land in the District for that part of the costs of the District's Share of the Improvements that the frontage of such lot, tract or parcel bears to the total frontage of all lots, tracts or parcels of land in the District, exclusive of streets, roads, and rights-of-way. The District's Share of the Improvements plus the Incidental Costs per lineal foot of frontage, exclusive of interest, shall not exceed $138. The estimated principal assessment for each lot, tract or parcel of land for the District's Share of the Improvements is shown on Exhibit C hereto. 7.4. Principal Amount Only; Interest Rate. The estimated dollar amount of each special assessment against each lot, tract, or parcel in the District is only the principal amount of such special assessment. Notwithstanding any provision herein to the contrary, pursuant to 7-12- 4189(1), MCA, all unpaid special assessments will bear interest at a rate equal to the sum of the average interest rate payable on the outstanding Warrants at the time the assessment is levied plus not less than ½ of 1% per year. 7.4. Assessment Methodology Equitable and Consistent with Benefit. This Commission hereby determines that the method of assessment described above and the assessment of costs of the District's Share of the Improvements against the properties benefitted thereby as prescribed in this Section 7 are equitable and in proportion to and not exceeding the special benefits derived from the Improvements by the lots, tracts and parcels to be assessed therefore within the District. Section 8. Payment of Assessments. The special assessments for the costs of the District's Share of the Improvements plus the Incidental Costs shall be payable over a term not exceeding (20) twenty years, each in equal semi-annual installments of principal, plus interest, or equal semi- annual payments of principal and interest, as this Commission shall prescribe in the resolution authorizing the issuance of the Warrants. Property owners have the right to prepay assessments as provided by law. The estimated total principal amounts of special assessments against properties in the District are shown on the attached Exhibit B. Such amounts are estimates only and are exclusive of interest. In the event the District is created and the Warrants are issued, and an interfund loan from the City’s General Fund is used to purchase the Warrants thereby making available funds to finance the District’s Share of the Improvements including the Incidental Costs, the special assessments levied against properties in the District will be stated as semiannual installments of principal and interest over a term of up to twenty (20) years. Section 9. Method of Financing. The City on behalf of the District will issue the Warrants payable to the General Fund in an aggregate principal amount not to exceed $168,064 in order to 140 Version April 2020 finance a portion of the costs of the Improvements and all Incidental Costs. The City Commission intends to use excess monies of the Revolving Fund transferred to the General Fund to purchase the Warrants to make funds available to finance the District’s Share of the Improvements including the Incidental Cost, such Warrants to be held by the General Fund and drawn against the SID 778 Bogert Place Fund. Principal of and interest on the Warrants will be paid from special assessments levied against the benefitted properties in the District. In determining it intends to authorize a loan from the General Fund to the SID 778 Bogert Place Fund, this Commission has taken into consideration the following factors: (a) Diversity of Property Ownership. There are 7 (seven) separate parcels of land in the District, with 9 separate owners. (b) Comparison of Special Assessments and Property Taxes and Market Value. The City has compared the estimated market value of each lot, tract, and parcel in the District after the Improvements are made to the amount of the proposed special assessments against each lot, tract, and parcel in the District. The estimated market value of each lot, tract, and parcel in the District after the Improvements are made is expected to be in excess of the proposed special assessments against each lot, tract, and parcel in the District. (c) Outstanding Special Assessments. As of the date of this resolution, the amount of special assessments against properties in the District is $0.00. (d) Delinquencies. The records of the County Assessor show that of the 7 taxable properties in the District, nine (0) properties have delinquent property taxes or annual city assessments. The total value of delinquent property taxes within the district equals $0.00 and the total delinquent city assessments equal $0.00. (e) The Public Benefit of the Improvements. The planned Improvements will preserve public safety by providing through lanes and drive approaches for those who reside along this street or use the street to access their residences and businesses. Safety will be improved, especially for those properties within the District, by reconstructing roadway that has deteriorated beyond the point where it can be maintained and by installing pedestrian ramps and traffic control signage. The planned storm water collection improvements will benefit properties within the district by improving drainage and reducing the risk of flooding caused by major storm events. Section 10. Public Hearing; Protests. At any time within fifteen (15) days (or such longer period if required by law) from and after the date of the first publication of the notice of the passage and approval of this Resolution, any owner of a lot, tract, or parcel within the District subject to assessment and taxation for the cost and expense of making the Improvements may make and file with the City Clerk until 5:00 p.m., MT, on the expiration date of said 15-day period (March 1, 2023) written protest against the proposed Improvements, or against the creation of the District. Such protest must be in writing, identify the property in the District owned by the protestor and be 141 Version April 2020 signed by all owners of the property. The written protest must be delivered to the City Clerk, who shall endorse thereon the date and hour of its receipt. For purposes of calculating protests under Section 7-12-4113, M.C.A., the sufficiency or insufficiency of protests, if any, as to the entire proposed District shall be based on the estimated total principal amount of special assessments made by valid protestors in the District as compared to the estimated total principal amount of special assessments to be levied against all properties in the District. The Commission will at its next regular meeting after the expiration of the protest period, on March 7, 2023, proceed to hear and pass upon all such protests so made and filed. Section 11. Notice of Passage of Resolution of Intention. The City Clerk is hereby authorized and directed to publish or cause to be published a copy of a notice of the passage of this resolution in the Bozeman Daily Chronicle, a newspaper of general circulation in the county in the form and manner prescribed by law, and to mail or cause to be mailed a copy of said notice to every person, firm, corporation, or the agent of such person, firm, or corporation having real property within the District listed in the owner's name upon the last completed assessment roll for state, county, and school district taxes, at the owners last-known address, on or before the same day such notice is first published. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the _____ day of ________, 20____. ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE 142 Version April 2020 I, the undersigned, being the duly qualified and acting recording officer of the City of Bozeman, Montana (the “City”) hereby certify that the attached resolution is a true copy of Resolution No. 5464, entitled: “A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 778 FOR LOCAL IMPROVEMENTS TO BOGERT PLACE; DECLARING IT TO BE THE INTENTION OF THE CITY COMMISSION TO CREATE THE DISTRICT FOR THE PURPOSE OF UNDERTAKING CERTAIN LOCAL IMPROVEMENTS AND FINANCING THE COSTS THEREOF AND INCIDENTAL THERETO THROUGH THE ISSUANCE OF MUNICIPAL WARRANTS” (the “Resolution”), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Commission of the City at a meeting on February ____, 2023, and that the meeting was duly held by the City Commission and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. I further certify that, upon vote being taken on the Resolution at said meeting, the following Commissioners voted in favor thereof: ______________________________________ _____________________________________________________________________________; voted against the same: __________________________________________________________; abstained from voting thereon: ____________________________________________________; or were absent: ________________________________________________________________. WITNESS my hand officially this _____ day of February, 2023. _______________________________________ City Clerk 143 144 EXHIBIT BProperty Address Property Owner 1 Property Owner 2 Property Owner 3 Mailing Address City Zip Code State Bogert Pl Frontage (lf) SID Assessment411 S Church Ave Sinnay, Kenneth PO Box 42 Bozeman 59771 MT 150 20,700.00$           418 Bogert Pl Williams, Natalie E PO Box 7324 Bozeman 59771 MT 63.36 8,743.68$             412 Bogert Pl McCallum, Bruce D McCallum, Mary L 412 Bogert Pl Bozeman 59715 MT 73 10,074.00$           406 Bogert Pl McCallum, William L McCallum, Mariah A McCallum, Matthew B 406 Bogert Pl Bozeman 59715 MT 190 26,220.00$           405 E Story St Kinsey, Margaret L 405 E Story St Bozeman 59715 MT 95 13,110.00$           Bogert Park City of Bozeman 20 E Olive Street Bozeman 59771 MT 422.5 58,305.00$           Bozeman Creek City of Bozeman 20 E Olive Street Bozeman 59771 MT 216.75 29,911.50$           Total Accessable Frontage 1210.61Assessment/LF 138.00$                       Total Assessment 167,064.18$               145 Exhibit C Item Description Unit Est. Quantity Unit Price Total Price 101 Taxes, Bonds, Insurance L.S. 1 10,000.00$ 10,000.00$ 102 Mobilization L.S. 1 30,000.00$ 30,000.00$ 103 SWPPP Implementation L.S. 1 6,000.00$ 6,000.00$ 104 Unclassified Excavation Above Subgrade C.Y. 1,650 26.00$ 42,903.85$ 105 Remove Existing Concrete Sidewalk, Ped Ramps, and Drive & Alley Approaches S.F. 225 4.55$ 1,023.75$ 106 Remove existing wood post (bollards)EA 63 250.00$ 15,750.00$ 107 Remove existing Steel gate EA 1 1,000.00$ 1,000.00$ 108 Geotextile Separation Fabric S.Y. 2,599 1.60$ 4,158.37$ 109 3" Minus Uncrushed Subbase C.Y. 825 40.00$ 33,002.96$ 110 1" Minus Crushed Base Course C.Y. 413 50.00$ 20,626.85$ 111 Asphalt Concrete Pavement 3" Thickness S.Y. 1,845 21.00$ 38,752.00$ 112 Concrete Curb and Gutter L.F. 1,256 24.00$ 30,144.00$ 113 Ped Ramps, Drive and Alley Approach, and Sidewalk (6" Depth)S.F. 676 13.00$ 8,788.00$ 114 Concrete Sidewalk 4" Depth S.F. 950 11.00$ 10,450.00$ 115 ADA Detectable Warning Panel S.F. 20 60.00$ 1,200.00$ 116 4" Sch 80 PVC Utility Conduit L.F. 80 20.00$ 1,600.00$ 117 Topsoil, Sod & Site Restoration L.S. 1 20,000.00$ 20,000.00$ 118 Traffic Control L.S. 1 20,000.00$ 20,000.00$ 119 2" Square Tube Metal Posts L.F. 72 50.00$ 3,600.00$ 120 Aluminum Signs S.F. 22 50.00$ 1,100.00$ 121 Epoxy Pavement Marking (Curb, Top & Face)GAL 5 500.00$ 2,500.00$ 122 Construction Staking & Quality Assurance L.S. 1 12,000.00$ 12,000.00$ 123 Exploratory Excavation HR 5 300.00$ 1,500.00$ 124 Miscellaneous Work EA 25,000 1.00$ 25,000.00$ -$ TOTAL SCHEDULE 1 ESTIMATE 341,099.79$ Item Description Unit Est. Quantity Unit Price Total Price 401 12" SDR 35 PVC Storm Sewer Pipe L.F. 33 86.00$ 2,838.00$ 402 15" SDR 35 PVC Storm Sewer Pipe L.F. 118 86.00$ 10,148.00$ 403 Standard Storm Drain Inlet EA 2 5,000.00$ 10,000.00$ 404 Storm Drain Hydrodynamic Separator EA 1 65,000.00$ 65,000.00$ 405 Stream Bank Improvements L.S. 1 15,000.00$ 15,000.00$ 406 Miscellaneous Costs EA 10000 1.00$ 10,000.00$ TOTAL SCHEDULE 4 ESTIMATE 112,986.00$ TOTAL COMBINED SCHEDULE 1 AND 4 BID 454,085.79$ W/ 10% Contingency 499,494.37$ Engineers Estimate Schedule 4: Installation of new storm drain and inlets on Bogert Place 2023 Bogert Place Street Reconstruction Engineers Estimate Schedule 1: Reconstruction of Bogert Place from Church to Story Street including: removing the existing road section from curb-to-curb an constructing a new road section, installation of storm sewer, new signage, spot replacement of existing sidewalks, replacing drive approaches, adjusting existing utilities to accomodate the new roadway, restoring boulevards to pre-existing conditions, and all related work incidental to construction. 146 Exhibit D February 7, 2021 RE: Notice of passage of resolution of intent to create the Special Improvement District 778, notice of right to protest, notice of resolution for tax levy, and notice of public hearing on Tuesday, March 7, 2023 Dear Property Owner: Special Improvement District 778 On Tuesday, March 7, 2023 at 6:00 pm, the Bozeman City Commission (“Commission”) will hold a public hearing to consider written protests to the formation of the Special Improvement District 778 to fund street reconstruction improvements to Bogert Place between South Church Avenue and East Story Street. You are being mailed this letter and the accompanying Notice and forms because you are considered an owner of real property within the proposed district. At a commission meeting on February 7, 2023, the Commission adopted Resolution 5464, a resolution of intent to create Special Improvement District 778 (the “District”). Attached to this letter you will find a copy of the notice of passage of Resolution 5464. Resolution 5464 is on file in the City Clerk’s office located at City Hall, 121 North Rouse Avenue, Suite 200 and can also be found on the City’s website at www.bozeman.net by following the steps provided: Click “City Clerk” under the Departments tab, City Documents button, Resolutions, 2023 Resolutions, and by clicking on Resolution No. 5464.The District, if created, will comprise the area shown on Exhibit A of Resolution 5464 (attached) and will be for the purpose of constructing street and storm drainage improvements to Bogert Place between South Church Avenue and East Story Street. If created, the costs of the District will be assessed bi-annually to all owners of real property within the District based upon the amount of frontage of each lot or parcel, expressed in linear feet. Total assessment amounts by parcel can be found in Exhibit C (attached). If created, Resolution 5465 levying the assessment will be considered for adoption on Tuesday, March 7, 2023 at 6:00 pm in the Commission Room at Bozeman City Hall and you will have an opportunity to object to the adoption of Resolution 5465 at that public hearing. If this meeting is held remotely, you may join the meeting via the City’s website at www.bozeman.net clicking on the “City Commission” button then on the “Live Stream and Videos” button. A copy of Resolution 5465 is on file and subject to inspection in the City Clerk’s office. Owners of property have 15 days beginning February 13, 2023 to make a written protest against the creation of the District. Attached you will find a protest form owners of real property may use to support or protest the creation of the District. Instructions are provided on the form. At the March 7, 2023 public hearing on creation of the District, the City Commission will accept public comment and consider all valid written protests submitted prior to the established deadline of 5:00 pm on Wednesday, March 1, 2023. At the March 7, 2023 public hearing on the levy of the special assessment, the City Commission will hear and consider public comment and any objections to the levy. 147 Sincerely, Mike Maas Bozeman City Clerk Enc. Notice of Passage of Resolution 5464 Protest Forms Exhibit A - SID Boundary Map Exhibit B - SID Assessment Amounts by parcel Exhibit C – Engineer’s Estimate of Improvements 148 Exhibit E NOTICE OF PASSAGE OF RESOLUTION OF INTENTION TO CREATE SPECIAL IMPROVEMENT DISTRICT NO. 778 AND NOTICE OF RESOLUTION FOR TAX LEVY CITY OF BOZEMAN, MONTANA NOTICE IS HEREBY GIVEN that on February 7, 2022 the City Commission (the “Commission”) of the City of Bozeman, Montana (the “City”), adopted Resolution 5464, a Resolution of Intention to create Special Improvement District No. 778 (the “District”) for the purpose of undertaking certain local improvements on Bogert Place between South Church Avenue and East Story Street and financing the costs thereof and incidental thereto through a loan to the District from the City’s special improvement district revolving fund. If created, the Commission intends to levy a special assessment upon all benefitted property in the District as described in Resolution 5465. A complete copy of Resolution No. 5464 is on file with the Bozeman City Clerk. Resolution 5464 more specifically describes the nature of the improvements, the boundaries and the area included in the District, and other matters pertaining thereto and further particulars. A complete copy of Resolution No. 5465, A Resolution of the City Commission of the City of Bozeman to Levy a Special Assessment Upon All Benefitted Property in Special Improvement District 778, is also on file with the Bozeman City Clerk. The Resolutions and accompanying exhibits may be also viewed on the City’s website at www.bozeman.net. The City proposes to undertake certain local improvements to benefit certain property located in the City. The Improvements consist of roadway improvements to Bogert Place between South Church Avenue and East Story Street, including: repaving the road, replacement of curbing, installation of storm drainage improvements and pedestrian ramps, as more particularly described in Section 5 of Resolution 5464 (the “Improvements”). The total estimated costs of the Improvements is $499,000; however, the City has committed $331,936 from the City’s Street Maintenance District to reduce the costs to the District, leaving $167,064 of the costs of the Improvements, to be funded by the District (hereafter referred to as the District’s Share of the Improvements). It is the intention of the City Commission to create and establish in the City under Title 7, Chapter 12, Parts 41 and 42, MCA, as amended, the District for the purpose of financing the District’s Share of the Improvements and paying costs incidental thereto, including costs associated with the creation and administration of the District (collectively the “Incidental Costs”). The total estimated cost of the District’s Share of the Improvements, including such Incidental Costs, is $168,064. Subject to the limitations in Sect. 7-12-4222, MCA the general fund of the City may be used to provide loans to the special improvement district revolving fund or a general tax levy may be imposed on all taxable property in the City to meet the financial requirements of the revolving fund. To fund the costs of the District’s Share of the Improvements, the Commission intends to provide the District a loan of approximately $168,064 from the City’s special improvement 149 Exhibit E district revolving fund, the purpose of which is to finance the construction warrants related to the District’s Share of the Improvements and Incidental Costs. In doing so, the Commission intends to levy assessments against each property in the District pursuant to Sect. 7-12-4163, MCA (street frontage assessment method) to reimburse the special improvement district revolving loan fund in an amount to equal the principal of the loan of $168,064 plus interest at approximately 2.0% annually. On Tuesday, March 7th, 2023, at 6:00 p.m., the City Commission will conduct a public hearing in the City Commission Room at 121 North Rouse Avenue regarding adoption of Resolution 5465 creating the District and pass upon all written protests against the creation of the District, or the Improvements. If the District is created, the City Commission will then conduct a public hearing on adoption of Resolution 5465 levying a special assessment on property benefitted by SID 778, at which time objections to the adoption of Resolution 5465 will be heard. Written protests against the creation of District 778 may be filed by an owner of real property within the proposed District whose property is liable to be assessed for the Improvements. Such protests must be delivered to the City Clerk at the City Hall, 121 North Rouse Avenue, Suite 200, Bozeman, Montana not later than 5:00 p.m., M.T.,on Wednesday, March 1, 2023. Further information regarding the proposed District or other matters in respect thereof may be obtained from the City Engineer, PO Box 1230, Bozeman, Montana, 59771 or by telephone at (406) 582-2280. DATED this 8th day of February, 2023. BY ORDER OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA _________________________________________ Mike Maas City Clerk Legal Ad Publication Dates: Sunday, February 12, 2023 Sunday, February 19, 2023 150 AFFIDAVIT OF MAILING STATE OF MONTANA ) : ss County of Gallatin ) Mike Maas, Bozeman City Clerk, being first duly sworn, says: That I cause to be mailed first class in Bozeman, Montana, on the 7 th day of February, 2023, a copy of the Notice of Passage of Resolution 5464 (A resolution of intent to create the Bogert Place SID (SID No. 778) to owners of real property located in Special Improvement District No. 778, as those properties are listed in Exhibit "C" of Resolution 5464, directed to the owners at the addresses shown on Exhibit "B". ______________________________ Mike Maas City Clerk Subscribed and sworn to before me this 8 th day of February, 2023. (Notarial Seal) _______________________________ Printed name ___________________ Notary Public for the State of Montana Residing at Bozeman, Montana My Commission expires: __________ 151 City of Bozeman Special Improvement District Creation Protest/Support Form Information & Instructions The City of Bozeman provides this form to owners of real property for purposes of official protest against the creation of Special Improvement District No. 778 (financing improvements to Bogert Place between South Church Avenue and East Story Street). SPECIAL IMPROVEMENT DISTRICT (SID) CREATION AND PROTEST A Special Improvement District (SID) is created by administrative action of the Bozeman City Commission. The City Commission’s authority to create a SID and the purposes for which a SID may be created are provided for in Title 7, chapter 12, parts 41 and 42, Montana Code Annotated. To create a SID, the City Commission must first adopt a resolution of intent. If the Commission adopts the resolution of intent the City Clerk will then mail a copy of the Notice of Passage of the Resolution of Intent to create the SID to property owners within the proposed SID. At the same time, the City Clerk will publish the Notice of Passage of the Resolution of Intent in a local newspaper. Owners of property liable to be assessed for the cost of the improvements under the SID may protest its creation pursuant to 7-12-4110, MCA. The protest period begins after the date of the first publication of the notice of the passage of the resolution of intent. OFFICIAL PROTEST PERIOD The protest period for the creation of Special Improvement District No. 778 begins February 13, 2023 and ends at 5 p.m. on Wednesday, March 1, 2023. Official protests must be signed; therefore, the City will not count emails or telephone calls as formal protest. INSTRUCTIONS TO PROTEST OR SUPPORT THE DISTRICT In order to be counted as the official protest, protests against the district must be: Signed by all the record owners of fee simple title to the property; Identify the property in the district owned by the protestor; and Be submitted in writing to the Bozeman City Clerk no later than March 1st, at 5 p.m. Mountain Standard Time. For purposes of protesting a SID, an “Owner” means as of the date a protest is filed, the record owner of fee simple title to the property or a contract buyer on file in the records of the Gallatin County Clerk and Recorder. The term “owner” does not include a tenant of or other holder of a leasehold interest in the property. If you are unsure about who is listed on the deed to your property, Gallatin County has property ownership records and can be contacted at www.gallatin.mt.gov. You are not required to return the form if you support creation of the SID. 152 A protest/support form is enclosed for your convenience. The form contains separate parts for different types of ownership. Only one form need be completed per property: Part 1. To be completed for property owned by individuals. Part 2. To be completed for property owned by corporations, trusts, LLC’s, or other entities. Part 3. To be completed for property designated as condominium. If you are interested in protesting, please complete the part(s) that apply to your particular ownership. If you own multiple properties, please use a separate form for each property. PLEASE MAIL THE COMPLETED FORM TO: City of Bozeman C/O City Clerk Office P.O. Box 1230 121 North Rouse Avenue Bozeman, MT 59771-1230 Alternately, property owner(s) may sign the completed form, scan it and e-mail it to agenda@bozeman.net. EFFECT OF PROTEST Pursuant to 7-12-4113, MCA, the City Commission may not take further action on the proposed district for a period of six (6) months if the City receives validated protests from the owners of property in the proposed district to be assessed for more than 50% of the cost of the proposed work, in accordance with the methods of assessment described in the resolution of intent. 153 City of Bozeman Special Improvement District Creation Protest/Support Form PART 1 - Property owned by individuals, please complete this section. Property address or legal description: I/We the undersigned owner(s) of property described above want to: (check one) Protest Support the creation of Special Improvement District No. 778 proposed to be established for the purpose of financing local improvements to Bogert Place between S. Church Avenue and E Story Street. Signature: Printed Name: Date: Signature: Printed Name: Date: Signature: Printed Name: Date: Signature: Printed Name: Date: FOR CITY CLERK’S OFFICE USE ONLY Protest/Support Form received by City Clerk on _____/______/2023 at _____:____ AM/PM. 154 PART 2 - Property owned by corporations, LLC, trusts or other organizations please complete this section. Entity/Owner Name: Property address or legal description: I/We the undersigned as legally authorized representative(s) of the organization that owns the above listed property want to (check one) Protest Support the creation of Special Improvement District No. 778 proposed to be established for the purpose of financing local improvements to Bogert Place between S. Church Avenue and E Story Street. Signature: Printed Name: Title: Date: Signature: Printed Name: Title: Date: Signature: Printed Name: Title: Date: Signature: Printed Name: Title: Date: FOR CITY CLERK’S OFFICE USE ONLY Protest/Support Form received by City Clerk on _____/______/2023 at _____:____ AM/PM PART 3 - Property owned as a condominium. 155 A special note for condominium owners: An owner of property created as a condominium may protest the creation of the district only through the president, vice president, secretary, or treasurer of the condominium owners' association who timely presents to the City Clerk the following information: (a) a written identification of the condominium property (b) the condominium declaration or other condominium document that shows how votes of unit owners in the condominium are calculated; (attach the declaration to this form) (c) original signatures of owners of units in the condominium having an undivided ownership interest in the common elements of the condominium sufficient to constitute an affirmative vote for an undertaking relating to the common elements under the condominium declaration; and (d) a certificate signed by the president, vice president, secretary, or treasurer of the condominium owners' association certifying that the votes of the unit owners, as evidenced by the signatures of the owners, are sufficient to constitute an affirmative vote of the condominium owners' association to protest against the creation of the district and its improvements. PART 3 - Property owned as part of a condominium, please complete this section. Name of condominium: Street address or legal description of condominium: We the undersigned owners have an undivided ownership interest in the common elements of the above named condominium present the following original signatures to the Bozeman City Commission indicating our protest of the creation of Special Improvement District No. 778 proposed to be established for the purpose of financing local improvements to Bogert Place between S. Church Avenue and E Story Street. Condo owner signature: Printed Name:Property address:(Check one) __ Protest __ Support Date: Condo owner signature: Printed Name:Property address:(Check one) __ Protest __ Support Date: Condo owner signature: Printed Name:Property address:(Check one) __ Protest __ Support Date: Certificate of Condominium Officer I certify that the above listed signatures of the owners having an undivided ownership interest in the common elements of the condominium sufficient to constitute an affirmative vote for an undertaking relating to the common elements under our condominium declaration hereby (check one)__ Protest __ Support the creation of Special Improvement District No. 778 proposed to be established for the purpose of financing local improvements to Bogert Place between S. Church Avenue and E Story Street. Signature of condo officer: Title: FOR CITY CLERK’S OFFICE USE ONLY Received by City Clerk on _____/______/2023 at _____:____ AM/PM. 156 Memorandum REPORT TO:City Commission FROM:Brian Heaston, Senior Engineer John Alston, Director of Utilities SUBJECT:Resolution 5474 Approving Change Order 2 to the WRF Solids Dewatering Building Expansion and Headworks Improvement Project MEETING DATE:February 7, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Authorize the City Manager to Sign Resolution 5474 Approving Change Order No. 2 to the WRF Solids Dewatering Building Expansion and Headworks Improvement Project. STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a mechanism to encourage economic development. BACKGROUND:Attached is Resolution 5494 and Change Order No. 2 for the above referenced project. The construction contract is substantially complete and nearing readiness for final payment and project closeout. The change order reconciles the final contract price by formally incorporating several change proposal requests (CPRs) negotiated between the Contractor and Engineer on request of the City as work was being prosecuted to substantial completion. The CPRs debit from the construction contract’s $50k contingency allowance. Final contract price set by this change order is less than the contract bid price as the total cost of the CPRs is under the $50k contingency. The change order also reconciles contract time for the contract’s substantial completion milestone. UNRESOLVED ISSUES:None. ALTERNATIVES:As suggested by the City Commission. FISCAL EFFECTS:Change Order No. 2 decreases the final contract price by $26,655.00, providing for a contract amount of $2,543,492.00. Savings are returned to the wastewater enterprise available fund balance. Attachments: Resolution 5474_CO No. 2_WRF Solids Handling_011923.docx Change Order No. 2.pdf 157 Report compiled on: January 19, 2023 158 Version April 2020 RESOLUTION 5474 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, APPROVING ALTERATION/MODIFICATION OF CONTRACT WITH DICK ANDERSON CONSTRUCTION, INC., BOZEMAN, MONTANA WHEREAS,the City Commission did, on the March 23, 2021, authorize award of the bid for the WRF Solids Dewatering Building Expansion and Headworks Improvement Project to Dick Anderson Construction, Inc., Bozeman, Montana; and WHEREAS, Section 7-5-4308, Montana Code Annotated, provides that any such alterations or modifications of the specifications and/or plans of the contract be made by resolution; and WHEREAS, it has become necessary in the prosecution of the work to make alterations or modifications to the specifications and/or plans of the contractto reflect the project scope and price at final completion. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, that the proposed modifications and/or alterations to the contract between the City of Bozeman, a municipal corporation, and Dick Anderson Construction, Inc., as contained in Change Order No. 2, attached hereto, be and the same are hereby approved; and the City Manager is hereby authorized and directed to execute the contract change order for and on behalf of the City; and the City Clerk is authorized and directed to attest such signature. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 7th day of February, 2023. ___________________________________ CYNTHIA L. ANDRUS Mayor 159 Version April 2020 ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 160 EJCDC® C-941, Change Order. Prepared and published 2013 by the Engineers Joint Contract Documents Committee. Page 1 of 2 Change Order No. 02 Date of Issuance: Effective Date: 12/16/2022 Owner: City of Bozeman Owner's Contract No.: Contractor: Dick Anderson Construction Contractor’s Project No.: Engineer: HDR Engineering Engineer's Project No.: 10176456 Project: WRF Solids Handling and Headworks Improvements Project The Contract is modified as follows upon execution of this Change Order: Description: This Change Order accounts for the funds left over from the project. A breakdown of the remaining funds by schedule and line item is shown in the attached Table. Attachments: Table of Excess and Unused project Funds CHANGE IN CONTRACT PRICE CHANGE IN CONTRACT TIMES Original Contract Price: Original Contract Times: 240 days Substantial Completion: 240 days $2,296,033.00 Ready for Final Payment: days or dates Increase from previously approved Change Orders No. 1: Increase from previously approved Change Orders: Substantial Completion: 0 $274,114.00 Ready for Final Payment: 0 0 days or dates Contract Price prior to this Change Order: Contract Times prior to this Change Order: Substantial Completion: 240 days $2,570,147.00 Ready for Final Payment: days or dates Decrease of this Change Order: Increase of this Change Order: Substantial Completion: 37 days $26,655.00 Ready for Final Payment: days or dates Contract Price incorporating this Change Order: Contract Times with all approved Change Orders: Substantial Completion: 277 days $2,543,492.00 Ready for Final Payment: days or dates RECOMMENDED: ACCEPTED: ACCEPTED: By: By: By: Engineer (if required) Owner (Authorized Signature) Contractor (Authorized Signature) Title: Title: Title: Date: Date Date: 1/16/2023 Project Manager DocuSign Envelope ID: 69DB87C5-8E0E-466B-9BF0-0B91FA576A9A 1/19/2023 Project Manager 161 EJCDC® C-941, Change Order. Prepared and published 2013 by the Engineers Joint Contract Documents Committee. Page 2 of 2 Table of Excess and Unused project Funds Contingency Funded by Contract $ 50,000.00 CPR 01 - CAT6 CABLE & CONDUIT $ 9,840.15 CPR 02 - FRESH WATER SUPPLY TO NEW SCREW PRESS $ 9,109.22 CPR 03 – NOT USED - CPR 04 - EXISTING CONVEYOR REPAIR $ 2,664.38 CPR 05 - DRAIN LINE MODIFICATIONS $ 3,654.13 CPR 06 - ROOF CRICKET HEAT TAPE $ 3,472.25 CPR 07 - POWER & CONTROLS FOR OH DOOR(S) $ 4,604.87 CPR 08 - FAD CREDIT FOR PVC ($10,000.00) Subtotal $ 23,345.00 Contingency Leftover $ 26,655.00 DocuSign Envelope ID: 69DB87C5-8E0E-466B-9BF0-0B91FA576A9A 162 Memorandum REPORT TO:City Commission FROM:Jon Henderson, Strategic Services Director SUBJECT:Resolution 5476 Authorizing Prime Change Order 2 and Guaranteed Maximum Price Amendment 4 with Martel Construction, Inc. for the Construction of the Bozeman Public Library Renovation Project MEETING DATE:February 7, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Approve Resolution 5476, authorizing prime change order #2 and guaranteed maximum price amendment #4 with Martel Construction, Inc., for construction of the Bozeman Public Library Renovation Project STRATEGIC PLAN:5.1 Civic and Cultural Infrastructure: Expand Bozeman's civic and cultural "infrastructure" as the city grows. BACKGROUND:On December 6, 2022 the City Commission approved Resolution 5460 authorizing Guaranteed Maximum Price Amendment #3 for the construction of the Bozeman Public Library Renovation Project as a part of the General Construction / Construction Manager Agreement. This amendment contains provisions for altering the conditions of the agreement as authorized by the owner (City) and includes a net credit of $29,098 for changes necessary to the project. Changes that will be addressed with this amendment include a credit for underlayment, relocation and reinstallation of Community Room casework, and relocation of a pipe in the Circulation Room. While every reasonable attempt was made to include everything in the original project plans and specs, projects of this size and complexity require changes during construction. UNRESOLVED ISSUES:None. ALTERNATIVES:As directed by the City Commission. FISCAL EFFECTS:The changes included in this request result in a net credit of $29,098 that will be used to reimburse overall project contingency. Attachments: Resolution 5476.pdf 163 Prime Change Order #2.pdf Guaranteed Maximum Price Amendment No. 4 for Public Library.pdf Report compiled on: January 25, 2023 164 Version April 2020 RESOLUTION 5476 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, WHEREAS, the City Commission did, on December 6, 2022, authorize Guaranteed Maximum Price (GMP) Amendment #3 for Construction of the Bozeman Public Library Renovation Project with Martel Construction, Inc.; and WHEREAS, Section 7-5-4308, Montana Code Annotated, provides that any such alterations for modification of the specifications and/or plans of the contract be made by resolution; and WHEREAS, it has become necessary in the prosecution of the work to make alterations and modifications to the specifications and/or plans of the contract. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, that the proposed modifications and/or alternates to GMP Amendment #4 for Construction of the Bozeman Public Library Renovation Project, as contained in Prime Change Order #2, attached hereto, be and the same are hereby approved; and the City Manager is hereby authorized and directed to execute the contract change order for and on behalf of the City; and the City Clerk is authorized and directed to attest such signature., to wit: PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 7th day of February 2023. ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: 165 Version April 2020 ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 166 January 3, 2023 City of Bozeman PO Box 1230 Bozeman, MT 59715-5801 ATTN:Jon Henderson Martel COR # PROJECT:Bozeman Public Library SUBJECT:Uzin Underlayment Jon, We propose to provide all labor, materials, and equipment required to perform the above mentioned work. Our lump sum quotation is based on our interpretation of the instructions and scope of work identified by the addendums. If we have misinterpreted this information in any way (omissions, etc.) please advise us prior to processing this quotation into a formal Change Order. Other wise, our interpretation shall stand as correct. We have not been directed to proceed with the work. At this time, we are hereby requesting 0 calendar days for a time extension Please note this proposal is valid for 15 days. Approval beyond that date may result in additional costs or delays. Our proposal is based on receipt of a signed Change Order within (25) calendar days. We are requesting a DECREASE in the GMP for the amount of:(34,608)$ If you have any questions, please call me at (406) 223-9011 A signature below indicates the owner has accepted thec hange order and the work will proceed. Sincerely, Mike Daines-Project Manager MARTEL CONSTRUCTION, INC. 5 167 Spreadsheet ReportPage 1Bozeman Public Library - 3.11.202211/30/2022 10:53 AMGroupPhaseDescriptionTakeoff QuantityLabor AmountMaterial AmountSub AmountEquip AmountOther AmountTotal Amount01-0000GENERAL REQUIREMENTS101-0150Project Management2Cost Management Labor (including all fringe andinsurance)2.00hr133*-*-1333 Project Management133133 GENERAL REQUIREMENTS13313302-0000EXISTING CONDITIONS402-2200Selective Demolition5Demo tile for La Cantina Threshold48.00lf1,152---1,1526Remove Tile Flooring & Setting Bed - Phase 2,Area B2,190.00sf(3,184)----(3,184)7 Selective Demolition(2,032)(2,032) EXISTING CONDITIONS(2,032)(2,032)09-0000FINISHES809-6000Flooring Prep9CONC-2 - Self Leveling Topping2,190.00sf-*(45,615)--(45,615)10 Flooring Prep(45,615)(45,615)09-6500Resilient Flooring11Uzin self leveler1.00ls--13,570--13,57012 Resilient Flooring13,57013,570 FINISHES(32,045)(32,045)Estimate TotalsDescriptionAmountTotalsHoursRateCost BasisCost per UnitPercent of TotalLabor(1,899)MaterialSubcontract(32,045)EquipmentOther(33,944)(33,944)General Liability Insurance(306)Performance Bond(234)Gross Receipts TaxBuilders Risk(124)Construction FeeConstruction Contingency(664)(34,608)Total(34,608)Uzin Linoleum Underlayment168 169 January 11, 2023 City of Bozeman PO Box 1230 Bozeman, MT 59715-5801 ATTN:Jon Henderson Martel COR # PROJECT:Bozeman Public Library SUBJECT:Community Room Casework Relocate and Reinstall Jon, We propose to provide all labor, materials, and equipment required to perform the above mentioned work. Our lump sum quotation is based on our interpretation of the instructions and scope of work identified by the addendums. If we have misinterpreted this information in any way (omissions, etc.) please advise us prior to processing this quotation into a formal Change Order. Other wise, our interpretation shall stand as correct. We have not been directed to proceed with the work. At this time, we are hereby requesting 0 calendar days for a time extension Please note this proposal is valid for 15 days. Approval beyond that date may result in additional costs or delays. Our proposal is based on receipt of a signed Change Order within (25) calendar days. We are requesting to use CONSTRUCTION CONTINGENCY to cover the increased cost of:2,127$ If you have any questions, please call me at (406) 223-9011 A signature below indicates the owner has accepted the change order and the work will proceed. Sincerely, Mike Daines-Project Manager MARTEL CONSTRUCTION, INC. 6 170 Spreadsheet Report Page 1 Bozeman Public Library - 3.11.2022 1/10/2023 4:50 PM Group Phase Description Takeoff Quantity Labor Amount Material Amount Sub Amount Equip Amount Other Amount Total Amount 01-0000 GENERAL REQUIREMENTS1 01-0110 Supervision2 General Conditions Labor (including all fringe and insurance) 4.00 hour 286 *-*-2863 Supervision 286 286 GENERAL REQUIREMENTS 286 286 06-0000 WOOD & PLASTICS4 06-4130 Wood Casework5 Casework Removal, relocation and reinstallation + Hardware 35.00 hr 1,699 ---1,6996 Wood Casework 1,699 1,699 WOOD & PLASTICS 1,699 1,699 Estimate Totals Description Amount Totals Hours Rate Cost Basis Cost per Unit Percent of Total Labor 1,985 Material Subcontract Equipment Other 1,985 1,985 General Liability Insurance 19 Performance Bond 14 Gross Receipts Tax Builders Risk 8 Construction Fee 101 Construction Contingency 142 2,127 Total 2,127 171 January 11, 2023 City of Bozeman PO Box 1230 Bozeman, MT 59715-5801 ATTN:Jon Henderson Martel COR # PROJECT:Bozeman Public Library SUBJECT:Circulation Room Pipe Relocation Jon, We propose to provide all labor, materials, and equipment required to perform the above mentioned work. Our lump sum quotation is based on our interpretation of the instructions and scope of work identified by the addendums. If we have misinterpreted this information in any way (omissions, etc.) please advise us prior to processing this quotation into a formal Change Order. Other wise, our interpretation shall stand as correct. We have not been directed to proceed with the work. At this time, we are hereby requesting 0 calendar days for a time extension Please note this proposal is valid for 15 days. Approval beyond that date may result in additional costs or delays. Our proposal is based on receipt of a signed Change Order within (25) calendar days. We are requesting to use CONSTRUCTION CONTINGENCY to cover the increased cost of:3,383$ If you have any questions, please call me at (406) 223-9011 A signature below indicates the owner has accepted the change order and the work will proceed. Sincerely, Mike Daines-Project Manager MARTEL CONSTRUCTION, INC. 8 172 Spreadsheet Report Page 1 Bozeman Public Library - 3.11.2022 1/11/2023 8:56 AM Group Phase Description Takeoff Quantity Labor Amount Material Amount Sub Amount Equip Amount Other Amount Total Amount 01-0000 GENERAL REQUIREMENTS1 01-0110 Supervision2 General Conditions Labor (including all fringe and insurance) 4.00 hour 286 *-*-2863 Supervision 286 286 GENERAL REQUIREMENTS 286 286 09-0000 FINISHES4 09-2500 Gypsum Board5 Patch old outlet location 1.00 ls 220 75 ---2956 Gypsum Board 220 75 295 FINISHES 220 75 295 22-0000 PLUMBING7 22-1000 Building Services Piping8 Apollo repipe DCW and Drain Line 1.00 ls --2,342 --2,3429 Building Services Piping 2,342 2,342 PLUMBING 2,342 2,342 26-0000 ELECTRICAL10 26-0500 Electrical11 Outlet moved to avoid new piping 1.00 ls --235 --23512 Electrical 235 235 ELECTRICAL 235 235 Estimate Totals Description Amount Totals Hours Rate Cost Basis Cost per Unit Percent of Total Labor 506 Material 75 Subcontract 2,577 Equipment Other 3,158 3,158 General Liability Insurance 30 Performance Bond 23 Gross Receipts Tax Builders Risk 12 Construction Fee 160 Construction Contingency 225 3,383 Total 3,383 173 Apollo Mechanical 143 Totem View Drive Victor MT, 59875 Marshall Shaffer 406-596-2644 Marshall.Shaffer@apollomech.com Date:1/10/2023 Apollo Project Number:10154 To:Martel Construction Inc.Apollo Proposal Number:PCO-002 1203 S. Church Ave. Bozeman, MT 59715 Customer Reference:Bozeman Public Library Mike Daines Project:0 Apollo is pleased to offer our proposal for the work described as follows: Total This Proposal:$2,342.26 Marshall Shaffer Project Manager This pricing includes the demolition of the existing DCW and Drain line supplying the sink in the Circulation Work Room up to the sink on L1 Upper. A new DCW and Drain line will be installed from the sinks new location in the ILL Office up to supply the relocated sink in L1 Upper. DCW and Vent Demo-Reinstall 174 Project:0 Apollo PCO #PCO-002 SHEET METAL/HVAC # hours Rate Total PLUMBING/PIPE # hours Rate Total 0 $67.69 $0.00 0 $77.00 $0.00 0 $89.07 $0.00 0 $100.76 $0.00 $0.00 $0.00 0 $67.69 $0.00 15.24 $66.61 $1,015.14 0 $89.07 $0.00 0 $90.86 $0.00 0 $110.44 $0.00 0 $115.12 $0.00 $0.00 $1,015.14 0 $87.90 $0.00 $0.00 Total Shop Labor $0.00 Total Field Labor $1,015.14 Total Misc. Labor $0.00 $1,015.14 Hours Rate Project Manager 3 $95.00 $285.00 Dry Side Supervision 0.0 $77.51 $0.00 Wetside Supervision 2.5 $76.27 $193.72 $478.72 $542.89 $0.00 $0.00 Deliveries $0.00 $542.89 $2,036.75 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Rate Overhead and Profit Apollo Labor, Materials and Equipment 15.00%$305.51 Overhead and Profit Subcontracts 15.00%$0.00 $305.51 $2,342.26 $2,342.26 Subtotal Misc. Labor Shop Straight Time Field Straight Time Field Overtime Field Premium Time Field Overtime BREAKDOWN OF COSTS LABOR Subtotal Shop Labor Field Straight Time Shop Straight Time Shop Overtime Shop Overtime Subtotal Field Labor Subtotal Shop Labor Subtotal Field Labor BIM/CAD Field Premium Time Total Materials and Equipment MATERIALS AND EQUIPMENT Materials Total Labor Supervision Equipment Total Labor Supervision Rentals TOTAL SUBCONTRACTS TOTAL APOLLO MATERIALS, EQUIPMENT AND LABOR SUBCONTRACTS Hudson Bay Insulation Johnson Controls Inc. RGO Test and Balance Snowcrest Chemical Concrete Coring OVERHEAD/PROFIT/MARKUPS TOTAL OVERHEAD/PROFIT AND MARKUP TOTALS Subtotal GRAND TOTAL THIS PROPOSAL 175 Count DESCRIPTION PIPE LABOR FACTOR PIPE HOURS PIPE MATERIAL UNIT PRICE PIPE MATERIALS Fasteners/Valves 3 1/2" cu 90 0.4 1.20 $0.77 2.31$ 1 2" Transbond PVC to Cast 0.39 0.39 $8.76 8.76$ 3 2" Cast Iron 90 0.39 1.17 $14.24 42.72$ 6 2" Cast Bands 0.39 2.34 $3.07 18.42$ 2 1/2" Brass Pro Press Ball valve 0.1 0.20 $20.55 41.10$ 1 2" PVC Wye 0.38 0.38 $5.33 5.33$ 1 2" PVC st 45 0.26 0.26 $2.54 2.54$ -$ Piping 30 2" Cast Iron Pipe 0.12 3.60 $289.26 $289.26 30 1/2" cu Pipe 0.06 1.80 $64.50 $64.50 0.00 -$ 0.00 -$ 0.00 -$ Hangers/Misc 10 3/8" allthread 0.09 0.90 $0.58 5.80$ 9 3" Loop Hangers $1.35 12.15$ 1 Misc Hardware & install 1.00 $50.00 50.00$ -$ -$ -$ DCW & Drain Demo 2.00 -$ -$ TOTALS 15.24 542.89$ 176 Request For Information Project 10154 BOZEMAN PUBLIC LIBRARY 626 E MAIN ST Phone: BOZEMAN MT 59715 Fax: RFI Number Subject Open Date Due Date RFI 001 DCW and Drain Line Demo 01/09/23 01/16/23 To From Daines M SHAFFER MARSHALL APOLLO MECHANICAL 1133 W COLUMBIA DR KENNEWICK WA 99336 406-223-9011 5095861104 mdaines@martelconstruction.com MARSHALL.SHAFFER@APOLLOMECH.COM Copies To Company Contact Name Copies Question In Demo-ing the sink in the Circulation Work Room it was discovered that the DCW and drain lines run from the Basement, up to the Circulation Work room sink, and from there connecting to the Sink on L1 Upper shown on the attached drawing. There was no mention of demolition or re-installation of a DCW and Drain line on the prints for L1 Upper. Answer Suggested Solution: Apollo suggests that the DCW and Drain line are demoed from existing Sink in Circulation Work room to L1 Upper. The Sink will be relocated to ILL Office and the DCW and Drain line will be installed to supply the relocated sink above in L1 Upper Schedule Impact:Schedule Impact days: 0.00 Schedule Impact notes: Drawing Impact:Drawing Discipline: Draw Impact Notes: Cost Impact:Cost Impact Amount: 0.00 Cost Impact Notes: Respondent Signature Printed Name Signed Date 177 178 179 GUARANTEED MAXIMUM PRICE AMENDMENT (GMP) NO. 4 TO AGREEMENT BETWEEN OWNER AND CONSTRUCTION MANAGER Pursuant to Article 4.5 of the Preconstruction Services Conditions Agreement between Owner and Construction Manager this amendment dated the 6th day of December 2022, between City of Bozeman (“Owner”) and Martel Construction, Inc. (“Contractor”) for the Bozeman Public Library, hereby establishes a Guaranteed Maximum Price and Contract Time for the portion of the Project as set forth below: GUARANTEED MAXIMUM PRICE FOR BOZEMAN PUBLIC LIBRARY The Construction Manager’s Guaranteed Maximum Price (GMP) for the Work, including the Cost of the Work and the Construction Manager’s Fee is as follows: Base Bid General Requirements $234,376.00 Existing Conditions $44,768.00 Concrete $11,044.00 Masonry $19,500.00 Steel $50,401.00 Wood & Plastics $553,636.00 Thermal & Moisture Protection $47,252.00 Doors & Windows $358,721.00 Finishes $594,472.00 Specialties $2,202.00 Equipment $28,033.00 Furnishings $57,811.00 Fire Suppression $41,558.00 Plumbing $67,671.00 HVAC $110,350.00 Electrical $941,327.00 Electrical Allowance $16,904.00 Communications $38,426.00 Site Improvements $3,034.00 Site Specific Requirements $152,990.00 Audio/Visual $226,898.00 Base Bid Subtotal $3,601,374.00 General Liability Insurance $33,041.00 Gross Receipts Tax $3,641.00 Builders Risk $13,365.00 Bond $25,244.00 180 Construction Fee $176,448.00 Construction Contingency $102,784.00 Base Bid Total $354,523.00 Pre-Construction Services Total $21,560.00 TOTAL GUARANTEED MAXIMUM PRICE $3,977,457.00 CONTRACT TIME The date of Substantial Completion for the Work outlined above is: 12 months from Notice to Proceed OWNER: CONTRACTOR: City of Bozeman Martel Construction, Inc. 121 N. Rouse Ave. 1203 S. Church Ave. Bozeman, MT 59715 Bozeman, MT 59715 By:__________________________ By: __________________________ Jeff Mihelich, City Manager Travis Kabalin, Vice President 181 Memorandum REPORT TO:City Commission FROM:Addi Jadin, Park Planning and Development Manager Mitch Overton, Director of Parks and Recreation SUBJECT:Resolution 5477 Adopting the Update to the Fair Market Value of Land for Cash-in-Lieu of Parkland Calculations MEETING DATE:February 7, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Adopt Resolution 5477 updating the fair market value of land per square foot for calculating cash-in-lieu of parkland dedication amounts. STRATEGIC PLAN:4.2 High Quality Urban Approach: Continue to support high-quality planning, ranging from building design to neighborhood layouts, while pursuing urban approaches to issues such as multimodal transportation, infill, density, connected trails and parks, and walkable neighborhoods. BACKGROUND: Section 38.420.030 of the Bozeman Municipal Code, (“Cash Donation in lieu of Land Dedication”) includes the following provisions: C. Cash donation in-lieu of land dedication must be equal to the fair market value of the amount of land that would have been dedicated. The fair market value is the value of the unsubdivided, unimproved land after it has been annexed and given a municipal zoning designation. The city commission may adopt procedures to be used by the director of parks and recreation to determine the fair market value. The amount of the cash-in-lieu to be provided must equal the city's established fair market value per square foot times the amount of land required to be dedicated. The city must periodically update the market value as deemed necessary to reflect changes in the price of land. The valuation used for calculating the amount due will be the valuation in effect at the time an application for final plat or final plan approval is complete. 1. Alternative. A developer may provide an alternate market valuation which complies with the following: a. The developer must provide an appraisal of the fair market value by a certified real estate appraiser of their choosing and is responsible for the appraisal fee. b. When a land value must be established for cash-in-lieu of land dedication to satisfy the requirements of section 38.420.020, and the value of the land in an unsubdivided, unimproved, but annexed and zoned condition cannot be reasonable determined, the developer may provide an appraisal of residentially zoned property with a zoning designation that allows the density 182 of dwellings proposed for development. c. The appraisal provided for the purpose of section 38.420.030 must be conducted not sooner than 90 days prior to the submittal of an application for final plat or final site plan approval. The process for determining valuation includes the following steps: 1. Obtain proposal from appraiser to provide initial appraisal report on fair market value for residentially zoned, undeveloped land. 2. Set initial value for cash in lieu of parkland dedication per square foot based on appraiser’s report. 3. Update appraisal a minimum of once per year, or as market conditions change significantly. A report has been prepared by Bridger Appraisals, a local appraiser who has been providing appraisals for cash in lieu of parkland dedication valuation for development proposals for the past several years (Exhibit A). The report estimates the appraisal value of between $110,000 and $115,000 per acre ($2.53 and $2.64 per square foot) and recommends the new appraisal value be set at $2.60 per square foot for all residential zoning districts, based on the availability of appropriate comparisons that meet the requirements of state law and the Bozeman Municipal Code. Proposed Resolution 5477 will replace Resolution 5472 which was adopted on January 24, 2023 but contained an error. UNRESOLVED ISSUES:None. ALTERNATIVES: Per Commission. FISCAL EFFECTS: The Parks Division pays for appraisal updates a minimum of once per year. Attachments: Resolution_5477_Determination_of_CILP_Valuation.docx Exhibit A - Appraisal Report.pdf Report compiled on: January 12, 2023 183 Version April 2020 RESOLUTION 5477 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, WHEREAS,Section 38.420.030 of the Bozeman Municipal Code, (“Cash Donation in lieu of Land Dedication”) states that the city commission may adopt procedures to be used by the director of parks and recreation to determine the fair market value for cash in lieu of parkland dedication donations; and WHEREAS,Section 38.420.030 of the Bozeman Municipal Code states that the city must periodically update the market value as deemed necessary to reflect changes in the price of land; and WHEREAS, an updated appraisal report has been obtained from a qualified, licensed appraiser to determine the fair market value of unsubdivided, unimproved land after it has been annexed and given a municipal zoning designation in accordance with Montana Code Annotated Section 76-3-621; and WHEREAS,the appraisal report indicates the fair market value of residential property for the purposes of cash donation in lieu of park land dedication has increased considerably since the last appraisal (Exhibit A); NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: that the fair market value of residential property for the purposes of cash donation in lieu of park land dedication is $2.60 per square foot, subject to changes in market conditions that warrant an updated appraisal. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 7th day of February, 2023. ___________________________________ CYNTHIA L. ANDRUS 184 Version April 2020 Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 185 AN APPRAISAL REPORT OF: Standard Property Valuation for the City of Bozeman’s Cash in Lieu of Parkland Dedication Process FILE NO.: C113022457 PREPARED FOR: Mr. Mitchell Overton City of Bozeman - Department of Parks and Recreation 415 North Bozeman Avenue Bozeman, MT 59715 PREPARED ON: November 30, 2022 EFFECTIVE DATE OF VALUATION: November 1, 2022 PREPARED BY: Keith O'Reilly, MAI, MT-400 Bridger Appraisals, Inc. P.O. Box 11145 Bozeman, MT 59719 Resolution 5472 Exhibit A 186 2 November 30, 2022 City of Bozeman - Department of Parks and Recreation 415 North Bozeman Avenue Bozeman, MT 59715 Re: Standard Property Valuation for the City of Bozeman's Cash in Lieu of Parkland Dedication Process Dear Mr. Mitchell Overton, Per your request, I have gathered information and completed the following report to establish a standard property valuation on a per square foot basis for all zoning districts within the City of Bozeman. The zoning districts are as follows: Residential Suburban District (R-S), Residential Low Density District (R-1), Residential Moderate Density District (R-2), Residential Medium Density District (R-3), Residential High Density District (R-4), Residential Mixed-Use High Density District (R-5), Residential Office District (R-O), Residential Manufactured Home Community District (RMH), Neighborhood Business District (B-1), Community Business District (B-2), Community Business District-Mixed (B-2M), Downtown Business District (B-3), Urban Mixed-Use District (UMU), Light Manufacturing District (M-1), Manufacturing and Industrial District (M-2), Business Park District (B-P), Northeast Historical Mixed-Use District (NEHMU), Neighborhood Conservation Overlay District (NC), and Residential Emphasis Mixed-Use District (REMU). This report is to be used for the City of Bozeman’s Cash in Lieu of Parkland dedication process. This appraisal is not of one subject property but is rather a compilation of sales of large tracts of land within the City as well as Gallatin County purchased for development purposes. Per city code and state law: Cash donation in-lieu of land dedication shall be equal to the fair market value of the amount of land that would have been dedicated. For the purpose of these regulations, the fair market value is the value of the unsubdivided, unimproved land after it has been annexed and given an urban zoning designation. The city intends to obtain the highest value for cash-in-lieu of park land that is allowable under state law. 187 3 ASSUMPTIONS AND LIMITING CONDITIONS This appraisal report, the letter of transmittal, and certification are subject to the following assumptions and limiting conditions; and also, any special qualifying conditions that may be contained elsewhere in the report are incorporated by reference. Assumptions 1. That the legal description, as furnished, is correct; and that the title to the property is good and marketable. All existing liens and encumbrances, if any, have been disregarded. The property is appraised as though free and clear of other burdens, under responsible ownership and competent management. 2. That the land dimensions taken from available maps, plats, and/or surveys are correct. It has been assumed that those boundaries that are apparent are correct. 3. It is assumed that the use of the land and improvements is confined within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. 4. That no adverse water table or soil conditions exist, and no representation regarding such conditions is made in this report unless specifically stated; and, that the value estimated is predicated on the absence of any such conditions occurring. 5. Those opinions, estimates, data and statistics supplied by others in the course of this study, are correct; the assumption has been made that the sources are reliable, but no responsibility has been inferred for their accuracy. 6. This report does not contemplate any court action, nor does it obligate the appraiser to give any testimony or make any appearance in court, before commission, arbitrator or any other individual, body or agency. If court action or appearance later becomes necessary in the interest of the client, the terms of the additional service shall be negotiated at that time. 7. Unless otherwise stated in this report, the appraiser did not observe the existence of hazardous 188 4 material, which may or may not be present on the property. I have no knowledge of the existence of such materials on or in the property. I am not qualified to detect such substances. The presence of potentially hazardous materials may affect the value of the property. This extends to any leaks from underground fuel storage tanks, and identification of Asbestos containing materials. The value estimate is predicated on the assumption that there is no such material on or in the property. No responsibility is assumed for any such conditions or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. Any such environmental risk discovered at a later date may require a revised estimate of value that may or may not be simply a reduction of the value by the estimated cost to cure the environmental condition. Properties known to have environmental risk may also carry a stigma in the market place that may or may not affect the value. If future soil tests should reveal the existence of any such soil conditions or hazardous waste, I reserve the right to review and adjust this appraisal accordingly. Limiting Conditions: 1. The appraiser is not responsible for any matter legal in character, nor is any opinion rendered as to title, which is assumed to be marketable. 2. The value reflected in the analysis applies only to the program of utilization considered in this report. The use of the value in conjunction with any other appraisal or under other influences invalidates the conclusions developed. 3. This analysis and estimate of value is made for the exclusive use and benefit of the clients to whom it is addressed; and, possession of this report or a copy, does not carry with it the right of publication, nor may it be used for any purpose other than that intended without the previous consent of the appraisers. In any event, only the entire report may be used and no part shall be taken or used out of context. 4. Included as an integral part of this report are maps and photographs of the appraised property and sales. The maps and photographs were prepared and taken by the appraisers, and although they do not purport to represent survey accuracy, they are substantially correct and adequately serve as visual reference to the property. 5. Disclosure of the contents of this report is governed by the By-Laws and Regulations of the Appraisal 189 5 Institute. Neither all nor any part of the contents of this report (especially any conclusions of value, the identity of the appraisers or the firm with which they are connected) shall be disseminated to the public through advertising media, public relations, news media, sales media, or any other public means of communication without the prior written consent and approval of the authors. 6. The forecasts, projections, or operating estimates contained herein are based on current market conditions, anticipated short-term supply and demand factors, and a continued stable economy. These forecasts are, therefore, subject to changes with future conditions. 190 6 SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS Client: Mitchell Overton, City of Bozeman - Department of Parks and Recreation Intended User: City of Bozeman - Department of Parks and Recreation Date of Valuation: November 1, 2022 Date of Preparation: November 30, 2022 Rights Appraised: Fee Simple Highest and Best Use: The highest and best use is not applicable to this appraisal report as the valuation is not of a subject property, but rather a compilation of sales to establish a standard property valuation. 191 7 SCOPE OF THE APPRAISAL The scope of work consists of the amount and type of information researched and analyzed in an assignment. In preparing the appraisal, I have considered pertinent characteristics of the comparable sales in comparison to current market standards. I have gathered information and completed the following report to establish a standard property valuation on a per square foot basis for all zoning districts within the City of Bozeman as previously listed. General and specific data was obtained through personal and telephone interviews with government officials, property managers, developers, and other market participants. I have not considered the highest and best use as it is not applicable to the standard property valuation on a per square foot basis for all zoning districts within the City of Bozeman. I have applied the sales comparison approach valuation method to determine a standard property valuation method on a per square foot basis. This is the only applicable approach to valuing vacant land. The results indicated by this method have been reviewed and reconciled based on the reliability, relevance and reasonableness of the data, and the purpose and intended user of the appraisal. This is an Appraisal Report as defined by Uniform Standards of Professional Appraisal Practice under Standards Rule 2-2. This format provides a summary or description of the appraisal process, subject and market data and valuation analyses. The information contained in this report is specific to the needs of the client and for the intended use as stated in this report. 192 8 PURPOSE AND INTENDED USE AND USER OF THE APPRAISAL The purpose of this appraisal is to estimate a credible opinion of the Current Market Value on a per square foot basis of the Fee Simple Interest for the Residential Suburban District (R-S), Residential Low Density District (R-1), Residential Moderate Density District (R-2), Residential Medium Density District (R-3), Residential High Density District (R-4), Residential Mixed-Use High Density District (R-5), Residential Office District (R-O), Residential Manufactured Home Community District (RMH), Neighborhood Business District (B-1), Community Business District (B-2), Community Business District-Mixed (B-2M), Downtown Business District (B-3), Urban Mixed-Use District (UMU), Light Manufacturing District (M-1), Manufacturing and Industrial District (M-2), Business Park District (B-P), Northeast Historical Mixed-Use District (NEHMU), Neighborhood Conservation Overlay District (NC), and Residential Emphasis Mixed-Use District (REMU) within the City of Bozeman, in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP) and supplemented by the Appraisal Institute. The intended use of the appraisal is to assist the Client and Intended User, City of Bozeman - Department of Parks and Recreation, in establishing a standard property valuation for vacant land on a square foot basis to be used for the City of Bozeman’s Cash in Lieu of Parkland dedication process. There are no other intended users. DEFINITION OF MARKET VALUE Market value is defined as the most probable price, which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is consummation of a sale as of a specified date and passing of title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised, and each acting in what they consider their own best interest; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; 5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 1 1[Source: Section 323.2 amended at 57 Fed. Reg. 9049, March 16, 1992; 59 Fed. Reg. 29501, June 7, 1994] 193 9 PROPERTY RIGHTS APPRAISED Property rights are ownership interests in real estate and have value. It is important to know what property right(s) or estate(s) are involved in the appraisal, because the estate identifies the rights being valued. The subject property rights being appraised is the Fee Simple Interest. Fee Simple: Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat.2 Leased Fee: A freehold (ownership interest) where the possessory interest has been granted to another party by creation of a contractual landlord-tenant relationship (i.e. a lease). 3 VALUATION DATE The effective date of the appraisal is November 1, 2022. This is the date of valuation. The comparable sales reflected in this report are the most current identifiable sales as of the effective date. 2 The Dictionary of Real Estate Appraisal, 5th ed. (Chicago; Appraisal Institute, 2010), p. 78. 3 The Dictionary of Real Estate Appraisal, 5th ed. (Chicago; Appraisal Institute, 2010), p. 111. 194 10 MONTANA REGIONAL AND CITY MAPS Subject Area 195 11 REGIONAL, CITY, AND NEIGHBORHOOD ANALYSIS Bozeman, Montana is located in Gallatin County, in an area more commonly referred to as the Gallatin Valley. This report is for the Client and Intended User, the City of Bozeman – Department of Parks and Recreation. Information regarding the City of Bozeman has not been included as this information is provided from the City of Bozeman and the client and intended user has access to this information. 196 12 THE APPRAISAL PROCESS Typically, real estate can be valued by applying three approaches. All of these approaches to value, (particularly when the purpose of the appraisal is to establish market value) are market data approaches since the data inputs are presumably market derived. Cost Approach: One of the approaches to value commonly applied in Market Value estimates and many other valuation situations. A comparative approach to the value of property or another asset that considers, as a substitute for the purchase of a given property, the possibility of constructing another property that is an equivalent to the original or one that could furnish equal utility with no undue cost resulting from delay. The Valuer's estimate is based on the reproduction or replacement cost of the subject property or asset, less total (accrued) depreciation. The cost approach establishes the value of a real property by estimating the cost of acquiring land and building a new property with equal utility or adapting an old property to the same use with no undue cost due to delay. An estimate of entrepreneurial incentive or developer's profit/loss is commonly added to land and construction costs. For older properties, the cost approach develops an estimate of depreciation including items of physical deterioration and functional obsolescence.4 Sales Comparison Approach: A comparative approach to value that considers the sales of similar or substitute properties and related market data and establishes a value estimate by processes involving comparison. In general, a property being valued (a subject property) is compared with sales of similar properties that have been transacted in the open market. Listings and offerings may also be considered. A general way of estimating a value indication for personal property or an ownership interest in personal property, using one or more methods that compare the subject to similar properties or to ownership interests in similar properties. This approach to the valuation of personal property is dependent upon the Valuer's market knowledge and experience as well as recorded data on comparable items. 5 Income Approach: A comparative approach to value that considers income and expense data relating to the property being valued and estimates value through a capitalization process. Capitalization relates income (usually net income) and a defined value type by converting an income amount into a value estimate. This process may consider direct relationships (whereby an overall capitalization rate or all risks yield is applied to a single year's income), yield or discount rates (reflecting measures or return on investment) applied to a series of incomes over a projected period, or both. The income approach reflects the principles of substitution and anticipation. 6 5 The Dictionary of Real Estate Appraisal, 5th ed. (Chicago; Appraisal Institute, 2010), p. 250. 5 The Dictionary of Real Estate Appraisal, 5th ed. (Chicago; Appraisal Institute, 2010), p. 244. 7 The Dictionary of Real Estate Appraisal, 5th ed. (Chicago; Appraisal Institute, 2010), p. 256 197 13 Comparable Sales The following sales have been used to estimate a value on a per square footage basis. The compiled data represents the most recent known sales of speculative development land within the City of Bozeman and Gallatin County. 198 14 ID 1850 Sale Verification Source Broker Cory Vellinga Address SE Corner Gooch Hill Rd Price $4,000,000 City Bozeman Price per Acre $97,454.00 State MT Financing Cash to Seller Tax ID RGG10212 Property Rights Fee Simple County Gallatin Days on Market 0 Grantor Alan D. Fulton Recording Date 7/2/2021 Grantee Ryan Roller Book/Page or Reference 2739945 Legal Description Acres 41.05 Topography Level Land SF 1,787,920 Zoning Agricultural Suburban Road Frontage --Flood Zone None Dimensions Rectangular Encumbrance or Easement None Utilities NorthWestern Energy Environmental Issues None Access Durston Rd and Gooch Hill Rd Price Per Land SF $2.23 Land Comparable 1 Site There are two approximatle 20 acre parcels totaling 41.045 acres that sold for $4,000,000 cash. The property was not actively listed for sale. The property is at the SE corner of the intersection of Gooch Hill Rd and Durston Rd. The property is not annexed into the City of Bozeman, but is adjacent to the City Limits. This is a prime piece of speculative residential land. The land to the east is already developed residentially. Transaction Tracts 1 and 2 of COS No. 158 located in the NW1/4 of Section 9 Township 2 South, Range 5 East, P.M.M. Gallatin County, MT Sale Comments 199 15 ID 1777 Sale Verification Source Buyer Address TBD West Graf Street Price $7,743,260 City Bozeman Price per Acre $95,000.00 State MT Financing Cash to Seller Tax ID RGG8316 & RGG8318 Property Rights Fee Simple County Gallatin Days on Market None Grantor Diane L. Brawner Revocable Trust Recording Date 9/24/2021 Grantee Bozeman Haus Two LLC Book/Page or Reference Doc 2751910 Legal Description Acres 81.51 Topography Level Land SF 3,550,488 Zoning AS, Agricultural Road Frontage W. Graf St. & S. 27th Ave.Flood Zone None Dimensions Rectangular Encumbrance or Easement None Utilities NorthWestern Energy Environmental Issues None Access W. Graf St. & S. 27th Ave.Price Per Land SF $2.18 Land Comparable 2 Sale Comments Site This is a closed sale of two adjacent 40+/- acre parcels of vacant land in the southern part of Bozeman from a single seller to a single buyer. The eastern parcel is bordered to the north, west, and south by the Bozeman city limits and it is expected that the buyer will pursue annexation and connection to the City of Bozeman water and sewer system. The buyer reportedly plans to develop the sites with multifamily residential improvements. This is considered to be a very attractive speculative development site given its location in the southern part of Bozeman and its adjacency to the Bozeman city limits. This property was not openly marketed and the transaction was privately negotiated between the buyer and the seller. Tract 1 of Certificate of Survey No. 2074 and Tract A of Certificate of Survey No. 1861, tracts of land being the NW 1/4 SW 1/4 and the NE 1/4 SW 1/4, Section 23, Township 2 South, Range 5 East, Gallatin County, Montana. Transaction 200 16 ID 1749 Sale Verification Source Buyer Address NWC S. 19th Ave & Stucky Rd. Price $10,250,000 City Bozeman Price per Acre $105,249.11 State MT Financing Cash to Seller Tax ID RGG40140 Property Rights Fee Simple County Gallatin Days on Market None Grantor Steven R. Aaker Recording Date 12/14/2021 Grantee West University, LLC Book/Page or Reference 2761479 Legal Description Acres 97.39 Topography Level Land SF 4,242,221 Zoning AS, Agricultural Road Frontage Stucky Rd., S. 19th Ave., W. Kagy Blvd. Flood Zone None Dimensions Irregular Encumbrance or Easement None Utilities NorthWestern Energy Environmental Issues None Access Stucky Rd., S. 19th Ave., W. Kagy Blvd. Price Per Land SF $2.42 Land Comparable 3 This is a prime speculative development site located at the intersections of Stucky Road and South 19th Avenue and West Kagy Boulevard and South 19th Avenue. The site is adjacent to the Bozeman city limits making it a likely candidate for annexation into the City of Bozeman and connection to the City of Bozeman water and sewer system. The properties to the north, east, and south of the site have already been annexed into the City of Bozeman. The site will likely be developed into a mixed-use project incorporating commercial development that takes advantage of South 19th Avenue with residential development to the west. The property was not openly marketed. Site Sale Comments Lot 2 of Minor Subdivsion Number 191, located in the SE 1/4 of Section 14, T2S, R5E, P.M.M. Gallatin County, MT. Transaction 201 17 ID 1751 Sale Verification Source Buyer Address TBD Davis Lane Price $8,100,000 City Bozeman Price per Acre $70,009.00 State MT Financing Cash to Seller Tax ID --Property Rights Fee Simple County Gallatin Days on Market -- Grantor The Peter Family Trust Recording Date 6/4/2021 Grantee Virga Venture II LLC Book/Page or Reference 2736653 Legal Description Acres 115.70 Topography Level Land SF 5,039,892 Zoning Ag Road Frontage --Flood Zone None Dimensions Irregular Encumbrance or Easement None Utilities NorthWestern Energy Environmental Issues None Access Davis Lane/Frontage Rd Price Per Land SF $1.61 Sale Comments This is the sale of a speculative development site located in the northwest quadrant of Bozeman. The sale price is $70,009 per acre for non-annexed land adjacent to City services. The purchaser plans on developing the site with high density residential improvements. The purchaser is a very seasoned developer in the Bozeman market. Site Transaction Land Comparable 4 Lengthy Retained in File 202 18 ID 1371 Sale Verification Source Buy-Sell Agreement Address TBD South 19th Avenue Price $10,000,000 City Bozeman Price per Acre $83,600.00 State MT Financing Conventional Tax ID RGG9600 Property Rights Fee Simple County Gallatin Days on Market None Grantor Bozeman Ranch Land, LLC Recording Date 10/30/2019 Grantee Blackwood Land Fund. LC Book/Page or Reference Doc 2662993 Legal Description Acres 119.62 Topography Level Land SF 5,210,522 Zoning See Comments Road Frontage South 19th Avenue Flood Zone None Dimensions Rectangular Encumbrance or Easement None Utilities NorthWestern Energy Environmental Issues None Access South 19th Avenue Price Per Land SF $1.92 Land Comparable 5 Site Transaction This is the sale of a large tract of speculative development land that is located along the eastern side of South 19th Avenue in the southern part of Bozeman. The property is not yet annexed into the City of Bozeman but is bordered on three sides by properties that are annexed. The City of Bozeman is very likely to grant annexation for the property shortly following the sale. The property is currently zoned by the Gallatin County Planning Department as AS, Agricultural Suburban District but the buyer is attempting to achieve an REMU, Residential Emphasis Mixed-Use zoning designation for a majority of the site from the City of Bozeman when it is annexed. Lower density zoning designations will be utilized for areas bordering existing communities. The buyer intends to develop the property into a multi-phase, large-scale mixed-use residential and commercial development. The property is already bisected by a water main for the City of Bozeman water system but the City's preferred sewer main connection is approximately 1,300 feet north of the property at the intersection of South 19th Avenue and Graf Street. However, it is expected that early phases of the development can be connected to smaller sewer lines stubbed at the adjacent Alder Creek Subdivision. There are estimated to be approximately $1,181,000 in off-site improvement costs for the widening of South 19th Avenue and the development of a traffic control light at 19th Avenue and Blackwood Road. The property is located in a Qualified Opportunity Zone which provides for additional potential tax benefits. The property was not openly marketed and the transaction was privately negotiated between the buyer and the seller. Sale Comments The South 1/2 of the Southwest 1/4 of Section 24 and the North 1/2 of the North 1/2 of the Northwest 1/4 of Section 25 in Township 2 South, Range 5 East, Gallatin County, Montana. 203 19 ID 1230 Sale Verification Source Purchaser Address 5250 Baxter Lane Price $8,080,000 City Bozeman Price per Acre $50,374.00 State MT Financing Cash to Seller Tax ID RGG6855 Property Rights Fee Simple County Gallatin Days on Market None Grantor Fern Vesta Anderson Recording Date 6/7/2019 Grantee NWX, LLC Book/Page or Reference 2646897 Legal Description Acres 160.36 Topography Level Land SF 6,985,282 Zoning A-S, Agricultural Road Frontage Baxter Lane & Cottonwood Road Flood Zone None Dimensions Rectangular Encumbrance or Easement None Utilities NorthWestern Energy Environmental Issues None Access Baxter Lane & Cottonwood Road Price Per Land SF $1.16 This property sold on 06/07/2019 for $8,080,000 or $50,374per acre for 160.360 acres. The property went under contract in the early fall of 2018. The property is in the county, but adjacent to the City of Bozeman. The property is bordered to the east by the new Bozeman Sport Complex and to the south by Laurel Glen, a residential subdivsion. This property is also in very close proximity to the new Bozeman High School. The purchaser has applied for annexation into the City of Bozeman and will pursue a high-density REMU and B- 2M zoning designation for the site following annexation. According to the buyer's proforma, off-site improvement costs are estimated to be approximately $4,300,000 or $26,815 per acre. Therefore, the effective acquisition cost for the property inclusive of estimated off-site improvement costs is $12,380,000 or $77,375per acre. This property was not openly marketed and the transaction was privately negotiated between the buyer and the seller. Site Land Comparable 6 Transaction Sale Comments Tract 5 of COS 2552, NE 1/4 of Section 4, Township 2 South, Range 5 East, Gallatin County, Montana. 204 20 205 21 Address City State Date Price Land SF Land SF Unit Price Property Rights Fee Simple 0.0%Fee Simple 0.0%Fee Simple 0.0%Fee Simple 0.0%Fee Simple 0.0%Fee Simple 0.0% Financing Cash to Seller 0.0%Cash to Seller 0.0%Cash to Seller 0.0%Cash to Seller 0.0%Conventional 0.0%Cash to Seller 0.0% Conditions of Sale Arm's Length 0.0%Arm's Length 0.0%Arm's Length 0.0%Arm's Length 0.0%Arm's Length 0.0%Arm's Length 0.0% Expend. After Sale Market Trends Through 11/1/2022 10.0% Location % Adjustment $ Adjustment Acres % Adjustment $ Adjustment Topography % Adjustment $ Adjustment Shape % Adjustment $ Adjustment Utilities % Adjustment $ Adjustment Zoning % Adjustment $ Adjustment Net Adjustments Gross Adjustments $0.00 Ag 0% $0.00 $0.00 115.70 Good $0.00 $0.00 AS, Agricultural Suburban $0.00 0% See Comments $0.00 0% NorthWestern Energy0% $0.00 5,210,522.00 0% $0.00 0% Land Analysis Grid Comp 1 -- 9/24/202111/1/2022 7/2/2021 $7,743,260$4,000,000 $10,250,000 3,550,488.00 $2.18 6,985,282.00 6/7/201910/30/2019 $10,000,000 TBD South 19th Avenue Bozeman 13.6% 0% $2.56 0% $1.84 Good $1.60 0% 14.4% $1.92$1.61 38.3% $1.16 33.2% 41.05 0% Adjusted Land SF Unit Price $2.54 $0.00 Good 0% Level $0.00 $0.00 NorthWestern Energy NorthWestern Energy 0% 97.39 NorthWestern Energy $0.00 $0.00 0% 81.51 $0.00 0% $0.00$0.00 $0.00 Level $0.00 33.2% Good 119.62 $0.00 Irregular $0.00 Level 0% 0% $0.00 NorthWestern Energy 0% $0.00 0% Level $0.00 NorthWestern Energy $0.00 Rectangular 33.2% $1.92 $0.00 MTMT $8,080,000 $0.00 $1.16 0% $0.00 0% $0.00 Rectangular 0% 160.36 0% Level $0.00 0% $8,100,000 $0.00 $0.00 $1.61 5,039,892.00 Level 0% $2.63 0% 0% 11.1% $2.42 $2.18 Good $0.00 0% $0.00 0% $0.00 Rectangular 0% 0% 0% $0.00 Irregular MT 6/4/2021 Comp 3 Bozeman 5250 Baxter Lane Comp 4 Comp 5 Comp 6 MT Bozeman NWC S. 19th Ave & Stucky Rd. TBD Davis LaneSE Corner Gooch Hill Rd and Durston Rd TBD West Graf Street Bozeman Comp 2 MT 0% $0.00 Rectangular 0% Agricultural Suburban $0.00 0%0% AS, Agricultural Suburban $0.00 0% A-S, Agricultural Suburban 8.8% Good $2.42 Bozeman MT $2.42 4,242,221.00 Transaction Adjustments 1,787,920.00 Bozeman $2.24 12/14/2021 $0.00 Adjusted Land SF Unit Price $2.24 38.3% 38.3% Adjusted Land SF Unit Price $2.63 13.6% $2.54 $1.60$1.84 14.4% $2.42 8.8%11.1% 11.1%8.8% 14.4%13.6% $2.56 $0.00 $0.00 The provided sales give a good indication of the per square foot valuation for vacant land in the City of Bozeman. This valuation is for all zoning districts within the City of Bozeman. Sales 1 through 4 are the most current, while Sales 5 and 6 are older. However, all fit the criteria and definition for the Cash in Lieu program. Sale 1 is located adjacent to the city limits. This property was not annexed and has not applied for annexation yet, but likely will be annexed before being developed. Sales 2, 3, and 4 were not annexed at the time of sale, but all have since applied for and are in the process of annexation. Sale 5 was annexed in after purchase and Sale 6 had approval to be annexed into the City at the time of sale. Sales 5 and 6 are currently being developed with a mix of commercial and residential development. Sale 2 is expected to be primarily residential, and Sales 3 and 4 will likely be a mix of commercial and residential. Sale 6 is the largest available sale at 160 acres, with Sales 2, 3, 4, and 5 between 80 acres and 120 acres. Sale 1 is the smallest at approximately 41 acres. Typically, the larger the site, the lower the value per acre/square foot, and the smaller the site, the higher the value per acre/square foot; however, 206 22 the adjusted values from Sales 1, 2, 3, and 5 are all very consistent between $2.42 per square foot and $2.63 per square foot. Sales 1, 2, and 3 are recent sales. There have been very limited sales of larger sales of development sites located within the city limits in recent years, but four recent sales of development sites located adjacent or near the edge of the city limits were included. Three of these are in the annexation process. In addition, I have confirmed two confidential sales, one of a moderately sized development piece annexed into the City of Bozeman, and one of a larger development piece annexed into the City of Belgrade. While the Belgrade piece would obviously not be a candidate for cash in lieu through the City of Bozeman, it fits the cash in lieu criteria and has been given consideration as additional support to the overall reconciled value. The pending sale from Bozeman is annexed into the City and zoned R-1 and R-2. The site contains approximately 35 acres and the buyer confirmed the purchase price is approximately $115,000 per acre or $2.64 per square foot. The confidential sale from Belgrade was approximately 239 acres of annexed land with a commercial zoning. The buyer reported this sale sold for approximately $117,000 per acre or $2.69 per square foot. At the time of this purchase, this was the highest price paid on a per acre basis for a larger speculative development site located in or near Belgrade or Bozeman. Market conditions are currently changing due to a significant increase in interest rates. The market peaked in the early spring of 2022, and market conditions began to change in the summer to early fall of 2022. Currently, days on the market have been extended and there is much less competition to purchase speculative development land. There are simply not enough sales of this type of property to graph or show the increase and then likely decline in values. Based upon the preceding sales and analysis of current market conditions, I would estimate the per square foot value for vacant land in the Residential Suburban District (R-S), Residential Low Density District (R-1), Residential Moderate Density District (R-2), Residential Medium Density District (R-3), Residential High Density District (R-4), Residential Mixed-Use High Density District (R-5), Residential Office District (RO), Residential Manufactured Home Community District (RMH), Neighborhood Business District (B-1), Community Business District (B-2), Community Business District-Mixed (B-2M), Downtown Business District (B-3), Urban Mixed- Use District (UMU), Light Manufacturing District (M-1), Manufacturing and Industrial District (M-2), Business Park District (B-P), Northeast Historical Mixed-Use District (NEHMU), Neighborhood Conservation Overlay District (NC), and Residential Emphasis Mixed-Use District (REMU) within the City of Bozeman to be $2.60psf or between $110,000 and $115,000 per acre as of November 1, 2022. While there is a broad range of zoning districts, there is not enough data available to support a different reconciled land value for a low density zoning versus 207 23 a high density or commercial zoning. The overall reconciled value per square foot is supportable across all larger speculative development parcels. If I can be of further assistance, please do not hesitate to contact me. Sincerely, Keith O’Reilly, MAI General Certified Appraiser State of Montana #400 208 24 CERTIFICATION As a result of a request for an appraisal assignment of the property, identified as: Standard Property Valuation for the City of Bozeman's Cash in Lieu of Parkland Dedication Process I certify: To the best of my knowledge and belief the statements of fact contained in this report are true and correct. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. My engagement in this assignment was not contingent upon developing or reporting predetermined results. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice and the requirements of the Code of Professional Ethics and Standard of the Professional Appraisal Practice of the Appraisal Institute. The use of this report is subject to the requirements of the Appraisal Institute relating to its duly authorized representatives. As of the date of this report, I, Keith O’Reilly, MAI, have completed the continuing education program of the Appraisal Institute. Heidi Switzer provided significant real property appraisal assistance to the person signing this certification, including market research and input as to the final reconciled value. Respectfully Submitted, Keith O’Reilly, MAI General Certified Appraiser #400 State of Montana 209 Bridger Appraisals Inc. © Keith O’Reilly, MAI ADDENDUM 210 Bridger Appraisals Inc. © Keith O’Reilly, MAI 211 Bridger Appraisals Inc. © Keith O’Reilly, MAI 212 Memorandum REPORT TO:City Commission FROM:Tom Rogers, Senior Planner Anna Bentley, Community Development Director SUBJECT:Continue the Public Hearing for a Zone Text Amendment to Modify the City’s Development Code to Restrict Greek Letter Organizations (GLOs) to the R-4, R-O, B-2, B-3, REMU Zoning Districts as Principal Uses, and Conditionally in the R-3 Zoning District, Application 22270 to April 4, 2023. MEETING DATE:February 7, 2023 AGENDA ITEM TYPE:Community Development - Legislative RECOMMENDATION:I move to continue the public hearing for review of application 22270 to April 4, 2023. STRATEGIC PLAN:4.2 High Quality Urban Approach: Continue to support high-quality planning, ranging from building design to neighborhood layouts, while pursuing urban approaches to issues such as multimodal transportation, infill, density, connected trails and parks, and walkable neighborhoods. BACKGROUND:The Community Development Board acting in their capacity as the Zoning Commission began their consideration of the application on January 23, 2023 and voted tp continue their hearing to February 13, 2023. State law requires that the Zoning Commission forward a recommendation to the City Commission before the City Commission can consider the application. UNRESOLVED ISSUES:None ALTERNATIVES:As determined by the Commission. FISCAL EFFECTS:None Report compiled on: January 30, 2023 213 Memorandum REPORT TO:City Commission FROM:Danielle Garber, Associate Planner Anna Bentley, Community Development Director SUBJECT:Northwest Crossing Phase 2 Preliminary Plat Application, to Subdivide Five Restricted Development Lots Platted with Northwest Crossing Phase 1 into 264 Developable Lots with Associated Stormwater, Open Space, City Park, Easements, and Right-of-way, Located Southwest of the Corner of Baxter Lane and North Cottonwood Road, Application 22129 (Quasi-Judicial) MEETING DATE:February 7, 2023 AGENDA ITEM TYPE:Community Development - Quasi-Judicial RECOMMENDATION:I move to approve the Northwest Crossing Phase 2 Preliminary Plat application with staff recommended conditions of approval and code provisions. STRATEGIC PLAN:4.2 High Quality Urban Approach: Continue to support high-quality planning, ranging from building design to neighborhood layouts, while pursuing urban approaches to issues such as multimodal transportation, infill, density, connected trails and parks, and walkable neighborhoods. BACKGROUND: A major preliminary plat subdivision application of 43.98 acres to subdivide five (5) restricted development lots from Phase 1 of Northwest Crossing Subdivision into two hundred and sixty four (264) developable lots zoned REMU, thirteen (13) stormwater lots, eighteen (18) open space lots, three (3) city park lots, easements, and associated right of way. The subdivision is proposed to be completed in four phases. The subject property is zoned REMU, Residential Emphasis Mixed Use, and the underlying growth policy designation is Residential Mixed Use. The proposed uses of townhouses, small lot single household, and single household are allowed within the REMU zoning district. The application is also proposing to utilize courtyard access lots in in clusters of five homes consistent with BMC 38.410.030. On January 3, 2023 the Development Review Committee (DRC) found the application sufficient for continued review and recommends the conditions and code provisions identified in the staff report. On January 23, 2023 the Community Development Board acting in their 214 capacity as the Planning Board voted 6-0 unanimously to recommend approval of the application with conditions and code provisions. The primary responsibility of the Planning Board in subdivision review is to comment on compliance of the proposed plat with the growth policy. A video of the meeting can be found here: https://bozeman.granicus.com/player/clip/1945?meta_id=45721 The subdivider requested review of this subdivision under the terms of 76-3- 623 MCA as authorized in 38.240.100. Subdivisions reviewed under the terms of 76-3-623 may not include variances or other instances of lack of compliance to standards and procedures. The subdivider did not request any subdivision or zoning variances with this application, and no waivers were granted with the pre-application review. The final decision for this preliminary plat must be made by February 7, 2023 Materials in the submittal relevant to the Planning Board’s duties include: Application Narrative Application Documents Application Plans The application documents folder will contain the infrastructure reports including water, sewer, stormwater, and traffic impacts, as well as documentation to demonstrate compliance with Chapter 38 including compliance with adopted standards required in BMC 38.220.060. The application plans folder will contain the full plat set of 14 sheets, proposed landscaping plans, proposed park plans, lighting plans, and street and road plans. UNRESOLVED ISSUES:None ALTERNATIVES:1. Approve the application with the recommended conditions; 2. Approve the application with modifications to the recommended conditions; 3. Deny the application based on the Commission’s findings of non- compliance with the applicable criteria contained within the staff report; or 4. Continue the public hearing on the application, with specific direction to staff or the subdivider to supply additional information or to address specific items. FISCAL EFFECTS:Fiscal impacts are undetermined at this time, but will include increased property tax revenues from new development, along with increased costs to delivery municipal services to the property. Impact fees will be collected at the time of building permit issuance for individual buildings along with City sewer and water connection fees. 215 Attachments: 22129 Staff Report.pdf Report compiled on: January 26, 2023 216 Page 1 of 31 22129 Staff Report for the Northwest Crossing Phase 2 Subdivision Preliminary Plat Public Meeting/Hearing Dates: Planning Board meeting - Monday, January 23, 202 at 6:00 pm. City Commission hearing will be held Tuesday, February 7, 2023 at 6:00 pm Project Description: A major preliminary plat subdivision application of 43.98 acres to subdivide five (5) restricted development lots from Phase 1 of Northwest Crossing Subdivision into two hundred and sixty four (264) developable lots zoned REMU, thirteen (13) stormwater lots, eighteen (18) open space lots, three (3) city park lots, easements, and associated right of way. Project Location: The property is legally described as Restricted Lots 1-5 of Phase 1 of Northwest Crossing Subdivision, Situated in the NE ¼ of Section 4, Township 2 South, Range 5 East, Principal Meridian, City of Bozeman, Gallatin County, Montana. Staff Finding: The application conforms to standards and is sufficient for approval with conditions and code provisions. Recommended Planning Board Motion: Having reviewed and considered the application materials, public comment, and all the information presented, I hereby adopt the findings presented in the staff report for application 22129 and move for the Community Development Board in its capacity as the Planning Board to recommend approval of the subdivision with conditions and subject to all applicable code provisions. Recommended City Commission Motion: Having reviewed and considered the application materials, public comment, and all the information presented, I hereby adopt the findings presented in the staff report for application 22129 and move to approve the subdivision with conditions and subject to all applicable code provisions. Report Date: January 26, 2023 Staff Contact: Danielle Garber, Associate Planner Griffin Nielsen, Project Engineer Agenda Item Type: Action (Quasi-judicial) EXECUTIVE SUMMARY This report is based on the application materials submitted and public comment received to date. The application materials are available in the City’s Laserfiche archive and may be accessed through the Community Development viewer as well. No public comments have been received as of the writing of this report. Should written public comments be received they will be included in the City’s Laserfiche archive and available to the public. 217 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 2 of 31 Unresolved Issues. There are no unresolved issues with this application. Project Summary The Department of Community Development received a Preliminary Plat Application on April 18, 2022 requesting to subdivide 43.98 acres to create two hundred and sixty four (264) developable lots zoned REMU (Residential Emphasis Mixed Use), thirteen (13) stormwater lots, eighteen (18) open space lots, three (3) city park lots with easements and associated right of way. The subdivision is proposed to be completed in four phases. The first phase at the southeast corner of the site, following by the second to the north and then moving east to west and north to south for phases three and four. A 1.15 acre linear park and playground along Harvest Parkway is proposed with Phase 1, with a 0.06 acre open space connecting the park to Cottonwood Road. This east-west park connector will connect the park following Baxter Ditch on the west side of the proposed development east and west to the Sports Park, and is consistent with the master park plan approved with the master site plan, application no. 19440, and the approved master site plan modification, application no. 22200. A 0.83 acre park central to the development is proposed with phase 2. The platted park from Phase 1 on the east side of Baxter Ditch and on the west side of the proposed subdivision will also be developed with this application in accordance with the master park plan. Phase 1 contains Blocks 9 and a portion of blocks 11 and 8. Land uses for phase 1 are to be small lot single household and townhomes in two attached configurations. Phase 2 is proposed to continue those uses with the addition of courtyard access lots consistent with BMC 38.410.030, and will consist of Block 6, Block 5, and the remainder of blocks 11 and 8. Phase 3 proposes to also continue the small lot single household, courtyard access lots, and two-attached townhomes, with the addition of some larger single household lots, and two large 1-3.5 acre lots in block 2 near the corner of Baxter Lane and the future Cottonwood Road intersection that are currently proposed as townhomes and will be subject to subsequent site plan review. Phase 3 will also contains blocks 1, 3, and 4. Phase 4 is proposed as blocks 7 and 10, and will consist of small lot single household uses. REMU zoning allows for small lot single household and single household lots to range from 2,500 square feet to 4,000 square feet in minimum size, as well as townhouse/rowhouse and two- four household dwellings to be developed with no lot size minimums. Phases 1-4 will extend Rosa Way, Twin Lakes Avenue, and Dayspring Avenue that were platted with phase 1 to the north into phase 2. New east-west roads are currently proposed to be named Dayspring Avenue, Touchstone Lane, and Briarwood Lane. Development of this subdivision is dependent on transportation and infrastructure construction of Cottonwood Rd. north to its intersection with Baxter Lane, as well as improvements to Baxter Lane. 218 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 3 of 31 On January 3, 2023 the Development Review Committee (DRC) found the application sufficient for continued review and recommends the conditions and code provisions identified in this report. The subdivider did not request any subdivision or zoning variances with this application. The City did not receive any written public comment on the application as of the writing of this report. The final decision for this preliminary plat must be made by February 7, 2023. The Community Development Board acting in their capacity as the Planning Board considered compliance of the application with the growth policy on January 23, 2023 and recommended approval unanimously 6-0. The Board’s discussion focused on the proposed range of proposed lot types and uses and the potential to add density at a smaller scale in proximity to a proposed commercial node. Alternatives 1. Approve the application with the recommended conditions; 2. Approve the application with modifications to the recommended conditions; 3. Deny the application based on the Commission’s findings of non-compliance with the applicable criteria contained within the staff report; or 4. Continue the public hearing on the application, with specific direction to staff or the subdivider to supply additional information or to address specific items. 219 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 4 of 31 TABLE OF CONTENTS EXECUTIVE SUMMARY ............................................................................................................ 1 Unresolved Issues. .............................................................................................................. 2 Project Summary ................................................................................................................. 2 Alternatives ......................................................................................................................... 3 SECTION 1 – MAP SERIES .......................................................................................................... 5 SECTION 2 – REQUESTED VARIANCES ............................................................................... 10 SECTION 3 – RECOMMENDED CONDITIONS OF APPROVAL .......................................... 10 SECTION 4 – CODE REQUIREMENTS ................................................................................... 11 SECTION 5 – RECOMMENDATION AND FUTURE ACTIONS ............................................ 17 SECTION 6 – STAFF ANALYSIS and findings ......................................................................... 17 Applicable Subdivision Review Criteria, Section 38.240.150.B, BMC. .......................... 18 38.220.060 Documentation of compliance with adopted standards ................................. 22 APPENDIX A – PROJECT SITE ZONING AND GROWTH POLICY..................................... 26 APPENDIX B – DETAILED PROJECT DESCRIPTION .......................................................... 30 APPENDIX C – NOTICING AND PUBLIC COMMENT ......................................................... 30 APPENDIX D – OWNER INFORMATION AND REVIEWING STAFF ................................. 30 FISCAL EFFECTS ....................................................................................................................... 31 ATTACHMENTS ......................................................................................................................... 31 220 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 5 of 31 SECTION 1 – MAP SERIES Exhibit 1 – Zoning 221 Page 6 of 31 Exhibit 2 – Community Plan 2020 Future Land Use 222 Page 7 of 31 Exhibit 3 – Vehicular Circulation Exhibit 4 – Pedestrian Circulation 223 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 8 of 31 Exhibit 5 – Preliminary Plat (see full series in file) Exhibit 6 – Phasing Plan 224 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 9 of 31 Exhibit 7 – Landscaping Plan (see full series in file) 225 Page 10 of 31 SECTION 2 – REQUESTED VARIANCES The subdivider did not request any subdivision or zoning variances with this preliminary plat application. SECTION 3 – RECOMMENDED CONDITIONS OF APPROVAL Please note that these conditions are in addition to any required code provisions identified in this report. These conditions are specific to this project. Recommended Conditions of Approval: 1. The plat shall conform to all requirements of the Bozeman Municipal Code and the Uniform Standards for Subdivision Plats (Uniform Standards for Certificates of Survey and Subdivision Plats (24.183.1104 ARM) and shall be accompanied by all required documents, including certification from the City Engineer that as-built drawings for public improvements were received, a platting certificate, and all required and corrected certificates. The Final Plat application shall include three (3) signed reproducible copies on a 3 mil or heavier stable base polyester film (or equivalent). The Gallatin County Clerk & Recorders office has elected to continue the existing medium requirements of 2 mylars with a 1 binding margin on one side for both plats and COSs. The Clerk and Recorder will file the new Conditions of Approval sheet as the last same sized mylar sheet in the plat set 2. The applicant shall submit with the application for Final Plat review and approval, a written narrative stating how each of the conditions of preliminary plat approval and noted code provisions have been satisfactorily addressed. This narrative shall be in sufficient detail to direct the reviewer to the appropriate plat, plan, sheet, note, covenant, etc. in the submittal. 3. Simultaneously with filing of the final plat, in conjunction with required or offered dedications, the subdivider (or owner of the property being subdivided if the owner is not the subdivider) shall transfer ownership to the property owners’ association of any open space proposed to be conveyed to the property owners’ association and all its right, title, and interest in any improvements made to such parkland or open space. For the transfer of real property, the subdivider or owner of the property shall submit with the application for final plat a warranty deed or other instrument acceptable to the City Attorney transferring fee simple ownership to the property owners’ association and associated realty transfer certificate. The subdivider or owner of the property must record the deed or instrument at the time of recording of the final plat. For personal property installed upon open space owned by the property owners’ association, the subdivider shall provide an instrument acceptable to the City Attorney transferring all its rights, title and interest in such improvements including all applicable warranties to such improvements. 226 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 11 of 31 4. The applicant is responsible for updating required documents within the Northwest Crossing Phase 1 design guidelines including parkland and non-residential uses with the phase 2 final plat. These design guidelines are associated with the approved master site plan, application no. 19440, and the approved master site plan modification, application no. 22200. 5. Right-of-way must be dedicated for the portion of the Baxter Lane Public Street and Utility Easement directly adjacent to the subdivision with the final plat. SECTION 4 – CODE REQUIREMENTS 1. Sec. 38.100.080 – Compliance with regulations required. The applicant is advised that unmet code provisions, or code provisions that are not specifically listed as conditions of approval, does not, in any way, create a waiver or other relaxation of the lawful requirements of the Bozeman Municipal Code or state law. 2. Sec. 38.410.060. - Easements. a. All Easements indicated below must be provided on city standard easements templates. Drafts must be prepared for review and approval by the city. Signed hard copies of the easements must be submitted to the City prior final plat approval. The applicant may contact the review engineer to receive standard templates. b. The applicant must provide a ten foot utility easement (power, gas, communication, etc.) along the developments property frontage. c. The applicant must provide a storm drainage easement along the proposed storm sewer main and detention facility. d. The final plat must provide all necessary utility easements and they must be described, dimensioned and shown on each subdivision block of the final plat in their true and correct location. e. Easements must be provided using the City’s standard language for all temporary turnaround used between phases. f. Easements must be provided using the City’s standard language for any temporary stormwater facilities used between phases. g. The required easements for the dewatering system must meet the criteria: i. Be sufficiently sized to allow for the long-term maintenance and operation of the system. A width of 10 feet is required at all locations with additional width dedicated as required. ii. Include language restricting the construction of structures within the easement. iii. Be shown on the final plat. iv. Allow for access from the property owners of the northwest crossing phase 1 subdivision. 3. Sec. 38.410.130 - Water Adequacy. a. Subject to subsections B and C, prior to final approval by the review authority of development occurring under this chapter or chapter 10, the applicant must offset the entire estimated increase in annual municipal water demand attributable to the development pursuant to subsection D. 227 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 12 of 31 i. The cash-in-lieu of water rights fee for the Block 2 multifamily lots should be deferred to future development. To allow this a note reviewed and approved by City staff must be included in the conditions of approval sheet providing notice to future owner that a future payment of cash-in- lieu of water rights is required upon future development for the specifically lots. 4. Sec. 38.220.060.A.13 – Documentation of compliance with adopted standards. For final plat, the applicant must update the purpose and area summary on the plat for the number of lots by type, and acres by use, to reflect the change to open space of tract 17 along Harvest Parkway from a park parcel to an open space parcel. 5. Sec. 38.220.020.A – Streambed, Streambank, and/or Wetlands Permits. The applicant must contact the Gallatin County Conservation District, Montana Department of Environmental Quality, and U.S. Army Corps of Engineers regarding the proposed project and any required permits (i.e., 310, 404, Turbidity exemption, etc.). Any required permits must be obtained by the applicant and provided to the Community Development Department prior to construction and final plat approval. 6. Sec. 38.400.010.A.2 – Street, General. a. Baxter Lane is a minor arterial street as identified in the City’s Transportation Master Plan (TMP) as such must be fully completed to ensure the convenient and reliable movement of City wide traffic and effective access for emergency services for both the proposed development and the community as a whole. Baxter Lane must be constructed from Cottonwood Road to the western boundary of the subdivision prior to final plat approval for the subdivision. Right-of-way must be dedicated for the portion of the Baxter Lane Public Street and Utility Easement directly adjacent to the subdivision with the final plat. b. Cottonwood Road is a principal arterial street as identified in the City’s Transportation Master Plan (TMP) as such must be fully completed to ensure the convenient and reliable movement of City wide traffic and effective access for emergency services for both the proposed development and the community ty as a whole. Cottonwood Road must be constructed from Oak Street to Baxter Lane prior to final plat approval for the subdivision. Right-of-way must be dedicated for the portion of the Cottonwood Road Public Street and Utility Easement directly adjacent to the subdivision with the final plat. 7. Sec. 38.400.070. and BMC 38.270.030.B.3 – Street Lighting. Subdivision lighting SILD information shall be submitted to the Clerk of Commission after Preliminary Plat approval in hard copy and digital form. The final plat application will not be deemed complete until the resolution to create the SILD has been approved by the City Commission. The initial adoption of the special improvement lighting district shall include the entire area of the preliminary plat and including lighting along Baxter Lane and Cottonwood Road. 8. Sec. 38.400.040.A.2 – Street Names. Street names must be reviewed and approved by the County’s geographic information systems and City Engineering Department prior to 228 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 13 of 31 final plat approval. The applicant must submit written approval from both entities with the final plat application. 9. Sec. 38.410.070.A. – Municipal Water, Sanitary Sewer, and Storm Sewer System. a. The City’s Water Facility Plan calls for a 36 main (identified as the West Transmission Main) down Baxter Lane to support growth along City’s western flank and reduce head loss across the City’s existing system. The main must be installed prior to the construction of Baxter Lane and final plat approval for the subdivision. b. The subdivision is reliant upon the extension of the 21 wastewater main along Baxter Lane which will serve in place of the 15 main currently identified in the City’s Wastewater Facility Plan (WWFP). The main must be installed prior to final plat approval for the subdivision and subsequent construction of Baxter Lane and the intersection of Cottonwood Road and Baxter Lane. c. The City’s Wastewater Facility Plan (WWFP) calls for a 15 main (identified as the Aajker Creek Diversion) to service both the subject property as well as future growth to the southwest. The main must be installed to the edge of the development land prior to the final plat approval of the subdivision and a City standard public easement granted for any remaining section of main falling within the future phase of the northwest crossing development including remaining lots. d. All fire hydrants must be located within public ROW or a City water main easement. The hydrant must be a minimum of 9 feet from the edge of the ROW or easement, per DSSP SectionV.D.5 10. Sec. 38.410.070 – Municipal Water, Sanitary Sewer, and Storm Sewer System. a. With the infrastructure submittal, the water report must model the phase development of the subdivision. Additionally, the design engineering must evaluate based on the City’s per capita demand of 170gallons per day per person. b. With the infrastructure submittal, the sewer report must model the phase development of the subdivision and include flows from the areas outside the study area which will naturally be served by the gravity main. The 21 Main must be designed to accept flow from the Laurel Glen lift station per Condition of Approval no. 28 of the Northwest Crossing Master Site Plan, Application No. 19440. c. Due to the high groundwater and increased rate of corrosion within the clay soils all water mains must have additional cathodic protection. A minimum of V-bio polywrap or approved equal is required by the City. 11. Sec. 38.410.120 – Mail Delivery. Mailbox unit locations must be approved by the USPS prior to final plat approval. 12. Sec. 38.240.530 – Certificate of Water Related Improvements. A well, including equipment and associated permitting, used for public irrigation must be transferred to the City or POA as applicable. A certificate of water related improvements is required per Section 38.240.530. Any financially guaranteed water related improvements agreements must include a warranty of workmanship. 229 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 14 of 31 13. Sec. 38.410.060 – Agricultural Water User Easements. a. BMC 38.410.060.D.4 - Stormwater from the development may not be discharged to an agricultural water user facility without written approval from the owner of the facility and corresponding stormwater conveyance easement(s). Any required stormwater conveyance easements shall be provided prior to final plan approval. b. BMC.38.410.060.D.6. - A notice must be recorded with the final plat stating that the agricultural water user facility easement are subject to the requirements of Section 70-17-112, MCA restricting interference with canal or ditch easements and that irrigation works are subject to Section 85-7-2211 and 85-7-2212, MCA regarding duties and liability. The notice must include language to assure the duties are binding upon all successors in interest and remain in effect until such time that the agricultural water user facility is abandoned in accordance with the requirements of Montana Law or alternative requirements are agreed to in writing by all applicable parties. The easements must be prepared as documents separate from a final plat but may be referenced on a final plat. 14. Sec. 38.270.070. and Sec. 38.400.010.A.2 – Payment for Extension of Capital Facilities. a. Cottonwood Road, from Oak Street to Baxter Lane, and the intersection of Cottonwood and Baxter are currently identified in the City’s Capital Improvement Program (CIP No. SIF138) and scheduled for construction in FY2023. The developments full local share must be provided in the form of a cash-in-lieu of infrastructure payment made to the City prior to final plat approval. The developments local share amount must be confirmed at the time of final plat using the most current costs for the project. 15. Sec. 38.420.020 – Park area requirements, Sec. 38.420.030 – Cash donation in-lieu of land dedication, and Sec. 38.420.080 – Park Development. a. Include parkland phasing on the F - Phasing Plan that matches the parkland phasing shown on PK100. Parkland included in each phase is required to be installed prior to final plat approval. b. Include cut sheets of all proposed amenities such as playgrounds, benches, trash receptacles, and etc. to be reviewed and approved by Parks. c. Resolution 4784 - CILP has not been approved to meet parkland requirements as outlined in the Park Master Plan. Since there is a deficit in IILP proposed, parkland amenities should be adjusted to meet the required IILP amount. PROST recommends a variety of recreation opportunities within parklands. Since this subdivision already contains several playgrounds, parks recommends replacing a playground with a pickle ball facility to meet the remaining IILP while following PROST guidelines. d. The applicant must update the parkland tracking table to reflect the appraisal value in effect at the time of final plat application. e. The following notes must be added final plat: Snow removal from sidewalks within parks that serve as primary egress from private lots is the responsibility of the property owners’ association 230 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 15 of 31 f. A preconstruction meeting with the Park Division is required prior to any site work. Applicants must provide the most recent park plans with revisions red-lined and request meeting at least 30 days prior to commencement of parkland construction. g. Easements for trails within open space parcels must include agreement to utilize city-wide wayfinding and allow parks staff to install and/or repair wayfinding. 16. Sec. 38.410.100.A.2.f – Watercourse Setback. The boundaries of park development should include the east half of Baxter ditch to consolidate construction of improvements. The applicant must include plans of watercourse plantings to be installed east of Baxter ditch for staff review with final plat. 17. Sec. 38.410.080. - Stormwater Management. Per the approved Master Site Plan (Application No. 19440) condition of approval no. 24. Low Impact Design (LID to mitigate stormwater must be issued within the REMU zoning district. The design engineer must certify that LID infrastructure is being implemented through the development and explain how with the stormwater infrastructure review. The City encourages the design team to consider the Montana Post-Construction Stormwater BMP Design Guidance Manual when designing the stormwater and drainage system. 18. Sec. 38.270.050.A.2 – Acceptance of improvements. During construction, if groundwater is found to be at levels exceeding what is described in the drainage report and limits the functionality of the stormwater infrastructure the City will not accept the stormwater infrastructure. If the stormwater infrastructure requires significant redesign it may be considered a material modification from the preliminary plat and require re- review and approval of the preliminary plat. 19. Sec. 38.410.080. - Grading and Drainage. a. The stormwater system must be designed and situated to allow for reasonable operation and maintenance including the replacement of the system. Placement of the sub-surface storage systems directly abutting the fee simple lots does not allow for the operation and maintenance of the system without impacting the adjacent lots. The applicant must work with the engineering department to ensure adequate measures have been taken prior to final approval to allow for reasonable operation and maintenance. b. The stormwater report and plat indicates certain open space parcels will contain a surface retention pond for stormwater. The landscaping plan must include landscaping compliant with BMC 38.410.080 including a cross section of each facility on each open space lot designated for stormwater retention. c. The applicant must provide a maintenance plan for the dewatering system include the maintenance plan in the property owners’ association documents prior to final plat approval. The plan must include the long term maintenance instructions for the property owners’ association. 20. Sec. 38.600.040 Floodplain Regulations. Abandonment of the eastern lateral of Baxter Ditch increases flow to the western leg of Baxter Ditch. The proposed alterations, as described with the flood hazard analysis, to accommodate the 100-year event on Baxter 231 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 16 of 31 Ditch must be completed prior to the abandonment of the eastern ditch lateral as well as any required mitigation downstream along Baxter Creek and ensure no adverse impact to downstream property owners. The alteration to Baxter Ditch must be reviewed through the City’s infrastructure review process in addition to obtaining all other permits required from outside agencies and the adjacent property owner. Any alterations proposed within the public right-of-way required the approval of the City Engineer. 21. Sec. 38.600.050. - Floodplain Regulations. The flood hazard report finds that floodwater could reach elevations of proposed lots based on existing topography. To mitigate the flood hazard due to existing topography, the report recommends fill be placed to keep the floodwater contained within the confines of the 20 feet of the wetland setback, the elevation of the structure to a minimum of two feet and sidewalk one foot above the identified floodwater surface elevation. The fee simple lots may not be final platted without completion of the mitigation. Sidewalks must be constructed per the recommendation. Finally, the plat must contain a note that the structure should be elevated two feet above identified floodwater surface elevation and provided recommended finished floor elevations for lots adjacent to Baxter Ditch. 22. Sec. 38.410.030.E.1 – Corner Lots and Building Orientation. This conceptual layouts provided in the property owners’ association documents will need to show an example of lots fronting off a greenway open space corridor like the interior of the two-household townhome lots in Block 1. The conceptual layout should show an example of the front door connecting to the greenway sidewalk and a fencing example indicating a front yard fence of 4-feet on all sides. Homes on corner lots must have the same orientation as homes on lots on the interior of the block. 23. Sec. 38.410.030.D – Courtyard Access Lots. Respond to the criteria in this section with final plat, and demonstrate that the required maintenance agreement for all the courtyard accesses in blocks 4 and 5 is satisfied. 24. Sec. 38.270.030.D – Exception for concurrent construction. In certain circumstances, the issuance of a building permit may be allowed prior to completion of the public infrastructure, provided that the criteria listed in this section are met. Provide concurrent construction approval prior to final plat approval as well as appropriate improvements agreement applications for required infrastructure and landscaping. 25. Sec. 38.400.090 – Access. a. A 1 foot No Access strip shall be placed along Baxter Lane frontage of Blocks 1 and 2 of the development. b. A 1 foot No Access strip shall be placed along the Cottonwood Road frontage of Blocks 6, 9, and 13 of the development. c. A 1 foot No Access strip shall be placed along the Touchstone Lane frontage of Blocks 6 and 9 of the development. d. A 1 foot No Access strip shall be placed along the Harvest Parkway frontage of Block 9 of the development. e. A 1 foot No Access strip shall be placed along the frontages of Rosa Way and Twin Lakes Avenue for 150 ft. starting from their intersections from Baxter Lane. 232 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 17 of 31 26. Sec. 38.410.130 and Sec. 38.420.080.A.2 – Water Adequacy and Park Development. All irrigation wells located within the boundaries of the development shall include Montana DNRC certificates which shall be provided to the City with the final plat submittal. Ownership of any well and associated water right within common open space owned by the property owners’ association shall be transferred to the property owners’ association in conjunction with the final plat. Ownership of any well, irrigation infrastructure and associated water right providing irrigation to public lands shall be transferred to the City in conjunction with the final plat. The developer must provide easements necessary to allow for the reasonable operation and maintenance of this infrastructure. All wells shall include a meter or other device to determine consumption. 27. Sec. 38.270.090 – Development or Maintenance of Common Areas and Facilities by Developer or Property Owners’ Association. a. The applicant must provide a maintenance plan for the dewatering system including the maintenance plan in the property owners’ association documents prior to final plat approval. The plan must include the long-term maintenance instructions for the Properties Owners’ Association. b. The applicant must note on the plat that maintenance of the common parking areas within open space tracts are the responsibility of the Property Owners’ Association and provide a maintenance plan with final plat. 28. Sec. 34.02.030 – Work in Streets. The City is proceeding with the construction of Cottonwood Road between Oak St and Baxter Lane and the roundabout at the intersection of Cottonwood and Baxter Lane. The City will not permit cuts or disturbance of the Cottonwood Road and the roundabout once complete. If the gravity sewer is not installed prior to or with the project wastewater service may not be available from the west resulting in the development becoming reliant on downstream service from truck mains within the Aajker creek basin. Private lift stations will not be permitted. 29. Sec. 38.350.060 – Fences. Fences located in the rear or side setback of properties adjoining any city linear park must have a maximum height of four feet on all sides. The applicant must add a note to the plate or state this in the covenants with final plat submittal. SECTION 5 – RECOMMENDATION AND FUTURE ACTIONS The Development Review Committee (DRC) determined the application was sufficient for continued review and recommended approval with conditions on January 3, 2023. Planning Board meeting was held Monday, January 23, 2023 at 6:00 pm. City Commission meeting will be held Tuesday, February 7, 2023 at 6:00 pm. SECTION 6 – STAFF ANALYSIS AND FINDINGS Analysis and resulting recommendations are based on the entirety of the application materials, municipal codes, standards, plans, public comment, and all other materials available during the 233 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 18 of 31 review period. Collectively this information is the record of the review. The analysis in this report is a summary of the completed review. Applicable Subdivision Review Criteria, Section 38.240.150.B, BMC. In considering applications for subdivision approval under this title, the advisory boards and City Commission shall consider the following: 1) Compliance with the survey requirements of Part 4 of the Montana Subdivision and Platting Act The preliminary plat was prepared in accordance with the surveying and monumentation requirements of the Montana Subdivision and Platting Act by a Professional Engineer registered in the State of Montana. As noted in the code requirements, the final plat must comply with State statute, Administrative Rules of Montana, and the Bozeman Municipal Code. 2) Compliance with the local subdivision regulations provided for in Part 5 of the Montana Subdivision and Platting Act The final plat must comply with the standards identified and referenced in the Bozeman Municipal Code. The subdivider is advised that unmet code provisions, or code provisions not specifically listed as a condition of approval, do not, in any way, create a waiver or other relaxation of the lawful requirements of the Bozeman Municipal Code or State law. Sections 3 and 4 of this report identify conditions and code provisions necessary to meet all municipal standards. The listed code requirements address necessary documentation and compliance with standards. Therefore, upon satisfaction of all conditions and code corrections the subdivision will comply with the subdivision regulations. 3) Compliance with the local subdivision review procedures provided for in Part 6 of the Montana Subdivision and Platting Act The Bozeman Planning Board public meeting and City Commission public hearings were properly noticed in accordance with the Bozeman Municipal Code. Based on the recommendation of the Development Review Committee (DRC) and other applicable review agencies, as well as any public testimony received on the matter, the City Commission will make the final decision on the subdivider’s request. The subdivider requested review of this subdivision under the terms of 76-3-623 MCA as authorized in 38.240.100. Subdivisions reviewed under the terms of 76-3-623 may not include variances or other instances of lack of compliance to standards and procedures. The Department of Community Development received a preliminary plat application on April 18, 2022. The DRC reviewed the preliminary plat application and determined the submittal did not contained detailed, supporting information that was sufficient to allow for the continued review of the proposed subdivision on June 22, 2022. 234 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 19 of 31 A revised application was received on August 30, 2022. The DRC determined the application was still not adequate for continued review on October 4, 2022. A revised application was received on October 26, 2022. The DRC determined the application was adequate for continued review January 3, 2023 and recommended conditions of approval and code corrections for the staff report. The City scheduled public notice for this application for publication in the legal advertisements section of the Bozeman Daily Chronicle on Thursday, January 5, 2023 for postings on Sundays, January 8, 2023 and January 15, 2023. The applicant posted public notice on the subject property on January 6, 2023. The applicant sent public notice to physically adjacent landowners via certified mail, and to all other landowners of record within 200-feet of the subject property via first class mail, on January 6, 2023. No public comment had been received on this application as of the writing of this report. On January 18, 2023 this major subdivision staff report was completed and forwarded with a recommendation of conditional approval for consideration to the Planning Board. The Planning Board considered the application on January 23, 2023 and recommended approval with a 6-0 vote. On January 26, this staff report was updated and forwarded for review by the City Commission. 4) Compliance with Chapter 38, BMC and other relevant regulations Community Development staff and the DRC reviewed the preliminary plat against all applicable regulations and the application complies with the BMC and all other relevant regulations with conditions and code corrections. This report includes Conditions of Approval and required code provisions as recommended by the DRC for consideration by the City Commission to complete the application processing for final plat approval. All municipal water and sewer facilities will conform to the regulations outlined by the Montana Department of Environmental Quality and the requirements of the Design Standards and Specifications Policy and the City of Bozeman Modifications to Montana Public Works Standard Specifications. Water/sewer – The subdivision will not significantly burden city water and sewer infrastructure with the recommended conditions of approval and code provisions. The required design report has been provided. Formal plans and specifications will be prepared and reviewed after action on the preliminary plat. Code provision 10.a and 10.b directs the applicant to appropriate municipal water and sewer modeling requirements to ensure capacity is provided with the development. Easements - The final plat must provide and depict all necessary utilities and required utility easements. Code provision 2 requires that all easements, existing and proposed, must be accurately depicted and addressed on the final plat and in the final plat application. Public utilities will be located within dedicated street right of ways. Additional required easements include temporary road turnarounds between each phases’ road development, this will ensure public safety over the course of the full build out. Easements must also be provided for any temporary stormwater facilities used between phases. All easements must be provided using the City’s standard language. 235 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 20 of 31 Ten foot front yard utility easements are depicted on the preliminary plat and are proposed to be granted with the final plat in accordance with standards. Parks – The applicant is proposing to develop four different park areas. Two parks are located along the north side of Harvest Parkway, Labeled Park B and Park C on sheet PK100. Park B is proposed to be developed with a small playground, landscaping, and recreation pathways. Park C is designed to connect recreation pathways and usable space to the park along Baxter Ditch, platted with Phase 1, and the Bozeman Sports Park located east of Cottonwood Rd. with enhanced road crossings. Park A also is proposed to be designed with a playground, a picnic structure, a multi-purpose lawn, and assorted sitting areas. This park is to be located central to the development northeast of the corner of Twin Lakes Ave. and Touchstone Dr. Touchstone will also connect Cottonwood Rd. to the interior of the entire Northwest Crossing development and will eventually cross Baxter Ditch to future phases. The other park areas to be developed are located in the previously platted park areas to the east of the Baxter Ditch watercourse. Park P2 East is proposed to be developed with Phase 2, and Park P1 East is proposed to be developed with Phase 4. P2 east is currently proposed to contain playground equipment, landscaping, and recreation pathways to the east and north. P2 East will connect with P1 east which is to be developed as a linear park that follows the watercourse setback allowing bike and pedestrian movements north and south. The applicant is required to enhance the Baxter Ditch watercourse with required watercourse setback plantings as specified in the code provisions above. There are code provisions related to park area requirements, cash donation and infrastructure donation in lieu of land dedication, and park development. These are listed in code provision 15. Within this provision three are related to park design requiring a corrected phasing plan to be included within supplemental document F, and requirements for details related to specific park amenities such as playgrounds, benches, and trash receptacles. The applicant is also required to replace one of the several playgrounds proposed with the subdivision to a pickle ball facility to meet PROST (Park, Recreation, Open Space, and Trails Plan) guidelines. These corrections will ensure that the park is developed according to adopted park standards and needed amenities are provided to the public. There is one code provision related to the parkland tracking table to ensure that the correct appraisal value is reflected at the time of final plat application. 15.e requires a note on the plat that the property owners’ association is responsible for snow removal where lots will front on the park in blocks 10 and 11 and primary egress from private lots will be within the park. This provision ensures maintenance of lot frontage sidewalks does not become a burden to the Parks Department. 15.f requires a preconstruction meeting with the Parks Division prior to commencement of parkland construction. This provision will help the applicant to follow the correct construction process with the City. Lastly, 15.g requires that easements for trails located within open space parcels must include the city-wide wayfinding signage and allow Parks staff to install and/or repair wayfinding signs. This provision will help connect the proposed trails to city wide park infrastructure with consistent signage and directions for users. The proposal meets the required park dedication and improvement standards with conditions and 236 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 21 of 31 code provisions. The Parks Department reviewed the parkland proposal for consistency with the master park plan for Northwest Crossing Subdivision within the approved master site plan, application no. 19440, and the approved master site plan modification, application no. 22200. Stormwater - The subdivision will construct storm water control facilities to conform to municipal code, REMU zoning, and design standards. Per the approved master site plan, application no. 19440, and REMU zoning, Low Impact Design (LID) is required within the development. Code provision 17 requires the design engineer to certify that LID infrastructure is being implemented through the development and explain how in the stormwater infrastructure review packet. The City encourages the design team to consider the Montana Post-Construction Stormwater BMP Design Guidance Manual when designing the stormwater and drainage system. Code provision 19.a requires the placement of sub-surface storage systems to allow for reasonable operation and maintenance of the system without impacting the adjacent privately owned lots. A maintenance plan must be provided per 19.c to facilitate long term maintenance of stormwater systems. 19.b requires appropriate landscaping be provided where surface stormwater retention ponds are proposed to ensure compliance with Sec. 38.410.080. Agricultural water user facility – The portion of Baxter Ditch that flows intermittently along the north end of this proposed subdivision east of Baxter Ditch, underneath Baxter Lane and North to adjacent parcels is to be removed and filled with this subdivision. No Farmers Canal shares are conveyed via the open ditch, and no known private water rights are conveyed. This was confirmed by the Farmers Canal Company. As a part of the Baxter Lane widening the existing portion of Baxter ditch that flows west to Baxter Creek along Baxter Lane will be altered to ensure that the channel can convey the additional flow and mitigate any additional flood hazard. BMC 38.360.280 requires written notice to the applicable water users or agricultural water users authorized representatives of the proposed development. Outside counsel was hired by the applicant to identify and notify downstream users of the proposed changes to Baxter Ditch with the required Baxter Lane road expansion. Letters or emails were sent to downstream users as required by code. This is confirmed with the attached correspondence within the application (documents and drawings labeled 8 in the application materials) and via a letter provided to the applicant from Abigail R. Brown Attorney at Law dated October 20, 2022. Code provision 13 states stormwater from the development may not be discharged to an agricultural facility without written permission from the owner of the facility and the provision of corresponding stormwater conveyance easements to protect downstream water users. Additionally, 13.b requires a notice be recorded with the final plat stating that the agricultural water user facility easement is subject to the requirements of Section 10-17-112 MCA restricting interference with canal or ditch easements, and that irrigation works are subject to other duties and liability in Montana Code Annotated. This notice must include language to assure the duties are binding upon all successors in interest and will remain in effect until such time the agricultural water user facility is abandoned. Agricultural water user facility requirements were reviewed by staff for compliance with adopted standards. 237 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 22 of 31 Concurrent construction – The applicant requested concurrent construction per BMC 38.270.030.D. Code provision 24 requires the applicant to provide concurrent construction approval prior to final plat approval as well as appropriate improvements agreement applications for required infrastructure and landscaping. An approved concurrent construction plan from the DRC will allow the applicant to complete required improvements with an improvements agreement within two years of the date of final plat approval. Police/Fire – The City of Bozeman’s Police and Fire emergency response area includes this subject property. The subdivision does not impact the City’s ability to provide emergency services to the subject property. The necessary address will be provided to enable 911 response to individual homes prior to recording of the final plat. Fire protection standards require installation of fire hydrants at designated spacing to ensure adequate protection. 5) The provision of easements to and within the subdivision for the location and installation of any necessary utilities The final plat will provide and depict all necessary utilities and required utility easements. Code requirement 2 requires that all easements, existing and proposed, must be accurately depicted and addressed on the final plat and in the final plat application. Public utilities are generally located within dedicated street right of ways. 6) The provision of legal and physical access to each parcel within the subdivision and the notation of that access on the applicable plat and any instrument transferring the parcel The final plat will provide legal and physical access to each parcel within the subdivision. All of the proposed lots will have either frontage on public streets constructed to City standards with lot frontage meeting minimum standards shown on the preliminary plat, or access from an approved alley and a greenway corridor with public access as allowed by BMC 38.400.090.B.2.c. Portions of blocks 1, 10, 11, and 9 are proposed to front onto landscaped open space or park parcels with sidewalks provided within those parcels, and vehicular access taken from the alley. Code provision 22 requires the applicant provide conceptual layouts in the property owners’ association documents showing an example of lots fronting off a greenway open space corridor. The conceptual layout should show an example of the front door connecting to the greenway sidewalk and a fencing example indicating a front yard fence of 4-feet on all sides. 38.220.060 Documentation of compliance with adopted standards The Development Review Committee (DRC) completed a subdivision pre-application plan review on January 26, 2022 and no variances were requested. No waivers were granted. Staff offers the following summary comments on the documents required with Article 38.220.060, BMC. 38.220.060.A.1 – Surface water This subdivision will not significantly impact surface water. Baxter Ditch, an unnamed tributary of Baxter Creek, runs to the west of the subject property. The entire eastern half of the subject property, east of Baxter Ditch where phase 2 is proposed, has been historically filled, tilled, 238 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 23 of 31 planted, and irrigated eliminating wetland qualities in those areas. Where intact wetlands and watercourses are present setbacks have been delineated and identified pursuant to BMC 38.410.100. This was done with the master site plan, application no. 19440, and the Northwest Crossing Phase 1 Preliminary Plat, no. 20113. Watercourse setback plantings along the east side of Baxter Ditch are required with code provision 16. Plants and soils along the watercourse have been severely degraded due to agricultural activities, and noxious weeds are widespread. Plantings are required to be installed or financially guaranteed with final plat. A drain tile system existed through the eastern half of the phase 1 and 2 property and has been traditionally used for agricultural ground dewatering. A letter from the Gallatin Conservation District, provided in the application materials states that this drained swell, where the tile has been damaged and repaired, is not a natural watercourse or irrigation facility and does not convey water from other properties. The applicant proposed a redesign to this system with the Phase 1 final plat application. A continuation of that redesign is proposed through this phase 2 application. The dewatering pipe is proposed along Twin Lakes Avenue and Rosa Way and will flow north towards the proposed Baxter ditch re-alignment and discharge into Baxter Creek. This pipe will be located in a separate 10-foot wide easement and must be minimum of 18-inches from all water main crossings. Design of the dewatering pipe was reviewed by engineering and was found to meet standards. The watercourse presents the possibility of flooding, code provisions 20 and 21 are related to this issue. Mitigation of this flood hazard includes recommendation for fill to be added to the site. If fill impacts wetlands or watercourses mitigation is required with local, state, and federal permitting. 38.220.060.A.2 - Floodplains Flood hazards were evaluated by the Engineering Division against code requirements contained in BMC 38.600. Code provision 21 states: The flood hazard report finds that floodwater could reach elevations in proposed lots based on existing topography. To mitigate the flood hazard due to existing topography, the report recommends fill be placed to keep the floodwater contained within the confines of the 20 feet of the wetland setback, the elevation of the structure to a minimum of two feet and sidewalk one foot above the identified floodwater surface elevation. The fee simple lots may not be final platted with completion of the mitigation. Sidewalks must be constructed per the recommendation. Finally, the plat must contain a note that the structure should be elevated two feet above identified floodwater surface elevation and provided recommended finished floor elevations for lots adjacent to Baxter Ditch. Code provision 20 states: Abandonment of the eastern lateral of Baxter Ditch increases flow to the western leg of Baxter Ditch and the subsequent flood hazard. The proposed alterations, as described with the flood hazard analysis, to accommodate the 100-year event on Baxter Ditch must be completed prior to the abandonment of the eastern ditch lateral as well as any required mitigation downstream along Baxter Creek. The alteration to Baxter Ditch must be reviewed through the City’s infrastructure review process in addition to obtaining all other permits required from 239 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 24 of 31 outside agencies and the adjacent property owner. Any alterations proposed within the public right-of-way required the approval of the City Engineer. 38.220.060.A.3 - Groundwater A geotechnical site evaluation was completed in 2019 and included eight test pits across the entire Northwest Crossing development. A memo detailing groundwater flow modeling was completed in 2020. The site is in an area of high groundwater which may negatively impact future structures or cause illicit discharges into the sanitary sewer and over burden the surface drainage system. Condition 6 on the plat prohibits use of basements or crawl spaces unless a professional engineer certifies that the structure has been designed in such a way to accommodate seasonal high groundwater. This requirement will protect both future structure owners from future hazards of flooding and lessen burden on the public from illicit discharges. Code provision 18 is related to high groundwater and stormwater infrastructure. 38.220.060.A.4 - Geology, Soils and Slopes This subdivision will not significantly impact the geology, soils or slopes. No significant geological features or slopes exist on the site. 38.220.060.A.5 - Vegetation This subdivision will not significantly impact vegetation. No critical plant communities identified on site. 38.220.060.A.6 - Wildlife This subdivision will not significantly impact wildlife. There are no known endangered or threatened species on the property. Habitat quality has been substantially impacted by agriculture and grazing. A memo prepared by Christine Pearcy, an environmental scientist with Morrison Maierle dated July 2019 was included with the application. Minimal habit exists on the property, except for along the watercourse. The applicant is proposing to enhance the east edge of the watercourse where it is adjacent to phase 2 and appropriate watercourse and wetland setbacks have been provided. 38.220.060.A.7 - Agriculture This subdivision will not impact agriculture. The subject property is designated as residential mixed use according to the City of Bozeman Community Plan. The area is zoned for residential mixed use high density development. The site is historically used for grazing and irrigated crops, but the home and agricultural buildings are all vacant. 38.220.060.A.8 - Agricultural Water User Facilities See discussion above. 240 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 25 of 31 38.220.060.A.9 - Water and Sewer The subdivision will not significantly impact city water and sewer infrastructure. Water and sewer improvements will be designed to meet City of Bozeman Standards and State Department of Environmental Quality Standards and Regulations. Also see discussion above. 38.220.060.A.10 - Stormwater Management The subdivision will not significantly impact stormwater infrastructure. See discussion above under primary review criteria. 38.220.060.A.11 - Streets, Roads and Alleys The subdivision will not significantly impact the City’s street infrastructure and will provide adequate improvements to support the development and the existing neighborhoods by completing the street grid in the area with conditions and code provisions. Phases 1-4 will extend Rosa Way, Twin Lakes Avenue, and Dayspring Avenue that were platted with phase 1 to the north into phase 2. New east-west roads are currently proposed to be named Dayspring Avenue, Touchstone Lane, and Briarwood Lane. Blocks 1, 6, 9, 10, and 11 will be developed with alley access lots. A platted north-south open space transportation corridor is proposed through blocks 2, 5, 8, and 11 to facilitate pedestrian movement through the site. The subdivision will primarily be accessed via Rosa Way and Twin Lakes Ave. from Baxter Lane, and Touchstone Drive and Harvest Parkway (existing) from Cottonwood Road. Three north-south routes, Dayspring Ave., Twin Lakes Ave., and Rosa Way will continue the street grid platted with Phase 1 to the north into Phase 2 and are consistent with the master site plan approval already in place. This proposed subdivision will include City standard sidewalks along all street frontages increasing the pedestrian connectivity in the area as whole. A traffic impact study was provided by the applicant for the Phase 2 subdivision and is dated February 23, 2022, with an update letter dated October 18, 2022. The TIS and update letter were reviewed by engineering have been found to meet City standards for peak trip generation and level of service with code provisions. Code provision 6 requires both Baxter Lane and Cottonwood Road to be fully completed to ensure the convenient and reliable movement of City wide traffic and effective access for emergency services for both the proposed development and the community as a whole as the proposed subdivision moves through the currently planned phasing. 38.220.060.A.12 – Non-Municipal Utilities The applicant has received confirmation of future service from Northwestern Energy and internet providers. 38.220.060.A.13 - Land Use The application has provided future land use data consistent with the REMU zoning district and the community plan. 26.84 acres is proposed as developable residential lots, 3.24 acres as open space tracts, 2.16 acres as parks, and 11.74 acres as right-of-way. The proposed uses of townhouses, small lot single household, and single household are allowed within the REMU zoning district. 241 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 26 of 31 38.220.060.A.14 - Parks and Recreation Facilities The proposed subdivision will provide improvements to existing dedicated parkland, new parkland, and cash or improvements-in-lieu of parkland dedication. The proposal meets the required park dedication and improvement standards with conditions and code provisions. The Parks Department reviewed the parkland proposal for consistency with the master park plan for Northwest Crossing Subdivision within the approved master site plan, application no. 19440, and the approved master site plan modification, application no. 22200. Also see the discussion above. 38.220.060.A.15 - Neighborhood Center Plan To provide a neighborhood focal point, all residential subdivisions that are ten net acres in size or greater, must have a neighborhood center. Developments may be exempted from this requirement if every lot within the development is within one-half mile of an existing neighborhood center. The existing neighborhood center platted with phase 1, is within 0.5 miles of the subdivision, meets the size standards of this section, and is zoned B-2M which will allow for a neighborhood commercial center. 38.220.060.A.16 - Lighting Plan Subdivision or street lighting is required pursuant to BMC 38.570.030. All street lights installed must use LED light heads and must conform to the City’s requirement for cut-off shields as required by the City’s specifications. A Special Improvement Lighting District (SILD) must be created prior to final plat application. Code provision 7 is related to this issue. 38.220.060.A.17 - Miscellaneous The proposed subdivision is not located within 200 feet of any public land access or within a delineated Wildland Urban Interface area. No health or safety hazards on-site or off-site will be created with this development. 38.220.060.A.19 - Affordable Housing This application does not rely on incentives authorized in 38.380. Therefore, no analysis is required. APPENDIX A – PROJECT SITE ZONING AND GROWTH POLICY Zoning Designation and Land Uses: The subject property is zoned REMU, Residential Emphasis Mixed Use. The intent and purpose of the REMU district is to establish areas within Bozeman that are mixed-use in character and to provide options for a variety of housing, employment, retail and neighborhood service opportunities within a new or existing neighborhood. These purposes are accomplished by: 1. Emphasizing residential as the primary use, including single household dwellings, two to four household dwellings, townhouses, and apartments. 2. Providing for a diverse array of neighborhood-scaled commercial and civic uses supporting residential. 242 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 27 of 31 3. Emphasizing a vertical and horizontal mix of uses in a compact and walkable neighborhood setting. 4. Promoting neighborhoods that: a. Create self-sustaining neighborhoods that will lay the foundation for healthy lifestyles; b. Support compact, walkable developments that promote balanced transportation options; c. Have residential as the majority use with a range of densities; d. Provide for a diverse array of commercial and civic uses supporting residential; e. Have residential and commercial uses mixed vertically and/or horizontally; f. Locate commercial uses within walking distance; g. Incorporate a wider range of housing types; and h. Encourage developments that exhibit the physical design characteristics of vibrant, urban, and pedestrian-oriented complete streets. 5. Providing standards and guidelines that emphasize a sense of place: a. Support or add to an existing neighborhood context; b. Enhance an existing neighborhood's sense of place and strive to make it more self-sustainable; c. Encourage a new neighborhood commercial center(s) with a unique identity and strong sense of place; d. Develop commercial and mixed-use areas that are safe, comfortable, and attractive to pedestrians; and e. Reinforce the principle of streets as public places that encourage pedestrian and bicycle travel, transit, on-street parking and physical elements of complete streets. 6. Providing standards and guidelines that emphasize natural amenities: a. Preserve and integrate the natural amenities into the development; and b. Appropriately balance a hierarchy of both parks and public spaces that are within the neighborhood. 7. Providing standards and guidelines that emphasize the development of centers: a. Group uses of property to create vibrant centers; b. Where appropriate create a center within an existing neighborhood; c. Facilitate proven, market driven projects to ensure both long and short-term financial viability; d. Allow an appropriate blend of complementary mixed land uses including, but not limited to, retail, offices, commercial services, restaurants, bars, hotels, recreation and civic uses, and housing, to create economic and social vitality; e. Foster the master plan development into a mix of feasible, market driven uses; f. Emphasize the need to serve the adjacent, local neighborhood and as well as the greater Bozeman area; and g. Maximize land use efficiency by encouraging shared use parking. 243 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 28 of 31 8. Promoting the integration of action: a. Support existing infrastructure that is within and adjacent to REMU zones; b. Encourage thoughtfully developed master planned communities; c. Provide flexibility in the placement and design of new developments and redevelopment to anticipate changes in the marketplace; d. Provide flexibility in phasing to help ensure both long and short term financial viability for the project as a whole; 9. Providing standards and guidelines that promote sustainable design Use of this zone is appropriate for sites at least five acres in size and areas located adjacent to an existing or planned residential area to help sustain commercial uses within walking distance and a wider range of housing types. Adopted Growth Policy Designation: Table 4 of the Bozeman Community Plan 2020 shows the correlation between future land use map designations and implementing zoning districts. (See below for the Table) 244 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 29 of 31 The subject property is designated as Residential Mixed Use. This category promotes neighborhoods substantially dominated by housing, yet integrated with small-scale commercial and civic uses. The housing can include single-attached and small single-detached dwellings, apartments, and live-work units. If buildings include ground floor commercial uses, residences should be located on upper floor. Variation in building mass, height, and other design characteristics should contribute to a complete and interesting streetscape. Secondary supporting uses, such as retail, office, and civic uses, are permitted on the ground floor. All uses should complement existing and planned residential uses. Non-residential uses are expected to be pedestrian oriented and emphasize the human scale with modulation in larger structures. Stand alone, large, non-residential uses are discouraged. Non-residential spaces should provide an interesting pedestrian experience with quality urban design for buildings, sites, and open spaces. This category is appropriate near commercial centers. Larger areas should be well served by multimodal transportation routes. Multi-unit, higher density, urban development is expected. Any development within this category should have a well-integrated transportation and open space network that encourages pedestrian activity and provides ready-access within and adjacent development. This proposed subdivision is well-suited to implement the Residential Mixed Use designation by providing lots that will support a variety of housing types including townhouses, small lot single household, single household, and courtyard access single household. The townhouse and small lot single household lots will support construction of “missing middle” housing which is contemplated throughout the Bozeman Community Plan 2020. The proposed subdivision is also located near an existing, and yet undeveloped, commercial area. The added density adjacent to this commercial neighborhood center will add demand for development of the B-2M zoned area to the south. The growth policy encourages development to be walkable, which is defined in the glossary as: Walkable. A walkable area has: • A center, whether it’s a main street or a public space. • People: Enough people for businesses to flourish and for public transit to run frequently. • Parks and public space: Functional and pleasant public places to gather and play. • Pedestrian design: Buildings are close to the street, parking lots are relegated to the back. • Schools and workplaces: Close enough that walking to and from home to these destinations is realistic. • Complete streets: Streets designed for bicyclists, pedestrians, and transit. With the complexity of features needed to create a walkable environment, no one site is likely to provide all the needed elements. The additional density will help provide for element two with 245 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 30 of 31 potential for additional persons in the area. Parks and pedestrian routes are proposed through and around the development. The use of alleys and courtyard access lots will significantly reduce visible parking and help create a vibrant public realm. The REMU district has a minimum building setback of 10-feet and a maximum of 15-feet which will contribute to pedestrian design. LID stormwater is required and will be integrated into small retention ponds and underground stormwater management reducing the need for large basins of unusable area. Gallatin High School is within 0.5 miles of the center of the proposed subdivision, with nearby elementary and middle schools within a mile. The Streamline Brownline has a stop on Oak Street at Gallatin High School which is rough 0.5 miles away from the proposed development. There are also another commercial node at Baxter Meadows about 0.75 miles away near Vaquero and Baxter Lane. The proposed subdivision meets the following Bozeman Community Plan 2020 goals: N-1.1 Promote housing diversity, including missing middle housing N-1.10 Increase connectivity between parks and neighborhoods through continued trail and sidewalk development. Prioritize closing gaps within the network. N-3.8 Promote the development of “Missing Middle” housing (townhouses, multi-household) APPENDIX B – DETAILED PROJECT DESCRIPTION Project Background and Description A preliminary plat application by the applicant, Morrison Maierle, Inc., 2880 Tech Blvd West, Bozeman, MT 59771, representing applicant Williams Homes, 387 Gallatin Park Drive Suite 102, Bozeman, MT 59715, and the property owner NWX, LLC, 529 E. Main Street, Bozeman, MT 59715. APPENDIX C – NOTICING AND PUBLIC COMMENT Notice was provided at least 15 and not more than 45 days prior to the City Commission public hearing per BMC 38.220.420, The City scheduled public notice for this application on January 5, 2023 for publication in the legal advertisements section of the Bozeman Daily Chronicle on Sunday January 8, and Sunday January 15, 2023. The applicant posted public notice on the subject property on January 6, 2023. The City sent public notice to physically adjacent landowners via certified mail, and to all other landowners of record within 200-feet of the subject property via first class mail, on January 6, 2023. No public comment has been received as of the writing of this report. APPENDIX D – OWNER INFORMATION AND REVIEWING STAFF Owner: NWX, LLC, 529 E. Main Street, Bozeman, MT 59715. Applicant: Williams Homes, 387 Gallatin Park Drive Suite 102, Bozeman, MT 59715 246 22129 Staff Report for Northwest Crossing (NWX) Phase 2 Subdivision Page 31 of 31 Representative: Morrison Maierle, Inc., 2880 Tech Blvd West, Bozeman, MT 59771 Report By: Danielle Garber, Associate Planner FISCAL EFFECTS No unusual fiscal effects have been identified. ATTACHMENTS The full application and file of record can be viewed digitally at https://www.bozeman.net/departments/community-development/planning/project-information- portal, select the “Project Documents Folder” link and navigate to application #22129, as well as digitally at the Community Development Department at 20 E. Olive Street, Bozeman, MT 59715. Application materials – Available through the Laserfiche archive, the full file is linked below. https://weblink.bozeman.net/WebLink/Browse.aspx?id=261887&dbid=0&repo=BOZEMAN This project can be viewed on the Community Development Viewer interactive map directly with this link: https://gisweb.bozeman.net/Html5Viewer/?viewer=planning&FILE_NUMBER=22-129 247 Memorandum REPORT TO:City Commission FROM:Susana Montana, Senior Planner Brian Krueger, Manager, Development Review Division Anna Bentley, Director, Community Development Department SUBJECT:Saccoccia Minor Subsequent Subdivision Preliminary Plat (Quasi-judicial) MEETING DATE:February 7, 2023 AGENDA ITEM TYPE:Community Development - Quasi-Judicial RECOMMENDATION:Approve the Saccoccia Minor Subsequent Subdivision Preliminary Plat with conditions and code provisions. STRATEGIC PLAN:4.2 High Quality Urban Approach: Continue to support high-quality planning, ranging from building design to neighborhood layouts, while pursuing urban approaches to issues such as multimodal transportation, infill, density, connected trails and parks, and walkable neighborhoods. BACKGROUND:This is a two lot minor subsequent subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407. That is a mouthful for the division of a single lot into two lots. This is the subdivision of the existing 5.53-acre Lot 2A to create two commercial buildable lots consisting of a 3.49-acre Lot 2A1 and a 2.04- acre Lot 2A2. The property lies within the B-2, Community Business zoning district within the Saccoccia/Lowe’s Planned Unit Development (PUD). The existing Lot 2A has an approved site plan for a hotel development, Project No. 19394, for a Home 2 Home hotel. This hotel site plan did not use the proposed Lot 2A2 land and, therefore, the current owner/Applicant seeks to separate that unused portion of the larger Lot 2A to create two new buildable commercial lots. UNRESOLVED ISSUES:None. ALTERNATIVES:None suggested. FISCAL EFFECTS: 248 Fiscal impacts are undetermined at this time, but will include increased property tax revenues from new development, along with increased costs to deliver municipal services to the property. Attachments: 22188 Graf St PP CC Memo.docx 21430 Final Pre-Plat Page 1 11 01 22.pdf 21430 Final Pre-Plat Page 3 10 31 22.pdf 21430 Final Pre-Plat page2 10 31 22.pdf 21430 Saccoccia PP CC staff rpt 01 30 23.pdf Report compiled on: January 27, 2023 249 Commission Memorandum REPORT TO: Mayor and City Commission FROM: Susana Montana, Senior Planner, Community Development Department SUBJECT:12131 Graf Street Minor Subdivision Preliminary Plat STRATEGIC PLAN:4.2 High Quality Urban Approach. Continue to support high quality planning, ranging from building design to neighborhood layouts, while pursuing urban approaches to issues such as multimodal transportation, infill, density, connected trails and parks, and walkable neighborhoods. MEETING DATE:January 10, 2023 AGENDA ITEM TYPE:Consent RECOMMENDATION: Approve the Preliminary Plat for the 2131 Graf Street Minor Subdivision. SUGGESTED MOTION:“Having reviewed and considered application materials, public comment, and all the information presented, I hereby accept the staff report and findings for application 22188 and recommend approval of the 2131 Graf Street Minor Subdivision Preliminary Plat with conditions and subject to all applicable code provisions.” BACKGROUND:This is a minor subdivision of a 25.99 acre parcel to create5 lots in 2 Blocks. One lot would be dedicated to the City as a 2.1 acre public park. The other 4 lots would be developed in two phases with a total of 457 rental apartment dwelling units. The subdivision Site has an approved Master Site Plan for the 457 dwelling units and has an approved Phase I Site Plan for development of 198 apartment units. The Phase I apartment building development is under construction. UNRESOLVED ISSUES: None identified. ALTERNATIVES: None suggested or proposed. FISCAL EFFECTS: Fiscal impacts are undetermined at this time, but will include increased property tax revenues from new development, along with increased costs to deliver municipal services to the property. Report compiled on: December 20, 2022 250 Xref N:\2927\012 - Minor Sub 407C PreApp\ACAD\Survey\Proposed Water Storm.dwg ©COPYRIGHT MORRISON-MAIERLE, INC.,2022 PLOTTED DATE: Oct/31/2022 PLOTTED BY: matt e. ekstrom DRAWING NAME: N:\2927\012 - Minor Sub 407C PreApp\ACAD\Survey\2927012_PPLAT Page 1.dwg 1/4 SEC.SECTION TOWNSHIP RANGE PROJ. #:SHEET OF COUNTY,DATE: SCALE: CLIENT: FIELD WORK: DRAWN BY: CHECKED BY:31SACCOCCIA LANDS LLC GALLATIN 2927.012 10/18/22 MEE JCW JCW 5 EAST 2 SOUTH 1NW MONTANA PRINCIPAL MERIDIAN, MONTANAengineers surveyors planners scientists MorrisonMaierle 2880 Technology Blvd West Bozeman, MT 59718 Phone: 406.587.0721 www.m-m.net OWNER PURPOSE LOCATED IN THE NW 1 4 OF SECTION 1, TOWNSHIP 2 SOUTH, RANGE 5 EAST, P.M.M., CITY OF BOZEMAN, GALLATIN COUNTY, MONTANA CERTIFICATE OF DEDICATION I, Jon C. Wilkinson, Montana Professional Land Surveyor License No. 16411LS, hereby certify that Lot 2A of Minor Subdivision 407C was surveyed under my supervision between May 2021 and October 2021, and platted the same as shown on the accompanying plat and as described in accordance with the provisions of the Montana Subdivision and Platting Act, §76-3-101 through §76-3-625, M.C.A., and the Bozeman Unified Development Ordinance. I further certify that monuments which have not been set by the filing date of this instrument will be set by May 1, 2022, due to public improvements construction pursuant to 24.183.1101(1)(d) A.R.M. Dated this___________day of_________________, 2022. ________________________________________________________ Jon C. Wilkinson, PLS, CFedS MT Reg. #16411LS Morrison-Maierle, Inc. SACCOCCIA LANDS II, LLC By: ________________________________________________________________________________ _____________________, Authorized Representative Dated State of ____________________________________ County of ___________________________________ On this _______ day of __________________, 2022, before me, the undersigned Notary Public for the State of _____________________ personally appeared __________________, known to me to be the Authorized Representative of ___________________ and acknowledged to me that said _____________________ executed the same. Notary Public in and for the State of ___________________ Printed Name _____________________________________ Residing at _______________________________________ My commission expires _____________________________ CERTIFICATE OF COMPLETION OF IMPROVEMENTS I, __________________ and I, ________________________, a Registered Professional Engineer licensed to practice in the State of Montana, hereby certify that the following improvements, required to meet the requirements of Chapter 38 of the Bozeman Municipal Code or as Conditions of Approval of the Final Plat of Minor Subdivision No. _____have been installed in conformance with the approved plans and specifications, or financially guaranteed and covered by the improvements agreement accompanying this plat. Installed Improvements: Financially Guaranteed Improvements: Landscaping, Irrigation System, Sidewalk and Trails. The subdivider hereby warrants against defects in these improvements for a period of two years from the date of acceptance by the City of Bozeman. The subdivider grants possession of all public infrastructure improvements to the City of Bozeman and the City hereby accepts possession of all public infrastructure improvements, subject to the above indicated warranty. ___________________________________________________________________ _________________ Authorized Representative Dated SACCOCCIA LANDS II, LLC ___________________________________________________________________ Matt E. Ekstrom, PE Dated MT Reg. No. 10853PE Morrison Maierle, Inc. ___________________________________________________________________ Dated Director of Public Works City of Bozeman, Montana I, Eric Semerad, Clerk and Recorder of Gallatin County, Montana, do hereby certify that the foregoing instrument was filed in my office at _______ o'clock, __________(a.m., or p.m.), this _________ day of ______________, 2022 and recorded in Book ______ of Plats on page __________, and Document # ____________________, Records of the Clerk and Recorder, Gallatin County, Montana. Dated this __________ day of ____________________, 2022. ________________________________________ Eric Semerad Clerk and Recorder Gallatin County, Montana CERTIFICATE OF CLERK AND RECORDER I, Jennifer Blossom, Treasurer of Gallatin County, Montana, do hereby certify that the accompanying plat has been duly examined and that all real property taxes and special assessments assessed and levied on the land to being divided have been paid. Dated this __________ day of ____________________, 2022. ________________________________________ Jennifer Blossom Treasurer Gallatin County, Montana _________________________________________ Tax ID No. CERTIFICATE OF COUNTY TREASURER I, _____________, Director of Public Works, City of Bozeman, Montana, do hereby certify that the accompanying plat has been duly examined and has found the same to conform to the law, approve it, and hereby accept the dedication to the City of Bozeman for the public use of any and all lands shown on the plat as being dedicated to such use. Dated this __________ day of ____________________, 2022. ________________________________________ Director of Public Works City of Bozeman, Montana CERTIFICATE OF DIRECTOR OF PUBLIC WORKS We, the undersigned property owners, do hereby certify that we have caused to be surveyed, subdivided and platted into lots, blocks, streets, and alleys, and other divisions and dedications, as shown by the plat hereunto included the following described tract of land to wit: Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407, located in the NW ¼ of Section 1, Township 2 South, Range 5 East, P.M.M., City of Bozeman, Gallatin County, Montana. The area of the above described parcel of land is 5.53 acres, more or less. The above-described tract of land is to be known and designated as “Minor Subdivsion No. _____”, City of Bozeman, Gallatin County, Montana; and the lands included in all streets, avenues, alleys, and parks or public lands shown on said plat are hereby granted and donated to the City of Bozeman for the public use and enjoyment. Unless specifically listed herein, the lands included in all streets, avenues, alleys, and parks or public lands dedicated to the public are accepted for public use, but the City of Bozeman accepts no responsibility for maintaining the same. The owner agrees that the City of Bozeman has no obligation to maintain the lands included in all streets, avenues, alleys, and parks or public lands, hereby dedicated to public use. The undersigned hereby grants unto each and every person firm or corporation, whether public or private, providing or offering to provide telephone, electric power, gas, internet, cable television or other similar utility or service, the right to the joint use of an easement for the construction, maintenance, repair and removal of their lines and other facilities in, over, under and across each area designated on this plat as "Utility Easement" to have and to hold forever. CERTIFICATE OF SURVEYOR All streets, alleys, and right-of-way, shown hereon as "DEDICATED", are not easements. The intent of dedication is to convey all the streets, alleys, and right-of-way to the public, upon acceptance by the governing authority, DEDICATION AND EASEMENT NOTE Lot 2A of Minor Subdivision No. 407C, Gallatin County, Montana, is within the City of Bozeman, Montana, a first class municipality, and with the planning area of the Bozeman growth policy which was adopted pursuant to Section 76-1-601 et seq., MCA, and can be provided with adequate storm water drainage and adequate municipal facilities. Therefore under the provisions of Section 76-4-125(1)(d), MCA, this survey is excluded from the requirement for Montana Department of Environmental Quality review. Dated this ________________________ day of _______________________________, 2022. ________________________________ Public Works Director City of Bozeman, Montana CERTIFICATE OF EXCLUSION FROM MONTANA DEPARTMENT OF ENVIRONMENTAL QUALITY REVIEW PRELIMINARY PLAT of MINOR SUBSEQUENT SUBDIVISION of LOT 2A of the CORRECTED AMENDED PLAT of MINOR SUBDIVISION 407C OF LOTS 1 AND 2 of the SACCOCCIA MINOR SUBDIVISION 407 251 Xref N:\2927\012 - Minor Sub 407C PreApp\ACAD\Survey\Proposed Water Storm.dwg ©COPYRIGHT MORRISON-MAIERLE, INC.,2022 PLOTTED DATE: Oct/31/2022 PLOTTED BY: matt e. ekstrom DRAWING NAME: N:\2927\012 - Minor Sub 407C PreApp\ACAD\Survey\2927012_PPLAT Page 3.dwg 1/4 SEC.SECTION TOWNSHIP RANGE PROJ. #:SHEET OF COUNTY,DATE: SCALE: CLIENT: FIELD WORK: DRAWN BY: CHECKED BY:33SACCOCCIA LANDS LLC GALLATIN 2927.012 10/31/22 MEE JCW JCW 5 EAST 2 SOUTH 1NW MONTANA PRINCIPAL MERIDIAN, MONTANAengineers surveyors planners scientists MorrisonMaierle 2880 Technology Blvd West Bozeman, MT 59718 Phone: 406.587.0721 www.m-m.net LOCATED IN THE NW 1 4 OF SECTION 1, TOWNSHIP 2 SOUTH, RANGE 5 EAST, P.M.M., CITY OF BOZEMAN, GALLATIN COUNTY, MONTANA CONDITIONS OF APPROVAL SHEET PRELIMINARY PLAT of MINOR SUBSEQUENT SUBDIVISION of LOT 2A of the CORRECTED AMENDED PLAT of MINOR SUBDIVISION 407C OF LOTS 1 AND 2 of the SACCOCCIA MINOR SUBDIVISION 407 Certificate of Completion of Non-Public Improvements; and Conditions of Approval : Unless specifically listed in the Certificate of Dedication, the city accepts no responsibility for maintaining Common Open Space Tracts or Storm Water Tracts. Saccoccia Lands II, LLC hereby further certifies that the following non-public improvements, required to meet the requirements of chapter 38 of the Bozeman Municipal Code, or as a condition(s) of approval of the subdivision plotted herewith, have been installed in conformance with any approved plans and specifications prepared in accordance with the standards of Chapter 38 or other City design standards, or have been financially guaranteed and are covered by the subdivision improvements agreement accompanying and recorded with this plat. Installed Improvements: None Financially Guaranteed Improvements: Landscaping, Irrigation System, Sidewalks and Trails. We further certify that the text and/or graphics shown on the Conditions of Approval sheet represents requirements by the governing body for final plat approval and that all conditions of subdivision application have been satisfied; and that the information shown is current as of the date of the certification, and that changes to any land use restrictions or encumbrances may be made by amendment to covenants, zoning regulations, easements, or other documents as allowed by law or local regulations. Saccoccia Lands II, LLC By: ______________________________________________________________________________ Philip Saccoccia Jr. Manager, Authorized Representative Dated Saccoccia Lands II, LLC State of ____________________________________ County of ___________________________________ On this ________________ day of ___________________________, 20__, before me, the undersigned Notary Public for the State of _____________________ personally appeared _______________________, known to me to be the Authorized Representative of _______________, LLC and acknowledged to me that said Inc. executed the same. Notary Public in and for the State of ___________________ Printed Name _____________________________________ Residing at _______________________________________ My commission expires _____________________________ Conditions: Buyers of property should ensure that they have obtained and reviewed all sheets of the plat and all documents recorded and filed in conjunction with the plat and buyers of property are strongly encouraged to contact the local planning department and become informed of any limitations on the use of the property prior to closing. The undersigned property owner acknowledges that there are federal, state, and local plans, policies, regulations, and/or conditions of subdivision approval that may limit the use of the property, including the location, size, and use. 1.All Lot 2A Easements, Covenants, Conditions and Restrictions (ECCRs) that are previously recorded with the ECCRs as Amended (Documents 2207321, 2207322, 2207846, 2268753) are herewith assigned to Lots 2A1 and 2A2 as successors in title to Lot 2A (Assignment). This Assignment is pro-rata with respect to the proportionate areas of Lots 2A1 and 2A2. In addition to the pro rata maintenance of common areas and easements required by the ECCRs, Lots 2A1 and 2A2 are solely responsible on a pro rata basis for maintenance of the new public easement with pedestrian walkway required by this Subsequent Minor Subdivision. Maintenance includes but is not limited to the operation, cleanup and repair of landscape, irrigation, walkways, driveways, parking areas, lighting, signage, and removal of snow and ice on all walkways, driveways, and parking areas. The operation and maintenance of the new stormwater detention pond forebay required for Lot 2A1 in this Subsequent Minor Subdivision is the sole responsibility of Lot 2A1. Operation and maintenance of the self-contained stormwater detention system required for Lot 2A2 in this Subsequent Minor Subdivision is the sole responsibility of Lot 2A2. 2.Due to the known high groundwater conditions in the area no basements will be permitted with future development of the site. No crawl spaces will be permitted with future development of the site, unless a professional engineer registered in the State of Montana certifies that the lowest point of any proposed structure is located above the seasonal high groundwater level and provide supporting groundwater data prior to the release of building permit. In addition, sump pumps are not allowed to be connected to the sanitary sewer system or the drainage system unless capacity is designed into the drainage system to accept the pumped water. Water from sump pumps may not be discharged onto streets, such as into the curb and gutters where they may create a safety hazard for pedestrians and vehicles. 252 S85°50'42"E 398.33'N2°57'04"E 170.79'S85°50'42"E 398.05' N87°00'45"W 398.02'N2°57'04"E 223.34'N87°02'06"W 796.17'S2°57'21"W 377.59'N2°55'47"E 162.68'S2°55'47"W 223.18'398.10' 398.07' R=49.50' L=22.71' Δ=26°17'04" R=49.50' L=18.93' Δ=21°54'50"314.51'310.23'139.45'282.09'59.99'75.02'75.02'30.00' 65.97' 40.01' 378.30' 270.24' 30.00'56.23' 40.01' S85°50'42"E 454.90'30.00'21.59' 60.17' 117.25' 86.62' S87°02'06"E 780.67'56.20'48.54'20.00' 20' 10' 30' 45' 10' PUE 30' 15' 30' 30' 17.5' 40'10' PUE 10' PUE 31' 30' TV CO T DD P P BF BF BF BF BF BF BF BF BF BF BF BF BF BF BF BF BF BP BP BP BP BP BP BP BP BP BP BP BP BFBFOHPOHPOHPOHPOHPOHPWV WV P TV EX SS EX SS EX SS EX SS EX SS EX SS EX SS EX SS EX SS EX SS EX SS EX SS EX SS EX SS EX SS EX SS EX SS EX SS EX SSEX SSEX SSEX SSEX SSEX SSEX SSEX SSEX SSEX SSWV WV DYH WV WV DYH WV WWWWWWWWWWWWWW BPBPBPBPBPBPBPBPBPBPBPBPBP BP BP BP BP BP BP BP BP BP BP BP BP BP BP BP BP BP BP BP BP BP BP BP BP BP BP BP BPBPBFBFBFBFBFBFBFBFBFBFBF BFBFBFBFBFBFBFBFBFBFBFBFBF BTVG WV DYH W W W W W W W W W W W W W W W W W W W W W W W W EX SS EX SS EX SS EX SS EX SS EX SS EX SS EX SS EX SS EX SS EX SS EX SSEX SSEX SSEX SSEX SSEX SSEX SSEX SSEX SSEX SSEX SS EX SS W4730 4728 47 2 9 4731 4732 4727 47294 7 2 9 47 2 8 4730 4731 47324729 4730 47304735 4737 4735 4730 4727 4728W W W W W W W W W W W W W W W W W W W WWWWWHYDS85°50'42"E 398.33'N2°57'04"E 170.79'S85°50'42"E 398.05' N87°00'45"W 398.02'N2°57'04"E 223.34'N87°02'06"W 796.17'S2°57'21"W 377.59'N2°55'47"E 162.68'S2°55'47"W 223.18'398.10' 398.07' R=49.50' L=22.71' Δ=26°17'04" R=49.50' L=18.93' Δ=21°54'50"314.51'310.23'139.45'282.09'59.99'75.02'75.02'30.00' 65.97' 40.01' 378.30' 270.24' 30.00'56.23' 40.01' S85°50'42"E 454.90'30.00'21.59' 60.17' 117.25' 86.62' S87°02'06"E 780.67'56.20'48.54'20.00' 25' 50' 25' 10' PUE 25' ©COPYRIGHT MORRISON-MAIERLE, INC.,2022 PLOTTED DATE: Oct/31/2022 PLOTTED BY: matt e. ekstrom DRAWING NAME: N:\2927\012 - Minor Sub 407C PreApp\ACAD\Survey\2927012_PPLAT Page 2.dwg 1/4 SEC.SECTION TOWNSHIP RANGE PROJ. #:SHEET OF COUNTY,DATE: SCALE: CLIENT: FIELD WORK: DRAWN BY: CHECKED BY:32SACCOCCIA LANDS LLC GALLATIN 2927.012 1"=30' 10/31/22 MEE JCW JCW 5 EAST 2 SOUTH 1NW MONTANA PRINCIPAL MERIDIAN, MONTANAengineers surveyors planners scientists MorrisonMaierle 2880 Technology Blvd West Bozeman, MT 59718 Phone: 406.587.0721 www.m-m.net 30 BAXTER LANE OWNER PURPOSE LEGEND Found a 2" diameter aluminum cap, marked "MMI 10692 ES". Set a rebar 5/8" diam., with a plastic cap, marked "MMI 16411LS". Section corner position falls in manhole lid Found a blue plastic cap, marked "MMI 16971LS" (R1) Minor Subdivision 407CSIMMENTAL WAYSACCO DRIVELOT 2A2 2.04 acres LOT 2A1 3.49 acres LOCATED IN THE NW 1 4 OF SECTION 1, TOWNSHIP 2 SOUTH, RANGE 5 EAST, P.M.M., CITY OF BOZEMAN, GALLATIN COUNTY, MONTANA PRELIMINARY PLAT of MINOR SUBSEQUENT SUBDIVISION of LOT 2A of the CORRECTED AMENDED PLAT of MINOR SUBDIVISION 407C OF LOTS 1 AND 2 of the SACCOCCIA MINOR SUBDIVISION 407 253 City Commission Staff Report for Saccoccia Minor Subsequent Subdivision Preliminary Plat; 21430 Page 1 of 26 City Commission Staff Report for the Saccocia Minor Subsequent Subdivision; Application No. 21430 Public Hearing Date: City Commission, February 7, 2022 at 6:00 pm to take place both in person and remotely using an online videoconferencing system. A remote link will be provided with the City Commission agenda. Project Description: This is a minor subsequent subdivision Preliminary Plat for the “Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407”. This subdivision of the existing 5.53-acre Lot 2A is to create two commercial buildable lots consisting of a 3.49-acre Lot 2A1 and a 2.04-acre Lot 2A2 lying within the B-2, Community Business zoning district within the Saccoccia/Lowe’s Planned Unit Development (PUD). The existing Lot 2A has an approved site plan for a hotel development, Project No. 19394, for a Home 2 Home hotel. This hotel site plan did not use any of the proposed Lot 2A2 land and, therefore, the current owner/Applicant seeks to separate that unused portion of the larger Lot 2A to create two new buildable commercial lots. Project Legal Description: Preliminary Plat of the Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 located in the NE ¼ of Section 1, Township 2 South, Range 5 East, P.M.M., City of Bozeman, Gallatin County, Montana. Project Location: South of Baxter Lane, west of Sacco Drive, east of the southernmost terminus of Simmental Way and north of Tschache Lane. Development Review Committee Recommendation: The November 23, 2021 and January 24, 2023 revised Preliminary Plat application creating Lots 2A1 and 2A2 of the Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 conforms to standards and is sufficient for approval with conditions and code provisions. Recommended City Commission Motion: Having reviewed and considered the application materials, public comment, and all the information presented, I hereby adopt the findings presented in the staff report for application 21430 and move to approve the subdivision with conditions and subject to all applicable code provisions. Report Date: January 24, 2023 Staff Contact: Susana Montana, Senior Planner Karl Johnson, Project Engineer Agenda Item Type: Action (Quasi-judicial) 254 City Commission Staff Report for the Preliminary Plat of Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 Page 2 of 26 EXECUTIVE SUMMARY This report is based on the application materials submitted and public comment received to date. The application materials are available in the City’s Laserfiche archive and may be accessed through the Community Development viewer as well. No public comments have been received as of the writing of this report. Should written public comments be received they will be included in the City’s Laserfiche archive and available to the public. Unresolved Issues There are no unresolved issues with this application. Project Summary This report is based on the November 23, 2021 revised plat maps and the December 2, 2022 revised application materials and any public comment received to date. The property owner/Applicant submitted a minor subsequent subdivision preliminary plat application to subdivide the 5.53-acre Lot 2A to create two commercial buildable lots consisting of a 3.49-acre Lot 2A1 and a 2.04-acre Lot 2A2. The existing Lot 2A has an approved site plan for a hotel development, Project No. 19394 for a Home-2-Home hotel. This hotel site plan did not use the proposed Lot 2A2 land and, therefore, the Applicant seeks to separate that portion of the larger Lot 2 to create a new buildable lot. The property is zoned B-2, Community Business and Saccoccia/Lowes PUD. Pursuant to the Bozeman Municipal Code (BMC) Section 38.240.130.A.5.a.(3), the final decision for a subsequent minor subdivision preliminary plat must be made within 60 working days of the date it was deemed adequate for further review. The Development Review Committee (DRC) deemed the application adequate for continued review on January 24, 2023 and public notice began on January 24, 2023 by posting a public notice on the Site and mailing the same to adjacent property owners. Pursuant 38.240.130, the City Commission shall approve, conditionally approve or deny the subdivision application by March 24, 2023, unless there is a written extension from the developer, not to exceed one year. No public comment has been received to date. Alternatives 1. Approve the application with the recommended conditions; 2. Approve the application with modifications to the staff-recommended conditions; 3. Deny the application based on findings of non-compliance with the applicable criteria contained within the staff report; or 4. Continue the public hearing on the application to a later date, with specific direction to staff or the Applicant to supply additional information or to address specific items. This alternative is requested if the Commission wishes to amend or add conditions of approval. 255 City Commission Staff Report for the Preliminary Plat of Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 Page 3 of 26 Table of Contents EXECUTIVE SUMMARY ............................................................................................................ 2 Unresolved Issues ............................................................................................................... 2 Project Summary ................................................................................................................. 2 Alternatives ......................................................................................................................... 2 Table of Contents ............................................................................................................................ 3 SECTION 1 - MAP SERIES .......................................................................................................... 4 SECTION 2 – REQUESTED VARIANCES ................................................................................. 8 SECTION 3 - RECOMMENDED CONDITIONS OF APPROVAL ............................................ 8 SECTION 4 - CODE REQUIREMENTS REQUIRING PLAT CORRECTIONS ...................... 11 SECTION 5 - RECOMMENDATIONS AND FUTURE ACTIONS .......................................... 13 SECTION 6 - STAFF ANALYSIS AND FINDINGS ................................................................. 13 APPENDIX A --PROJECT SITE ZONING AND GROWTH POLICY ..................................... 24 How the proposed subdivision advances the adopted growth Policy. .......................................... 24 APPENDIX B – NOTICING AND PUBLIC COMMENT ......................................................... 25 APPENDIX C - OWNER INFORMATION ................................................................................ 25 ATTACHMENT LINK ................................................................................................................ 26 256 City Commission Staff Report for the Preliminary Plat of Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 Page 4 of 26 SECTION 1 - MAP SERIES Figure 1. Location Map Figure 2. Vicinity Map 257 City Commission Staff Report for the Preliminary Plat of Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 Page 5 of 26 Figure 3: Zoning classification: B-2, Community Business District Figure 4: Saccoccia/Lowe’s PUD area; Preliminary Plat area shown in red rectangle Site 258 City Commission Staff Report for the Preliminary Plat of Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 Page 6 of 26 Figure 5: Vicinity Map; subdivision Site noted in red Figure 6: Photo of the Site; view west from Sacco Drive Existing Lot 2A 259 City Commission Staff Report for Saccoccia Minor Subsequent Subdivision Preliminary Plat; 21430 Page 7 of 26 Figure 7: Home 2 Home approved hotel site plan for eastern half of existing Lot 2A Figure 8: Approved site plan for Home 2 Home hotel on east side of Lot 2A Note the 30 ft. wide pedestrian easement trail leading to the Sacco Drive sidewalk on Lot 2A1 and continues north to Baxter Lane. 20 ft. and 10 ft/wide mutual access easement from Baxter to new Lot 2A2 (see Condition 1b). 260 City Commission Staff Report for the Preliminary Plat of Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 Page 8 of 26 Figure 9: Proposed Preliminary Plat (12/02/21 plat revision) Note the 25’ wide trail corridor providing legal access to Lot 2A2 from the west and to and through the new Lot 2A1 to Sacco Drive on the east (see also Condition of Approval No. 1c). SECTION 2 – REQUESTED VARIANCES There are no variances requested with this subdivision application although the Applicant is seeking approval of an alternate legal and physical access to the new Lot 2A2 as part of this application. Please see Section 6, No. 6 on page 15 and No. 17.A on pages 19 and 20 below for details. SECTION 3 - RECOMMENDED CONDITIONS OF APPROVAL The following conditions of approval and code provisions are offered to satisfy City and relevant State requirements as well as site-specific mitigation for potential adverse impacts associated with development of the proposed subdivision. The conditions of approval are in addition to any required code provisions identified in this report. The conditions are specific to the preliminary plat application. Staff has considered the impacts as identified in the staff analysis and application Lot 1A Lot 2A Lot 2A1 Lot 2A2 261 City Commission Staff Report for the Preliminary Plat of Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 Page 9 of 26 materials and these conditions of approval are deemed reasonably related and roughly proportionate to the development of this subdivision. 1. BMC 38.400.090.B.2.c, Access and 38.220.070.A.7, Final Plat Submittal Requirements. The Applicant shall provide with the final plat submittal documents demonstrating the following: a. The legal and physical access to Lot 2A2 is properly shown and labeled on the final plat submittal; b. In order to provide legal and physical access to Lot 2A2, per BMC 38.400.090.B.2.c, an irrevocable 30-feet wide vehicular public access easement extending from the southern edge of the Baxter Lane right-of-way (ROW) and extending a minimum of 25-feet along the Lot 2A2 frontage, shall be shown on the plat sheet and shall be recorded prior to final plat approval; c. In order to provide legal and physical access to Lot 2A2, per BMC 38.400.090.B.2.c, a perpetual 25-feet wide trail corridor public access easement shall be shown, dimensioned and labeled on Lot 2A2 and it shall extend to the eastern boundary where it would connect to a minimum 6-feet wide pedestrian public access easement on Lot 2A1 that extends to Sacco Drive; both these easements shall be recorded prior to final plat approval; d. the Applicant shall record a mutual maintenance agreement between the owner(s) of Lots 2A1 and 2A2 prior to final plat approval and this maintenance shall include regular, appropriate snow removal to assure safe passage of pedestrians; and e. the Applicant shall submit with a final plat application an Improvement Plan for the improvement of the public access easement “alley” leading to Lot 2A2 which shall be approved by the City Engineer prior to final plat approval [see Section 6. B number 11 on page 17 below for details]. 2. BMC 38.220.070.A.7. Final Plat Submittal Requirements. The final plat must contain the following notations on the Conditions of Approval sheet: a. All public stormwater facilities not on property dedicated to the City of Bozeman shall be located within public drainage easements that provide for storm water facility maintenance responsibility by the property owners association. b. The following note shall be included in the Conditions of Approval sheet of the Final plat: “Due to known high groundwater conditions in the area, no basements will be permitted with future development of the site. No crawl spaces will be permitted with future development of the site unless a professional engineer registered in the State of Montana certifies that the lowest point of any proposed structure is located above the seasonal high groundwater level and provides supporting groundwater data to the City Engineering Department prior to the release of any building permit for the development. In addition, sump pumps are not allowed to be connected to the sanitary sewer system or the drainage system unless capacity is designed into the drainage system to accept the pumped water. Water from sump pumps may not be discharged on streets, such as into the curb and gutters, where they may create a safety hazard for pedestrians and vehicles.” 262 City Commission Staff Report for the Preliminary Plat of Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 Page 10 of 26 c. All downstream water user facilities will not be impacted by this subdivision. d. If water rights or cash-in-lieu of water rights, have not been provided with final plat, then water rights or cash-in-lieu must be provided with any future sketch plan, site plan development or applicable development application. e. The Site lies within a Special Street Lighting Improvement District (SLID). Street lights would be provided for the Home 2 Home hotel as part of that approved site plan. It is unknown at this point as to whether the public access “alley” to Lot 2A2 would require street lighting. The Applicant shall submit a document specifying that, in the event an SLID is not utilized for the completion of these improvements, the developer agrees to participate in an alternate financing method for the completion of the improvements on a fair share, proportionate basis as determined by square footage of property, taxable valuation of the property, traffic contribution from the development, or a combination thereof. The Applicant must provide a copy of the filed SID waiver prior to final plat approval. 3. BMC 40.04.700.A.4 - Stormwater management plans and comprehensive drainage plans shall: a. Prevent any off-site direct discharge of untreated stormwater and non-stormwater from development or redevelopment improvements. i. It appears a majority of Basin 1 will drain offsite. Provide sufficient detail to insure drainage will reach the proposed destination. b. Implement accepted BMPs to minimize impact of a development on existing offsite infrastructure and stormwater facilities. i. The Applicant has described the use of a pretreatment forebay for the existing wet detention basin. The proposed pretreatment forebay does not meet the following recommendations for pretreatment forebays in the Montana Post-Construction Storm Water BMP Design Guidance Manual. a. A barrier separating the pretreatment forebay and wetpool cell should be constructed to contain the forebay opposite of the inlet. b. A concrete bottom is recommended to facilitate sediment removal during maintenance. c. Provide a way to monitor sediment accumulation. c. Comply with section II of the City Design Standards, and chapter 38, article 23. i. The Applicant has described utilizing the existing Lowe’s detention pond to comply with this section. The Applicant has adequately demonstrated the subject property can be adequately served by the Lowes detention pond as designed. The stormwater design report for the Lowe’s PUD describes “the hydraulic capacity of the pond for stormwater runoff functions is the top 1.5 feet of the pond.” The water surface elevation is currently above the pond outlet as observed 12-24-2021 (a time of little to no runoff due to winter conditions). The existing condition of the pond does not allow for any storage of runoff from the subject property as proposed and therefore utilizing this pond in its current condition would not satisfy the requirements of Section II of the city Design Standards. The Applicant must provide a means of stormwater storage on site or provide maintenance or modification to the existing Lowe’s PUD pond to provide adequate storage for the subject property. 4. The subject property is located within the N 19th and Baxter Intersection Payback. The payback must be paid prior to Final Plat approval. 263 City Commission Staff Report for the Preliminary Plat of Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 Page 11 of 26 SECTION 4 - CODE REQUIREMENTS REQUIRING PLAT CORRECTIONS The following are procedural requirements not yet demonstrated by the plat and must be satisfied at the final plat application. 1. BMC 38.100.080.A. The Applicant is advised that unmet code provisions, or code provisions that are not specifically listed as conditions of approval, does not, in any way, create a waiver or other relaxation of the lawful requirements of the Bozeman Municipal Code or state law. 2. BMC 38.220.070. The Applicant shall submit with the application for final plat review and approval, a written narrative stating how each of the conditions of preliminary plat approval and noted code provisions herein have been satisfactorily addressed. This narrative shall be in sufficient detail to direct the reviewer to the appropriate plat, plan, sheet, note, covenant, etc. in the submittal. 3. BMC 38.410.130. Water Rights. Compliance with code requirements for water rights shall be met per Condition of Approval No. 2.d. The Applicant shall provide documentation of all water rights appurtenant to the proposed subdivision; e.g. previous estimates or actual payment -in-lieu of water rights, certified well logs, decrees or adjudications, etc. The Applicant must contact Griffin Nielsen with the City of Bozeman Engineering Department for any cash in lieu of water rights determination. 4. BMC 38.410.060.A. The final plat must provide all remaining preexisting and new utility and public access easements and they must be shown, dimensioned and properly labeled/described on each subdivision block of the final plat in their true and correct location. All easements indicated below must be provided on City standard easements templates. Drafts must be submitted with the final plat application for review and approval prior to final plat approval. Signed hard copies of the easements must be submitted to the City Engineering Department. Recorded easement numbers must be provided on the final plat prior to final plat approval. The Applicant may contact the review engineer to receive standard templates. a. The Applicant must provide a 25-foot wide perpetual public access trail easement through Lots 2A1 and 2A2 connecting the improved alley on the west boundary of Lot 2A2 through Lot 2A1 to Sacco Drive; and b. The Applicant must provide a 30-foot wide storm drain easement on Lot 2A2. 5. BMC 38.270.030. Prior to final plat approval, the Applicant must submit plans and specifications for water and sewer main extensions, streets, and storm water improvements for Lot 2A2which must be prepared and signed by a professional engineer (PE) registered in the State of Montana, which must be provided to and approved by the City Engineer. Water and sewer plans must also be approved by the Montana Department of Environmental Quality. The Applicant must also provide professional engineering services for construction inspection, post-construction certification, and preparation of Mylar record drawings. Construction shall not be initiated on the public infrastructure improvements until the plans and specifications have been approved and a preconstruction conference has been conducted. Building permits will not be issued prior to City acceptance of the site 264 City Commission Staff Report for the Preliminary Plat of Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 Page 12 of 26 infrastructure improvements unless all provisions set forth in Section 38.270.030.C of the Bozeman Municipal Code are met to allow for concurrent construction. 6. BMC 38.410.060.A. Easements. All Easements indicated below must be provided on city standard easements templates. Drafts must be prepared for review and approval by the city. Signed hard copies of the easements must be submitted to the city and recorded easement numbers must be shown on the final plat. The applicant may contact the reviewing engineer to receive standard templates. a. The applicant must provide the proposed ten foot utility easement (power, gas, communication, etc.) along the developments property frontage with Baxter Lane and Sacco Drive. b. The applicant must provide the proposed drainage easement for the prosed storm sewer crossing multiple lots. c. The applicant must provide the proposed pedestrian access (trail corridor) easement. This easement must be 25’ in width and provide a connection between public access points. d. The applicant must provide a public access easement over the existing mutual access easement along the western border of Lot 1A and Lot 2A2. This easement must extend along the western border of Lot 1A and at least 25 feet into proposed Lot 2A2 to meet lot access requirements. e. The division of Lot 2A into Lot 2A1 and 2A2 will create the proposed sewer service to lot 2A1 to cross lot lines. The applicant must provide a sewer service easement on Lot 2A2. This shall be a private easement. A recorded copy of the easement must be submitted and the recorded easement number shall be recorded on the Final Plat. 7. BMC 38.270.030, Completion of Improvements. If it is the developer’s intent to file the plat prior to the completion of all required improvements, an Improvements Agreement shall be entered into with the City of Bozeman guaranteeing the completion of all improvements in accordance with the approved preliminary plat information and conditions of approval. If the final plat is filed prior to the installation of all improvements, the developer shall supply the City of Bozeman with an acceptable method of security equal to 150 percent of the cost of the remaining improvements. 8. BMC 38.240.450. The Applicant is advised where public improvements are to be installed prior to Final plat Approval, the final plat of subdivision must contain a certificate of completion of public improvements. Prior to final plat approval, Sheet One certificates must list all completed and accepted improvements, if applicable. 9. BMC 38.240.530. When irrigation of public facilities are to be installed prior to final plat approval, the final plat of subdivision must contain a certificate of completion of water- related improvements. The certificate must list all completed and accepted improvements, 265 City Commission Staff Report for the Preliminary Plat of Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 Page 13 of 26 including but not limited to all irrigation system record drawings. This certificate must be provided on the final plat. 10. BMC 38.240.420. If there are liens or mortgages against the property, the appropriate Mortgagee certificate must be included. 11. The following comments pertain to areas of the project that do not currently meet code and must be addressed prior to Final Plat. The following comments must be addressed with future applications: a. DSSP Plans and Specification Review Policy – Plans, specifications, and submittals for public infrastructure improvements (water main) must be submitted to the City Engineering Department (engsubmittals@bozeman.net) for infrastructure review. b. DSSP Fire Service Line Standard – Plans for all fire service lines must be submitted to the City Engineering Department (engsubmittals@bozeman.net) for review. c. DSSP V.A.7.a - All connections to an existing water main will begin with a new valve. d. DSSP V.B.12 - Access Roads: A 12'-wide all-weather gravel access road, with turn- arounds if needed, shall be constructed to provide access to all sanitary sewer manholes and water main valves not located within a paved public or private street or parking lot. A temporary access road shall be constructed if water main valves are to be located outside of the proposed parking lot. e. The provided geotechnical report suggests corrosivity concerns. The Applicant shall specify corrosion protection or provide an analysis based on the DIPRA Design Decision Model showing protection is not needed prior to infrastructure approval. SECTION 5 - RECOMMENDATIONS AND FUTURE ACTIONS On November 23, 2021, and then again on January 24, 2023, the DRC determined that the application is adequate for continued review and found that application conforms to standards and is sufficient for approval with conditions and code provisions based on the staff analysis and findings described below in Section 6 of this report. Public hearing date for the City Commission is February 7, 2023 at 6:00 PM. The hearing will take place both in person and remotely using an online videoconferencing system. A remote link will be provided with the City Commission agenda. SECTION 6 - STAFF ANALYSIS AND FINDINGS Analysis and resulting recommendations are based on the entirety of the application materials, municipal codes, standards, and plans, public comment, and all other materials available during the review period. Collectively this information is the record of the review. The analysis is a summary of the completed review. Applicable Subdivision Review Criteria, Section 38.240.150.B, BMC. 266 City Commission Staff Report for the Preliminary Plat of Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 Page 14 of 26 In considering applications for subdivision approval under this title, the advisory boards and City Commission shall consider the following criteria and findings of fact: 1. Compliance with the survey requirements of Part 4 of the Montana Subdivision and Platting Act. The preliminary plat has been prepared in accordance with the survey requirements of the Montana Subdivision and Platting Act by a Professional Engineer registered in the State of Montana. As outlined in Code Provision Number 1, the final plat must comply with State statute, Administrative Rules of Montana, and the Bozeman Municipal Code. A conditions of approval sheet must be included with the final plat and updated with any additional required notations as required by Preliminary Plat conditions or code provisions 2. Compliance with the local subdivision regulations provided for in Part 5 of the Montana Subdivision and Platting Act. The final plat must comply with the standards identified and referenced in the Bozeman Municipal Code (BMC). The Applicant is advised that unmet code provisions, or code provisions that are not specifically listed as a condition of approval, does not, in any way, create a waiver or other relaxation of the lawful requirements of the Bozeman Municipal Code or State law. Sections 3 and 4 of this report identify conditions and code corrections necessary to meet all regulatory standards. Therefore, it is expected that upon satisfaction of all conditions and code corrections, the subdivision would comply with local subdivision regulations. 3. Compliance with the local subdivision review procedures provided for in Part 6 of the Montana Subdivision and Platting Act. The application was initially-received on October 20, 2021 and was deemed inadequate for further review. Revised application materials were received on November 28/2022 and December 2, 2022. The City deemed the application adequate for review on January 24, 2023. Public notice for the application began January 24, 2023 for the February 7, 2023 City Commission public meeting. BMC 38.240.140.a.2 delegates review of all minor subdivisions from a tract of record to the Community Development Director. Based on the recommendation of the Development Review Committee (DRC) and other applicable review agencies, as well as any public testimony received on the matter, the Community Development Director forwards the recommendation in this report to the City Commission who will make the final decision on the Applicant’s request. The final decision for a Minor Subsequent Subdivision Preliminary Plat with 5 or fewer lots must be made within 60 working days of the date it was deemed adequate for further review (January 24, 2023). Pursuant to BMC 38.240.100 the City Commission shall approve, conditionally approve or deny the subdivision application by March 24, 2023 unless there is a written extension from the Applicant, not to exceed one year. Public notice for this application was given as described in Appendix B beginning on January 24, 2023. On January 24, 2023, this major subdivision staff report was completed and forwarded to the City Commission with a recommendation of conditional approval. 267 City Commission Staff Report for the Preliminary Plat of Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 Page 15 of 26 Based on review of the Development Review Committee and the Department of Community Development all applicable regulations are met if all conditions and code requirements are satisfied. Pertinent code provisions and site specific requirements are included in this report for City Commission consideration in Sections 3 and 4. 4. Compliance with Chapter 38, BMC and other relevant regulations. Community Development staff and the DRC reviewed the preliminary plat against all applicable regulations and the application complies with the BMC and all other relevant regulations with conditions and code corrections. This report includes the Condition of Approval and required code provisions as recommended by the DRC for consideration by the City Commission to complete the application processing for final plat approval. With those conditions and code provisions met, all municipal water and sewer facilities would conform to the regulations outlined by the Montana Department of Environmental Quality and the requirements of the Design Standards and Specifications Policy and the City of Bozeman Modifications to Montana Public Works Standard Specifications. 5. The provision of easements to and within the subdivision for the location and installation of any necessary utilities. Code Provision No. 6 requires all easements, existing and proposed, to be accurately depicted and addressed on the final plat and in the final plat application. Public utilities must be located within dedicated street right of ways. Utility easements need to be provided and granted with the final plat in accordance with public and private design standards. 6. The provision of legal and physical access to each parcel within the subdivision and the notation of that access on the applicable plat and any instrument transferring the parcel. As noted above in Section 3 on page 9, Condition of Approval 1.b, the new Lot 2A2 is required to have legal and physical access from a public street or alley. The alternative method for providing such access is being proposed by the Applicant in which he would (1) record a public access easement along at least 25-feet of the Lot 2A2 frontage; (2) would improve that public access easement land to City alley standards; and (3) would provide a 25-feet wide perpetual public access easement within Lot 2A2 which would connect to the existing pedestrian easement on Lot 2A1 which connects to the Sacco Drive sidewalk. This alternate access would meet the standards of BMC 38.400.090.B.2.c. Documentation of compliance with adopted standards, 38.220.060 BMC. Staff offers the following summary comments on the documents required with Article 38.220.060, BMC. 268 City Commission Staff Report for the Preliminary Plat of Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 Page 16 of 26 1. Surface water. This proposed subsequent minor subdivision would utilize an existing detention pond serving both lots and located in the northeast corner of the subdivision. This pond would attenuate stormwater flows prior to discharging to the Walton’s Stream/Ditch. 2. Floodplains. There are no floodplains on the Site. 3. Groundwater. During the September 2021 investigation of the Site for the Home 2 Home hotel site plan, groundwater was encountered at a depth of 5.1 to 5.8 feet below grade. 4. Geology, Soils and Slopes. Beneath the 1-foot vegetative topsoil lie sandy lean clay soils with a high potential for compressibility. The site is relatively level and drains with sheet flor to the northwest. 5. Vegetation. In July 2019, the property consisted of an upland herbaceous community and a palustrine emergent wetland community. The upland herbaceous areas within the project were dominated by intermediate wheatgrass (Thinopyrum intermedium, NI), Canada thistle (Circium arvense, FAC), stickywilly (Galium aparine, FACU), prickly lettuce (Lactuca serriola, FACU), and hoary alyssum (Berteroa incana, NI). The palustrine emergent wetland within the project area was dominated by reed canarygrass (Phalaris arundinacea, FACW), Canada thistle, fringed willow herb (Epilobium ciliatum, FACW), and common spikerush (Eleocharis palustris, OBL). Much of the property was infested with noxious weeds such as Canada thistle hoary alyssum. 6. Wildlife. A field survey of the Site was conducted in July 2019 by Ms. Christine Pearcy, Environmental Scientist for Morrison Maierle, representing the Applicant. Although Mallard ducks and Red-winged blackbirds were observed in the wetland and creek areas of the Site, Ms. Pearcy found that no impacts to federally-listed endangered, threatened, proposed or candidate species of wildlife are anticipated to occur as a result of development of this subdivision. 7. Agriculture. Due to development in the area, no agricultural practices have been performed on the property for several years. An October 2021 evaluation of the Site for agricultural resources by Ms. Christine Pearcy, Environmental Scientist, with Morrison Maierle for the Applicant revealed: “The subject property has historically been used for growing hay when the property to the south was also in agricultural use. The northeast corner of the subject property appeared to have a manmade drainage running through it. A review of historic aerial imagery obtained from Google Earth revealed that the subject property has been managed for agriculture from at least as far back as 1985. The property to the south was developed in 2006, removing much of the hay field that was historically harvested. The subject property appeared to no longer be used for hay production since that time, but rather just shredded for maintenance purposes. A review of the Montana Natural Heritage Program’s statewide land cover data indicates the land use on the subject property as “Pasture/Hay”. Current observed land-use on the subject property is vacant land that may get shredded/mowed occasionally for maintenance. The property does not appear to be used for any agricultural purposes at this time and is overgrown with noxious weeds. A site plan for a Home 2 Suites Hotel has been approved for the Lot 2A1 portion of the property.” 8. The effect on agricultural water user facilities. A similar evaluation by Ms. Pearcy revealed: “No agricultural water user facilities are currently located on the subject property. Since no 269 City Commission Staff Report for the Preliminary Plat of Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 Page 17 of 26 agricultural water use facilities exist on the subject property, there will be no impact on these resources as a result of the project.” 9. Water/Sewer. Water and sewer systems exist to serve the subdivision. The approved hotel site plan for the new Lot 2A1 shows water and sanitary sewer service to that Site. Furthermore, when development of Lot 2A2 is proposed, the developer would extend water and sewer mains to that lot. Code Provision 4 requires the Applicant to submit plans for water and sewer main extensions, approved by the Montana Department of Environmental Quality, to be reviewed by the City. Code Provision 5 requires a City standard sewer easement where the sewer system is located. Building permits would not be issued prior to City acceptance of site infrastructure improvements, unless concurrent construction is requested and conditions allow. Water rights exist for the subject property. The 2007 transfer of water rights for the “parent” subdivision COS 407 meets the City’s water adequacy code BMC 38.410.130 to offset water demands attributable to this subdivision. 10. Stormwater Management. The subdivision must construct storm water management and water quality facilities conforming to standards of the Bozeman Municipal Code. The maintenance of the stormwater facilities are the responsibility of the property owner of each lot or that of a Property Owners Association (POA) if a regional pond is to be used. Inspection of installed facilities prior to final plat would verify that standards have been met. This proposed subsequent minor subdivision will be utilizing this existing detention pond and therefore, groundwater monitoring is not necessary. 11. Streets, roads and alleys. The 2020 Bozeman Community Plan/Growth Policy and subdivision standards require adequate connectivity of a development to the street grid. Access to the new Lot 2A1 would be taken from Baxter Lane, a designated collector street. Walkability, Transit and Bikeability. The Community Plan/growth policy encourages development to be walkable, which is defined in the Plan’s Appendix F Glossary as: Walkable. A walkable area has: • A center, whether it’s a main street or a public space. • People: Enough people for businesses to flourish and for public transit to run frequently. • Parks and public space: Functional and pleasant public places to gather and play. • Pedestrian design: Buildings are close to the street, parking lots are relegated to the back. • Schools and workplaces: Close enough that walking to and from home to these destinations is realistic. • Complete streets: Streets designed for bicyclists, pedestrians, and transit. The “parent” Lot 2A has a sidewalk along its Baxter Lane frontage and an approved hotel site plan would provide a sidewalk along its Sacco Drive frontage. The existing Lot 1A, which is developed with a credit union office building, extends a sidewalk to its southwestern boundary where the new Lot 2A2 would begin. The North 19th Trail is a paved shared use path with a segment lying along the 270 City Commission Staff Report for the Preliminary Plat of Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 Page 18 of 26 west boundary of both Lots 1A and the new Lot 2A2 and would remain. This shared use path also functions as a bike path which connects to an east-west bike lane along Baxter Lane. There is a Blue Line bus stop at N. 19th Avenue and Baxter Lane. With the complexity of features needed to create a walkable environment, no one site is likely to provide all the needed elements. According to the WalkScore.com algorithms, the site has a Walk Score of 38 out of 100 which denotes that the Site and area are car-dependent. It has a Transit score of 21 which denotes minimal transit service, and a Bike Score of 55, which denotes that the area is “bikeable”. Average walk score for the city as a whole is 48 out of 100. These values are provided by Walk Score, a private organization which presents information on real estate and transportation through walkscore.com. The algorithm which produces these numbers is proprietary. A score is not an indication of safety or continuity of services or routes. Scores are influenced by proximity of housing, transit, trails, commerce and services and expected ability, as determined by the algorithm, to meet basic needs without using a car. There are no adopted development standards relating to the walk score. A trip generation analysis was provided with the application in lieu of a traffic impact study and it found that the infrastructure that exists and is proposed for the project would service the development and no upgrades were proposed for any nearby intersections. 12. Non-municipal utilities. NorthWestern Energy would provide natural gas and electric service to the development. These facilities would be located in public utility easements along the roadways within the subdivision. Century Link and/or Charter Communications would provide cable, telephone, and fiber service to the development. These facilities would be located in public utility 271 City Commission Staff Report for the Preliminary Plat of Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 Page 19 of 26 easements along the roadways within the subdivision. The Preliminary Plat shows the location of the existing dry utilities near the proposed subdivision. 13. Land Use. The following table summarizes the proposed lots and land uses for this subdivision. 14. Parks and recreation facilities. This is a wholly commercial subdivision with no anticipated adverse impacts to area parks or recreation facilities. Parkland is not required for development within commercial developments. 15. Neighborhood Center. This is a two lot split of a commercially-zoned property. Pedestrian easements and corridors cross both lots. There is no anticipated impact to nearby neighborhood centers. 16. Lighting Plan. There is no lighting plan with this subdivision. A code-complying exterior lighting plan would be provided with any proposed development of either of the two new lots. The Home 2 Home hotel for Lot 2A has an approved lighting plan. 17. Miscellaneous. A. Legal and Physical Access. The provision of legal and physical access must be provided to each parcel within the subdivision per BMC Section 38.400.090.B.2.c. Condition of Approval Numbers 1.a, 1.b and 1.ca assures satisfaction of this code provision. Access to the new Lot 2A1 (currently Lot 2A) would be provided from a 30-foot wide public access and utility easement from Baxter Lane into the Site. This access easement is shared with the adjacent Lot 1A to the west which is developed with a financial institution office building. This access easement would remain for the new Lot 2A1. However, the splitting off of the land of Lot 2A2 from 272 City Commission Staff Report for the Preliminary Plat of Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 Page 20 of 26 the larger Lot 2A would remove legal and physical access to this lot because the remaining 20-foot wide “shared access easement” connecting this lot to Baxter Lane does not meet the standards for legal and physical access of BMC 37.400.090.B.2. Therefore, the conditions of Condition 1a, 1b and 1c must be met. Figure 8: Shared access easement to the new Lot 2A1 (formerly Lot 2A) 273 City Commission Staff Report for the Preliminary Plat of Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 Page 21 of 26 Figure 9: Access easements to the new Lot 2A2 per Condition No. 1 Section 38.400.090, Access, requires all lots to have legal and physical access to a public or approved private street or an approved alley and a greenway corridor or trail corridor with public access. Simmental Way terminates at the north side of Baxter Lane and there is no publicly-accessible right- of-way (ROW) road or alley on the south side of Baxter Lane that could provide access to the new Lot 2A2. There is an existing 20-feet and 10-feet wide “mutual access easement” to the current Lot 1A and the southwest portion of the current Lot 2A. This combined 30-feet wide mutual access easement along the western boundary of the new Lot 2A2 does not provide public access to that land. Subsection B.2.c requires “25-feet of frontage on an improved alley and a greenway corridor or trail corridor with public access. This option may require additional improvements to the alley to 20’ 274 City Commission Staff Report for the Preliminary Plat of Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 Page 22 of 26 accommodate emergency access, snow removal and storage, and the provision of utilities. The alley may also require signage for the provision of emergency services.” The 30-foot wide mutual access easement along the west side of the new Lot 2A2 could provide legal and physical access to that lot if (1) a perpetual public access easement were recorded on this land for a minimum of 25-feet frontage; and (2) this public access travelway improved to City alley standards connected to a perpetual publicly-accessible greenway corridor or trail corridor through both Lots 2A1 and 2A2 to Sacco Drive. Condition of Approval No. 1 would require (1) this legal and physical access to be properly shown and labeled on the final plat submittal; (2) a proper perpetual public access easement and maintenance agreement between the owner(s) of Lots 2A1 and 2A2 be recorded prior to final plat approval; and (3) an Improvement Plan for the public improvement to the western travelway to Lot 2A2 be approved by the City Engineer prior to final plat approval. B. Educational Facilities. This is a wholly commercial subdivision with no school impacts. C. Police/Fire Services. The area of the subdivision is within the service area of both these departments. No concerns regarding service availability have been identified. D. Parklands. As this is a wholly commercial subdivision, no parklands are required per BMC 38.420.010. E. The effect on the natural environment. A field survey of the Site was conducted in July 2019 by Ms. Christine Pearcy, Environmental Scientist for Morrison Maierle, representing the Applicant. Although Mallard ducks and Red-winged blackbirds were observed in the wetland and creek areas of the Site, Ms. Pearcy found that no impacts to federally-listed endangered, threatened, proposed or candidate species of wildlife are anticipated to occur as a result of development of this subdivision. Figure 9: Wetland areas of the Lot 2A2 hotel site. In July 2019, the property consisted of an upland herbaceous community and a palustrine emergent wetland community. The upland herbaceous areas within the project were dominated by 275 City Commission Staff Report for the Preliminary Plat of Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 Page 23 of 26 intermediate wheatgrass (Thinopyrum intermedium, NI), Canada thistle (Circium arvense, FAC), stickywilly (Galium aparine, FACU), prickly lettuce (Lactuca serriola, FACU), and hoary alyssum (Berteroa incana, NI). The palustrine emergent wetland within the project area was dominated by reed canarygrass (Phalaris arundinacea, FACW), Canada thistle, fringed willow herb (Epilobium ciliatum, FACW), and common spikerush (Eleocharis palustris, OBL). Much of the property was infested with noxious weeds such as Canada thistle hoary alyssum. The site is in a potential area of high groundwater which may negatively impact future structures or cause illicit discharges into the sanitary sewer and over burden the surface drainage system. Condition No. 12(b) prohibits crawl spaces or basement without first consulting a professional engineer certified in the State of Montana who would certify that groundwater would not harm these structures. This requirement will protect both future structure owners from future hazards of flooding and lessen burdens on the public from illicit discharges. BMC 38.550.070 requires use of wells or surface water rights to irrigate parks and open spaces rather than municipal water supply. The development would irrigate common areas and ROW boulevard strip landscaping with wells. A wetlands delineation study was conducted for the Site in 2019 for the hotel site plan which revealed two wetland areas on that Site. However, according to that study, the U.S. Fish and Wildlife Service maintains the National Wetlands Inventory (NWI), which serves as a publicly available resource that provides detailed information on the abundance, characteristics, and distribution of U.S. wetlands. According to the NWI database, no features are located within the hotel site (USFWS 2019). One emergent wetland feature was located on the adjacent property to the east. F. The effect on public health and safety. With the recommended conditions of approval and required plat corrections, the subdivision is not expected to adversely impact public health and safety. The intent of the regulations in Chapter 38 of the Bozeman Municipal Code (BMC) is to protect the public health, safety and general welfare. The subdivision has been reviewed by the DRC which has determined that it is in general compliance with the BMC standards with recommended conditions and code provisions. Conditions deemed necessary to ensure compliance have been noted throughout this staff report. Code provision No.1 requires full compliance with all applicable BMC code requirements. All subdivisions must be reviewed against the following criteria listed in 76-3-608.3.b-d, Montana Code Annotated (MCA) and as a result, the Department of Community Development has reviewed 276 City Commission Staff Report for the Preliminary Plat of Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 Page 24 of 26 this application against the listed criteria and further provides the following summary from Applicant submittal materials and requirements. It is noted that all infrastructure would meet City standards. 18. Affordable Housing. This is a wholly commercial subdivision and the affordable housing provisions of the BMC do not apply. APPENDIX A --PROJECT SITE ZONING AND GROWTH POLICY How the proposed subdivision advances the adopted growth Policy. Zoning Designation. The intent of the B-2 Community business district is to provide for a broad range of mutually supportive retail and service functions located in clustered areas bordered on one or more sides by limited access arterial streets. Multi-household dwellings, townhouses, and apartments are allowed as a secondary use due to their complementary nature and ability to enhance the walkability of these districts. Design standards emphasizing pedestrian oriented design are important elements of this district. Use of this zone is appropriate for arterial corridors, commercial nodes, and/or areas served by transit. The intent of the 2005 Saccoccia/Lowe’s PUD (Project No. Z-05128) was to allow a multi-phased and multi-commercial development that allowed all uses permitted in the M-1, Light Industrial and B-2, Commercial Business districts; that allowed building heights up to 48 feet; to allow concurrent construction of infrastructure improvements; to relax the pole sign standards and exterior light fixture standards of the Bozeman Municipal Code; and to allow Lowe’s store to exceed the 75,000 sq. ft. maximum by 90,765 sq.ft. Staff Comment: The proposed division of the 5.53-acre Lot 2A into two lots would allow the owner to develop the portion of the lot that the Home 2 Home hotel developer does not wish to use. This western 2.04-acres would become a buildable commercial lot once legal and physical access and public improvements are provided to the new Lot 2A2. This would facilitate development of a commercial “in-fill” site; one that does not rely on visibility from a public street. Land Use Designation. Adopted Growth Policy Designation: The Future Land Use Map of the Bozeman Community Plan designates the subject property to develop as “Community Commercial Mixed Use”. Theme 6: A City powered by its creative, innovative, and entrepreneurial economy. EE-1.1: Support the goals and objectives outlined in the Bozeman Economic Development Strategy. Bozeman Economic Development Strategy Update, 2016. 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. 277 City Commission Staff Report for the Preliminary Plat of Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 Page 25 of 26 3. Workforce: Support education and workforce development initiatives to provide businesses with qualified workers. 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. 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. Staff Comment: The creation of a new, small commercial lot would facilitate in-fill development for a small business that is not reliant on street visibility yet may benefit from the proximity to pedestrian trails and a hotel business. APPENDIX B – NOTICING AND PUBLIC COMMENT Notice was provided at least 15 and not more than 45 days prior to the City Commission public meeting. Pursuant to BMC 38.220.420, notice was provided by posting the site, mailing by certified mail to the Applicant and adjacent property owners and by first class mail to all other owners within 200 feet on January 24, 2023. Content of the notice contained all elements required by Article 38.220., BMC. No public comment has been received at the time of the writing of this staff report. APPENDIX C - OWNER INFORMATION Owner/Applicant: Saccoccia Lands II, LLC, 1234 Springhill Road, Belgrade, MT 59714 Representative: Matt Ekstrom of Morrison Maierle, Inc., engineers Staff Report By: Susana Montana, Senior Planner. 278 City Commission Staff Report for the Preliminary Plat of Minor Subsequent Subdivision of Lot 2A of the Corrected Amended Plat of Minor Subdivision 407C of Lots 1 and 2 of the Saccoccia Minor Subdivision 407 Page 26 of 26 Staff Engineer: Karl Johnson, PE ATTACHMENT LINK Application Form Subdivision Plat Sheets 1 through 3 The full application and file of record can be viewed digitally at: https://gisweb.bozeman.net/Html5Viewer/?viewer=planning Find the property on the map and click on the parcel. Select the “Project Documents Folder” link and navigate to the Preliminary Plat application #21430. You may also view the application at the Community Development Department at 20 E. Olive Street, Bozeman, MT 59715. 279 Memorandum REPORT TO:City Commission FROM:David Fine, Economic Development Program Manager Brit Fontenot, Economic Development Director Jeff Mihelich, City Manager SUBJECT:Resolution 5478 A Resolution Approving the Cloverleaf Project in the Northeast Urban Renewal District as an Urban Renewal Project; Making Findings with with Respect Thereto and Approving the Use of Tax Increment Revenues to Reimburse Eligible Costs Thereof and Approving a Related Development Agreement MEETING DATE:February 7, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION:I move to adopt Staff's findings in the Commission Memorandum and Staff Report and approve Resolution 5478. STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a mechanism to encourage economic development. BACKGROUND:Please see attached Commission Memorandum and Staff Report. UNRESOLVED ISSUES:Please see attached Commission Memorandum and Staff Report. ALTERNATIVES:As suggested by the City Commission. FISCAL EFFECTS:Please see attached Commission Memorandum and Staff Report. Attachments: Commission Memorandum for Resolution 5478.docx Resolution 5478 approving Cloverleaf project.docx Staff Report to NURB Cloverleaf Development v2 F.docx 213051-DRAFT MEMO-TIF Review-Bronkens Development_1- 24-22.pdf BZN Development Agreement.Cloverleaf.v2.docx Cloverleaf.Height Restriction.v4.docx Cloverleaf.Affordable Housing Covenant.v2.docx Report compiled on: January 30, 2023 280 Commission Memorandum REPORT TO:Honorable Mayor and City Commission FROM:David Fine, Economic Development Program Manager Brit Fontenot, Economic Development Director Jeff Mihelich, City Manager SUBJECT:Public Hearing for Resolution 5478 - A Resolution Approving a Project in the Northeast Urban Renewal District, Known as Cloverleaf, as an Urban Renewal Project; Making Findings with Respect Thereto and Approving the Use of Tax Increment Revenues or Tax Increment Revenue Bonds to Reimburse Eligible Costs Thereof and Approving a Related Development Agreement MEETING DATE:February 7, 2023 AGENDA ITEM TYPE:Action RECOMMENDED MOTION: I move to adopt Staff's findings in the Commission Memorandum and the Staff Report to the Northeast Urban Renewal Board and approve Resolution 5478. BACKGROUND: The attached Staff Report to the Northeast Urban Renewal Board (“Board”) contains significant detail about this project and the requested incentive. Please refer to the Staff Report for this detail. At their January 17, 2023 meeting, the Board reviewed the Developer’s application for tax increment financing (TIF) assistance and unanimously recommended that the City Commission designate the Wildlands project as an urban renewal project and provide TIF assistance in the amount of up to $2,210,481 to cover the eligible costs of the project. Staff negotiated a development agreement for the consideration of the City Commission to implement this recommendation. Resolution 5478 designates the Cloverleaf Project as an Urban Renewal Project and authorizes the City Manager to sign the proposed Development Agreement. The Resolution approves using tax increment revenues to pay or reimburse Cloverleaf, LLC, as the developer of the project for up to $2,210,481 in certain eligible costs of associated public infrastructure and demolition of existing structures. These costs are detailed in Exhibit “C” of the Development Agreement. Pursuant to the proposed Development Agreement, the City agrees to reimburse 281 the Developer for the eligible costs using tax increment generated by the project (“Project Generated Tax Increment”) until the Developer has been reimbursed $2,210,481, or 12 fiscal years, whichever comes first. Affordable Housing.The Development Agreement includes a commitment by the developer to create 14 affordable and workforce housing units. Eleven (11) units of housing would meet affordability standard of being affordable to households making 80% of the area median income (AMI). A previous Development Agreement for the Wildlands Development required the construction of at least 3 units of workforce housing at another property controlled by Outlaw Real Estate Partners. This project delivers on that commitment: The project will include an additional 3 units of housing that are affordable to residents making 120% of AMI. The recording of these affordable housing covenants is a condition of the developer receiving any TIF Assistance. All of these units would be deed restricted to require long-term (30 year) affordability. The agreement also requires the developer to contract with an affordable housing agency to “provide that a third-party nonprofit or government entity with experience in managing affordable housing units will manage the rental or sale” of the affordable units. Public Infrastructure. The project addresses long-term urban renewal plan goals to address statutory conditions of blight by reconstructing, or bringing up to City standards, the sections of Cottonwood St., Ida Ave., and Plum Ave., adjacent to the site. The developer is providing the upfront capital to make this major investment in public infrastructure and would be reimbursed over 12 years using net new taxable value generated by the project. Height Restriction. As part of Development Agreement, the Developer is entering into a 30 year covenant that runs with the land regardless of ownership, restricting the height of new development on the property to 50 feet or 4 stories, whichever is less, with a 10% allowance for “elevator or stair penthouses or similar features so long as such features are set back from the edge of the structure by at least 5 feet to reduce their visibility from the ground level”. The proposed project includes 3 story townhomes and a 3 story apartment building with a roof deck on the fourth level. As a condition of the Development Agreement, the developer risks the loss of the TIF incentives if the covenant restricting height is not recorded. The proposed incentive request of $$2,210,481 is consistent with the goals of the Northeast Urban Renewal Plan. With a project cost of $45.2M this represents a ratio of private to public investment of 22:1. This produces an outstanding ROI for the District. In order to ensure that the level of assistance makes the project feasible, but does not provide unreasonable returns to the developer, staff hired Economic and Planning Systems, Inc. (EPS) to provide a third party assessment of the development pro forma. Staff contracts for this component of the review process to assess the reasonableness of each Applicant’s incentive request. EPS concluded their analysis and found that the Applicant did demonstrate a significant financing gap for the project. EPS’ “Bozeman URA TIF Request Review: Bronken’s Property Redevelopment,” is attached for review. 282 REQUIRED FINDINGS: The Montana Urban Renewal Law requires, as a criterion for approval of an urban renewal project, that the City Commission make the following findings. These findings are included in Resolution 5478 in Section 3. Staff’s makes the conclusions regarding these findings. a.A workable and feasible plan exists for making available adequate housing for the persons who will be displaced from their housing by the Project; No persons are displaced by the project. The site of the project is currently occupied by an industrial use that is already relocating. b.The Plan and the Project conform to the Bozeman Community Plan or parts thereof for the City as a whole; The Project was found by Staff and the Northeast Urban Renewal Board to conform with the Northeast Urban Renewal Plan (the “Plan), and the Plan has been found by the Bozeman City Commission to be in conformance with the Bozeman Community Plan. c.The Plan and the Project will afford maximum opportunity, consistent with the needs of the City as a whole, for the rehabilitation or redevelopment of the District by private enterprise; The Project represents a significant investment by private enterprise in the redevelopment on the District. d.Taking into account the use of tax increment revenues or the proceeds of tax increment revenue bonds to pay or reimburse the Developer for all or a portion of the Eligible Costs, there is expected to be a sound and adequate financial program for the financing of the Project; and The Development Agreement only calls for reimbursing the Developer with tax revenue that is actually generated by the project, which represents a sound and adequate financial program. e.The Project constitutes an urban renewal project within the meaning of the Act and the Plan. The Project was found by Staff and the Northeast Urban Renewal Board to conform to the Northeast Urban Renewal Plan (the “Plan), and the Project meets the requirements for an Urban Renewal Project under the Act. FISCAL EFFECTS: The Development Agreement stipulates that the City will reimburse Developer for Eligible Costs not-to-exceed $2,210,481. Pursuant to the proposed Development Agreement, the City would agree to reimburse the Developer for the eligible costs only after the project has achieved final occupancy and begun making tax payments, and then, would only reimburse the Cloverleaf, LLC 283 using 95% of the tax increment generated by the project (“Project Generated Tax Increment”) until the Developer has been reimbursed $2,210,481, or for the life of the tax increment provision, whichever comes first. Future budgets for the District would need to include appropriations related to these payments in order to meet the City’s obligations under this Development Agreement. 284 RESOLUTION NO. 5478 RESOLUTION APPROVING A PROJECT IN THE NORTHEAST URBAN RENEWAL DISTRICT, KNOWN AS THE CLOVERLEAF PROJECT,AS AN URBAN RENEWAL PROJECT; MAKING FINDINGS WITH RESPECT THERETO AND APPROVING THE USE OF TAX INCREMENT REVENUES TO REIMBURSE ELIGIBLE COSTS THEREOF AND APPROVING A RELATED DEVELOPMENT AGREEMENT BE IT RESOLVED by the City Commission (the “Commission”) of the City of Bozeman, Montana (the “City”), as follows: Section 1 Recitals. 1.01.Under the provisions of Montana Code Annotated, Title 7, Chapter 15, Parts 42 and 43, as amended (the “Act”), the City is authorized to create urban renewal areas, prepare and adopt an urban renewal plan therefor and amendments thereto, undertake urban renewal projects therein, provide for the segregation and collection of tax increment with respect to property taxes collected in such areas, and apply tax increment revenues derived from projects undertaken within the urban renewal area to pay eligible costs. 1.02. Pursuant to the Act and Ordinance No. 1655, adopted on November 28, 2005 (the “Ordinance”), the Commission created the Northeast Urban Renewal District (the “District”) and approved the Northeast Urban Renewal District Plan (the “Plan”)as an urban renewal plan in accordance with the Act, which Plan provides for the segregation and collection of tax increment revenues with respect to the District. 285 Resolution 5478, Approving a Project in the Northeast URD Known as the Cloverleaf Project 2 1.03. Cloverleaf, LLC (the “Developer”) proposes to undertake construction of a mixed- use development, generally consisting of demolition of existing improvements constituting the Bronken Distributing Center; construction of approximately 100,000 square feet of mixed use (primarily residential) improvements, parking spaces, common open spaces along with related infrastructure and utility improvements; and related improvements (collectively, the “Project”) on land located in the District. The Developer intends that 10% of the residential units to be developed as part of the Project will be maintained as housing affordable to persons with an income of 80% of the area median income. The Developer has requested that the City use tax increment revenues of the District to reimburse the Developer with respect to certain eligible costs of the Project, including demolition of existing structures, public improvements including curb, gutter and sidewalk improvements, and public and utility infrastructure, as well as impact fees, cash in lieu of water rights and fees and charges related to installing fiber optic cable (the “Eligible Costs”). 1.04. On February 7, 2023, a duly noticed public hearing was held on the question of approving the Project as an urban renewal project under the Act and the Plan and the use of tax increment revenues to reimburse the Developer for Eligible Costs and all persons appearing were given an opportunity to speak at the public hearing. Section 2 Approval of the Project as an Urban Renewal Project. The Commission hereby approves the Project as an urban renewal project under the Act and the Plan. The Project, including the Eligible Costs, is contemplated by and within the scope of the Plan, and the Eligible Costs are eligible for tax increment financing under the Act. Section 3 Findings. The Commission hereby finds with respect to the Project as follows: 286 Resolution 5478, Approving a Project in the Northeast URD Known as the Cloverleaf Project 3 a.no persons will be displaced from their housing by the Project; b.the Plan and the Project conform to the Bozeman Community Plan or parts thereof for the City as a whole; c.the Plan and the Project will afford maximum opportunity, consistent with the needs of the City as a whole, for the rehabilitation or redevelopment of the District by private enterprise; d.taking into account the use of tax increment revenues to reimburse the Developer for all or a portion of the Eligible Costs, there is expected to be a sound and adequate financial program for the financing of the Project; and e.the Project constitutes an urban renewal project within the meaning of the Act and the Plan. Section 4 Development Agreement; Use of Tax Increment. 4.01. Staff of the City’s Economic Development Department and the Developer have negotiated a Development Agreement, the form of which is attached hereto as Exhibit A. The Development Agreement is hereby approved in substantially the form attached. The City Manager, or in the event of his absence or disability, his designee, is hereby authorized and directed to finalize, approve, execute and deliver to the Developer the Development Agreement, substantially in the form attached as Exhibit A, with such changes as such officer shall deem necessary or appropriate. The execution and delivery by an appropriate officer of the City of the Development Agreement shall be conclusive as to the approval of such officer of the terms of the Development Agreement. 4.02. The Commission hereby approves the use of tax increment revenues to reimburse the Developer for Eligible Costs of the Project, subject to the terms and conditions of the Development Agreement. 287 Resolution 5478, Approving a Project in the Northeast URD Known as the Cloverleaf Project 4 PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 7th day of February, 2023. ___________________________________ CYNTHIA ANDRUS Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 288 CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE I, the undersigned, being the duly qualified and acting recording officer of the City of Bozeman, Montana (the “City”), hereby certify that the attached resolution is a true copy of Resolution No. 5478 entitled: “RESOLUTION APPROVING A PROJECT IN THE NORTHEAST URBAN RENEWAL DISTRICT AS AN URBAN RENEWAL PROJECT; MAKING FINDINGS WITH RESPECT THERETO AND APPROVING THE USE OF TAX INCREMENT REVENUES TO REIMBURSE ELIGIBLE COSTS THEREOF AND APPROVING A RELATED DEVELOPMENT AGREEMENT” (the “Resolution”), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Commission of the City at a regular meeting on February 7, 2023, and that the meeting was duly held by the City Commission and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. I further certify that, upon vote being taken on the Resolution at said meeting, the following Commission members voted in favor thereof: ; voted against the same: ; abstained from voting thereon: ; or were absent: . WITNESS my hand and seal officially this 7th day of February, 2023. (SEAL) __________________________________ MIKE MAAS City Clerk 289 Resolution 5478, Approving a Project in the Northeast URD Known as the Cloverleaf Project A-1 EXHIBIT A [Form of Development Agreement] 290 1 Wildlands Mixed Use Development | Staff Report To:Northeast Urban Renewal Board From:David Fine, Economic Development Program Manager for Housing and Development Brit Fontenot, Economic Development Director Meeting Date: January 19, 2022 TIF Assistance Program Overview The Bozeman City Commission created the Midtown Tax Increment Finance (TIF) Assistance Program in 2017 to support redevelopment activity and advance the goals of the 2015 Midtown Urban Renewal Plan. The City Commission provided direction to Staff to create complementary programs for other Urban Renewal Districts in the City. The Northeast Urban Renewal Board voted unanimously to recommend just such a program for the Northeast Urban Renewal District (NURD) at their November 2, 2021 meeting. Staff is reviewing this application based on the Board’s recommended criteria and framework. The Northeast TIF Assistance Program supports projects that contribute to the following seven goals of the Northeast Urban Renewal Plan: 1) Ensure the health, safety, and security of the District, 2) Balance Commerce and Livability within the Mixed-Use Framework, 3) Honor the Unique Character and Vitality of the District, 4) Public Open Space is Essential to a Healthy and Appealing Urban Environment, 5) The Costs of Projects and Programs shall be Weighed Against their Benefits to the District, 6) The City shall not Limit its Vision for the District Improvements to Monies Available Solely through the TIF Funding, 7) Projects shall Consider Impacts on Adjacent Neighborhoods. These goals, as required by statute, focus on mitigating blighting conditions in the urban renewal area. Each of these seven goals is further refined with particular criteria for a total of twelve categories that can receive points. Point awards demonstrate specific compliance with the criteria, but are not the only factors the board may consider in recommending an incentive award. For example, the board may also consider new taxable value created by the project, whether the project would be feasible without a public incentive, and the project’s provision of amenities and services that contribute to walkability, quality of life in the district and surrounding neighborhoods, and provision of community housing. Staff Recommendation Staff Recommends providing TIF Assistance to the Project. The Northeast TIF Assistance Program exists to promote projects that meet its criteria, drive growth in taxable value for the long-term benefit of the wider community, and create demand for market driven redevelopment. At this phase in the Northeast URD’s redevelopment lifecycle, few projects containing the targeted criterion elements are financially feasible, “but for” TIF incentives. Incentives may create 291 2 the potential for higher returns to mitigate higher risk, which will likely attract investment that would not occur without these incentives. The project remediates conditions that contribute to blight on the property. The Cloverleaf development will demolish aging beer distribution warehouses and eliminate gravel parking lots and junk storage that is visible from the public right of way. Removing the industrial use from the neighborhood eliminates longstanding complaints from the neighbors about noise and vehicular conflicts with distribution trucks. The project also plans to bury electrical and telecommunications utilities, in keeping with the goals of the urban renewal plan. Removing these hazards from the property creates a clear community benefit in the form of addressing blight remediation, a core goal of urban renewal activity. The Project includes 14 units of long-term affordable housing. Upon closing on the property, Outlaw Real Estate Partners agrees to place a restrictive covenant on the land requiring that at least 11 units will be available for lease at 80% of the area median income, in keeping with the definition of affordability in the City’s Affordable Housing Ordinance (AHO). Outlaw Real Estate Partners previously committed to place a legally binding commitment to develop three units of workforce housingon this site at closing on the property as part of their Development Agreement for the Wildlands Project. They will develop these units for sale or lease at a rental or sales price affordable to households making 120% of the area median income. The Community Housing Action Plan (CHAP) classifies units at 120% AMI as “Entry Level Subsidized Housing”. As such, the commitment of attainable units in a future NURD project represents a good-faith effort by the Applicant to serve community priorities. The proposed incentive request of $2,210,481 is consistent with the goals of the Northeast Urban Renewal Plan. With a project cost of $45.2M this represents a ratio of private to public investment of 22:1. A ratio of at least 10:1 is recommended for multifamily projects. This new investment produces an outstanding ROI for the District. The Cloverleaf project creates significant new taxable value. A primary goal of districts which employ a tax increment financing provision is to facilitate new investment and the creation of new taxable value for the long-term benefit of the broader community. The Applicant projects that the project will generate approximately $200,400 in net new taxes, resulting in a payback period of 11 years on the investment of tax increment funds. For context, we estimated the total value of tax increment collections for the NE URD in FY22 at $270,000. A project of this significance would have a major impact on growth of the tax base and on the ability of the District to implement future improvements. The Cloverleaf project received points on criteria representing 6 out of 7 of the goals of the Northeast Urban Renewal Plan, creates a significant return on investment that can fund future public infrastructure improvements in the District, and includes a commitment to create 14 housing units with long-term affordability. Given the satisfaction of these public policy goals, Staff recommends approval of the full funding request. 292 3 Criteria for TIF Assistance Ensure the Health Safety and Security of the District 1.Infrastructure Improvement:Infrastructure Improvement: The project will repair, replace, or improve outdated or insufficient infrastructure i.The project will reconstruct Ida, Cottonwood and Plum with curb, gutter, sidewalks and lighting. The project also improves walkability by adding a car and pedestrian connection through the center of the site. Existing water and sewer lines on Plum and a small section of Cottonwood will be re-routed and upgraded to City standards as part of the project.6/6 2.Multimodal Transportation:The project incorporates infrastructure that facilitates safe, efficient, and convenient access of the district for all modes of transportation i.The project enhances pedestrian travel and safety by adding a north-south sidewalk connection and adding sidewalks on 3 sides of the project. 3/4 3.Public Utilities:The project will incorporate public utilities in a way so that they are not visually or physically obtrusive i.The project buries and screens public utilities. 2/2 Balance Commerce and Livability within the Mixed-Use Framework 4.Mix of Uses:The project incorporates mixed use development that promotes livability. i.The development envisions live-work units in the townhomes and apartments along Peach Street, providing more housing opportunities and choices. 0/4 5.Community Housing:The project includes affordable housing units. For the purposes of this criterion, an affordable housing unit is defined as a unit that requires no more than 33 percent of a household’s income for housing payments based on a designated percentage of area median income (AMI). Eligible rental units shall be affordable at 80% AMI and eligible for sale units shall be affordable at 120% AMI. Condominium units are eligible as for sale units. Additional points may be awarded for projects that provide on-site housing for the proposed workforce. Eligible rental dwellings to be constructed in the proposed residential development shall be provided by long-term contractual obligation to an affordable housing agency, for a period of not less than 20 years, with a written plan assuring ongoing affordability pricing and eligibility monitoring, and annual re-certification. The city's affordability guidelines and subsequent revisions establish affordability and eligibility. To receive 3 points under this criterion, 10% of all units must meet the affordability criteria. To receive 6 points under this criterion, 20% of all units must meet the affordability criteria. i.Fourteen (14) units are being designated for long-term affordability. The Developer is designating 11 units or 10% of the total number of units for long-term affordability into the project as rentals for households making 80% of the area median income for 30 years in keeping with the standards of the City’s Affordable Housing Ordinance (AHO). The project also includes 3 units of housing that will be sold or rented at a price that is affordable to households making 120% of the Area Median Income (AMI), what 293 4 Bozeman’s Community Housing Action Plan calls “Entry Level Subsidized Housing”. Pursuant to a previous development agreement, these units will be affordable for 20 years. As a result, 12.7% of the development is deed restricted for long-term affordability.4/6 Honor the Unique Character and Vitality of the District 6.Character:The physical design, materials, and massing of the project reflects the community’s values of durability, flexibility, and simplicity, and add vitality to the neighborhood. i.Staff concurs with the Applicant’s description of how the project meets the Character criterion 2/2: The physical design, materials, and massing of the project reflects the community’s values of durability, flexibility, and simplicity, and add vitality to the neighborhood. These new residential buildings have the opportunity to add more context and neighborhood language through form and materiality. In designing this development we purposely kept the scale to three to four stories and building typologies were broken up to maintain a harmonious relationship with the surrounding buildings. For materiality, to create a sense of importance, brick was used on the first floor of the apartment building. The brick allows for a historic feel and relevance to adjacent buildings and other more prominent buildings around town and the area. As the materials continue vertically, the second to fourth floors are a blend of metal and a low-maintenance wood product that silvers without streaks over time. The townhomes will have a mix of wood and fiber cement siding, creating a material link between the single-family homes and commercial buildings in the area. These selections allow the buildings to age gracefully with a soft palette that blends into the uniqueness of the Northeast Neighborhood. The overall building shapes create a dynamic form within the site and promote more activity on the street surrounding and within the site without overpowering the neighbors in scale and proximity. The placement of the buildings emphasizes pedestrian mobility and seeks to keep vehicular access from detracting from the user’s experience, by being placed in alleys and a semi-underground level.(p.12) 7.Sustainability:The project’s design and construction practices incorporate environmentally sustainable strategies and elements i.The project incorporates solar panels, low maintenance exterior materials, and a high level of insulation to maintain energy efficiency. The project also includes EV ready parking spaces into the project.1/2 294 5 Public Open Space is Essential to a Healthy and Appealing Urban Environment 8.Open Space:The project designates new land for parks and open space i.The project adds street trees along the Peach St., Cottonwood St. Ida Ave and Plum Ave. frontages. The project adds east-west walkable open space between the townhomes that is accessible to the public. The project also adds a new pedestrian connection north-south, between Peach St. and Cottonwood St.2/4 9.Landscaping:The project improves landscaping in existing public spaces i.The project enhances the landscaping along the Peach St., Plum Ave, Cottonwood St., and Ida Ave. frontages. 2/2 The Costs of Projects and Programs shall be Weighed Against their Benefits of the District 10.Return on Investment:The investment of public funds in the project results in a leverage ratio of at least 10:1 for residential projects; 8:1 for commercial/industrial projects; and/or 5:1 for living wage jobs. i.The Applicant is requesting $2,210,481 in TIF Assistance on a project with a total cost of $45.3M, a 22:1 ratio of private to public investment. This produces an outstanding ROI for the District.4/4 The City shall not Limit its Vision for the District Improvements to Monies Available Solely through the TIF Funding 11.Public-Private Partnerships:This project involves and/or will encourage public-private partnerships that will add value to the District and its investments. i.The Applicant did not provide enough information to award points for this criterion. 0/4 Projects shall Consider Impacts on Adjacent Neighborhoods 12.Complimentary to Adjacent Neighborhoods:The project is complimentary to adjacent neighborhoods, not just the Northeast Urban Renewal District.2/2 i.The project provides neighborhood scale residential space, including a substantial community housing component. The project is also primarily a 3 story project, with the addition of an elevator tower and rooftop deck, in keeping with the character of the neighborhood. The project received more than half of the available points and received points on criteria meeting 6 of 7 urban renewal plan goals. Total Points: 28/42 295 M E M O R A N D U M To: David Fine, City of Bozeman From: Brian Duffany and Colton Harguth, Economic & Planning Systems Subject: Bozeman URA TIF Request Review: Bronkens Property Redevelopment Date: January 24, 2023 This memorandum provides a summary of the analysis Economic & Planning Systems (EPS) has completed relating to the request for tax increment financing (TIF) for the Bronkens property redevelopment. EPS has been contracted by the City of Bozeman to complete an evaluation of developer requests for TIF and evaluate key project assumptions, including construction costs, sales revenues, and operating revenues and expenditures, as well as overall developer return. The purpose of this analysis is to evaluate if the assumptions presented by the developer are within a reasonable range of current market conditions, costs, and typical rates of return. This memorandum provides an overview of the evaluation criteria, key inputs, and findings. Approach As part of the TIF application process, each development team is required to submit a formal proposal that includes a project overview and key project assumptions. These materials include a summary of the development program, construction costs, eligible costs, sales revenues, and ongoing revenue and expenditures assumptions in a project pro forma. Using this information as a starting point, EPS has structured a static pro forma that summarizes this information as well as several other key project metrics such as project return. This analysis evaluates the performance of the project using a Yield on Cost (YOC) methodology (NOI/total costs) to evaluate the overall project return. 296 Memorandum: Bronkens TIF Request Review Page | 2 Development Program The Bronkens project, located at 707 East Peach Street, involves the redevelopment of a 2.1-acre site currently utilized for beverage distribution. The project will contain 110 housing units including 42 one-bedroom Townhome units and 68 multifamily units, as shown in Table 1. The multifamily units will include 8 market rate two-bedroom units, 46 market rate one-bedroom units, 3 affordable units at 120% of the area median income (AMI), and 11 units at 80% of the AMI. The affordable units comprise approximately 12.7 percent of the total project units. Rents are projected to range from $1,590 per month for affordable units at 80% AMI to $3,500 per month for two-bedroom market rate units, equating to a weighted average of $3.03 per square foot. Table 1. Project Development Program Project Costs The development and construction budget totals $45.3 million as shown in Table 2 and summarized below. • Land – The 2.1-acre parcel of land was acquired for approximately $6.1 million or $61 per rentable square foot, accounting for roughly 13.5 percent of total project costs. • Hard Costs – Hard costs are estimated at $32.2 million or $321 per rentable square foot, accounting for roughly 71.1 percent of total costs. • Soft Costs – Soft costs are estimated at $7.0 million or $70 per rentable square foot, accounting for roughly 15.5 percent of total costs. The total project budget, including the percentage of total development costs by category, is in EPS’ opinion within the typical ranges for multifamily development in Bozeman or other high-cost areas. Description Units % of Total Unit SF RSF Rent/Unit/MO Rent/SF/MO Residential A1: 2 Bd/1 Bth 8 7.3%1,150 9,200 $3,500 $3.04 A2: 1 Bd/1 Bth 46 41.8%700 32,200 $2,500 $3.57 AFF: 120% AMI 3 2.7%700 2,100 $2,400 $3.43 AFF: 80% AMI 11 10.0%700 7,700 $1,590 $2.27 TH - 1 Bd/1 Bth 42 38.2%1,170 49,140 $3,250 $2.78 Total/Average 110 100.0%912 100,340 $2,765 $3.03 Source: Developer Financial Documents; Economic & Planning Systems Z:\Shared\Projects\DEN\213051-Bozeman MT TIF Econ Dev Support\TIF Reviews\Bronkens\[213051 - Bronken TIF Review_1-9-23.xlsx]T-Development Program 297 Economic & Planning Systems, Inc. Page | 3 Table 2. Project Costs TIF Request The developer has requested $2.1 million in financial assistance to offset the public improvement and redevelopment costs, as shown in Table 3, consistent with the TIF Policy on eligible costs. Table 3. TIF Request by Improvement Type Net Operating Income At full stabilization, the annual revenue generated from the multifamily and townhomes aspect of the project is estimated at $3.7 million, as shown in Table 4. An additional $132,000 per year is generated through resident utilities, which is estimated utilizing a Ratio Utility Billing System (RUBS). Operating expenses are estimated at roughly $961,539 and include taxes, insurance, and management and maintenance expenses. Operating expenses fall within the expected range of 25 to 35 percent of gross income. Total net operating income (NOI) for the project is estimated at $2.7 million per year. Description Total Cost per RSF % of Total Land Costs $6,100,000 $60.79 13.5% Hard Costs $32,226,745 $321.18 71.1% General Hard Costs $32,226,745 $321.18 $0.71 Soft Costs $7,008,519 $69.85 15.5% General Soft Costs $5,738,442 $57.19 12.7% Carry Costs $1,270,076 $12.66 2.8% Total Construction Costs $39,235,273 $391.02 86.5% Total Costs $45,335,264 $451.82 100.0% Source: Developer Financial Documents; Economic & Planning Systems Z:\Shared\Projects\DEN\213051-Bozeman MT TIF Econ Dev Support\TIF Reviews\Bronkens\[213051 - Bronken TIF Review_1-9-23.xlsx]T- Cost Summ Improvement Type TIF Request Demolition of Existing Structures $175,000 Sidewalks, curbs, gutters, and alley $986,787 CILWR $0 Public/Utility Infrastructure $0 Communications Infrastructure Fiber $60,000 Impact Fees $894,923 Total TIF Request $2,116,709 Source: Developer Financial Documents; Economic & Planning Systems Z:\Shared\Projects\DEN\213051-Bozeman MT TIF Econ Dev Support\TIF Reviews\Bronkens\[213051 - Bronken TIF Review_1-9-23.xlsx]T-TIF Request 298 Memorandum: Bronkens TIF Request Review Page | 4 Table 4. Net Operating Income (NOI) Yield on Cost EPS evaluated the project’s financial returns using a yield on cost (YOC) methodology. YOC is a metric of return utilized by developers to evaluate a project based on estimated construction costs and potential NOI. To determine the YOC, NOI is divided by the total project cost. To achieve project feasibility, the YOC needs to be equal to or higher than the YOC hurdle rate. The hurdle rate is equal to the market capitalization rate (cap rate) plus an additional 100 to 150 basis points (bps) to account for development risk. Cap rates are used to value existing income streams, similar to a stock’s price-to-earnings (P/E) ratio and are calculated by dividing a project’s NOI by its total market value. The cap rate for multifamily development in Bozeman was determined by referencing CoStar, a commercial real estate database, and was selected at 5.5 percent, and the YOC hurdle rate utilized in the analysis is estimated at 7.0 percent. As shown in Table 5, the YOC is equal to 5.91 percent without the TIF award, which is below the YOC hurdle rate. If TIF is awarded, the project generates a YOC of 6.14 percent, which is still modestly below the hurdle rate. Description Total % of Total Revenue % of PGI Multifamily $3.03 per mo.$3,650,280 100.0% A1: 2 Bd/1 Bth $3.04 per mo.$336,000 9.2% A2: 1 Bd/1 Bth $3.57 per mo.$1,380,000 37.8% AFF: 120% AMI $3.43 per mo.$86,400 2.4% AFF: 80% AMI $2.27 per mo.$209,880 5.7% TH - 1 Bd/1 Bth $2.78 per mo.$1,638,000 44.9% Other Income $132,000 3.6% Ratio Utility Billing System (RUBS)$100 per unit $132,000 3.6% Less: Vacancy (5.0% per year)-$109,508 -3.0% Effective Gross Income $3,672,772 100.6% Expenditures % of EGI Operating Expenses -$961,539 26.2% Total Operating Expenses -$994,539 27.1% Net Operating Income $2,678,233 72.9% Source: Developer Financial Documents; Economic & Planning Systems Lease Rate Z:\Shared\Projects\DEN\213051-Bozeman MT TIF Econ Dev Support\TIF Reviews\Bronkens\[213051 - Bronken TIF Review_1-9- 23.xlsx]T-Noi Summ 299 Economic & Planning Systems, Inc. Page | 5 Project hurdle rates can be subjective based on individual developers’ perception of market risk and their financial requirements. In strong markets with low risk, the required rates of return can be lower. The mix of debt and equity used to finance a project also affects the required rates of return. In EPS’ opinion, the 6 to 7 percent YOC shown here is within typical ranges and does not represent a windfall to the developer. Table 5. Yield on Cost Description Total YOC Hurdle Rate 7.00% Net Development Cost Target $38,260,472 UNLEVERAGED METRICS WITHOUT SUBSIDY Development Costs Total Construction Cost $45,335,264 Less: Net Development Cost Target $38,260,472 Financing Gap -$7,074,792 Yield on Cost (YOC) without Grant 5.91% UNLEVERAGED METRICS WITH SUBSIDY Development Costs Total Development Cost $45,335,264 Less: Present Value of Grant $1,700,000 Less: Net Development Cost Target $38,260,472 Financing Gap -$5,374,792 Yield on Cost (YOC) with Grant 6.14% Source: Developer Financial Documents; Economic & Planning Systems Z:\Shared\Projects\DEN\213051-Bozeman MT TIF Econ Dev Support\TIF Reviews\Bronkens\[213051 - Bronken TIF Review_1-9-23.xlsx]T-YOC Summ 300 DRAFT 01/25/2023 DEVELOPMENT AGREEMENT (Cloverleaf) This DEVELOPMENT AGREEMENT (this “Agreement”) is dated as of [______________] by and among CLOVERLEAF, LLC (the “Developer”), OUTLAW REAL ESTATE PARTNERS, LLC (“Outlaw”) and the CITY OF BOZEMAN, MONTANA, 121 N. Rouse Ave., Bozeman, Montana 59771 (the “City”). The Developer, Outlaw and the City are each individually referred to herein as a “Party” and collectively as the “Parties.” RECITALS: WHEREAS, under the provisions of Montana Code Annotated, Title 7, Chapter 15, Parts 42 and 43, as amended (the “Act”), the City is authorized to create urban renewal areas, prepare and adopt an urban renewal plan therefor and amendments thereto, undertake urban renewal projects therein, provide for the segregation and collection of tax increment with respect to property taxes collected in such areas, and apply tax increment revenues derived from projects undertaken within the urban renewal area to pay eligible costs; WHEREAS, pursuant to the Act and Ordinance No. 1655 adopted by the City Commission of the City (the “City Commission”) on November 28, 2005, the City has created the Northeast Urban Renewal District (the “District”) as an urban renewal district and has approved the Northeast Urban Renewal Plan (the “Plan”) as an urban renewal plan in accordance with the Act, which Plan provides for the segregation and collection of tax increment revenues with respect to the District; WHEREAS, the Developer proposes to undertake the construction of a mixed-use development generally consisting of demolition of existing improvements constituting the Bronken Distributing Center; construction of approximately 100,000 square feet of mixed use (primarily residential) improvements, parking spaces, common open spaces along with related infrastructure and utility improvements; and related improvements, the estimated budget for which is set forth on Exhibit A hereto (the “Project”), on land located at 707 East Peach Street in Bozeman, Montana, which is legally described on Exhibit B hereto (the “Land”), which Outlaw, [as the controlling member of the Developer,] owns; WHEREAS, Outlaw and the City are both parties to a Development Agreement dated January 25, 2022, relating to the development of a project by Wild Peach, LLC (the “Wild Peach Development Agreement”), pursuant to which Outlaw agreed, as a condition to the City’s reimbursement obligations under the Wild Peach Development Agreement, that it would record certain restrictive covenants relating to affordable housing (as further described in the Wild Peach Development Agreement, the “Wild Peach Restrictive Covenants”) against the Land; and WHEREAS, in addition, as a condition to the City’s reimbursement obligations under this Agreement, Outlaw intends to agree to record additional restrictive covenants relating to affordable housing against the Land (as further described herein, the “Restrictive Covenants”), which are separate from and in addition to the Wild Peach Restrictive Covenants, and certain restrictions on the height of any construction on the Land (the “Height Restrictions”); and 301 2 WHEREAS, pursuant to Resolution No. [______________] adopted on February 7, 2023, after a duly called and noticed public hearing, the City Commission approved the Project as an urban renewal project under the Plan and the Act and authorized the use of tax increment revenue of the District to reimburse the Developer for certain eligible costs of the Project described more particularly on Exhibit C hereto (the “Eligible Costs”) in the maximum amount of $[2,210,480], subject to the terms and conditions of this Agreement; and WHEREAS, certain of the Eligible Costs are costs paid by the Developer in connection with the design, engineering, work, construction, materials, equipment, and other improvements eligible to be reimbursed, which improvements are identified as such on Exhibit C hereto (the “Infrastructure Improvements”), and certain of the Eligible Costs are costs to be paid by the Developer as fees or charges pertaining to the Project, which fees and charges are identified as such on Exhibit C hereto (the “Project Fees and Charges”); and WHEREAS, the City Commission has determined to reimburse the Developer for Eligible Costs solely out of a portion of the Project Generated Tax Increment, as further described herein; and WHEREAS, the Parties desire to enter into this Agreement which sets forth the obligations and commitments of the Parties with respect to the Project, including the Eligible Costs consisting of the costs of the Infrastructure Improvements and of the Project Fees and Charges. NOW, THEREFORE, the City and the Developer, pursuant to the Act, each in consideration of the representations, covenants and agreements of the other, as set forth herein, mutually represent, covenant and agree as follows: Section 1.Definitions; Rules of Interpretation; Exhibits. 1.1.Definitions. For all purposes of this Agreement, except as otherwise expressly provided or unless the context clearly requires otherwise, the following terms have the meanings assigned to them, respectively: “Act” means Montana Code Annotated, Title 7, Chapter 15, Parts 42 and 43, as amended or supplemented. “Affordable Housing Covenants” means the covenants of Outlaw set forth in Section 3.12 hereof. “Agreement” means this Development Agreement, dated as of _____________, by and among the City, the Developer and Outlaw, as it may be amended or supplemented from time to time in accordance with the terms hereof. “City” means the City of Bozeman, Montana, or any successors to its functions under this Agreement. “City Commission” means the governing body of the City. 302 3 “Developer” means Cloverleaf, LLC, a Montana limited liability company, and its successors and assigns in accordance with and as permitted under this Agreement. “District” means the Northeast Urban Renewal District, an urban renewal district created by the Ordinance pursuant to the Act, as such may be enlarged or reduced from time to time in accordance with the Act. “DOR” means the State of Montana Department of Revenue. “Eligible Costs” means the costs identified as such on the attached Exhibit C. “Environmental Laws and Regulations” means and includes the Federal Comprehensive Environmental Compensation Response and Liability Act (“CERCLA” or the “Federal Superfund Act”) as amended by the Superfund Amendments and Reauthorization Act of 1986 (“SARA”), 42 U.S.C. §§ 9601 et seq.; the Federal Resource Conservation and Recovery Act of 1976 (“RCRA”), 42 U.S.C. §§ 6901 et seq.; the Clean Water Act, 33 U.S.C. § 1321 et seq.; and the Clean Air Act, 42 U.S.C. §§ 7401 et seq., all as the same may be from time to time amended, and any other federal, state, county, municipal, local or other statute, code, law, ordinance, regulation, requirement or rule which may relate to or deal with human health or the environment including without limitation all land use, zoning, and stormwater control regulations as well as all regulations promulgated by a regulatory body pursuant to any statute, code, law, ordinance, regulation, requirement or rule. “Fiscal Year” means the period commencing on the first day of July of any year and ending on the last day of June of the next calendar year, or any other twelve-month period authorized by law and specified by the Commission as the City’s fiscal year. “Height Restrictions” means the restrictive covenants to be recorded against the Land regarding the maximum height of development on the Land, a form of which is attached as Exhibit D hereto. “Indemnified Parties” has the meaning given to it in Section 7.1. “Infrastructure Improvements” means the design, engineering, work, construction, materials, equipment, and the other improvements, the costs of which form a part of the Eligible Costs described as such in Exhibit C hereto, as the same may be amended or supplemented from time to time, in accordance with the terms hereof. “Land” has the meaning given to it in the recitals hereof. “Land Use Regulations” means all federal, state and local laws, rules, regulations, ordinances and plans relating to or governing the development or use of the Land or the Project. “Milestone” of “Milestones” has the meaning given in Section 3.4 hereof. “Milestone Date” or “Milestone Dates” has the meaning given in Section 3.4 hereof. 303 4 “Ordinance” means Ordinance No. 1655 adopted by the City Commission on November 28, 2005. “Original Resolution” means Resolution No. 4801 adopted by the City Commission on May 22, 2017, pursuant to which the City issued the Series 2017 Bond. “Outlaw” means Outlaw Real Estate Partners, LLC, a Montana limited liability company, and its successors and assigns in accordance with and as permitted under this Agreement. “Person” means any individual, corporation, limited liability company, partnership, limited liability partnership, joint venture, association, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. “Prevailing Wage Rates” means the Montana Prevailing Wage Rate for public works projects as published from time to time by and available from the Montana Department of Labor and Industry, Research and Analysis Bureau, P.O. Box 1728, Helena, Montana 59624, telephone number (800) 541-3904. “Project” means the facilities to be constructed by the Developer on the Land pursuant to this Agreement, as described in the recitals hereto. “Project Fees and Charges” means those fees and charges pertaining to the Project that form a part of the Eligible Costs described as such in Exhibit C hereto, as the same may be amended or supplemented from time to time, in accordance with the terms hereof. “Project Generated Tax Increment” means the property taxes paid by the Developer with respect to the Project, as further described in Section 5.1(f) hereof. “Restricted Units” has the meaning set forth in Section 3.12 hereof. “Restrictive Covenants” has the meaning set forth in Section 3.12 hereof. “Series 2017 Bond” means the Tax Increment Urban Renewal Revenue Bond, Series 2017 (Northeast Urban Renewal District), issued in the principal amount of $1,446,000 pursuant to the Original Resolution. “State” means the State of Montana. “Tax Increment” means the amount received by the City pursuant to the Act from the extension of levies of Taxes (expressed in mills) against the incremental taxable value (as defined in the Act) of all Taxable Property, and shall include all payments in lieu of Taxes attributable to the incremental taxable value and all payments received by the City designated as replacement revenues for lost Tax Increment. “Taxable Property” means all real and personal property located in the District and subject to Taxes, including land, improvements and equipment. 304 5 “Taxes” means all taxes levied on an ad valorem basis by any Taxing Body against the Taxable Property (exclusive of the six mill levy for university purposes levied by the State), and shall include all payments in lieu of taxes received by the City with respect to Taxable Property. “Taxing Body” means the City; the County of Gallatin, Montana; High School District No. 7 (Bozeman), Gallatin County, Montana; Elementary School District No. 7 (Bozeman), Gallatin County, Montana; the State; and any other political subdivision or governmental unit that levies or may hereafter levy or cause to be levied Taxes against property within the District. “Unavoidable Delay” means a delay resulting from a cause over which the Party required to perform does not have control and which cannot or could not have been avoided by the exercise of reasonable care, including but not limited to, acts of God, accidents, war, civil unrest, embargoes, strikes, unavailability of raw materials or manufactured goods, litigation, pandemics, epidemics, labor shortages, unusually inclement weather and the delays of the other Party or its contractors, agents or employees in the performance of their duties under or incident to this Agreement. “Wild Peach Development Agreement” means the Development Agreement, dated as of January 25, 2022, by and among the City, Outlaw, and Wild Peach, LLC. “Wild Peach Restrictive Covenants” means the restrictive covenants relating to affordable housing that Outlaw is required to record against the Land as a condition to the City’s reimbursement obligations under the Wild Peach Development Agreement, as more specifically described therein. 1.2.Rules of Interpretation. (a) The words “herein,” “hereof” and words of similar import, without reference to any particular section or subdivision, refer to this Agreement as a whole rather than to any of its particular sections or subdivisions. (b) References to any particular section or subdivision hereof are to the section or subdivision of this Agreement in its original signed form, unless otherwise indicated. (c) The word “or” is not exclusive but is intended to contemplate or encompass one, more or all of the alternatives conjoined. 1.3.Exhibits. The following Exhibits are attached to and by reference made a part of this Agreement: Exhibit A: Project Costs Exhibit B: Description of the Land Exhibit C: Eligible Costs Exhibit D: Form of Height Restrictions 305 6 Exhibit E: Milestones Exhibit F-1: Form of Developer Certificate to Establish Amount of Eligible Costs Exhibit F-2: Form of Developer Certificate Regarding Project Generated Tax Increment and Request for Reimbursement Exhibit G: Nondiscrimination and Equal Pay Affirmation Exhibit H: Sample Affordable Housing Pricing Matrix Exhibit I: Form of Restrictive Covenants Section 2.Representations. 2.1.City Representations. The City hereby represents as follows: (a)Pursuant to the Act, and after a public hearing duly called and held, the City by the Ordinance has duly created the District. (b)Pursuant to the Original Resolution, the City has issued and there is outstanding the Series 2017 Bond. In the Original Resolution, the City reserved the right to issue obligations having a lien on Tax Increment subordinate to the lien of the Series 2017 Bond (“Subordinate Obligations”). Any obligation of the City to make payments under this Agreement constitutes a Subordinate Obligation under the Original Resolution, subordinate and junior in all respects to the repayment of the Series 2017 Bond and the replenishment of the debt service reserve account for the Series 2017 Bond, and subject to all other terms and conditions of the Original Resolution. (c)Pursuant to Resolution No. [____] of the City Commission, the City Commission authorized the execution and delivery by the City of this Agreement and approved the use of a portion of the Project Generated Tax Increment, if available, to reimburse the Eligible Costs in a total amount not to exceed $[2,210,480]. (d)The DOR has advised the City that the base taxable value (as defined in the Act) of the District is $423,054. 2.2.Developer Representations. The Developer hereby represents as follows: (a)The Developer is a Delaware limited liability company, duly formed, validly existing and in good standing under the laws of the State of Delaware and is duly qualified to do business in the State of Montana. The Developer has the power to enter into this Agreement and by all necessary corporate action has duly authorized the execution and delivery of this Agreement. 306 7 (b)The Developer has good marketable title to the Land, free and clear of all liens, encumbrances and defects except such as do not materially affect the value of the Land or materially interfere with the use made and proposed to be made of the Land by the Developer. (c)The Developer has the financial capability or commitments to complete the Project at a cost not less than $[45,337,452]. (d)The Developer is not aware of any facts the existence of which would cause the Developer to be in violation in any material respect of any Environmental Laws and Regulations applicable to the Project or the Infrastructure Improvements. The Developer has not received from any local, state or federal official any notice or communication indicating that the activities of the Developer have been, may be or will be in violation of any Environmental Laws and Regulations applicable to the Project or the Infrastructure Improvements. (e)Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions hereof is prohibited or limited by, conflicts with or results in a breach of the terms, conditions or provisions of the certificate of formation, partnership agreement or operating agreement of the Developer or any evidence of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. (f)There is no action, suit, investigation or proceeding now pending or, to the knowledge of the Developer, threatened against or affecting the Developer or its business, operations, properties or condition (financial or otherwise) before or by any governmental department, commission, board, authority or agency, or any court, arbitrator, mediator or grand jury, that could, individually or in the aggregate, materially and adversely affect the ability of the Developer to complete the Project. (g)The Developer acknowledges and agrees that the sole source of funds for reimbursing the Developer under this Agreement is the Project Generated Tax Increment. The Developer further acknowledges and agrees the amount of Tax Increment in the District is dependent upon a number of variables, including, without limitation, the taxable value of the Project, the number of mills levied by Taxing Bodies, and then-prevailing state laws regarding computation of Tax Increment, and that the City has no control over such variables. If Tax Increment in the District decreases, the City may need to use all Project Generated Tax Increment to pay debt service on the Series 2017 Bond or to replenish the debt service reserve account for the Series 2017 Bond, and there may not be Project Generated Tax Increment available to reimburse the Developer for Eligible Costs, despite the Developer having paid all property taxes then due with respect to the Project. The Developer agrees that if Project Generated Tax Increment is required to be used to pay debt service or replenish the debt service reserve account for the Series 2017 Bond such that the Project Generated Tax Increment is not available to reimburse the Developer, the City shall have no obligation to pay to the Developer the amount of reimbursement described in Section 4. The Developer agrees that such event shall not constitute a default by the City hereunder. In such event, if Developer has not received any reimbursement but has recorded the Restrictive Covenants described in Section 3.12, the City shall consent to the termination of the Restrictive Covenants. 307 8 2.3.Outlaw Representations. Outlaw hereby represents as follows: (a)Outlaw is a Delaware limited liability company, duly formed, validly existing and in good standing under the laws of the State of Delaware and is duly qualified to do business in the State of Montana. Outlaw has the power to enter into this Agreement and by all necessary corporate action has duly authorized the execution and delivery of this Agreement. (b)Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions hereof is prohibited or limited by, conflicts with or results in a breach of the terms, conditions or provisions of the certificate of formation, partnership agreement or operating agreement of Outlaw or any evidence of indebtedness, agreement or instrument of whatever nature to which Outlaw is now a party or by which it is bound, or constitutes a default under any of the foregoing. (c)There is no action, suit, investigation or proceeding now pending or, to the knowledge of Outlaw, threatened against or affecting Outlaw or its business, operations, properties or condition (financial or otherwise) before or by any governmental department, commission, board, authority or agency, or any court, arbitrator, mediator or grand jury, that could, individually or in the aggregate, materially and adversely affect the ability of Outlaw to comply with and perform the Affordable Housing Covenants. Section 3.Developer Undertakings; Outlaw Undertakings. 3.1.Construction and Maintenance of Project. The Developer hereby agrees and commits to the City that it will diligently prosecute to completion the construction of the Project in accordance with this Agreement, the site plan submitted to the City and all applicable federal, State and local laws, rules, regulations, ordinances and plans relating to or governing the development or use of the Project, including applicable Land Use Regulations and Environmental Laws and Regulations. The Developer agrees and commits to the City that construction of the Project shall be completed by [December 31, 2025], subject to Unavoidable Delays. The total estimated costs of the Project are shown on Exhibit A hereto. The Developer has the financial capacity to complete the Project, and the Developer agrees to pay all costs thereof. If there is an increase in the costs of the Project from that shown on Exhibit A hereto that cannot be covered by the contingency amount, the Developer shall notify the City of the increase and submit additional evidence in a form acceptable to the City that the Developer has the financial capacity to cover such additional costs and complete the Project. At all times during the term of this Agreement, the Developer will operate and maintain, preserve and keep the Project or cause the Project to be operated, maintained, preserved and kept for the purposes for which it was constructed, and with the appurtenances and every part and parcel thereof, in good repair and condition. The Developer agrees to permit the City and any of its officers, employees or agents access to the Land for the purpose of inspection of all work being performed in connection with the Project; provided, however, that the City shall have no obligation to inspect such work. 3.2.Preparation, Review and Approval of Construction Plans. In connection with the Project, the Developer, at its sole expense, shall prepare and submit construction plans, drawings, 308 9 and related documents for each portion of the Project to the appropriate City officials for architectural, engineering or land use review and written approval or permits, and the Developer shall include this Agreement and the forms of the Height Restrictions and the Restrictive Covenants in the materials submitted to City officials for review. The Developer acknowledges that no review or approval by City officials hereunder may be in any way construed by the Developer to replace, override or be in lieu of any required review, inspection, or approval by the City Planning Division, or any other building construction official review or approvals required by any State laws or local ordinances or regulations. Nothing contained in this Agreement indicates or evidences that the City has approved or will approve the Project or any portion thereof. This Agreement does not affect or limit the City’s regulatory powers with regard to the Project, including, without limitation, those relating to building permits or other permits or the payment of fees. As further described in Section 7.1, the City shall have no liability and the Developer shall hold the City harmless with respect to any increases in costs of the Project related to or arising out of delays resulting from the City’s regulatory actions or approvals. 3.3.Construction of the Infrastructure Improvements. The Developer shall acquire, install, construct or otherwise provide the Infrastructure Improvements. The Developer acknowledges and agrees that the City is not responsible for acquiring, installing, constructing or otherwise providing the Infrastructure Improvements. The estimated costs of the Infrastructure Improvements, which form a part of the Eligible Costs, are shown on Exhibit C hereto. 3.4.Milestones of the Project. Certain steps in the development of the Project are listed on Exhibit D attached hereto (collectively, the “Milestones”; each a “Milestone”), together with the dates by which the Developer is obligated to complete the Milestones (collectively, the “Milestone Dates”; each as it relates to a particular Milestone, the “Milestone Date”). The Developer acknowledges and agrees that the City in reserving or offering to make available Tax Increment to pay or reimburse the Eligible Costs necessarily means that certain Tax Increment is not available to pay or reimburse other undertakings or costs for the benefit of the District and that the City reasonably expects additional Tax Increment as a result of completion of the Project. The Developer acknowledges and agrees that conditioning the availability of Project Generated Tax Increment to pay or reimburse the Eligible Costs on completion or satisfaction of the Milestones by the corresponding Milestone Dates is reasonable. If the Developer is unable to complete or satisfy a Milestone by the corresponding Milestone Date, the Developer shall make a formal written request to the Director of Economic Development, with appropriate supporting material, to extend the Milestone Date and, as appropriate, subsequent Milestone Dates. The Director of Economic Development may, in his or her sole discretion, (i) determine whether such extension is appropriate and, if so, fix a new and superseding Milestone Date and also adjust other subsequent Milestone Dates, along with any other terms or conditions, or (ii) refer the request to the City Commission to either approve the extension and adjust other Milestone Dates, as appropriate, or, in its sole discretion, terminate this Agreement, in which case the City will have no obligation to reimburse the Developer hereunder. If this Agreement is terminated as described in this Section 3.4 and the Developer has not received any reimbursement but has recorded the Restrictive Covenants described in Section 3.12, the City will consent to the termination of the Restrictive Covenants. 3.5.Prevailing Wage Rates; Competitive Bidding. The Developer understands that the City is obligated to follow certain laws with respect to the expenditure of public funds, which 309 10 includes Tax Increment. The Developer agrees to comply with laws that govern City contracting obligations, including public procurement laws relating to all of the Infrastructure Improvements, such as, without limitation, laws and rules regarding prevailing wage and solicitation of work on a competitive basis. Without limitation of the foregoing, the Developer agrees that in the awarding of contracts for the Infrastructure Improvements (i) it will, and it will cause its contractor to, publicly bid competitively contracts for each component of the Infrastructure Improvements, and (ii) through its contract with its contractor, it will, in addition to the requirements of Sections 3.9 and 3.10, require its contractor to, pay the Prevailing Wage Rates on such contracts related to the Infrastructure Improvements. The Developer will provide to the City all documentation requested to verify the compliance of the Developer and its contractor with the foregoing requirements. Failure of the Developer or its contractor to bid competitively contracts for each component of the Infrastructure Improvements or to require contracts entered into directly with contractors or sub-contractors to include provisions requiring the contractor or sub-contractor to pay the Prevailing Wage Rates on the work related to the Infrastructure Improvements will be considered a breach of this Agreement and the City will be entitled, at its discretion and without obligation, to exercise any and all measures to assure compliance and retroactive compensation plus interest to workers not paid in accordance with this Agreement, and recovery of any penalty or fine assessed by the State attributed to any failure to pay the Prevailing Wage Rates. Additionally, the Developer acknowledges that a violation of these requirements may, in the City’s sole discretion, cause the Infrastructure Improvements to be ineligible for the application of Tax Increment, in which case the City will have no obligation to reimburse or pay the Developer hereunder. 3.6.Utilities. The Developer shall not interfere with, or construct any improvements over, any public street or utility easement without the prior written approval of the City. All connections to public utility lines and facilities shall be subject to approval of the City and any private utility company involved. The Developer at its own expense shall replace any public facilities or utilities damaged during the Project by the Developer or its agents or by others acting on behalf of or under their direction or control of the Developer. 3.7.Permits and Compliance With Laws. The Developer will obtain, in a timely manner, all required permits, licenses and approvals, and will meet all requirements of all local, state and federal laws, rules and regulations which must be obtained or met in connection with the acquisition and construction of the Project, including the Infrastructure Improvements. Without limiting the foregoing, the Developer will request and seek to obtain from the City or other appropriate governmental authority all necessary land use, zoning, and building permits. The Developer will comply in all material respects with all Environmental Laws and Regulations applicable to the construction, acquisition, and operation of the Project, including the Infrastructure Improvements, will obtain any and all necessary environmental reviews, licenses or clearances under, and will comply in all material respects with, Environmental Laws and Regulations. In addition, the Developer shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances related to worker safety including but not limited to 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, and the Americans with Disabilities Act. 310 11 3.8.Easements. To the extent that the Infrastructure Improvements are to be located on the Land, the Developer hereby agrees to grant to the City and applicable utility companies from time to time such easements, rights-of-way and similar licenses in a form required by the City and as are reasonably necessary to permit the City to own, operate and maintain the Infrastructure Improvements. 3.9.Nondiscrimination and Equal Pay Affirmation. The Developer agrees to require its contractor(s) to be in compliance with the City’s Nondiscrimination and Equal Pay Affirmation attached hereto as Exhibit G, as well as Title 49, Montana Code Annotated, regarding activities related to the Project, including the Infrastructure Improvements. The Developer agrees that in its contracts with its contractors the Developer’s contractor will be required to require its subcontractors to comply with the City’s Nondiscrimination and Equal Pay Affirmation attached hereto as Exhibit G, as well as Title 49, Montana Code Annotated, regarding activities related to the Project. The Developer agrees to provide copies of all such contracts upon request by the City. 3.10.Worker’s Compensation Insurance. The Developer shall provide in its construction contracts related to the Project with all of its respective contractors that such contractors are to be covered by a Worker’s Compensation insurance program with the State, a private insurance carrier, or an approved self-insurance plan in accordance with State law. 3.11.Walkaway Provision. The Developer shall have the option, in its sole discretion and for any reason, to cease developing the Project and terminate this Agreement without penalty at any time prior to the Developer submitting any request for reimbursement or payment to the City (“walkaway provision”). If the Developer exercises this walkaway provision, this Agreement shall immediately terminate and all rights and obligations of the Parties under this Agreement shall cease, except for those rights and obligations specifically identified in this Agreement as surviving termination. If the Developer exercises this walkaway provision, the Developer automatically waives any and all rights to reimbursement or payment from the City under this Agreement. This walkaway provision shall not limit or prohibit any rights, claims, or recourse that the City may have in connection with the Project. The Parties expect that, if the Developer determines to exercise this walkaway provision, the Restrictive Covenants will not be recorded against the Land. If Outlaw records the Restrictive Covenants and, at a later date, the Developer determines to exercise the walkaway provision, the City agrees to cooperate with Outlaw to remove the Restrictive Covenants from the Land. 3.12.Affordable Housing Covenants. The Developer agrees that a minimum of 10% of the residential units developed on the Land as part of the Project (the “Restricted Units”) will be restricted for a period not less than 30 years for use as housing affordable to households with incomes equal to 80% area median income (“AMI”). As a condition to reimbursement from a portion of the Project Generated Tax Increment, as described in Section 5.1 hereof, Outlaw shall record the restrictive covenants, substantially in the form attached hereto as Exhibit I (the “Restrictive Covenants”) against the Land. The Restrictive Covenants must (i) run with the land, (ii) bind, for a period not less than 30 years from the date of issuance of a certificate of occupancy with respect to the Restricted Units, the Restrictive Units to be affordable at 80% AMI, either as rental units or as owner-occupied units with restrictions on resale prices, with resale and rental prices tied to affordability at 80% AMI, and (iii) provide that a third-party 311 12 nonprofit or government entity with experience in managing affordable housing units will manage the rental or sale of the Restricted Units. For avoidance of doubt, a sample affordability matrix based on AMI is attached as Exhibit H; however, the affordability requirements in the Restrictive Covenants will be index-based, tied to AMI, and pursuant to the Restrictive Covenants, rental and sale/resale prices of the Restricted Units will be based on the most recent affordability data available through the Housing and Urban Development’s Housing Availability Data System or other similar affordability data that is available at the time of rental or sale/resale. Outlaw’s covenants described in this Section 3.12 are referred to herein as the “Affordable Housing Covenants.” Outlaw and the Developer each acknowledge and agree that the Affordable Housing Covenants are fundamental to the City’s agreements hereunder. Outlaw acknowledges that, as development proceeds on the Project, it may be required to record other instruments to implement the Affordable Housing Covenants and provide for the affordability of the Restricted Units, in addition to or in replacement of the Restrictive Covenants to be recorded as a condition to reimbursement of the Developer under this Agreement, and Outlaw agrees to record such other instruments if necessary. Outlaw acknowledges that, as determined by the City, one-person household pricing relates to studios, two-person household pricing relates to one bedroom units, three-person household pricing relates to two bedroom units, and four-person household pricing relates to three bedroom units. The Affordable Housing Covenants and Restrictive Covenants described herein are separate from and in addition to the affordable housing covenants and Wild Peach Restrictive Covenants set forth in the Wild Peach Development Agreement. Outlaw reserves the right to combine the Restrictive Covenants and the Wild Peach Restrictive Covenants in one instrument, so long as the form of the proposed instrument is acceptable to the City. Section 4.City Undertakings. Subject to satisfaction of all conditions in Section 5 below, subject to the prior lien of the Series 2017 Bond and the debt service reserve account therefor on the Project Generated Tax Increment, the City agrees to reimburse the Developer in an amount equal to 95% of the Project Generated Tax Increment in each Fiscal Year, until the Developer is reimbursed for the Eligible Costs (up to $[2,210,480]), or for the life of the tax increment provision, whichever is first. Section 5.Reimbursement for the Eligible Costs. Reimbursement of the Developer for Eligible Costs shall be subject to the following conditions and in accordance with the following procedures: 5.1.Conditions to Reimbursement. (a)(i) The Developer and Outlaw must have completed or satisfied each of the Milestones by the applicable Milestone Date, as such date may have been extended pursuant to Section 3.4 hereof, (ii) the City must have issued a certificate of occupancy for the Project, (iii) the Infrastructure Improvements must have been completed in their entirety and the City must have delivered to the Developer written acceptance of the Infrastructure Improvements (which may be in the form of a Certificate of Completion or such other format as required by the City), and (iv) the Developer must demonstrate to the City’s satisfaction, by a title report or other means acceptable to the City, that the Infrastructure Improvements are free of financial liens and any encumbrances affecting the Infrastructure Improvements must be acceptable to the City. 312 13 (b)Reimbursement by the City for costs of the Infrastructure Improvements must be based on paid invoices for costs incurred by the Developer, its contractors and subcontractors or utility companies, which the Developer must supply to the City. The City may reject, in its sole discretion, any invoice related to the Infrastructure Improvements. The City will notify the Developer of any rejected invoice and the reason it was rejected, and will provide the Developer a reasonable opportunity to cure. (c)The Parties agree that the City will have no obligation to pay or reimburse any of the Eligible Costs unless at the time of such request (i) all of the Developer’s representations as set forth in Section 2.2 are true and correct, (ii) the Developer is not in breach of any covenant or undertaking as set forth in Section 3, and (iii) there shall be adequate Tax Increment on hand to satisfy all financial obligations related to the Series 2017 Bond and the debt service reserve account for the Series 2017 Bond such that 95% of the Project Generated Tax Increment is available to reimburse the Developer. (d)The Developer and/or Outlaw shall have provided evidence satisfactory to the City that (1) the Developer and/or Outlaw are in compliance with the Height Restrictions, together with evidence that the Height Restrictions have been recorded with the Gallatin County Clerk and Recorder’s Office and are in full force and effect, and (2) the Developer and/or Outlaw are in compliance with the Affordable Housing Covenants and the Restrictive Covenants, together with evidence that the Restrictive Covenants have been recorded with the Gallatin County Clerk and Recorder’s Office and are in full force and effect, and other information regarding the Restricted Units, which may include the recorded forms of the deeds to the Restricted Units, closing statements prepared by a third-party escrow agent, outreach and marketing materials relating to the rental or sale of the Restricted Units, rental and/or sale data relating to the Restricted Units, and/or other relevant information. (e)After receiving a certificate of occupancy for the Project, the Developer shall provide to the City a signed Developer certificate substantially in the form attached as Exhibit F- 1 hereto and acceptable to the City, accompanied by the invoices and lien waivers from the contractors or subcontractors that have performed the work to be reimbursed. In addition, the Developer agrees to provide to the City any additional information requested by the City for the City to determine whether the Developer’s request for reimbursement complies with this Agreement. Based on this Developer certificate and the related information provided by the Developer, the City Manager or his or her designee shall determine the total dollar amount of Eligible Costs that may be reimbursed (up to $[2,210,480]). (f)The actual property taxes paid by the Developer in each Fiscal Year following receipt of a final certificate of occupancy with respect to the Project constitutes the “Project Generated Tax Increment.” Subject to the prior lien of the Series 2017 Bonds on Tax Increment, the Developer is eligible to be reimbursed in an amount equal to 95% of the Project Generated Tax Increment in each Fiscal Year, until the Developer is reimbursed for the Eligible Costs (up to $[2,210,480]). [If the Project Generated Tax Increment has not been sufficient to reimburse the Developer in full for the Eligible Costs (up to $[2,210,480]) by the end of the twelfth Fiscal Year of reimbursement, this Agreement shall terminate and the Developer is not eligible for additional reimbursement.] 313 14 If any of the above conditions are not satisfied in the determination of the City, and after reasonable opportunity for the Developer to cure any default, the City shall have no obligation to reimburse any of the Eligible Costs and the City’s determination to refrain from reimbursing, or its inability to reimburse, any of the Eligible Costs shall not be or result in a default of this Agreement. 5.2.Process for Reimbursement. Following determination of the dollar amount of the Eligible Costs that may be reimbursed under Section 5.1(e), and the Developer’s payment of Project Generated Tax Increment, as described under Section 5.1(f) above, Developer shall submit to the Director of Economic Development, not more than twice in any Fiscal Year, a certificate substantially in the form attached hereto as Exhibit F-2, together with such supporting documentation as may be requested by the City, showing the amount of the Project Generated Tax Increment paid by the Developer at that time. [If the Project Generated Tax Increment has not been sufficient to reimburse the Developer in full for the Eligible Costs (up to $[2,210,480]) by the end of the twelfth Fiscal Year of reimbursement, this Agreement shall terminate and the Developer is not eligible for additional reimbursement.] Section 6.Covenants to Pay Taxes. 6.1.Taxes. The Developer shall pay or cause to be paid when due and prior to the imposition of penalty all Taxes and all installments of any special assessments payable with respect to the Land and the Project and any improvements thereto or extension thereof. 6.2.Maintenance of Land and Project. The Developer agrees to use its commercially reasonable best efforts to maintain and operate the Land and the Project so as to be able at all times to pay promptly and when due all property taxes levied with respect to the Land and the Project. 6.3.Injunction; Specific Performance. The Parties agree that, in the event of a breach of this Section 6 by the Developer or its successors or assigns, the City would suffer irreparable harm. Therefore, in the event the Developer or its successors or assigns fails to comply with the provisions of this Section 6, the Developer agrees that the City may pursue any remedy at law or in equity, including, without limitation, the remedies of injunction and specific performance. Section 7.Indemnification and Insurance. 7.1.Indemnification. The Developer releases the City and all City Commission members, board members, officers, agents, servants and employees of the City (the “Indemnified Parties”) from, and covenants and agrees that the Indemnified Parties shall not be liable for, and agrees to indemnify, defend and hold harmless the Indemnified Parties against, any loss, damage, cost (including reasonable attorneys’ fees), claim, demand, suit, action or other proceeding whatsoever (i) arising or purportedly arising out of, or resulting or purportedly resulting from, the acquisition and construction of the Project, including the Infrastructure Improvements, any violation by the Developer of any agreement, condition or covenant of this Agreement, the ownership, maintenance and operation of the Project, or the presence on any portion of the Land, of any dangerous, toxic or hazardous pollutants, contaminants, chemicals, waste, materials or 314 15 substances; or (ii) which is proximately caused by the Developer or its officers, agents, contractors, consultants or employees. 7.2.Insurance. The Developer shall keep and maintain the Project at all times insured against such risks and in such amounts, with such deductible provisions, as are customary in connection with facilities of the type and size comparable to the Project, and the Developer shall carry and maintain, or cause to be carried and maintained, and pay or cause to be paid timely the premiums for direct damage insurance covering all risks of loss, including, but not limited to, the following: 1.fire 2.extended coverage perils 3.vandalism and malicious mischief 4.boiler explosion (but only if steam boilers are present) 5.collapse on a replacement cost basis in an amount equivalent to the Full Insurable Value thereof. “Full Insurable Value” shall include the actual replacement cost of the Project, exclusive of foundations and footings, without deduction for architectural, engineering, legal or administrative fees or for depreciation. The policies required by this Section 7.2 shall be subject to a no coinsurance clause or contain an agreed amount clause, and must contain a deductibility provision not exceeding $100,000. Subject to the terms of any mortgage relating to the Project, policies of insurance required by this Section 7.2 shall insure and be payable to Developer and shall provide for release of insurance proceeds to Developer for restoration of loss. The City shall be furnished certificates showing the existence of such insurance. In case of loss, Developer is hereby authorized to adjust the loss and execute proof thereof in the name of all parties in interest. During construction of the Project, any and all of the foregoing insurance policies may be maintained by the Developer’s contractor; provided that once the Project is placed into service, Developer shall maintain all of the foregoing insurance policies. In addition, as a condition to placing the Project in service, the City may require that the Developer or owner of the Project obtain additional insurance that would protect the City or the City’s interest in the Infrastructure Improvements. In addition to and independent of the above, the Developer shall at the Developer’s expense secure liability insurance through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana. The insurance shall not contain any exclusion for liabilities specifically assumed by the Developer 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 in relation to construction of the Project and the Infrastructure Improvements without limit and without regard to the cause therefore. The Developer must furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows: 315 16 Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate The above amounts shall be exclusive of defense costs. The City, its officers, agents, and employees, shall be endorsed as an additional or named insured on a primary non-contributory basis on the Commercial General Liability policy. 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. The City must approve all insurance coverage and endorsements prior to the Developer commencing work on Project or Infrastructure Improvements. Developer must notify the City within two (2) business days of Developer’s receipt of notice that any required insurance coverage will be terminated or Developer’s decision to terminate any required insurance coverage for any reason. Section 8.General Provisions. 8.1.Conflicts of Interest; City’s Representatives Not Individually Liable. The Developer represents that it does not employ, retain, or contract with an officer or employee of the City and that no member, officer or employee of the City has a personal or financial interest, direct or indirect, in this Agreement or in the Project, or a financial interest in the Infrastructure Improvements. No member, officer or employee of the City shall be personally liable to Developer in the event of any default under or breach of this Agreement by the City, or for any amount that may become due to Developer for any obligation issued under or arising from the terms of this Agreement. 8.2.Rights Cumulative. The rights and remedies of the Parties of this Agreement, whether provided by law or by this Agreement, shall be cumulative, and the exercise by any Party hereto of any one or more of such remedies shall not preclude the exercise by such Party, at the same or different times, of any other remedy for the same default or breach or of any of its remedies for any other default or breach of the Party subject to the limitation of remedies provided herein. No waiver made by such Party with respect to the performance or the manner or time thereof, of any obligation under this Agreement, shall be considered a waiver with respect to the particular obligation of the other Party or a condition to its own obligation beyond those expressly waived in writing and to the extent thereof, or a waiver in any respect in regard to any other rights of the Party making the waiver of any obligations of the other Party. Delay by a Party hereto instituting or prosecuting any cause of action or claim hereunder shall not be deemed a waiver of any rights hereunder. 8.3.Term of Agreement. (a)This Agreement shall remain in effect until the earlier of (i) the date that is 10 days after the date the City reimburses the Developer in full hereunder, or (ii) the termination of this Agreement pursuant to Section 5.2(b) or Section 3.11; provided that this Agreement may be earlier terminated by the City in its sole discretion at any time after failure by the Developer to complete or satisfy a Milestone by the applicable Milestone Payment Date (as such date may be extended as described in Section 3.4). 316 17 (b)Notwithstanding the foregoing provisions of this Section 8.3, (i) Sections 6, 7, and 8 of this Agreement shall in all events survive the termination of this Agreement, and (ii) if the Developer is reimbursed under this Agreement, Section 3.12 shall survive the termination of this Agreement. 8.4.Limitation on City Liability. No agreements or provisions contained in this Agreement nor any agreement, covenant or undertaking by the City contained in any document in connection with the Project, including the Infrastructure Improvements, or the Eligible Costs shall give rise to any pecuniary liability of the City or a charge against its general credit or taxing powers, or shall obligate the City financially in any way except with respect to then-available Project Generated Tax Increment. No failure of the City to comply with any term, condition, covenant or agreement herein shall subject the City to liability for any claim for damages, costs or other financial or pecuniary charge except to the extent that the same can be paid or recovered from then-available Project Generated Tax Increment; and no execution on any claim, demand, cause of action or judgment shall be levied upon or collected from the general credit, general funds or taxing powers of the City (except as such constitute then-available Project Generated Tax Increment). Nothing herein shall preclude a proper party in interest from seeking and obtaining specific performance against the City for any failure to comply with any term, condition, covenant or agreement herein; provided that no costs, expenses or other monetary relief shall be recoverable from the City except as may be payable from the Project Generated Tax Increment. This Agreement shall not constitute or be construed to give rise to a debt of the City. 8.5.Assignment. This Agreement is unique among the City, the Developer and Outlaw and no Party may assign any rights or privileges, or delegate any duties or obligations under this Agreement, without first obtaining the written consent of the other Party. 8.6.Successors Bound By Agreement; No Third Party Beneficiary; No Property Interest. Subject to compliance with Section 8.5, this Agreement will inure to the benefit of and be binding upon the Parties to this Agreement and their respective successors in interest and permitted assignees. 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. This Agreement, by itself, does not create or give rise to a property interest in the Land or the Project. 8.7.Prior Agreements. This Agreement supersedes, merges and voids any and all prior discussions, negotiations, agreements and undertakings between the Parties with respect to the subject matter of this Agreement. The Parties waive and release each other from any claims, actions, or causes of action that relate in any manner to any prior discussions, negotiations, agreements and undertakings between the Parties with respect to the subject matter of this Agreement. 8.8.Entire Agreement. This Agreement, including any exhibits and attachments hereto, embodies the entire agreement and understanding of the Parties with respect to its subject matter. All Parties shall be prohibited from offering into evidence in any arbitration or civil action any terms, conditions, understandings, warranties, statements or representations, whether 317 18 oral or written, with respect to the subject matter of this Agreement and that are not contained in this Agreement. 8.9.Amendments, Changes and Modifications. This Agreement may be amended and any of its terms may be modified only by written amendment authorized and signed by the Parties hereto. 8.10.Headings. The headings of articles and sections in this Agreement are inserted for convenience of reference only and do not limit or amplify the terms and provisions of the Agreement in any manner. The headings will be ignored and will not affect the construction of any provisions of this Agreement. 8.11.Notice. Any formal notice, demand or communication required or permitted by the terms of this Agreement to be given to the City, the Developer or Outlaw will be in writing and will be delivered to such Party either: (i) by personal hand-delivery; or (ii) by depositing the same in the United States mail, certified mail with return receipt requested, addressed to such Party at the address named below, with postage prepaid thereon. Notice will be deemed complete upon receipt of the notice pursuant to any of the foregoing methods of notice. If to City: City of Bozeman Attention: Bozeman City Manager 121 N. Rouse Ave. P.O. Box 1230 Bozeman, MT 59771 With a copy to: [___________________] If to Developer: Cloverleaf, LLC Attention: [__________] P.O. Box 161236 Big Sky, MT 59716 With a copy to: Alanah Griffith Griffith & Cummings, P.C. P.O. 160748 Big Sky, MT 59716 If to Outlaw: 318 19 Outlaw Real Estate Partners, LLC Attention: [__________] P.O. Box 161236 Big Sky, MT 59716 With Copy to: Alanah Griffith Griffith & Cummings, P.C. P.O. 160748 Big Sky, MT 59716 The City, the Developer and Outlaw, by notice given hereunder, may designate different addresses to which subsequent notices, certificates or other communications should be sent. 8.12. Severability. If any provision of this Agreement is declared void or held invalid, such provision will be deemed severed from this Agreement and the remaining provisions of this Agreement will otherwise remain in full force and effect. 8.13.Duplicate Originals or Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement. 8.14.Place of Performance. The place of performance of this Agreement will be in the City of Bozeman, Gallatin County, Montana. 8.15.Governing Law. This agreement and the legal relations between the Parties hereto will be governed by and construed in accordance with the laws of the State of Montana, without giving effect to any choice of law statutes, rules, or principles. 8.16.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 acceptable to the Parties 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 and the provisions of this Agreement. 8.17.Further Assurances and Corrective Instruments. The Parties agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Project, including the Infrastructure Improvements, or the Eligible Costs or for carrying out the expressed intention of this Agreement. 319 20 8.18.Reports/Accountability/Public Information. The Developer agrees to develop and/or provide documentation as requested by the City demonstrating the Developer’s compliance with the requirements of this Agreement. The Developer 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 monies reimbursed to the Developer pursuant to this Agreement were used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Developer shall not issue any statements, releases or information for public dissemination regarding this Agreement or the work contemplated hereunder without prior written approval of the City. [Balance of page intentionally left blank] 320 21 IN WITNESS WHEREOF, the Parties hereto have caused this Development Agreement to be executed as of the [_____] day of [___________]. CITY OF BOZEMAN, MONTANA By:_______________________________________ Printed Name: Jeff Mihelich Title: City Manager [Signature Page to Development Agreement] 321 22 CLOVERLEAF, LLC By: Name: Title: [Signature Page to Development Agreement] 322 23 OUTLAW REAL ESTATE PARTNERS, LLC By: Name: Title: [Signature Page to Development Agreement] 323 DRAFT 01/25/2023 A-1 EXHIBIT A PROJECT COSTS 324 DRAFT 01/25/2023 B-1 EXHIBIT B LEGAL DESCRIPTION OF THE LAND 325 DRAFT 01/25/2023 C-1 EXHIBIT C ELIGIBLE COSTS Infrastructure Improvements: Demolition of Existing Structures $ 137,600.00 Roadways, sidewalks, curbs, gutters and alley 657,355.00 Public/utility infrastructure 366,813.50 Communications infrastructure—fiber 60,000.00 Project Fees and Charges: Impact fees 894,922.60 Cash in lieu of water rights 93,789.78 Total Eligible Costs:$ 2,210,480.88 326 D-1 EXHIBIT D MILESTONES MILESTONE MILESTONE DATE Height Restrictions Recorded 6/1/23 Site Plan Submittal to the City 1/1/24 Development Building Permit Submittal 6/1/24 Start of Development Construction 1/1/25 Start of Infrastructure Construction 1/1/25 Completion of Infrastructure Substantial Construction 1/1/27 Completion of Development Construction (occupancy)6/1/27 327 E-1 EXHIBIT E [Form of Height Restrictions] 328 F-1-1 EXHIBIT F-1 FORM OF DEVELOPER CERTIFICATE TO ESTABLISH AMOUNT OF ELIGIBLE COSTS TO:City of Bozeman, Montana FROM:Cloverleaf, LLC (the “Developer”) SUBJECT:Eligible Costs This Developer Certificate requests $_________ for reimbursement of Eligible Costs, as defined in the Development Agreement among the Developer, Outlaw Real Estate Partners, LLC and the City of Bozeman, Montana, dated as of ________________ (the “Development Agreement”). Capitalized terms used but not otherwise defined herein shall have the respective meanings given such terms in the Development Agreement. Pursuant to Section 5.1(d) of the Development Agreement, the undersigned hereby certifies on behalf of the Developer that: (a)the expenditures for which reimbursement is requested are listed in summary form in the attached schedule headed “Project Expenditures;” (b)invoices paid by the Developer corresponding to the expenditures set forth on the attached Project Expenditures Schedule are appended to the attached schedule headed “Project Invoices;” (c)the amounts for which reimbursement is requested have been paid by the Developer to the City for Project Fees and Charges or to contractors, subcontractors, materialmen, engineers, architects or other persons who or that have performed necessary or appropriate services or supplied necessary or appropriate materials for the acquisition, construction, renovation, equipping, and installation of the Infrastructure Improvements; (d)with respect to the Infrastructure Improvements, the contractor and subcontractors were solicited and retained competitively and all persons performing work on the Infrastructure Improvements were paid the Montana prevailing wage for such work; (e)the reimbursement of the amounts requested will not result in a breach of any of the covenants of the Developer contained in the Development Agreement; and (f)no litigation has been instituted or is threatened with regard to any amounts sought to be reimbursed, and binding and enforceable lien waivers have been obtained from all contractors, subcontractors, materialmen, and others with regard to all work related to any amounts for which reimbursement is requested. The Developer represents that all of the representations of the Developer in Section 2.2 of the Development Agreement are true and correct as of the date hereof and the Developer is not in default of the performance of any of its undertakings or obligations under Section 3 of the Development Agreement as of the date hereof. 329 F-1-2 Dated: _____________, 20__Cloverleaf, LLC By: Authorized Developer Representative 330 F-2-1 EXHIBIT F-2 FORM OF DEVELOPER CERTIFICATE REGARDING PROJECT GENERATED TAX INCREMENT TO:City of Bozeman, Montana FROM:Cloverleaf, LLC (the “Developer”) SUBJECT:Project Generated Tax Increment This Developer Certificate relates to Project Generated Tax Increment, as defined in the Development Agreement among the Developer, Outlaw Real Estate Partners, LLC and the City of Bozeman, Montana, dated as of ________________ (the “Development Agreement”). Capitalized terms used but not otherwise defined herein shall have the respective meanings given such terms in the Development Agreement. Pursuant to Section 5.2 of the Development Agreement, the undersigned hereby certifies on behalf of the Developer that on [___________], 20__] and [___________], 20__], the Developer, and/or person(s) or entity responsible for paying taxes, has paid property taxes relating to the Project in the total amount of $[______]1, and is therefore eligible for reimbursement in an amount of $[________]2. The Developer has attached proof of each payment to this certificate. The Developer is eligible to be reimbursed for $[______]3 in total Eligible Costs. [The Developer has previously been reimbursed for Eligible Costs in the amount of $[_____], and as of the date hereof, the Developer is eligible to be reimbursed for an additional $[_______] in Eligible Costs.] The Developer further certifies that all of the representations of the Developer in Section 2.2 of the Development Agreement are true and correct as of the date hereof and the Developer is not in default of the performance of any of its undertakings or obligations under Section 3 of the Development Agreement as of the date hereof. Dated: _____________, 20__Cloverleaf, LLC By: Authorized Developer Representative 1 Project Generated Tax Increment. 2 95% of Project Generated Tax Increment amount. 3 Amount of Eligible Costs established by Developer Certificate at Exhibit F-1. 331 DRAFT 01/25/2023 G-1 EXHIBIT G 332 DRAFT 01/25/2023 H-1 EXHIBIT H Sample Affordable Housing Pricing Matrix 333 DRAFT 01/25/2023 I-1 EXHIBIT I [Form of Restrictive Covenants] 334 Declaration of Restrictive Covenants 1 Original to: City of Bozeman Attn: City Clerk PO Box 1230 Bozeman, MT 59771-1230 DECLARATION OF RESTRICTIVE COVENANTS This Declaration is made this _____ day of ______________, 20__ by [Outlaw Real Estate Partners, LLC] [address] (“Declarant”). RECITALS A. Declarant owns certain real property located at 707 East Peach Street, Bozeman, Montana 59715, and more particularly described as follows (the “Property”): Lots 1-8 and 11-28 in Block 100 of the Northern Pacific Addition to the City of Bozeman, according to the plat thereof on file and of record in the office of the Gallatin County Clerk and Recorder’s Office, Gallatin County, Montana B. It is the intent of the Declarant to meet the conditions of the Development Agreement (the “Agreement”), dated as of [________], by and among Cloverleaf, LLC (“Cloverleaf”), the City of Bozeman, Montana (the “City”), and Declarant, in relation to the development of the Cloverleaf project (the “Project”) on the Property; and C. Declarant agrees that it receives a significant benefit from the Agreement, as [the controlling member of][an entity with the same controlling member as] Cloverleaf; and D.To satisfy the requirements of the Agreement, the Declarant desires to place covenants, conditions and restrictions upon the Property for the use and benefit of Declarant, Cloverleaf and the City. NOW, THEREFORE, Declarant hereby declares: 335 Declaration of Restrictive Covenants 2 1. Height Limitation.Notwithstanding any provision to the contrary as set forth in the City’s regulations for its zoning districts, within the Property, the maximum height of structures within the Project is limited to a maximum of 50 feet or 4 stories, whichever is less; provided that an area, not to exceed a total of 10% of the structure’s footprint, may extend above the maximum building height by up to 12 feet for elevator or stair penthouses or similar features so long as such features are set back from the edge of the structure by at least 5 feet to reduce their visibility from the ground level. The Declarant acknowledges and agrees that no building permits will be issued for construction of a structure on the Property in excess of this height limitation. 2.Term. This Declaration shall remain in place and be enforceable for a term commencing on the date hereof and concluding 30 years from the date a certificate of occupancy is issued with respect to the structures on the Property, and shall inure to the benefit of Declarant, each owner of real property within the Property, the City, and their respective legal representatives, heirs, successors, or assigns, subject to the right of amendment provided in this Article. 3. Amendment.This Declaration may not be amended without the prior written consent of the Bozeman City Commission. Any amendment shall become effective only upon the filing of such amendment in the records of the Clerk and Recorder of Gallatin County, Montana. 4. Enforcement. The Declarant, the City, or any owner of real property within the Property may take action to enforce the provisions of this Declaration. Enforcement may be by injunction, declaratory judgment, action for damages, or any other legal claims, all of which shall be cumulative and non-exclusive. The prevailing party in any action shall be entitled to recover, in addition to other damages, its reasonable litigation expenses, including attorney’s fees, as may be awarded in the judgment of the court. 5. Covenants to Run with the Land. The Declarant intends that the terms of this Declaration shall with the land and shall continue in effect with respect to the entire Property notwithstanding any partition or division of the Property. 6.Severability. Invalidation of any one of these covenants or restrictions by judgment or court order shall in no way affect any other provisions, which shall remain in full force and effect. 7.Choice of Law and Venue. This Declaration of Covenants, Conditions, and Restrictions shall be governed by the laws of Montana and venue shall be in Gallatin County, Montana. IN WITNESS WHEREOF the DECLARANT has signed this instrument and arranged for its recordation in the real property records of Gallatin County, Montana. [OUTLAW REAL ESTATE PARTNERS, LLC] 336 Declaration of Restrictive Covenants 3 By:_______________________________________ Title:_____________________________________ STATE OF ____________ ) :ss COUNTY OF __________ ) This instrument was signed or acknowledged before me on _________________ by ___________, as ______________ of ____________________. ____________________________________ (NOTARIAL SEAL)Printed Name:________________________ Notary Public for the State of ___________ Residing at __________________________ My commission expires ________________ 337 Declaration of Restrictive Covenants - 4 - Acknowledged by: CITY OF BOZEMAN ____________________________________ By: Jeff Mihelich, City Manager ATTEST: ________________________________ Mike Maas, City Clerk STATE OF MONTANA ) :ss COUNTY OF GALLATIN ) This instrument was signed or acknowleged before me on _______________ by Jeff Mihelich and Mike Maas, acting in the capacities of City Manager and City Clerk, respectively, of the City of Bozeman, Montana. . ____________________________________ (NOTARIAL SEAL)Printed Name:________________________ Notary Public for the State of ___________ Residing at __________________________ My commission expires ________________ 338 Declaration of Restrictive Covenants 1 Original to: City of Bozeman Attn: City Clerk PO Box 1230 Bozeman, MT 59771-1230 DECLARATION OF RESTRICTIVE COVENANTS This Declaration is made this _____ day of ______________, 20__ by [Outlaw Real Estate Partners, LLC] [address] (“Declarant”). RECITALS A. Declarant owns certain real property located at 707 East Peach Street, Bozeman, Montana 59715, and more particularly described as follows (the “Property”): Lots 1-8 and 11-28 in Block 100 of the Northern Pacific Addition to the City of Bozeman, according to the plat thereof on file and of record in the office of the Gallatin County Clerk and Recorder’s Office, Gallatin County, Montana B. It is the intent of the Declarant to meet the conditions of the Development Agreement (the “Agreement”), dated as of [________], by and among Cloverleaf, LLC (“Cloverleaf”), the City of Bozeman, Montana (the “City”), and Declarant, in relation to the development of the Cloverleaf project (the “Project”) on the Property; and C. Declarant agrees that it receives a significant benefit from the Agreement, as [the controlling member of][an entity with the same controlling member as] Cloverleaf; and D.To satisfy the requirements of the Agreement, the Declarant desires to place covenants, conditions and restrictions upon the Property for the use and benefit of Declarant, Cloverleaf and the City. NOW, THEREFORE, Declarant hereby declares: 339 Declaration of Restrictive Covenants 2 1. Provision of Income Restricted Housing. a. Declarant agrees that a minimum of 10% of the residential units developed on the Property as part of the Project (the “Affordable Units”) will be restricted for a period not less than 30 years for use as housing affordable to households with incomes equal to 80% of the area median income (“AMI”), as reported annually for single persons and households of various sizes by the United States Department of Housing and Urban Development, or by any successor United States Government department, agency, or instrumentality, for the Primary Metropolitan Statistical Area which includes the City. b. The sale and management of the Affordable Units shall be administered by a third- party nonprofit or government entity with experience in managing affordable housing units, or other entity acceptable to the City. c. Declarant must construct and make available on the market all Affordable Units no later than the time all other market rate residential units are available. d. The Affordable Units may be operated as rental units or owner occupied units with restrictions on resale prices. Throughout the term of this Declaration, the Affordable Units must be affordable to households with income no greater than 80% of the AMI. All sales prices and rental prices for the Affordable Units must be based on the most recent affordability data available through the Housing and Urban Development’s Affordability Data System for the City or similar affordability data available at the time of rental or sale/resale. e. The Affordable Units must have equal access to enjoyment of all common facilities of the Property as the market rate units. 2.Prohibition on Use as Short Term Rentals. The Affordable Housing Units are prohibited from being used, rented, or made available as short term rentals, as the term is defined in the Bozeman Municipal Code. 3. Term. This Declaration shall remain in place and be enforceable for a term of 30 years from the date of the issuance of a certificate of occupancy with respect to the Affordable Housing Units and shall inure to the benefit of Declarant, each owner of property, the City, and their respective legal representatives, heirs, successors, or assigns, subject to the right of amendment provided in this Article. 4. Amendment.This Declaration may not be amended without the prior written consent of the Bozeman City Commission. Any amendment shall become effective only upon the filing of such amendment in the records of the Clerk and Recorder of Gallatin County, Montana. 5. Enforcement. The Declarant, the City, or any owner of real property within the Property may take action to enforce the provisions of this Declaration. Enforcement may be by injunction, declaratory judgment, action for damages, or any other legal claims, all of which shall be cumulative and non-exclusive. The prevailing party in any action shall be entitled to recover, 340 Declaration of Restrictive Covenants 3 in addition to other damages, its reasonable litigation expenses, including attorney’s fees, as may be awarded in the judgment of the court. 6.Covenants to Run with the Land. The Declarant intends that the terms of this Declaration shall with the land and shall continue in effect with respect to the entire Property notwithstanding any partition or division of the Property. 7.Severability. Invalidation of any one of these covenants or restrictions by judgment or court order shall in no way affect any other provisions, which shall remain in full force and effect. 8.Choice of Law and Venue. This Declaration of Covenants, Conditions, and Restrictions shall be governed by the laws of Montana and venue shall be in Gallatin County, Montana. IN WITNESS WHEREOF the DECLARANT has signed this instrument and arranged for its recordation in the real property records of Gallatin County, Montana. [OUTLAW REAL ESTATE PARTNERS, LLC] By:_______________________________________ Title:_____________________________________ STATE OF ____________ ) :ss COUNTY OF __________ ) This instrument was signed or acknowledged before me on _________________ by ___________, as ______________ of ____________________. ____________________________________ (NOTARIAL SEAL)Printed Name:________________________ Notary Public for the State of ___________ Residing at __________________________ My commission expires ________________ 341 Declaration of Restrictive Covenants - 4 - Acknowledged by: CITY OF BOZEMAN ____________________________________ By: Jeff Mihelich, City Manager ATTEST: ________________________________ Mike Maas, City Clerk STATE OF MONTANA ) :ss COUNTY OF GALLATIN ) This instrument was signed or acknowleged before me on _______________ by Jeff Mihelich and Mike Maas, acting in the capacities of City Manager and City Clerk, respectively, of the City of Bozeman, Montana. . ____________________________________ (NOTARIAL SEAL)Printed Name:________________________ Notary Public for the State of ___________ Residing at __________________________ My commission expires ________________ 342 Memorandum REPORT TO:City Commission FROM:David Fine, Economic Development Program Manager Brit Fontenot, Economic Development Director Jeff Mihelich, City Manager SUBJECT:Authorize the City Manager to Sign the Development Agreement for Provision of Utilities and Affordable Housing with Virga Venture II MEETING DATE:February 7, 2023 AGENDA ITEM TYPE:Agreement - Property RECOMMENDATION:I move to authorize the City Manager to sign the Development Agreement for Provision of Utilities and Affordable Housing with Virga Venture II. STRATEGIC PLAN:4.5 Housing and Transportation Choices: Vigorously encourage, through a wide variety of actions, the development of sustainable and lasting housing options for underserved individuals and families and improve mobility options that accommodate all travel modes. BACKGROUND:Since fall 2021, City Staff have been working with Virga Venture II, LLC, the developer of the 115 acre property known as the Silos annexation located in northwest Bozeman (generally south of East Valley Center Road and west of Davis Lane), to build public infrastructure in exchange for affordable housing. Initial meetings between City staff and the developer largely focused on site and regional infrastructure required to service the development. Early in the process, City staff informed the developer that a sizeable regional lift station (Hidden Valley Lift Station, know hereafter as HVLS), as identified in the City's 2015 wastewater facility plan, would be necessary to service the development's wastewater needs. In addition, City staff also informed the developer that the City was in the process of updating the City's 2015 wastewater facility plan. Recognizing the need for additional housing along with regional infrastructure to support future housing, the City and developer came to an agreement to evaluate and ultimately consider the feasibility of splitting the identified HVLS into two smaller lift stations to service the sewershed instead of one single lift station. The agreement, paid for by the developer, included a detailed evaluation of splitting the HVLS into two smaller lift stations, the feasibility of locating a regional lift station on the northwest corner of the property owned by the developer, and an engineer's cost estimate of the lift station and associated infrastructure. 343 The evaluation determined that two smaller lift stations vs a single large lift station was a viable alternative and that a future lift station could be located on the subject property. Furthermore, by splitting the lift stations into two smaller facilities, the City could make approximately 600 acres of sewer service area available west of Davis Lane in the near-term, which is primarily suited for residential development. The lift station identified and located on the developer's property is named the Valley Center Lift Station, hereafter known as VCLS. As a result, City staff recommended the evaluation amend the 2015 facility plan and be used as the basis of planning for the Silos development drainage area as well as any future development located immediately west of Davis Lane. The City Commission approved funding for the proposed VCLS lift station for Fiscal Years 2024 and 2025 of the Capital Improvement Plan (CIP). The proposed Development Agreement stipulates that the City will build and pay for the VCLS at an estimated cost of $5.2M. In exchange, the developer will transfer ownership of a five-acre parcel to the City, a community land trust, or other qualified third party acceptable to the City, for the development of affordable housing. This exchange will occur upon the filing of a final plat that includes the parcel. The Developer will also transfer fee simple ownership of a parcel on which the City will construct the VCLS and provide utility easement for the sewer force main and related infrastructure. The five-acre affordable housing parcel can host a significant number of affordable units. The land is zoned Residential Emphasis Mixed-Use (REMU) and allows for more intensive development. City staff estimates that the parcel could conservatively host over 100 units of affordable housing. UNRESOLVED ISSUES:None at this time. ALTERNATIVES:At the suggestion of the City Commission. FISCAL EFFECTS:The estimated cost of the Valley Center Lift Station is $5.2M. Funding for this expenditure will primarily consist of funds received by the City from the American Rescue Plan Act of 2021 (ARPA). Additional funding, if necessary, will likely come from impact fees. Attachments: RL 012522 Final Silos Development Agreement[85].docx Silo_Gravity_Draft3 Exhibit A.pdf 221129 Exhibit B.pdf Report compiled on: January 30, 2023 344 Development Agreement for Provision of Utilities and Affordable Housing Page 1 of 12 After recording return to: Bozeman City Clerk PO Box 1230 Bozeman, MT 59771-1230 DEVELOPMENT AGREEMENT FOR PROVISION OF UTILITIES AND AFFORDABLE HOUSING This DEVELOPMENT AGREEMENT FOR PROVISIONS OF UTILITIES AND AFFORDABLE HOUSING (“Agreement”) is made and effective this ____ day of _______________, 2023, 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 Avenue, Bozeman, Montana, (“City”) and Virga Venture II LLC with a mailing address of _____________________________ (“Developer”). The City and Developer may individually be referred to as “Party” or collectively referred to herein as “the Parties.” WHEREAS, the Developer desires completion of certain public wastewater system improvements to benefit its property, and all lots and parcels constituting the property, recently annexed into the City of Bozeman through resolution number 5440, adopted by the Bozeman City Commission (“City Commission”) on November 15, 2022 and legally described as (the “Property”): Three parcels of land as described in Warranty Deed document number 2736653 Parcel 1 and Parcel 2 and the parcel described in Warrant Deed document number 2736654; situated in the NE 1/4 of Section 27, Township 1 South, Range 5 East, Principal Meridian, Gallatin County, Montana, and being more particularly described as follows: Commencing at the E 1/4 of Section 27, Township 1 South, Range 5 East, thence N.0°36'43"E. a distance of 189.78 feet to the Point of Beginning being the northeast corner of Tract 1 of Certificate of Survey No. 3035; thence N.0°36'43"E. a distance of 464.88 feet along the east line of said Section27 to the south line of highway right of way per Bargain and Sale Deed Book 145, Page 293; thence N.89°23'17"W. along said right of way a distance of 50.00 feet; thence N.0°36'43"E. a distance of 195.38 feet; thence along a non-tangent curve to the left having a radius of 523.09 feet and a central angle of 17°34'16" for an arc length of 160.42 feet, said curve having a chord bearing of N.9°16'00"W. for 159.79 feet to the southwest line of highway right of way per Bargain and Sale Deed Film 143, Page 643; thence N.33°51'43"W. a distance of 120.68 feet; thence N.53°32'27"W. a distance of 1350.11 feet; thence N.39°33'03"W. a distance of 62.05 feet; thence N.53°32'27"W. a distance of 302.20 feet; thence N.54°16'17"W. a 345 Development Agreement for Provision of Utilities and Affordable Housing Page 2 of 12 distance of 147.56 feet; thence along a non-tangent curve to the left having a radius of 1849.86 feet and a central angle of 11°37'40" for an arc length of 375.42 feet, said curve having a chord bearing of N.61°36'08"W. for 374.77 feet; thence N.82°50'39"W. a distance of 59.79 feet; thence along a non-tangent curve to the left having a radius of 1834.86 feet and a central angle of 19°20'05" for an arc length of 619.18 feet, said curve having a chord bearing of N.78°53'01"W. for 616.25 feet; thence S.0°36'05"W. a distance of 2552.36 feet along the mid section line of Section 27 to the C 1/4 of Section 27; thence N.89°29'32"E. a distance of 2221.92 feet along the mid section line of Section27 to southwest corner of Tract 1 of Certificate of Survey No. 3035; thence N.0°36'43"E. a distance of 189.74 feet; thence N.89°29'25"E. a distance of 420.77 feet to the Point of Beginning containing 114.69 acres more or less; WHEREAS, the City desires to facilitate the Developer’s request to expedite the construction of a wastewater system improvement project, the Valley Center Lift Station, to service all lots and parcels within the Property that cannot gravity drain into the Cattail Creek Drainage Basin, the Hidden Valley Lift Station, Davis Lane Sewer Line or any other planned lift station; WHEREAS, to expedite construction of the Valley Center Lift Station, the City must take certain discretionary actions to amend the City of Bozeman Wastewater Collection Facilities Plan, 2015 (“the Facility Plan”) and to amend its wastewater facilities Capital Improvement Plan (“CIP”); WHEREAS, in exchange for the City’s efforts to expedite construction of the Valley Center Lift Station and allowing a portion of the Property to gravity drain to the Cattail Creek basin, the Developer agrees to provide land and easements necessary for the construction of the Valley Center Lift Station and associated sanitary sewer infrastructure and contribute to the City’s efforts to increase the availabiltiy of affordable housing, and; WHEREAS the Developer and the City desire to set forth the terms of their agreement in writing. NOW THEREFORE, in consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. Incorporation: The foregoing recitals of this Agreement are contractual and are hereby incorporated by reference. 2. City Required Actions: 346 Development Agreement for Provision of Utilities and Affordable Housing Page 3 of 12 a. The City must conduct a public meeting to determine whether to amend the Facility Plan to revise the Baxter Creek Drainage Basin into two smaller drainage basins based on topography, long-term operation and maintenance, constructability, and regional planning considerations. As a condition to the Developer’s Required Actions, as listed below, the City must amend the Facility Plan as described herein. Should the City not amend the Facility Plan as described above, this Agreement is void and shall be released pursuant to Section 5 of this Agreement, subject to any survival provision in Section 13. b. If the City amends the Facility Plan as described above, the City must conduct a public meeting to adopt a Capital Improvements Plan (“CIP”) that includes the construction of the Valley Center Lift Station. As a condition to the Developer’s Required Actions, as listed below, the City must amend the CIP as described herein. Should the City not amend the CIP as described above, this Agreement is void. c. The City has completed a facility planning level analysis that shows a portion of the Property has the potential to gravity drain into the Cattail Creek Drainage Basin. The adjacent Cattail Creek Drainage boundary is located along the Davis Lane transportation corridor in relation to the Property. The approximate area within the Property that can or could potentially gravity drain into the Cattail Creek Drainage Basin is generally depicted on Exhibit A. Upon Developer’s submission of one or more development applications proposing to connect development within the area generally depicted on Exhibit A and City approval of the development application(s), the City agrees to allow the lots, tracts and areas of the Property that can gravity drain to utilize the existing sanitary sewer facilities in the Cattail Creek Drainage Basin. All future development within the Property requesting to gravity drain into the Cattail Creek Drainage Basin must demonstrate that such a configuration satisfies City engineering design standards and specifications and conforms to the requirements in the Bozeman Municipal Code. All wastewater infrastructure required to serve the development must receive engineering infrastructure approval prior development approval. The drainage area depicted in Exhibit A is an approximation of the actual area of the Property that could potentially gravity drain into the Cattail Creek Drainage Basin and is shown strictly to clarify the terms of this Agreement. All other areas identified within the Property that cannot satisfy the City’s engineering standards to gravity drain into the Cattail Creek Drainage Basin must gravity drain into either the future Valley Center Lift Station or Hidden Valley Lift Station as determined solely by the City in accordance with its Facility Plan, as amended. 347 Development Agreement for Provision of Utilities and Affordable Housing Page 4 of 12 d. The City will use best efforts to complete construction of the Valley Center Lift Station prior to December 31, 2026. The City will provide the Developer quarterly progress reports on the construction of the Valley Center Lift Station, including any construction delays and the cause thereof. All costs associated with construction of the Valley Center Lift Station and the construction of the sewer force main to connect the Valley Center Lift Station to the Cattail Creek Drainage Basin are the sole responsibility of the City. Future development of the Property is exempt from any special improvement district, payback district, or any other financing mechanism used by the City to fund construction of the Valley Center Lift Station, and the sewer force main to connect the Valley Center Lift Station into the Cattail Creek Drainage Basin. The Property is not exempt from special improvement districts, payback districts, or other financing mechanisms for other infrastructure including but not limited to water supply and transportation infrastructure. Notwithstanding the above, the Property is subject to all impact fees, building permit fees, or any other generally applicable fees or assessments. e. The City, at the City’s sole cost, will use best efforts to construct a sewer force main to connect the Valley Center Lift Station into the Cattail Creek Drainage Basin concurrent with or prior to construction of the Valley Center Lift Station. The sewer force main connection will likely occur at the intersection of East Valley Center and Davis Lane, however the final tie-in location will be determined by the City during the design stage of the sewer force main and Valley Center Lift Station projects. The Developer is advised that the City does not reserve capacity of its sewer infrastructure. Use of capacity in sewer infrastructure is on a first come, first served basis. 3. Developer Required Actions: a. Subject to the City amending the Facility Plan and adopting the CIP for the construction of the Valley Center Lift station and sewer force main connecting it to the Cattail Creek Drainage Basin, the Developer must grant a utility easement to the City for the location of the Valley Center Lift Station and related infrastructure, including but not limited to the sewer force main, in a location and size as agreed upon by the Parties, as generally depicted on Exhibit B, prior to approval of any preliminary plat application for any portion of Property that cannot gravity drain into the Cattail Creek Drainage Basin. Developer must also identify the proposed easement area on any preliminary plat submission. b. Upon the filing of final plat with the Gallatin County Clerk and Recorder that includes the parcel on which the Valley Center Lift Station is located, Developer must transfer fee simple ownership of the parcel on which the utility easement exists, as identified on an approved preliminary plat application, on which the 348 Development Agreement for Provision of Utilities and Affordable Housing Page 5 of 12 City will locate and construct the Valley Center Lift Station and related infrastructure, as generally depicted on Exhibit B. Developer understands the construction of the Valley Center Lift Station is contingent upon approval of one or more actions by the City. c. Developer agrees to transfer to the City of Bozeman, a community land trust, or other qualified third party acceptable to the City a five-acre parcel of land for the development of affordable housing (the “Affordable Housing Parcel”). The Affordable Housing Parcel lot must be created and platted concurrently with the parcel on which the Valley Center Lift Station will be located. After fulfillment of the City’s Required Actions and concurrent with filing of a final plat with the Gallatin County Clerk and Recorder on which the Affordable Housing Parcel is located, Developer must transfer fee simple ownership of the Affordable Housing Parcel. The Affordable Housing Parcel must be subject to a Covenant, Condition, and Restriction acceptable to the City to run with the land for 75 years from the date the Covenant, Condition, and Restriction is recorded. 4. Conditions: Nothing in this Agreement removes the Developer’s obligations to meet all applicable requirements for annexation, subdivision, or zoning. This Agreement does not give the Developer any interest or control in how the City completes the Valley Center Lift Station, nor does the Developer have an interest in or become a beneficiary of the City’s design, engineering, or construction contracts associated with the Valley Center Lift Station. 5. Waiver of Claims, Limitation of Liability, and Indemnity: To the fullest extent permitted by law, Developer waives all claims against the City, its officers and employees, agents, insurers, contractors, and consultants for any and all claims for or entitlement to special, incidental, indirect, or consequential damages arising out of, resulting from, or in any way related to City’s performance under this Agreement including the discretionary acts to amend the Facility Plan and adopt the CIP necessary to construct the Valley Center Lift Station and associated sewer infrastructure. In addition, this waiver applies to the City’s construction of the Valley Center Lift Station, including delay of completion of the same that may affect Developer. Furthermore, the Developer recognizes that if the City does not complete the City’s required actions, the Developer’s sole and exclusive remedy against the City is to be relieved of all obligations under this Agreement, except those provisions of this Agreement that survive the termination of this Agreement. In the event of default by the City, at no fault of the developer, the City shall provide, in recordable form, a written release of the Developer from this Agreement. In addition to the above, the Developer shall defend and indemnify the City from any claims brought against the City by any of Developer’s partners, investors, creditors, lenders, agents, or any other entity associated with the Developer for claims related to the City’s performance under this Agreement including the discretionary acts to amend the 349 Development Agreement for Provision of Utilities and Affordable Housing Page 6 of 12 Facility Plan and adopt the CIP for the construction of the Valley Center Lift Station and sewer force main and the City’s construction of the Valley Center Lift Station. 6. City Not Bound in Its Regulatory Authority: Developer recognizes the City enters this Agreement in its capacity as a municipality constructing public infrastructure and not in its regulatory role. Developer agrees that nothing herein binds the City to make certain approvals in its regulatory authority in review of subdivision, zoning, building, or other regulatory applications. Notwithstanding and subject to the Facility Plan and CIP being adopted by the City, the City agrees that the Developer may submit any development applications to develop the Property with the City and seek any necessary approvals from the City prior to or concurrent with the construction of the Valley Center Lift Station. In addition, should Developer obtain City approvals necessary to develop the Property, including but not limited to approvals for concurrent construction, infrastructure, and building permits, the City agrees that the Developer may develop the Property and construct all improvements concurrent with the construction of the Valley Center Lift Station. 7. Representations and Warranties: Each Party represents and warrants to the other that: a. Execution of this Agreement does not violate any agreement, bylaw, statute or ordinance binding on or applicable to such Party; and b. The individual executing this Agreement on behalf of the Party is duly authorized and empowered to execute this Agreement for the Party and following execution and delivery by both Parties this Agreement will be a legally binding obligation of the Party, enforceable against the Party in accordance with its terms. 8. Representatives and Notices: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be its Housing and Development Manager or such other individual as City shall designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission shall be directed to the City’s Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, 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. Developer’s Representative: The Developer’s Representative for the purpose of this Agreement shall be _________________ or such other individual as Developer shall designate in writing. Whenever direction to or communication with Developer is required by this Agreement, such direction or communication shall be 350 Development Agreement for Provision of Utilities and Affordable Housing Page 7 of 12 directed to Developer’s Representative; provided, however, that in exigent circumstances when Developer’s Representative is not available, City may direct its direction or communication to other designated Developer personnel or agents. c. Notices:All notices required by this Agreement shall be in writing and shall be provided to the Representatives named in this Section. Notices shall be deemed given when delivered, if delivered by courier to Party’s address shown above during normal business hours of the recipient; or when sent, if sent by email or fax (with a successful transmission report) to the email address or fax number provided by the Party’s Representative; or on the fifth business day following mailing, if mailed by ordinary mail to the address shown above, postage prepaid. 9. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both Parties hereto. The Developer may not assign Developer’s rights, duties or obligations arising hereunder, without the prior written consent of the City. 10. 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. 11. 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, expert costs and costs related to any appeal. 12. 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. 13. Survival: Developer’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. In addition, so long as Developer has met all of its obligations under this Agreement, the exemption of the 351 Development Agreement for Provision of Utilities and Affordable Housing Page 8 of 12 Developer, its successors and assigns, and any future owner of the Property, or any lots or tracts constituting the Property, from participating in any special improvement district, payback district, or any other financing mechanism used by the City to fund construction of the Valley Center Lift Station and associated sewer force main shall survive the termination or expiration of this Agreement. In the event of default or termination by the City, Developer may still gravity drain those lots and tracts on the Property that receive City approval to gravity drain, in accordance with the City’s engineering standards, into the Cattail Creek Drainage Basin. 14. Headings: The headings used in this Agreement are for convenience only and are not be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 15. Severability: If any portion of this Agreement is held to be void or unenforceable then such portion of this Agreement shall be severed from the Agreement and the balance of this Agreement shall continue in effect. 16. Applicable Law: The Parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 17. Binding Effect: This Agreement runs with the land and is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 18. No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the Parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or enforced by a third party. 19. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 20. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the Parties. 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. 21. Consent to Electronic Signatures: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** 352 Development Agreement for Provision of Utilities and Affordable Housing Page 9 of 12 IN WITNESS WHEREOF,the Parties hereto have executed this Agreement the day and year first above written or as recorded in an electronic signature. DATED this _____ day of __________________, 2023. LANDOWNER _________________________________________ Virga Venture II LLC By: Title: STATE OF ____________ ) :ss COUNTY OF __________ ) On this ________ day of ____________________, 2023, before me, the undersigned, a Notary Public for the State of , personally appeared _____________________________, known to me to be the landowner that executed the within instrument, and acknowledged to me that they executed the same for and on behalf of landowner. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. (SEAL) _________________________________________ (Printed Name Here) Notary Public for the State of _________ Residing at _______________________ My Commission Expires:____________ (Use 4 digits for expiration year) 353 Development Agreement for Provision of Utilities and Affordable Housing Page 10 of 12 DATED this _____ day of __________________, 2023. CITY OF BOZEMAN ____________________________________ By: Jeff Mihelich, City Manager ATTEST: ________________________________ City Clerk STATE OF MONTANA ) :ss COUNTY OF GALLATIN ) On this _____ day of , 2023, before me, a Notary Public for the state of Montana, personally appeared Jeff Mihelich and Mike Maas, known to me to the persons described in and who executed the foregoing instrument as City Manager and City Clerk respectively, of the City of Bozeman, whose names are subscribed to the within instrument and acknowledged to me that they executed the same for and on behalf of said City. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. (SEAL) _________________________________________ Notary Public for the State of Montana 354 Development Agreement for Provision of Utilities and Affordable Housing Page 11 of 12 Exhibit A 355 Development Agreement for Provision of Utilities and Affordable Housing Page 12 of 12 EXHIBIT B 356 357 R=1834.86' L=619.18' Δ=19°20'05" CB=S78°53'01"E CH=616.25' S82°50'39"E 59.79'R=1849.86' L=375.42' Δ=11°37'40" CB=S61°36'08"E CH=374.77' S54°16'17"E 147.56' S53°32'27"E 302.20' S39°33'03"E 62.05' S5 3 ° 3 2 ' 2 7 " E 1 3 5 0 . 1 1 ' N0°36'05"E 25.00' S33°51'43"E 120.68' R=523.09' L=73.71' Δ=8°04'27" CB=S14°00'54"E CH=73.65' S0°36'05"W 92.06' FIGURE NUMBER © PROJECT NO.DRAWN BY: DSGN. BY: APPR. BY: DATE: COPYRIGHT MORRISON-MAIERLE,2022 Plotted by matt e. ekstrom on Nov/29/2022 engineers surveyors planners scientists MorrisonMaierle 2880 Technology Blvd West Bozeman, MT 59718 406.587.0721 www.m-m.net N:\6916\002 - Davis Ln ZMA and Annex\ACAD\Exhibits\6916002-Exhibit B.dwg 6916.002 EX. B CF/JW BOZEMAN MONTANAMEEEXHIBIT B MEE 11/2022 100 2000 SCALE IN FEET V A L L E Y C E N T E R R O A D - H I G H W A Y S T P S 2 3 5 1 ( 4 ) 5 EASEMENT AREA PER STPS 235 1 (4) 5 PLANS BARGAIN AND SALE DEED FILM 143, PAGE 643 EASEMENT AREA PER STPS 235 1 (4) 5 PLANS BARGAIN AND SALE DEED FILM 143, PAGE 640 WARRANTY DEED DOCUMENT No. 2736653 PARCEL 2 LOT 1 VALLEY CENTER SUB.LOT 1 A LOT 7 LOT 7 A LOT 8 LOT 8 LOT 1 1 LOT 1 1 A LOT 1 1 B PARK WARRANTY DEED DOCUMENT No. 2736653 PARCEL 1 WARRANTY DEED DOCUMENT No. 2736654 PROPOSED SEWER FORCE MAIN EASEMENT (30.0' WIDE)30.0'30.0'30.0' NORTH 1 4SECTION 27 PROPOSED SEWER FORCEMAIN EASEMENT (30.0' WIDE) HIGHWAY RIGHT OF WAY PER I-IG-90-6 (3) 287 PLANS BARGAIN AND SALE DEED BOOK 145, PAGE 293 SECTION 27SECTION 26HIGHWAY RIGHT OF WAY PER STPS 235 1 (4) 5 PLANS BARGAIN AND SALE DEED FILM 143, PAGE 640 HIGHWAY RIGHT OF WAY PER STPS 235 1 (4) 5 PLANS BARGAIN AND SALE DEED FILM 143, PAGE 643 POTENTIAL LIFT STATION LOCATION 358 Memorandum REPORT TO:City Commission FROM:Taylor Chambers, Deputy City Clerk Mike Maas, City Clerk Jeff Mihelich, City Manager SUBJECT:Appointment to the Community Development Advisory Board MEETING DATE:February 7, 2023 AGENDA ITEM TYPE:Citizen Advisory Board/Commission RECOMMENDATION:I move to appoint one member to the Community Development Board for a term ending December 31, 2024. 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:The Community Development Board has one position available due to a resignation. The City Clerks' Office posted the vacant position online and ran a legal ad in the Bozeman Daily Chronicle. Applications were open and accepted until January 20, 2023. Two applications were received. UNRESOLVED ISSUES:None ALTERNATIVES:As determined by the Commission. FISCAL EFFECTS:None Attachments: Jason Delmue.pdf Matthew Hausauer.pdf Report compiled on: February 2, 2023 359 From:City of Bozeman, MT To:Agenda Subject:*NEW SUBMISSION* Citizen Advisory Board Application Date:Friday, January 20, 2023 4:46:57 PM Citizen Advisory Board Application Submission #:2198294 IP Address:98.127.252.86 Submission Date:01/20/2023 4:46 Survey Time:22 minutes, 45 seconds You have a new online form submission. Note: all answers displaying "*****" are marked as sensitive and must be viewed after your login. Read-Only Content Applicant Information Full Name Jason Delmue Residential Address 18 E. Peach St. Bozeman, MT 59715 Primary Phone 4066002896 Additional Phone Current Occupation small-scale, compatible infill development Downtown Employer My Bad Self Email delmue@yahoo.com Which position are you applying for? Community Development Board Do you live in City Limits? (Some positions do require you live within Bozeman city limits, while others do not.) Yes How long have you lived in the Bozeman Area? 11 years or more Have you ever served on a City or County Board or Commission? Yes 360 Where, how long, and what Board? Bozeman Area Bicycle Advisory Board from 2006 to when the advisory boards were reorganized, at which time I was the President of BABAB. Please describe your professional and personal experiences, interest, and qualifications that make you a good fit for this board. Keenly interested in sustainable growth and local governance and have been following the City's several plans and code updates as well as the proceedings of the Community Development Dept and Commission. Professional education in accounting, then law. Professional experience in reading and applying statutory/code regimes. Personal experience in compatible infill development Downtown, from planning through construction and site maintenance. Versed in the pressures of growth and the trade-offs. The City of Bozeman strongly values diversity, equity and inclusion (DEI). Describe any efforts you have engaged in to expand your understanding of DEI. I am generally familiar with DEI in our community, most regularly in the City and School District's efforts to promote DEI (and, in the case of the schools, the complimentary SEL). Specifically regarding the City of Bozeman's efforts, I read the policy review Bozeman as an Inclusive City, watched the Fall 2021 Roundtable on Equity and Inclusion, and read the quarterly Inclusive City Reports as well as saw some of the presentations to the Commission. I will continue to pay attention to this. References Read-Only Content Reference #1 Full Name Rob Pertzborn Phone 4065828988 Email rpertzborn@intrinsikarchitecture.com Section Break Reference #2 Full Name Taylor Lonsdale Phone 4065822286 Email tlonsdale@bozeman.net The Bozeman City Charter, voted in by the citizens of Bozeman in 2008, requires annual ethics training. If appointed, do you understand you will be expected to take online and in person ethics training? Yes How did you hear about this board or vacancy? From following the City Commission and the Community Development Advisory Board Is there any other information that you feel we need to know? I have a track record of prioritizing community benefit over personal interest. One example was pursuing bike lanes on Peach Street, on which my house fronts. Working with others on BABAB and Rob Pertzborn, we measured the street sections block by block to determine how bike lanes could fit. The solution was to remove parking on the south side of Peach (my side) and have only a bike lane. Doing so reduced the development potential of my own property (as well as removed the street parking). 361 Read-Only Content Thank you, City Of Bozeman This is an automated message generated by Granicus. Please do not reply directly to this email. 362 From:City of Bozeman, MT To:Agenda Subject:*NEW SUBMISSION* Citizen Advisory Board Application Date:Tuesday, January 17, 2023 3:23:17 PM Citizen Advisory Board Application Submission #:2191029 IP Address:98.127.254.31 Submission Date:01/17/2023 3:23 Survey Time:44 minutes, 25 seconds You have a new online form submission. Note: all answers displaying "*****" are marked as sensitive and must be viewed after your login. Read-Only Content Applicant Information Full Name Matthew Hausauer Residential Address 1919 Bridger Drive Bozeman, MT 59715 Primary Phone 4065999124 Additional Phone Current Occupation Civil Engineer Employer Lynx Consulting LLC Email matthausauer@gmail.com Which position are you applying for? Community Development Board Do you live in City Limits? (Some positions do require you live within Bozeman city limits, while others do not.) Yes How long have you lived in the Bozeman Area? 11 years or more Have you ever served on a City or County Board or Commission? Yes 363 Where, how long, and what Board? I served on the Planning Board from 2021-2022 (I did not reapply with the consolidation of the Boards). I previously served on the Recreation and Parks Advisory Board for 5 years. Please describe your professional and personal experiences, interest, and qualifications that make you a good fit for this board. I'm a licensed professional civil engineer that has worked primarily within the City of Bozeman and Gallatin County but have been involved in projects across Montana and the surrounding states for the last 10+ years. Within the City - I've managed projects through all stages (permitting to occupancy) from small, single-household developments on one lot to large, mixed-use major subdivisions on 100+ acres. I'm a big outdoor enthusiast and frequent the City's trails, parks, and ice rinks. The City of Bozeman strongly values diversity, equity and inclusion (DEI). Describe any efforts you have engaged in to expand your understanding of DEI. I am a strong supporter of inclusion for all. I do not have any formal DEI training other than standard Ethics and HR classes/training but I do have a professional knowledge of accessibility/ADA regulations/requirements. I've travelled to nearly all US states and have been to 30+ countries so I do my best to experience several cultures and be more empathetic towards those that have not had the same opportunities/fortune that I have experienced in my time. References Read-Only Content Reference #1 Full Name John Alston Phone 4065823200 Email jalston@bozeman.net Section Break Reference #2 Full Name Addi Jadin Phone 4065822908 Email ajadin@bozeman.net The Bozeman City Charter, voted in by the citizens of Bozeman in 2008, requires annual ethics training. If appointed, do you understand you will be expected to take online and in person ethics training? Yes How did you hear about this board or vacancy? City Commission/Community Development Board Meetings Is there any other information that you feel we need to know? I feel like I have a strong understanding of the Bozeman Unified Development Code, Bozeman Community Plan, Gallatin Triangle Plan, as well as the City's guiding engineering documents (Design Standards, Modifications to MPWSS, Water/Wastewater/Transportation Master Plans, etc.). Thank you for your time and consideration! Read-Only Content Thank you, 364 City Of Bozeman This is an automated message generated by Granicus. Please do not reply directly to this email. 365