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HomeMy WebLinkAbout06-27-23 City Commission Meeting Agenda & Packet MaterialsA.Call to Order - 6:00 PM - Commission Room, City Hall, 121 North Rouse This meeting will be held both in-person and also using an online video conferencing system. You can join this meeting: Via Video Conference: 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 +1 669 900 9128 Access code: 933 7244 1920 B.Pledge of Allegiance and a Moment of Silence C.Changes to the Agenda D.Authorize Absence D.1 Authorize the Absence of Mayor Andrus and Commissioner Pomeroy (Maas) E.Public Service Announcements F.FYI G.Commission Disclosures H.Consent H.1 Accounts Payable Claims Review and Approval (Waters) THE CITY COMMISSION OF BOZEMAN, MONTANA REGULAR MEETING AGENDA Tuesday, June 27, 2023 How to Participate: If you are interested in commenting in writing on items on the agenda please send an email to agenda@bozeman.net or visit the Public Comment Page prior to 12:00 p.m. on the day of the meeting. Public comments will also be accepted in-person and through video conference during the appropriate agenda items but you may only comment once per item. As always, the meeting will be recorded and streamed through the Commission's video page and available in the City on cable channel 190. For more information please contact the City Clerks' Office at 406.582.2320. 1 H.2 Request for Authorization to Write-Off Stale-Dated Accounts Payable Checks from the City's General Accounting Ledger(Stewart) H.3 Authorize the City Manager to Sign a Letter of Agreement Accepting a Donation in the Amount of $3,000,000 from the Bozeman Public Library Foundation for the Bozeman Community Center Project(Henderson) H.4 Authorize the City Manager to Sign a Letter of Agreement Accepting a Donation in the Amount of $1,000,000 from the Bozeman Public Library Foundation for the Third Installment for Construction Services for the Bozeman Public Library Renovation Project(Henderson) H.5 Authorize the City Manager to sign Notice of Award and Contract Agreement with Specialty Applicators, LLC for Application of an Asphalt Surface Treatment(Van Delinder) H.6 Authorize the City Manager to Sign a Notice of Award and Purchase Agreement with Tri State Truck and Equipment, Inc. for One (1) New 2023 or Newer Volvo D13 Tractor Truck(Van Delinder) H.7 Authorize the City Manager to Sign the Aftermarket Comprehensive Services Plan with Pall Water for Annual Inspection of the City of Bozeman Pall Water Aria Filtration System(Miller) H.8 Authorize the City Manager to Sign a Professional Services Agreement with the Downtown Bozeman Partnership for the Administration of the Downtown Business Improvement District for Fiscal Year 2024(Cope) H.9 Authorize the City Manager to Sign a Professional Services Agreement with the Downtown Bozeman Partnership for the Administration of the Downtown Urban Renewal District for Fiscal Year 2024(Staley ) H.10 Authorize the City Manager to Sign a Professional Services Agreement for the Engineering Review Fee Study with BerryDunn(Kohtz) H.11 Authorize the City Manager to Sign a Professional Services Agreement with Mountain Alarm - Bozeman for City Hall Security Alarm(Ziegler) H.12 Authorize the City Manager to Sign a Professional Services Agreement with Mountain Alarm - Bozeman for Bozeman Public Library Security Alarm(Tolhurst) H.13 Authorize City Manager to Sign a Professional Services Agreement with Human Resource Development Council District IX for Community Housing Program Management(Munfrada) H.14 Authorize the City Manager to Sign an Amendment 1 to Professional Services Agreement with Sanderson Stewart for Architectural, Engineering, Land Surveying and Land-Use Planning Services.(Fine) H.15 Authorize the City Manager to Sign the Second Addendum to the PSA with Water and Environmental Technologies, Inc. (WET), to Provide Environmental Consulting Services pertinent to the East Gallatin Landfill(Flammond) 2 H.16 Authorize the City Manager to Sign Amendment No. 4 to the Professional Services Agreement with Advanced Engineering and Environmental Services, Inc. for the Bozeman Wastewater Collection System Phase II Model Update(Lehigh) H.17 Resolution 5434, Annexation of 0.54 Acres and Adjacent Right-of-way, the 2103 Bridger Drive Annexation, Application 21123(Rogers) H.18 Resolution 5497, Authorizing the City Manager to Sign Prime Change Order 3 and Guaranteed Maximum Price Amendment 5 with Martel Construction, Inc. for the Construction of the Bozeman Public Library Renovation Project(Henderson) H.19 Resolution 5499, Authorizing the City Manager to Sign Prime Change Order 1 and Guaranteed Maximum Price Amendment 3 with Martel Construction, Inc. for the Construction of the Fire Station 2 Relocation Project(Henderson) H.20 Resolution 5501, Certification of Delinquent City Assessments to the County (Hodnett) H.21 Ordinance 2121 Provisional Adoption, of the 2103 Bridger Drive Zone Map Amendment Initially Establishing an R-2, Residential Moderate Density District, Zone to 0.5 and the Accompanying Adjacent Right-of way in Association with Annexation of the Same, Resolution 5434, the 2103 Bridger Drive Annexation, Application 21123(Rogers) H.22 Ordinance 2138 Final Adoption, of the North 8th Zone Map Amendment Requesting Amendment of the City Zoning Map to Change the Zoning on 0.4828 Acres from R-4 (High Density Residential District) to R-5 (Residential Mixed-Use High Density District), Located on the Southwest Corner of North 8th Avenue and West Lamme Street, Application 22366(Rogers) H.23 Ordinance 2141 Final Adoption, of the West Kagy Zone Map Amendment 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(Rogers) I.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 per topic. 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. J.Action Items J.1 Ordinance 2131, Provisional Adoption of The Short Term Rental Affirmative Obligations Text Amendment, Application 23147(Lyon) 3 J.2 FY24 City Manager's Recommended Budget Presentation: Internal Service Funds, Enterprise Funds, Special Assessment Districts (Street Maintenance, Street Arterials & Collectors, Parks & Trails District, and Tree Maintenance (Forestry))(Hodnett) K.Special Presentation K.1 Impact Fee Study Update and Project Kickoff (Saunders) L.Work Session L.1 The Economics of Neighborhood Commercial (Fine) M.FYI / Discussion N.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. 4 Memorandum REPORT TO:City Commission FROM:Alex Newby, Deputy City Clerk Mike Maas, City Clerk Kira Peters, Assistant City Manager Jeff Mihelich, City Manager SUBJECT:Authorize the Absence of Mayor Andrus and Commissioner Pomeroy MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Administration RECOMMENDATION:Authorize the Absence of Mayor Andrus and Commissioner Pomeroy STRATEGIC PLAN:1.1 Outreach: Continue to strengthen and innovate in how we deliver information to the community and our partners. BACKGROUND:Mayor Andrus and Commissioner Pomeroy notified City Manager Mihelich and Deputy Mayor Cunningham of their anticipated absences. UNRESOLVED ISSUES:None ALTERNATIVES:None FISCAL EFFECTS:None Report compiled on: March 16, 2023 5 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:June 27, 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 claims to be presented to the City Commission within one year of the date the claims accrued. 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. In addition to the weekly check issue, please provide approval for checks dated 6/15 thru 6/21, as there was no commission meeting on 6/20. 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: June 22, 2023 6 Memorandum REPORT TO:City Commission FROM:Levi Stewart, Assistant City Controller Laurae Clark, City Treasurer Aaron Funk, City Controller Melissa Hodnett, Finance Director SUBJECT:Request for Authorization to Write-Off Stale-Dated Accounts Payable Checks from the City's General Accounting Ledger MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Finance RECOMMENDATION:The City Commission approve the "writing-off" from the City's general accounting ledger stale Accounts Payable warrants (also known as checks) issued by the City over a year ago that have not been cashed by the recipient. 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:Per Section 7-6-4303 of Montana Code Annotated (MCA), the City may cancel municipal warrants that have remained outstanding or un-cashed for one year or longer. In alignment with MCA, this item requests that stale Accounts Payable checks (also known as warrants) issued by the City over a year ago that have not been cashed be "written off" of the General Ledger of the City. Attached to this report, the Commission will find details on the checks to be written off and information specific to attempts have made to contact check recipients. The Commission's action of writing-off these checks will not preclude the holder of a stale check from ever being paid the amount they are due. The action by the Commission will simply result in eliminating the effects of this stale activity from the City's Balance Sheet. This action allows the City to maintain records in conformity with Generally Accepted Accounting Principles which will be validated by the annual audit. UNRESOLVED ISSUES:Recipients of checks (also known as warrants) from the City who have not cashed them have not responded to multiple inquiries. Writing the checks out of the general ledger does not remove the opportunity for a recipient to 7 later cash a check. In the event a written off check is cashed, funds will be made available within the appropriate fiscal year's budgeted dollars which may include Reserve Funds. Reserve funds can be used for unexpected expenses such as these. ALTERNATIVES:As suggested by the Commission. FISCAL EFFECTS:The total amount of checks to be written off of the General Ledger is $20,946.44. As a result, Cash (an asset) will be added back to the City's balance sheet with a corresponding amount recorded to "Abandoned Property" (a liability), resulting in no change in the City's Net Financial Position. Attachments: Stale Checks for Write-Off FY23.pdf Report compiled on: June 20, 2022 8 Check Type Check #Date Amount Business Name/Last Name First Name Address City State Zip 1st Sent 2nd Sent 3rd Sent Operating 226696 07/07/2021 $12.44 BRC WILSON, LLC 2441 Richau Ln Bozeman MT 59715 01/20/22 04/11/22 10/25/2022 Operating 226728 07/07/2021 $9.32 FITZGERALD MICHAEL 316 N 10th Ave Bozeman MT 59715 01/20/22 Returned Operating 226751 07/07/2021 $79.67 HOVLAND LAURA 3466 S 28th Ave Bozeman MT 59718 Operating 226885 07/21/2021 $42.26 BUCKINGHAM HANNAH 3143 Cattail St Unit B Bozeman MT 59718 Operating 226976 07/21/2021 $59.60 KEITH D RYAN 4094 Carbon St Bozeman MT 59718 01/20/22 04/11/22 10/25/2022Operating22698307/21/2021 $98.99 KIDD ALISON 303 N 17th Ave Bozeman MT 59715 01/20/22 04/11/22 10/25/2022Operating22705407/21/2021 $70.83 POESCHL CARL 1612 W OLIVE ST APT 12 Bozeman MT 59715 01/20/22 04/11/22 10/25/2022Operating22706307/21/2021 $76.85 RASMUSSEN COLTON 1075 Abigail Ln Unit A Bozeman MT 59718 01/20/22 04/11/22 10/25/2022Operating22708907/21/2021 $66.77 STINSON NICHOLAS 4452 Cascade St Unit B Bozeman MT 59718 01/20/22 04/11/22 10/25/2022Operating22710207/21/2021 $60.55 THOMAS MALLORY 907 W Villard St Bozeman MT 59715 01/20/22 ReturnedOperating22713107/21/2021 $16.75 WILLIAMS TORIE 1903 Camden Dr Billings MT 59102 01/20/22 ReturnedOperating22762008/04/2021 $14.80 VINCENT-KULPER LINDSAY 2202 Sourdough Rd Bozeman MT 59715 01/20/22 04/11/22 10/25/2022Operating22765308/18/2021 $25.00 BENNETT ROBERT 2530 Fairway Dr Bozeman MT 59715 01/20/22 04/11/22 10/25/2022Operating22773408/18/2021 $95.73 HERSHEY ALEX 2362 Milkhouse Ave Bozeman MT 59718 01/20/22 ReturnedOperating22778308/18/2021 $9.31 MELLING WOODROW 32 Pheasant Run Unit 302 Whitefish MT 59937 01/20/22 04/11/22 10/25/2022Operating22793408/25/2021 $64.78 BULGRIN TROY 3504 GOLDEN VALLEY DR BOZEMAN MT 59718 01/20/22 04/11/22 10/25/2022Operating22795308/25/2021 $63.65 CREIGHTON BRADLEY 7127 N Rachel Way Alta WY 83414Operating22798808/25/2021 $24.08 GENTRY TIMOTHY 708 S 12th Ave Unit A Bozeman MT 59715 01/20/22 04/11/22 ReturnedOperating22799908/25/2021 $96.98 HALL NICHOLAS 1404 S 3rd Ave Bozeman MT 59715 01/20/22 04/11/22 ReturnedOperating22801208/25/2021 $72.32 HYSTAD RACHEL 937 Saxon Way Unit B Bozeman MT 59718Operating22804008/25/2021 $56.45 MAYER TYLER 732 S 12th Ave Unit A Bozeman MT 59715 01/20/22 04/11/22 10/25/2022Operating22805508/25/2021 $35.00 NAGEL SAMUEL PO BOX 2434 FRASER CO 80442 01/20/22 04/11/22 10/25/2022Operating22806108/25/2021 $27.40 OLSON SAMANTHA 2616 2nd Ave N Great Falls MT 59401 01/20/22 04/11/22 10/25/2022Operating22808908/25/2021 $67.81 SHEARAN DELANEY 1155 Abigail Ln Unit B Bozeman MT 59718Operating22813208/25/2021 $50.00 WEIDE JACE 1611 W Koch St Unit 16 Bozeman MT 59715 01/20/22 04/11/22 Returned Operating 228288 09/08/2021 $43.48 AREVALO CESAR 600 NW 207TH ST APT 108 MIAMI GARDENS FL 33169 01/20/22 04/11/22 10/25/2022 Operating 228364 09/08/2021 $44.41 JOHNSON GARETH 221 E ROOSEVELT ST APPLETON WI 54911 01/20/22 04/11/22 10/25/2022 Operating 228383 09/08/2021 $29.70 MCLENNAN CASEY 1439 W Babcock St Bozeman MT 59715 01/20/22 04/11/22 10/25/2022 Operating 228413 09/08/2021 $76.04 PIERCE Sarah A 3123 Warbler Way Unit B Bozeman MT 59718 01/20/22 Returned Operating 228428 09/08/2021 $26.87 SERICH SAMI 323 N 15th Ave Bozeman MT 59715 01/20/22 04/11/22 10/25/2022Operating22842909/08/2021 $86.90 SIGLER DAVID 1405 1/2 S Willson Ave Bozeman MT 59715Operating22843809/08/2021 $65.88 STRATFORD R L 5810 Sam Snead Trl Billings MT 59106Operating22858809/22/2021 $92.18 ASADOLLAHI, ALI & RAHELEH HEMMAT 22844 NE 14TH ST SAMMAMISH WA 98074 01/20/22 04/11/22 10/25/2022Operating22859209/22/2021 $356.85 BERNAUER CHRISTY ELIZABETH 3527 S FEDERAL WAY STE 103 BOISE ID 83705 01/20/22 04/04/22Operating22859609/22/2021 $48.50 CASSAVAUGH, RYAN & SARAH BREELAND 225 PIONEER DR UNIT 34 BOZEMAN MT 59715 01/20/22 04/11/22 10/25/2022Operating22866709/22/2021 $355.00 GENEVIEVE POOLE No address Provided Bozeman MT 59715Operating22893010/06/2021 $71.83 GAFFNEY BRIANA 104 S 29th Ave Bozeman MT 59718 01/20/22 ReturnedOperating22896610/06/2021 $47.10 KINCANNON WILL 9665 GENESEE AVE APT A2 SAN DIEGO CA 92121 01/20/22 04/11/22 10/25/2022Operating22899610/06/2021 $26.59 MOGER MASON 807 W Villard St Bozeman MT 59715 01/20/22 ReturnedOperating22904810/06/2021 $49.30 ROCKSTAD DONNA 3361 S 28th Ave Bozeman MT 59718 01/20/22 04/11/22 10/25/2022Operating22905410/06/2021 $35.00 SCHROEDER MELANIE 2721 Kingsway Dr Homedale ID 83628 01/20/22 04/11/22 10/25/2022Operating22907510/06/2021 $107.96 STORMY LLC 2264 Jackrabbit Ln Unit B Bozeman MT 59718 01/20/22 04/11/22 10/25/2022Operating22910710/06/2021 $9.99 VARONY ABIGAIL 1027 N Cottonwood Rd Bozeman MT 59718 01/20/22 04/11/22 10/25/2022Operating22911510/06/2021 $123.92 WATSON VINCENT 220 S 16th Ave Unit D Bozeman MT 59715 01/20/22 04/11/22 10/25/2022Operating22978311/3/21 $172.64 SCHLENDER SANDY & DOUG 2827 Jackrabbit Ln Bozeman MT 59718 04/11/22 10/25/2022 02/02/23Operating22978611/3/21 $5.00 SHOULDERBLADE DYRON PO BOX 3987 Bozeman MT 59772 04/11/22 10/25/2022 ReturnedOperating22986211/10/21 $5.41 BIANCHI Conor & Etosha 226 S 18th Ave Unit B Bozeman MT 59715 04/11/22 10/25/2022 02/02/23Operating23016711/24/21 $13.12 BRENNAN NOAH 275 N Ferguson Ave Unit 3 Bozeman MT 59718 04/11/22 10/25/2022 02/02/23Operating23025611/24/21 $14.24 PAYNE AREIL 206 N Hanley Ave Unit B Bozeman MT 59718 04/11/22 10/25/2022 ReturnedOperating23062712/15/21 $8.31 HEMINGWAY-ROTHENBERG, ROBERT 2890 Spring Hill Rd Bozeman MT 59718 04/11/22 10/25/2022 02/02/23 Operating 230655 12/15/21 $46.13 MEZIN KELI 476 Enterprise Blvd #316 BOZEMAN MT 59718 04/11/22 10/25/2022 02/02/23 Operating 230699 12/15/21 $90.76 STEPHAN ZOE 1043 Twin Lakes Ave Unit B BOZEMAN MT 59718 04/11/22 10/25/2022 02/02/23 Operating 230730 12/15/21 $25.00 WINES CW 1207 Idaho St Unit B Belgrade MT 59714 04/11/22 10/25/2022 02/02/23 Operating 230804 12/22/21 $18.11 GUSLANDER DAVID 6800 Squaw Creek Rd Jackson WY 83001 04/11/22 Returned Operating 230982 12/29/21 $125.34 DUNAWAY, MICHAEL T & EMMA J KUCHARSKI 503 W LAMME ST BOZEMAN MT 59715 04/11/22 10/25/2022 02/02/23Operating23109812/29/21 $131.78 MAISEY MICHELE 2863 N 27TH AVE UNIT 3 BOZEMAN MT 59718 04/11/22 10/25/2022 02/02/23Operating23116812/29/21 $16.46 SIMONSON ROBERT S & OLIVIA M 611 WESTGATE AVE STE A BOZEMAN MT 59718 04/11/22 10/25/2022 02/02/23Operating2315921/5/22 $21.28 HOLDEN LINDSIE 515 MICHAEL GROVE AVE UNIT 40 BOZEMAN MT 59718 04/11/22 ReturnedOperating2315991/5/22 $26.40 JOHNSON EMILY 114 MICHAEL GROVE AVE BOZEMAN MT 59718 04/11/22 10/25/2022 02/02/23Operating2316091/5/22 $13.68 KIRCHHOFF STEVE 516 S 6TH AVE BOZEMAN MT 59715 04/11/22 10/25/2022 02/02/23Operating2317511/12/22 $107.59 DIXON, JEREMY & STELLA SONG 21 WHITFIELD RD SOUTH HAMPTON NY 11968 04/11/22 10/25/2022 02/02/23Operating2317711/12/22 $116.14 FRANCIS GRAHAM Bozeman MT 59718 04/11/22Operating2320491/26/22 $118.00 ALLIANT INSURANCE SERVICES INC PO BOX 8473 PASADENA CA 91109 04/11/22 10/25/2022 02/02/23Operating2323102/2/22 $23.75 JOHNSON KELSEY 3 4TH AVE E THREE FORKS MT 59752 04/11/22Operating2323512/2/22 $67.29 RADKEVICH DMITRI 498 N WESTERN DR BOZEMAN MT 59718 04/11/22 ReturnedOperating2325382/9/22 $37.19 SALVATI ALVIN 5482 SNOWBRITE ST BOZEMAN MT 59718 04/11/22 10/25/2022 02/02/23Operating2325652/9/22 $359.04 TNT SPRINGS INC 31 ANDREA DR BELGRADE MT 59714 04/11/22 10/25/2022 02/02/23Operating2326882/16/22 $13.17 JENANYA AUSTIN 4088 BROADWATER CT BOZEMAN MT 59718 04/11/22 10/25/2022 02/02/23Operating2328142/16/22 $12.88 BACHMAN TYLER 362 MERIWETHER AVE BOZEMAN MT 59718 04/11/22 10/25/2022 ReturnedOperating2329822/23/22 $10.80 UGOROWSKI NOAH 2710 HEDGEROW CT BOZEMAN MT 59718 04/11/22 10/25/2022 02/02/23Operating2331173/2/22 $11.43 MANTILA WILHO & INGE 515 PARK PL BOZEMAN MT 59715 10/25/2022 02/02/23 Returned 9 Operating 233118 3/2/22 $7.12 MILLSPAUGH ANDREW 411 1/2 N TRACY AVE BOZEMAN MT 59715 10/25/2022 02/02/23 04/12/23 Operating 233163 3/9/22 $150.00 AGUILAR GINA 1641 WINDROW DR BOZEMAN MT 59718 10/25/2022 Returned Operating 233179 3/9/22 $12.34 BOHAGER FRANCIS 1207 E MAIN ST #231 BOZEMAN MT 59715 10/25/2022 02/02/23 04/12/23 Operating 233230 3/9/22 $83.96 HOLLE JOSHUA 1506 BUCKRAKE AVE BOZEMAN MT 59718 10/25/2022 02/02/23 04/12/23 Operating 233330 3/9/22 $1,083.75 TIERNEY KAROLINA PO BOX 726 BOZEMAN MT 59771 10/25/2022 Operating 233403 3/16/22 $86.00 EVINGER JAEGER CITY EMPLOYEE-CD BOZEMAN MT 59715 10/25/2022Operating2335783/23/22 $5.75 DAVE'S LOCK & KEY 210 N 7TH AVE BOZEMAN MT 59715 10/25/2022 02/02/23 04/12/23Operating2337223/30/22 $16.00 BLACK DEREK CITY EMPLOYEE-WATER BOZEMAN MT 59715 10/25/2022Operating2337773/30/22 $62.22 LYNN DILLON 125 S 15TH AVE UNIT A BOZEMAN MT 59715 10/25/2022 ReturnedOperating2340804/13/22 $43.01 GOSSETT KYLE PO BOX 1115 MANHATTAN MT 59741 10/25/2022 02/02/23 04/12/23Operating2342904/20/22 $102.99 PERRY LESLIE 1707 S ROUSE AVE BOZEMAN MT 59715 10/25/2022 ReturnedOperating2343344/15/22 $15.00 BLACK DEREK CITY EMPLOYEE-WATER BOZEMAN MT 59715 10/25/2022Operating2343854/27/22 $13.17 DANKELMAN KYLE 3242 ROSE ST BOZEMAN MT 59718 10/25/2022Operating2344404/27/22 $57.35 HOSMAN CLINT 2402 WHEELER DR UNIT A BOZEMAN MT 59718 10/25/2022 02/02/23 04/12/23Operating2344794/27/22 $22.38 OBRADOVICH JAMES 368 KIMBALL AVE UNIT A BOZEMAN MT 59718 10/25/2022 02/02/23 04/12/23Operating2345635/4/22 $12.59 CAPPON WILLIAM G & SARAH M 1020 S TRACY AVE BOZEMAN MT 59715 10/25/2022 02/02/23 04/12/23Operating2345935/4/22 $52.48 FIRTH KATELYN 1 CHARLIES WAY CARDWELL MT 59721 10/25/2022 02/02/23 04/12/23Operating2346025/4/22 $14.34 GIBSON JUSTIN 3765 GALLOWAY ST APT B304 BOZEMAN MT 59718 10/25/2022 02/02/23 04/12/23Operating2346055/4/22 $53.96 HARD TIMES INC 771 N 15TH AVE BOZEMAN MT 59715 10/25/2022 02/02/23 04/12/23Operating2346115/4/22 $16.10 JOHNSON GINIA 2411 DAWS DR APT B BOZEMAN MT 59715 10/25/2022 02/02/23 04/12/23Operating2346475/4/22 $60.03 NAUMANN JOHN 3069 FEN WAY UNIT A BOZEMAN MT 59718 10/25/2022 02/02/23 04/12/23Operating2346915/4/22 $12.59 TOWERY RACHEL 1515 S BLACK AVE APT 4 BOZEMAN MT 59715 10/25/2022 02/02/23 04/12/23Operating2347555/11/22 $1,024.05 BARTIMCO PROPERTIES INC 701 GOLD AVE BOZEMAN MT 59715 10/25/2022 02/02/23 04/12/23Operating2347575/11/22 $198.32 BERNAUER CHRISTY ELIZABETH 3527 S FEDERAL WAY STE 103 BOISE ID 83705 10/25/2022 02/02/23 04/12/23Operating2347595/11/22 $126.22 BRAUER KARLA & FREDERICK E 2632 GELDING LN LIVERMORE CA 94551 10/25/2022 02/02/23 04/12/23Operating2347635/11/22 $65.34 CROSBY CHRISTINE E PO BOX 7456 BEND OR 97708 10/25/2022 02/02/23 04/12/23 Operating 234790 5/11/22 $127.50 MALCONIAN DANIEL R 2420 TSCHACHE LN UNIT 101 BOZEMAN MT 59718 10/25/2022 02/02/23 04/12/23 Operating 234806 5/11/22 $225.94 SANTOS VANESSA 408 N BOZEMAN AVE BOZEMAN MT 59715 10/25/2022 Returned Operating 234813 5/11/22 $306.51 WESLEY HAROLD W 719 N GRAND AVE BOZEMAN MT 59715 10/25/2022 02/02/23 04/12/23 Operating 234916 5/11/22 $13.90 JOHNSON AUSTIN 1107 S BOZEMAN AVE BOZEMAN MT 59715 10/25/2022 02/02/23 04/12/23 Operating 235275 5/25/22 $15.03 PRETAT CHRISTOPHER 4532 ETHAN WAY BOZEMAN MT 59718 10/25/2022 02/02/23 04/12/23Operating2352945/25/22 $42.75 STEEL TREYLIN 58716 LUMPY LN E ENUMCLAW WA 98022 10/25/2022 02/02/23 04/12/23Operating2354946/8/22 $40.45 MARTENSEN LUKE 3025 LANGOHR AVE BOZEMAN MT 59715 10/25/2022 02/02/23 04/12/23Operating2355386/8/22 $13.17 ROLON CARLOS 120 S BLACK AVE APT 5 BOZEMAN MT 59715 10/25/2022 02/02/23 04/12/23Operating2358006/29/22 $220.07 AYLWARD WESTLEY & MICHAEL 1227 BARLEY AVE BOZEMAN MT 59718 10/25/2022 02/02/23 04/12/23Operating2358116/29/22 $220.70 BITZ ZANA E 90 HATFIELD CT BOZEMAN MT 59718 10/25/2022 02/02/23 04/12/23Operating2358206/29/22 $101.65 BUSH MARTA BROWN & GEORGE ALEX 226 S 18TH AVE UNIT C BOZEMAN MT 59715 10/25/2022 02/02/23 04/12/23Operating2358216/29/22 $126.02 CARNEGIE NICOLE 4883 LOYAL DR BOZEMAN MT 59718 10/25/2022 02/02/23 04/12/23Operating2358426/29/22 $405.84 DESTINATION HOMES LLC 1826 SANTA ANA CT BOZEMAN MT 59718 10/25/2022 ReturnedOperating2358636/29/22 $169.49 GROGAN IV EDWARD W 2708 COBBLESTONE PL UNIT C BOZEMAN MT 59718 10/25/2022 02/02/23 04/12/23Operating2358986/29/22 $264.62 KIRKWOOD CHRIS & LISA 300A BURNT MILL RD BRANCHBURG NJ 08876 10/25/2022 ReturnedOperating2359256/29/22 $116.24 CHAOFU LU & JINLING KANG 3673 PIPESTONE ST BOZEMAN MT 59718 10/25/2022 ReturnedOperating2359296/29/22 $137.47 MAHER MAXWELL 2932 WARBLER WAY UNIT A BOZEMAN MT 59718 10/25/2022 02/02/23 04/12/23Operating2359426/29/22 $380.27 MILLER MARK D 5 SANDERS AVE BOZEMAN MT 59718 10/25/2022 02/02/23 04/12/23Operating2359526/29/22 $120.60 OLSON-HENRY HEIDI 3028 W VILLARD ST UNIT 1C BOZEMAN MT 59718 10/25/2022 02/02/23 04/12/23Operating2359696/29/22 $155.79 QUERL JOSHUA A 11474 S KEYSTONE DR SOUTH JORDAN UT 84009 10/25/2022 02/02/23 04/12/23Operating2360346/29/22 $282.43 321 MAIN LLC 216 MCADOW AVE BOZEMAN MT 59715 10/25/2022Operating2360716/29/22 $30.07 BREKER JULIA 615 S 5TH AVE BOZEMAN MT 59715 10/25/2022 02/02/23 04/12/23Operating2360796/29/22 $35.88 BURR LUCY 2200 W DICKERSON ST APT 72 BOZEMAN MT 59718 10/25/2022 02/02/23 04/12/23Operating2362156/29/22 $46.69 MCCLELLAND PATRICIA 1735 W KAGY BLVD BOZEMAN MT 59715 10/25/2022 02/02/23 ReturnedOperating2362566/29/22 $49.52 OSNESS ALLISON 1140 ROSA WAY APT M BOZEMAN MT 59718 10/25/2022 02/02/23 04/12/23 Operating 236330 6/29/22 $150.00 VERGE THEATER PO BOX 1611 BOZEMAN MT 59771 10/25/2022 02/02/23 $11,801.44 Operating Account Stale Checks Total Check Type Check #Date Amount Business Name/Last Name First Name Address City State Zip 1st Sent 2nd Sent 3rd SentPayroll252218/5/21 $815.56 Duncan Bailey J 120 S Black Ave Apt X Bozeman MT 59715 1/20/2022 4/11/2022 10/25/2022Payroll252228/5/21 $7.38 Duncan Bailey J 120 S Black Ave Apt X Bozeman MT 59715 1/20/2022 4/11/2022 10/25/2022Payroll252549/8/21 $48.48 Conrad Katelynn M 1409 S Willson Ave Apt A Bozeman MT 59715 1/20/2022 4/11/2022 10/25/2022Payroll255236/7/22 $12.18 Johnson Nathan D 10/25/2022 02/02/23 04/12/23Payroll255256/7/22 $0.61 Stoddard Justin G 10/25/2022 02/02/23 04/12/23Payroll255326/10/22 $9.74 Miller Jacob 10/25/2022 02/02/23 04/12/23Payroll255336/10/22 $0.61 Doss Lisa 10/25/2022 02/02/23 04/12/23 $894.56 Payroll Stale Checks Total 10 Check Type Check #Date Amount Business Name/Last Name First Name Address City State Zip 1st Sent 2nd Sent 3rd Sent Court 16808 08/18/21 $589.00 Davis James 513 19th Ave Bozeman MT 59718 1/20/2022 4/11/2022 10/25/2022Court1682408/19/21 $160.00 Battle Talon Edward 1907 W Dickerson St Apt 3 Bozeman MT 59718 1/20/2022 4/11/2022 10/25/2022 ReturnedCourt1682908/24/21 $65.00 Noyes Solley Jr NicholasCourt1690809/27/21 $5.00 Fleming Donald 8034 NE 123rd St Kirkland WA 98034 1/20/2022 4/11/2022 10/25/2022Court1692709/27/21 $480.00 Carroll Grant Donald 307 N Yellowstone Ave Bozeman MT 59718 1/20/2022 4/11/2022 10/25/2022 ReturnedCourt1694610/20/21 $100.00 Curtis Justin Wade 2124 Gallatin Green Blvd #1 Bozeman MT 59718 1/20/2022 4/11/2022 10/25/2022 ReturnedCourt1695010/20/21 $495.00 Robert Jesse Cain 1631 W College St Unit 32 Bozeman MT 59715 1/20/2022 ReturnedCourt1695510/20/21 $10.00 Walker William Allen 212 Virginia Way Bozeman MT 59718 1/20/2022 4/11/2022 10/25/2022Court1697210/21/21 $600.00 Redgrave Phillip John 230 Waterlily Dr Apt 16 Bozeman MT 59718 1/20/2022 4/11/2022 10/25/2022Court1697510/21/21 $65.00 Gustavson Drew Victor 14795 James Rd Rogers MN 55374 1/20/2022 4/11/2022 10/25/2022Court1699010/21/21 $165.00 Dos Santos Laissa Cavallini 102 Grant Chamberllin Dr Apt H Bozeman MT 59715 1/20/2022 ReturnedCourt1699410/21/21 $95.00 Kilbride Ruth 121 N Tracy Ave Bozeman MT 59715 1/20/2022 ReturnedCourt1700310/21/21 $75.00 Herren Jack Delano 4580 Ballantyne Rd Belgrade MT 59714 1/20/2022 4/11/2022 10/25/2022Court1700510/21/21 $9.69 Lesmes Lucas George 1212 S 5th Ave Bozeman MT 59715 1/20/2022 4/11/2022 10/25/2022 ReturnedCourt1700710/21/21 $10.00 Marr Skyler Reign 5 E Baxter Ln Bozeman MT 59715 1/20/2022 ReturnedCourt1701210/22/21 $572.75 MacDonald Kylie Marie 2773 Renee Way Bozeman MT 59718 1/20/2022 4/11/2022 10/25/2022Court1701310/22/21 $65.00 Tilden Max Silver 430 12th Ave E Apt 303 Seattle WA 98102 1/20/2022 4/11/2022 10/25/2022Court1702110/22/21 $600.00 Debruler Garrett 1308 W Babcock St Unit A Bozeman MT 59715 1/20/2022 ReturnedCourt1702410/22/21 $5.00 Grohouzky Kirsten 215 20th Ave Apt A Bozeman MT 59718 1/20/2022 4/11/2022 02/02/23Court1703110/25/21 $65.00 Culver Pepi MaitlandCourt1704812/17/22 $100.00 Redgrave Phillip John 230 Waterlily Dr Apt 16 Bozeman MT 59718 4/11/2022 10/25/2022 02/02/23Court1705212/17/22 $10.00 Aguilera Fernando Ismael 148 Teakwood Bozeman MT 59715 4/11/2022 10/25/2022 02/02/23Court1706312/27/22 $4.00 Pine Hills 4 N Haynes Miles City MT 59301 4/11/2022 10/25/2022 02/02/23Court1707212/27/22 $65.00 Nirta Allison Christina 340 Roosevelt Dr Butte MT 59701 4/11/2022 10/25/2022 02/02/23Court1707712/27/22 $100.00 Hanle Andrew John 5497 Vermeer Ln Bozeman MT 59718 4/11/2022 10/25/2022 02/02/23Court1709112/27/22 $70.00 Hansen Canon Peres 1481 N 25th Ave Bozeman MT 59718 4/11/2022 10/25/2022 ReturnedCourt1711602/04/22 $100.00 Carver Amanda 3715 Galloway St #D211 Bozeman MT 59718 4/11/2022 10/25/2022 02/02/23Court1713602/04/22 $100.00 Almashhad Mashhad Hussain M 106 Grant Chamberlain Dr Bozeman MT 59718 4/11/2022 Returned 04/12/23Court1715303/12/22 $75.00 Montana Motor Supply 20 W MAIN ST BOZEMAN MT 59715 10/25/2022 Returned 04/12/23Court1715903/12/22 $195.00 Castlebar Apartments 1201 N 25TH AVE BOZEMAN MT 59718 10/25/2022 02/02/23 04/12/23Court1716303/12/22 $165.00 Eddlemon Christopher George 5 N YELLOWSTONE AVE BOZEMAN MT 59718 10/25/2022 02/02/23 ReturnedCourt1718303/12/22 $115.00 Carnefix Melissa 515 MICHAEL GROVE #58 BOZEMAN MT 59718 10/25/2022 02/02/23 04/12/23Court1721603/29/22 $95.00 Castlebar Apartments 1201 N 25TH AVE BOZEMAN MT 59718 10/25/2022 02/02/23 04/12/23Court1728104/06/22 $10.00 Salazar Gregory Finn 25 BILLMAN LN LIVINGSTON MT 59047 10/25/2022 02/02/23 04/12/23Court1732404/18/22 $100.00 Gonzalez Gloria 1603 W KOCH ST BOZEMAN MT 59715 10/25/2022 02/02/23 04/12/23Court1732904/18/22 $65.00 Lennox Jeremy Ryan 1098 N 15TH AVE D BOZEMAN MT 59715 10/25/2022 02/02/23 04/12/23Court1733204/18/22 $1,000.00 Kelley Ira Owen 2178 JACOBS ST BOZEMAN MT 59718 10/25/2022 02/02/23 04/12/23Court1733304/18/22 $320.00 Hart Keith Gerald 403 S 10TH AVE BOZEMAN MT 59715 10/25/2022 02/02/23 ReturnedCourt1733604/18/22 $450.00 Riese Robert 417 E PEACH ST BOZEMAN MT 59715 10/25/2022 Returned 04/12/23Court1734604/25/22 $250.00 Bredvik John Paul 2632 CATRON ST APT 327 BOZEMAN MT 59718 10/25/2022 02/02/23 04/12/23Court1735504/25/22 $85.00 Cohen Caleb Elisha 2938 WARBLER WAY UNIT 6 BOZEMAN MT 59715 10/25/2022 02/02/23 04/12/23Court1735804/29/22 $40.00 Kiely John David PO BOX 1056 RED LODGE MT 59068 10/25/2022 02/02/23 04/12/23Court1738106/09/22 $370.00 Haak Casey 31 OLD CLYDE PARK RD LIVINGSTON MT 59047 10/25/2022 02/02/23 ReturnedCourt1741606/10/22 $50.00 Dominguez Carlos 1565 SW 6TH ST APT 5 MIAMI FL 33135 10/25/2022 02/02/23 04/12/23Court1741806/10/22 $85.00 Driver Paige Noel 400 PHARR ROAD BOX 177 ATLANTA GA 30305 10/25/2022 02/02/23 04/12/23 $8,250.44 Municipal Court Stale Checks Total $20,946.44 GRAND TOTAL 11 Memorandum REPORT TO:City Commission FROM:Jon Henderson, Strategic Services Director SUBJECT:Authorize the City Manager to Sign a Letter of Agreement Accepting a Donation in the Amount of $3,000,000 from the Bozeman Public Library Foundation for the Bozeman Community Center Project MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Agreement - Agency/Non-profit RECOMMENDATION:Authorize the City Manager to Sign a Letter of Agreement Accepting a Donation in the Amount of $3,000,000 from the Bozeman Public Library Foundation for the Bozeman Community Center Project STRATEGIC PLAN:5.1 Civic and Cultural Infrastructure: Expand Bozeman's civic and cultural "infrastructure" as the city grows. BACKGROUND:On July 18, 2023 the City Commission will consider a Resolution adopting ballot language for the proposed Bozeman Community Center, following the March 21, 2023 approval of the concept design for a comprehensive recreation center that will serve as a shared facility for aquatics, recreation, and branch library services providing intergenerational recreation, youth programming, and a holistic definition of wellness to support both civic and cultural needs. The Bozeman Public Library Foundation has approved $3,000,000 in funding to support total project costs. It is intended that a portion of this Grant will be used to pay for the costs associated with solar panel installation. These funds will be used to lower the amount of the bond needed to construct the facility, contingent upon voter approval. Exhibit 1 further describes the terms associated with this Grant. UNRESOLVED ISSUES:None. ALTERNATIVES:As directed by the City Commission. FISCAL EFFECTS:The Bozeman Public Library Foundation represents to the City it has the authorization and capacity to transfer funds to the City prior to substantial completion of construction. The Foundation’s obligation to transfer funds to the City pursuant to this Agreement is contingent upon the following two conditions: first, that Foundation receive the full amount of the Grant from 12 the Kendeda Fund on or before December, 31, 2023, and second, voters approve the sale of general obligation bonds at the November 7, 2023 election. Attachments: Bozeman Community Center - Library Foudnation - Donation Agreement.pdf Exhibit 1.pdf Report compiled on: June 15, 2023 13 Page 1 of 3 Agreement between the Bozeman Public Library Foundation and the City of Bozeman for the Bozeman Community Center This Agreement is between the City of Bozeman (City), with a mailing address of PO Box 1230, Bozeman, Montana, 59771, and the Bozeman Public Library Foundation (Foundation) with a mailing address of 626 E. Main, Bozeman, MT 59715 related to the development of a new City west-side branch library and recreation and aquatics center (Bozeman Community Center). The City and Foundation are referred to collectively as the “Parties”. I. Purpose The purpose of this Agreement is to provide an understanding between the City and the Foundation regarding the receipt of donations in support of funding the Bozeman Community Center. The City’s current Capital Improvement Plan includes the construction of a new library branch, recreation, and aquatics center in Bozeman’s west side in fiscal year 2024. The Foundation and the City understand this Agreement provides the Parties’ agreement of how the Project will be supported by donations and that this Agreement will be supplemented and adjusted as needed; as such, except for the Foundation’s obligations regarding funding of the Project (the “Funding” as described below), the understanding between the parties as stated in this Agreement is subject to change. II. The Project The City of Bozeman’s Strategic Plan calls for ensuring library services that meet the demands of the City, in addition to prioritizing recreational opportunities and active health programs and facilities. Through previous studies, the Bozeman Public Library and the Parks & Recreation Department have identified a critical need to expand civic amenities and services to all City residents. The proposed Bozeman Community Center will serve as a shared facility for branch library services, in addition to aquatics and recreation services providing intergenerational recreation, youth programming, and a holistic definition of wellness to support both civic and cultural needs. III. Responsibilities The Foundation has received a Grant Award from the Kendeda Fund in the amount of $3,000,000 for the following purpose: “in support of the design and construction costs associated with the Library portion of the West Side Bozeman Community Center, Library and Pool Project. It is intended that a portion of this Grant will be used to pay for the costs associated with solar panel installation for the entire Project… (the ‘Purpose’).” A copy of the Grant terms of this Grant is 14 Page 2 of 3 attached to this Agreement as Exhibit 1. Subject to the conditions set forth below, The Foundation agrees to provide $3,000,000 in funding for the costs and expenses of the Project in accordance with the Purpose of the Grant (to include $500,000 dedicated to the installation of an onsite solar array), while the City will provide project management support for the Project and maintenance of the Bozeman Community Center after the Project is completed. City responsibilities include executing an Architectural Services Agreement with the current project Architect (ThinkOne / AMD) and preparing a Request for Proposals (or Request for Qualifications) to select a General Contractor to support final design and provide construction services and enter into a contract with the selected contractor. The parties also understand City voters must approve the sale of general obligation bonds at the November 7, 2023 election for the City to proceed with purchase, development, and construction of the project. IV. Financing The Foundation represents to the City it has the authorization and capacity to transfer funds to the City prior to substantial completion of construction. The Foundation’s obligation to transfer funds to the City pursuant to this Agreement is contingent upon the following two conditions: first, that Foundation receive the full amount of the Grant from the Kendeda Fund on or before December, 31, 2023, and second, voters approve the sale of general obligation bonds at the November 7, 2023 election. V. Representatives The Parties understand that decisions called for in the Agreement will be made by each Party’s representative. For purpose of this Agreement the Foundation shall be represented by its Director, Janay Johnson, and the City represented by its Director of Strategic Services, Jon Henderson. VI. No Partnership; Binding Agreement Required Nothing herein shall be deemed to constitute the creation of a formal business entity or partnership between the parties. The parties agree that except for the terms and conditions of the use of the Grant as set forth in this Agreement, there are no other agreements, promises, or representations, either oral or written, with respect to the payment of and the use of payment of funds in accordance with this Grant and the use of those funds in the Bozeman Community Center Project. 15 Page 3 of 3 #### END OF AGREEMENT EXCEPT FOR SIGNATURES #### City of Bozeman ____________________________ DATE: __________ Jeff Mihelich, City Manager Bozeman Public Library Foundation ____________________________ DATE: __________ Janay Johnson, Director 16 Exhibit 1 17 18 Memorandum REPORT TO:City Commission FROM:Jon Henderson, Strategic Services Director SUBJECT:Authorize the City Manager to Sign a Letter of Agreement Accepting a Donation in the Amount of $1,000,000 from the Bozeman Public Library Foundation for the Third Installment for Construction Services for the Bozeman Public Library Renovation Project MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Agreement - Agency/Non-profit RECOMMENDATION:Authorize the City Manager to Sign a Letter of Agreement Accepting a Donation in the Amount of $1,000,000 from the Bozeman Public Library Foundation for the Third Installment for Construction Services for 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:This Letter of Agreement confirms the understanding reached by all parties and sets forth the terms and conditions of a contribution by the Bozeman Public Library Foundation to the City of Bozeman for the third installment for construction services for the Bozeman Public Library Renovation project. Details of the project and the specific responsibilities of each party are outlined in the Agreement between the Bozeman Public Library, the Bozeman Public Library Foundation, and the City of Bozeman signed and executed on August 17, 2021. UNRESOLVED ISSUES:None. ALTERNATIVES:As directed by the City Commission. FISCAL EFFECTS:Current project estimates total $5,677,534.00 to include all phases of pre- construction and construction services. To date, the Library Foundation has provided funding to the City totaling $3,710,671.83, and the City has committed $437,000.00 in support of the project through the Library Depreciation Fund. This Agreement accepts $1,000,000.00 to be allocated in support of construction services. A subsequent Agreement and transfer of additional funds necessary to complete the project will be necessary before completion of the project. 19 Attachments: Bozeman Public Library Expansion Project - Third Installment for Construction Services - Letter of Agreement.pdf Report compiled on: June 15, 2023 20 Letter of Agreement June 27, 2023 RE: Installment for Construction Services for the Bozeman Public Library Expansion— Letter of Agreement This letter of agreement (the “Agreement”) confirms the understanding reached by the parties and sets forth the terms and conditions of a contribution by the Bozeman Public Library Foundation (“BPLF”) to the City of Bozeman (“City”) for the third installment for Construction Services for the Bozeman Public Library Expansion. 1. Parties to the Agreement and Notices: a. For BPLF Contact: Janay Johnson, Director Address: 626 East Main; Bozeman MT 59715 b. For City of Bozeman Contact: Cyndy Andrus, Mayor Address: 121 N. Rouse Ave; Bozeman MT 59715 2. Background: Details of the project and the specific responsibilities of each party are outlined in the Agreement between the Bozeman Public Library, the Bozeman Public Library Foundation, and the City of Bozeman signed and executed on August 17, 2021. Current project estimates total $5,677,534.00 to include all phases of pre-construction and construction services. To date, the Library Foundation has provided funding to the City totaling $3,710,671.83, and the City has committed $437,000.00 in support of the project through the Library Depreciation Fund. This Agreement accepts $1,000,000.00 to be allocated in support of construction services. A subsequent Agreement and transfer of additional funds necessary to complete the project will be necessary before completion of the project. 3. BPLF Responsibilities: a. Perform a wire transfer in the amount of $1,000,000.00 payable to the City no later than July 15, 2023. 4. City of Bozeman Responsibilities: a. Utilize the funds exclusively for Construction Services for the Library Expansion Project. 21 b. Return any unused funds to BPLF at the completion of Construction Services. c. Highlight BPLF’s funding and involvement in the project in press releases or other promotional activities. 5. Acceptance: By signing below, the undersigned represent that they are authorized to act on behalf of their respective parties and to bind their respective parties to the terms of this Agreement, and that the undersigned parties have read, understand and agree to the above. Bozeman Public Library Foundation: Signed: ____________________________ Janay Johnson, Director Date: ______________________________ City of Bozeman: Signed: _____________________________ Jeff Mihelich, City Manager Date: _______________________________ 22 Memorandum REPORT TO:City Commission FROM:John Van Delinder, Street Superintendent Nicholas Ross, Director of Transportation and Engineering SUBJECT:Authorize the City Manager to sign Notice of Award and Contract Agreement with Specialty Applicators, LLC for Application of an Asphalt Surface Treatment MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Award and Authorize City Manager to sign a Contract Agreement for an Application of an Asphalt Surface Treatment for a total of $139,830.19 to Specialty Applicators, LLC. STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:Bozeman deploys three phases of pavement management across the life cycle of asphalt streets; chip seals, mill and overlay, and full reconstruction. Chip seals are the initial stage of preventative maintenance that enables the life of an asphalt pavement to be extended before milling and overlaying the top course and eventually reconstructing the full pavement section. However, chip seals tend to generate user complaints when used in urban areas and their cost has escalated significantly over the last three years. In 2019, Streets Division invited Specialty Applicators, LLC to perform a test section of alternate asphalt treatment in hopes of improving quality for our residents. The test section has performed adequately and we are prepared to expand the trial at scale. Streets selected for treatment are locations of need, as identified by pavement condition index, in addition to our regularly scheduled chip seal work. They include: S. 8th, E. Story, S. Wallace E. Olive and S. Church and W. Oak. Performance of this alternate treatment may inform a future change in chip seal practice. There remains no other local company able or willing to perform similar services, thus the need for sole source approval. Approval has been supported by Director of Finance and approved by City Manager. UNRESOLVED ISSUES:None 23 ALTERNATIVES:As suggested by the City Commission. FISCAL EFFECTS:This Item is in the FY23 Street Gas Tax Fund Budget (110-4120-433.5040) for $139,830.19. Attachments: Contract Agreement - Specialty Applicators LLC Exhibit A Notice of Award Sole Source Request - Specialty Applicators LLC - Asphalt Surface Treatment Report compiled on: June 1, 2023 24 Construction Agreement for an Asphalt Surface Treatment FY2022-2023 Page 1 of 17 CONSTRUCTION AGREEMENT This Construction Agreement is made and entered into this __27th__ day of ____June_____, 2023_ (“Effective Date”), by and between the CITY OF BOZEMAN, MONTANA, a self-governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City,” and, Specialty Applicators LLC, 1812 W Sunset Blvd #1-538, St. George, UT 84770, hereinafter referred to as “Contractor.” The City and Contractor may be referred to individually as “Party” and collectively as “Parties.” In consideration of the covenants, agreements, representations, and warranties contained herein, the parties agree as follows: 1. Work to be Performed: a. Application of asphalt surface treatment only offered by Asphalt Systems. We tried this treatment in 2019 with excellent results and less mess than chip sealing. This will include GSB-88®, GSB-M and GSB-RS. Streets chosen by our Engineering Department using our pavement condition index are S. 8th, E. Story, S. Wallace E. Olive and S. Church and W. Oak. All of the above is hereby referred to as (the “Construction Project”) and Contractor’s duties are set forth in the Scope of Services attached hereto as Exhibit A whereby the unit price for each item includes both labor and materials. Exhibit A is by this reference made a part hereof. b. Prior to the commencement of any work on the Construction Project, Contractor’s representatives and City’s representatives shall hold a meeting to establish a working understanding among the parties as to the scope of the Construction Project and duties of the Contractor. At this meeting, Contractor and City shall resolve any outstanding issues related to the plans, designs, drawings, and specifications. If the parties are unable to resolve these issues and the City fails, refuses, or is unable to approve the same, no work shall commence on the Construction Project until such issues are resolved and the City approves the related plans, designs, drawings, and specifications. c. Except as provided elsewhere in this Agreement, Contractor shall furnish all the labor, materials, equipment, tools, and services necessary to perform and complete the Construction Project. d. During work on the Construction Project, and as part of the final completion of the Construction Project, Contractor shall clean up the Project site, including the removal and satisfactory disposal of all waste, garbage, excess materials, and equipment, and the 25 Construction Agreement for an Asphalt Surface Treatment FY2022-2023 Page 2 of 17 performance of any other work necessary to restore the site to at least as good order and condition as at the commencement of the Construction Project. 2. City-Supplied Materials: The City may supply materials from time to time in furtherance of the Construction Project. Such materials will be noted as an addendum to this Agreement. 3. Time of Performance: Contractor shall begin the Construction Project after receiving a Notice to Proceed from City and shall complete the Construction Project no later than 9/30/2023. Time is of the essence of completion of all work and each phase of the Construction Project. 4. Liquidated Damages: If the Construction Project is not completed within the time provided by this Agreement, the City may deduct for each day the Construction Project remains uncompleted the sum of Five Hundred Dollars ($500.00) from the compensation hereinafter specified and retain that sum as payment for liquidated damages sustained by reason of the Contractor’s failure to complete the Construction Project on time. 5. Compensation: a. City shall pay to Contractor, and Contractor shall accept as full payment for the performance of this Agreement and the Construction Project, the amount of one hundred thirty-nine thousand, eight hundred thirty and 19/100 Dollars ($139,830.19). b. If work not included within the original Construction Documents is requested by City, such additional work and the related compensation shall be agreed to in writing by both parties prior to commencement of the additional work (“Change Order”). c. City shall retain five percent (5%) of the total amount of compensation to be paid to the Contractor to ensure compliance with the terms and conditions of this Agreement and the timely completion of the Construction Project and any and all “punch list” items (“Retainage Amount”). The Retainage Amount shall be paid to Contractor thirty (30) days after the City’s final acceptance of the portion of work for which a separate price is stated in the specifications for the Construction Project. e. Upon acceptance of final payment and for other good and valuable consideration, Contractor shall and hereby does release and forever discharge City, its officers, agents, and employees of and from any and all claims, demands, actions, causes of action, obligations, and liabilities of every kind and character whatsoever, in law and in equity, whether now known or in the future discovered, arising from or related to this Agreement or the Construction Project that Contractor may have or assert against City, its officers, agents, and employees. 6. Inspection and Testing: 26 Construction Agreement for an Asphalt Surface Treatment FY2022-2023 Page 3 of 17 a. City has the right to inspect and test any and all work performed by Contractor on the Construction Project. Contractor shall allow City and its agents access to the Construction Project at all times and shall provide every reasonable facility for the purpose of such inspection and testing, including temporarily discontinuing portions of the work or uncovering or taking down portions of the finished work. Any inspection and testing performed by the City and its agents is for the sole benefit of the City and shall not relieve the Contractor of its duty, responsibility, and obligation to ensure that the work strictly complies with the Agreement terms and conditions and all applicable laws and building and safety codes. City’s inspection and testing shall not be deemed or considered acceptance by the City of any portion of the Construction Project. City’s inspection and testing shall not serve to nullify, amend, or waive any warranties provided by the Contractor under this Agreement. b. Contractor shall, without charge, replace any material or correct any work found by the City or its agents to be defective or otherwise not in compliance with the terms and conditions of this Agreement. In the event Contractor fails to replace or correct any defective work or materials after reasonable written notice by the City to do so, the City may take such corrective action, either with its own materials and employees or by retaining any third party to do so, and deduct the cost and expense of such corrective action from the Contractor’s compensation. 7. Partial Utilization of Construction Project: City shall have the right to use or occupy any portion of the Construction Project that City and Contractor mutually agree is substantially completed and constitutes a separately functioning and usable part of the Construction Project for its intended purpose without significant interference with Contractor’s performance of the remaining portions of the Construction Project. In the event City takes possession of any portion of the Construction Project, such possession shall not be deemed an acceptance of the Construction Project, in whole or in part. City’s use of any portion of the Construction Project shall not be grounds for extensions of any construction deadlines or a change in the Contractor’s compensation. Contractor’s warranties shall run from the completion of the total Construction Project and not from the date the City may take possession of selected portions of the Construction Project. 8. Related Work at the Site: Nothing in this Agreement shall prevent or preclude City, through its own employees or by contract with any third party, from performing other work related to the Construction Project at the construction site; provided such related work is not otherwise addressed in this Agreement and provided such related work does not otherwise interfere with Contractor’s performance of this Agreement or the completion of the Construction Project. Contractor shall afford any City employee, agent or representative, or any third party under contract with the City to perform the related work, proper and safe access to the construction site, a reasonable opportunity for the introduction and storage of materials and equipment, the opportunity to perform the related work, and shall properly coordinate the Contractor’s work on the Construction Project with the related work. 9. Contractor’s Warranties: Contractor represents and warrants as follows: 27 Construction Agreement for an Asphalt Surface Treatment FY2022-2023 Page 4 of 17 a. Unless otherwise specified by the terms of this Agreement, all materials and equipment used by Contractor on the Construction Project shall be new and where not otherwise specified, of the most suitable grade for their intended uses. b. All workmanship and materials shall be of a kind and nature acceptable to the City. c. All equipment, materials, and labor provided to, on, or for the Construction Project must be free of defects and nonconformities in design, materials, and workmanship for a minimum period beginning with the commencement of the work on the Construction Project and ending one (1) year from the final completion and acceptance by the City of the Construction Project, regardless of whether such equipment, materials, or labor were supplied directly by Contractor or indirectly by Contractor’s subcontractors or suppliers. Other express warranties on materials that provide for a warranty period longer than one year apply for the period of that express warranty and are not reduced by this provision. Upon receipt of City’s written notice of a defective or nonconforming condition during the warranty period, Contractor shall take all actions, including redesign and replacement, to correct the defective or nonconforming condition within a time frame acceptable to the City and at no additional cost to the City. Contractor shall also, at its sole cost, perform any tests required by City to verify that such defective or nonconforming condition has been corrected. Contractor warrants the corrective action taken against defective and nonconforming conditions for a period of an additional one (1) year from the date of City’s acceptance of the corrective action. d. Contractor and its sureties are liable for the satisfaction and full performance of all warranties. e. Contractor shall give its personal attention to the faithful prosecution of the completion of the Construction Project and Contractor, or its duly authorized representative assigned to serve as the Construction Project Manager, shall be personally present at the site of the Construction Project during working hours for the term of this Agreement until the completion of the Construction Project. f. Contractor shall have a complete, accurate, and up-to-date set of construction plans, drawings, and specifications on site at all times. g. Contractor has examined all available records and made field examinations of the site of the Construction Project. Contractor has knowledge of the field conditions to be encountered during the Construction Project. Contractor has knowledge of the types and character of equipment necessary for the work, the types of materials needed and the sources of such materials, and the condition of the local labor market. h. Contractor is responsible for the safety of the work and shall maintain all lights, guards, signs, temporary passages, or other protections necessary for that purpose at all times. 28 Construction Agreement for an Asphalt Surface Treatment FY2022-2023 Page 5 of 17 i. All work must be performed at Contractor’s risk, and Contractor shall promptly repair or replace all damage and loss at its sole cost and expense regardless of the reason or cause of the damage or loss; provided, however, should the damage or loss be caused by an intentional or negligent act of the City, the risk of such loss shall be placed on the City. j. Contractor is responsible for any loss or damage to materials, tools, or other articles used or held for use in the completion of performance of the Construction Project. k. Contractor’s performance must be without damage or disruption to any other work or property of the City or of others and without interference with the operation of existing machinery or equipment. l. Title to all work, materials, and equipment covered by any payment of Contractor’s compensation by City, whether directly incorporated into the Construction Project or not, passes to City at the time of payment, free and clear of all liens and encumbrances. 10. Delays and Extensions of Time: If Contractor’s performance of this Agreement is prevented or delayed by any unforeseen cause beyond the control of the Contractor, including acts or omissions of the City, Contractor shall, within ten (10) days of the commencement of any such delay, give the City written notice thereof. Further, Contractor shall, within ten (10) days of the termination of such delay, give the City written notice of the total actual duration of the delay. If the City is provided with these required notices and if the City determines that the cause of the delay was not foreseeable, was beyond the control of the Contractor, and was not a result of the fault or negligence of the Contractor, then the City will determine the total duration of the delay and extend the time for performance of the Agreement accordingly. Unless the delay is caused by the intentional interference of the City with the Contractor’s performance, Contractor shall make no claim for damages or any other claim other than for an extension of time as herein provided by reason of any delays. 11. Suspension: a. The City may, by written notice to the Contractor and at its convenience for any reason, suspend the performance of all or any portion of the work to be performed on the Construction Project (“Notice of Suspension”). The Notice of Suspension shall set forth the time of suspension, if then known to the City. During the period of suspension, Contractor shall use its best efforts to minimize costs associated with the suspension. b. Upon Contractor’s receipt of any Notice of Suspension, unless the notice requires otherwise, Contractor shall: (1) immediately discontinue work on the date and to the extent specified in the Notice of Suspension; (2) place no further orders or subcontracts for materials, services, or equipment; (3) promptly make every reasonable effort to obtain suspension upon terms satisfactory to City of all orders, subcontracts, and rental agreements to the extent that they relate to the performance of the work suspended; and (4) 29 Construction Agreement for an Asphalt Surface Treatment FY2022-2023 Page 6 of 17 continue to protect and maintain the Project, including those portions on which work has been suspended. c. As compensation for the suspended work, Contractor will be reimbursed for the following costs, reasonably incurred, without duplication of any item, and to the extent that such costs directly resulted from the suspension: (1) a standby charge paid during the period of suspension which will be sufficient to compensate Contractor for keeping, to the extent required in the Notice of Suspension, Contractor’s organization and equipment committed to the Project in standby status; (2) all reasonably incurred costs for the demobilization of Contractor’s and subcontractor’s crews and equipment; (3) an equitable amount to reimburse Contractor for the cost to protect and maintain the Project during the period of suspension; and (4) an equitable adjustment in the cost of performing the remaining portion of the work post-suspension if, as a direct result of the suspension, the cost to Contractor of subsequently performing the remaining work on the Construction Project has increased or decreased. d. Upon receipt of written notice by the City to resume the suspended work (“Notice to Resume Work”), Contractor shall immediately resume performance of the suspended work as to the extent required in the Notice to Resume Work. Any claim by Contractor for time or compensation described in Section 11(c) shall be made within fifteen (15) days after receipt of the Notice to Resume Work and Contractor shall submit a revised Construction Schedule for the City’s review and approval. Contractor’s failure to timely make such a claim shall result in a waiver of the claim. e. No compensation described in Section 11(c) shall be paid and no extension of time to complete the Construction Project shall be granted if the suspension results from Contractor’s non-compliance with or breach of the terms or requirements of this Agreement. 12. Termination for Contractor’s Fault: a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, the City may, by written notice, terminate this Agreement and the Contractor’s right to proceed with all or any part of the Construction Project (“Termination Notice Due to Contractor’s Fault”). The City may then take over the Construction Project and complete it, either with its own resources or by re-letting the contract to any other third party, and may immediately take possession of and use such materials, appliances, tools, and equipment as may be on the site and which may be necessary for the completion of the Construction Project. b. In the event of a termination pursuant to this Section 12, Contractor shall be entitled to payment only for those services Contractor actually rendered. In the case of a lump sum or unit price contract, Contractor shall not be entitled to any further payment until the Construction Project has been completed. Upon completion of the Construction Project, if the unpaid balance of the Contractor’s compensation exceeds the cost to the City 30 Construction Agreement for an Asphalt Surface Treatment FY2022-2023 Page 7 of 17 of completing the work, including all costs paid to any subcontractors or third parties retained by the City to complete the Construction Project and all administrative costs resulting from the termination (“City’s Cost for Completion”), such excess shall be paid to the Contractor. If the City’s Cost for Completion exceeds the unpaid balance of the Contractor’s compensation, then Contractor and its sureties shall be liable for and shall pay the difference, plus interest at the rate applicable to court judgments, to the City. c. Any termination provided for by this Section 12 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. d. In the event of termination under this Section 12, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 13. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease work on the Construction Project, the City may terminate this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease work on the Construction Project, discontinue placing orders for materials, supplies, and equipment for the Construction Project, and make every reasonable effort to cancel all existing orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as may be necessary to preserve, protect, and maintain work already completed, in progress, or in transit to the construction site. c. In the event of a termination pursuant to this Section 13, Contractor is entitled to payment only for those services Contractor actually rendered and materials actually purchased or which Contractor has made obligations to purchase on or before the receipt of the Notice of Termination for City’s Convenience, and reasonably incurred costs for demobilization of Contractor’s and any subcontractor’s crews. It is agreed that any materials that City is obligated to purchase from Contractor will remain the City’s sole property. d. The compensation described in Section 13(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 31 Construction Agreement for an Asphalt Surface Treatment FY2022-2023 Page 8 of 17 14. Limitation on Contractor’s Damages; Time for Asserting Claim: a. In the event of a claim for damages by Contractor under this Agreement, Contractor’s damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. b. In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within ten (10) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 15. Representatives and Notices: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be Nicholas Ross, Director of Transportation and Engineering 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 and may receive approvals or authorization from such persons. b. Contractor’s Representative: The Contractor’s Representative for the purpose of this Agreement shall be Mark LaBelle, Project Manager or such other individual as Contractor shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed to Contractor’s Representative; provided, however, that in exigent circumstances when Contractor’s Representative is not available, City may direct its direction or communication to other designated Contractor personnel or agents. c. Notices: All notices required by this Agreement shall be in writing and shall be provided to the Representatives named in this Section. Notices shall be deemed given when delivered, if delivered by courier to Party’s address shown above during normal business hours of the recipient; or when sent, if sent by email or fax (with a successful transmission report) to the email address or fax number provided by the Party’s Representative; or on the fifth business day following mailing, if mailed by ordinary mail to the address shown above, postage prepaid. 32 Construction Agreement for an Asphalt Surface Treatment FY2022-2023 Page 9 of 17 16. Locating Underground Facilities: Contractor shall be responsible for obtaining and determining the location of any underground facilities, including but not limited to, the location of any pipelines or utility supply, delivery, or service lines in accordance with the provisions of §69-4-501, et seq., Montana Code Annotated (MCA). Contractor shall make every effort to avoid damage to underground facilities and shall be solely responsible for any damage that may occur. If City personnel assume responsibility for locating any underground facilities, this fact shall be noted in writing prior to commencement of such location work. 17. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, pay all fees and charges in connection therewith, and perform all surveys and locations necessary for the timely completion of the Construction Project. 18. Ownership of Documents; Indemnification: All plans, designs, drawings, specifications, documents, sample results and data, in whatever medium or format, originated or prepared by or for Contractor in contemplation of, or in the course of, or as a result of this Agreement or work on the Construction Project, shall be promptly furnished to the City (“City Documents and Information”). All City Documents and Information shall be the exclusive property of the City and shall be deemed to be works-for-hire. Contractor hereby assigns all right, title, and interest in and to the City Documents and Information, including but not limited to, all copyright and patent rights in and to the City Documents and Information. Neither party grants to the other any express or implied licenses under any patents, copyrights, trademarks, or other intellectual property rights, except to the extent necessary to complete its obligations to the other under this Agreement. 19. Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non- discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 20. Nondiscrimination and Equal Pay: The Contractor agrees that all hiring by Contractor of persons performing this Agreement shall be on the basis of merit and qualifications. The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The 33 Construction Agreement for an Asphalt Surface Treatment FY2022-2023 Page 10 of 17 Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. Contractor represents it is, and for the term of this Agreement will be, in compliance with the requirements of the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act). Contractor must report to the City any violations of the Montana Equal Pay Act that Contractor has been found guilty of within 60 days of such finding for violations occurring during the term of this Agreement. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 21. Intoxicants; DOT Drug and Alcohol Regulations: Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, upon the site of the Construction Project. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing its employees and agents in safe work practices. 22. Labor Relations: a. In the event that, during the term of this Agreement and throughout the course of Contractor’s performance of the Construction Project, any labor problems or disputes of any type arise or materialize which in turn cause any work on the Construction Project to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take to resume work on the Construction Project shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit the work on the Construction Project to resume and be completed within the time frames set forth in the Construction Schedule at no additional cost to City. b. The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. 34 Construction Agreement for an Asphalt Surface Treatment FY2022-2023 Page 11 of 17 c. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, Montana Code Annotated (MCA), and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. d. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. e. Contractor shall post a legible statement of all wages and fringe benefits to be paid to the Contractor’s employees and the frequency of such payments (i.e., hourly wage employees shall be paid weekly). Such posting shall be made in a prominent and accessible location at the Contractor’s normal place of business and shall be made no later than the first day of services provided under this Agreement. Such posting shall be removed only upon expiration or termination of this Agreement. f. In performing the services under this Agreement, Contractor shall give preference to the employment of bona fide residents of Montana, as required by §18-2-403, MCA, as such term is defined by §18-2-401(1), MCA. When making assignments of work, Contractor shall use workers both skilled in their trade and specialized in their field of work for all work to which they are assigned. g. Pursuant to §§18-2-403 and 18-2-422, MCA, Contractor shall pay wages, fringe benefits, and expenses, including travel allowances as set forth in the current Montana Prevailing Wage Rate for Construction Services in effect and applicable to Gallatin County, Montana, which schedule is incorporated herein. Contractor shall pay all hourly wage employees on a weekly basis. Violation of the requirements set forth in the above State of Montana schedule of prevailing wage rates may subject the Contractor to the penalties set forth in §18-2-407, MCA. Contractor shall maintain payroll records during the term of this Agreement and for a period of three (3) years following termination of this Agreement. h. The Contractor shall ensure that any person, firm or entity performing any portion of the services under this Agreement for which the contractor, subcontractor or employer is responsible, is paid the applicable standard prevailing rate of wages. i. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue at no additional cost to City. 35 Construction Agreement for an Asphalt Surface Treatment FY2022-2023 Page 12 of 17 j. Contractor shall indemnify, defend, and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes and for any claims regarding underpaid prevailing wages. 23. Subcontractors: a. Contractor may employ subcontractors for any work on the Construction Project. Contractor shall provide City with a list of all subcontractors employed. b. Contractor remains fully responsible for the acts and omissions of any subcontractor, just as Contractor is for its own acts and omissions, and Contractor shall remain fully responsible and liable for the timely completion of the Construction Project. c. Contractor is solely liable for any and all payments to subcontractors. Contractor shall hold all payments received from the City in trust for the benefit of subcontractors, and all such payments shall be used to satisfy obligations of the Construction Project before being used for any other purpose. Contractor shall make any payments due to any subcontractor within seven (7) days of Contractor’s receipt of payment, including a proportional part of the retainage Contractor has received from the City. In the event of a dispute regarding any subcontractor’s invoice, Contractor shall promptly pay the undisputed amount to the subcontractor and notify the subcontractor in writing of the amount in dispute and the reasons for the dispute. Any withholding of payment must comply with the requirements of §28-2-2103, MCA. In the event Contractor is unwilling or unable to make timely and proper payment to any subcontractor, City may elect to withhold any payment otherwise due to Contractor and upon seven (7) days’ written notice to Contractor, may pay subcontractor by direct or joint payment. 24. Indebtedness and Liens: Before City may make any final payment to Contractor, Contractor shall furnish City with satisfactory proof that there are no outstanding debts or liens in connection with the Construction Project. If the Contractor allows any indebtedness to accrue to subcontractors or others during the progress of the work, and fails to pay or discharge the same within five (5) days after demand, then City may either withhold any money due to Contractor until such indebtedness is paid or apply the same towards the discharge of the indebtedness. If any lien or claim is filed or made by any subcontractor, material supplier, or any other person, the Contractor shall immediately notify the City and shall cause the same to be discharged of record within thirty (30) days after its filing. 25. Hazard Communication: Contractor shall comply with all hazard communication requirements dictated by the Environmental Protection Agency, the Montana Department of Agriculture, OSHA, Hazard Communications Standard, 29 CFR 1910.1200, and applicable City ordinances. Contractor shall supply a chemical list, the associated material safety data sheets (MSDS), and other pertinent health exposure data for chemicals that the Contractor’s, subcontractor’s or the City’s employees may be exposed to while working on City property during 36 Construction Agreement for an Asphalt Surface Treatment FY2022-2023 Page 13 of 17 the course of the Construction Project. One copy of this documentation must be delivered to City to the attention of the City’s Representative. This documentation must be delivered before work involving these chemicals may commence. 26. Accounts and Records: During the term of this Agreement and for two (2) years following the City’s final acceptance of the Construction Project, Contractor shall maintain accounts and records related to the Construction Project. Upon reasonable notice, City shall have the right to inspect all such accounts and records, including but not limited to, Contractor’s records, books, correspondence, instructions, drawings, specifications, field and site notes, receipts, invoices, bills, contracts, or other documents relating to the Construction Project. 27. Indemnification; Insurance; Bonds: a. Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of and expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; or (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents. b. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the indemnitee(s) which would otherwise exist as to such indemnitee(s). c. Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. d. Should the City be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor’s applicable insurance policies required below the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. e. In the event of an action filed against the City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. 37 Construction Agreement for an Asphalt Surface Treatment FY2022-2023 Page 14 of 17 f. Contractor also waives any and all claims and recourse against the City, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for [City’s] own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. g. These obligations shall survive termination of this Agreement and the services performed hereunder. h. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in subsection (a) of this Section. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City. Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as shown below: • Workers’ Compensation – not less than statutory limits; • Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; • Commercial General Liability - $2,000,000 per occurrence; $4,000,000 annual aggregate; • Products and Completed Operations – $1,000,000; • Automobile Liability - $1,000,000 property damage/bodily injury; $2,000,000 annual aggregate (all owned, hired, non-owned vehicles); • Builder’s Risk/Property Insurance at least as broad as that provided by the ISO special causes of loss form (CP10 30) naming at a minimum the City in an amount equal to greater of Contractor’s compensation or full replacement value of the work (covering at a minimum all work, buildings, materials and equipment, whether on site or in transit, loss due to fire, lightening, theft, vandalism, malicious mischief, earthquake, collapse, debris removal, demolition occasioned by enforcement of laws, water damage, flood if site within a flood plain, repair or replacement costs, testing and start-up costs) on an all risk coverage basis. This insurance must include waivers of subrogation between the City and Contractor to the extent that damage to the Construction Project or City Hall is covered by other insurance; • Owner’s and Contractor’s Protective Liability: one policy designating the City (including its agents, representatives, employees, and officers) as the insured and another independent policy designated the City’s Representative (including its consultants, consultants, agents and employees) as the insured on the declarations with both policies covering: (i) operations performed by the Contractor under this Agreement for the City; and (ii) the City’s and City’s Representatives acts or 38 Construction Agreement for an Asphalt Surface Treatment FY2022-2023 Page 15 of 17 omissions, including negligent acts, in connection with its general supervision of the work of the Contractor’s and its subcontractors - $1,000,000 per occurrence; $2,000,000 aggregate; • Contractual Liability Insurance (covering the Contractor’s indemnity obligations described in this Agreement) - $1,000,000 per occurrence $2,000,000 aggregate The amounts of insurance provided shall be exclusive of defense costs. The City of Bozeman shall be endorsed as an additional or named insured on a primary non-contributory basis on both the Commercial General and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non-renewal. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. i. Pursuant to the City’s authority provided for in 18-2-201(4), the Contractor shall not be required to provide bonds as required by 18-2-201(1) under this Agreement. 28. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. Contractor understands that all contractors or subcontractors working on a publicly funded project are required to pay or have withheld from earnings a license fee of one percent (1%) of the gross contract price if the gross contract price is Five Thousand Dollars ($5,000) or more. This license fee is paid to the Montana Department of Revenue. 29. 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 shall be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 30. Survival: Contractor’s indemnification and warranty obligations shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 39 Construction Agreement for an Asphalt Surface Treatment FY2022-2023 Page 16 of 17 31. 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. 32. Waiver: A waiver by City of any default or breach by Contractor of any covenants, terms, or conditions of this Agreement does not limit City’s right to enforce such covenants, terms, or conditions or to pursue City’s rights in the event of any subsequent default or breach. 33. 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. 34. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 35. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 36. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 37. Amendments: This Agreement may not be modified, amended, or changed in any respect except by a written document signed by all parties. 38. 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. 38. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 39. Assignment: Contractor may not assign this Agreement in whole or in part without the prior written consent of the City. No assignment will relieve Contractor of its responsibility for the performance of the Agreement and the completion of the Construction Project. Contractor may not assign to any third party other than Contractor’s subcontractors on the Construction Project, the right to receive monies due from City without the prior written consent of City. 40. Authority: Each party represents that it has full power and authority to enter into and perform this Agreement and the person signing this Agreement on behalf of each party has been properly authorized and empowered to sign this Agreement. 41. Independent Contractor: The parties agree and acknowledge that in the performance of this Agreement and the completion of the Construction Project, Contractor shall 40 Construction Agreement for an Asphalt Surface Treatment FY2022-2023 Page 17 of 17 render services as an independent contractor and not as the agent, representative, subcontractor, or employee of the City. The parties further agree that all individuals and companies retained by Contractor at all times will be considered the agents, employees, or independent contractors of Contractor and at no time will they be the employees, agents, or representatives of the City. 42. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained therein or made a part thereof by reference, are not binding upon the parties. There are no understandings between the parties other than as set forth in this Agreement. All communications, either verbal or written, made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 43. 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 **** IN WITNESS WHEREOF, Contractor and City have caused this Agreement to be executed, effective on the date written above, and intend to be legally bound thereby. CITY OF BOZEMAN, MONTANA CONTRACTOR By: _______________________________ By: Jeff Mihelich, City Manager Print Name: Title: APPROVED AS TO FORM: By: _______________________________ Greg Sullivan, City Attorney 41 SPECIALTY APPLICATORS, LLC 1812 W. Sunset Blvd #1-538 St. George, UT 84770 www.specialtyapplicators.com Phone: (435) 705-1706 Customer: City of Bozeman ESTIMATE #23-7065 Address: Bozeman, MT Revised 4/19/2023 Phone: Requested By: Mark LaBelle Project Number: Project Name: 2023 GSB-M CIP Project Estimate By:Bodin Breinholt Project Location: Bozeman, MT 435-705-1706 DBW: N/A bodin@specialtyapplicators.com Item #Item Description Quantity UofM Unit Price Total 1 Mobilization 1.00 Each $9,870.00 $9,870.00 2 Oak Street GSB-M Treatment* (see notes below)7,166.00 SY $2.67 $19,133.22 3 Oak Street Additional: Traffic Control, Preservation of Thermoplastic Markings (Turn & Merge Arrows, Crosswalk, Stop Bars, Bike Symbol), Tabbing of existing pavement marking locations.1.00 LS $6,837.51 $6,837.51 4 GSB-RS (Rapid Seal) Treatment: 8th Ave, Story, Wallace, Olive & Church Ave.37,422.00 SY $2.67 $99,916.74 *Oak Street Treatment Includes: Pre-treatment of raveled locations (hand applied), followed by full application of GSB-M. Bonding, Payment & Performance available for additional 3% of Estimate Invoice Subtotal $135,757.47 Total $135,757.47 Customer Name (print) Date of Acceptance: Signature ***The prices quoted in this document are valid for 30 Days from the above date and are based upon Specialty Applicators LLC's costs of materials. In the event that such costs increase substantially, the prices quoted will increase proportionally upon notice to the customer. ****Pricing Includes: Traffic Control, Tabbing of Paint Marking Locations, Masking & Preservation of Manhole/Monuments & Utilities. Any invoice submitted by Specialty Applicators shall be due 30 days after the date of such invoice. Any invoice not paid within the 30 day period will accrue interest at a rate of 1.5% per month; further in event of collection activities become necessary, Specialty Applicators shall be entitled to recover all its costs incurred in the collection of the amounts due and owed, including but not limited to attorney's fees and court costs 42 EJCDC C-510 Notice of Award Prepared by the Engineers Joint Contract Documents Committee and endorsed by the Construction Specifications Institute. Page 1 of 2 Notice of Award Date: _______________ Project: Application of Asphalt Surface Treatment only offered by Specialty Applicators, LLC Owner: City of Bozeman Owner's Contract No.: Contract: Application of asphalt surface treatment only offered by Specialty Applicators, LLC. We tried this treatment in 2019 with excellent results and less mess than chip sealing. This will include GSB-88®, GSB-M and GSB-RS. Streets chosen by our Engineering Department using our pavement condition index are S. 8th, E. Story, S. Wallace E. Olive and S. Church and W. Oak. Engineer's Project No.: 23-7065 Bidder: Specialty Applicators, LLC Bidder's Address: 2775 West 1500 South, Salt Lake, UT 84104 You are notified that your Bid dated April 19, 2023 for the above Contract has been considered. You are the Successful Bidder and are awarded a Contract for Base Bid. The Contract Price of your Contract is one hundred thirty-nine thousand, eight hundred thirty and 19/100 Dollars ($139,830.19). Four (4) copies of the proposed Contract Documents (except Drawings) accompany this Notice of Award. You must comply with the following conditions precedent within [15] days of the date you receive this Notice of Award. 1. Deliver to the Owner Four (4) fully executed counterparts of the Contract Documents. 2. Deliver with the executed Contract Documents the Contract security [Bonds] as specified in the Contract Documents (Article 6), General Conditions (Paragraph 5.1), and Supplementary Conditions. 3. Other conditions precedent: Deliver with the executed Contract Documents the required insurance certificates. Failure to comply with these conditions within the time specified will entitle Owner to consider you in default, annul this Notice of Award, and declare your Bid security forfeited. 43 EJCDC C-510 Notice of Award Prepared by the Engineers Joint Contract Documents Committee and endorsed by the Construction Specifications Institute. Page 2 of 2 Within ten days after you comply with the above conditions, Owner will return to you one fully executed counterpart of the Contract Documents. City of Bozeman Owner By: Authorized Signature Title Copy to Engineer 44 From:Jeff Mihelich To:Nicholas Ross Cc:Melissa Hodnett; John Van Delinder Subject:RE: Sole Source Request - Specialty Applicators LLC - Asphalt Surface Treatment Date:Wednesday, June 7, 2023 3:43:47 PM Approved. Thanks. Jeff Mihelich | City Manager ICMA-CM City of Bozeman 406-582-2306 jmihelich@bozeman.net From: Nicholas Ross <nross@BOZEMAN.NET> Sent: Wednesday, June 7, 2023 2:41 PM To: Jeff Mihelich <jmihelich@BOZEMAN.NET> Cc: Melissa Hodnett <mhodnett@BOZEMAN.NET>; John Van Delinder <JVandelinder@BOZEMAN.NET> Subject: Sole Source Request - Specialty Applicators LLC - Asphalt Surface Treatment Hello Jeff, This email serves as a request for Sole Source approval as allowed under 18-4-306, MCA , as the statute is implemented by the State of Montana Department of Administration, Administrative Rule of Montana 2.5.604 on Sole Source Procurement, and the city’s companion sole source policy Purchasing Admin Order 2021-11 . The rules establish guidelines that sole source procurement is permissible under the following circumstances: (2) Sole source procurement is permissible under the following circumstances: (a) the compatibility of current services or equipment, accessories, or replacement parts is the paramount consideration; (b) there is no existent equivalent product; or (c) only one source is acceptable or suitable for the supply or service item. For the project under consideration, Specialty Applicators LLC is the sole provider of the asphalt surface treatment we intend to use for a portion of our annual pavement maintenance work this season. Four years ago the above-referenced company was approved by the Finance Director at the time to provide us with an alternate surface treatment to chip sealing. That product has now proven to be as effective, if not more so, than chip seals. The product carries the added benefit of less disruption to traffic, fewer loose chips, and is now cheaper per square yard than chip seals. However, there are no contractors in Montana offering this product and service, thus requiring sole source approval. Please note that for this season, we will maintain our typical chip seal program in addition to delivering the additional work referenced here. We do not require any additional budget capacity for this work. Director Hodnett supported sole source method as appropriate for this use via email on 05.22.2023. 45 Please respond with your decision on approval and we can move ahead with contracting. Thank you, -Nick Nicholas Ross, P.E. Director | Transportation and Engineering City of Bozeman C: 406-595-3437 O: 406-582-2315 nross@bozeman.net 46 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 with Tri State Truck and Equipment, Inc. for One (1) New 2023 or Newer Volvo D13 Tractor Truck MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Award Bid and Authorize City Manager to Sign Purchase Agreement for a 2023 or Newer Volvo D13 Tractor Truck for a Total of $173,092.54. 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 Tractor Truck for Trailer(STR119). We received bids from three vendors and the lowest most responsible bid was Tri State Truck and Equipment in Billings MT. The budgeted amount was one hundred sixty thousand dollars ($160,000) from STR119. The extra $13,092.54 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 Bid Form Notice of Award Report compiled on: June 15, 2023 47 Purchase Agreement Page 1 of 5 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 Tri-State Truck & Equipment, Inc, with a mailing address of 5250 Midland Road, Billings, MT 59101, 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 2023 or Newer Volvo D13 Tractor Truck. TOTAL PRICE: $173,092.54 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 Seventy-Three Thousand Ninety- Two 54/100 Dollars ($173,092.54) 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 48 Purchase Agreement Page 2 of 5 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 49 Purchase Agreement Page 3 of 5 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 Property for a minimum of the purchase price against all damages during the delivery period per the Specifications. In addition to and independent from the above, during the delivery period Seller shall defend, indemnify, and hold the City, its officers, employees, and agents 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. This provision shall survive delivery and acceptance by the city of the Property. 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, 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. 50 Purchase Agreement Page 4 of 5 13 Permits: Seller shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 14. Laws and Regulations: Seller shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 15. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of the City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 16. 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. 17. 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. 18. 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. 51 Purchase Agreement Page 5 of 5 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. 19. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 20. 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 **** 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 52 53 54 55 56 57 58 59 60 61 NOTICE OF AWARD Dated: June 15, 2023 TO: Tri-State Truck & Equipment, Inc ADDRESS: 5250 Midland Road, Billings, MT 59101 CONTRACT FOR: One (1) New Current Model Year 2023 or Newer Volvo D13 Tractor Truck. You are notified that your Bid opened on May 11, 2023 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 2023 or Newer Two Hundred and Thirty-four (234) Inch Wheelbase Day Cab Tractor Truck. The Contract Price of your Contract is: One hundred Seventy-three thousand, Ninety two 54/100 Dollars ($173,092.54) 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: _______________________________ 62 Memorandum REPORT TO:City Commission FROM:Jill Miller, WTP Superintendent John Alston, Utilities Director SUBJECT:Authorize the City Manager to Sign the Aftermarket Comprehensive Services Plan with Pall Water for Annual Inspection of the City of Bozeman Pall Water Aria Filtration System MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign the Aftermarket Comprehensive Services Plan with Pall Water for annual inspection of the City of Bozeman Pall Water Aria Filtration System. STRATEGIC PLAN:6.1 Clean Water Supplies: Ensure adequate supplies of clean water for today and tomorrow. BACKGROUND:In March 2014 the City of Bozeman began treating water with the 22 MGD membrane filtration plant with a membrane system provided by Pall Water. The WTP has had an annual inspection and refresher training for 3 days each winter/spring. The annual inspection by a Pall Water Field Services Engineer (FSE) determines the system functional status, offers preventative maintenance recommendations, and ensures the plant is operating within the membrane warranty parameters. This time is also used to provide new operators training and complete the required exam with a Pall Water FSE. The more experienced operators have the opportunity to discuss system changes with a Pall Water FSE and receive any refresher training needed. In the past, the same FSE that performed the initial commissioning of the membrane filtration system have performed the annual inspection and refresher training which is anticipated to continue. Having this contract in place gives the WTP 24/7 phone support from Pall Water at no additional cost. UNRESOLVED ISSUES:None. ALTERNATIVES:Forgo annual inspection and pay for phone support at a cost per initial incident and pay hourly for each follow up call per incident. FISCAL EFFECTS:The inspection is budgeted for in the FY24 WTP Operating budget. The cost of the annual inspection is $15,640. 63 Attachments: City of Bozeman Annual Aftermarket Services Plan 2023 final.pdf Report compiled on: June 13, 2023 64 Aftermarket Comprehensive Services Plan Pall Water Proposal No.: OPP1683482 Date: January 6, 2023 Confidential - Company Proprietary Confidential - Company Proprietary Aftermarket Comprehensive Services Plan for City of Bozeman Pall Water Aria Filtration System Equipment Type Large Water 6 Racks PALL SAP#: 566060 WBS No.: 01.000163 Start Up Date: Module Warranty Expires: Equipment Warranty Expired: Company Contact: Jill Miller E-Mail: jmiller@bozeman.netPhone: Site Location: 7022 Sourdough Canyon Rd. Bozeman, MT 59715 Table of contents Page 1 Cover Page; Ordering Instructions and table of contents 2 Proposal Summary, Description of Services and pricing detail 3 Customer Authorization for Service Form; Site & Billing addresses 4 Definition of Contract Terms 6 Essential Service Event Details 8 Terms and Conditions Ordering Instructions Complete the “Customer Authorization for Service” form on page 3 and remit to: Pall Water Customer Service Email: Pall_Technology_csc@pall.com OR P.O. Box 5630, 839 State Route 13 Cortland, New York 13045-5630 Fax: 607-758-4526 Pall Water Systems  839 NYS Route 13  Cortland, NY 13045  CSC: #866-475-0115 Page 1 of 17 65 Aftermarket Comprehensive Services Plan Pall Water Proposal No.: OPP1683482 Date: January 6, 2023 Confidential - Company Proprietary Confidential - Company Proprietary PROPOSAL SUMMARY Pall Water provides a post-warranty support service plan to ensure continued aftermarket operation of your System. Over time, machinery ages and may malfunction. Components and technology also get upgraded - or become obsolete - as new innovations develop and get implemented. Our Technical Team is also commissioned to 24/7 on-call availability. The frequency of the proposed service is an Annual visits. If you require service frequency of Semi-Annual or Quarterly, the contract can be revised to accommodate your service needs. If additional service support is required beyond the contract frequency and scope, it can also be provided at the Pall standard service rates above. Advance authorization is required for any time that exceeds the scope of service and the amount of the issued PO. Additional T&E will apply. DESCRIPTION OF SERVICE Annual Service Plan Fee per 12-Mo. visit SYSTEM INSPECTION SERVICE* (MM #38588) Overall System Review •Review system and process operation •Make system adjustments and improvements as time allows •Identify future needs for operation staff to maintain plantperformance •All Travel and Expenses included in pricing $8,840.00 REFRESHER TRAINING* (MM #16115) (performed in conjunction with the above-scheduled System Inspection Service visit during the contracted Services Plan visit) Hands on refresher training $6,800.00 ANNUAL RATES $15,640.00 **Note: Without an Aftermarket agreement, non-contracted customers will be subject to a Fee-per-Incident for phone support service (credit card required at time of call). Pall Water Systems  839 NYS Route 13  Cortland, NY 13045  CSC: #866-475-0115 Page 2 of 17 66 Aftermarket Comprehensive Services Plan Pall Water Proposal No.: OPP1683482 Date: January 6, 2023 Confidential - Company Proprietary Confidential - Company Proprietary Customer Authorization for Service Form Effective Date and Duration: This Agreement will be effective as of the date signed below, and will remain in effect: •for 12 consecutive months (or as indicated in the annual or multi-year contract) •or until 30 days after receipt of written notice of termination by either party. Customer Billing Address: Customer Shipping Address (Spare Parts): Customer Comments: Pall Water Systems  839 NYS Route 13  Cortland, NY 13045  CSC: #866-475-0115 Page 3 of 17 I am an authorized representative of the Customer, and I accept the Terms and Conditions of this Service Agreement on behalf of the Customer. I authorize Pall Water Systems to perform the work defined in this agreement, and accept the costs and charges defined in this agreement. Company: Print Name Title/Position Signature Date Purchase Order No. or Reference for Billing: Requested Date(s) to Schedule Service Visit(s): (unless deemed emergency service, please allow a 4-week window to accommodate scheduling by Pall Water Systems.) Remit this form & PO# to our Pall Water Customer Service email: pall_technology_csc@pall.com WTPJMM06132023 January Jeff Mihelich City Manager City of Bozeman WTP 7024 Sourdough Canyon Road Bozeman, MT 59715 City of Bozeman WTP 7024 Sourdough Canyon Road Bozeman, MT 59715 City of Bozeman 67 Aftermarket Comprehensive Services Plan Pall Water Proposal No.: OPP1683482 Date: January 6, 2023 Confidential - Company Proprietary Confidential - Company Proprietary Definition of Plan Terms Pall - Pall Water or its assigned Representative Customer - Company or Organization purchasing services as defined by this contract The Customer’s maintenance staff will be responsible for supplying tools, ladders, lifts, or other equipment required to execute the maintenance function. Site personnel will be solely responsible for ensuring that all maintenance procedures are performed in accordance with all applicable safety regulations. FSE - The role of the Pall Water Field Service Engineer (FSE) is to complement the sites existing technical / maintenance staff by providing expertise specific to Pall Water supplied technology. The Pall Water FSE will direct site maintenance staff in the proper execution of maintenance procedures. Description of the Plan Services 1.System Inspection Service 2.Operator Training 1.System Inspection Service Upon arrival, the Pall Water FSE will meet with designated plant personnel to review the planned scope of work for the Inspection, and obtain confirmation prior to proceeding. Should the Customers expectations be outside of the scope of work, the inspection will not proceed until Pall Water and the Customer agree to the Scope of Service. If necessary, Scope changes can be quoted and accepted onsite, prior to performingthe planned service. The FSE will perform a comprehensive inspection of the Pall Water Aria Filtration System, which includesall hardware and operating parameters to determine System functional status, and make preventive maintenance recommendations. Should an issue be identified that can be resolved by the FSE during thisvisit, a price for the immediate service can be provided, and the work completed with your approval bymeans of a verbal change order to Pall Water Systems Customer Service. Advance authorization is required for any time that exceeds the Scope of Service and the amount of the issued PO. Upon completion of the service, the FSE will meet with designated Plant personnel to review the findings of the Inspection, and discuss any problems, corrective actions or recommendations. 2.Operator Training To support proper operation of your system, Pall recommends that you take advantage of a training session with actual hands-on time to achieve a significant level of competence and confidence with the equipment. Sessions should be repeated annually as refresher training, or when you have new system operators. Classroom instruction will ONLY be provided if it is specifically indicated as part of the proposal summary. The content would include information on the Principles of Filtration, and Cross-flow Technology, as well as general procedures will be presented in a combination of PowerPoint slides and hands-on activities. A training binder would be provided for each participant. Pall Water Systems  839 NYS Route 13  Cortland, NY 13045  CSC: #866-475-0115 Page 4 of 17 68 Aftermarket Comprehensive Services Plan Pall Water Proposal No.: OPP1683482 Date: January 6, 2023 Confidential - Company Proprietary Confidential - Company Proprietary Hands-on CIP training / refresher CIP refresher training is ONLY provided when Pall performs the CIP service, and if it is specifically indicated as part of the proposal summary. The CIP service visit should be scheduled preferably when reduced system flux suggests the modules could benefit from cleaning. As Pall Systems require periodic cleaning; the cleaning frequency will vary. CIP neglect will cause long-term flux deterioration, which can be difficult to restore. If not performed on a regular basis, CIP Protocols may become unfamiliar, ominous and critical. Essential Service Event Details Materials: This proposal covers the scope of work described above. All additional materials purchased by Pall Water for use on your System that have been verbally authorized by you to complete this work will be invoiced as part of this contract. Scheduling: When possible, Pall Water will make every effort to accommodate a Customer’s schedule for services, once they have been defined and communicated. Field Service requires a minimum 4- week advance notification. Upon receipt of your purchase order, we can confirm the schedule, and allocate the appropriate Pall Water Service resources. Validity: This proposal is valid for 90 days. Terms of Sale: Pall Water Standard Terms and Conditions of Sale of Services apply. Terms of Service: Regular minimum service charge is for a 10-hour day. Maximum workday is 12 hours,including travel time. Service Order acceptance and payment terms: Pall Water requires all accounts outstanding beyond 30 days to be paid in full prior to order acceptance. Your account status will be verified at the time of order placement, and you will be notified if you have a balance due. To avoid order processing, goods shipment, or service scheduling delays, please insure your account is up to date in advance of placing your order. Charges per the proposal will be invoiced automatically, and become payable within 30 business days of receipt. Changes: If additional service is required beyond the Plan frequency and scope, Pall Water will work with you to make those changes. Advance authorization is required for any activity that exceeds the scope of service and the amount of the issued PO. Additional T&E may apply. Pall Water shall not implement any changes in the Scope of Services described in its proposal unless Customer and Pall Water agree to the details of the change, and any resulting price, schedule or other contractual modifications. This includes any changes necessitated by a change in applicable law. Pall Water Systems  839 NYS Route 13  Cortland, NY 13045  CSC: #866-475-0115 Page 5 of 17 69 Aftermarket Comprehensive Services Plan Pall Water Proposal No.: OPP1683482 Date: January 6, 2023 Pall Water Systems  839 NYS Route 13  Cortland, NY 13045  CSC: #866-475-0115 Page 6 of 17 Confidential - Company Proprietary Confidential - Company Proprietary A Purchase Order or acceptable letter of authorization, including Travel & Expense per diem reimbursements, and a signed copy of the attached Customer Authorization of Service Form is required prior to Pall Water providing the services defined in this proposal. Maintaining an Aftermarket Service Plan, or an Aftermarket Phone Support Service, provides the best possible return on your Pall Water System investment. The Plan also provides pre-emptive measures that help to identify potential anomalies or malfunctions which may create untimely disruptions, costly down-times, or otherwise, could contribute to disaster response issues encountered by Municipal Plants and a community’s water system. Implementing the Service Plan ensures priority response and avoids the Fee- per-Incident charges. Sincerely, Alexander Braman Regional Sales Manager Phone: 720-202-6536 E-mail: alexander_braman@pall.com 70 Aftermarket Comprehensive Services Plan Pall Water Proposal No.: OPP1683482 Date: January 6, 2023 Confidential - Company Proprietary Confidential - Company Proprietary Terms and Conditions of Sale Non- Systems – The Americas Pall Water 1. Applicability: Entire Agreement: 1.1. These terms and conditions of sale (these "Terms") are the only terms which govern the sale of the goods identified on Buyer's purchase order (the "Goods") by Seller to Buyer. By placing a purchase order, Buyer makes an offer to purchase the Goods pursuant to these Terms, including (a) a list of the Goods to be purchased; (b) the quantity of each of the Goods ordered; (c) the requested delivery date; (d) the unit Price for each of the Goods to be purchased; (e) the billing address; and (f) the delivery location (the “Basic Purchase Order Terms”), and on no other terms. 1.2. The accompanying quotation, proposal, confirmation of sale, invoice, order acknowledgment or similar document delivered by Seller to Buyer (the "Sales Confirmation"), the Basic Purchase Order Terms and these Terms (collectively, this "Agreement") comprise the entire agreement between the parties, and supersede all prior or contemporaneous understandings, agreements, negotiations, representations and warranties, and communications, both written and oral. These Terms prevail over any of Buyer's general terms and conditions of purchase regardless whether or when Buyer has submitted its purchase order or such terms. Fulfillment of Buyer's order does not constitute acceptance of any of Buyer's terms and conditions and does not serve to modify or amend these Terms. 1.3. Notwithstanding anything herein to the contrary, if a written contract signed by both parties is in existence covering the sale of the Goods covered hereby, the terms and conditions of said contract shall prevail to the extent they are inconsistent with these Terms. 2. Non-delivery: 2.1 The quantity of any installment of Goods as recorded by Seller on dispatch from Seller's Shipment Point (as defined in Section 4) is conclusive evidence of the quantity received by Buyer on delivery unless Buyer can provide conclusive evidence proving the contrary. 2.2 Seller shall not be liable for any non-delivery of Goods (even if caused by Seller's negligence) unless Buyer gives written notice to Seller of the non-delivery within 10 days of the date when the Goods would in the ordinary course of events have been received. 2.3 Any liability of Seller for non-delivery of the Goods shall be limited to replacing the Goods within a reasonable time or adjusting the invoice respecting such Goods to reflect the actual quantity delivered. 3. Delivery: 3.1 The Goods will be delivered within a reasonable time after the receipt of Buyer's purchase order, subject to availability of finished Goods. The delivery and/or shipping schedule is the best estimate possible based on conditions existing at the time of Seller's Sales Confirmation or Seller's quotation and receipt of all specifications, as applicable, and in the case of non-standard items, any such date Pall Water Systems  839 NYS Route 13  Cortland, NY 13045  CSC: #866-475-0115 Page 7 of 17 71 Aftermarket Comprehensive Services Plan Pall Water Proposal No.: OPP1683482 Date: January 6, 2023 Pall Water Systems  839 NYS Route 13  Cortland, NY 13045  CSC: #866-475-0115 Page 8 of 17 Confidential - Company Proprietary Confidential - Company Proprietary is subject to Seller's receipt of complete information necessary for design and manufacture. Seller shall not be liable for any delays, loss or damage in transit or for any other direct, indirect, or consequential damages due to delays, including without limitation, loss of use. 3.2 Seller may, in its sole discretion, without liability or penalty, deliver partial shipments of Goods to Buyer and ship the Goods as they become available, in advance of the quoted delivery date. If the Goods are delivered in installments, then insofar as each shipment is subject to the same Agreement, the Agreement will be treated as a single contract and not severable. 3.3 Seller shall make the Goods available to Buyer at Seller's factory or designated shipment point (each, “Seller’s Shipment Point") using Seller's standard methods for packaging and shipping such Goods. Buyer shall take delivery of the Goods within 5 days of Seller's written notice that the Goods have been delivered to the Seller’s Shipment Point. 3.4 If for any reason Buyer fails to accept delivery of any of the Goods on the date fixed pursuant to Seller's notice that the Goods have been delivered at the Seller’s Shipment Point, or if Seller is unable to deliver the Goods at the Seller’s Shipment Point on such date because Buyer has not provided appropriate instructions, documents, licenses or authorizations: (i) title and risk of loss to the Goods shall pass to Buyer; (ii) the Goods shall be deemed to have been delivered; and (iii) Seller, at its option, may store the Goods until Buyer picks them up, whereupon Buyer shall be liable for all related costs and expenses (including, without limitation, storage and insurance). 4.Shipping Terms: Unless otherwise mutually agreed to in writing by the parties, delivery shall beFCA (Seller’s Shipment Point) INCOTERMS 2010. At Buyer’s request, Seller will, at Buyer's risk andexpense, arrange for the delivery of the Goods to Buyer's site/facility and Buyer will pay, orreimburse Seller, for all freight charges, taxes, duties, entry fees, brokers’ fees, special,miscellaneous and all other ancillary charges and special packaging charges incurred. 5.Title and Risk of Loss: Title and risk of loss passes to Buyer upon the earlier of (i) delivery of theGoods at the Seller’s Shipment Point or (ii) deemed delivery pursuant to clause 3.4 above. As collateral security for the payment of the purchase price of the Goods, Buyer hereby grants to Sellera lien on and security interest in and to all of the right, title and interest of Buyer in, to and under theGoods, wherever located, and whether now existing or hereafter arising or acquired from time totime, and in all accessions thereto and replacements or modifications thereof, as well as allproceeds (including insurance proceeds) of the foregoing. 6.Inspection and Rejection of Nonconforming Goods: 6.1 Buyer shall inspect the Goods within 10 days of receipt (the "Inspection Period"). Buyer will be deemed to have accepted the Goods unless it notifies Seller in writing of any nonconforming Goods during the Inspection Period and furnishes such written evidence or other documentation as required by Seller. Such notification shall identify each and every alleged nonconformity of the Goods and describe that portion of the shipment being rejected. Seller shall then respond with instructions as to the disposition of the Goods. 6.2 If Buyer timely notifies Seller of any nonconforming Goods, Seller shall, in its sole discretion, (i) 72 Aftermarket Comprehensive Services Plan Pall Water Proposal No.: OPP1683482 Date: January 6, 2023 Pall Water Systems  839 NYS Route 13  Cortland, NY 13045  CSC: #866-475-0115 Page 9 of 17 Confidential - Company Proprietary Confidential - Company Proprietary replace such nonconforming Goods with conforming Goods, or (ii) credit or refund the Price for such nonconforming Goods, together with any reasonable shipping and handling expenses incurred by Buyer in connection therewith. Buyer shall ship the nonconforming Goods to Seller's Shipment Point. If Seller exercises its option to replace nonconforming Goods, Seller shall, after receiving Buyer's shipment of nonconforming Goods, ship to Buyer, at Seller's expense, the replaced Goods to the Seller’s Shipment Point. 6.3 Buyer acknowledges and agrees that the remedies set forth in Section 6.2 are Buyer's exclusive remedies for the delivery of Nonconforming Goods. Except as provided under Section 6.2, all sales of Goods to Buyer are made on a one-way basis and Buyer has no right to return Goods purchased under this Agreement to Seller. 6.4 If Seller delivers to Buyer a quantity of Goods of up to 5% more or less than the quantity set forth in the Sales Confirmation, Buyer shall not be entitled to object to or reject the Goods or any portion of them by reason of the surplus or shortfall and shall pay for such Goods the price set forth in the Sales Confirmation adjusted pro rata. 7. Services: Seller will provide such services as are expressly described in the Sales Confirmation(collectively, the “Services”), during normal business hours, unless otherwise specified in the SalesConfirmation. Services requested or required by Buyer outside of these hours or in addition to thequoted or agreed upon services will be charged at Seller’s then current schedule of rates, includingovertime charges, if applicable, and will be in addition to the charges outlined in the SalesConfirmation. 8.Purchase Price: The price for the Goods and/or Services thereof shall be Seller’s quoted price.Seller may also at any time assess a fuel or energy surcharge (in addition to the price of the Goods)(the “Purchase Price”). The Purchase Price is based on the project schedule defined in thisAgreement, Sales Confirmation or applicable contract documents. Notwithstanding anything to thecontrary set out herein, in the event of any delay to Seller’s delivery schedule caused by Buyer or itsrepresentatives (other than for Force Majeure or delays caused by Seller), including withoutlimitation, a suspension of work or the project, a postponement of the delivery date or failure totimely issue of a notice of commencement or similar document, then the Purchase Price shallincrease by 1% for every month or partial month of such delay and this Agreement shall beconstrued as if the increased Purchase Price were originally inserted herein, and Buyer shall bebilled by Seller on the basis of such increased Purchase Price. 9. Taxes: The Purchase Price is exclusive of any applicable federal, state or local sales, use, exciseor other similar taxes, including, without limitation, value added tax, goods and services tax or other similar tax imposed by any governmental authority on any amounts payable by Buyer. All such taxeswill be for Buyer's account and will be paid by Buyer to Seller upon submission of Seller's invoices.Buyer agrees to make tax accruals and payments to the tax authorities as appropriate. If Buyer isexempt from any applicable sales tax or equivalent, but fails to notify Seller of such exemption orfails to furnish its Sales Tax Exemption Number to Seller in a timely manner and Seller is required topay such tax, the amount of any such payment made by Seller will be reimbursed by Buyer to Sellerupon submission of Seller's invoices. 10.Payment: 73 Aftermarket Comprehensive Services Plan Pall Water Proposal No.: OPP1683482 Date: January 6, 2023 Confidential - Company Proprietary Confidential - Company Proprietary 10.1 Buyer shall pay all invoiced amounts due to Seller within 30 days from the date of Seller's invoice. Buyer shall make all payments hereunder by EFT, wire transfer, or check and in US dollars. Payment for foreign billing shall be in accordance with Seller's written instructions. 10.2 Buyer shall pay interest on all late payments at the lesser of the rate of 1.5% per month or the highest rate permissible under applicable law, calculated daily and compounded monthly. Buyer shall reimburse Seller for all costs incurred in collecting any late payments, including, without limitation, reasonable attorneys' fees. In addition to all other remedies available under these Terms or at law (which Seller does not waive by the exercise of any rights hereunder), Seller shall be entitled to suspend performance of any Purchase Order, or suspend the delivery of any Goods, if Buyer fails to pay any amounts when due hereunder and such failure continues for 5 days following written notice thereof. Additionally Seller my require payment in cash, security or other adequate assurance satisfactory to Seller when, in Seller's opinion, the financial condition of Buyer or other grounds for insecurity warrant such action. 10.3 All sales are subject to the approval of Seller's credit department. Seller and Buyer both recognize that there is a risk of banking fraud when individuals impersonating a business demand payment under new banking or mailing instructions. To avoid this risk, Buyer must verbally confirm any new bank or mailing instructions by calling Seller and speaking with Seller’s accounts receivable contact before mailing or transferring any monies using the new instructions. Both parties agree that they will not institute any mailing or bank transfer instruction changes or require immediate payment under the new instructions but will instead provide a ten (10) day grace period to verify any payment instruction changes before any new or outstanding payments are due using the new instructions. 10.4 Buyer may not withhold or setoff any amounts that may be claimed by Buyer against any amounts that are due and payable to Seller by reason of any set-off of any claim or dispute with Seller, whether relating to Seller's breach, bankruptcy or otherwise. 10.5 Notwithstanding anything herein to the contrary, this Agreement may be modified or terminated/cancelled, and scheduled shipments hereunder may be deferred or changed, only: (i) upon Buyer’s prior written notice to Seller, and Seller’s written acknowledgment of the notice; and (ii) upon terms satisfactory to Seller. Buyer shall pay to Seller all fees, charges and/or costs that Seller assesses because of any modification, termination/cancellation, deferment and/or change, including without limitation all termination/cancellation fees, restocking fees, storage fees, insurance costs, freight costs, nonrecurring engineering or production costs and recovery of cost plus reasonable profit required in the event of Buyer’s termination without cause. 11. Limited Warranty: 11.1 Limited Warranty for Goods. Seller warrants to Buyer that for a period of twelve months from the date of delivery of the Goods, including deemed delivery pursuant to clause 3.4 above (the "Warranty Period"), that the Goods manufactured by Seller, when properly installed and maintained, and operated at ratings, specifications and design conditions specified by Seller, will materially conform to Seller’s specifications for such Goods set forth in Seller’s proposal, or, in the absence of such a proposal, such specifications for such Goods appearing in Seller’s product catalogues and literature or in the Sales Confirmation, at the time of the order and will be free from material defects in material and workmanship (this “Limited Warranty”). Buyer shall notify Seller Pall Water Systems  839 NYS Route 13  Cortland, NY 13045  CSC: #866-475-0115 Page 10 of 17 74 Aftermarket Comprehensive Services Plan Pall Water Proposal No.: OPP1683482 Date: January 6, 2023 Confidential - Company Proprietary Confidential - Company Proprietary promptly in writing of any claims within the Warranty Period and provide Seller with an opportunity to inspect and test the Goods or service claimed to fail to meet this Limited Warranty. Buyer shall provide Seller with a copy of the original invoice for the product or service, and prepay all freight charges to return any Goods to Seller's factory, or other facility designated by Seller. All claims must be accompanied by full particulars, including system operating conditions, if applicable. If the defects are of such type and nature as to be covered by this Limited Warranty, Seller shall, at its option and in its sole discretion, either: (a) accept return of the defective Goods and furnish replacement Goods; (b) furnish replacement parts for the defective Goods; (c) repair the defective Goods; or (d) accept return of the defective Goods and return payments made, or issue credits for, such defective Goods and shipment returns. If Seller determines that any warranty claim is not, in fact, covered by this Limited Warranty, Buyer shall pay Seller its then customary charges for any additionally required service or products. 11.2 Limited Warranty for Services. Seller further warrants that all Services performed hereunder, if any, will be performed in a workmanlike manner in accordance with applicable law and industry standards by qualified personnel (this “Limited Warranty for Services”); this Limited Warranty for Services shall survive for 30 days following Seller’s completion of the Services (the “Service Warranty Period”). In the event of a warranty claim under this Limited Warranty for Services, Buyer shall inform Seller promptly in writing of the details of the claim within the Service Warranty Period. Seller’s liability under any service warranty is limited (in Seller’s sole discretion) to repeating the service that during the Service Warranty Period does not meet this Limited Warranty for Services or issuing credit for the nonconforming portions of the service. If Seller determines that any warranty claim is not, in fact, covered by the foregoing Limited Warranty for Services, Buyer shall pay Seller its then customary charges for all services performed by Seller. 11.3 No Warranty as to Third Party Products. Products manufactured by a third party ("Third Party Product") may constitute, contain, be contained in, incorporated into, attached to or packaged together with, the Goods. Third Party Products are not covered by the warranty in Section 11.1. For the avoidance of doubt, SELLER MAKES NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO ANY THIRD PARTY PRODUCT, INCLUDING ANY (a) WARRANTY OF MERCHANTABILITY; (b) WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE; (c) WARRANTY OF TITLE; OR (d) WARRANTY AGAINST INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS OF A THIRD PARTY; WHETHER EXPRESS OR IMPLIED BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE OR OTHERWISE. With respect to any Third Party Product, the warranty, if any, is provided solely through the manufacturer of such Third Party Product, the terms of which vary from manufacturer to manufacturer and Seller assumes no responsibility on their behalf. For Third Party Products, specific warranty terms may be obtained from the manufacturer’s warranty statement. 11.4 Other Limits. EXCEPT FOR THE WARRANTIES SET FORTH IN SECTIONS 11.1 and 11.2, SELLER MAKES NO WARRANTY WHATSOEVER WITH RESPECT TO THE GOODS AND SERVICES, INCLUDING WITHOUT LIMITATION ANY (a) WARRANTY OF MERCHANTABILITY; (b) WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE; (c) WARRANTY OF TITLE; OR (d) WARRANTY AGAINST INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS OF A THIRD PARTY; WHETHER EXPRESS OR IMPLIED BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE OR OTHERWISE. Seller does not warrant against, and in no event shall Seller be liable for, damages or defects arising out of improper or abnormal use, misuse, abuse, improper installation (other than by Seller), application, operation, maintenance or repair, alteration, accident, or for negligence in use, storage, transportation or handling or other Pall Water Systems  839 NYS Route 13  Cortland, NY 13045  CSC: #866-475-0115 Page 11 of 17 75 Aftermarket Comprehensive Services Plan Pall Water Proposal No.: OPP1683482 Date: January 6, 2023 Confidential - Company Proprietary Confidential - Company Proprietary negligence of Buyer. In no event shall Seller be liable for any Goods repaired or altered by someone other than Seller other than pursuant to written authorization by Seller. All product warranties and performance guarantees shall only be enforceable if (a) all equipment is properly installed, inspected regularly and is in good working order, (b) all operations are consistent with Seller recommendations, (c) operating conditions at the job site have not materially changed and remain within anticipated specifications, and (d) no reasonably unforeseeable circumstances exist or arise. 11.5 Exclusive Obligation. THIS WARRANTY IS EXCLUSIVE. THE LIMITED WARRANTY AND THE LIMITED WARRANTY FOR SERVICES ARE THE SOLE AND EXCLUSIVE OBLIGATIONS OF SELLER WITH RESPECT TO THE DEFECTIVE GOODS AND SERVICES. SELLER SHALL NOT HAVE ANY OTHER OBLIGATION WITH RESPECT TO THE GOODS, SERVICES, OR ANY PART THEREOF, WHETHER BASED ON CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THE REMEDIES SET FORTH IN SECTIONS 11.1 AND 11.2 SHALL BE THE BUYER'S SOLE AND EXCLUSIVE REMEDY AND SELLER'S ENTIRE LIABILITY FOR ANY BREACH OF THE LIMITED WARRANTY SET FORTH IN SECTION 11.1 AND 11.2. 11.6 Buyer Breach. In no event shall Buyer be entitled to claim under the above Limited Warranties if Buyer is in breach of its obligations, including but not limited to payment, hereunder. 12. Limitation of Liability: 12.1 IN NO EVENT SHALL SELLER BE LIABLE FOR ANY CONSEQUENTIAL, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR PUNITIVE DAMAGES, LOST PROFITS OR REVENUES OR DIMINUTION IN VALUE, INCLUDING WITHOUT LIMITATION, REMANUFACTURING COSTS AND REWORK COSTS, DE-INSTALLATION OR REINSTALLATION COST, WHETHER OR NOT THE POSSIBILITY OF SUCH DAMAGES HAS BEEN DISCLOSED IN ADVANCE BY BUYER OR COULD HAVE BEEN REASONABLY FORESEEN BY BUYER, REGARDLESS OF THE LEGAL OR EQUITABLE THEORY (TORT, CONTRACT, OR OTHERWISE) UPON WHICH THE CLAIM IS BASED, AND WHATEVER THE FORUM, WHETHER ARISING OUT OF OR IN CONNECTION WITH THE MANUFACTURE, PACKAGING, DELIVERY, STORAGE, USE, MISUSE OR NON-USE OF ANY OF ITS GOODS OR SERVICES OR ANY OTHER CAUSE WHATSOEVER. 12.2 IN NO EVENT SHALL SELLER'S AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT, WHETHER ARISING OUT OF OR RELATED TO BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, EXCEED FIVE TIMES THE TOTAL OF THE AMOUNTS PAID TO SELLER FOR THE GOODS AND SERVICES SOLD HEREUNDER 12.3 The limitation of liability set forth in Section 12.1 above shall not apply to liability resulting from Seller's gross negligence or willful misconduct. 13. Indemnity/Waiver of Claims/Insurance : For other than professional services rendered, to the fullest extent permitted by law, within the limits of its insurance in this Agreement, Seller agrees to release, defend, indemnify, and hold harmless the Buyer, its agents, representatives, employees, and officers from and against any and all claims, demands, actions, fees and costs (including Pall Water Systems  839 NYS Route 13  Cortland, NY 13045  CSC: #866-475-0115 Page 12 of 17 76 Aftermarket Comprehensive Services Plan Pall Water Proposal No.: OPP1683482 Date: January 6, 2023 Confidential - Company Proprietary Confidential - Company Proprietary reasonable attorney’s fees and the costs and fees of expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the Buyer occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Seller; or (ii) any negligent, reckless, or intentional misconduct of any of the Seller’s agents. For services rendered, to the fullest extent permitted by law and within the limits of its insurance in this Agreement, Seller agrees to indemnify and hold the Buyer harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the negligence or willful misconduct of the Seller or Seller’s agents or employees. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the indemnitee(s) which would otherwise exist as to such indemnitee(s). Seller’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by Buyer. Should Buyer be required to bring an action against the Seller to assert its right to defense or indemnification under this Agreement or under the Seller’s applicable insurance policies required below, Buyer shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Seller was obligated to defend the claim(s) or was obligated to indemnify the indemnitee for a claim(s) or any portion(s) thereof. In the event of an action filed against the Buyer resulting from the Buyer’s performance under this Agreement, the Buyer may elect to represent itself and incur all costs and expenses of suit. These obligations shall survive termination of this Agreement and the services performed hereunder. In addition to and independent from the above, Seller shall at Seller’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Seller in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed Pall Water Systems  839 NYS Route 13  Cortland, NY 13045  CSC: #866-475-0115 Page 13 of 17 77 Aftermarket Comprehensive Services Plan Pall Water Proposal No.: OPP1683482 Date: January 6, 2023 Pall Water Systems  839 NYS Route 13  Cortland, NY 13045  CSC: #866-475-0115 Page 14 of 17 Confidential - Company Proprietary Confidential - Company Proprietary by the Seller 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 Buyer. Seller shall furnish to Buyer an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows: •Workers’ Compensation – statutory; •Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; •Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; •Automobile Liability - $1,000,000 property damage/bodily injury per accident; and •Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate. The above amounts shall be exclusive of defense costs. Buyer shall be endorsed as an additional or named insured on a primary non- contributory basis on the Commercial General and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to Buyer and carrier will provide cancellation notice in accordance with policy provisions. Seller must provide all insurance coverage and endorsement to Buyer prior to the Seller commencing work. Seller shall notify Buyer within ten (10) business days of Seller’s receipt of notice that any required insurance coverage will be terminated or Seller’s decision to terminate any required insurance coverage for any reason 14 Cancellation: Buyer may not cancel this Agreement after Sales Confirmation unless all the details are approved in writing by the parties, including Buyer's agreement to pay a stated amount of termination charges. 15 Termination: In addition to any remedies that may be provided under these Terms, Seller may terminate this Agreement with immediate effect upon written notice to Buyer, if Buyer: (i) fails to pay any amount when due under this Agreement and such failure continues for 10 days after Buyer's 78 Aftermarket Comprehensive Services Plan Pall Water Proposal No.: OPP1683482 Date: January 6, 2023 Confidential - Company Proprietary Confidential - Company Proprietary receipt of written notice of nonpayment; (ii) has not otherwise performed or complied with any of these Terms, in whole or in part; or (iii) becomes insolvent, files a petition for bankruptcy or commences or has commenced against it proceedings relating to bankruptcy, receivership, reorganization or assignment for the benefit of creditors. 16 Changes: Seller shall not be obligated to implement any changes or variations in the scope of work described in Seller’s Documentation unless Buyer and Seller agree in writing to the details of the change and any resulting price, schedule or other contractual modifications. This includes any changes or variations necessitated by a change in applicable law occurring after the effective date of this Agreement including these Terms. 17 Intellectual Property Infringement: Buyer has no authorization to make any representation, statement or warranty on behalf of Seller relating to any Goods sold hereunder. Buyer shall indemnify and defend, at its own expense, Seller against claims or liability for U.S. or applicable foreign patent, copyright, trademark or other intellectual property infringement and for product liability arising from the preparation or manufacture of the Goods according to Buyer's specifications or instructions, or from Buyer's unauthorized or improper use of the Goods or part thereof, or from any changes or alterations to the Goods or part thereof made by persons other than Seller, or from the use of the Goods in combination with products not furnished by Seller or from the manufacture or sale or use of Buyer products which incorporate or integrate the Goods. 18 Ownership of Materials: All ideas, concepts, whether patentable or not, devices, inventions, copyrights, improvements or discoveries, designs (including drawings, plans and specifications), estimates, prices, notes, electronic data and other documents or information that are: a) created, prepared, reduced to practice or disclosed by Seller; and/or b) based upon, derived from, or utilize the Confidential Information of Seller, and all related intellectual property rights, shall at all times remain Seller’s property. No right, title or interest in any patents, trademarks, trade names or trade secrets, or in any pattern, drawing or design for any of the Goods or in any other Seller intellectual property right, shall pass or transfer to the Buyer and Seller shall at all times retain ownership rights therein. Notwithstanding the foregoing, Seller grants Buyer a non-exclusive, non-transferable license to use any such material to the extent necessary and solely for Buyer’s use of the Goods purchased by Buyer from Seller hereunder. Buyer shall not disclose any such material to third parties without Seller’s prior written consent. As a condition to Seller’s delivery to Buyer of the Goods, Buyer shall not, directly or indirectly, and shall cause its employees, agents and representatives not to: (i) alter or modify the Goods, (ii) disassemble, decompile or otherwise reverse engineer or analyze the Goods, (iii) remove any product identification or proprietary rights notices, (iv) modify or create derivative works, (v) otherwise take any action contrary to Seller’s rights in the technology and intellectual property relating to the Goods, (vi) assist or ask others to do any of the foregoing. 19 Export: As a condition to Seller’s delivery to Buyer of the Goods, Buyer agrees, with respect to the exportation or resale of the Goods by Buyer, to comply with all requirements of the International Traffic in Arms Regulations ("ITAR") and the Export Administration Regulations ("EAR"), regulations issued thereunder and any subsequent amendments thereto, and all other national, including, but not limited to, European, government laws and regulations on export controls, including laws and regulations pertaining to export licenses, restrictions on export to embargoed countries and restrictions on sales to certain persons and/or entities. Buyer further agrees that the shipment and/or delivery of the Goods by Seller is contingent upon Seller obtaining all required export authorizations, Pall Water Systems  839 NYS Route 13  Cortland, NY 13045  CSC: #866-475-0115 Page 15 of 17 79 Aftermarket Comprehensive Services Plan Pall Water Proposal No.: OPP1683482 Date: January 6, 2023 Confidential - Company Proprietary Confidential - Company Proprietary licenses, and permits (collectively, “Authorizations”) and Buyer agrees that Seller shall not be liable to Buyer for any failure or delay in the shipment or delivery of the Goods if such Authorizations are delayed, conditioned, denied or not issued by the regulatory or governmental agencies having jurisdiction over such Authorizations. 20 Confidentiality: If Seller discloses or grants Buyer access to any research, development, technical, economic, or other business information or "know-how" of a confidential nature, whether reduced to writing or not, Buyer will not use or disclose any such information to any other person or company at any time, without Seller's prior written consent.. 21 No Waiver: No waiver by Seller of any of the provisions of this Agreement is effective unless explicitly set forth in writing and signed by Seller. Seller's failure to exercise, or to delay in exercising, any right, remedy, power or privilege arising from this Agreement, or to insist on Buyer's strict performance of these Terms shall not operate as or be construed as a waiver by Seller. 22 Force Majeure: Under no circumstances shall the parties have any liability for any breach relating to nonperformance or underperformance caused by extreme weather, natural disaster, fire, accident or other act of God; strike, lock out or other labor shortage or disturbance; lock down, boycott, embargo or tariff; terrorism or act of terrorism, war or war condition or civil disturbance or riot; failure of public or private telecommunications networks; delay of carriers or other industrial, agricultural or transportation disturbance; failure of normal sources of supply; epidemics, pandemics, contagion, disease or quarantine; law, regulation or any act of government; or any other cause beyond with party’s reasonable control. Either party’s performance shall be excused and deemed suspended during the continuation of such event or events and, for a reasonable time thereafter, delayed or adjusted accordingly. 23 No Third-Party Beneficiaries: This Agreement is for the sole benefit of the parties hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of these Terms. 24 Relationship of the Parties: The relationship between the parties is that of independent contractors. Nothing contained in this Agreement shall be construed as creating any agency, partnership, joint venture or other form of joint enterprise, employment or fiduciary relationship between the parties, and neither party shall have authority to contract for or bind the other party in any manner whatsoever. 25 Validity: If any provision of this Agreement, the Sales Confirmation or these Terms is held by any competent authority to be invalid or unenforceable in whole or in any part, such provision shall be ineffective, but only to the extent of such invalidity or unenforceability, without invalidating the remainder of such provision nor the other provisions, which shall not be affected. 26 Governing Law: Seller’s Terms and Conditions of Sale and the parties’ agreement for the sale of Services shall be governed by the laws of the State of Montana. 27 Submission to Jurisdiction: Buyer and Seller hereby unconditionally and irrevocably submit to (and waive any objection on the grounds of inconvenient forum or otherwise) the jurisdiction of the Supreme Court of the State of Montana, County of Gallatin or the United States District Court for the Montana, which courts shall have exclusive jurisdiction to adjudicate and determine any suit, action or Pall Water Systems  839 NYS Route 13  Cortland, NY 13045  CSC: #866-475-0115 Page 16 of 17 80 Aftermarket Comprehensive Services Plan Pall Water Proposal No.: OPP1683482 Confidential - Company Proprietary Confidential - Company Proprietary Date: January 6, 2023 proceeding regarding or relating to this Agreement and the purchase and supply of the Goods. A judgment, order or decision of those courts in respect of any such claim or dispute shall be conclusive and may be recognized and enforced by any courts of any state, country or other jurisdiction. 28 Nondiscrimination and Equal Pay: Seller agrees that all hiring by Seller of persons performing this Agreement shall be on the basis of merit and qualifications. Seller will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. Seller will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Acts of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. Seller represents it is, and for the term of this Agreement will be, in compliance with the requirements of the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act). Seller must report to Buyer any violations of the Montana Equal Pay Act that Seller has been found guilty of within 60 days of such finding for violations occurring during the term of this Agreement. Seller shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 29 Survival: All payment, confidentiality and indemnity obligations, warranties, limitations of liability, product return, and ownership of materials provisions, together with those sections the survival of which is necessary for the interpretation or enforcement of these Terms, shall continue in full force and effect for the duration stated in such provisions or the applicable statute of limitations. 30 Amendment and Modification: This Agreement may only be amended or modified in a writing which specifically states that it amends this Agreement and is signed by an authorized representative of each party. 31 Pall Water is part of Danaher Corp.’s Environmental & Applied Solutions (“EAS”) segment. Danaher Corp. has announced its intention to separate its EAS segment to create an independent, publicly traded company (the “Transaction”) (see: Danaher Announces Intention to Separate Environmental & Applied Solutions Segment to Create an Independent, Publicly Traded Company - Sep 14, 2022). In connection with the Transaction, the Pall Water assets, including this contract, will be assigned and transferred to Trojan Technologies Corp. or an affiliate thereof (the“Assignment”). Buyer hereby consents to the Transaction and the Assignment of this contract to Trojan Technologies Corp. or an affiliate thereof. Upon assignment of this contract, Trojan Technologies Corp. or an affiliate thereof will have all rights, and be liable for all obligations and responsibilities, under this contract as if the original seller. Pall Water Systems  839 NYS Route 13  Cortland, NY 13045  CSC: #866-475-0115 Page 17 of 17 81 Memorandum REPORT TO:City Commission FROM:Emily Cope, DBP Economic Development Director SUBJECT:Authorize the City Manager to Sign a Professional Services Agreement with the Downtown Bozeman Partnership for the Administration of the Downtown Business Improvement District for Fiscal Year 2024 MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Agreement - Agency/Non-profit RECOMMENDATION:Authorize the City Manager to Sign a Professional Services Agreement with the Downtown Bozeman Partnership for the Administration of the Downtown Business Improvement District for Fiscal Year 2024 STRATEGIC PLAN:1.3 Public Agencies Collaboration: Foster successful collaboration with other public agencies and build on these successes. BACKGROUND:As allowed by statute (MCA 7-12-1131), the City annually contracts the Downtown Bozeman Partnership to administer the Downtown Business Improvement District. UNRESOLVED ISSUES:None. ALTERNATIVES:As suggested by Commission. FISCAL EFFECTS:As specified in its annual work plan and budget, the Downtown BID pays a fee to the Downtown Partnership to cover the administrative costs of managing the district and implementing the annual work plan. The FY2024 Downtown BID work plan and budget was unanimously approved by the board on April 19, 2023 and presented to the City Commission on May 16, 2023. Attachments: DBP-COB PSA for Management of BID District--FY2024.pdf Report compiled on: June 5, 2023 82 Professional Services Agreement Regarding the Administration and Management of the Downtown Bozeman Business Improvement District WHEREAS, the Downtown Business Improvement District was created May 15, 2000 by Commission Ordinance No. 1517; and WHEREAS, the Downtown Business Improvement District was created on August 12, 2010 by Commission Ordinance No. 1790; and WHEREAS, the Downtown Business Improvement District was created on August 11, 2020 by Commission Ordinance No. 2040; and WHEREAS, the Downtown BID Board is authorized to employ the necessary staff to implement the Business Improvement District pursuant to 7-12-1131 MCA; 7-12-1131 Powers Of Board In Administering District. The board in administering a district has all powers necessary to carry out functions of the district contained in the ordinance creating it, including the power to: (7) provide for the management and administration of the affairs of the district.” NOW, THEREFORE, the Downtown Bozeman Partnership and City of Bozeman enter into this Professional Services Agreement defining the administration and management of the Downtown Bozeman Business Improvement District. THIS AGREEMENT is made and entered into this ____ day of ________________, 2023 (“Effective Date”), by and between the CITY OF BOZEMAN, MONTANA, a self-governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City,” and the DOWNTOWN BOZEMAN PARTNERSHIP, LLC, a limited liability company, with a physical and mailing address of 222 East Main Street #302, Bozeman, MT, 59715, hereinafter referred to as “Contractor.” The City and Contractor may be referred to individually as “Party” and collectively as “Parties.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter this Agreement with Contractor to perform for the City the services described in the Scope of Services attached hereto as Exhibit “A” and by this reference made a part hereof. 83 2. Term/Effective Date: This Agreement is effective upon the date of its execution and will terminate on the 30th day of June 2024. 3. Scope of Work: Contractor will provide administrative and management services to the Board pursuant to the BID FY2024 Work Plan and Budget outlined in the Scope of Services, Exhibit “A”. For conflicts between this Agreement and the Scope of Services, unless specifically provided otherwise, the Agreement governs. 4. Payment: City agrees to pay Contractor the amount specified in the Scope of Services, Exhibit “A” as the “Downtown Partnership Management Fee”. Any alteration or deviation from the described services that involves additional costs above the Agreement amount will be performed by Contractor after written request by the City, and will become an additional charge over and above the amount listed in the Scope of Services. The City must agree in writing upon any additional charges. 5. Contractor’s Representations: To induce City to enter into this Agreement, Contractor makes the following representations: a. Contractor has familiarized itself with the nature and extent of this Agreement, the Scope of Services, and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services. b. Contractor represents and warrants to City that it has the experience and ability to perform the services required by this Agreement; that it will perform the services in a professional, competent and timely manner and with diligence and skill; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this warranty. 6. Independent Contractor Status/Labor Relations: The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, Montana Code Annotated (MCA), and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance 84 in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue at no additional cost to City. Contractor shall indemnify, defend, and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes. 7. Indemnity/Waiver of Claims/Insurance: For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; or (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents. For the professional services rendered, to the fullest extent permitted by law, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the negligence or intentional misconduct of the Contractor or Contractor’s agents or employees. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the City as indemnitee(s) which would otherwise exist as to such indemnitee(s). Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. Should the City be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor’s applicable insurance policies required below, the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) 85 thereof. In the event of an action filed against the City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. Contractor also waives any and all claims and recourse against the City, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for [City’s] own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. These obligations shall survive termination of this Agreement and the services performed hereunder. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in this Section. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City. Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows: • Workers’ Compensation – statutory; • Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; • Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; • Automobile Liability - $1,000,000 property damage/bodily injury per accident; and • Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate. The above amounts shall be exclusive of defense costs. The City shall be endorsed as an additional or named insured on a primary non-contributory basis on both the Commercial General and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non-renewal. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. 8. Termination for Contractor’s Fault: a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions 86 of this Agreement, the City may, by written notice, terminate this Agreement and the Contractor’s right to proceed with all or any part of the work (“Termination Notice Due to Contractor’s Fault”). The City may then take over the work and complete it, either with its own resources or by re-letting the contract to any other third party. b. In the event of a termination pursuant to this Section 8, Contractor shall be entitled to payment only for those services Contractor actually rendered. c. Any termination provided for by this Section 8 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. d. In the event of termination under this Section 8, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 9. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease performance under this Agreement, the City may terminate this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease performance under this Agreement and make every reasonable effort to refrain from continuing work, incurring additional expenses or costs under this Agreement and shall immediately cancel all existing orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as may be necessary to preserve, protect, and maintain work already completed or immediately in progress. c. In the event of a termination pursuant to this Section 9, Contractor is entitled to payment only for those services Contractor actually rendered on or before the receipt of the Notice of Termination for City’s Convenience. d. The compensation described in Section 9(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 87 10. Limitation on Contractor’s Damages; Time for Asserting Claim: a. In the event of a claim for damages by Contractor under this Agreement, Contractor’s damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. b. In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 11. Representatives and Notices: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be Kira Peters or Melissa Hodnett 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. Contractor’s Representative: The Contractor’s Representative for the purpose of this Agreement shall be Emily Cope (DBP Economic Development Director) or such other individual as Contractor shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed to Contractor’s Representative; provided, however, that in exigent circumstances when Contractor’s Representative is not available, City may direct its direction or communication to other designated Contractor personnel or agents. c. Notices: All notices required by this Agreement shall be in writing and shall be provided to the Representatives named in this Section. Notices shall be deemed given when delivered, if delivered by courier to Party’s address shown above during normal business hours of the recipient; or when sent, if sent by email or fax (with a successful transmission report) to the email address or fax number provided by the Party’s Representative; or on the fifth business day following mailing, if mailed by ordinary mail to the address shown above, postage prepaid. 12. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 88 13 Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 14. Nondiscrimination and Equal Pay: The Contractor agrees that all hiring by Contractor of persons performing this Agreement shall be on the basis of merit and qualifications. The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. Contractor represents it is, and for the term of this Agreement will be, in compliance with the requirements of the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act). Contractor must report to the City any violations of the Montana Equal Pay Act that Contractor has been found guilty of within 60 days of such finding for violations occurring during the term of this Agreement. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 15. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing its employees and agents in safe work practices. 16. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign 89 Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of the City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 17. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 18. Non-Waiver: A waiver by either party of any default or breach by the other party of any terms or conditions of this Agreement does not limit the other party’s right to enforce such term or conditions or to pursue any available legal or equitable rights in the event of any subsequent default or breach. 19. Attorney’s Fees and Costs: In the event it becomes necessary for either Party to retain an attorney to enforce any of the terms or conditions of this Agreement or to give any notice required herein, then the prevailing Party or the Party giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel including the City Attorney’s Office staff. 20. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 21. Dispute Resolution: a. Any claim, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. b. If the parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 22. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 23. Headings: The headings used in this Agreement are for convenience only and are not be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 90 24. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 25. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 26. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 27. No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or enforced by a third party. 28. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 29. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained herein or made a part thereof by reference, are not binding upon the parties. There are no understandings between the parties other than as set forth in this Agreement. All communications, either verbal or written, made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 30. Consent to Electronic Signatures: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written or as recorded in an electronic signature. CITY OF BOZEMAN, MONTANA DOWNTOWN BOZEMAN PARTNERSHIP CONTRACTOR By________________________________ By_________________________________ Jeff Mihelich, City Manager Emily Cope, Economic Development Director APPROVED AS TO FORM: By_______________________________ Greg Sullivan, City Attorney 91 Scope of Services: Exhibit “A” Downtown Business Improvement District FY2024 BID Work Plan and Budget BID Mission Statement The BID is an organization of downtown property owners who through thoughtful, pro-active collaboration and partnership with local government, business owners, residents and citizens strive to create a shared vision and voice for the community of downtown Bozeman. The BID will commit resources, identify, plan and act on short-term and long-term initiatives otherwise unavailable to individual owners. The BID has a goal of ensuring the long-term preservation and vitality of the city’s underlying economic, cultural, social and environmental assets and the BID will work together to keep our downtown a safe, beautiful and vibrant place. BID Assessment Programs The following programs are funded by the special assessments collected from property owners within the Downtown Business Improvement District. The BID assessment for FY2024 will be $230,000. The BID will also receive approximately $50,350 in additional revenue from sponsorships and maintenance contracts. Downtown Bozeman Partnership ($67,500) The BID is a member of the Downtown Bozeman Partnership. The BID contributes to the administration of the Downtown Partnership office located at 222 East Main Street. Downtown Bozeman Association ($27,000) The BID contributes to the DBA to support its events, staff and marketing efforts to promote downtown. The DBA hosts events downtown that include Art Walks, Music on Main, Crazy Days, Cruisin’ on Main Car Show, Cat Walk, Restaurant Week and more. Summer Flowers ($30,000) The BID purchases, installs and maintains 300+ hanging baskets of Super-Petunias. In summer of 2023, 120 Earth Planter self-watering baskets are replacing the wrought-iron baskets on the side streets of downtown. The Earth Planter baskets provide improved plant growth by regulating water delivery based on soil conditions while reducing labor costs, fuel and water usage. The baskets only need to be watered two to three times per week rather than seven days a week. The BID has expressed interest in continuing this sustainability effort and plans to purchase additional baskets for Main Street in the coming years. These flower baskets are hung throughout downtown from June through September. Holiday Lighting ($15,525) The BID installs the following holiday lighting downtown: 1) lighted garland on each historic lamp post along Main Street; 2) lights on the large conifer trees in Soroptomist Park; 3) garland wreaths at the Rouse, Church, Wallace, and Grand intersections; and 4) the infamous holiday “spider” decorations above four downtown intersections. The green decoration was replaced in 2022 and the red decoration will be replaced in 2023. The BID board will replace the remaining two decorations in the next two to four years, earmarking reserve funds for this project. Maintenance Program ($97,575) The BID hires two full-time maintenance employees in addition to two part-time maintenance employees for the summer months. Primary tasks performed by the BID maintenance staff includes garbage collection, flower watering, tree watering, Soroptomist Park upkeep, installation of the streetlamp banners, maintenance of pedestrian benches, graffiti removal, and limited snow removal. The BID maintenance staff removed over 4,000 bags of garbage and recycling during the past year from over 100 receptacles. Outreach Bozeman ($10,000) This funding would support the full slate of programming available to assist individuals and families experiencing homelessness. This would include outreach, programming to assist with the return to self-sufficiency, overnight programming and staffing. Over the last year we have seen a significant decrease in the number of people experiencing homelessness in the downtown corridor. This is a direct result of HRDC conducting outreach to people living in urban 92 Professional Services Agreement for the Administration of the Downtown Bozeman Business Improvement District FY 2024 Page 11 of 12 encampments and the availability of day enriching daytime/evening programming. Graffiti Removal Program ($7,500) The BID comprehensive graffiti removal program is in its third year of operation. Since 2009, this program has removed 4,000 graffiti tags. The BID maintenance staff removes tags from public property and works with property owners to clean private buildings of graffiti. The BID will continue to actively remove new tags as quickly as possible considering immediate removal has proven to be the most effective deterrent. Downtown Banners ($3,000) The BID purchases, installs and maintains the downtown light pole banners. Seasonally the BID installs banners for MSU, Bozeman Farmers Market, Bridger Bowl, Big Sky Resort, Sweet Pea, SLAM, BYEP, Bozeman Health, Bridgercare, Greater Yellowstone Coalition and more. Tree Replacement ($2,000) The BID replaces trees that have died in the downtown district. In coordination with the City Forestry Division, dead trees are removed and then replaced by a local nursery. Smaller newly planted trees are susceptible due to physical damage and insufficient water. Downtown Marketing ($2,500) The BID contributes to the general marketing of downtown Bozeman. These funds are made available to the Downtown Partnership which places advertisements in ten to twelve local, regional and state-wide publications. Vehicle Maintenance ($9,750) The BID owns and maintains a maintenance truck and two mules/ATVs. Maintenance Supplies ($6,675) The BID purchases a wide variety of maintenance supplies for various programs, including trash bags. 93 Professional Services Agreement for the Administration of the Downtown Bozeman Business Improvement District FY 2024 Page 12 of 12 FY2024 Estimated Starting Cash Balance- Reserves 140,000$ Expenses- Capital Projects/Reserves Red Holiday Spider Replacement 15,000$ Earth Planter Self-Watering Baskets (Main St)45,000$ Operating Reserves 80,000$ FY24 Income BID Assessment 230,000$ Contract Income 24,000$ Interest Income 100$ Mobile Vending Fees 1,800$ Flower Sponsorships 9,000$ Christmas Light Sponsorships 3,500$ Streetlamp Banners 12,000$ Total Income 280,400$ Expenses Management Fee 67,500$ Total Expenses 67,500$ Payroll Expenses Maintenance Staff 65,000$ Taxes 4,800$ Work Comp 3,300$ Maintenance Staff--Garage 22,500$ Taxes 1,000$ Work Comp 1,000$ Total Payroll Expenses 97,600$ Programs Downtown Bozeman Association (DBA) Support 27,000$ Holiday Lights -Reserve Fund 10,000$ Holiday Lights 2,000$ Holiday Lights Spider Repair 2,000$ Holiday Decor Storage 1,500$ Outreach Bozeman 10,000$ New Banners 3,000$ Flower Expenses 30,000$ Flower Water 300$ Tree Purchases 2,000$ Marketing 2,500$ Maintenance Supplies 4,000$ Garbage Bags 2,700$ Graffiti Supplies 1,000$ Graffiti Contracted Removal 6,500$ Mule Service & Fuel 1,800$ Truck Service & Fuel 2,500$ Vehicle Insurance 5,500$ Program Contingency 1,000$ Total Program Expenses 115,300$ Total BID Expenses 280,400$ NET ASSESSMENT INCOME -$ Downtown BID FY24 Work Plan & Budget 94 Memorandum REPORT TO:City Commission FROM:Ellie Staley, DBP Executive Director SUBJECT:Authorize the City Manager to Sign a Professional Services Agreement with the Downtown Bozeman Partnership for the Administration of the Downtown Urban Renewal District for Fiscal Year 2024 MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Agreement - Agency/Non-profit RECOMMENDATION:Authorize the City Manager to Sign a Professional Services Agreement with the Downtown Bozeman Partnership for the Administration of the Downtown Urban Renewal District for Fiscal Year 2024 STRATEGIC PLAN:1.3 Public Agencies Collaboration: Foster successful collaboration with other public agencies and build on these successes. BACKGROUND:The City annually contracts the Downtown Bozeman Partnership to administer the Downtown Urban Renewal District. UNRESOLVED ISSUES:None. ALTERNATIVES:As suggested by Commission. FISCAL EFFECTS:As specified in its annual work plan and budget, the Downtown URD pays a fee to the Downtown Partnership to cover the administrative costs of managing the district and implementing the annual work plan. The FY2024 Downtown URD work plan and budget was unanimously approved by the board on April 18, 2023 and presented to the City Commission on May 16, 2023. Attachments: DBP-COB PSA for Management of URD District--FY2024.pdf Report compiled on: June 5, 2023 95 Professional Services Agreement for the Administration and Management of the Downtown Bozeman Urban Renewal District FY 2024 Page 1 of 17 Professional Services Agreement Regarding the Administration and Management of the Downtown Bozeman Urban Renewal District WHEREAS, the Downtown Urban Renewal District was created March 6, 1995 by Commission Resolution No. 3046; and WHEREAS, the Downtown Urban Renewal Plan was adopted on November 20, 1995 by Commission Ordinance No. 1409; and WHEREAS, the life of the Tax Increment Financing District established under the Urban Renewal Plan was extended on March 7, 2005 by Commission Ordinance No. 1628; and WHEREAS, the life of the Tax Increment Financing District established under the Urban Renewal Plan was extended on December 17, 2007 until the year 2032 with the sale of Tax Increment Urban Renewal Revenue Bonds by Commission Resolution No. 4073; and WHEREAS, the adopted Urban Renewal Plan stipulated that an Urban Renewal Agency would be created and referred to as the Downtown Bozeman Improvement District Board (the “Board”) pursuant to 7-15-4232 MCA and 7-15-4234 MCA; and 7-15-4232. Authorization to assign urban renewal powers to municipal departments or to create urban renewal agency. When a municipality has made the finding prescribed in 7-15-4210 and has elected to have the urban renewal project powers exercised as specified in 7-15-4233: (1) such urban renewal project powers may be assigned to a department or other officers of the municipality or to any existing public body corporate; 7-15-4234. Urban renewal agency to be administered by appointed board of commissioners. (1) If the urban renewal agency is authorized to transact business and exercise powers under this part, the mayor, by and with the advice and consent of the local governing body, shall appoint a board of commissioners of the urban renewal agency consisting of five commissioners... WHEREAS, the Downtown Board as the designated Urban Renewal Agency is authorized to employ the necessary staff to implement the Urban Renewal Plan pursuant to 7-15- 4238 MCA; 96 Professional Services Agreement for the Administration and Management of the Downtown Bozeman Urban Renewal District FY 2024 Page 2 of 17 7-15-4238. Employment of necessary staff. The urban renewal agency or department or officers exercising urban renewal project powers shall be supplied with the necessary technical experts and such other agents and employees, permanent and temporary, as are required. WHEREAS, the Board bylaws state “Should a private organization be responsible for program administration, such arrangements shall be made by contract with the City of Bozeman.”; NOW, THEREFORE, the Downtown Bozeman Partnership and City of Bozeman enter into this Professional Services Agreement defining the administration and management of the Downtown Bozeman Urban Renewal District. THIS AGREEMENT is made and entered into this ____ day of ________________ 2023 (“Effective Date”), by and between the CITY OF BOZEMAN, MONTANA, a self-governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City,” and the DOWNTOWN BOZEMAN PARTNERSHIP, LLC, a limited liability company, with a physical and mailing address of 222 East Main Street #302, Bozeman, MT, 59715, hereinafter referred to as “Contractor.” The City and Contractor may be referred to individually as “Party” and collectively as “Parties.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter this Agreement with Contractor to perform for City services described in the Scope of Services attached hereto as Exhibit “A” and by this reference made a part hereof. 2. Term/Effective Date: This Agreement is effective upon the date of its execution and will terminate on the 30th day of June 2024. 3. Scope of Work: Contractor will provide administrative and management services to the Board pursuant to the URD FY2024 Work Plan and Budget outlined in the Scope of Services, Exhibit “A”. For conflicts between this Agreement and the Scope of Services, unless specifically provided otherwise, the Agreement governs. 4. Payment: City agrees to pay Contractor the amount specified in the Scope of Services, Exhibit “A” as the “Downtown Partnership Management Fee”. Any alteration or deviation from the described services that involves additional costs above the Agreement amount will be performed by Contractor after written request by the City, and will become an additional 97 Professional Services Agreement for the Administration and Management of the Downtown Bozeman Urban Renewal District FY 2024 Page 3 of 17 charge over and above the amount listed in the Scope of Services. The City must agree in writing upon any additional charges. 5. Contractor’s Representations: To induce City to enter into this Agreement, Contractor makes the following representations: a. Contractor has familiarized itself with the nature and extent of this Agreement, the Scope of Services, and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services. b. Contractor represents and warrants to City that it has the experience and ability to perform the services required by this Agreement; that it will perform the services in a professional, competent and timely manner and with diligence and skill; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this warranty. 6. Independent Contractor Status/Labor Relations: The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, Montana Code Annotated (MCA), and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific 98 Professional Services Agreement for the Administration and Management of the Downtown Bozeman Urban Renewal District FY 2024 Page 4 of 17 steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue at no additional cost to City. Contractor shall indemnify, defend, and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes. 7. Indemnity/Waiver of Claims/Insurance: For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; or (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents. For the professional services rendered, to the fullest extent permitted by law, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the negligence or intentional misconduct of the Contractor or Contractor’s agents or employees. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the City as indemnitee(s) which would otherwise exist as to such indemnitee(s). Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. Should the City be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor’s applicable insurance policies required below, the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to 99 Professional Services Agreement for the Administration and Management of the Downtown Bozeman Urban Renewal District FY 2024 Page 5 of 17 indemnify the City for a claim(s) or any portion(s) thereof. In the event of an action filed against the City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. Contractor also waives any and all claims and recourse against the City, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for [City’s] own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. These obligations shall survive termination of this Agreement and the services performed hereunder. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in this Section. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City. Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows: • Workers’ Compensation – statutory; • Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; • Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; • Automobile Liability - $1,000,000 property damage/bodily injury per accident; and • Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate. The above amounts shall be exclusive of defense costs. The City shall be endorsed as an additional or named insured on a primary non-contributory basis on both the Commercial General and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non- renewal. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. 100 Professional Services Agreement for the Administration and Management of the Downtown Bozeman Urban Renewal District FY 2024 Page 6 of 17 The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. 8. Termination for Contractor’s Fault: a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, the City may, by written notice, terminate this Agreement and the Contractor’s right to proceed with all or any part of the work (“Termination Notice Due to Contractor’s Fault”). The City may then take over the work and complete it, either with its own resources or by re-letting the contract to any other third party. b. In the event of a termination pursuant to this Section 8, Contractor shall be entitled to payment only for those services Contractor actually rendered. c. Any termination provided for by this Section 8 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. d. In the event of termination under this Section 8, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 9. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease performance under this Agreement, the City may terminate this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease performance under this Agreement and make every reasonable effort to refrain from continuing work, incurring additional expenses or costs under this Agreement and shall immediately cancel all existing orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as may be necessary to preserve, protect, and maintain work already completed 101 Professional Services Agreement for the Administration and Management of the Downtown Bozeman Urban Renewal District FY 2024 Page 7 of 17 or immediately in progress. c. In the event of a termination pursuant to this Section 9, Contractor is entitled to payment only for those services Contractor actually rendered on or before the receipt of the Notice of Termination for City’s Convenience. d. The compensation described in Section 9(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 10. Limitation on Contractor’s Damages; Time for Asserting Claim: a. In the event of a claim for damages by Contractor under this Agreement, Contractor’s damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. b. In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 11. Representatives and Notices: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be David Fine 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. Contractor’s Representative: The Contractor’s Representative for the 102 Professional Services Agreement for the Administration and Management of the Downtown Bozeman Urban Renewal District FY 2024 Page 8 of 17 purpose of this Agreement shall be Ellie Staley (DBP Executive Director) or such other individual as Contractor shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed to Contractor’s Representative; provided, however, that in exigent circumstances when Contractor’s Representative is not available, City may direct its direction or communication to other designated Contractor personnel or agents. c. Notices: All notices required by this Agreement shall be in writing and shall be provided to the Representatives named in this Section. Notices shall be deemed given when delivered, if delivered by courier to Party’s address shown above during normal business hours of the recipient; or when sent, if sent by email or fax (with a successful transmission report) to the email address or fax number provided by the Party’s Representative; or on the fifth business day following mailing, if mailed by ordinary mail to the address shown above, postage prepaid. 12. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 13 Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non- discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 14. Nondiscrimination and Equal Pay: The Contractor agrees that all hiring by Contractor of persons performing this Agreement shall be on the basis of merit and qualifications. The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The 103 Professional Services Agreement for the Administration and Management of the Downtown Bozeman Urban Renewal District FY 2024 Page 9 of 17 Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. Contractor represents it is, and for the term of this Agreement will be, in compliance with the requirements of the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act). Contractor must report to the City any violations of the Montana Equal Pay Act that Contractor has been found guilty of within 60 days of such finding for violations occurring during the term of this Agreement. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 15. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing its employees and agents in safe work practices. 16. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of the City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 17. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 104 Professional Services Agreement for the Administration and Management of the Downtown Bozeman Urban Renewal District FY 2024 Page 10 of 17 18. Non-Waiver: A waiver by either party of any default or breach by the other party of any terms or conditions of this Agreement does not limit the other party’s right to enforce such term or conditions or to pursue any available legal or equitable rights in the event of any subsequent default or breach. 19. Attorney’s Fees and Costs: In the event it becomes necessary for either Party to retain an attorney to enforce any of the terms or conditions of this Agreement or to give any notice required herein, then the prevailing Party or the Party giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel including the City Attorney’s Office staff. 20. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 21. Dispute Resolution: a. Any claim, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. b. If the parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 22. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 23. Headings: The headings used in this Agreement are for convenience only and are not be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 24. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 25. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 105 Professional Services Agreement for the Administration and Management of the Downtown Bozeman Urban Renewal District FY 2024 Page 11 of 17 26. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 27. No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or enforced by a third party. 28. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 29. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained herein or made a part thereof by reference, are not binding upon the parties. There are no understandings between the parties other than as set forth in this Agreement. All communications, either verbal or written, made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 30. Consent to Electronic Signatures: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written or as recorded in an electronic signature. CITY OF BOZEMAN, MONTANA DOWNTOWN BOZEMAN PARTNERSHIP CONTRACTOR By____________________________ By___________________________ Jeff Mihelich, City Manager Ellie Staley, Executive Director APPROVED AS TO FORM: By_______________________________ Greg Sullivan, City Attorney 106 Professional Services Agreement for the Administration and Management of the Downtown Bozeman Urban Renewal District FY 2024 Page 12 of 17 Scope of Services: Exhibit “A” Downtown Urban Renewal District FY2024 Work Plan and Budget Downtown URD Mission Statement The Downtown Bozeman Urban Renewal District board (URD) will foster an economically thriving district that: 1) attracts investment; 2) stabilizes and strengthens the tax base; and 3) supports the vitality and diversity of the Gallatin Valley as its social and cultural center. In 1995, the City Commission adopted the Urban Renewal Plan for downtown Bozeman which was subsequently amended in 2015. The intent and purpose of the Urban Renewal Plan emphasizes: 1. Bozeman’s historical character as a “working” downtown shall be maintained. 2. Traffic movement and access shall be designed with the emphasis on the downtown as a designation rather than improving the flow of through traffic. 3. The facilitation of private/public partnerships is encouraged in the implementation of the Plan. 4. Objectives shall be accomplished by incentives whenever possible. 5. Private property rights will be respected. 6. Administrative practices shall be conducted in a constructive manner which fosters cooperation. 7. This Plan is further detailed, refined, prioritized and implemented by the “Downtown Improvement Plan” which outlines specific programs and projects consistent with the Urban Renewal Plan. The Urban Renewal Plan established nine “Guiding Principles” to provide direction for improving Bozeman’s historic downtown. The Urban Renewal Study Committee considered the first three principles more important than the next three with the last three the least important. However, the Committee deemed all nine principles to be vital to achieving the vision for downtown. Key implementation actions were identified for each principle (may apply to multiple principles but are only listed once below). 1. Strengthen downtown’s economic vitality 2. Improve the safety, security and health of the district 3. The image of downtown shall be continuously improved 4. Downtown’s accessibility shall be improved 5. “Community Partnership” is fundamental to downtown’s success 6. Downtown’s diversity shall be facilitated 7. The cost of projects and programs shall be weighed against their benefits 8. Downtown shall become more user friendly 9. Cultural activities shall be nurtured and expanded downtown Downtown URD FY24 Programs, Projects and Initiatives The Downtown URD anticipates a FY23 year-end balance of $7.2 million and FY24 revenues are projected to be $1.6 million which totals just under $9 million of funding available for FY24. The proposed FY24 expenditures and allocated funds total $8.6 million with an estimated FY24 year-end balance of $225,000. The following work plan and budget outline these projects and projected expenses. Ongoing DBP/City of Bozeman Operational Support: Downtown Bozeman Partnership Management Fee (FY23 - $203,500, FY24 - $220,000) An estimated 8% increase in FY24. The DBP has seen significant rises in health care premiums, lease rates, energy bills and overall operational costs and this is a needed increase to cover overall rise in operational costs to the organization and for employee retention. 107 Professional Services Agreement for the Administration and Management of the Downtown Bozeman Urban Renewal District FY 2024 Page 13 of 17 City of Bozeman Economic Development Staff Support (FY23 - $56,100, FY24 - $58,100) This expense helps fund a portion of payroll expenses for City of Bozeman staffing support. This has looked different over the past two years as digital platforms have been enhanced and the need for support have shifted. We confirmed that due to the rise in wages and benefits that this expense was much higher in FY23 than originally anticipated. A small increase is projected for FY24 with similar city staff support. Current Encumbered Projects and Programs: Street Furniture/Streetscape-new purchases (FY23 - $25,000 (FY24 - $50,000) In FY23 we shifted to tree and tree grate updates based on need. We hired Greenspace to pull, grind and replant 5 of 11 trees that died during the drought in 2021/22. We also purchased several new benches and tree guards/grates for redeveloped sites. In FY24 we will continue to support the City of Bozeman for tree replacement projects that require added engineering or contract work. We will need also to purchase several new tree guards and grates for the remaining 8 trees (2 more removed in FY22). Soroptimist Park/North Black Pocket Park (FY23/Improvements $25,000, FY24/Maintenance – $25,000) In FY23 this was intended for future Soroptimist Park planning but was used to complete the North Black Pocket Park by board decision. Moving forward, I’d propose we combine the ongoing improvement needs for Soroptimist Park and our now-needed ongoing improvements at the North Black Pocket Park and seasonal planters. No future large enhancements are planned for Soroptimist Park, after a minor revamp in 2022 but could be a priority in the future. Alley Improvement Project & Planning (FY23 - $250,000, FY24 – $300,000) We are underway with the North Black to Tracy Alley Improvement Project and have completed initial design plans, hired a design team and project manager. We are finalizing a CCOA with the city and making plans for an alley-wide trash program and several call for art announcements. Majority of work is planned for spring 2023, based on project bid interest. The increase in FY24 is to cover the increased construction costs due to inflation and to allow for additional funding for the next alley design plans. Intersection Cable Anchor Repairs (FY23/24 - $25,000) This is a just-in-case fund, and no large repairs are projected for FY24. These are ongoing and necessary upgrades, specifically as buildings get redeveloped on those specific corners. Pedlet/Parklet Project (FY23/Planning - $50,000, FY24/Planning & Infrastructure - $40,000) The idea of a “parklet” or extension of private use into public sidewalk space has been in discussion for many years and elevated during covid. We have recently completed a plan that led us into a “Pedlet” idea rather than a “Parklet” with Downtown Partnership ownership. Most recently the city staff showed concern with implementing this project due to the loss of parking and the next steps for support will be to take the plan to the transportation board. Workforce Housing Project – Fire Station One (FY23/24 - Encumbered $1,600,000) This is an encumbered expense approved for a project with 50 units of work force housing to be sold at 120% AMI. The $1.6 million approved for this project will be reimbursed at the certificate of occupancy and when all of the project conditions have been met. This will likely be reimbursed after FY24 but will be encumbered until paid or approved project changes. On-going Programs & Projects in FY24: URD Grant Programs – The URD grants have been updated to reflect current code updates and can now be completed online. Continued revisions and updated have bene made to make grants 108 Professional Services Agreement for the Administration and Management of the Downtown Bozeman Urban Renewal District FY 2024 Page 14 of 17 relevant. A more aggressive approach to advertise the grants have been done with great results. A complete revision of the residential and tag assistance grants are scheduled to start in early spring 2023 and be completed by fall 2023. Please review and discuss ideas: • Streetscape Assistance (FY23 - $50,000, FY24 - $50,000) ▪ Make benefits clearer and adjust to current needs including running conduit, improving water and sewer lines ▪ Add and an Infrastructure Improvement Grants, possibly based on tax projections over lifetime of DURD, research loan program with City Economic Department • Fiber Infrastructure Grant (FY23 - $10,000, FY24 - $10,000) ▪ No big changes needed, continue to be used and generally see up to 5 applicants/yr. • Life-safety Grant (FY23 - $10,000, FY24 - $10,000) ▪ Great investment but only for larger re-development projects, assume 1 per/yr. at $10K/ea. • Technical Assistance Grant (FY23 - $50,000, FY24 - $50,000) ▪ Add Art/Social Infrastructure Grant ▪ Add CPTED (Crime Prevention through Environmental Design) Grants – lighting, cameras, landscape improvements • Residential Incentive Program (FY2023 - $200,000, FY24 - $200,000) ▪ TWO potential projects seeking support in FY24, 5th and Mendenhall 6-story residential project, The Scully building converting commercial into residential. Both in planning stages and hope to complete work in FY24. Wayfinding and Parking Signage Project – Planning/Infrastructure (FY23 - $40,000, FY24 - $40,000) This ranked as a top project on the URD board prioritization exercise to expand and clarify what amenities and parking are available. This was not completed in FY23 due to the unclear future of paid parking in downtown. The cost will be an estimated $20,000 for fabrication and installation of signage, $15,000 for design and planning for the project. Great Falls received a state grant for a downtown wayfinding plan. I hope to look into this for late FY24. Downtown Infrastructure & Public Realm Plan (FY23 - $50,000, FY24 $50,000) To develop plan to enhance Downtown’s identity and ensure public realm developments create a consistent and sustainable environment, establish framework for near term infrastructure investments that incrementally build to long term vision, provide path for private investment, while leveraging limited resources. We were unable to begin this project in FY23 but intend to start Phase 1 of this plan in FY24. The scope is currently being reviewed. Side-Streetscape Side-Street Preliminary Engineering (FY23 - $50,000, FY24 - $100,000, combined projects) - To update and continue planning to extend the streetscape to side streets, Babcock, and Mendenhall. This could also assist in the development of the design guidelines and standards project for future downtown development assistance that will include streetscape updates. o Design Streetscape Guidelines/Standards o North Willson Streetscape Project o South Wallace Asbestos Mitigation/Streetscape Transportation (FY23/Planning - $50,000, FY24/Improvements - $50,000) We have recently completed phase 2 of a downtown transportation plan with Sanderson Stewart that includes short-term infrastructure improvements with a focus on pedestrian safety and downtown access along Mendenhall and Babcock. We are currently developing a scope with short and long-term attainable solutions with them and City Public Works and Engineering. We hope to utilize this plan for some of the suggested safety improvements in FY24. 109 Professional Services Agreement for the Administration and Management of the Downtown Bozeman Urban Renewal District FY 2024 Page 15 of 17 Alternative Transportation Projects (FY23/24 - $50,000) This has been established as an ongoing DURD priority. No projects were completed in FY23 but there are discussions with the City Public Works department to provide DURD support for the current Black Avenue Bike Route project. These funds could support the portion of the project within DURD boundaries. Employee Paid Parking Permit System (FY23 - $20,000), Revise for FY24 to a Shared- Use/Parking Outreach program (FY24 - $20,000) Employee support, outreach and education around parking and parking management continues to be a priority as our parking needs change. These allocated funds could be used to help advertise any changes to the employee parking system, potentially off-set costs to employees for permitting or for other general implementation costs with a focus on assisting the businesses with any changes or concerns. Bozeman Creek (FY23/Improvements - $20,000, FY24/Planning - $20,000) Educational and artistic project completed in FY23. Continue engineering work in FY24 to look at flood plan mitigation within downtown. A group has been meeting to discuss next steps and current documents have been provided to city leadership. Structured Parking Site Plan, Bids - Planning (FY23 - $1,250,000 FY24 - $1,750,000, 000) Encumbered funds to support future parking supply infrastructure, increase budgeted amount in FY24 due to inflation. Parking Supply – Allocated funds for future project (FY23 - $0, FY24 $3,000,000) Although “parking supply and infrastructure” has been a DURD priority for many years, established in both downtown plans and outlined in Resolution 1409. Although funds for the construction and development for this project have not been formally allocated based on bonding capacity. Discuss how to allocate these funds or establish documentation for future allocation of funds once a bond capacity study has been completed. 110 Professional Services Agreement for the Administration and Management of the Downtown Bozeman Urban Renewal District FY 2024 Page 16 of 17 Category FY24 Budget Income Starting Cash Balance $7,256,100 Income from TIF COB Interlocal Share $1,558,200 Entitlement Share State of Montana $57,100 Interest Income $2,100 Other Income Total Income $8,873,500 Expenses Operations DBP Management Fee $220,000 City Economic Development Staff Support $58,100 Total Operations $278,100 Infrastructure Improvements Street Furniture/Streetscape Improvements & Furniture $50,000 Park Improvements (Soroptimist/NBPP) $25,000 Alley Improvements $250,000 Intersection Cable Anchor Repairs $25,000 Parklet Infrastructure $20,000 Sidestreet Infrastructure Improvements $300,000 Streetscape Assistance Grant Program $50,000 Life-Safety Grant Program $30,000 Fiber-Broadband Infrastructure Grants $10,000 Wayfinding & Parking Signage $15,000 Bozeman Creek Improvements $0 Alternative Transportation Projects $50,000 Streetlamp Power Reconfiguration Project (SILD) $100,000 Workforce Housing Project - Fire Station One $1,600,000 Total Improvements $2,525,000 Planning Alley Planning $50,000 Parklet Planning/Program $20,000 Technical Assistance Grant Program $50,000 Residential Incentive Grant Program $200,000 Utility Infrastructure Improvements $50,000 Wayfinding Plan Development $25,000 111 Professional Services Agreement for the Administration and Management of the Downtown Bozeman Urban Renewal District FY 2024 Page 17 of 17 Downtown Infrastructure & Public Realm Plan $50,000 Side-Streetscape Preliminary Engineering $100,000 Downtown Streetscape Design Standards $0 North Willson Streetscape Project $0 Transportation Planning/Improvements $50,000 Parking Management Planning & Infrastructure Support $20,000 Bozeman Creek Planning $20,000 Soroptimist Park Planning $0 Code Amendments $0 DBIP General Implementation $50,000 Structured Parking Informal, Site Plan, Bids $1,750,000 Professional Services Term Contract (parking site analysis) $75,000 Parking Supply - Designated Funds $3,000,000 Total Planning $5,510,000 Parking Structure Garage Bond Payment $335,000 Total Parking Garage Payments $335,000 Total Expenses $8,648,100 Balance $225,400 112 Memorandum REPORT TO:City Commission FROM:Shawn Kohtz, City Engineer SUBJECT:Authorize the City Manager to Sign a Professional Services Agreement for the Engineering Review Fee Study with BerryDunn MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign a Professional Services Agreement for the Engineering Review Fee Study with BerryDunn. 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:The proposed engineering review fee study is intended to evaluate the fees collected by the Engineering Division for permits issued by the Division. The fee study will advise on fee levels appropriate to recoup the cost-of-service for each of the following permits: o Public Assembly Permit o Parade/Run Permit o Open Container Waiver o Downtown Sidewalk Encroachment Permit o Exclusive Use Application o Film Permit o Commercial Encroachment Permit o Residential Encroachment Permit o Sidewalk/Driveway & Curb cut Permit o Sign Installation or Change Permit o Street Cut Application o Public Right of Way Utility Occupancy Permit Prior to amending fee levels, City staff will return to the City Commission with recommended fees for each of the permits. City staff requested quotes from the three qualified consultants, and BerryDunn provided the lowest, responsive quote. UNRESOLVED ISSUES:None ALTERNATIVES:As determined by the City Commission. 113 FISCAL EFFECTS:The total project cost is $14,785 per the attached City of Bozeman Engineering Review Fee Study Scope of Services. Funds are included in the fiscal year 2023 budget per Budget Code 750-4010-431.5010, and the budget is sufficient for the proposed work. Attachments: Professional Service Agreement Exhibit A Report compiled on: June 8, 2023 114 Professional Services Agreement for Engineering Review Fee Study Page 1 of 10 PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this day of ,2023 (“Effective Date”), by and between the CITY OF BOZEMAN, MONTANA, a self-governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City,” and, Berry, Dunn, McNeil & Parker, LLC (dba BerryDunn) 2211 Congress Street, Portland, ME 04102- 1955, hereinafter referred to as “Contractor.” The City and Contractor may be referred to individually as “Party” and collectively as “Parties.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter this Agreement with Contractor to perform for City services described in the Scope of Services attached hereto as Exhibit A and by this reference made a part hereof. 2. Term/Effective Date: This Agreement is effective upon the Effective Date, unless earlier terminated in accordance with this Agreement. 3. Scope of Services: Contractor will perform the work and provide the services in accordance with the requirements of the Scope of Services. For conflicts between this Agreement and the Scope of Services, unless specifically provided otherwise, the Agreement governs. 4. Payment: City agrees to pay Contractor the amount specified in the Scope of Services attached hereto as Exhibit A. Any alteration or deviation from the described services that involves additional costs above the Agreement amount will be performed by Contractor after written request by the City and will become an additional charge over and above the amount listed in the Scope of Services. The City must agree in writing upon any additional charges. 5. Contractor’s Representations: To induce City to enter into this Agreement, Contractor makes the following representations: a. Contractor has familiarized itself with the nature and extent of this Agreement, the Scope of Services, and with all local conditions and federal, state and local laws, ordinances, rules, 115 Professional Services Agreement for Engineering Review Fee Study Page 2 of 10 and regulations that in any manner may affect cost, progress or performance of the Scope of Services. b. Contractor represents and warrants to City that it has the experience and ability to perform the services required by this Agreement; that it will perform the services in a professional, competent and timely manner and with diligence and skill; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this warranty. 6. Independent Contractor Status/Labor Relations: The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, Montana Code Annotated (MCA), and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue at no additional cost to City. Contractor shall indemnify, defend, and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in 116 Professional Services Agreement for Engineering Review Fee Study Page 3 of 10 connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes. 7. Indemnity/Waiver of Claims/Insurance: For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; or (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents. For the professional services rendered, to the fullest extent permitted by law, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the negligence or intentional misconduct of the Contractor or Contractor’s agents or employees. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the City as indemnitee(s) which would otherwise exist as to such indemnitee(s). Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. Should the City be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor’s applicable insurance policies required below, the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. In the event of an action filed against the City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. Contractor also waives any and all claims and recourse against the City, including the right of 117 Professional Services Agreement for Engineering Review Fee Study Page 4 of 10 contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for [City’s] own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. These obligations shall survive termination of this Agreement and the services performed hereunder. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in this Section. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City. Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows: • Workers’ Compensation – statutory; • Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; • Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; • Automobile Liability - $1,000,000 property damage/bodily injury per accident; and • Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate. The above amounts shall be exclusive of defense costs. The City shall be endorsed as an additional or named insured on a primary non-contributory basis on the Commercial General, Employer’s Liability, and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non-renewal. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. 118 Professional Services Agreement for Engineering Review Fee Study Page 5 of 10 8. Termination for Contractor’s Fault: a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, the City may, by written notice, terminate this Agreement and the Contractor’s right to proceed with all or any part of the work (“Termination Notice Due to Contractor’s Fault”). The City may then take over the work and complete it, either with its own resources or by re-letting the contract to any other third party. b. City shall give Contractor written notice and an opportunity to cure before this Agreement is terminated for performance. c. In the event of a termination pursuant to this Section 8, Contractor shall be entitled to payment only for those services Contractor actually rendered. d. Any termination provided for by this Section 8 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. e. In the event of termination under this Section 8, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 9. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease performance under this Agreement, the City may terminate this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease performance under this Agreement and make every reasonable effort to refrain from continuing work, incurring additional expenses or costs under this Agreement and shall immediately cancel all existing orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as may be necessary to preserve, protect, and maintain work already completed or immediately in progress. 119 Professional Services Agreement for Engineering Review Fee Study Page 6 of 10 c. In the event of a termination pursuant to this Section 9, Contractor is entitled to payment only for those services Contractor actually rendered on or before the receipt of the Notice of Termination for City’s Convenience. d. The compensation described in Section 9(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 10. Limitation on Contractor’s Damages; Time for Asserting Claim: a. In the event of a claim for damages by Contractor under this Agreement, Contractor’s damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. b. In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 11. Representatives and Notices: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be Shawn Kohtz, City Engineer or such other individual as City shall designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission shall be directed to the City’s Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, Contractor may direct its communication or submission to other designated City personnel or agents as designated by the City in writing and may receive approvals or authorization from such persons. b. Contractor’s Representative: The Contractor’s Representative for the purpose of this Agreement shall be Kevin Price, Project Principal or such other individual as 120 Professional Services Agreement for Engineering Review Fee Study Page 7 of 10 Contractor shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed to Contractor’s Representative; provided, however, that in exigent circumstances when Contractor’s Representative is not available, City may direct its direction or communication to other designated Contractor personnel or agents. c. Notices: All notices required by this Agreement shall be in writing and shall be provided to the Representatives named in this Section. Notices shall be deemed given when delivered, if delivered by courier to Party’s address shown above during normal business hours of the recipient; or when sent, if sent by email or fax (with a successful transmission report) to the email address or fax number provided by the Party’s Representative; or on the fifth business day following mailing, if mailed by ordinary mail to the address shown above, postage prepaid. 12. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 13. Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 15. Nondiscrimination and Equal Pay: The Contractor agrees that all hiring by Contractor of persons performing this Agreement shall be on the basis of merit and qualifications. The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. Contractor represents it is, and for the term of this Agreement will be, in compliance with the 121 Professional Services Agreement for Engineering Review Fee Study Page 8 of 10 requirements of the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act). Contractor must report to the City any violations of the Montana Equal Pay Act that Contractor has been found guilty of within 60 days of such finding for violations occurring during the term of this Agreement. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 16. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing its employees and agents in safe work practices. 17. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of the City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 18. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 19. 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 122 Professional Services Agreement for Engineering Review Fee Study Page 9 of 10 or conditions or to pursue any available legal or equitable rights in the event of any subsequent default or breach. 20. 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. 21. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 22. 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. 23. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 24. 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. 25. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 26. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 27. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 123 Professional Services Agreement for Engineering Review Fee Study Page 10 of 10 28. 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. 29. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 30. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained herein or made a part thereof by reference, are not binding upon the parties. There are no understandings between the parties other than as set forth in this Agreement. All communications, either verbal or written, made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 31. 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 **** IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written or as recorded in an electronic signature. CITY OF BOZEMAN, MONTANA BERRYDUNN CONTRACTOR By By Jeff Mihelich, City Manager Kevin Price, Project Principal Print Name: Print Title: APPROVED AS TO FORM: By Greg Sullivan, Bozeman City Attorney 124 berrydunn.com PROPOSAL City of Bozeman Engineering Review Fee Study BerryDunn 2211 Congress Street Portland, ME 04102-1955 207.541.2200 Kevin Price, Project Principal kprice@berrydunn.com Jesse Myott, Project Manager jmyott@berrydunn.com Proposal Submitted On: May 25, 2023 before 4 p.m. 125 Table of Contents | i May 25, 2023 City of Bozeman Engineering Division Attn: Marcy Yeykal P.O. Box 1230 Bozeman, MT 59771 Submitted via email to myeykal@bozeman.net Dear Marcy Yeykal: On behalf of Berry, Dunn, McNeil & Parker, LLC (BerryDunn), thank you for the opportunity to submit this proposal in response to the City of Bozeman's (COB’s) Request for Proposals (RFP) for an Engineering Review Fee Study. We value COB as an existing client, having supported multiple projects, including an effort to assist with a community development fee study and a recreation cost of service analysis. We appreciate this opportunity to support COB in a new capacity and will leverage our existing relationship to maximize project efficiencies. BerryDunn is a nationally recognized independent management and IT firm, headquartered in Portland, Maine with nine office locations nationally. Focused on inspiring organizations to transform and innovate, we are a stable and well-established firm that has preserved our core values and reputation for excellence throughout our 49-year history. We have enjoyed steady growth by providing consistent, high- quality services to our clients in all 50 states, Puerto Rico, and Canada. We have a dedicated Local Government Practice Group that works with public-sector organizations like COB to calculate and assess the costs of providing services to their constituents and commercial partners. Our Community Development and Utility Operations Practice focuses exclusively on services such as engineering, public works, planning, permitting, inspections, code enforcement, licensing, asset management, and work orders. As COB seeks to reevaluate the fees collected by Transportation and Engineering Department Staff (the Department), BerryDunn will help establish a solid foundation for understanding COB’s cost to provide services and help ensure associated fees for services reflect the appropriate level in relation to the full cost to provide the service. As a result of the breadth and depth of our experience, we bring unique insights related to reviewing user fees for services like those in-scope for COB and can effectively drive project success on COB’s requested effort. As a principal in our Local Government Practice Group, I am authorized to bind BerryDunn to the commitments made herein. We have read the RFP and understand the conditions it contains. Our proposal is a firm and irrevocable offer valid for 120 days following the submission deadline of May 25, 2023. If you have any questions regarding our proposal or updates during the evaluation process, please consider me the City's primary point of contact and contact me directly. Sincerely, Kevin Price, MPP, PMP®, Prosci® CCP 2211 Congress Street ǀ Portland, ME 04102 207-541-2379 ǀ kprice@berrydunn.com 126 Table of Contents | i Table of Contents 1. Firm Overview ......................................................................................................................................... 1 2. Relevant Experience ............................................................................................................................... 2 2.1. Local Government Finance from Multiple Perspectives .................................................................... 2 2.2. References ......................................................................................................................................... 3 3. Project Methodology and Approach ..................................................................................................... 5 3.1. Understanding COB’s Needs ............................................................................................................. 5 3.2. Project Management Methodologies ................................................................................................. 5 3.3. Work Plan ........................................................................................................................................... 7 4. Project Team .......................................................................................................................................... 12 4.1. Roles, Responsibilities, and Qualifications ...................................................................................... 12 5. Project Budget and Schedule .............................................................................................................. 14 5.1. Anticipated Schedule ....................................................................................................................... 14 5.2. Proposed Budget ............................................................................................................................. 15 Appendix A. Resumes .............................................................................................................................. 16 Appendix B. Required Forms................................................................................................................... 20 127 Firm Overview | 1 1. Firm Overview BerryDunn is a nationally recognized independent management and IT consulting firm focused on inspiring organizations to transform and innovate. As a Limited Liability Company formed in 1974 with 54 principals and 29 owners, BerryDunn employs more than 800 staff across nine offices. Our Consulting Services Team has been serving state, local, and quasi-governmental agencies for over 30 years and includes more than 300 staff members. From extensive project experience for more than 400 state, local, and quasi-governmental agencies—including COB— our team brings valuable perspectives to every engagement. Our firm provides a full range of professional services that supports our ability to complete tasks outlined by COB on this initiative. These include: • Cost of Service and Fee Studies • Business Process Improvement, Reviews, and Redesign • Comprehensive/Master Planning • Enterprise and Departmental Strategic Planning • IT Assessments • IT Strategic Planning • Leadership and Organization Development • Organizational, Operational, and Staffing Analyses • Organizational Change Management • Performance Analyses • Project Assessments and Remediation • Software Planning and Procurement • Software Implementation Project Management and Oversight Additionally, our team members have prior experience leading state and local government agencies, providing them with an in-depth understanding of government operations, staffing needs, budgetary constraints, and the business processes required to provide necessary services to the internal divisions and the constituents COB serves. Figure 2 illustrates the overall organization of BerryDunn's Local Government Practice Group. We provide unparalleled expertise and unique insights across these practices, supporting our clients in solving some of their biggest challenges and addressing opportunities to improve and plan. Figure 2: Local Government Practice Group Specialization As mentioned, BerryDunn’s Community Development and Utility Operations Practice will serve COB on this initiative. This practice focuses on municipal and county policies, processes, fees, and systems related to engineering, public works, planning, zoning, permitting, inspections, development services, code enforcement, land management, work order, and asset management functions and is composed of industry experts with both firsthand and project experience. We proudly tailor our projects to recognize the work our clients do every day. We care about what we do, and we care about the people impacted by our work. 128 Relevant Experience | 2 2. Relevant Experience 2.1. Local Government Finance from Multiple Perspectives In Table 1, we provide a representative sample our team’s experience conducting fee study, cost recovery, and cost allocation planning projects for various local government departments across the country. This well-rounded perspective will bring value to COB as it strategically plans for the coming years. BerryDunn’s holistic approach will center both COB personnel and the constituents it serves. Table 1: Sample Experience of Services Provided Across Departments Department/Service Area Client Work Performed Community Development and Utility Operations Alachua County, FL Building and Fire Permit Fee Study City of Bozeman, MT Community Development Fee Review Study City of Gainesville, FL Building Permit Fee Study City of Gainesville, FL Fee Schedule Update City of Dallas, TX Comparative Building Permit Fee Study City of Fernandina Beach, FL Building Division Fee Study City of Homestead, FL Workflow and Comparative Fee Analysis City of Largo, FL Building Permit Fee Study City of Tucson, AZ Cost of Service Study and Fee Schedule Redesign Manatee County, FL Building and Development Services Fee Study Sonoma County, CA Fee and Cost Recovery Peer Comparison Town of Longboat Key, FL Comprehensive Fee Study Town of Smithfield, RI Water Rate Study Town of Smithfield, RI Sewer Rate Study Travis County, TX Development Review Process and Fee Study IT City of Irving, TX IT Department Cost Allocation Plan Citywide City of Villa Park, CA Fee and Rates Charges Study Parks and Recreation City of Bozeman, MT Recreation Cost of Service Study City of Cape Coral, FL Comprehensive Fee Study 129 Relevant Experience | 3 Department/Service Area Client Work Performed City of Jefferson City, MO Cost Recovery Study/Plan City of Ferguson, MO Cost of Service Analysis City of Grapevine, TX Cost Recovery, Fee Study, and Resource Allocation Plan City of Lynchburg, VA Cost of Service Analysis City of Mesa, AZ Cost of Service Analysis City of Mobile, AL Cost Recovery Analysis City of Gilbert, AZ Parks and Recreation Master Plan City of Raleigh, NC Cost of Service Analysis and Fee Study City of Sanibel Island, FL Cost of Service Analysis City of Tampa, FL Fiscal Analysis City of University Park, TX Cost of Service Consulting Granville County, NC Parks and Grounds Cost of Service Analysis Howard County, MD Fiscal Analysis Jackson County, MS Cost of Service Analysis Town of Amherst, MA Cost Recovery and Fee Analysis Town of Crestwood, CO Cost of Service Analysis Town of Queen Creek, AZ Cost of Service Analysis and Fee Study 2.2. References Below and on the following page, we provide reference information for several clients who can speak to the quality and satisfaction we deliver on comparable engagements. Travis County, Texas Anna Bowlin, Division Director of Development Services 941-748-4501 | anna.bowlin@traviscountytx.gov Development Review Process, Cost of Service Analysis and Fee Study 12/2020 – 01/2022 Travis County partnered with BerryDunn to review fees and charges and associated revenues and expenses for each permit and service listed on the Division’s master fee schedule. The focus of the project was to review all revenue generated from fees for permits and services provided by 130 Relevant Experience | 4 the Division and the identified expenses associated with providing all Division services. This review allowed the County to make informed policy decisions at the aggregate level, as well as on each individual permit or service regarding fee levels and revenue generation. City of Tucson, Arizona Lynne Birkinbine, Deputy Director of Planning and Development Services 520-837-3708 ǀ lynne.birkinbine@tucsonaz.gov Planning and Development Services Department Cost of Service Study 07/2017 – 07/2022 BerryDunn has been working with the City of Tucson since December 2017, beginning with the community development system selection project. Following selection of the preferred software system, EnerGov, we conducted a cost of service study focused on the City’s Planning and Development Services Department, Department of Transportation, Building Department, and Fire Department. The City of Tucson partnered with BerryDunn to conduct a Planning and Development Services Department Cost of Service Analysis project. The focus of the project is reviewing all revenue generated from fees for permits and services provided by the Department and the identified expenses associated with providing all Department services. City of Gainesville, Florida John Freeland, Building Official 352-393-8640 | freelandjc@cityofgainesville.org Department of Sustainable Development Cost of Service and Fee Study 01/2021 – 06/2022 The City of Gainesville engaged BerryDunn to provide support with updating the methodology used to calculate building permit fees, land development fees, and other related services provided by the Department of Sustainable Development’s Building and Planning Divisions, and to perform a full cost analysis to help ensure the City is recovering the full cost for providing these services. We reviewed services, such as building permit and land development intake, build plan review, building construction inspections, development plan reviews, zoning reviews and inspections, land reviews and inspections, and processing of other applications to accurately and reasonably allocate available financial and personnel resources to the services provided. BerryDunn compiled findings in a final report and cost model. Findings and recommendations were successfully presented to the City Manager, Builders Association of North-Central Florida, and the City Commission. Subsequently, the City engaged BerryDunn to utilize the cost of service findings to develop and propose and updated master fee schedules to be adopted. The City Commission adopted the updated fee schedules in June of 2022. 131 Project Methodology and Approach | 5 3. Project Methodology and Approach 3.1. Understanding COB’s Needs Bozeman is a full-service City, affectionately known in the area as “the most livable place.” Characterized by its plethora of recreational activities and picturesque mountains, Bozeman is home to approximately 55,000 residents, several hundred of whom are COB employees. As this time, COB seeks a qualified consultant to determine the cost to provide various engineering services; identify the efficiency of current cost recovery levels; and recommend methodologies and fee changes necessary to achieve cost recovery now and in future years. This is where BerryDunn comes in. Our approach to conducting comprehensive cost of service and fee studies is rooted in developing a thorough understanding of the processes and personnel currently utilized by specified departments. Using this data and insight, we will develop a detailed cost model that identifies, calculates, totals, and allocates allowable direct and indirect costs to all applicable services. We then recommend methodologies for calculating fees and the amount of each fee. Additionally, we will leverage our knowledge and experience with COB and our process improvement expertise to determine the strengths and weaknesses of current service processes. We will interview select staff and stakeholders as directed—examples of which could be customers, residents, businesses, and community members—and consider data such as key functions, process flows, time frames, and duplicative functions. We will then provide recommended improvements. We will prepare both a Fee Study Report and Fee Study Model in draft form and solicit input from COB before updating the report and model to final. We will then present our report and cost model findings to select COB staff, select external stakeholders, and the City Council as directed. We find this presentation approach allows an opportunity for staff, stakeholders, and Council members to ask any final questions, provide additional feedback, and establish a higher level of buy-in, helping ensure the long-term success and adoption of the fee study recommendations. We understand what is being requested by COB and agree to provide the services necessary to achieve the goals and objectives of this project. 3.2. Project Management Methodologies To help ensure that project objectives are met, and initiation and completion of project work are conducted in a timely manner, each BerryDunn project is led by an experienced project manager who understands and utilizes project management best practices. In terms of COB’s project, Jesse Myott will lead the requested work effort. Jesse has served as project manager for numerous fee study projects, including our prior work with the City, and will help ensure the success of the City’s in-scope engagement. Our Consulting Services Team employs project management best practices from PMI®’s A Guide to the Project Management Body of Knowledge Guide (PMBOK® Guide), Version Seven. Figure 3, on the following page, illustrates the standards of project management as defined by performance domains and project delivery principles that are critical for effective delivery of project outcomes. 132 Project Methodology and Approach | 6 Figure 3: Project Management Life Cycle Change Management Methodology Stakeholders’ willingness to adopt new processes and tools plays a significant role in the success—or failure—of fee study projects. BerryDunn has observed resistance to change in virtually all our engagements. As such, our project management approach is carefully integrated with change management methodologies to promote buy-in and consensus for the project, and we will work with you to proactively address resistance by: • Engaging stakeholders at the right level throughout the project—from initial planning through implementation—to build understanding for the need for change and gain support from the people who will be using the future solutions and who are most familiar with current processes • Developing and executing a communications plan that considers the information needs of each stakeholder group • Documenting business processes and working with stakeholders to understand how their work will be performed in the future environment We have adopted the Prosci® change management methodology and trained over 100 consultants to become Prosci® Certified Change Practitioners (CCPs), including our proposed principal and project manager. A central focus of the Prosci® change management approach is the belief that, for change to work in an organization, individuals must be willing to change and understand change. Additionally, according to research conducted by Prosci®, the likelihood of project success increases significantly and in alignment with the level of change management focus applied to the project. 133 Project Methodology and Approach | 7 3.3. Work Plan BerryDunn strives to be flexible when it comes to developing and executing an effective work plan. We understand that no two projects are exactly alike, and our past clients have appreciated our willingness to adapt to their needs. This mindset plays a foundational role in how we measure the success of our portfolio of similar projects. Our approach to preparing COB’s fee study is outlined below and designed to incorporate consistent project management best practices with each of COB’s key deliverables and tasks. Our intent is to work with staff to help ensure we make the best use of your time. Ultimately, consistent collaboration can help promote buy-in and understanding for final recommendations. You can expect our approach to include the following attributes: • A methodology based on our extensive experience conducting similar cost of service, cost recovery, and fee studies • Quality assurance processes that incorporate COB review and approval of all deliverables • Built-in project management best practices that focus on keeping the project on time, on budget, and progressing at a healthy pace for COB stakeholders to give input in the information gathering and fact-finding process and understand final recommendations Figure 4 presents an overview of our proposed approach to completing COB’s desired scope of work. Figure 4: BerryDunn's Proposed Approach Below and on the following pages, we present a detailed breakdown of our approach to conduct the requested fee study. BerryDunn strives to be flexible when it comes to developing and executing an effective project plan. We understand that no two projects are exactly alike, and our past clients have appreciated our willingness to adapt to their needs. PHASE 0 Project Initiation and Management To establish a strong foundation for the project and help ensure a high-level of quality and communication throughout the engagement, we will utilize project management best practices based on PMI®’s PMBOK® Guide and our experience conducting similar projects with municipal and county engineering, building and development, and public works departments throughout the country. COB can expect our team to complete the following project activities: 134 Project Methodology and Approach | 8 PHASE 0 Project Initiation and Management  Thorough project planning, including an initial planning teleconference between BerryDunn’s team and applicable staff to confirm project goals, objectives, and expectations  Virtual kickoff meeting; following the initial planning call, we will conduct a virtual kickoff meeting with COB’s project team and identified stakeholders to discuss in greater detail the relationship of the current fees and charges environment, current cost recovery levels and targets, and current citywide goals and initiatives  Development of a detailed Project Work Plan and Schedule reflecting our proposal. Based on the information gathered from our initial project planning call and virtual/on-site kickoff meeting (most effective approach to be determined in conjunction with COB’s project team), we will develop the Project Work Plan and Schedule. This will outline the tasks, timelines, and identified milestones  Documentation and data review, including but not limited to current fee schedules, lists of existing permit and service types and annual volume, revenue and expenditure budgets and reports, detailed revenue reports by permit or service type, organizational chart(s) and staffing rosters, personnel salary and benefit data, and other documentation deemed important to the study  Biweekly Project Status Meetings, which will describe activities and accomplishments for the reporting period, risk mitigation, deliverable reviews, scheduling discussions, and more Deliverable 1: Project Work Plan and Schedule Deliverable 2: Biweekly Project Status Updates PHASE 1 Cost of Service Analysis and Fee Analysis During Phase 1, our project team will interview staff and stakeholders virtually and review applicable fee schedules and budgets. We will use this information to assess Engineering and Public Works Support Services related to the Department’s current fees and charges environment. We will examine the customer service culture, perform a personnel analysis, and develop an initial cost model. Our goal will be to identify key direct and indirect resources related to Department service delivery. We will then project cost recovery per applicable division, per service category, and where applicable for each specific service the Department provides. We will develop recommendations and recommend fees consistent with identified revenue requirements and cost recovery targets established in conjunction with staff and stakeholders. COB can expect our team to complete the following project activities:  Interview staff and stakeholders virtually  Review applicable fee schedules  Review applicable operating and capital budgets  Review revenue and expenditure reports (actuals) 135 Project Methodology and Approach | 9 PHASE 1 Cost of Service Analysis and Fee Analysis  Perform a personnel review  Project the full cost for providing services  Project the full cost for providing services by specific department/division, service category, and/or specific service  Recommend methodologies for calculating fees and the amount of each fee to satisfy revenue requirements and cost recovery targets  Recommend where it is not feasible to recover the full cost of providing a service and also identify those instances where full cost recovery is attainable  Recommend fee for services the Department is currently providing but for which no fee is currently assessed Figure 5, below, provides an overview of the information our project team will gather and how that will funnel into a cost model to determine cost of services. Figure 5 may not be inclusive of, or applicable to, all information reviewed and analyzed. Figure 5: Cost of Service Graphic Deliverable 3: Cost of Service Analysis and Fee Study PHASE 2 Recommendations, Fee Schedule Structure Considerations, and Peer Comparisons Utilizing the Cost of Service Analysis and Fee Study developed in Phase 1, our project team will identify and prioritize necessary changes to fee calculation methodologies and fee schedule structure and cost allocations, develop initial recommendations, and outline any additional, applicable areas 136 Project Methodology and Approach | 10 PHASE 2 Recommendations, Fee Schedule Structure Considerations, and Peer Comparisons where improvements should be considered. We will review findings, priorities, and recommendations with internal and external stakeholders during two virtual workshops. COB can expect our team to complete the following project activities:  Facilitate virtual workshops  Validate fee schedule structure, fee calculation methodology, and full-cost allocation methodology  Where appropriate, demonstrate best practices and methodologies related to service delivery  Identify other deficiencies and areas for improvement  Develop recommendations, priorities, and implementation strategies  Provide additional consultative recommendations  Survey up to five comparable cities/counties/towns to assess current and recommended fee levels, fee structure, service delivery structure, workloads and service volumes, and the fiscal environments related to similar core services peers provide. Deliverable 4: Recommendations, Fee Schedule Structure Considerations, and Peer Comparisons PHASE 3 Draft Findings and Recommendations We will prepare a Draft Cost of Service and Fee Study Report, which we will share with staff and applicable stakeholders as directed. We will solicit feedback and discuss, document, and include desired modifications. We find that by sharing our initial findings and report with staff and stakeholders, we can establish consensus, build buy-in, and promote the long-term success of the recommendations and changes. Additionally, we will provide COB with the draft cost of service model in an easily accessible Microsoft Excel format. COB can expect our draft findings and recommendations to include the following:  Full-cost analysis and fee study findings related to the current fiscal and service environment  Revenue and expense allocations to services related to the current fiscal and service environment  Revenue requirement estimates and revenue projections for three fiscal years  Expense requirement estimates and expense projections for three fiscal years  Cost recovery targets  Fee design and calculation recommendations  Updated fee schedule(s) – structure and levels where applicable  Our review, analysis, and development of full-cost allocations for projected direct and indirect costs related to internal service delivery  Additional, applicable findings and recommendations Deliverable 5: Draft Cost of Service and Fee Study Report 137 Project Methodology and Approach | 11 PHASE 4 Final Findings and Recommendations As final project closeout and knowledge sharing activities, we will apply edits to the Final Cost of Service and Fee Study Report, incorporating COB’s feedback. We will review final project deliverables with staff and applicable stakeholders virtually, as directed. We find that involving staff in preparation of the final documents helps to transfer knowledge and helps ensure the successful implementation of the final recommendations. COB can expect our team to complete the following project activities:  Update the Cost of Service and Fee Study Report and Cost of Service and Cost Allocation Model to final  Provide a single PDF file of the report and Microsoft Excel version of the cost model  Provide training to Department staff on the use of cost allocation model so that staff can independently update the model in subsequent years as needed  Optional: Present final project deliverables to the Department  Optional: Present final project deliverables to the City Council if desired Deliverable 6: Final Cost of Service and Fee Study Report Deliverable 7: Final Cost of Service and Cost Allocation Model Deliverable 8: Final Presentations (Optional) 138 Project Team | 12 4. Project Team Our team members bring valuable perspectives from their experiences providing project planning, project management, business process improvement services, fee studies, and more. Figure 6 illustrates our team organization and leadership. Figure 6: BerryDunn Team Organization 4.1. Roles, Responsibilities, and Qualifications Below and on the following pages, we provide details of our project team members’ roles, responsibilities, and qualifications as it relates to COB’s requested services. Our project team members’ full resumes are included in Appendix A for COB’s further review and consideration. Kevin Price, MPP, PMP®, Prosci® CCP | Project Principal Kevin is a principal in our Local Government Practice Group. He leads our Community Development and Utility Operations Practice, assisting local government clients with fee analysis, business process improvement, system selection, and implementation projects. He also leads our Technology Management Practice focused on assisting local government clients with IT assessments and strategic planning projects. A certified Project Management Professional® (PMP®), Kevin has extensive experience in assessing the business needs and processes of municipal clients for permitting, inspections, planning, code enforcement, and land management functions. Kevin is also a Lean Six Sigma Green Belt, allowing him to continuously define, measure, analyze, improve, and control projects and environments for his clients. Further, Kevin has experience working with COB on a fee review study. As the project principal, Kevin will:  Have overall responsibility for the services we have proposed to COB  Help ensure the commitment of our firm and appropriate resource allocation  Review and approve all deliverables in accordance with BerryDunn’s quality assurance processes 139 Project Team | 13 Jesse Myott, MA | Project Manager Jesse is a manager in our Local Government Practice Group. He has over a decade of public-sector experience, focusing on supporting local governments with operating and capital improvement budget development and management; special fund accounting, revenue and expenditure forecasting; customer valuation; and cost of revenue analyses for municipal programs and services. Jesse has led multiple cost of service and cost allocation projects for local governments from California to Massachusetts and has conducted fee studies for community development departments in COB as well as the Cities of Fernandina Beach, Largo, and Gainesville, Florida, and Travis County, Texas. As the project manager, Jesse will:  Build and maintain a productive relationship with COB  Serve as COB’s primary point of contact  Lead our work and perform day-to-day project management and staff oversight  Lead the analysis and development of project deliverables  Develop and maintain the Project Work Plan and Schedule  Provide subject matter expertise Fred Turnier, MPA, AICP, Prosci® CCP | Subject Matter Expert Fred is a manager in BerryDunn’s Local Government Practice Group. He is an AICP- certified former community development director and city planner. He has more than 25 years of experience working with local government agencies on projects related to fee studies, cost recovery analyses, business process improvement, policy analysis and development, and system design and implementation. He provided similar fee study services to COB, as well as the City of Tucson, Arizona; City of Dallas, Texas; the City of Fernandina Beach, Florida; and Town of Longboat Key, Florida. As the subject matter expert, Fred will:  Leverage his experience as a municipal community development director and knowledge of fee study and cost recovery best practices to provide expertise on in-scope services and assessment of fees. Davianna Humble | Business Analyst Davianna is a consultant in our Local Government Practice Group and an expert in public sector budgeting and management analysis. In prior public sector roles, she has managed $1 billion operating and $400 million capital budgets, reviewed funding requests, helped ensure funds were used in alignment with established strategies and expected outcomes, and provided programmatic counsel and analytical support to assist various departments. Davianna applies a solutions- oriented, customer-focused lens to all her work and is skilled at conveying budgeting recommendations to leadership and community members. As the business analyst, Davianna will:  Support the development of project deliverables  Lead the review of existing documents and data  Synthesize findings. 140 Project Budget and Schedule | 14 5. Project Budget and Schedule 5.1. Anticipated Schedule Table 5 presents a high-level overview of our proposed 10-week project schedule. We are happy to adjust this schedule to best accommodate the City’s needs, as appropriate. Table 5: BerryDunn’s Proposed Timeline Phase / Week 1 2 3 4 Phase 0: Project Initiation and Management  Initial meeting to refine scope ● Phase 1: Cost of Service Analysis and Fee Analysis  Staff interviews ● ● ● Phase 2: Recommendations, Fee Schedule Structure Considerations, and Peer Comparisons  Staff interviews ● Phase 3: Draft Findings and Recommendations  Initial draft of fee study report ● Phase 4: Findings, Recommendations, and Presentation  Final draft of fee study report, council presentation, revisions, staff training ● 141 Project Budget and Schedule | 15 5.2. Proposed Budget Our proposed fixed fee to complete our proposed work plan is broken down by phase in Table 2. We welcome the opportunity to review these costs based upon any feedback related to our work plan. Our fees are based on our experience conducting projects of similar size and scope, and the assumption that satisfying a deliverable is based on COB’s signed acceptance. We have proposed to complete this project virtually. If on-site trips are required, we will bill COB for travel expenses as incurred. Table 2: BerryDunn’s Proposed Fees by Phase and Deliverable Phase Cost Phase 0: Project Initiation and Management $2,940 Phase 1: Cost of Service Analysis and Fee Analysis $3,675 Phase 2: Recommendations, Fee Schedule Structure Considerations, and Peer Comparisons $2,940 Phase 3: Draft Findings and Recommendations $1,470 Phase 4: Final Findings and Recommendations $1,960 Proposed Cost $12,985 *Estimated Travel $1,800 *Travel will only be billed as incurred 142 Appendix A. Resumes | 16 Appendix A. Resumes Kevin Price, MPP, PMP®, Prosci® CCP Project Principal Kevin is a principal in BerryDunn’s Local Government Practice Group. He leads our CDUO Practice, assisting local government clients with fee study, business process improvement, system selection, and system implementation projects. Relevant Experience Fee Studies: Kevin has assisted BerryDunn clients with cost of service and comparative fee analysis projects. Kevin previously led a fee review study project with COB. He is currently serving as the Project Principal for our cost of service fee study for Alachua County, Florida. Process Analysis and Improvement: Kevin has assisted BerryDunn clients with process improvement projects as part of system replacement projects and as standalone projects. Kevin has previously led the process improvement projects with the Cities of Rockville, Maryland; Alexandria, Virginia; Philadelphia, Pennsylvania; and Frisco, Texas. Project Management: Kevin has managed projects for some of BerryDunn’s most complex local government clients. He previously managed BerryDunn’s Municipal Street Addressing and Right-of- Way Permitting and Code Violation System Assessment Projects for the City of Philadelphia and the Comparative Fee Analysis Project for the City of Dallas, Texas. Kevin is also overseeing our current system selection project with the City’s Housing and Revitalization Department. Selected Local Government Clients • City of Beaverton, OR • City of Boca Raton, FL • City of Bozeman, MT • City of Dallas, TX • City of Detroit, MI • City of Farmers Branch, TX • City of Fernandina Beach, FL • City of Fredericksburg, VA • City of Frisco, TX • City of Gainesville, FL • City of Grand Prairie, TX • City of Irvine, CA • City of Philadelphia, PA • City of Plano, TX • City of Tucson, AZ • City of Wilmington, NC • Lake County, IL • Outagamie County, WI • Scott County, IA • Travis County, TX • Town of Longboat Key, FL Education and Memberships Master’s in Public Policy and Management, Concentration in Financial Management, University of Southern Maine BA, Economics and Political Science, University of Maine Project Management Professional® (PMP®), Project Management Institute® Prosci® Certified Change Practitioner Lean Six Sigma Green Belt Certified City of Westbrook, ME Planning Board – Member, 2023 – 2024 City of Westbrook, ME Sewer Commission – Member, 2021 – 2023 143 Appendix A. Resumes | 17 Jesse Myott, MA Project Manager Jesse is a manager in our Local Government Practice Group. He brings over a decade of public-sector experience, focusing on supporting local governments with operating and capital improvement budget development and management; special fund accounting, revenue and expenditure forecasting; customer valuation; and cost of revenue analyses for public-sector programs and services. Jesse has led multiple cost of service and fee study projects for local governments across the country. Relevant Experience Fee Studies: Jesse has authored highly complex and sensitive fee studies, created detailed subsidy analyses, and developed cost recovery models as well as water and sewer rate setting models for a number of municipalities across the country, most recently for Travis County, Texas, Tucson, Arizona, and Gainesville and Largo, Florida. Jesse also worked with COB on a fee study review project. Business Process Analysis: Jesse is an experienced municipal finance and management professional with over a decade of experience serving in many areas of local government both as an analyst and in senior management roles. His municipal business process knowledge extends through city administration, public works, water delivery and waste collection services, solid waste collection, public safety, economic development and redevelopment, library and recreation services, human resources, capital improvement program development, facility planning, compensation and benefits analysis, and citywide operating budget planning, monitoring and delivery. Finance: Jesse brings over a decade of public-sector experience. In addition to being an adept municipal finance professional, Jesse is particularly accomplished in the areas of public works and engineering budget development and delivery as well as capital improvement project budget development and delivery. Utilities Operations: Jesse has years of utility operations experience, specifically in the area of water and sewer utility management: operating and capital improvement budget development and delivery, rate setting, water distribution infrastructure finance planning and collection infrastructure finance planning. Select Local Government Clients • City of Bozeman, MT • City of Cape Coral, FL • City of Fernandina Beach, FL • City of Gainesville, FL • City of Largo, FL • Manatee County, FL • City of Villa Park, CA • Hamilton County, IN • Tucson, AZ • Travis County, TX Education and Memberships AS, Champlain College BA, History, University of Rhode Island MA, History, San Francisco State University California Society of Municipal Finance Officers (CSMFO) (former) Municipal Management Association of Northern California (MMANC) (former) Presentations Massachusetts Recreation and Park Association (MRPA) Annual Conference Speaker 2015 – Cost Recovery Methods 144 Appendix A. Resumes | 18 Fred Turnier, MPA, AICP, Prosci® CCP Subject Matter Expert Fred is a manager with more than 25 years of experience working with local government agencies and extensive experience assisting public-sector entities with project management and development services, business process improvement, fee and cost recovery analysis, system design and implementation, and policy analysis and formation. He focuses in the areas of community development, planning, building, inspections, code enforcement, business licensing, housing and homelessness issues, land management, utilities, and infrastructure planning. Relevant Experience Fee Studies: Fred has worked with several local government building and development departments to help determine their true cost of service. He has provided services similar to those requested for the City of Bozeman, Montana; City of Tucson, Arizona; City of Fernandina Beach, Florida; City of Dallas, Texas; and the Town of Longboat Key, Florida. Community Development: Fred’s extensive background in local government community development leadership positions affords him knowledge of technology, best practices, and common challenges in the field. He has served as community development or planning director for multiple cities, including Reno and Fernley, Nevada. His background includes technical and management oversight of planning, building, code enforcement, business licensing, code enforcement, inspections, housing programs, and homeless services. Business Process Improvement: Fred has extensive experience providing business process improvement services across many departments, including public works and parks and recreation. Many projects involve identifying business processes that overlap departments, services, classifications/ compensations for staff, and performance metrics. Fred has helped to identify efficiencies and best management practices, including written workflow assessments, performance metrics identification, and long- and short-term improvement recommendations development. Selected Local Government Clients • City of Beaverton, OR • City of Boca Raton, FL • City of Bozeman, MT • City of Dallas, TX • City of Fernandina Beach, FL • City of Frisco, TX • City of Irvine, CA • City of Philadelphia, PA • City of Santa Fe, NM • Pitkin County, CO • Sonoma County, CA Education and Memberships Master’s in Public Administration (MPA), University of Nevada, Las Vegas BA, Economics and Geography, University of Nevada, Reno Certified Planner, American Institute of Certified Planners (AICP) Member, American Planning Association Prosci® Certified Change Practitioner (CCP) 145 Appendix A. Resumes | 19 Davianna Humble, CSM Business Analyst Davianna is a consultant in our Local Government Practice Group and an expert in public sector budgeting and management analysis. Prior to joining BerryDunn, she worked with Wake County, North Carolina, and Douglas County, Kansas to provide programmatic counsel and analytical support to assist various departments in achieving their goals and objectives. Davianna has evaluated funding requests, provided data-driven program recommendations, monitored $1 billion operating and $400 million capital budgets, and helped ensure funds were used in alignment with established strategies and expected outcomes. Relevant Experience Business Analysis: As a management analyst, Davianna has assisted and collaborated with various departments—ranging from public safety to parks and libraries—to provide analytical support and data-driven, customer-focused recommendations. She has tracked local, state, and federal policies to evaluate their impact on operations and to ensure compliance with external laws and regulations, and she is skilled at developing persuasive written and oral communication to convey analysis and recommendations. Budgeting: Davianna’s experience includes evaluating funding and program requests for operating and capital budgets, developing alternatives in collaboration with department staff, and recommending prioritized strategic options through an annual budget development process. She was responsible for $1 billion in operating and $400 million in capital budgets and worked with multiple departments and outside agencies to ensure appropriate distribution of funds. She is also skilled at formulating budget narratives to help convey key points and decision factors to the public. Training and Development: Davianna previously assisted in a human services building restructure initiative, which included a tenant questionnaire, remapping the facility, and creating a summary of facility costs. Additionally, she updated a handbook to orient newly elected government officials to frequently asked questions and provide pertinent contact information. Human Services: Davianna has contributed to anti-poverty workgroups aimed at developing systems-based solutions to reducing poverty and discrimination; coordinated with emergency management staff and volunteers to assess unmet resident needs after natural disasters and connect residents with resources; and published an article on efforts to address human trafficking within the State of Kansas. Education and Memberships Master of Public Administration, University of Kansas Certified ScrumMaster, Scrum Alliance 146 Quotes for 2023 Engineering Fee Study ATTACHMENT A: NON-DISCRIMINATION AFFIRMATION FORM [name of entity proposing] hereby affirms it will not discriminate 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 in the performance of work performed for the City of Bozeman, if a contract is awarded to it, and also recognizes the eventual contract, if awarded, will contain a provision prohibiting discrimination as described above and that this prohibition shall apply to the hiring and treatment of the [name of entity proposing] employees and to all subcontracts it enters into in the performance of the agreement with the City of Bozeman. Signature of Proposer: Person authorized to sign on behalf of the proposer Appendix B. Required Forms 147 Memorandum REPORT TO:City Commission FROM:John Henderson - Strategic Services Director Max Ziegler - Facilities Project Coordinator Aaron Tolhurst - Facilities Service Worker SUBJECT:Authorize the City Manager to Sign a Professional Services Agreement with Mountain Alarm - Bozeman for City Hall Security Alarm MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign a Professional Services Agreement with Mountain Alarm - Bozeman for City Hall Security Alarm. STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:The existing security and alarm system at City Hall has become obsolete and the panic button system is not longer able to be updated. To ensure the safety of city staff, the public, and the City Commission, the system must be updated to maintain reliable security coverage for the building. The new system will include two touch screen alarm panels, motion sensor capabilities, and 20 remote panic button fobs. The updated system will be more user friendly and brings additional capabilities to send email alerts to staff in the event that a panic button is activated. An automatic dialer will be installed which uses cell phone networks over phone hard lines for greater reliability. Additionally the new system will allow enhanced monitoring and remote control access. Mountain Alarm had installed our previous system, and thus were solicited to install the updated equipment. The contracted amount was under $5,000 and received directors approval. UNRESOLVED ISSUES:None at this time. ALTERNATIVES:As suggested by City Commission. FISCAL EFFECTS:The fiscal effects of this contract will total $4,829.75, which will include all materials and labor as well as one (1) year of monitoring services. Attachments: 148 PSA - City Hall Security Alarm.pdf Report compiled on: June 12, 2023 149 Professional Services Agreement for City Hall Security Alarm Page 1 of 10 PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this _____ day of ____________, 202__ (“Effective Date”), by and between the CITY OF BOZEMAN, MONTANA, a self-governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City,” and, Mountain Alarm – Bozeman, 3228 Centennial Dr., Helena, Mt 59601, hereinafter referred to as “Contractor.” The City and Contractor may be referred to individually as “Party” and collectively as “Parties.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter this Agreement with Contractor to perform for City services described in the Scope of Services attached hereto as Exhibit A and by this reference made a part hereof. 2. Term/Effective Date: This Agreement is effective upon the Effective Date and will expire on the 27th day of June, 2024, unless earlier terminated in accordance with this Agreement. 3. Scope of Services: Contractor will perform the work and provide the services in accordance with the requirements of the Scope of Services. For conflicts between this Agreement and the Scope of Services, unless specifically provided otherwise, the Agreement governs. 4. Payment: City agrees to pay Contractor the amount specified in the Scope of Services. Any alteration or deviation from the described services that involves additional costs above the Agreement amount will be performed by Contractor after written request by the City, and will become an additional charge over and above the amount listed in the Scope of Services. The City must agree in writing upon any additional charges. 5. Contractor’s Representations: To induce City to enter into this Agreement, Contractor makes the following representations: a. Contractor has familiarized itself with the nature and extent of this Agreement, the Scope of Services, and with all local conditions and federal, state and local laws, ordinances, rules, 150 Professional Services Agreement for City Hall Security Alarm Page 2 of 10 and regulations that in any manner may affect cost, progress or performance of the Scope of Services. b. Contractor represents and warrants to City that it has the experience and ability to perform the services required by this Agreement; that it will perform the services in a professional, competent and timely manner and with diligence and skill; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this warranty. 6. Independent Contractor Status/Labor Relations: The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, Montana Code Annotated (MCA), and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue at no additional cost to City. Contractor shall indemnify, defend, and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in 151 Professional Services Agreement for City Hall Security Alarm Page 3 of 10 connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes. 7. Indemnity/Waiver of Claims/Insurance: For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; or (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents. For the professional services rendered, to the fullest extent permitted by law, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the negligence or intentional misconduct of the Contractor or Contractor’s agents or employees. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the City as indemnitee(s) which would otherwise exist as to such indemnitee(s). Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. Should the City be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor’s applicable insurance policies required below, the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. In the event of an action filed against the City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. Contractor also waives any and all claims and recourse against the City, including the right of 152 Professional Services Agreement for City Hall Security Alarm Page 4 of 10 contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for [City’s] own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. These obligations shall survive termination of this Agreement and the services performed hereunder. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in this Section. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City. Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows:  Workers’ Compensation – statutory;  Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate;  Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate;  Automobile Liability - $1,000,000 property damage/bodily injury per accident; and  Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate. The above amounts shall be exclusive of defense costs. The City shall be endorsed as an additional or named insured on a primary non-contributory basis on the Commercial General, Employer’s Liability, and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non-renewal. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. 153 Professional Services Agreement for City Hall Security Alarm Page 5 of 10 8. Termination for Contractor’s Fault: a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, the City may, by written notice, terminate this Agreement and the Contractor’s right to proceed with all or any part of the work (“Termination Notice Due to Contractor’s Fault”). The City may then take over the work and complete it, either with its own resources or by re-letting the contract to any other third party. b. In the event of a termination pursuant to this Section 8, Contractor shall be entitled to payment only for those services Contractor actually rendered. c. Any termination provided for by this Section 8 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. d. In the event of termination under this Section 8, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 9. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease performance under this Agreement, the City may terminate this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease performance under this Agreement and make every reasonable effort to refrain from continuing work, incurring additional expenses or costs under this Agreement and shall immediately cancel all existing orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as may be necessary to preserve, protect, and maintain work already completed or immediately in progress. c. In the event of a termination pursuant to this Section 9, Contractor is entitled to payment only for those services Contractor actually rendered on or before the receipt of the 154 Professional Services Agreement for City Hall Security Alarm Page 6 of 10 Notice of Termination for City’s Convenience. d. The compensation described in Section 9(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 10. Limitation on Contractor’s Damages; Time for Asserting Claim: a. In the event of a claim for damages by Contractor under this Agreement, Contractor’s damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. b. In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 11. Representatives and Notices: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be Aaron Tolhurst 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. Contractor’s Representative: The Contractor’s Representative for the purpose of this Agreement shall be Jake Allen, Branch Manager or such other individual as Contractor shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed 155 Professional Services Agreement for City Hall Security Alarm Page 7 of 10 to Contractor’s Representative; provided, however, that in exigent circumstances when Contractor’s Representative is not available, City may direct its direction or communication to other designated Contractor personnel or agents. c. Notices: All notices required by this Agreement shall be in writing and shall be provided to the Representatives named in this Section. Notices shall be deemed given when delivered, if delivered by courier to Party’s address shown above during normal business hours of the recipient; or when sent, if sent by email or fax (with a successful transmission report) to the email address or fax number provided by the Party’s Representative; or on the fifth business day following mailing, if mailed by ordinary mail to the address shown above, postage prepaid. 12. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 13. Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 15. Nondiscrimination and Equal Pay: The Contractor agrees that all hiring by Contractor of persons performing this Agreement shall be on the basis of merit and qualifications. The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. Contractor represents it is, and for the term of this Agreement will be, in compliance with the requirements of the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act). 156 Professional Services Agreement for City Hall Security Alarm Page 8 of 10 Contractor must report to the City any violations of the Montana Equal Pay Act that Contractor has been found guilty of within 60 days of such finding for violations occurring during the term of this Agreement. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 16. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing its employees and agents in safe work practices. 17. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of the City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 18. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 19. 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 157 Professional Services Agreement for City Hall Security Alarm Page 9 of 10 or conditions or to pursue any available legal or equitable rights in the event of any subsequent default or breach. 20. 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. 21. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 22. 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. 23. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 24. 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. 25. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 26. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 27. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 158 Professional Services Agreement for City Hall Security Alarm Page 10 of 10 28. 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. 29. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 30. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained herein or made a part thereof by reference, are not binding upon the parties. There are no understandings between the parties other than as set forth in this Agreement. All communications, either verbal or written, made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 31. 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 **** IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written or as recorded in an electronic signature. CITY OF BOZEMAN, MONTANA ____________________________________ CONTRACTOR (Type Name Above) By________________________________ By__________________________________ Jeff Mihelich, City Manager Print Name: ___________________________ Print Title: ____________________________ APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney 159 EXHIBIT A 160 161 162 163 164 Memorandum REPORT TO:City Commission FROM:Aaron Tolhurst, Facilities Service Worker Lance Dennis, Facilities Service Worker Max Ziegler, Facilities Project Coordinator Jon Henderson, Strategic Services Director SUBJECT:Authorize the City Manager to Sign a Professional Services Agreement with Mountain Alarm - Bozeman for Bozeman Public Library Security Alarm MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to Sign a Professional Services Agreement with Mountain Alarm - Bozeman for Bozeman Public Library Security Alarm. STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:Currently the existing security and alarm system at the Bozeman Public Library has become obsolete and the system is no longer able to be updated. To ensure the safety of city staff and the public, the system must be updated to maintain a reliable security coverage for the building. The new system will include one touch screen panel, an control panel, and 10 remote panic button fobs. This entire new system will be more user friendly and brings additional capabilities to send email alerts to staff in the event that a panic button is activated. An automatic dialer will be installed which used cell phone networks over phone hard lines for greater reliability. Additionally to the new system will allow enhanced monitoring and remote control access. The contracted amount was under $5000 and received directors approval. UNRESOLVED ISSUES:None at this time. ALTERNATIVES:As suggested by City Commission FISCAL EFFECTS:The fiscal effects of this contract will total $4457.54, which will include all materials, labor, and Three (3) years of monitoring services. Attachments: Library Security Alarm.pdf Report compiled on: June 13, 2023 165 Professional Services Agreement for Bozeman Public Library Security Alarm Page 1 of 10 PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this _____ day of ____________, 202__ (“Effective Date”), by and between the CITY OF BOZEMAN, MONTANA, a self-governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City,” and, Mountain Alarm – Bozeman, 3228 Centennial Dr., Helena, Mt 59601, hereinafter referred to as “Contractor.” The City and Contractor may be referred to individually as “Party” and collectively as “Parties.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter this Agreement with Contractor to perform for City services described in the Scope of Services attached hereto as Exhibit A and by this reference made a part hereof. 2. Term/Effective Date: This Agreement is effective upon the Effective Date and will expire on the 27th day of June, 2026, unless earlier terminated in accordance with this Agreement. 3. Scope of Services: Contractor will perform the work and provide the services in accordance with the requirements of the Scope of Services. For conflicts between this Agreement and the Scope of Services, unless specifically provided otherwise, the Agreement governs. 4. Payment: City agrees to pay Contractor the amount specified in the Scope of Services. Any alteration or deviation from the described services that involves additional costs above the Agreement amount will be performed by Contractor after written request by the City, and will become an additional charge over and above the amount listed in the Scope of Services. The City must agree in writing upon any additional charges. 5. Contractor’s Representations: To induce City to enter into this Agreement, Contractor makes the following representations: a. Contractor has familiarized itself with the nature and extent of this Agreement, the Scope of Services, and with all local conditions and federal, state and local laws, ordinances, rules, 166 Professional Services Agreement for Bozeman Public Library Security Alarm Page 2 of 10 and regulations that in any manner may affect cost, progress or performance of the Scope of Services. b. Contractor represents and warrants to City that it has the experience and ability to perform the services required by this Agreement; that it will perform the services in a professional, competent and timely manner and with diligence and skill; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this warranty. 6. Independent Contractor Status/Labor Relations: The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, Montana Code Annotated (MCA), and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue at no additional cost to City. Contractor shall indemnify, defend, and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in 167 Professional Services Agreement for Bozeman Public Library Security Alarm Page 3 of 10 connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes. 7. Indemnity/Waiver of Claims/Insurance: For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; or (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents. For the professional services rendered, to the fullest extent permitted by law, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the negligence or intentional misconduct of the Contractor or Contractor’s agents or employees. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the City as indemnitee(s) which would otherwise exist as to such indemnitee(s). Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. Should the City be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor’s applicable insurance policies required below, the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. In the event of an action filed against the City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. Contractor also waives any and all claims and recourse against the City, including the right of 168 Professional Services Agreement for Bozeman Public Library Security Alarm Page 4 of 10 contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for [City’s] own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. These obligations shall survive termination of this Agreement and the services performed hereunder. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in this Section. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City. Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows:  Workers’ Compensation – statutory;  Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate;  Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate;  Automobile Liability - $1,000,000 property damage/bodily injury per accident; and  Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate. The above amounts shall be exclusive of defense costs. The City shall be endorsed as an additional or named insured on a primary non-contributory basis on the Commercial General, Employer’s Liability, and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non-renewal. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. 169 Professional Services Agreement for Bozeman Public Library Security Alarm Page 5 of 10 8. Termination for Contractor’s Fault: a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, the City may, by written notice, terminate this Agreement and the Contractor’s right to proceed with all or any part of the work (“Termination Notice Due to Contractor’s Fault”). The City may then take over the work and complete it, either with its own resources or by re-letting the contract to any other third party. b. In the event of a termination pursuant to this Section 8, Contractor shall be entitled to payment only for those services Contractor actually rendered. c. Any termination provided for by this Section 8 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. d. In the event of termination under this Section 8, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 9. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease performance under this Agreement, the City may terminate this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease performance under this Agreement and make every reasonable effort to refrain from continuing work, incurring additional expenses or costs under this Agreement and shall immediately cancel all existing orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as may be necessary to preserve, protect, and maintain work already completed or immediately in progress. c. In the event of a termination pursuant to this Section 9, Contractor is entitled to payment only for those services Contractor actually rendered on or before the receipt of the 170 Professional Services Agreement for Bozeman Public Library Security Alarm Page 6 of 10 Notice of Termination for City’s Convenience. d. The compensation described in Section 9(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 10. Limitation on Contractor’s Damages; Time for Asserting Claim: a. In the event of a claim for damages by Contractor under this Agreement, Contractor’s damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. b. In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 11. Representatives and Notices: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be Aaron Tolhurst 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. Contractor’s Representative: The Contractor’s Representative for the purpose of this Agreement shall be Jake Allen, Branch Manager or such other individual as Contractor shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed 171 Professional Services Agreement for Bozeman Public Library Security Alarm Page 7 of 10 to Contractor’s Representative; provided, however, that in exigent circumstances when Contractor’s Representative is not available, City may direct its direction or communication to other designated Contractor personnel or agents. c. Notices: All notices required by this Agreement shall be in writing and shall be provided to the Representatives named in this Section. Notices shall be deemed given when delivered, if delivered by courier to Party’s address shown above during normal business hours of the recipient; or when sent, if sent by email or fax (with a successful transmission report) to the email address or fax number provided by the Party’s Representative; or on the fifth business day following mailing, if mailed by ordinary mail to the address shown above, postage prepaid. 12. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 13. Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 14. Nondiscrimination and Equal Pay: The Contractor agrees that all hiring by Contractor of persons performing this Agreement shall be on the basis of merit and qualifications. The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. Contractor represents it is, and for the term of this Agreement will be, in compliance with the requirements of the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act). 172 Professional Services Agreement for Bozeman Public Library Security Alarm Page 8 of 10 Contractor must report to the City any violations of the Montana Equal Pay Act that Contractor has been found guilty of within 60 days of such finding for violations occurring during the term of this Agreement. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 15. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing its employees and agents in safe work practices. 16. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of the City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 17. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 18. Non-Waiver: A waiver by either party of any default or breach by the other party of any terms or conditions of this Agreement does not limit the other party’s right to enforce such term 173 Professional Services Agreement for Bozeman Public Library Security Alarm Page 9 of 10 or conditions or to pursue any available legal or equitable rights in the event of any subsequent default or breach. 19. Attorney’s Fees and Costs: In the event it becomes necessary for either Party to retain an attorney to enforce any of the terms or conditions of this Agreement or to give any notice required herein, then the prevailing Party or the Party giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel including the City Attorney’s Office staff. 20. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 21. Dispute Resolution: a. Any claim, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. b. If the parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 22. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 23. Headings: The headings used in this Agreement are for convenience only and are not be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 24. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 25. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 26. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 174 Professional Services Agreement for Bozeman Public Library Security Alarm Page 10 of 10 27. No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or enforced by a third party. 28. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 29. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained herein or made a part thereof by reference, are not binding upon the parties. There are no understandings between the parties other than as set forth in this Agreement. All communications, either verbal or written, made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 30. Consent to Electronic Signatures: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written or as recorded in an electronic signature. CITY OF BOZEMAN, MONTANA ____________________________________ CONTRACTOR (Type Name Above) By________________________________ By__________________________________ Jeff Mihelich, City Manager Print Name: ___________________________ Print Title: ____________________________ APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney 175 EXHIBIT A 176 177 178 179 180 Memorandum REPORT TO:City Commission FROM:Renata Munfrada, Community Housing Program Coordinator David Fine, Economic Development Program Manager Brit Fontenot, Economic Development Director SUBJECT:Authorize City Manager to Sign a Professional Services Agreement with Human Resource Development Council District IX for Community Housing Program Management MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize City Manager to sign Professional Services Agreement with Human Resource Development Council District IX for Community Housing Program Management 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:The Human Resource Development Council of District IX (HRDC), through a Professional Services Agreements with the City of Bozeman, works to counsel and qualify buyers of affordable housing with the HUD Certified Homebuyer Education Class. HRDC also offers pre-purchase counseling, analyzes buyer qualifications, manages marketing, and record keeping. HRDC will also monitor and manage for long-term affordability on deed restricted homes. HRDC's Community Development Director (CDD) works closely with City staff to provide additional capacity regarding affordable housing best practices and updated program guidance. The CDD helps staff respond to housing developers and nonprofits, and assists citizens seeking affordable housing resources with information and access to services. The CDD also works to build a more sustainable community by focusing on the relationships between affordable housing, economic and workforce development, and transportation systems within the city. The CDD connects City staff to agency data relevant to creating and updating the City of Bozeman Consolidated Plan. This Professional Service Agreement with HRDC was approved by the City Commission on June 13, 2023 with only the scope of work attached. The item has been corrected to include the contract. 181 UNRESOLVED ISSUES:None. ALTERNATIVES:As recommended by the City Commission. FISCAL EFFECTS:The Professional Services Agreement with HRDC, in the amount of $60,000, will come out of the Community Housing Program FY23 budget. Attachments: First Amendment for Community Housing Program.pdf Scope of Services for Community Housing Program 23-24.pdf Report compiled on: June 5, 2023 182 First Amendment to Professional Services Agreement for Community Housing Program FY 2023 – FY 2024 Page 1 of 2 FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT THIS FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT FOR Community Housing Program dated August 23, 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 Human Resource Development Council of District IX (HRDC), 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. Extension of Term. Section 2 of the Agreement is extended for an additional one (1) year period. The Agreement shall terminate on June 30, 2024. 2. Updated Scope of Services: The attached scope of service will provide the price for services breakdown to govern the extended term. 3. Agreement still valid. All remaining terms and provisions of the Agreement remain valid. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** 183 First Amendment to Professional Services Agreement for Community Housing Program FY 2023 – FY 2024 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 HRDC By________________________________ By_____________________________ Jeff Mihelich, City Manager Print Name: Heather Grenier Title: President / CEO APPROVED AS TO FORM By_______________________________ Greg Sullivan, Bozeman City Attorney 184 Professional Services Agreement for Community Housing Program Scope of Services July 1, 2023, to June 30, 2024 HUD Certified Homebuyer Education Class – $20,000 HRDC will provide a minimum of 18 homebuyers' classes in the City of Bozeman annually. HRDC's homebuyer’s education course provides an important first point of entry for many residents seeking affordable ownership and is a requirement of all potential homebuyers in the City of Bozeman's Affordable Housing Program. HRDC will provide an 8-hour comprehensive homeownership education course directed by a HUD-approved housing counselor. Topics covered will include advantages and disadvantages of home ownership, assessing homeownership readiness, understanding credit, managing finances, the mortgage process, programs for first-time home buyers, shopping for a home, lender, and a realtor, closing the deal, home maintenance, and post purchase concerns. HRDC will provide the course free of charge and allow all interested potential homebuyers to attend. The Homebuyer Education Class schedule and instructions for attending will be published on HRDC's website, and via HRDC's social media channels. It will also be sent by email to industry partners. A course flyer and schedule are also inserted into internal and external newsletters distributed by HRDC. Pre-Purchase Counseling, Buyer Qualification, Marketing, and Record Keeping – $20,000 Pre-purchase counseling: HRDC's HUD-certified counselors will provide pre-purchase counseling on an individual basis to all persons interested in becoming buyers qualified to purchase a home using City and other related programs. HRDC's pre-purchase counseling will help potential buyers better understand their specific home buyer readiness and identify any barriers to successful and sustainable home ownership. HRDC will assist potential buyers with budgeting, credit, home search, financing, low- interest loan and other subsidy programs, home care and maintenance, purchase procedures, closing, RESPA, loan document review services, terms, and other necessary aspects to purchasing a home. As part of the initial counseling session, HRDC will provide all participants in the counseling session with HUD required materials and disclosures. Buyer Qualification: During pre-purchase counseling, HRDC will evaluate potential buyers for eligibility for possible down payment assistance and secondary lending opportunities which may be available locally through the City of Bozeman's Community Housing Program and the HOME Program Homebuyer Assistance Program in partnership with the Montana Department of Commerce. Qualified Home Buyer Pool: HRDC will maintain a pool of potential qualified home buyers for income brackets as agreed upon with City staff upon review of potential projects. HRDC will notify qualified potential buyers of new home ownership opportunities as they are made available and work with developers of housing to help them understand the needs and resources of households 185 on the list. HRDC will also partner with developers and builders to develop affordable housing plans for submittal to the City. Mechanism Monitoring/Management for Long-term Affordability – $11,000 HomeKeeper System Management, Maintenance, and Data Sharing HRDC will provide and maintain a license for HRDC and the City to use HomeKeeper software (or such alternate software program City consents to in writing) to track applicant eligibility data, and demographics. City's license to use the software must allow the City to access information related to the home buyers, and other records HRDC is required by this Agreement to provide to the City that are stored in the software program. HRDC represents and warrants it has the right under its software license for the City's use of the software as described in this Agreement, and City's use will not infringe on the rights of any third party. Loan Origination/Deed Restriction/Lien Documents HRDC will provide trained professionals to work with local real estate agents, lenders, and title agents to ensure that the home purchase process requirements of below-market homes created by developers in exchange for incentives offered by the City of Bozeman meet applicable program requirements, including down payment assistance, is completed efficiently and in compliance with program regulations. HRDC will provide services related to loan origination, deed restriction, and lien documentation and recordation in accordance with City guidelines. Monitoring and Compliance HRDC will provide monitoring for and verify homeowner compliance with the ownership requirements for homes produced under the previous AHO and under related affordable housing plans provided by developers, including use as primary residence and occupancy requirements. HRDC will request homeowners provide documentation proving compliance on an annual basis. Deed Re-conveyance/Subsidy Recapture at Resale Upon a recapture or re-conveyance event as described in the City's recorded lien documents, HRDC will work closely with homeowners, lenders, realtors, and title agents to ensure that all the terms of the loans are met and a payoff amount is calculated, collected, and understood by all parties. Copies of the finalized documentation will be sent digitally to the City’s representative for review. Funds obtained by HRDC in performing the recapture process will be transferred to the City within 90 days of receipt by HRDC. Community Development Director staff time (approximately 200 hours/year) – $9,000 HRDC’s Community Development Director (CDD) works closely with City staff to provide additional capacity regarding affordable housing best practices and updated program guidance. The CDD helps staff to respond to inquiries from developers of subsidized and market rate housing, provides technical assistance to housing developers and non-profits, and assists citizens seeking affordable housing resources with information and access to services. The CDD also works to build a more sustainable community by focusing on the relationships between 186 affordable housing, economic and workforce development, and transportation systems within the city. The CDD connects City staff to agency data relevant to creating and updating the City of Bozeman Consolidated Plan. Record Keeping and Reporting: HRDC will provide the City with the following records and reports within the following timeframes. HRDC may also make the records available to the City Representative in the HomeKeeper or other tracking software it provides under this Agreement. Records and reporting requirements may be adjusted by the City in writing. 1. Recapture documentation, including each recapture due, payment by the homeowner, and transfer of the payment to the City – Quarterly 2. Reporting and invoices for services rendered - Quarterly ▪ Number of Home Buyer Education classes ▪ Number of participants in Home Buyer Education classes ▪ Number of pre-purchase counsels ▪ All other activities performed under PSA 3. Documents evidencing Owner Occupancy of Affordable Homes will be stored in Homekeeper - Annually Scope of Services Summary: HUD Certified Homebuyer Education Class – $20,000 Pre-Purchase Counseling, Buyer Qualification, Marketing, and Record Keeping – $20,000 Mechanism Monitoring/Management for Long-term Affordability – $11,000 Community Development Director staff time (approximately 200 hours/year) – $9,000 TOTAL: $60,000 187 Memorandum REPORT TO:City Commission FROM:Jesse DiTommaso, Economic Development Specialist David Fine, Economic Development Program Manager Brit Fontenot, Economic Development Director SUBJECT:Authorize the City Manager to Sign an Amendment 1 to Professional Services Agreement with Sanderson Stewart for Architectural, Engineering, Land Surveying and Land-Use Planning Services. MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the city manager to sign an amendment 1 to Professional Services Agreement with Sanderson Stewart for architectural, engineering, land surveying and land-use planning services. STRATEGIC PLAN:2.1 Business Growth: Support retention and growth of both the traded and local business sectors while welcoming and encouraging new and existing businesses, in coordination with the Economic Development Plan. BACKGROUND:On October 22, 2018 the City Commission signed a professional services agreement with Sanderson Stewart for architectural, engineering, land surveying and land-use planning services. The scope of services for the contract is for any project that may be initiated by the Economic Development Department, or Downtown Bozeman Partnership, LLC, or within any City urban renewal district (URD) or any district utilizing a tax increment financing (TIF) provision. At the City’s discretion, the consultant appointment may also lead into potential medium to large-scale projects of yet-to-be-determined scope of work, cost, and schedule. The project scope may include renovation of existing facilities, and/or an addition to an existing facility, or new construction projects. The scope of the projects will be determined based on multiple factors including private partner identification, obtainable priority needs as identified by the URD boards/ workplans and the Bozeman City Commission, and the City’s desire to continue with the selected consultant. The proposed amendment extends the term contract through December 2023. UNRESOLVED ISSUES:None. 188 ALTERNATIVES:As recommended by the Commission. FISCAL EFFECTS:The amendment has no fiscal effect. Projects and budgets will go through a written task order. Attachments: 23 - Amendment 1 to PSA with Sanderson Stewart for Time and Materials.pdf Report compiled on: June 12, 2023 189 First Amendment to Professional Services Agreement Architectural and Engineering, Land Surveying, and Land Use Planning Services FY 2018 – FY 2023 Page 1 of 2 FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT THIS FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT FOR architectural, engineering, land surveying, and land use planning services dated October 22, 2018 (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 Sanderson Stewart, 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. Extension of Term. Section 2 of the Agreement is extended for an additional six (6) month period. The Agreement shall terminate on December 31, 2023. 2. Nondiscrimination and Equal Pay: Section 14 of the Agreement is replaced in its entirety with the following: The Contractor agrees that all hiring by Contractor of persons performing this Agreement shall be on the basis of merit and qualifications. The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. 190 First Amendment to Professional Services Agreement Architectural and Engineering, Land Surveying, and Land Use Planning Services FY 2018 – FY 2023 Page 2 of 2 Contractor represents it is, and for the term of this Agreement will be, in compliance with the requirements of the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act). Contractor must report to the City any violations of the Montana Equal Pay Act that Contractor has been found guilty of within 60 days of such finding for violations occurring during the term of this Agreement. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 3. 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. 4. Agreement still valid. All remaining terms and provisions of the Agreement remain valid. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA SANDERSON STEWART By________________________________ By_____________________________ Jeff Mihelich, City Manager Danielle Scharf Principal APPROVED AS TO FORM DOWNTOWN BOZEMAN PARTNERSHIP By_______________________________ By_____________________________ Greg Sullivan, Bozeman City Attorney Ellie Staley Executive Director 191 Memorandum REPORT TO:City Commission FROM:Cody Flammond, Engineer II SUBJECT:Authorize the City Manager to Sign the Second Addendum to the PSA with Water and Environmental Technologies, Inc. (WET), to Provide Environmental Consulting Services pertinent to the East Gallatin Landfill MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to execute the Second Addendum to the PSA with Water and Environmental Technologies, Inc. (WET), to provide environmental consulting services pertinent to the East Gallatin Landfill. STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:The East Gallatin Landfill, located north of Griffin Drive in Bozeman, is an inactive, approximately 30-acre municipal landfill which operated from 1962 to 1970. The City now leases the site to Montana Department of Fish, Wildlife & Parks as part of the East Gallatin Recreation Area (commonly known as Glen Lake). A 1983 CERCLA preliminary assessment by Montana Department of Health and Environmental Services (MDHES) (now the Montana Department of Environmental Quality (DEQ)) summarized the contamination potential from landfill leachate and indicated a site investigation was warranted. EPA consultants sampled soils, groundwater from nearby domestic wells, and sediments and surface water from Glen Lake and the East Gallatin River. None of the contaminant levels found were considered significant and based on investigation and health risk assessment results, EPA declared the facility "No Further Action" under CERCLA. The facility is currently listed as a low priority facility on DEQ's CECRA priority list. The area near the old landfill is now seeing increasing development pressure. In recent years, Gallatin Park Subdivision, Subdivision 154A, and Bridger Vale Subdivision have been platted and are in the process of developing. In addition to Glen Lake, the East Gallatin River, a cold water fishery, flows along the east boundary of the landfill. The recreation area is heavily used in summers for swimming, boating and other water activities. In 2018, WET performed a phase one site assessment summarizing all 192 available environmental data and produced a preliminary conceptual site model. In 2021, WET characterized and monitored contaminants at the site and reported to and coordinated with the Montana DEQ, as necessary. During this work, several areas were noted where additional data is necessary. The purpose of this addendum is to procure the services needed to continue this work and collect the additional data needed to adequately characterize and monitor the contaminants at the site. UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the City Commission. FISCAL EFFECTS:The total cost for the scope of work detailed in these documents is $74,770.50. This work will be paid for using funds in the Non-Departmental budget for Consultants and Professional Services (010-8920-471.5-10) contingent upon the City Commission approving the Fiscal Year 2024 Budget. Attachments: Second Addendum to Professional Services Agreement FY 24 - Cost Estimate Quarterly Sampling including residential air screening Report compiled on: June 8, 2023 193 Second Addendum to Professional Services Agreement for Landfill Characterization Services Page 1 of 2 SECOND ADDENDUM TO PROFESSIONAL SERVICES AGREEMENT THIS SECOND ADDENDUM TO THE PROFESSIONAL SERVICES 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,” Water and Environmental Technologies, Inc, 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 as follows: 1. Extension of Term. Section 31 of the Professional Services Agreement between the City and Contractor dated January 11, 2021 (the Agreement) is extended for an additional one (one) year period. The Agreement shall terminate on June 30, 2024. 2. Agreement still valid. All remaining terms and provisions of the Agreement remain valid. Updated - Attachment A Scope of services. 3. 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 **** 194 Second Addendum to Professional Services Agreement for Landfill Characterization Services 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 CONTRACTOR (Water & Environmental Technologies, Inc) By________________________________ By_____________________________ Jeff Mihelich, City Manager Print Name: Title: APPROVED AS TO FORM By_______________________________ Greg Sullivan, Bozeman City Attorney 195 ATTACHMENT A. PROJECT COST ESTIMATEWATER & ENVIRONMENTAL TECHNOLOGIES Date: January 27, 2023 Client Phone #: (406) 582-2280Client:City of Bozeman Client Contact: Cody FlammondAddress: 20 East Olive Street Project Manager: Stefanie VandaeleDescription: Bozeman Old City Landfill - Characterization TASK DESCRIPTION PRICE UNITS QTY PRICE TASK 1. Project Management Project Engineer $125.00 HOUR 40 $5,000.00$5,000.00TASK 2. Data Management - Data Entry and QAQCProject Engineer $125.00 HOUR 8 $1,000.00Staff Engineer $100.00 HOUR 64 $6,400.00SUBTOTAL:$7,400.00TASK 3. Landfill Monitoring TASK 3.1 Monitoring - Groundwater Staff Engineer/Hydrogeologist $100.00 HOUR 192 $19,200.00 Meters and Equipment $220.00 DAY 8 $1,760.00 Sample Consumables $20.00 SAMPLE 48 $960.00$21,920.00 TASK 3.2 Monitoring - Soil Vapor Staff Engineer/Hydrogeologist $100.00 HOUR 30 $3,000.00 Sample Consumables $40.00 HOUR 12 $480.00$3,480.00 TASK 3.3 Laboratory Analysis Groundwater VOCs $140.00 LUMP SUM 60 $8,400.00 Soil Gas VOCs $371.00 LUMP SUM 14 $5,194.00$13,594.00 TASK 3.4 Drum Disposal Drum Purge Water Sampling $330.00 LUMP SUM 4 $1,320.00 Drum Disposal $400.00 LUMP SUM 4 $1,600.00$2,920.00 TASK 4 Residential Soil Gas Assessement TASK 4.1 Mobilization Project Engineer I $115.00 HOUR 3 $345.00 Mileage 1 EA 200 $200.00$545.00 TASK 4.2. Soil gas screen installation, canister deployment Project Engineer I $115.00 HOUR 2 $230.00 Staff Engineer I $100.00 HOUR 2 $200.00 Helium meter $200.00 DAY 1 $200.00$630.00 TASK 4.3. Laboratory Analysis TO-15 SIM (indoor air)$473.00 CANISTER 2 $946.00 TO-15 SIM (soil gas)$335.50 CANISTER 1 $335.50 Rental canister $50.00 CANISTER 1 $50.00$1,331.50 Task 4.4. Reporting $115.00 HOUR 4 $460.00 Project Engineer $135.00 HOUR 1 $135.00 Senior Engineer I $595.00 TASK 5. Data Summary ReportSenior Engineer $135.00 HOUR 4 $540.00Project Engineer $125.00 HOUR 50 $6,250.00Staff Engineer $100.00 HOUR 40 $4,000.00GIS Specialist $85.00 HOUR 15 $1,275.00Report Copies:LUMP SUM $500.00$12,565.00TASK 6. CAP UpdateSenior Engineer $135.00 HOUR 4 $540.00Project Engineer $125.00 HOUR 10 $1,250.00Staff Engineer $100.00 HOUR 30 $3,000.00$4,790.00 ESTIMATED PROJECT TOTAL $74,770.50 SUBTOTAL: SUBTOTAL: SUBTOTAL: SUBTOTAL: SUBTOTAL: SUBTOTAL: SUBTOTAL: SUBTOTAL: SUBTOTAL: SUBTOTAL: SUBTOTAL: Page 1 of 1 196 Memorandum REPORT TO:City Commission FROM:Lance Lehigh, PE, CFM, Engineer III Shawn Kohtz, PE, City Engineer SUBJECT:Authorize the City Manager to Sign Amendment No. 4 to the Professional Services Agreement with Advanced Engineering and Environmental Services, Inc. for the Bozeman Wastewater Collection System Phase II Model Update MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to Sign Amendment No. 4 to the Professional Services Agreement with Advanced Engineering and Environmental Services, Inc. for the Bozeman Wastewater Collection System Phase II Model Update. STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND: The City’s Wastewater Collection Facilities Plan (Plan) was last updated in 2015. The Plan provides an analysis of existing sanitary sewer system capacity, determines future infrastructure needs to accommodate growth anticipated by the Community Plan and Future Land Use Map, and ultimately provides a roadmap for sanitary sewer system infrastructure investments. In 2020, Advanced Engineering and Environmental Services (AE2S) was selected to complete an update of the City’s wastewater collection model (Phase I) and wastewater collection facility plan (Phase II). Phase II of the project is currently under contract. Recent development patterns with significantly increased density along arterial and collector street corridors have changed the assumptions in the sewer analysis. The proposed amendment would incorporate recent density changes. The Plan will provide priority recommendations for capital improvements to the sanitary sewer system to accommodate increased density. The amendment will also include a public engagement component and density increase associated with the requirement to allow ADUs and duplexes on single family home lots to address recent Montana Senate Bill 382 requirements. 197 The scope of services is presented in Attachment A. These services will be an extension of the City’s existing contract with Advanced Engineering and Environmental Services, Inc. Upon completion of a draft Plan, staff will bring the updated Plan to City Commission for review and subsequently for adoption. Work is anticipated to be completed in August of 2023. UNRESOLVED ISSUES:None Identified ALTERNATIVES:As suggested by the Commission. FISCAL EFFECTS:The negotiated scope and fee for Amendment No. 4 totals $60,251. If approved, funds will be from the City’s FY23 wastewater fund, which has sufficient remaining budget for this scope of work. The original contract including Amendments 1-3 totals $626,373, and the total effort including Amendment No. 4 is $686,624. This will be the final proposed amendment for the work. Attachments: 20- PSA - AE2S - Wastewater Collection Phase 1 Amendment No. 1 to Professional Services Agreement 22-PSA AE2S - Wastewater Collection Phase 2 Amendment No. 3 to Professional Services Agreement Amendment No. 4 to Professional Services Agreement Attachment A - Scope of Services Report compiled on: June 15, 2023 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 Engineer’s Project #: P05097-2018-006 Page 1 of 2 Amendment No. 1 to Professional Services Agreement for: Wastewater Collection System Model Update – Phase 1 THIS AGREEMENT is made as of this ________ day of ____________________, 20 , between THE CITY OF BOZEMAN, a Municipal Corporation, Bozeman, Montana, herein referred to as CITY and Advanced Engineering and Environmental Services, LLC an Engineering Consulting Firm of Bozeman, Montana, herein referred to as Consultant. WHEREAS, the parties have entered into a Professional Services Agreement dated February 24, 2020, herein referred to as Original Agreement for professional engineering services; and WHEREAS, the parties desire to further amend the provisions of this Agreement. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS CONTAINED HEREIN, the parties agree as follows: Amend Section 1. Purpose: of the Original Agreement to add a new paragraph to read: City and Consultant agree to incorporate and Consultant agrees to perform additional Scope of Services attached hereto as “Attachment A – Wastewater Collection System Model Update – Phase 1 – Amendment 1”. Amend Section 4. Payment for Scope of Services: of the Original Agreement to add a new paragraph to read: City agrees to pay Consultant for the completion of the additional Scope of Services attached hereto as “Attachment A – Wastewater Collection System Model Update – Phase 1 – Amendment 1” a lump sum amount of $15,680.00. The Consultant’s billing rates in $/hr for its employees are included with this Attachment A as Table 1. Except as specifically amended herein, the Original Agreement shall remain in full force and effect and the Parties shall be bound by all terms and conditions therein. IN WITNESS WHEREOF, the parties hereto do make and execute this Agreement on the day and year first above written. CITY OF BOZEMAN ___________________________________ Jeff Mihelich City Manager ATTEST: ________________________________________ Mike Maas City Clerk 9th November 21 DocuSign Envelope ID: 27C66B41-00AE-4BD4-BD78-0E081DD698C1 227 Engineer’s Project #: P05097-2018-006 Page 2 of 2 APPROVED AS TO FORM ____________________________________ Greg Sullivan City Attorney CONSULTANT By:_______________________________________ Its:______________________________________ ATTEST: By:___________________________________ Operations Manager DocuSign Envelope ID: 27C66B41-00AE-4BD4-BD78-0E081DD698C1 By:Assistant City Attorney 228 Attachment A of Amendment No. 1 to Professional Services Agreement for: Wastewater Collection System Model Update – Phase I Page 1 of 1 ATTACHMENT A – Wastewater Collection System Model Update – Phase 1 – Amendment 1 DESCRIPTION OF SERVICES: Gallatin Meadows Subdivision Wastewater Collection System Analysis: CONTRACTOR will evaluate the proposed Gallatin Meadows Subdivision adjusted sewershed, proposed private lift station and alternative location for a regional lift station. CONTRACTOR will analyze collection system scenarios in hydraulic model. This work will include: ·Delineate new / revised sewersheds served by the proposed private lift station and alternative regional lift station. ·Compute full build-out wastewater demand to new private lift station and alternative regional lift station. ·Determine require pump(s) size for each lift station. ·Develop recommended subdivision sewer network layout, including pipe size and invert elevations. ·Develop forcemain alignment and size and connection point for each lift station. ·Develop model scenario to reflect proposed private lift station and alternative regional lift station. ·Summarize data used, calculations, methods, assumptions, and results of private lift station analysis in a Technical Memorandum. Deliverable: Technical Memorandum. Table 1: Hourly Billing Rates for Personnel to be Utilized on Amendment No. 1 Personnel, Classification Hourly Labor Rate Zach Magdol, Engineer III $168.00 Donovan Voeller, Engineer III $168.00 Maddie Thompson, Engineer I $119.00 DocuSign Envelope ID: 27C66B41-00AE-4BD4-BD78-0E081DD698C1 229 Exhibit A - The HVLS service area, also know as the Baxter Creek Drainage Basin. Newly Completed Davis Lane Lift Station The area highlighted in blue is the HVLS service boundary, also known as the Baxter Creek Drainage Basin. The service area is approximately 1,300 acres. Potential location for a second lift station in the Baxter Creek Drainage Basin. Identified future location of the Hidden Valley Lift Station (HVLS) as shown in the 2015 wastewater facility plan. DocuSign Envelope ID: 27C66B41-00AE-4BD4-BD78-0E081DD698C1 230 Engineer’s Project #: P05097-2018-006 Page 1 of 2 Amendment No. 2 to Professional Services Agreement for: Wastewater Collection System Model Update – Phase 2 THIS AGREEMENT is made as of this ________ day of ____________________, 20__ , between THE CITY OF BOZEMAN, a Municipal Corporation, Bozeman, Montana, herein referred to as CITY and Advanced Engineering and Environmental Services, LLC an Engineering Consulting Firm of Bozeman, Montana, herein referred to as Consultant. WHEREAS, the parties have entered into a Professional Services Agreement dated February 24, 2020, herein referred to as Original Agreement for professional engineering services; and WHEREAS, the parties desire to further amend the provisions of this Agreement. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS CONTAINED HEREIN, the parties agree as follows: Amend Section 1. Purpose: of the Original Agreement to add a new paragraph to read: City and Consultant agree to incorporate and Consultant agrees to perform additional Scope of Services attached hereto as “Attachment A – Wastewater Collection System Model Update – Phase 2 – Amendment 2”. Amend Section 4. Payment for Scope of Services: of the Original Agreement to add a new paragraph to read: City agrees to pay Consultant for the completion of the additional Scope of Services attached hereto as “Attachment A – Wastewater Collection System Model Update – Phase 2 – Amendment 2” a totals $247,938.00. The Consultant’s billing rates in $/hr for its employees are included with this Attachment A. Except as specifically amended herein, the Original Agreement shall remain in full force and effect and the Parties shall be bound by all terms and conditions therein. IN WITNESS WHEREOF, the parties hereto do make and execute this Agreement on the day and year first above written. CITY OF BOZEMAN ___________________________________ Jeff Mihelich City Manager ATTEST: ________________________________________ Mike Maas City Clerk DocuSign Envelope ID: 300EF4B6-1671-42FF-9964-65D0B3FE655D 4th 22January 231 Engineer’s Project #: P05097-2018-006 Page 2 of 2 APPROVED AS TO FORM ____________________________________ Greg Sullivan City Attorney CONSULTANT By:_______________________________________ Its:______________________________________ ATTEST: By:___________________________________ Operations Manager DocuSign Envelope ID: 300EF4B6-1671-42FF-9964-65D0B3FE655D 232 ATTACHMENT A – Wastewater Collection System Phase 2 – Facility Plan SCOPE OF SERVICES: Task 100: Project Management and Meetings  Project invoicing, budget management, schedule management  Progress reporting  City Commission presentation Task 200: Wastewater Collection System Risk Assessment  Review risk  Evaluate risks across the collection system using InfoAsset Planner (IAP) to help prioritize capital improvement projects (CIP) including recommended rehabilitation and replacement (R&R).  Build on the City’s risk assessment work done to date to the maximum extent possible.  Risk model will include the following data: o City GIS Asset Database o CMMS o CCTV o Hydraulic model results (WWF d/D) o Typical R&R costs. Develop unit cost assumptions for the major types of projects (pipeline replacement, pipe break repairs, pipe rehab). Include category for projects in heavily urbanized zones versus less-dense areas.  Develop risk assessment framework. Conduct workshop with City staff to present recommended likelihood of failure (LOF) and consequence of failure (COF) factors. City will provide review of LOF and COF factors prior to finalizing risk assessment framework.  Develop Decision Tree Project Prioritization Plan  Deliverables: Risk Assessment Technical Memorandum – including maps indicating risk range for each section of the collection system.  IAP Training Task 300: Capital Improvements Plan  Verify that the collection system projects listed in the City’s current CIP are still recommended and appropriately prioritized.  Develop a new list of recommended near-term (5 year) projects to address current and projected deficiencies. Near-term recommended improvements will be based on previous facility plan and Infill / TIF Densification hydraulic model scenario.  Develop complete list of recommended projects, including both near-term (5 year) and long-term (20 year, also referred to as “unscheduled”) projects. Projects shall have a description and be categorized by purpose/need (e.g., R&R, growth and development).  Develop total project costs for identified CIP projects.  Provide interactive web-based map deliverable for CIP projects DocuSign Envelope ID: 300EF4B6-1671-42FF-9964-65D0B3FE655D 233 Task 400: Facility Plan Report  Executive summary with technical memoranda appendices. Summarize key assumptions, methods, and findings of the Wastewater Collection System Facility Plan Phase 1 and 2 in an executive summary.  Graphical Executive Summary shall be provided for the City to use to convey primary takeaways from the Facility Plan  Interactive Mapping Deliverable – an interactive web map will be developed using ArcGIS. Hard copy Facility Plan will have up to a dozen 11x17 maps. Remainder of visuals will be figures referencing the interactive web maps.  Deliverables: Wastewater Collection System Facility Plan Update Executive Summary and Compiled Technical Memoranda. Task 500: Allocation Tool Development  Develop tool to allow City Engineering staff to automatically update wastewater collection system model loading factors based on development applications received. o Tool will be a spreadsheet-based database. An InfoSWMM GIS Exchange routine will be incorporated into the model to allow users to update Node-loading based on the spreadsheet database. Task 600: Montana State University Facility Plan Integration  Coordinate with University Facilities Staff to review campus wastewater facility plan  Revise future scenarios to reflect MSU facility plan Table 1: Hourly Billing Rates for Personnel Utilized Personnel, Classification 2022 Hourly Labor Rate Scott Buecker, Engineer VI $243.00 Trevor Datwyler, Engineer IV $203.00 Donovan Voeller, Engineer III $177.00 Dan Lissick, GIS Specialist $139.00 Drew Stock, Engineer II $148.00 Maddie Thompson, Engineer II $148.00 Nicole Gaustad, Communication Specialist III $139.00 Table 2: Task Fee Breakdown (DRAFT FEE ESTIMATE) Task Consultants Fee Task 100 – Project Management $24,336 Task 200 – Risk Assessment $72,240 Task 300 – Capital Improvements Plan $46,676 Task 400 – Facility Plan Report $63,368 Task 500 – Allocation Automatic Tool Development $18,998 Task 600 – MSU Facility Plan Integration $22,320 Total $247,938 DocuSign Envelope ID: 300EF4B6-1671-42FF-9964-65D0B3FE655D 234 Exhibit A City of Bozeman Wastewater Collection System Phase 2 – Facility Plan Detailed Scope of Services Task 100 – Project Management and Meetings: Sub-Tasks • Task 101 – Project Management: AE2S will conduct general project management services including general coordination with OWNER, project invoicing, and managing project budget and schedule. • Task 102 – Progress Reports: Provide regular progress reports throughout the duration of the project. • Task 103 – City Commission Presentation: Deliver summary presentation to Bozeman City Commission. Assumptions • All deliverables will be provided in electronic format. Deliverable • Monthly progress reports Task 200 – Wastewater Collection System Risk Assessment Sub-Tasks • Task 201 – Risk Policy/Framework: Review risk policy/framework developed with the City through the City’s water distribution system master plan and modify/adapt to fit the wastewater collection system. • Task 202 – Risk Criteria: Based on the wastewater collection system information availability, recommend risk criteria (Likelihood and Consequence of Failure) and weighting factors to the City. Adjust criteria and factors based on feedback provided from the City. • Task 203 – Risk Model: Using InfoAsset Planner, develop a detailed risk model built one to one with the City’s GIS database. Risk model will at a minimum include input from the following data sources: o City GIS Asset Database o CMMS work order, break, overflow history o CCTV. o Hydraulic Model Results (flow depth/Diameter ratio, etc.) Results from the preliminary risk analysis will be provided to the City as a list of assets prioritized by total risk score and overall risk ranking. • Task 204 – Risk Review Workshop: AE2S will facilitate a workshop with the City to review the preliminary risk results. The risk model will be live during the meeting to allow for real time revisions and sensitivity scenarios. • Task 205 – Finalize Risk Assessment: With the input from the risk review workshop, AE2S will update and finalize the risk model. • Task 206 –Decision Tree: The risk assessment will provide an indicator of which assets need the City’s attention. The decision tree will help automate the process of determining what rehab/replacement actions should be taken based on the City’s risk tolerance and risk mitigation approach. After developing a preliminary decision tree, AE2S will facilitate a workshop with the City to review and adjust the decision tree. As in the previous workshop, the risk model will be live to be able to see the impacts of decision tree modifications in real time. DocuSign Envelope ID: 300EF4B6-1671-42FF-9964-65D0B3FE655D 235 • Task 207 – Project Prioritization Plan: Using the results from the decision tree analysis, a project prioritization plan will be developed that delineates recommended rehabilitation or replacement activities into logical projects. Unit prices for major projects (pipeline replacement, pipe break repairs, pipe lining) will be subdivided to account for heavily urbanized zones versus less dense areas. In addition to logical spatial delineation of projects, budget input from the City will be used to divide projects into appropriately sized capital expenditures for a near term (5-year) planning period. • Task 208 – Technical Memorandum: A technical memorandum summarizing the risk assessment process and instructions for future updates by the City will be provided. • Task 209 – InfoAsset Planner Training: Two training sessions (4 hours each) will be provided on maintaining the City’s InfoAsset Planner risk model. Assumptions • Minimal refinement of the risk policy/framework will be required from the finalized water distribution system risk policy. • City will provide current GIS database which will not require significant data processing. • City will provide access to current CCTV database, and CCTV results will include NASSCO coded defects for the collection system pipes. • Manholes will be included in the risk model, but a risk assessment will not be conducted on the manholes at this time. Deliverables • Risk Policy/Framework • Graphic describing the impacts of deferred R&R under various level of service scenarios • Technical Memorandum • InfoAsset Planner Model and associated GIS data • Project Prioritization Plan with Costs Task 300 – Capital Improvements Plan Sub-Tasks • Task 301 – Verify that the collection system projects listed in the City’s current CIP are still recommended and appropriately prioritized. • Task 302 – Develop a new list of recommended near term (5 year) projects to address current and projected deficiencies. Near term recommended improvements will be based on outcomes of the Phase 1 and 2 Facility Planning work. Projects will have a description and be categorized by purpose/need (e.g., R&R, growth, and development). • Task 303 – Develop a new list of recommended long-term (5 to 20 year) projects to address current and projected deficiencies. Near term recommended improvements will be based on outcomes of the Phase 1 and 2 Facility Planning work. Projects will have a description and be categorized by purpose/need (e.g., R&R, growth and development). • Task 304 – Develop total project cost estimates for identified CIP projects. • Task 305 – Develop CIP technical memorandum summarizing project details, costs, and purpose/need. • Task 306 – Integrate the CIP plan into OptX, a web based interactive tool the City can use to track projects, quickly modify project timing, funding sources, inflation via DocuSign Envelope ID: 300EF4B6-1671-42FF-9964-65D0B3FE655D 236 construction cost index, and assess revenue vs. project costs to evaluate budget adequacy. Assumptions • Project costs will be provided uniformly in today’s dollar. Deliverables • CIP Tech Memo with each CIP project described in a one-page excel table with a figure/snapshot showing the area of influence. • Secure access to OptX to view, modify, or download the capital improvements plan to excel files. Task 400 – Facility Plan Report Sub-Tasks • Task 401 – Executive Summary: Develop an executive summary of the Wastewater Collection System Facility Plan, phases 1 and 2. Summarize key assumptions, methods, and findings from both phases of the study. Technical memoranda from phases 1 and 2 will be included as appendices. Up to twelve 11x17 .pdf maps will be provided, with remaining visuals to be graphic figures. Reader will be referred on online story maps (Task 403) for additional detail where desired. • Task 402 – Graphical Executive Summary: Develop a concise graphical executive summary, incorporating findings and key takeaways from the Phase 1 and 2 facility planning work. Intended audience is City leadership and the public for future outreach use. • Task 403 – Interactive Facility Plan Web Map: Develop an interactive web map using ArcGIS online story map functionality. The story map will provide more detail than the executive summary in a format that allows the viewer to stay high level, or dive into more detail of the analysis as desired. Assumptions • Web map will be hosted on the City’s enterprise server, with full editing access. Deliverable • Executive Summary with Technical Memoranda in Appendices • Graphical Executive Summary • Secure access to interactive facility plan web map. Task 500 – Allocation Tool Development Sub-Tasks • Task 501 – Develop a tool to allow City Engineering staff to update wastewater collection system model loading factors based on development applications received. The tool will be a spreadsheet-based database. An InfoSWMM routine will be incorporated into the model to allow users to update node loading based on the spreadsheet database. Provide testing with City staff for proof of concept and City staff training purposes. Assumptions • None Deliverables • Allocation Tool (Development allocation based on spreadsheet and database updates) • Provide “Guidelines for Allocation Tool Use” in tech memo format • Provide recommended future flow monitoring MH locations in a Story Map DocuSign Envelope ID: 300EF4B6-1671-42FF-9964-65D0B3FE655D 237 Task 600 – Montana State University Facility Plan Integration Sub-Tasks • Task 601 – Coordinate with University Facilities Staff to review campus wastewater facility plan. Revise future scenarios previously utilized in Phase 1, in both the model and the future scenarios technical memorandum, to reflect MSU facility planning. Assumptions • MSU will provide planning documents on-hand, and one meeting with MSU, City staff and engineering team. Deliverable • Updated model and report DocuSign Envelope ID: 300EF4B6-1671-42FF-9964-65D0B3FE655D 238 Team Members Scott Buecker Trevor Datwyler Donovan Voeller Dan Lissick Drew Stock Maddie Thompson Nicole Gaustad Senior Project Manager Risk Assessment Lead Wastewater Modeling Engineer GIS Professional Project Engineer Project Engineer Marketing Lead Task #2021 Hourly Billing Rate $243 $203 $177 $139 $148 $148 $131100Project Management & Meetings $24,336 101 Project Management $12,760 40 8 8 56102Progress Communications $3,464 8 4 4 16103CC Meeting Preparation and Presentation $8,112 16 8 8 8 40Task 100 Total Hours 64 20 20 0 8 0 0 112 Task 100 Total Fee $15,552 $4,060 $3,540 $0 $1,184 $0 $0 $24,336 200 Risk Assessment $72,240 201 Risk Policy/Framework $3,408 4 12 16202Risk Criteria $4,964 4 8 16 28203Risk Model $19,604 4 40 16 56 116204Risk Review Workshop $3,780 4 8 8 20205Finalize Risk Assessment $2,968 4 4 8 16206Decision Tree $14,572 4 32 48 84207Project Prioritization Plan $9,928 8 16 32 56208Risk Technical Memorandum $9,396 4 24 24 52209InfoAsset Planner Training $3,620 12 8 20 Task 200 Total Hours 36 156 0 16 200 0 0 408 Task 200 Total Fee $8,748 $31,668 $0 $2,224 $29,600 $0 $0 $72,240 300 Capital Improvements Plan $46,676 301 Validate Current CIP Projects $9,944 4 4 16 36 60302Additional Recommended Projects $4,604 4 8 8 4 24303Develop near term (5 year) and unscheduled (20 year) projects $7,132 8 4 8 20 40304Project Costs $7,132 8 4 8 20 40305CIP Tech Memo $5,356 8 4 8 8 28 306 CIP integration with OptX $12,508 4 16 40 16 76 Task 300 Total Hours 36 40 48 0 40 104 0 268 Task 300 Total Fee $8,748 $8,120 $8,496 $0 $5,920 $15,392 $0 $46,676 400 Facility Plan Report $63,368 401 Executive Summary $30,488 12 16 60 56 40 184402Graphical Executive Summary $19,684 12 12 24 16 60 124403Interactive Facility Plan Web Map $13,196 4 8 8 32 32 84 Task 400 Total Hours 28 36 92 104 32 40 60 392 Task 400 Total Fee $6,804 $7,308 $16,284 $14,456 $4,736 $5,920 $7,860 $63,368 500 Allocation Automation Tool Development $18,998 501 Wastewater Load Factor Automation $18,998 2 4 100 106Task 500 Total Hours 2 4 100 0 0 0 0 106 Task 500 Total Fee $486 $812 $17,700 $0 $0 $0 $0 $18,998 600 Water System Risk Analysis $22,320 601 MSU Coordination and Model/Report Update $22,320 16 64 48 128 Task 6 Total Hours 16 0 64 0 0 48 0 128 Task 6 Total Fee $3,888 $0 $11,328 $0 $0 $7,104 $0 $22,320 Total Project Hours per Team Member 182 256 324 120 280 192 60 1414 Total Project Fees per Team Member 44,226$ 51,968$ 57,348$ 16,680$ 41,440$ 28,416$ 7,860$ Total Project Fee 247,938$ Total Labor DocuSign Envelope ID: 300EF4B6-1671-42FF-9964-65D0B3FE655D 239 Page 1 of 2 Amendment No. 3 to Professional Services Agreement for: Wastewater Collection System Model Update – Phase 2 THIS AGREEMENT is made as of this day of , 20 , between THE CITY OF BOZEMAN, a Municipal Corporation, Bozeman, Montana, herein referred to as CITY and Advanced Engineering and Environmental Services, LLC an Engineering Consulting Firm of Bozeman, Montana, herein referred to as Consultant. WHEREAS, the parties have entered into a Professional Services Agreement dated February 24, 2020, herein referred to as Original Agreement for professional engineering services; and WHEREAS, the parties desire to further amend the provisions of this Agreement. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS CONTAINED HEREIN, the parties agree as follows: Amend Section 1. Purpose: of the Original Agreement to add a new paragraph to read: City and Consultant agree to incorporate and Consultant agrees to perform additional Scope of Services attached hereto as “Attachment A – Wastewater Collection System Model Update – Phase 2 – Amendment 3”. Amend Section 4. Payment for Scope of Services: of the Original Agreement to add a new paragraph to read: City agrees to pay Consultant for the completion of the additional Scope of Services attached hereto as “Attachment A – Wastewater Collection System Model Update – Phase 2 – Amendment 3” and totals $15,580.00. The Consultant’s billing rates in $190/hr for its employees are included with this Attachment A. Except as specifically amended herein, the Original Agreement shall remain in full force and effect and the Parties shall be bound by all terms and conditions therein. IN WITNESS WHEREOF, the parties hereto do make and execute this Agreement on the day and year first above written. CITY OF BOZEMAN Jeff Mihelich City Manager ATTEST: Mike Maas City Clerk 240 Page 2 of 2 APPROVED AS TO FORM Greg Sullivan City Attorney CONSULTANT ATTEST: By: By: Its: Operations Manager 241 Page 1 of 2 Amendment No. 4 to Professional Services Agreement for: Wastewater Collection System Model Update – Phase 2 THIS AGREEMENT is made as of this day of , 20 , between THE CITY OF BOZEMAN, a Municipal Corporation, Bozeman, Montana, herein referred to as CITY and Advanced Engineering and Environmental Services, LLC an Engineering Consulting Firm of Bozeman, Montana, herein referred to as consultant. WHEREAS, the parties have entered into a Professional Services Agreement dated February 24, 2020, herein referred to as Original Agreement for professional engineering services; and WHEREAS, the parties desire to further amend the provisions of this Agreement. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS CONTAINED HEREIN, the parties agree as follows: Amend Section 1. Purpose: of the Original Agreement to add a new paragraph to read: City and Consultant agree to incorporate and Consultant agrees to perform additional Scope of Services attached hereto as “Attachment A – Wastewater Collection System Model Update – Phase 2 – Amendment 4”. Amend Section 4. Payment for Scope of Services: of the Original Agreement to add a new paragraph to read: City agrees to pay Consultant for the completion of the additional Scope of Services attached hereto as “Attachment A – Wastewater Collection System Model Update – Phase 2 – Amendment 4” and totals $60,251. The Consultant’s billing rates range from $254/hr to $135/hr for its employees are included with this Attachment A. Except as specifically amended herein, the Original Agreement shall remain in full force and effect and the Parties shall be bound by all terms and conditions therein. IN WITNESS WHEREOF, the parties hereto do make and execute this Agreement on the day and year first above written. CITY OF BOZEMAN Jeff Mihelich City Manager ATTEST: Mike Maas City Clerk 242 Page 2 of 2 APPROVED AS TO FORM Greg Sullivan City Attorney CONSULTANT ATTEST: By: By: Its: Operations Manager 243 ATTACHMENT A – Wastewater Collec�on System Facility Plan SCOPE OF SERVICES – Amendment No. 4 Hydraulic Model Updates and Public Engagement Task 1 - Mee�ngs • Kickoff: One meeting with City staff to discuss scope and goals of increased density modeling. • Network update meeting: one meeting with City staff to review to discuss FME output; review growth area extensions; review sewer replacement. • Mapping meetings: Two meetings with City staff to identify, discuss, and finalize corridors and locations of likely higher density development. • Analysis review meetings: Two meetings with City staff to review scenario results and discuss next steps. • Documentation review meeting: One meeting with City staff to review draft project documentation. • Recommended Improvements Workshop: Workshop with City staff to discuss new d/D exceedances and potential improvements and how to approach funding and implementation Task 2 - Model Network Update • Run GIS exchanges to import new network features and update existing network features. Includes one (1) import iteration. • Revise Norton Ranch Lift Station under existing and future scenarios based on recently completed development project • Vertical realignment of Cottonwood sewer between Oak and Baxter in the existing and future scenarios based on road extension City project (NW Crossing sewer lowering) • Revise Laurel Gardens Lift Station under future scenarios based on Rose Apartments Development plan • Update and run existing system scenarios within the model to ensure new and updated elements are correctly activated and utilized by the model. • Update and run Infill and UBO dry and wet weather scenarios within the model to ensure new and updated elements are correctly activated and utilized by the model. • Update model results data within model attribute fields to reflect updated d/D for pipes. Task 3 - Model Scenario Development and Analysis • Increased Density Mapping: o Develop a map showing Increased Density Scenario assumptions. • Scenario Development: o Scenario 1: Increased Density Infill  Increase R-S, R-1, and R-2 domestic wastewater loading by 25% to account for Section 19 in SB 382 (this is equivalent to an additional 0.24 MGD domestic loading)  Assume all infill and future annexations within current City boundary become R- 4 zoning (20 dwelling units/acre) o Scenario 2: Increased Density Facility Plan-UBO 244  Scenario 1 “infill” conditions plus Facility Plan-UBO allocation using future land use o Wet weather conditions will be evaluated for each added scenario. • Model Analysis: o Develop pre- vs. post-increased density impact exhibits. o Review results with City staff and identify locations where hydraulic performance is not met, including depth to diameter (d/D) requirements and surcharging modeling results. Design flow will be calculated at flow depths that correspond to the City’s d/D design requirements. Task 4 - Documenta�on of Analysis, Cost Implica�ons, and Recommenda�ons • AE2S will write and deliver a technical memorandum (delivered as a pdf document). • Documentation will include: o Summary of model input parameters for existing and increased density conditions. o Summary of trunk sewers that exceed hydraulic performance requirements (d/D) for the scenario. o General recommendations will be provided to address issues identified at locations of increased density. Recommendations may include:  Policy discussion on impacts of further increased density beyond current Future Land Use Plan  Further analysis to refine sizing needs  Further flow monitoring  Maximum allowable densities • Incorporate increased density analysis findings into overall Facility Plan and Graphical Executive Summary Task 5 - Facility Plan Public Engagement Coordina�on • AE2S will coordinate with City’s communication team to prepare public engagement templates. • AE2S will review public comment and incorporate into draft Facility Plan Proposed Fee Scott Buecker Zach Magdol Donovan Voeller Aidan Scheffel Rate ($/hr)$254 $220 $190 $135 Task Description Hours Hours Hours Hours 1 Meetings 6 12 14 2 Model Network Update 8 60 25 3 Model Scenario Development & Analysis 2 14 36 40 4 Documentation and Recommendations 6 32 40 12 5 Public Engagement Coordination 8 8 Subtotal Hours 14 74 158 77 Subtotal Fee $3,556 $16,280 $30,020 $10,395 $60,251 Hydraulic Model Updates & Public Engagement Total for Increased Density Modeling 245 Memorandum REPORT TO:City Commission FROM:Tom Rogers, Senior Planner Chris Saunders, Community Development Manager Erin George, Deputy Director of Community Development Anna Bentley, Director of Community Development SUBJECT:Resolution 5434, Annexation of 0.54 Acres and Adjacent Right-of-way, the 2103 Bridger Drive Annexation, Application 21123 MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Adopt Resolution 5434. 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 applicants and property owners, Kristal Jones and Brandn Green, seek to annex three parcels totaling roughly 0.54 acres into the City limits and establish initial zoning of R-2, Residential Moderate Density. The property is currently zoned “Residential Suburban” within the county. Nearby municipal zoning includes Residential Single-Household Low Density (R-1) to the north and Residential Suburban (R-S) to the south. Land to the east and west is unincorporated and zoned “Residential Suburban” within the county. The future land use map in the Bozeman Community Plan 2020 designates the property as “Urban Neighborhood” which the R-2 district serves to implement. There is an existing home and above garage dwelling on the parcel. The Commission held a public hearing on the request on September 21, 2021 and acted to approve the application. The applicant finalized all required terms of annexation including easements and signed the annexation agreement. The associated zoning Ordinance 2121 accompanies this Resolution of annexation. UNRESOLVED ISSUES:None ALTERNATIVES:As determined by the Commission. 246 FISCAL EFFECTS:No unusual fiscal effects have been identified. No presently budgeted funds will be changed by this Annexation or Zone Map Amendment. Future development will incur costs and generate review according to standard City practices. Attachments: 21123 2103 Bridger Drive Annex Resolution 5434.pdf 2103 Bridger Drive ZMA-ANNEX-2022.07.07.pdf Report compiled on: June 12, 2023 247 Version April 2020 Page 1 of 3 RESOLUTION 5434 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, PROVIDING FOR THE ANNEXATION OF CERTAIN CONTIGUOUS TRACTS OF LAND, HEREINAFTER DESCRIBED, TO THE CORPORATE LIMITS OF THE CITY OF BOZEMAN AND THE EXTENSION OF THE BOUNDARIES OF THE CITY OF BOZEMAN SO AS TO INCLUDE SAID CONTIGUOUS TRACTS, KNOWN AS THE 2103 BRIDGER DRIVE ANNEXATION, APPLICATION 21123. WHEREAS, the City of Bozeman received a petition for annexation from Vivian Helvik requesting the City Commission to extend the boundaries of the City of Bozeman so as to include an area of land containing approximately 0.54, addressed at 2103 Bridger Drive; and WHEREAS, an annexation staff report was prepared in accordance with the Commission's goals and policies for annexation and was presented to the Commission on September 21, 2021; and WHEREAS, a public meeting on said annexation petition was duly noticed and held on September 21, 2021; and WHEREAS, the City did not receive any written protest from the real property owners of the area to be annexed; and WHEREAS, on June 27, 2023, the Commission received the executed annexation agreement addressing all recommended terms of annexation; and WHEREAS, the provision of available services, including, but not limited to, streets, 248 Version April 2020 Page 2 of 3 rights-of-way, easements, water rights or cash-in-lieu, waivers of protest against creation of SID's, and water and sewer hookup fees, to said contiguous tracts as described is the subject of a written agreement between the City and the Landowner; and WHEREAS, the Bozeman City Commission hereby finds that the annexation of this contiguous tract is in the best interests of the City of Bozeman and the inhabitants/owners thereof. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: Section 1 That it is hereby declared that, pursuant to Title 7, Chapter 2, Part 46, Mont. Codes Ann., the following-described property, which is contiguous to the municipal boundaries of the City of Bozeman, be annexed to the City of Bozeman and that the boundaries of said City shall be extended so as to embrace and include such approximately 0.54 acres, to wit: Legal Description 2103 Bridger Drive and more accurately described as Lots 14, 15, and 16, Ed Vogel Subdivision No. 1, [Plat E-47], according to the plat thereof, on file and of record in the office of the Clerk and Recorder, Gallatin County Montana; and located in the Southeast Quarter of Section 32, Township 1 South, Range 6 East, Township 1 South, Range 6 East, of P.M.M., City of Bozeman, Gallatin County, Montana. More particularly described as: Beginning at the northeast earner of said Lot 14; thence southerly 179'55'00", assumed azimuth from north, 323.10 feet along the east line of said Lot 14; thence westerly 269'55'00" azimuth 75.00 feet along the south line of said Lot 14, Lot 15 and Lot 16; thence northerly 359"55'00" azimuth 323.10 feet along west line of said Lot 16; thence easterly 089"55'00" azimuth 75.00 feet along the north line of said Lot 16, Lot 15 and Lot 14 to the point of beginning. 0.54 acres or 23,522 square feet. Subject to existing easements. All as depicted on the 2103 BRIDGER DRIVE Annexation Map. 249 Version April 2020 Page 3 of 3 Section 2 The effective date of this annexation is June 27, 2023. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 27th day of June, 2023. ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 250 251 Memorandum REPORT TO:City Commission FROM:Jon Henderson, Strategic Services Director SUBJECT:Resolution 5497, Authorizing the City Manager to Sign Prime Change Order 3 and Guaranteed Maximum Price Amendment 5 with Martel Construction, Inc. for the Construction of the Bozeman Public Library Renovation Project MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Approve Resolution 5497, authorizing prime change order #3 and guaranteed maximum price amendment #5 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 February 7, 2023 the City Commission approved Resolution 5476 authorizing Guaranteed Maximum Price Amendment #4 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) resulting in an increase of $11,467 to the overall Guaranteed Maximum Price. Changes that will be addressed with this amendment include drywall crack repair, storefront jamb replacement, floor grate modifications, second floor paint, second floor insulation, second floor carpeting, and additional fire sprinkler heads. 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 an increase of $11,467 to the overall Guaranteed Maximum Price to be covered using contingency funds within the existing project budget as authorized by the City Commission. Attachments: 252 Resolution 5497.pdf Prime Change Order #3.pdf Guaranteed Maximum Price Amendment No. 5 for Public Library.pdf Report compiled on: June 15, 2023 253 Version April 2020 RESOLUTION 5497 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, WHEREAS, the City Commission did, on February 7, 2023, authorize Guaranteed Maximum Price (GMP) Amendment #4 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 #5 for Construction of the Bozeman Public Library Renovation Project, as contained in Prime Change Order #3, 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 27th day of June 2023. ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: 254 Version April 2020 ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 255 January 26, 2023 City of Bozeman PO Box 1230 Bozeman, MT 59715-5801 ATTN:Jon Henderson Martel COR # PROJECT:Bozeman Public Library SUBJECT:Drywall Crack Repair 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 half CONSTRUCTION CONTINGENCY and half OWNER CONTINGENCY to cover the increased cost of:19,848$ 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. 9 256 Spreadsheet ReportPage 1Bozeman Public Library - 3.11.20221/26/2023 2:42 PMGroupPhaseDescriptionTakeoff QuantityLabor AmountMaterial AmountSub AmountEquip AmountOther AmountTotal Amount01-0000GENERAL REQUIREMENTS101-0110Supervision2General Conditions Labor (including all fringeand insurance)2.00hour143*-*-1433 Supervision143143 GENERAL REQUIREMENTS14314309-0000FINISHES409-2500Gypsum Board5Drywall Repair and Patchls14,183--14,1836 Gypsum Board14,18314,18309-9100Paint Finishes7Interior Paintingls--4,200--4,2008 Paint Finishes4,2004,200 FINISHES18,38318,383Estimate TotalsDescriptionAmountTotalsHoursRateCost BasisCost per UnitPercent of TotalLabor143MaterialSubcontract18,383EquipmentOther18,52618,526General Liability Insurance176Performance Bond134Gross Receipts TaxBuilders Risk71Construction Fee941Construction Contingency1,32219,848Total19,848257 4524 Tacoma Ave , Sumner, Washington, 98390 T:253-863-0660 Fax: 253-863-0662 Run on:January 26, 2023 10:17 AM http://www.sesslerinc.com Rate 85.00 65.00 65.00 65.00 Total $170.00 $1,950.00 $1,690.00 $4,550.00 Total Hrs 2.00 30.00 26.00 70.00 $8,360.00Total Labor Labor $9,859.75Subtotal for Detail Description: $1,499.75Material Total: $8,360.00Labor Total: $2,055.55Equipment Total: $418.00Misc. Total: $14,183.30Total: $0.00Sub Trade Total: $0.00Cleanup Total: FOREMAN SUPERVISION INTERIOR FRAMING GYPSUM WALLBOARD HANGING GYPSUM WALLBOARD FINISHING Unit Price Total 093 V Expansion Joint Beadex Super Wide Corner Bead A/P "RED" Joint Compound 5/8" TYPE X DRYWALL SCREWS (Box) $1,140.00 $129.38 $161.00 $51.34 $18.03 Quantity 50.00 25.00 10.00 2.00 0.17 EA PCS EA SHT BOX UOM 10' 10' BOX 4X12 1 BOX Size LF LF EA MSQFT EA 2.28 .5175 16.10 534.75 109.25 $1,499.75Total Material Material To: SESS-00001 Jan 11, 2023Date Job #22050 Martel Construction 1203 South Church Avenue Project:Bozeman Public Library Bozeman, MT 59715 626 E Main Street Bozeman, MT 59715 External/RCO#ADD-CJS REQUEST FOR CHANGE ORDER Ref.# $1,850.00Markup: 15.00% Total Total SMALL TOOLS 3% SAFETY 2% EQUIPMENT RENTAL 20% $250.80 $167.20 $2,055.55 $418.00 $2,055.55 Total Miscellaneous Charges Total Other Equipment Charges Total Miscellaneous Charges Total Other Equipment Charges $12,333.30Sub Total: Add CJ-093 on Level 2 & Patch Cracks @ existing Walls ALL ALL ALL ALL ALL SubSection SubSection ALL ALL ALL ALL SESSLERGC Ref# Page 1 of 2 258 4524 Tacoma Ave , Sumner, Washington, 98390 T:253-863-0660 Fax: 253-863-0662 Run on:January 26, 2023 10:17 AM http://www.sesslerinc.com Sub's Comments: This proposal is priced with the understanding that all Framing and GWB will be installed and firetaped prior to Mechanical and Electrical work, if applicable. Any existing Mechanical and Electrical items must be removed before this extra work begins. If this work proceeds in a sequence other than defined above, there will be additional impact and other costs to the extra work and potentially the original contract work, as well as a possible impact to the schedule necessitating the need for a further time extension. This proposal does not include any amount for changes in the sequence of work, delays, disruptions, rescheduling, extended home office overhead, schedule acceleration, and / or impact costs. The right is expressly reserved to make claim for any or all of these and related items of cost, in accordance with the provisions of the Contract, prior to the final settlement of this Contract. Sessler reserves and does not waive all of its rights regarding prior notices and claims. A notice to proceed, a CCD or a signed change order for this work will indicate acceptance of the above pricing and conditions. This additional work will extend durations at this area of the building. The additional work may affect the critical path. 259 Another Peters Painting Daniel G. Peters Address: 457 Violet Rd, Bozeman, MT. 59718 (All labor and equipment will be supplied by Another Peters Painting) (Unless otherwise stated materials are included in bid pricing) Phone: 406.586.6952 - Cell: 406.579.2753 - Fed ID#30-0725907 E-mail: anotherpeterspainting@gmail.com Painting Bid Bid # Labor and Equipment Estimates Subtotal Labor $4,200.00 Materials Use Estimate Subtotal Materials $0.00 Total Bid Amount Interior New Construction Painting 0126233 Thank you for giving us this opportunity to bid your project. Please let us know if you have any questions or visit our website for more information at . If you would like to have us schedule your project please call or e-mail anytime. We look forward to hearing from you soon! Thanks, Daniel Peters Bid Details Totals Another Peters Painting Owner/Client: Address: Phone: Work Phone: Email: Project Address: Date: Inteiror Martel Construction 1203 S. Church, Bozeman, MT 59715 406-586-8585 Bozeman Public Library, Bozeman, MT 1/26/23 - Prime as needed and paint all walls with crack repair - Prime as needed and paint drywall repair in hallway $4,200.00 GWB ProMar 200 as per spec as per spec included mdaines@martelconstruction.com Surface Paint Type Paint Sheen Color Name Gallons Cost/Gallon Totals $4,200.00 anotherpeterspainting.com 260 LEVEL 1100' -0"787.9OPEN TOBEYONDEXISTING CHILDREN'S ART, TO REMAINPT-2BRB-1BSEE A800 SERIES FOR MILLWORK NOTATIONSLIGHT FIXTURES, TYP. REFER TO E SHEETSTRIM-2BWD-3A4A563WD-3A PANELING OVER KNEE WALLS -SEE INT DTLS -COORDINATE WITH MILLWORK DRAWINGSLEVEL 1100' -0"LEVEL 2114' -8"CDEFGEXISTING CHILDREN'S ART, TO REMAINSSF-2AFWP-2PT-2BPT-2BPT-2BOPEN TO GALLERYOPEN TO BEYONDEXISTING ELEVATOR DOOR, NO CHANGESEXISTING BASE TO REMAIN116.1WDB-1ALIGHT FIXTURES, TYP. REFER TO E SHEETSSEE A800 SERIES FOR MILLWORK NOTATIONS2' - 10"1' - 0"EXISTING WOOD, TO REMAINEXISTING GUARDRAIL,NO CHANGES1A563ALIGNSHELVING N.I.C., SHOWN FOR REFERENCE ONLYLIGHT FIXTURES, TYP. REFER TO E SHEETSNEW FIRE STROBE, SEE E SHEETSWDB-1AVENDING MACHINES, BY OTHERS -COORDINATE WITH OWNER7' - 0"5LEVEL 1100' -0"LEVEL 2114' -8"787.9OPEN TO BEYONDPT-2BPT-2BEXISTING GUARDRAIL, NO CHANGESWDB-1AWDB-1ASEE A800 SERIES FOR MILLWORK NOTATIONSSHELVING SHOWN FOR REFERENCE ONLYLEVEL 1100' -0"DESEE A800 SERIES FOR MILLWORK NOTATIONSLIGHT FIXTURES, TYP. REFER TO E SHEETSSEE A800 SERIES FOR MILLWORK NOTATIONSWDB-1AWDB-1AWD-3AWD-3AWD-3A PANELING OVER KNEE WALLS -SEE INT DTLS -COORDINATE WITH MILLWORK DRAWINGS12"7' - 1 1/8"LEVEL 1100' -0"LEVEL 2114' -8"DEFGG.9OPEN TO BEYONDOPEN TO BEYONDOPEN TO BEYONDPT-2BSEE A800 SERIES FOR MILLWORK NOTATIONSEXISTING GUARDRAIL,NO CHANGES3A5632A563WDB-1AWD-3AWDB-1AWD-3AWD-3A9A5634A563TYPTYPTYPTYPWD-3AC.J.C.J.C.J.CENTER ON GRID / COLUMN, TYP.OPEN TO BEYOND666LEVEL 2114' -8"HG.9JI.5G.1424A5616A563PT-2BEXISTING BASEPT-2BDrawing 2021 Copyright Meyer, Scherer & Rockcastle, Ltd. Drawing 2021 Copyright Meyer, Scherer & Rockcastle, Ltd.ISSUE / REVISIONI hereby certify that this plan, specification or report was prepared by me or under my direct supervision and that I am a duly Licensed Architect under the Laws of the State of Montana.Architect SealSignaturePrint NameDateLicense NoDateMarkDescription510 Marquette Avenue South, Suite 200Minneapolis, MN 55402 | 612.375.0336Dagmara LarsenARC-ARC-LIC-220201/27/2023 11:31:09 AMAutodesk Docs://2021005 Bozeman Public Library/2021005_R22_Architecture.rvtA502INTERIORELEVATIONSConstruction Documents2022.06.10Project No: 2021005BPLBozeman Public Library626 E Main St.Bozeman, MT 59715Architecture and InteriorsAssociate Architect2880 Technology Blvd W, Bozeman, MT, 59718 | 406.587.0721428 E Mendenhall St, Bozeman, MT 59715 | 406.219.2216Civil, Structural, Mechanical, Electrical, Plumbing, FireProtection, ITAudio / Visual1800 Deming Way #200, Middleton, WI 53562 | 608.223.9600Lighting Design1999 Broadway UNIT 2205, Denver, CO 80202 | 720.644.5044Landscape Architecture111 N Tracy Ave, Bozeman, MT 59715 | 406.587.48731/4" = 1'-0"A5024LIBRARY HUB 121 - EAST1/4" = 1'-0"A5021LIBRARY HUB 121 - NORTH1/4" = 1'-0"A5022LIBRARY HUB LOUNGE 121A - WEST1/4" = 1'-0"A5023BUSINESS CENTER 121B - SOUTH1/4" = 1'-0"A5025BUSINESS CENTER 121B - NORTH1 2022.06.10 Construction Documents5 2022.11.07 ASI-0046 Date 6 ASI-0051/4" = 1'-0"A5026MONTANA ROOM 201 - NORTH 261 LEVEL 2114' -8"23PT-2BPT-2BPT-2BWDB-1BEXISTING WOOD SHELVES TO REMAIN, NO CHANGESEXISTING BASEWDB-1BPT-2BA5638LEVEL 2114' -8"HJI.5G.14OPEN TOBEYONDPT-2BPT-2BWDB-1BEXISTING BASEEXISTING WOOD SHELVES TO REMAIN, NO CHANGESWDB-1B17A563EXISTING FIRE STROBES AND PAGING SPEAKERS ON THIS WALL TO REMAINPT-2BLEVEL 2114' -8"23OPEN TO BEYONDPT-2BPT-2BCENTER EMER LIGHT IN WALL. SEE E SHEETSWDB-1BCENTER TSTAT IN WALL. SEE M SHEETSGROUP SHADE AND LIGHTING CONTROLS AT PILASTERTOP OF EXISTING BULKHEAD TO REMAIN -V.I.FTIE INTO EXISTING FINISHES12A56313A563EDGE OF NEW F3 FURRING BEYONDROOF DRAIN LEADER IN EXISTING BULKHEAD. VERIFY ACTUAL LOCATION. REROUTE IF REQ'D TO MAINTAIN CONCEALED CONDITION PT-2BA5638A5635NEW LIGHT AT BULKHEADLEVEL 2114' -8"345PT-2BPT-2BPT-2BPT-2BPT-XX204205.1205.2GL-4GL-4EXISTING WOOD CASED STOREFRONT12' - 8" - R.O.NEW WOOD WALL CAP -MATCH EXISTING, SEE DETAILAS SCHED.2 SPACES - CENTER AS REQ'DAS SCHED.4' - 6"3' - 5"4" - TYP8' - 3"TIE NEW FINISH INTO EXISTINGSTFT-3SHELVING SHOWN FOR REFERENCE ONLYPT-2B10A56314A563CL POST IN WALL10A6014" - TYPWD-2ACASING, TYP. SEE DTLS15A563HSS3X3X3/16 EMBEDDED IN WALL -SEE DETAI. REF STRUCTURALTRANSFER DUCT -REF. MECHAT RETURNING WALL -REPAIR EXISTING AND PROVIDE NEW WOOD CAP DETAIL AT T.O. WALLLEVEL 2114' -8"3456787.99219216215OPEN TO BEYONDOPEN TO BEYONDOPEN TO BEYONDOPEN TO BEYONDPT-XXNEW EXTENTS OF MASONRY, TOOTH IN AND REPAIR EDGE OF BRK-1. MATCH COURSING AND GROUTMATCH EXISTING ADJACENT PAINTEXPANDED OPENING -REBUILD CMFS HEADERS AS REQ'D -PROVIDE NEW GWB-1 ABOVE AND TIE INTO EXISTING FINISHES13A56312A56316A563OPEN TO BEYONDMATCH EXISTING BASEPATCH EXISTING FINISHES OR PROVIDE NEW AS REQ'D FOR NEW WORK AT EXISTING PILASTERV.I.F.ALIGN WITH EXISTINGNEW CFMS HEADERS AT EXPANDED OPENINGSEXISTING MEP TO REMAINEXISTING MEP TO REMAIN17' - 2"18' - 0"6' - 4"13' - 8"6' - 4"13' - 8"6' - 4"13' - 8"OPEN TO BEYONDC.J.C.J.C.J.C.J.C.J.C.J.C.J.C.J.6LEVEL 2114' -8"HPT-2BOPEN TO BEYONDWD-1BGL-4GL-4GL-4GL-4GL-4GL-42' - 0"3' - 8"3' - 4"9' - 0"WD-2ACASING, TYP. SEE DETAILS4" - TYP.10' - 9" - R.O. (3 EQ PANELS)PT-XXSTFT-311A6015A6017A601TYPTYPTYPLEVEL 2114' -8"HPT-2BWDB-1BOPEN TO BEYONDART-117A5639' - 0"4"8' - 8"LEVEL 2114' -8"5OPEN TO BEYOND210WDB-1B6' - 8" - R.O.AS SCHED. +/-4" - TYP+/- AS SCHED.GL-1GL-4GL-4STFT-3WD-2ACASING, TYP. SEE DETAILS9' - 0"5A6016A601TYPTYPLEVEL 2114' -8"4209WDB-1BPT-2BGL-4GL-4GL-4AS SCHED. +/- 4" - TYP.9' - 0"6' - 2" - R.O.STFT-3AS SCHED.Drawing 2021 Copyright Meyer, Scherer & Rockcastle, Ltd. Drawing 2021 Copyright Meyer, Scherer & Rockcastle, Ltd.ISSUE / REVISIONI hereby certify that this plan, specification or report was prepared by me or under my direct supervision and that I am a duly Licensed Architect under the Laws of the State of Montana.Architect SealSignaturePrint NameDateLicense NoDateMark Description510 Marquette Avenue South, Suite 200Minneapolis, MN 55402 | 612.375.0336Dagmara LarsenARC-ARC-LIC-220201/27/2023 11:31:10 AMAutodesk Docs://2021005 Bozeman Public Library/2021005_R22_Architecture.rvtA503INTERIORELEVATIONSConstruction Documents2022.06.10Project No: 2021005BPLBozeman Public Library626 E Main St.Bozeman, MT 59715Architecture and InteriorsAssociate Architect2880 Technology Blvd W, Bozeman, MT, 59718 | 406.587.0721428 E Mendenhall St, Bozeman, MT 59715 | 406.219.2216Civil, Structural, Mechanical, Electrical, Plumbing, FireProtection, ITAudio / Visual1800 Deming Way #200, Middleton, WI 53562 | 608.223.9600Lighting Design1999 Broadway UNIT 2205, Denver, CO 80202 | 720.644.5044Landscape Architecture111 N Tracy Ave, Bozeman, MT 59715 | 406.587.48731/4" = 1'-0"A5034MONTANA ROOM 201 - EAST1/4" = 1'-0"A5033MONTANA ROOM 201 - SOUTH1/4" = 1'-0"A5032MONTANA ROOM 201 - WEST1/4" = 1'-0"A5039UPPER READING ROOM 203 - EAST1/4" = 1'-0"A5031UPPER READING ROOM 203 - WEST1/4" = 1'-0"A5036LOUNGE 208 - SOUTH1/4" = 1'-0"A5038LOUNGE 208 - NORTH1/4" = 1'-0"A5035HALLWAY 208 - EAST1/4" = 1'-0"A5037LOUNGE 208 - WEST1 2022.06.10 Construction Documents6 Date 6 ASI-005 262 A101S - LEVEL ONE -SOUTH.pdf (26% of Scale); Takeoff in Active Area: All Areas; Add CJ-093 to Existing Walls; MT-OST2022 Q1; 1/11/2023 07:53 AM 263 January 26, 2023 City of Bozeman PO Box 1230 Bozeman, MT 59715-5801 ATTN:Jon Henderson Martel COR # PROJECT:Bozeman Public Library SUBJECT:Storefront Jamb Replacement 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:1,363$ 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. 10 264 Spreadsheet Report Page 1 Bozeman Public Library - 3.11.2022 1/30/2023 8:29 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) 1.00 hour 72 *-*-723 Supervision 72 72 GENERAL REQUIREMENTS 72 72 08-0000 DOORS & WINDOWS4 08-1100 Steel Doors & Frames5 Metal Door Frames - double 1.00 ls 1,200 --1,2006 Steel Doors & Frames 1,200 1,200 DOORS & WINDOWS 1,200 1,200 Estimate Totals Description Amount Totals Hours Rate Cost Basis Cost per Unit Percent of Total Labor 72 Material Subcontract 1,200 Equipment Other 1,272 1,272 General Liability Insurance 12 Performance Bond 9 Gross Receipts Tax Builders Risk 5 Construction Fee 65 Construction Contingency 91 1,363 Total 1,363 265 Change Order Order#: 2 - Door Frames Project: To: Martel Construction, Inc.* 1203 South Church Bozeman MT 59715 Bozeman Public Library Remodel 2022 626 E Main Street Bozeman MT 59715 362,545.00 The contractor agrees to perform and the owner agrees to pay for the following changes to this contract. Requested Amount of Change -64,800.00 The original Contract Sum was Plans Attached 297,745.00 Contractor: Date: Negative changes will lower the overall contract price requiring no additional payment by owner. Order Date: Ordered By: Customer Order: 01/28/2023 14 Cody Armknecht Net change by previous Change Orders The Contract Sum prior to this Change Order The Contract Sum will be changed by this Change Order The new Contract Sum including this Change Order will be 298,945.00 15456 1,200.00 1,200.00 PO Box 10067 Bozeman MT 59719 (406) 586-0581 Specifications Attached Description of Work Amount Add new door frames to to 2 ea replacement door pairs 1,200.00 266 February 8, 2023 City of Bozeman PO Box 1230 Bozeman, MT 59715-5801 ATTN:Jon Henderson Martel COR # PROJECT:Bozeman Public Library SUBJECT:Floor Grate 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 GMP in the amount of:10,215$ 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. 11 267 Spreadsheet Report Page 1 Bozeman Public Library - 3.11.2022 2/8/2023 8:59 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) 8.00 hr 572 *-*-5723 Supervision 572 572 01-0150 Project Management4 Cost Management Labor (including all fringe and insurance) 2.00 hr 133 *-*-1335 Project Management 133 133 GENERAL REQUIREMENTS 706 706 03-0000 CONCRETE6 03-1330 Recessed Slabs7 Concrete floor prep (plywood, self leveler, labor hours) 315.00 sf 2,181 743 ---2,9248 Recessed Slabs 2,181 743 2,924 CONCRETE 2,181 743 2,924 09-0000 FINISHES9 09-6800 Carpet10 Carpet walk off squares and transitions 1.00 ls --3,400 --3,40011 Carpet 3,400 3,400 FINISHES 3,400 3,400 12-0000 FURNISHINGS12 12-4800 Floor Mats & Frames13 GRATE-1 Roll-Up Walk Off Mat - West Vestibule 206.00 sf (891)(9,822)*--(10,713)14 GRATE-1 Roll-Up Walk Off Mat - North Vestibule 109.00 sf (472)(5,374)--(5,846)15 Floor Mats & Frames (1,363)(15,196)(16,559) FURNISHINGS (1,363)(15,196)(16,559) Estimate Totals Description Amount Totals Hours Rate Cost Basis Cost per Unit Percent of Total Labor 1,523 Material (14,453) Subcontract 3,400 Equipment Other (9,530)(9,530) General Liability Insurance (92) Performance Bond (70) Gross Receipts Tax Builders Risk (37) Construction Fee (486) Construction Contingency (685)(10,215) Total (10,215) 268 269 February 14, 2023 City of Bozeman PO Box 1230 Bozeman, MT 59715-5801 ATTN:Jon Henderson Martel COR # PROJECT:Bozeman Public Library SUBJECT:2nd Floor Paint 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 an INCREASE in the GMP in the amount of:4,771$ 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. 12 270 Spreadsheet Report Page 1 Bozeman Public Library - 3.11.2022 2/14/2023 8:38 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) 2.00 hr 143 *-*-1433 Supervision 143 143 01-0150 Project Management4 Cost Management Labor (including all fringe and insurance) 2.00 hr 133 *-*-1335 Project Management 133 133 GENERAL REQUIREMENTS 276 276 09-0000 FINISHES6 09-9100 Paint Finishes7 Interior Painting 1.00 ls --4,175 --4,1758 Paint Finishes 4,175 4,175 FINISHES 4,175 4,175 Estimate Totals Description Amount Totals Hours Rate Cost Basis Cost per Unit Percent of Total Labor 276 Material Subcontract 4,175 Equipment Other 4,451 4,451 General Liability Insurance 43 Performance Bond 33 Gross Receipts Tax Builders Risk 17 Construction Fee 227 Construction Contingency 320 4,771 Total 4,771 271 Another Peters Painting Daniel G. Peters Address: 457 Violet Rd, Bozeman, MT. 59718 (All labor and equipment will be supplied by Another Peters Painting) (Unless otherwise stated materials are included in bid pricing) Phone: 406.586.6952 - Cell: 406.579.2753 - Fed ID#30-0725907 E-mail: anotherpeterspainting@gmail.com Painting Bid Bid # Labor and Equipment Estimates Subtotal Labor $7,825.00 Materials Use Estimate Subtotal Materials $0.00 Total Bid Amount Interior New Construction Painting 0213231 Thank you for giving us this opportunity to bid your project. Please let us know if you have any questions or visit our website for more information at . If you would like to have us schedule your project please call or e-mail anytime. We look forward to hearing from you soon! Thanks, Daniel Peters Bid Details Totals Another Peters Painting Owner/Client: Address: Phone: Work Phone: Email: Project Address: Date: Inteiror Martel Construction 1203 S. Church, Bozeman, MT 59715 406-586-8585 Bozeman Public Library, Bozeman, MT 2/13/23 - Prime as needed and paint all walls with crack repair - Prime as needed and paint drywall repair in hallway $4,200.00 - Paint 2 coats new color on large w/crack repair $750.00 - Paint 2 coats new color on 2nd floor common hallway walls and 1st and 2nd floor half walls $2,875.00 GWB ProMar 200 as per spec as per spec included mdaines@martelconstruction.com Surface Paint Type Paint Sheen Color Name Gallons Cost/Gallon Totals $7,825.00 anotherpeterspainting.com 272 January 26, 2023 City of Bozeman PO Box 1230 Bozeman, MT 59715-5801 ATTN:Jon Henderson Martel COR # PROJECT:Bozeman Public Library SUBJECT:2nd Floor Insulation Jon, We propose to provide all labor, materials, and equipment required to perform the above mentioned work. Our lump sum quotation is based on our interpretation of the instructions and scope of work identified by the addendums. If we have misinterpreted this information in any way (omissions, etc.) please advise us prior to processing this quotation into a formal Change Order. Other wise, our interpretation shall stand as correct. We have not been directed to proceed with the work. At this time, we are hereby requesting 0 calendar days for a time extension Please note this proposal is valid for 15 days. Approval beyond that date may result in additional costs or delays. Our proposal is based on receipt of a signed Change Order within (25) calendar days. We are requesting an increase in the GMP to cover the increased cost of:8,730$ 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. 13 $6,099$6,099 OR $9,787 (see next two pages) 273 Spreadsheet Report Page 1 Bozeman Public Library - 3.11.2022 3/9/2023 11:28 AM Group Phase Description Takeoff Quantity Labor Amount Material Amount Sub Amount Equip Amount Other Amount Total Amount 01-0000 GENERAL REQUIREMENTS1 01-0110 Supervision2 General Conditions Labor (including all fringe and insurance) 4.00 hour 286 *-*-2863 Supervision 286 286 GENERAL REQUIREMENTS 286 286 07-0000 THERMAL & MOISTURE PROT.4 07-2120 Rigid Insulation5 Rigid Insulation 1,952.00 sf 3,140 5,709 --8,8496 Rigid Insulation 3,140 5,709 8,849 THERMAL & MOISTURE PROT.3,140 5,709 8,849 Estimate Totals Description Amount Totals Hours Rate Cost Basis Cost per Unit Percent of Total Labor 3,426 Material 5,709 Subcontract Equipment Other 9,135 9,135 General Liability Insurance 87 Performance Bond 66 Gross Receipts Tax Builders Risk 35 Construction Fee 464 Construction Contingency 652 9,787 Total 9,787 274 January 26, 2023 City of Bozeman PO Box 1230 Bozeman, MT 59715-5801 ATTN: Jon Henderson Martel COR # PROJECT:Bozeman Public Library SUBJECT:2nd Floor Carpet Cleaning Jon, We propose to provide all labor, materials, and equipment required to perform the above mentioned work. Our lump sum quotation is based on our interpretation of the instructions and scope of work identified by the addendums. If we have misinterpreted this information in any way (omissions, etc.) please advise us prior to processing this quotation into a formal Change Order. Other wise, our interpretation shall stand as correct. We have not been directed to proceed with the work. At this time, we are hereby requesting 0 calendar days for a time extension Please note this proposal is valid for 15 days. Approval beyond that date may result in additional costs or delays. Our proposal is based on receipt of a signed Change Order within (25) calendar days. We are requesting to use contingency to cover the increased cost of: 3,700$ 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. 14 275 January 26, 2023 City of Bozeman PO Box 1230 Bozeman, MT 59715-5801 ATTN:Jon Henderson Martel COR # PROJECT:Bozeman Public Library SUBJECT:Additional Fire Sprinkler Heads 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 contractor contingency to cover the cost of:2,232$ 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. 17 276 Spreadsheet Report Page 1 Bozeman Public Library - 3.11.2022 4/11/2023 4:53 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 01-0150 Project Management4 Project Manager 1.00 hr 67 --675 Project Management 67 67 GENERAL REQUIREMENTS 353 353 21-0000 FIRE SUPPRESSION6 21-0500 Fire Suppression7 Fire Suppression Systems 1.00 ls --1,730 --1,7308 Fire Suppression 1,730 1,730 FIRE SUPPRESSION 1,730 1,730 Estimate Totals Description Amount Totals Hours Rate Cost Basis Cost per Unit Percent of Total Labor 353 Material Subcontract 1,730 Equipment Other 2,083 2,083 General Liability Insurance 20 Performance Bond 15 Gross Receipts Tax Builders Risk 8 Construction Fee 106 Construction Contingency 149 2,232 Total 2,232 277 Change Order Proposal P.O. Box 5868 / Helena, MT 59604 406-495-1543 Phone / 406-443-3578 Fax TO: ____________________________________ ATTN: ____________________________________ PHONE: ____________________________________ EMAIL: ____________________________________ Change Request No: __________________________ Job Name: __________________________ ITM Job #: __________________________ Date of Proposal: __________________________ WORK TO BE DONE: DIRECT LABOR ESTIMATED ACTUAL Hours Rate Total Labor -Journeyman $ $ Labor -Apprentice $ $ $ $ $ $ SUBTOTAL LABOR $ MATERIAL ESTIMATED ACTUAL Quantity Unit Cost Total $ $ $ $ SUBTOTAL MATERIAL $ OTHER ESTIMATED ACTUAL Bonds, Insurance Permits $ Cleanup and Handling $ Consumables $ Project Management & Administration $ Safety Subcontracting $ Tools & Supplies $ Travel, Subsistence, Mileage $ Other / Miscellaneous $ SUBTOTAL $ Overhead $ Profit $ TOTAL PROPOSED CHANGE ORDER COSTS $ This change requires a time extension of day(s). Pricing void / subject to revision after . The costs represented in this Change Proposal include only those that can be identified at this time. No impact or delay costs are included. Should it be determined at a later date that the project has been impacted by multiple changes, delays, or other causes beyond our control, we are reserving our right to submit additional costs at such time. Submitted by: Kevin Briceno Approved by: Date: Date: 1101 Chestnut St | Helena, MT 59601 | Phone: 406.495-1543 Martel Construction 1 Mike Daines Bozeman Public Library 406-223-9011 S6683 mdaines@martelconstruction.com 4-11-2023 Add four upright heads to the space behind elevator. n 5 95.00 475.00 5 68.00 340.00 815.00 n 0.00 302.00 302.00 302.00 100.00 150.00 1,367.00 205.05 157.21 1,729.26 4-11-2023 15%1,572.05 10% 278 GUARANTEED MAXIMUM PRICE AMENDMENT (GMP) NO. 5 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 27th day of June 2023, 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 $234,607.00 Existing Conditions $44,768.00 Concrete $13,968.00 Masonry $19,500.00 Steel $50,401.00 Wood & Plastics $555,335.00 Thermal & Moisture Protection $56,578.00 Doors & Windows $359,921.00 Finishes $623,789.00 Specialties $2,202.00 Equipment $28,033.00 Furnishings $41,252.00 Fire Suppression $43,288.00 Plumbing $67,671.00 HVAC $110,350.00 Electrical $958,231.00 Communications $38,426.00 Site Improvements $3,034.00 Site Specific Requirements $152,990.00 Audio/Visual $211,518.00 Base Bid Subtotal $3,615,862.00 General Liability Insurance $35,330.00 Gross Receipts Tax $3,857.00 Builders Risk $14,290.00 Bond $26,992.00 Construction Fee $188,746.00 279 Construction Contingency $82,287.00 Base Bid Total $351,502.00 Pre-Construction Services Total $21,560.00 TOTAL GUARANTEED MAXIMUM PRICE $3,988,924.00 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 280 Memorandum REPORT TO:City Commission FROM:Jon Henderson, Strategic Services Director SUBJECT:Resolution 5499, Authorizing the City Manager to Sign Prime Change Order 1 and Guaranteed Maximum Price Amendment 3 with Martel Construction, Inc. for the Construction of the Fire Station 2 Relocation Project MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Approve Resolution 5499, authorizing prime change order #1 and guaranteed maximum price amendment #3 with Martel Construction, Inc., for construction of 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 March 28, 2023 the City Commission approved Guaranteed Maximum Price Amendment #2 for the construction of the Fire Station #2 Relocation 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) resulting in an increase of $117,300 to the overall Guaranteed Maximum Price. Changes that will be addressed with this amendment include fiber optic pathway changes, builders risk earthquake insurance, site work reconciliation, and non-potable irrigation allowance. 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 an increase of $117,300 to the overall Guaranteed Maximum Price to be covered within the existing project budget as authorized by the City Commission. Attachments: 281 Resolution 5499.pdf Prime Change Order #1.pdf Bozeman Fire Station #2 - Guaranteed Maximum Price Amendment No. 3.pdf Report compiled on: June 15, 2023 282 Version April 2020 RESOLUTION 5499 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, WHEREAS, the City Commission did, on March 28, 2023, authorize Guaranteed Maximum Price (GMP) Amendment #2 for relocation and construction of Fire Station #2 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 #3 for Construction of Fire Station #2, as contained in Prime Change Order #1, 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 27th day of June 2023. ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: 283 Version April 2020 ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 284 April 17, 2023 City of Bozeman - Fire Station # 2 575 West Kagy Blvd Bozeman, Montana 59715 ATTN: Jon Henderson Change Order Request No. COR 01B Pricing Request No.PR 001B PROJECT: Bozeman Fire Station # 2 SUBJECT: Fiber Optic Pathway Changes (2) 2" Raceway REFERENCE: Site Work - Fiber Optic Pathway Changes Dear : Jon Henderson, 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 Proposal Request(s). If we have misinterpreted this information in any way (omissions, etc.) please advise us. Other wise, our interpretation shall stand as correct. We have not been directed to proceed with the work per the terms of the contract.X We have proceeded with the Work per the terms of the contract. At this time, we are hereby requesting 0 calendar days for a time extension Please note this proposal is valid for (10) calendar days from this date and our proposal is based on receipt of a signed Change Order within (15) calendar days. We are adjusting the Construction Contingency in the amount of: We are requesting an Adjustment to the GMP (Owner's Contingency) in the Amount of:8,264.00$ If you have any questions, please call me at (406) 922-5508 Sincerely, MARTEL CONSTRUCTION, INC.City of Bozeman - Approval Mike Wilkinson - Martel Project Manager Jon Henderson - Strategic Services Director Enclosure(s) Estimate PDF CC.File 285 Martel Construction Spreadsheet Report Page 1 BFS2 COR 001B- Fiber Optic Pathway Changes 4/17/2023 5:16 PM Group Description Takeoff Quantity Labor Amount Material Amount Sub Amount Equip Amount Other Amount Total Amount 01-0000 GENERAL REQUIREMENTS1 Supervision2 Superintendent 4.00 hr 281 440 --7213 Supervision 281 440 721 Project Management4 Project Manager 4.00 hr 281 440 --7215 Project Management 281 440 721 Professional Surveying6 Sitework Staking by Professional Engineer 4.00 hr ---588 5887 Professional Surveying 588 588 GENERAL REQUIREMENTS 563 880 588 2,031 27-0000 COMMUNICATIONS8 Communications9 Communications Systems - Fiber Optic Re-Locate (original bid (2) 2") 500.00 lf --(13,100)--(13,100)10 Communications Systems - Fiber Optic (2) 2" HDPE Pathway (No Fiber included) 660.00 lf --18,730 --18,73011 Communications 5,630 5,630 COMMUNICATIONS 5,630 5,630 Estimate Totals Description Amount Totals Hours Rate Labor 563 8.000 hrs Material 880 Subcontract 5,630 Equipment 8.000 hrs Other 588 7,661 7,661 General Liability Insurance 74 0.890 % Gross Receipts Tax 77 1.000 % Bond 59 0.750 % Construction Fee 393 5.000 % 603 8,264 Total 8,264 286 Quote Date Town Job Name P.O. Box 8688, Kalispell, MT 59904 Job Location Phone Description Quantity Price 660.00 7,920.00$ 1220.00 3,660.00$ 6.00 2,400.00$ 2.00 500.00$ 2.00 1,500.00$ 2.00 2,500.00$ 1.00 250.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 18,730.00$ Authorized Vac truck to expose existing utilities BILLED PER FOOT BILLED PER HOUR 12.00 3.00 400.00 250.00 Soil Condition 30x48x36 Vault BILLED PER FOOT 750.00 Trench and place 2-2" conduits 2" HDPE Place Vault Remove sidewalk panel ***CONCRETE TO BE REPLACED BY OTHER*** Place conduit in existing vault/Pull Box ****PERMITS PROVIDED BY OTHER**** Price each 4/10/23 575 W Kagy Bozeman Fire Station 2 Fiber Reroute Bozeman 1,250.00 250.00 ****If there is still frost in the ground additional frost charges, haul off, and select fill will be charged**** Date of Acceptance__________________________________________ Signature____________________________________________________________________ Acceptance of Proposal - The above prices, specifications, and conditions are satisfactory and are hereby accepted. You are authorized to do work as specified. Payment will be made as outlined above.Signature____________________________________________________________________ Signature____________________________________________________________________ We Propose hereby to furnish services - Complete in accordance with above specifications, for the sum of: Proposal Submitted To Martel Construction ATTN: Mike Wilkinson Street Note: This proposal may withdrawn by us if not accepted within 30 days. City, State, Zip All work is guaranteed to be as specified. All work to be completed in a workmanlike manner according to standard practices. Any alteration or deviation from above specifications involving extra costs will be executed only upon written orders, and will become an extra charge over and above the estimate. Miscellaneous: Customer Responsible for all permits unless stated otherwise. RMC will provide Customer with itemized bore log. In extreme conditions RMC will make three attempts, if RMC has not yet been successful and customer would like us to continue, an additional daily rate will be charged for crew and equipment of $5,000.00 per day (above and beyond the footage obtained if successful) until either the bore is completed or we are instructed to pull off by customer. Payment Terms: Net 10 1 287 Quote Date Town Job Name P.O. Box 8688, Kalispell, MT 59904 Job Location Phone Description Quantity Price 500.00 6,000.00$ 1000.00 3,000.00$ 4.00 1,600.00$ 2.00 500.00$ 1.00 750.00$ 1.00 1,250.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 13,100.00$ Authorized Vac truck to expose existing utilities BILLED PER FOOT We Propose hereby to furnish services - Complete in accordance with above specifications, for the sum of: BILLED PER HOUR 12.00 3.00 400.00 250.00 Soil Condition 30x48x36 Vault ****IF NEEDED**** BILLED PER FOOT 750.00 Trench and place 2-2" conduits ****CONDUIT TO BE STUBBED UP AT EACH BUILDING*** 2" HDPE Place Vault ****IF NEEDED**** Place conduit in existing vault ****IF NEEDED**** ****PERMITS PROVIDED BY OTHER**** 1,250.00 Price each 2/10/23 575 W Kagy ****If there is still frost in the ground additional frost charges, haul off, and select fill will be charged**** Date of Acceptance__________________________________________ Signature____________________________________________________________________ Acceptance of Proposal - The above prices, specifications, and conditions are satisfactory and are hereby accepted. You are authorized to do work as specified. Payment will be made as outlined above.Signature____________________________________________________________________ City, State, Zip All work is guaranteed to be as specified. All work to be completed in a workmanlike manner according to standard practices. Any alteration or deviation from above specifications involving extra costs will be executed only upon written orders, and will become an extra charge over and above the estimate. Miscellaneous: Customer Responsible for all permits unless stated otherwise. RMC will provide Customer with itemized bore log. In extreme conditions RMC will make three attempts, if RMC has not yet been successful and customer would like us to continue, an additional daily rate will be charged for crew and equipment of $5,000.00 per day (above and beyond the footage obtained if successful) until either the bore is completed or we are instructed to pull off by customer. Bozeman Fire Station 2 Fiber Reroute Bozeman Signature____________________________________________________________________ Payment Terms: Net 10 Proposal Submitted To Martel Construction ATTN: Mike Wilkinson Street Note: This proposal may withdrawn by us if not accepted within 30 days. 1 288 289 April 20, 2023 City of Bozeman - Fire Station # 2 575 West Kagy Blvd Bozeman, Montana 59715 ATTN: Jon Henderson Change Order Request No. COR 002 Pricing Request No. PROJECT: Bozeman Fire Station # 2 SUBJECT: Builder Risk Earthquake Insurance REFERENCE: Earthquake Insurance Quote for Builders Risk Dear : Jon Henderson, We propose to provide all labor, materials, and equipment required to perform the above mentioned work. Our lump sum quotation is based on our interpretation of the instructions and scope of work identified by the Proposal Request(s). If we have misinterpreted this information in any way (omissions, etc.) please advise us. Other wise, our interpretation shall stand as correct. We have not been directed to proceed with the work per the terms of the contract.X We have proceeded with the Work per the terms of the contract. At this time, we are hereby requesting 0 calendar days for a time extension Please note this proposal is valid for (10) calendar days from this date and our proposal is based on receipt of a signed Change Order within (15) calendar days. We are adjusting the Construction Contingency in the amount of: We are requesting an Adjustment to the GMP (Owner's Contingency) in the Amount of:23,130.00$ If you have any questions, please call me at (406) 922-5508 Sincerely, MARTEL CONSTRUCTION, INC.City of Bozeman - Approval Mike Wilkinson - Martel Project Manager Jon Henderson - Strategic Services Director Enclosure(s) Estimate PDF CC.File 290 Martel Construction Spreadsheet Report Page 1 BFS2 COR 001B- Fiber Optic Pathway Changes 4/20/2023 3:06 PM Group Description Takeoff Quantity Labor Amount Material Amount Sub Amount Equip Amount Other Amount Total Amount 01-0000 GENERAL REQUIREMENTS1 General Insurance2 Builders Risk Insurance - Earthquake Seperate Policy 1.00 ls -23,130 --23,1303 General Insurance 23,130 23,130 GENERAL REQUIREMENTS 23,130 23,130 Estimate Totals Description Amount Totals Hours Rate Labor Material 23,130 Subcontract Equipment Other 23,130 23,130 General Liability Insurance Gross Receipts Tax Bond Construction Fee 23,130 Total 23,130 291 Insurance Quote Dear: Tiffany Obie, First West, Inc. Attached please find Carrier quotation RPS has secured on your behalf for the below mentioned risk. Please review the attached and below carefully as coverage described herein may be different from the original application submitted, or prior policy if applicable. Insured: Martel Construction, Inc. Insured ID: 56572545 RPS Reference #: 5694296A Mailing Address: 121 North Rouse AVE Bozeman, MT 59715 Physical Address: 575 West Kagy Blvd, Bozeman, MT 59715 Carrier: Underwriters at Lloyd's, London / Non-Admitted AM Best Rating: A XV Policy Period: 4/1/2023 to 6/30/2024 Coverage: Earthquake TIV: per Carrier terms attached Limit: per Carrier terms attached Rate: per Carrier terms attached Policy Premium:$21,500.00 Fees (fully earned):Broker Fee - RPS $100.00 Carrier Policy Fee $600.00 Taxes:$607.75 Surplus Lines Tax $322.50 Fire Marshal Tax Home State:MT TOTAL:$23,130.25 THE PREMIUM ABOVE DOES NOT INCLUDE TERRORISM COVERAGE. IF THE INSURED ELECTS TO PURCHASE TERRORISM COVERAGE THE ADDITIONAL PREMIUM WILL BE $10,750.00 PLUS TAX OF $456.88. Minimum Earned Premium: 100% Conditions/Subjectivities: per Carrier terms attached Please note: ·You are responsible for reviewing and explaining the coverage to the client, including any options, available or not from our office. The terms hereon are not fully described and no assumption should be made as to the adequacy of the coverage of the risk to the client. ·You are not an Agent of the insurer, and as such, cannot bind coverage nor make any commitments on behalf of the 292 insurer, nor of us. This policy cannot be assigned to another without the written consent of the insurer or their Agent. ·Insurance companies will not approve binding until all subjectivities (except inspections) have been received and accepted. ·This document is a representation of the Carrier's quotation and is subject to all premiums, limits, terms, conditions and exclusions as set forth by the carrier. ·If this policy is issued on a non-admitted basis, your office is responsible for completing, collecting and delivery to RPS any required surplus lines forms, taxes and fees from the insured at time of Binding. RPS will remit the applicable taxes and forms to the state. If this policy is subject to the surplus lines laws in your state, you should make every effort to comply with any special provisions and regulations of your state. ·You are responsible for the issuance and review of Certificates of Insurance (COI). COIs cannot amend or alter the terms provided herein. ·All premiums and any fees are due to RPS within 20 days of binding unless otherwise stipulated. Accounts with payments that are overdue and are not received within this time frame are subject to cancellation. ·By binding you commit to any provisions contained hereon, such as Minimum Earned Premiums. There are no flat cancellations allowed. Please advise in writing if you would like to bind coverage per the attached terms and conditions. Should you have any questions please give us a call. Thank you for the opportunity to work on your business! Sincerely, Russ Akin 293 MONTANA SURPLUS LINES SUBMISSION FORM NOTICE: Complete entire submission form. Do not leave any blanks. Write “NA" if any question is “not applicable.” Incomplete submission forms will be returned. INSURED:Martel Construction, Inc.POLICY NUMBER: MT ADDRESS:575 West Kagy Blvd Bozeman, MT 59715 FILED ON A BINDER Yes No PART 1: Affirmation of Produciung Insurance Producer Section The undersigned hereby affirms that the insurance, which is subject to this affirmation, is in accordance with Title 33, Section 33-2-301 et seq., MCA, the Surplus Lines Insurance Law of the State of Montana. The insurance which is the subject of this affirmation was not procured for: 1) The purpose of securing advantages as to the terms of the insurance contract and; 2) the purpose of obtaining a lower premium rate than would be accepted by the authorized insurer except as provided in MCA 33-2-302 (2)(a)(iii)(A). Furthermore: 1) The insurance which is the subject of this affirmation is a line of insurance which appears on the most recent Approved Risk List (ARL) issued by the Commissioner of Insurance; or 2) Immediately before requesting from an unauthorized insurer the insurance which is the subject of this affirmation, I endeavored diligently and unsuccessfully to secure equivalent coverage from authorized insurers holding certificates of authority to transact this line or the full amount of the line of insurance in the State of Montana. and; 3) I am aware that prior to placing the insurance that the surplus lines insurer with whom the insurance is placed is not authorized in this state and is not subject to the same supervision as an authorized insurer; and in the event of the insolvency of the surplus lines insurer, the property and casualty guaranty fund of the state will not pay losses under the surplus lines coverage Is the risk included on the most recent Approved Risk List? YES or NO If so, in which category? (Ex: GL-01) If not included on the most recent ARL describe 1) Type of Risk 1a) EXPLAIN in detail why insurance for this risk is unavailable from an authorized insurer: (COMPLETE SENTENCE) 2)Indicate prior insurer:2a) Explain why the prior insurer, if an authorized insurer, did not renew: 2b) If a renewal was offered, what was the renewal quote?(IF NONE PUT "NONE") 3)Are you filing using the 10%? MCA 33-2-302 (2)(a)(iii)(A) (Y or N)(DILIGENT EFFORT IS REQUIRED) (If YES, you are affirming: 1. I have provided the insured with the disclosure information required by statute. 2. The unauthorized market quote was placed with a surplus lines company that is “A” rated or better. 3. The authorized market quote(s) that were used were the lowest premium from the diligent effort. 4. The difference between the authorized market quote(s) and the unauthorized market quote(s) meets the 10% requirement. 5. I listed the lowest quotes obtained from the authorized market search in #4 below.) 4)Is the insured an Exempt Commercial Purchaser?YES NO, If "No" List a minimum of three authorized insurers you contacted for your diligent efforts to place this insurance,: A.B.C. $$$ I,Tiffany Obie ,I am one and the same person whose name is subscribed below: that I have read the same and know the contents thereof: and that the statement of facts contained herein are true. First West, Inc. 1905 Stadium Drive Bozeman, MT 59715 Agency Name Address of Producing Insurance Producer X Signature of Producing Insurance Producer Date Montana Producer/Agency License # PART 2: Montana Surplus Lines Insurance Producer Section I,affirm that: 1) I am the producer that placed this risk with the unauthorized insurer; 2) this line of business appears on the most recent Approved Risk List (ARL) issued by the Commissioner of Insurance or that I have, to the best of my ability, attempted to place this line of insurance through an authorized insurer and am unaware of any authorized insurer transacting this line or the full amount of this line of insurance in Montana; and 3) I have complied with MCA 33-2-302. Printed SL Agency Name or Independently Procured Insurance Name Address of SL Agency X # Original Signature of Surplus Lines Producer is Required Date MT Surplus Individual Lines License No. PART 3: Premium / Tax / Fee Information Section - Montana is the Home State - no filing required if MT is not the home state. Name of Unauthorized Insurer(s):Underwriters at Lloyd's, London Lloyds Syndicate # Policy Period From:To Limits of Coverage:$ If this policy is a multi-year policy with the policy term greater than 12 months, this form is to be completed only in the initial year of the policy. For all subsequent years, report policy premium on the Montana Surplus Lines Multi-Year Policy Premium Form Policy Premium*$$21,500.00 Fire Premium*:$FOR OFFICE USE ONLY: Premium Tax: (2.75%)$$903.38 Fire Tax: (2.50%)$ACCEPTED STAMP ONLY Stamping Fee is 0% if filed electronically:Inspection Fee:$$600.00 Personal Lines Surplus Lines Agent fee: $Commercial Lines Surplus Agents Fee $$100.00 NOTICE: Effective on July 1, 2015, Montana law allows the surplus lines agent to charge up to a $50 tax free fee for personal lines and up to a $100 tax free fee for commercial lines for new and renewal business. Inspection fees for the actual cost of inspecting the risk to be reported on the line above. IF FILING ON PAPER SEND:THE ORIGINAL SUBMISSION PLUS 1 COPY AND 1 COPY OF DECLARATION PAGES AND/OR 1 COPY OF THEBINDER. SEND TO: COMMISSIONER OF SECURITIES AND INSURANCE AT 840 HELENA AVENUE, HELENA, MT 59601 294 Special Risk Division 701 B Street, Suite 2100, San Diego CA 92101 We are pleased to provide you with the following quotation. Please review it carefully. Coverages, terms and conditions may be different or more restrictive than what was requested. Quote Date: 3/31/2023 Quote Valid Until: 4/30/2023 12:01 AM; Local time at the location of the property involved Account Number: 119043 Written request to bind is needed prior to the expiration of this quote or the quote will be considered closed Named Insured:CITY OF BOZEMAN; BOZEMAN FIRE STATION #2 Term: 4/1/2023 to 6/30/2024 Mailing Address: 121 NORTH ROUSE AVE, BOZEMAN, MT 59715 Renewal of New Business Layer 1 Carrier Listing: Palomar Excess and Surplus Insurance Company 50.00% $5,750,000 Transverse Specialty Insurance Company 50.00% $5,750,000 NON ADMITTED CARRIERS - Current rating may be found at ambest.com Perils: Earthquake only Excluding Flood, Excluding Earthquake Sprinkler Leakage Terrorism (TRIPRA of 2015) Building Ordinance: Excluded----- If excess - BO coverage applies only if all underlying carriers are including with no sublimits Layer 1:$ 11,500,000 (100.00%) part of $ 11,500,000 Primary Limits apply per occurrence and in the aggregate for the following: Earthquake Deductibles:EQ 5 %of values at time and place of loss Including Time Element - Business Income Extra Expense Rental Value Excluding Time Element BI deductible if different from PD: Minimum EQ Deductible:$ 50,000 EQSL:Excluded Flood:Excluded AOP:Excluded Terrorism:Same as EQ 295 Property Real Property Business Personal Property Covered:Hard Costs Soft Costs Business Income EDP Extra Expense Tenant Improvements/Betterments Rental Value Stock Leasehold Interests Machinery and Equipment Contingent Business Income Accounts Receivable Per Submission Valuable Papers Fine Arts Valuation:Property Damage RC ACV Time Element including Extra Expense RC ALS Territory/Locations:COC of a Fire Station located at 575 West Kagy Blvd., Bozeman, MT 59715 only per schedule on file received 3/29/23 TIV:$ 11,500,000 Forms:Company Form Company Excess Follow Form (subject to review and approval of form we are to follow) Copy of policy we are to follow must be received within 75 days of effective date or we will issue our form Manuscript Form (subject to approval of final executed policy form and approval of form we are following if following form) Manuscript form and copy of policy we are to follow must be received within 75 days of effective date or we will issue our form If doing Excess Follow Form or Manuscript Form, we require a complete copy of the policy we are following which is subject to approval prior to issuing our policy. Our policy will not be issued without it. Exclusions:Pollution (Company Form) Asbestos / Contamination (Company Form) Mold (Company Form) Flood EQSL Theft Flood - locations located in 100 year flood plain Flood - locations located in 100 year flood plain, X500, X(Shaded) and B flood zones Building Ordinance, Increased Cost of Construction and Demolition Boiler and Machinery Communicable Disease, Virus or Bacteria Cyber Exclusion Endorsement Underlying Sublimited Coverages Exclusion All Risk Perils (Including Windstorm) Ensuing Loss War Exclusion Nuclear/Radioactive/Biological and Chemical Exclusion 296 Conditions:Warrant All Risk Underlyer Debris Removal clause (Company Form) Excess Limit of Liability and Participation Clause (Company Form) Drop Down Statement of Values form PREMIUM: $ 21,500 100% Minimum Earned TRIPRA of 2015 Premium: $ 10,750 Not included in premium above Total Premium $ 32,250 Catastrophe Analysis Fee: $ 600 Fully Earned Inspection Fee: $ 0 Fully Earned Plus applicable SLA Taxes and Fees - broker is responsible for the calculation of these taxes and fees, payment to the appropriate SLA office and filing of the SLA form. Broker is responsible for maintaining signed insurance applications and acknowledgement of state fraud warnings. This quote does not guarantee the addition of additional locations/coverages at the account rate or any rate. Should coverage be bound, the agreement to add additional locations/coverages is subject to carrier approval. Quote Subject to: Comments: This insurance does not apply to "bodily injury", "property damage", "time element" or "personal and advertising injury" arising out of the actual or alleged transmission of a communicable disease caused by either virus or bacteria whether engineered or naturally occurring. This quote may vary from coverage requested. This quote is a summary of coverage and may not be all encompassing. In the event of difference, policy language will prevail. Locations covered under this policy may be subject to inspection and underwriting action may be taken if the exposure is found to be different than the submitted application. https://www.bbinsurance.com/ccpa-privacy-notice/ https://www.munichre.com/us-non-life/en/general/privacy-statement.html 297 Notice Regarding Surplus Lines Filing Confirmation and TRIPRA Rejection Forms On all accounts effective 2/1/2019 and later, we will be using DocuSign to collect Surplus Lines Filing Confirmations and TRIPRA rejection notices. These notices and forms will no longer be appended to your Quotes or Binders. PLEASE NOTE THAT AT THE TIME OF BINDING YOU MUST ADVISE US IF THE INSURED HAS ELECTED OR REJECTED THE PURCHASE OF TRIPRA COVERAGE. BINDERS CANNOT BE SENT UNTIL THIS INFORMATION IS PROVIDED. After your account is bound, you will receive separate emails with instructions to complete the Surplus Lines Filing confirmation and TRIPRA Rejection forms in DocuSign. You will also be able to reassign or forward the request to another party for completion. After all documents are signed they will automatically be returned to your underwriter and no further action will be required on your part. 298 Schedule of Applicable Fees Catastrophe Analysis Fee $ 600 Palomar Excess and Surplus Insurance Company - $ 300.00 Transverse Specialty Insurance Company - $ 300.00 Inspection Fee $ 0 Not Applicable 299 April 24, 2023 City of Bozeman - Fire Station # 2 575 West Kagy Blvd Bozeman, Montana 59715 ATTN: Jon Henderson Change Order Request No. COR 003 Pricing Request No. PROJECT: Bozeman Fire Station # 2 SUBJECT: Site Construction Subcontract - Full Scope Review & Reconciliation REFERENCE: Walker Excavation proposal Dear : Jon Henderson, 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 Proposal Request(s). If we have misinterpreted this information in any way (omissions, etc.) please advise us. Other wise, our interpretation shall stand as correct. We have not been directed to proceed with the work per the terms of the contract. We have proceeded with the Work per the terms of the contract.X At this time, we are hereby requesting 0 calendar days for a time extension Please note this proposal is valid for (10) calendar days from this date and our proposal is based on receipt of a signed Change Order within (15) calendar days. We are adjusting the Construction Contingency in the amount of: We are requesting an Adjustment to the GMP (Owner's Contingency) in the Amount of:78,355.00$ If you have any questions, please call me at (406) 922-5508 Sincerely, MARTEL CONSTRUCTION, INC.City of Bozeman - Approval Mike Wilkinson - Martel Project Manager Jon Henderson - Strategic Services Director Enclosure(s) Estimate PDF CC.File 300 Martel ConstructionSpreadsheet ReportPage 1BFS2 COR 003 - Site Construction Subcontract - Full Scope Review & Reconciliation4/24/2023 1:41 PMGroupDescriptionTakeoff QuantityLabor AmountMaterial AmountSub AmountEquip AmountOther AmountTotal Amount31-0000EARTHWORK1Misc Site Construction2Site Survey / Layout1.00est--(22,000)--(22,000)3Site Construction Subcontract - Orignal at BidTIme1.00ls--(821,486)--(821,486)4Site Construction Subcontract - Full ScopeReview & Reconciliation1.00ls--916,131--916,1315 Misc Site Construction72,64572,645 EARTHWORK72,64572,645Estimate TotalsDescriptionAmountTotalsHoursRateLaborMaterialSubcontract72,645EquipmentOther72,64572,645General Liability Insurance6970.890%Gross Receipts Tax7261.000%Bond5560.750%Construction Fee3,7315.000%5,71078,355Total78,355301 302 303 304 305 306 307 308 309 310 22 February 2023 Re: City of Bozeman Fire Station 2 Mike, We look forward to the potential opportunity to work with you on this project. We utilized the following project documents: Project Documents Summary Architect/Engineer Dated No. of Pages Project Plans ThinkOne 1/16/23 162 Project Specifications Project Manual V1 and V2 1/16/23 1722 Geotechnical Report Allied Engineering 1-19-23 48 Number of Addenda Acknowledged 2 Bid Tab Provided?N Measurement and Payment provided?N Our Scope of Work is presented below: Project Specific Notes: 1. Quantities were gathered from the Civil sheets. Per discussion with Martel, and due to discrepancies between Civil and Site Development sheets, WX was directed to use civil sheets to gather quantities. 2. No pricing was included for alternate 1, Exterior patio dining day room. Pricing reflected in bid item 515 in revised bid. 3. Contractor is to supply adequate storage for the reuse of topsoil stripped from the project. 4. WX will not be responsible for moving or lowering any existing dry utilities. 5. locations requiring heated concrete, WX will prep areas with gravel and will supply concrete. heating materials and insulation is to be performed by other contractors. 6. Excavation and Installation of bollards is not included. Excavation of bollard locations may be added upon request but no supply or installation of concrete and/or bollards will be included. 7. Included in our bid is furnishing and installation of the single Handicap sign. All other signs will be completed by others. Excavation and backfill of 16 EA site bollards has been added in bid item 505 of the revised estimate. Per our understanding general contractor will install steel bollard and concrete. Walker Excavation will be responsible for excavation and backfill only. 8. Final dressing of landscaping is to be performed by others. Landscape contractors are to supply their own material. 9. At the time of this proposal, we have not included the installation of the heavy duty trench drain running along the border of the asphalt and concrete on the North side of the building. This can be added later upon request. Installation of the trench drain has been added in bid item 520 of the revised estimate. 10. WX will not be responsible for demo and disposal of existing buried fiber lines. 11. WX will not be responsible for demo and salvage of any existing light poles. 311 12. WX will not be responsible for demo and relocation of existing electrical, natural gas or communication utilities. 13. WX will not be responsible for the demo and relocation of the existing storage building. 14. Canopy columns are to be installed by others. 15. Fencing, either temporary jobsite fencing or finished site fencing, will be installed by others. 16. We will dig and prep the 3 trench drains located in the foundation in the parking area. Concrete, grated cover and piping is to be completed by other contractors. Items not included but can be added Bentonite or clay trench plugs. Excavation or installation of concrete bollards. SWPPP Permitting or administration. Dewatering permitting or administration. Can be added per general contractor. Dewatering for other scopes of work or contractors, i.e., concrete foundation work. Installation of conduit for power, or irrigation. Cold weather conditions including but not limited to. o Snow removal o Ground thaw o Equipment power for block heaters Survey, layout, and staking. Staking for our scope of work has been added in bid item 500 of the revised estimate. Compaction testing. Dry utility excavation, backfill. Landscaping. Heating and insulation products for heated concrete sections. Electrical conduits. Light pole bases and poles. Temporary site fencing. Equipment screening fence. Separation fence Flag poles. Bike racks. Generator. Transformer. Canopy columns. Thermoplastic striping. Curb paint. Site lighting or conduit. Irrigation conduit. Heavy duty trench drain. Cleanup or hauloff of geo-pier spoils. General Notes: 1. We acknowledge Addenda 2 through 2. 312 2. This quotation is given subject to a mutually agreeable contract and schedule. The amounts included within the proposal are good for 30 days from the bid date and are good for the 2023 construction season. 3. Actual quantities installed will be billed. The plans dated 1-16-23 were used to generate the quantities within the proposal. 4. This proposal must be made a part of the Subcontract. 5. All items are tied unless approved by Walker Excavation prior to contract. 6. We are bidding this project with the understanding that we will be able to perform our work concurrently with the General Contractor's activities. 7. Earthwork: we will perform the placement and compaction and obtain Engineer/Architect/GC approval of the finished subgrade and gravel surfacing once (within 0.1' of finished grades). Walker Excavation is NOT responsible for other trades final, finish grading of gravel. 8. Additional reshaping, compaction, and approval will be an additional expense. Clean-up and recertification of the finished surface behind other trades is also excluded and can be performed for an additional cost. 9. Fine grading is included in the finish work of the paving and concrete that Walker Excavation is providing. Other trades will need to fine grade their own gravel and at their expense. 10. Fine grading of gravel is excluded if concrete and asphalt are broken out from the bid. 11. Pressure testing of the fire line has been included for one time only. Re-testing is not included if the line is dormant for more than 5 months. Notwithstanding the requirements and obligations set forth in the Contract/Subcontract Documents and this Agreement, Contractor and its sureties shall not be held liable for any impacts, delays, labor overruns, material overruns and/or cost overruns related to its Work stemming from the current flu epidemic, and/or COVID-19 (Coronavirus Pandemic) or its aftermath. Contractor shall be entitled to an extension of the contract time and an equitable adjustment of the Contract Price, due to labor shortages, material escalation, or otherwise, for the performance of Contractor’s Work due to events and conditions beyond Contractor’s control, including the impacts from the Coronavirus pandemic. This quote is valid for 30 days after the scheduled bid date and can be withdrawn by us at that time. This estimate has been given with the intention that work will consist of a mutually agreed upon schedule. Thank you, Bret Walker Walker Excavation 313 Proposal Project:23020 - B Bozeman Fire Station bid revisionsDescription: From:Walker Excavation, Inc. 270 Floss Flat Road, Suite B Belgrade, MT 59714 USA Phone: 406-388-5834 Fax: 406-388-5837 BID QTY U/M AMOUNTITEMDESCRIPTION General Requirements 10 Mobilization / General Requirements 1.000 LS 20 Traffic Control 1.000 LS 25 SWPPP: Perimiter Control 710.000 LF 30 SWPPP: Trackout Pad 2.000 EA 35 SWPPP: Street Sweeping 20.000 HR 40 Street Cut Fee 1.000 LS 45 Demo: Sawcut Asphalt/Concrete 440.000 LF 50 Demo: Asphalt 11,356.000 SF 55 Demo: Concrete 2,020.000 SF 60 Demo: Remove and Salvage Sign and Post 3.000 EA 65 Demo: Existing Tree 1.000 EA General Requirements Section Total:$86,371.43 Earthwork and Hardscape 100 Strip Topsoil 12" Depth 2,340.000 CY 105 Hauloff Excess Topsoil 1,260.000 CY 110 Site Excavation 446.000 CY 115 Install Road Fabric 2,500.000 SY 120 Install Pitrun 760.000 CY 125 6" Depth Roadmix 370.000 CY 130 3" Asphalt Light Duty 12,469.000 SF 135 4" Asphalt Heavy Duty 4,011.000 SF 140 4" Concrete Light Duty 3,415.000 SF 145 5" Concrete Medium Duty 970.000 SF 150 6" Concrete Heavy Duty 7,436.000 SF 155 6" Concrete Heated 930.000 SF 160 Curb and Gutter 1,122.000 LF 165 Sidewalk Chase 6.000 LF 170 Ped Ramps 350.000 SF 175 ADA Sign and Post 1.000 EA 180 Striping 1.000 LS 185 Site Swale Construction 380.000 LF 190 Topsoil Re-spread 250.000 CY 314 Proposal BID QTY U/M AMOUNTITEMDESCRIPTION Earthwork and Hardscape Section Total:$395,880.80 Building Excavation and Backfill 200 Structural Fill to Subgrade 240.000 CY 205 12" Structural Fill 520.000 CY 210 6" Leveling Course 260.000 CY 215 Dig/Prep Footings 350.000 CY 220 Backfill Interior of Footing 220.000 CY 225 Backfill Exterior Foundation 285.000 CY Building Excavation and Backfill Section Total:$108,204.30 Utilities 300 4" Water Service 125.000 LF 305 6" Fire Service 130.000 LF 310 Hydrant 1.000 EA 315 4" Sanitary Sewer Service 150.000 LF 320 Sand Oil Separator 1.000 EA 325 48" Dry Well 1.000 EA 330 24" Drop Inlet 2.000 EA 335 60" Storm Manhole 1.000 EA 340 48" Storm Manhole 1.000 EA 345 2'x3' Curb Inlet 3.000 EA 350 24" PVC Storm Pipe 8.000 LF 355 12" PVC Storm Pipe 350.000 LF 360 8" PVC Storm Pipe 60.000 LF 365 6" PVC Storm Pipe 12.000 LF 370 Stormtech System 1.000 LS 380 Retention Pond 1,000.000 SF Utilities Section Total:$231,029.50 Additional Items 500 Survey and Layout 1.000 LS 505 Excavate and Backfill Site Bollards 16.000 EA 510 Excavate Flagpole Foundation 3.000 EA 515 Excavate and Backfill Patio Column 2.000 EA 520 Install HD Exterior Trench Drain 60.000 LF 525 Install and Dispose of Concrete Washout (4 times) 4.000 EA Additional Items Section Total:$94,645.00 Base Bid $916,131.03 Alternates 315 Proposal BID QTY U/M AMOUNTITEMDESCRIPTION Alternate 2 Alternate 2 400 Alternate 2 1.000 LS Alternate 2 Section Total:$5,500.00 Alternate 2 Total $5,500.00 Total Bid with Alternates $921,631.03 316 April 24, 2023 City of Bozeman - Fire Station # 2 575 West Kagy Blvd Bozeman, Montana 59715 ATTN: Jon Henderson Change Order Request No. COR 004 Pricing Request No. PROJECT: Bozeman Fire Station # 2 SUBJECT: Site Work MSU Non Potable Irrigation Allowance REFERENCE: Martel Construction Allowance Dear : Jon Henderson, We propose to provide all labor, materials, and equipment required to perform the above mentioned work. Our lump sum quotation is based on our interpretation of the instructions and scope of work identified by the Proposal Request(s). If we have misinterpreted this information in any way (omissions, etc.) please advise us. Other wise, our interpretation shall stand as correct. We have not been directed to proceed with the work per the terms of the contract.X We have proceeded with the Work per the terms of the contract. At this time, we are hereby requesting 0 calendar days for a time extension Please note this proposal is valid for (10) calendar days from this date and our proposal is based on receipt of a signed Change Order within (15) calendar days. We are adjusting the Construction Contingency in the amount of: We are requesting an Adjustment to the GMP (Owner's Contingency) in the Amount of:7,551.00$ If you have any questions, please call me at (406) 922-5508 Sincerely, MARTEL CONSTRUCTION, INC.City of Bozeman - Approval Mike Wilkinson - Martel Project Manager Jon Henderson - Strategic Services Director Enclosure(s) Estimate PDF CC.File 317 Martel Construction Spreadsheet Report Page 1 BFS2 COR 003 - Site Construction Subcontract - Full Scope Review & Reconciliation 4/24/2023 2:51 PM Group Description Takeoff Quantity Labor Amount Material Amount Sub Amount Equip Amount Other Amount Total Amount 32-0000 SITE IMPROVEMENTS1 Irrigation Systems2 Irrigation System 1.00 Allw --7,000 --7,0003 Irrigation Systems 7,000 7,000 SITE IMPROVEMENTS 7,000 7,000 Estimate Totals Description Amount Totals Hours Rate Labor Material Subcontract 7,000 Equipment Other 7,000 7,000 General Liability Insurance 67 0.890 % Gross Receipts Tax 70 1.000 % Bond 54 0.750 % Construction Fee 360 5.000 % 551 7,551 Total 7,551 318 GMP AMENDMENT NO. 3 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 27th day of June 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 BOZEMAN FIRE STATION #2 FULL PROJECT 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: Early Work Amendment No. 1 $302,663.00 General Requirements 14 Months $595,166.00 Site Work Complete $1,192,869.00 Building Construction $8,411,669.00 Subtotal $10,502,367.00 General Liability Insurance $100,268.00 Gross Receipts Tax $112,592.00 Builders Risk $11,892.00 Bond $84,459.00 Construction Fee $524,289.00 Construction Contingency $256,037.00 PV Construction Contingency $100,000.00 AMENDMENT # 3 GUARANTEED MAXIMUM PRICE $11,691,904.00 CONTRACT TIME The date of Certificate of Occupancy for the Work outlined above is: June 20th, 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 319 Memorandum REPORT TO:City Commission FROM:Bernie Massey, Assistant Treasurer Laurae Clark, Treasurer Melissa Hodnett, Finance Director SUBJECT:Resolution 5501, Certification of Delinquent City Assessments to the County MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Approve Resolution #5501, Certification of Delinquent City Assessments to the Gallatin County as submitted. 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:MCA 7-6-4182, 7-6-4183 and 7-6-4423. The city or town may provide by ordinance for the collection by its city treasurer or town clerk of all special assessments and taxes levied and assessed in accordance with any of the provisions of part 42 and this part in the same manner and at the same time as taxes for general, municipal, and administrative purposes are collected by the county treasurer. All of the provisions of 7-6-4423 apply to the collection of the special taxes and assessments in the same manner as the provisions apply to the collection of other city or town taxes. Delinquent special assessments must be certified to the county clerk of the county in which the city or town is situated. The county treasurer shall collect the delinquent special assessments and taxes in the same manner and at the same time that taxes for general, municipal, and administrative purposes are collected. UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the City Commission FISCAL EFFECTS:By certifying the delinquent City Special Assessments to Gallatin County we will ensure the collection of the 2nd half amounts that were not paid by the due date of May 31, 2023. The amount we have certified and will in turn collect is $335,745.89 as noted on Schedule “A” attached. These assessments will be placed as a lien against their property and their properties cannot be sold without bringing them current. Attachments: 320 Resolution 5501-Certification of Delinquent 2nd half-FY 2023.docx Schedule A - Delinquent Certification 060823.pdf Report compiled on: June 8, 2023 321 Page 1 of 5 RESOLUTION 5501 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, DECLARING ANNUAL AND SEMI-ANNUAL SPECIAL ASSESSMENT INSTALLMENTS DUE AND PAYABLE MAY 31, 2023, AND UNPAID AS OF THAT DATE, DELINQUENT, PURSUANT TO SECTION 7-12-4183, MONTANA CODE ANNOTATED, AND AS PROVIDED BY CHAPTERS 2.32 AND 3.04 OF THE BOZEMAN MUNICIPAL CODE, AND DIRECTING THE FINANCE DIRECTOR TO CERTIFY THE SAME TO THE GALLATIN COUNTY TREASURER FOR COLLECTION. WHEREAS,pursuant to Sec 2.06.670 of the Bozeman Municipal Code, the Finance Director has prepared and filed with the Commission of the City of Bozeman, attached hereto, a report entitled Schedule "A", describing the lot or parcel subject to the assessments, the name and address of persons assessed, showing all annual and semi-annual special assessments due and payable May 31, 2023, and unpaid as of that date, and the amount due thereunder, with penalty; and WHEREAS,pursuant to Sections 7-6-4423 and 7-12-4188, M.C.A., the City Commission of the City of Bozeman deems it necessary and proper, in order to protect the interests of the residents of the City of Bozeman and the bondholders of the respective Special Improvement District bonds, to declare all annual and semi-annual special assessments due and payable by 5:00 p.m. on May 31, 2023, and unpaid as of that date, delinquent and to certifythe same to the Gallatin County Treasurer for collection as other delinquent taxes, and the property and/or properties may be sold the same as other property is sold for taxes. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: Section 1 322 Resolution 5424, Certification of Delinquent Assessments to Gallatin County Page 2 of 5 That all annual and semi-annual special assessments and installments of special assessments, due and payable May 31, 2023, and unpaid as of that date, as set forth in Schedule "A" hereto attached, and made a part hereof, are hereby declared delinquent. Section 2 That the Finance Director is hereby directed to certify all annual and semi-annual special assessments and installments of special assessments delinquent, with penalty, as herein provided, and as shown by Schedule "A", to the County Treasurer of Gallatin County for collection as other delinquent taxes. Section 3 That within ten (10) days from and after the filing of said certificate, the Finance Director shall publish in one issue of the Bozeman Daily Chronicle, Notice as provided by Sec 2.06.680 of the Bozeman Municipal Code. Section 4 That the County Treasurer shall proceed with the collection of all annual and semi-annual special assessments or installments of special assessments, as set forth in Schedule "A", that the same shall be spread upon the delinquent tax list of the County of Gallatin for the Year 2022, and the same shall be collected as other delinquent taxes; and that in the case the same are paid, collection shall be made by the County Treasurer of Gallatin County, as provided by Sections 7-12-4181 and 7-12-4183, M.C.A., and that in the case the same are not paid, the whole property shall be sold as in the case of other properties sold for non-payment of taxes. Section 5 That the Finance Director, under the direction of the City Manager, shall attend at the time and place for 323 Resolution 5424, Certification of Delinquent Assessments to Gallatin County sale of the property for delinquent taxes, as provided by Sec 2.06.700 of the Bozeman Municipal Code. Section 6 That a copy of Schedule "A" attached hereto and made a part hereof, shall on or before the 28th day of June 2023 be filed with the County Clerk and Recorder and the County Treasurer of Gallatin County. Section 7 That, pursuant to Sec 2.06 of the Bozeman Municipal Code, attached hereto and made a part hereof, shall be a certificate of the Finance Director. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 27th day of June 2023. ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 324 Resolution 5424, Certification of Delinquent Assessments to Gallatin County CERTIFICATE OF FINANCE DIRECTOR I, Melissa Hodnett, duly appointed Finance Director of the City of Bozeman, Montana, do hereby certify that the attached schedule marked Schedule "A" and made a part of Commission Resolution No. 5501 is a true and correct list of all annual and semi-annual delinquent special assessments and subsequent installments of special assessments due and owing the City of Bozeman as of May 31, 2023, at 5:00 p.m. That this certification and Schedule "A" attached hereto are made pursuant to and in conformance with Sec 2.06 of the Bozeman Municipal Code of the City of Bozeman, Montana. IN WITNESS WHEREOF, I hereunto set my hand this 28th day of June 2023. ________________________________________ MELISSA HODNETT Finance Director 325 Version April 2020 NOTICE NOTICE IS HEREBY GIVEN by the Finance Director for the City of Bozeman, Montana, that she has certified to the Treasurer of Gallatin County a list of all property and of the persons assessed for delinquent taxes and assessments which will be sold at public auction by the Gallatin County Treasurer unless re-instated prior to such auction by paying all delinquent taxes, together with interest, penalties and costs incurred. A list of all delinquent properties and persons assessed is on file and subject to public inspection in the offices of the Gallatin County Treasurer, Gallatin County Courthouse, 311 West Main Street, and the Finance Director for the City of Bozeman, 121 N Rouse Ave., Bozeman, Montana. DATED this 28th day of June 2023. __________________________________ MELISSA HODNETT Finance Director City of Bozeman Legal Ad Publish: Saturday, July 1, 2023 326 Delinquent Certification 060823 DELINQUENT 2%TOTAL PARCEL OWNER ADDRESS LEGAL DESCRIPTION 1st 1/2 PENALTY AMOUNT DUE RFG10150 FIVEFOLD HOLDINGS LLC 220 NEWPORT CENTER DR 92660 DAVENPORT ANNEXATION TRACT B 4.121 ACRES $543.26 $10.87 $554.13RFG24300MONTANA HOTEL GROUP LLC 800 GEORGE WASHINGTON WAY 99352 CATRON CROSSING SUB BLK 2 LOT 7 $4,668.65 $93.37 $4,762.02 RFG25807 WESTLAKE BUILDING PARTNERSHIP 2320 N 7TH AVE UNIT A 59715 LOT 15A & 15B 1.947 ACRES MINOR SUB 049 $3,071.57 $61.43 $3,133.00 RFG44027 KW & MW LLC 342 GALLATIN PARK DR 59715 GALLATIN PARK SUBDIVISION LOT 10 BLOCK 2 PLUS OPEN SPACE $1,641.04 $32.82 $1,673.86RFG440284 FARMERS LLC 346 GALLATIN PARK DR 59715 GALLATIN PARK SUBDIVISION LOT 11 BLOCK 2 PLUS OPEN SPACE $2,381.77 $47.64 $2,429.41 RFG44493 TRUNORTH PROPERTIES LLC 18411 FRONTAGE RD 59714 RIVERGLEN CONDOMINIUM UNIT 2 BUILDING 2 WALKER PROPERTY SUD AMND $543.26 $10.87 $554.13 RFG46788 BRESTER, LAUREN 2969 WARBLER WAY UNIT 1 59718 WARBLER WAY CONDO UNIT 1 CATTAIL CREEK SUBDIVISION PHASE 1 LOT 3 BLOCK 6 $188.63 $3.77 $192.40RFG47863SCHMITT, SALLY J & CARALEE J 2214 N FERGUSON AVE 59718 BAXTER MEADOWS PHASE I LOT 7 BLOCK 4 $138.49 $2.77 $141.26 RFG47880 HILL, JODY L 3911 BOSAL ST 59718 BAXTER MEADOWS PHASE I LOT 25 BLOCK 4 $118.75 $2.38 $121.13 RFG47899 FLIK LLC 3017 FLURRY LN 59718 BAXTER MEADOWS PHASE I LOT 4 BLK 3 $178.06 $3.56 $181.62RFG47913JULIANO, CRAIG D 3921 BAXTER LN 59718 BAXTER MEADOWS PHASE I LOT 18 BLOCK 3 $197.86 $3.96 $201.82 RFG47918 AKIN, CRAIG & MICHELLE 2274 LASSO AVE 59718 BAXTER MEADOWS PHASE I LOT 2 BLOCK 6 $336.33 $6.73 $343.06 RFG47932 YURASHAK, BLAIRE & CHAD 2205 LASSO AVE 59718 BAXTER MEADOWS PHASE I LOT 8 BLOCK 5 $336.33 $6.73 $343.06 RFG47953 JXM & ASSOCIATES LLC PO BOX 10538 59719 BAXTER MEADOWS PHASE I LOT 4 BLOCK 7 $691.59 $13.83 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SUBDIVISION PHASE 8 LOT 2 BLOCK 29 $337.73 $6.75 $344.48 RGG50625 GATEWAY PARTNERS 3731 EQUESTRIAN LN STE 203 59718 HARVEST CREEK SUBDIVISION PHASE 9 LOT 8 BLOCK 29 $298.75 $5.98 $304.73 RGG50862 FELTIS-GERMAN, LISA L GERMAN TRUST 4587 CASCADE ST 59718 VALLEY WEST SUBDIVISION PHASE 2 LOT 19 $304.68 $6.09 $310.77RGG5093TUFTE, JESSE R & PATRICK D JOHNSON 1448 ASH DR 59715 WEST PARK LOTS 20-21 BLOCK 37 $237.23 $4.74 $241.97 RGG50960 BAILEY, WILLIAM & KAREN 1753 W KAGY BLVD 59715 HAWKS RIDGE CONDOS UNIT 1753 KAGY ANNEXATION COS 573 WAS TRACT A UNIVERSITY APARTMENTS $165.30 $3.31 $168.61 RGG50966 MEYER, DEBORAH L PO BOX 184 81201 HAWKS RIDGE CONDOS UNIT 1765 KAGY ANNEXATION COS 573 WAS TRACT A UNIVERSITY APARTMENTS $165.30 $3.31 $168.61RGG50969LUNDIN, GREGG T & KRISTIN K 7855 PARKWOOD DR 59808 HAWKS RIDGE CONDOS UNIT 1771 KAGY ANNEXATION COS 573 WAS TRACT A UNIVERSITY APARTMENTS $165.30 $3.31 $168.61 RGG51105 WIEDER, BRIAN H 1213 BUCKRAKE AVE 59718 SOUTH MEADOWS CONDO PHASE 6 UNIT 42 SOUTH MEADOWS MINOR 294 $327.59 $6.55 $334.14 RGG51107 HIRSCH, THOMAS S PO BOX 546 98395 SOUTH MEADOWS CONDO PHASE 6 UNIT 44 SOUTH MEADOWS MINOR 294 $350.30 $7.01 $357.31RGG51226POLACEK, CHERYL 3401 FALLON ST UNIT 1D 59718 WEST PARK CONDOS UNIT 1D 3401 FALLON UNIT 1A BLDG 2 PARK PLAZA LOT 1 BLK 2 $72.37 $1.45 $73.82 RGG51235 FLODING, STEVE & RONELL 6 DIAMONDBACK CT 59634 WEST PARK CONDOS UNIT 1A 3409 FALLON ST - BLDG 3 PARKWAY PLAZA SUB LOT 1 BLK 2 $72.37 $1.45 $73.82 RGG51309 SAUNDERS, DENTON PO BOX 9742 83002 WINGFOOT CONDOS UNIT C WEST PARK ADD LOT 4-6 BLK 8 $135.97 $2.72 $138.69RGG51354MARTIN LAND LLC PO BOX 1167 59771 CARDINAL CONDOS UNIT 3 VALLEY WEST PH 2 LOTS 43-50A $181.15 $3.62 $184.77 RGG51432 HAUGEN, PAUL & JANICE 2316 W BEALL ST UNIT 1 59718 LESSLEY ESTATES CONDOS UNIT 7 2316 W BEALL ST UNIT 1 COS 1855A TRACT 2A-LESSLEY $292.75 $5.86 $298.61 RGG51494 MOSDAL, TESSA PO BOX 6245 59771 ELLIE 52-53 CONDOS UNIT 1A VALLEY WEST SUBDIVISION PHASE 1B LOT 61 BLOCK 1 $141.97 $2.84 $144.81RGG51499OLNEY, TRACY & TROY 4242 MONROE ST UNIT A 59718 ELLIE 52-53 CONDOS UNIT 1F VALLEY WEST SUBDIVISION PHASE 1B LOT 61 BLOCK 1 $141.97 $2.84 $144.81 RGG51507 CASAGRANDA, SCOTT & DEBI 3238 SUMMERSET DR 59715 ALDER CREEK SUB PH2 LOT13 BLK6 $335.74 $6.71 $342.45 RGG5151 DIERUF, IVAN Q 209 HENDERSON ST 59715 GRAFS 3RD ADDITION LOT 6 BLOCK 2 $457.06 $9.14 $466.20RGG51589BIBEAU, JACQUELINE & NORMAN PAGE 22 MATHEW BIRD CIR 59715 WEST MEADOW SUB PH3 LOT81 $428.23 $8.56 $436.79 RGG5161 TATE, FORREST PAXTON PO BOX 4027 59772 KARPS LOTS 8-9 BLOCK 5 $543.26 $10.87 $554.13 RGG51613 CARISCH, GERALD F & JULIE M GF & JM CARISCH TRUSTS 478 MATHEW BIRD CIR 59715 WEST MEADOW SUB PH3 LOT105 $392.09 $7.84 $399.93RGG51645HARMON, LAURA G & PATRICK J 3540 JERICHO DR 32707 WEST MEADOW SUB PH3 LOT137 $398.54 $7.97 $406.51 RGG5178 KJELDSEN, HOLLY & RASMUS 1055 SE 223RD AVE 97030 CORCORAN'S REARRANGED LOT 8 BLOCK 6 $377.56 $7.55 $385.11 RGG51792 BUSS JR, RONALD 1095 ADVANCE DR 59718 LOYAL GARDENS SUBD 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UNIT 104 $93.38 $1.87 $95.25RGH22498BOZEMAN HOSTEL LLC 27 E MAIN ST UNIT A 59715 OP E1.33' LOT 7 ALL LOT 8 W 9.67' LOT 9 BLOCK F 27 E MAIN CONDOS UNIT A $231.09 $4.62 $235.71 RGH22597 GLEASON, CLAIRE 407 BONNER LN 59715 TR IN SE 1/4 7 2S 6E COS 381 LOT 2 ICE POND TOWNHOUSES $57.95 $1.16 $59.11 RGH22603 LANIER, WILLIAM THOMAS 421 BONNER LN 59715 TR IN SE 1/4 7 2S 6E COS 381 LOT 8 ICE POND TOWNHOUSES $57.95 $1.16 $59.11RGH2312WILLSON YELLOW LLC 512 AMSTERDAM BLVD 59714 BUTTE LOTS 13-16 BLK 21 $489.08 $9.78 $498.86 RGH23131 MUNSON, CHRISTOPHER 1104 S MONTANA AVE UNIT G 3 59715 GREENTREE CONDO UNIT 19 UNIT G3 AKA CA15 $61.25 $1.23 $62.48 RGH23154 JUNGST, THOMAS ALLAN LAURIE SUE MCLENNAN JUNGST 1757 HIGHLAND BLVD #1 59715 GRAF'S 1ST-2ND FILING BLOCK 3A HIGHWOOD ESTATES PHASE I #1 $392.16 $7.84 $400.00RGH23160MITCHELL, PHILIP & BELINDA PO BOX 1567 59937 GRAF'S 1ST-2ND FILING BLOCK 3A HIGHWOOD ESTATES PHASE I #7 $392.16 $7.84 $400.00 RGH2397 ANNA TURECEK LIVING TRUST 530 N MONTANA AVE 59715 BEALLS 1ST SOUTH 54' X 144' OF NORTH 1/2 OF WEST 1/2 BLOCK 10 $281.63 $5.63 $287.26 RGH24076 BAIDE, DONALD R WANNAPORN NILAKUL 1709 S BLACK AVE 59715 THOMPSONS 4TH BLOCK 4 PH III WOODBROOK TOWNHOUSE UNIT 56 $172.47 $3.45 $175.92RGH24199KAERNER, THOMAS H & HERTA ANNA AM SONNENHARG 12 95512 TRACTS A & B COS 666 TRACT IN SE 1/4 SECTION 7 NE 1/4 18 2 S 6 E $122.27 $2.45 $124.72 RGH24204 MCPHERSON, TAMRA J 719 S CHURCH AVE UNIT 14 59715 TRACTS A & B COS 666 TRACT IN SE 1/4 SECTION 7 NE 1/4 18 2 S 6 E $122.27 $2.45 $124.72 RGH24291 JUTILA, JOHN W & CHARLOTTE P 1201 HIGHLAND BLVD #D105 59715 WESTRIDGE MEADOWS LOT 3 BLOCK 2 W/M CONDOS UNIT A-3 $340.23 $6.80 $347.03RGH2558STEINER, WADE & MELLISA 819 S BLACK AVE 59715 DUDLEYS LOT 4 BLOCK 1 $419.78 $8.40 $428.18 RGH2575 WACKAMOLEY LLC 3919 RAIN ROPER DR 59715 NP NORTH 67' LOTS 1-5 BLOCK 106 LOT 1 $303.32 $6.07 $309.39 RGH25784 J & P MONTANA PROPERTIES LLC 8008 HWY 212 59070 THOMPSONS 4TH BLOCK 4 PHASE 3 WOODBROOK TOWNHOUSE UNIT 26 $114.60 $2.29 $116.89 RGH2580 GLIKO, JOSH 347 JARVIS RD 59412 THOMPSONS 4TH LOT 5 BLOCK 8 TANGLEWOOD CONDO UNIT 2 $187.40 $3.75 $191.15RGH25849HOBART III, EDWARD D CASSIE SPICHER 3731 EQUESTRIAN LN 59718 WESTRIDGE MEADOWS LOT 5 BLOCK 3 W/M CONDOS #3 UNIT 14 $271.08 $5.42 $276.50 RGH25853 MURTAGH, AARON JENNIFER HATCHADORIAN 340 8TH ST APT 1 11215 HOFFMAN'S LOTS 3-5 BLOCK E #3 PLUS COMMON SPACE $110.01 $2.20 $112.21 RGH25947 SAGHETELIAN, VIRGINIA L 2005 FAIRWAY DR UNIT 18 59715 WESTRIDGE MEADOWS LOT 5 BLOCK 3 W/M CONDOS #3 UNIT 18 $248.53 $4.97 $253.50RGH2608FELLERHOFF, KAREN 3336 SPAINBRIDGE RD 59714 BUTTE LOTS 13-16 BLOCK 9 $572.80 $11.46 $584.26 RGH2627 SOUTH SPRUCE LLC 7781 NEX PERCE DR 59715 NEW HYALITE LOT 4 BLOCK 11 $271.64 $5.43 $277.07 RGH2637 KIRKWOOD, CHRIS & LISA 23 CULBERSON RD 07920 NEW HYALITE LOT 17 BLOCK 12 $271.64 $5.43 $277.07RGH2658BLAKE, THOMAS K & VICTORIA CAROLLO BLAKE 1214 N PINECREST DR 59715 NEW HYALITE LOT 11 BLOCK 4 $284.45 $5.69 $290.14 RGH2659 BATESON, ROBERT J 32 SHAWNEE WAY STE B 59715 NEW HYALITE LOT 10 BLOCK 15 $325.96 $6.52 $332.48 RGH2663 BEALL, SHARON L 307 S TRACY AVE 59715 ALDERSON'S LOTS 3-4 BLOCK G $378.01 $7.56 $385.57RGH2730KOSTELECKY, CAMILLE PO BOX 1564 96714 STORYS W 29.5' LOT 9,E 7.5' LOT 10 BLOCK A LONE STAR COMMERCIAL CONDOS 1 $303.34 $6.07 $309.41 RGH2736 TALLMAN, BRETT & SUSAN 513 N BLACK AVE 59715 BEALLS 2ND ALL LOT 6 & SOUTH 10' LOT 7 BLOCK F $207.90 $4.16 $212.06 RGH27830 NW HOLDINGS LLC 11 E VILLARD ST 59715 NP LOTS 1-4 & LOTS 8-13 BLOCK 103 $1,072.57 $21.45 $1,094.02RGH2786BREWER, BJ & MOLLY 507 ICE POND RD 59715 BOZEMAN CREEK ANNEX TRACT 5C $543.26 $10.87 $554.13 RGH2797 TRACY VILLA LLC 512 AMSTERDAM BLVD 59714 HOFFMANS LOT 11 LESS 8 X 6'NORTHEAST CORNER ALL LOT 12 LESS 8 X 16' SOUTHEAST CORNER $984.04 $19.68 $1,003.72 RGH2833 DONALD R BAIDE REVOC TRUST 402 E MAIN ST UNIT 1 59715 ROUSES 1ST LOTS 1-4 & W 6' LOT 5 BLOCK A BLACKWOOD BUILDING CONDOS UNIT 1 $150.76 $3.02 $153.78RGH2846SANTOS, VANESSA BRANDT BACHA 408 N 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$271.64 $5.43 $277.07 RGH3467 GOOSE & BEAR LLC 2448 BLACKFEET LN 59715 TRACYS 2 LOTS 20-21 BLOCK A $283.95 $5.68 $289.63 RGH3498 SMITH, RAYNER & TANYA 1610 S WILLSON AVE 59715 THOMPSONS 2 LOT 2 BLOCK 2 $512.15 $10.24 $522.39 RGH3504 BRANTLEY, KATHERINE 6253 OVERTON DR 70808 SPRINGDELL LOT 15 BLOCK 1 $231.31 $4.63 $235.94RGH3549GARRE, MICHAEL & EMMA 1310 ROBIN LN 59715 THOMPSONS ADDITIION #4 STERLING CONDOS UNIT 2 LOT 18 BLOCK 9 $109.03 $2.18 $111.21 RGH3566 LEACHMAN, H LOGAN & JAMIE 11330 BRIDGER CANYON RD 59715 GUYS 1ST EAST 62 1/2 OF SOUTH 99 1/2 OF 1/2 ACRE LOT 1 TRACT H $298.65 $5.97 $304.62 RGH3696 KB REAL PROPERTY HOLDINGS LLC 577 BLACK BULL TRL 59718 IMES LOTS 19-20 BLOCK 48 $233.61 $4.67 $238.28RGH3697RIEDERS, NATHANIEL F 21 S 2ND ST 53704 IMES LOTS 5-6 BLOCK 35 $181.10 $3.62 $184.72 RGH3713 GADDIS, RITA A 624 N WILLSON AVE 59715 IMES LOTS 25-26 BLOCK 47 $251.72 $5.03 $256.75 RGH3740 321 MAIN LLC 216 MCADOW AVE 59715 OP PORTION LOTS 15-16 ALL LOTS 17-19 BLOCK D BOZEMAN MULTI 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LOT 7 & 19' W S LOT 8 BLOCK E $494.65 $9.89 $504.54 RGH4070 ST JONN, MYLES & BROOKE CADWELL 621 E DAVIS ST 59715 BAB-DAVIS S 150' OF E 1/2 TRACT 7 IN TRACT 13 BLOCK 4 $228.18 $4.56 $232.74RGH4083EDWARDS, ROBERT L 1208 S CHURCH AVE 59715 BOZEMAN CREEK ANNEX TRACT 27 $543.26 $10.87 $554.13 RGH4104 JOHNSON, PATRICK & JESSE TUFTE 1448 ASH DR 59715 NEW HYALITE LOTS 13-14 BLOCK 16 $543.26 $10.87 $554.13 RGH4140 NORTH PEACH LLC 33 N BLACK AVE 59715 BABCOCK AND DAVIS ADD BLK 7 LOT 5A PLAT C-19-V $72.26 $1.45 $73.71RGH41724LARSEN, PAUL 4314 GRAF ST 59715 SUNDANCE SPRINGS SUBDIVISION PHASE 1A LOT 58 $503.92 $10.08 $514.00 RGH4207 MCBEE, BRANNIN MEGHAN BENNETT 520 S WILLSON AVE 59715 FAIRVIEW LOTS 11-13 BLOCK 6 $620.42 $12.41 $632.83 RGH4254 GALLATIN COUNTY 311 W MAIN ST RM 304 59715 TRACYS 2 N 75' LOTS 1-3,ALL LOTS 4-17 & S 1/2 LOTS 18-20 $907.19 $18.14 $925.33RGH4318RUTHERFORD, WILLIAM H 717 S TRACY AVE 59715 FAIRVIEW SOUTH 10' LOT 15, ALL LOTS 16-17 BLOCK 7, PLUS 10'ON NORTH $520.69 $10.41 $531.10 RGH4329 MEYER, WAYNE G 5950 ALPINE WOODS DR 99516 BLACKS 94'E SIDE TRACT 2 IN 1 ACRE LOT 1 BLOCK C LIND &GUYS TRACT 1 IN FRACTION'L $235.42 $4.71 $240.13 RGH4361 RITCHEY, KATHLEEN &DAVID HENKIN 327 N ROUSE AVE 59715 BEALLS 1ST TRACT E TRIANGLE TRACT IN SE CORNER OF TRACT 14 BEING 50' EAST & 85 ' SOUTH $76.97 $1.54 $78.51RGH4368INGENUITY INVESTMENTS LLC 813 DIMAGGIO DR 59714 BEALLS 1ST 35'S OF N83'TRACT 2 IN 1A LOT 15 $171.54 $3.43 $174.97 RGH4370 MING, SHAWN 711 E ORANGE ST 59715 NP LOTS 18-19 BLOCK 52 $257.15 $5.14 $262.29 RGH43794 CULVER, WILLIAM E & SHARON A 4122 E GRAF ST 59715 SUNDANCE SPRINGS SUBDIVISION PHASE 2B LOT 86 $536.39 $10.73 $547.12 RGH43796 BEAUVAIS, PASCAL & BETSY 4040 E GRAF ST 59715 SUNDANCE SPRINGS SUBDIVISION PHASE 2B LOT 88 $543.26 $10.87 $554.13RGH43805REISTAD, CORY 122 TALON WAY UNIT B 59718 SUNDANCE SPRINGS SUBDIVISION PHASE 2B LOT 97 $543.26 $10.87 $554.13 RGH44433 KOSTELECKY, CAMILLE PO BOX 1564 96714 STORYS W 29.5' LOT 9 E 7.5' LOT 10 BLOCK A LONE 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OAK ST APT 319 59718 NEW HYALITE LOT 1 BLOCK 6 $271.64 $5.43 $277.07 RGH4754 BERGANTINE, JOSEPH & STEPHANIE 1608 S TRACY AVE 59715 UNIV SUB LOT 16 BLOCK 4 $289.74 $5.79 $295.53RGH4781KOLLER, LAUREL & PAUL T & EMILY SHERMAN 20 E TAMARACK ST 59715 IMES LOTS 1-2 & NORTH 20'OF LOT 3 BLOCK 32 $357.47 $7.15 $364.62 RGH49260 BIKEN + 1 LLC C/O ELIZABETH BAUR 1011 FLOWERREE ST 59601 PARKVIEW CONDOS UNIT 300 LOT 1A-1 PLAT C-23-A21-D $368.24 $7.36 $375.60 RGH4967 MEDIA STATION INC 627 E PEACH ST 59715 NP LOTS 17-21 BLOCK 106 $642.86 $12.86 $655.72RGH4974MEARS, VANESSA R 1207 HOLLY DR 59715 NEW HYALITE LOT 10 BLOCK 1 $271.64 $5.43 $277.07 RGH5008 VAUGHN, RACHEL 1414 CHERRY DR 59715 NEW HYALITE LOT 23 BLOCK 15 $325.96 $6.52 $332.48 RGH5009 SICKLER, PETER 518 N TRACY AVE 59715 BEALLS 2ND LOT 13 & NORTH 1/2 LOT 14 BLOCK F $430.29 $8.61 $438.90RGH5014WEIX, MICHAEL 629 E MENDENHALL ST 59715 ROUSES 1ST LOT 13 & LOT 14 BLOCK I $304.22 $6.08 $310.30 RGH5019 VISSCHER, ANNA S KENT DAVIS - TRUSTEES 416 N TRACY AVE 59715 BEALLS 2ND SOUTH 10' LOT 28,ALL LOT 29 BLOCK E $463.25 $9.27 $472.52 RGH5035 101 ROUSE LLC 321 E MENDENHALL ST 59715 OP SOUTH 50' LOTS 17-19 BLOCK I $428.08 $8.56 $436.64RGH5057ULRICHS, SCOTT C & MEGAN R 955 STONEGATE DR 59715 GUYS 2ND 75 X 79 SW COR F &75 X 300 SS 1A LOT 2 DELL CONDO UNIT 6 $92.57 $1.85 $94.42 RGH50700 WORTMAN, JEREMY KIRK & TAYLOR 129 VILLAGE CROSSING WAY 59715 VILLAGE BOULEVARD MINOR SUBDIVISION 344 LOT 1 VILLAGE DOWNTOWN SUB LOT 127A $202.46 $4.05 $206.51 Page 12 338 Delinquent Certification 060823 RGH50701 WORTMAN, JEREMY K & TAYLOR 129 VILLAGE CROSSING WAY 59715 VILLAGE BOULEVARD MINOR SUBDIVISION 344 LOT 1 VILLAGE DOWNTOWN SUB LOT 129A $188.80 $3.78 $192.58RGH5112REESE HARGROVE, CYNTHIA 508 S 15TH AVE 59715 NORMANDY LOT 10 BLOCK 13 $268.42 $5.37 $273.79 RGH51349 32B SHAWNEE WAY LLC 4060 S 3RD AVE 59715 EAST END COMMERCIAL WAREHOUSES CONDOS UNIT 32B SHAWNEE INDUSTRIAL PARK $31.60 $0.63 $32.23 RGH5165 LONSDALE, WHITNEY RENN 502 N 9TH AVE 59715 IMES LOTS 1-2 BLOCK 36 $181.10 $3.62 $184.72RGH5203807 SOUTH BLACK AVENUE LLC PO BOX 347213 33234 DUDLEYS LOT 2 BLOCK 1 $417.61 $8.35 $425.96 RGH5220 LEACHMAN, H LOGAN & JAMIE 11330 BRIDGER CANYON RD 59715 GUYS 1ST EAST 62 1/2 OF NORTH 50 1/2 OF 1/2 ACRE LOT 1 TRACT R $114.31 $2.29 $116.60 RGH5239 420 N GRAND LLC 279 BRISTLECONE DR 78619 BEALLS 3RD LOTS 31-32 BLOCK 5 $243.92 $4.88 $248.80RGH5328LOGAN, JAMES L & MONICA B JL & MB LOGAN TRST 5337 N GILLIS PIER RD 49670 BEALLS 3RD LOTS 7-8 BLOCK 1 $490.78 $9.82 $500.60 RGH5377 POLASIK, JOSEPH 1616 S ROUSE AVE 59715 THOMPSONS 4 LOT 22 BLOCK 8 $0.90 $0.02 $0.92 RGH53878 RAMAKER, JILL FALCON 2224 SOURDOUGH RD 59715 SOURDOUGH VILLAGE CONDOS UNIT 6 $427.44 $8.55 $435.99RGH5411DEVITT, PHILIP & NELLIE 109 N BROADWAY AVE 59715 NP LOTS 12-13 BLOCK 32 $233.94 $4.68 $238.62 RGH5444 ATTICUS PRIME LLC 420 S WILLSON AVE 59715 FAIRVIEW LOTS 11-13 BLOCK 1 $620.42 $12.41 $632.83 RGH5512 JOHNSON, JAMES F 517 N WILLSON AVE 59715 BEALLS 3RD SOUTH 9' LOT 3, ALL LOTS 4-5 BLOCK 6 $334.43 $6.69 $341.12RGH5526HUEBEL, RITA KATHLEEN 4818 BERKMAN DR APT 2174 78723 THOMPSONS 4 LOT 2 BLOCK 1 SOUTH TRACY CONDO #A $164.33 $3.29 $167.62 RGH55661 HEXOM, HEATHER 1316 S CHURCH AVE 59715 ABELIN ESTATE CONDOS UNIT 1316 BOZEMAN CREEK ANNEX TR A $94.06 $1.88 $95.94 RGH5577 HOUSER, MARK DBA CULLIGAN 15 SHAWNEE WAY 59715 SHAWNEE INDUSTRIAL PARK LOT 1 BURRUP ANNEX MINOR SUBDIVISION 41 $1,372.50 $27.45 $1,399.95RGH5579FULLERTON, COWDREY & COWDREY COWDREY LEGACY TRUST 3230 E FRONTAGE RD 59715 BURRUP ANNEX TR A-1 COS 1365 $543.26 $10.87 $554.13 RGH5584 JOHNSON, ROSS A & HEIDI GRACE AMM JOHNSON TRUST 3576 E PALO VERDE ST 85296 HOFFMANS ALL LOT 8 & 17 FEET EASTSIDE LOT 9, WEST 3 FEET LOT 7 BLOCK A $296.02 $5.92 $301.94 RGH5650 MARTIN LAND LLC PO BOX 1167 59771 BAB-DAVIS TRACT 2 BLOCK 6 .521 ACRES $822.05 $16.44 $838.49 RGH5813 ARNOLD JR, ROBERT W PAMELA JAMGOCHIAN ARNOLD 605 N ROUSE AVE 59715 IMES LOTS 9-10 BLOCK 43 $244.55 $4.89 $249.44RGH5822VAN DER WEGE, KEES TREVOR &PATRICK D JOHNSON 1448 ASH DR 59715 BAB-DAVIS LOT 13A BLOCK 5 $217.30 $4.35 $221.65 RGH5862 JARVIS, MARK ADRIAN 4782 JACKSON CREED RD 59715 NP TRACT 5 ON ASSESSED PLATS,BEING 60 X 140' W SIDE TRACT 5 IN SE LOTS 1-4 NE LOTS 1-4 $317.27 $6.35 $323.62 RGH5902 MCCARTHY, JOSEPH 720 S 3RD AVE 59715 FAIRVIEW LOTS 12-13 & SOUTH 1/2 OF LOT 14 BLOCK 10 $415.60 $8.31 $423.91RGH5932GIBSON, ROCHELLE 8472 WAGON BOSS RD 59715 IMES LOT 14 & PORTION OF LOTS 15-17 BLOCK 45 $300.61 $6.01 $306.62 RGH5958 SANTOS, VANESSA BRANDT BACHA 408 N BOZEMAN AVE 59715 BEALLS 1ST TRACT 1 W 131' OF N 95' BLOCK 3 $450.72 $9.01 $459.73 RGH5961 THOMPSON, DIANE 16 SANDERS AVE 59718 BABCOCK-DAVIS TRACT 10 &NORTH 6' OF TRACT 1 $224.35 $4.49 $228.84RGH5979TIAHRT, NANCY A NANCY A TIAHRT LIVING TRUST 204 E LINCOLN ST 59715 THOMPSONS ADDITION #4 LOT 13 BLOCK 7 $283.95 $5.68 $289.63 RGH60064 GODFREY, BONNIE SUE 1463 KENYON DR 59715 THE KNOLLS AT HILLCREST BLOCK 1 LOT 13 $217.30 $4.35 $221.65 RGH6143 WALLER, TODD D 732 S TRACY AVE 59715 HOFFMANS LOTS 18-19 BLOCK G $406.14 $8.12 $414.26RGH6153LANDSGAARD, PAUL & PAM 1627 W MAIN ST #260 59715 NP TRACTS 1 & 2 IN NE4NW4 SURVEY 7P38 & ABANDONED MENARD LINE ADJCNT $543.26 $10.87 $554.13 RGH61691 LANDERS, FREDERICK P &JANELL C 4344 MORNING SUN DR 59715 3RD AVE CONDOS UNIT F BLDG 3 THOMPSONS ADDITION 3 BLK 4 LOT 3 REARRANGEMENT OF 3 $224.56 $4.49 $229.05 RGH6179 YURASHAK, CHAD & BLAIRE 311 E MAIN ST 59715 BEALLS 2ND TRACT B, BEING 75 X 170' BLOCK C $461.78 $9.24 $471.02RGH62639NORTH PEACH LLC 33 N BLACK AVE 59715 MENDENHALL MARKETPLACE CONDOS UNIT R-7B ORIGINAL TOWN SITE LOT 13-23 $95.28 $1.91 $97.19 RGH6271 A1 SECURITY STORAGE MLLC 1623 N ROUSE AVE 59715 NORTHEAST ANNEX TRACT 44 $2,440.20 $48.80 $2,489.00 RGH6359 REESE-HARGROVE, CYNTHIA 3529 FIELDSTONE DR W 59715 NORMANDY LOT 6 BLOCK 22 $304.59 $6.09 $310.68RGH63746CHANDLER III, WILLIAM D 1930 LITTLE COTTAGE LN 59718 MINOR SUB 467 LOT 1 HACOT CONDOMINIUMS UNIT 25 $225.20 $4.50 $229.70 RGH6456 HARRINGTON, CALVIN C 1437 CHERRY DR 59715 NEW HYALITE LOT 9 BLOCK 15 $325.96 $6.52 $332.48 RGH6472 PETERSON, RICHARD &BONNIE TYLER 3810 EASTWOOD LN 84109 NEW HYALITE LOT 2 BLOCK 2 $271.64 $5.43 $277.07RGH650753300 GRAF ST UN 88 LAND TRST PO BOX 11986 59719 SOUTH MEADOWS CONDO UNIT 88 $392.70 $7.85 $400.55 RGH6508 HARTSHORN, ANTHONY S & VICTORIA J BAKKER 1701 FIR CREST CT 59715 NEW HYALITE VIEW SUB AMENDED BLOCK 17 LOT 1 $291.63 $5.83 $297.46 RGH65217 STORY MILL HILL LLC PO BOX 13 59771 TRACT 1T-1 COS 1877B 7.5099 ACRES $543.26 $10.87 $554.13RGH6557SCHAFER, WILLIAM CURTIS 1902 S TRACY AVE 59715 THOMPSONS 3 LOT 12 BLOCK 1 $543.26 $10.87 $554.13 RGH6582 FIVE MIN MAJOR LLC 502 E COTTONWOOD ST 59715 NP ADD BLOCK 107 LOTS 1-2 N 120' OF LOTS PLAT C-23 $217.71 $4.35 $222.06 RGH65918 BRIDGE PHYSICAL THERAPY HLDGS 1119 WOODLAND DR 59718 LINDLEY PARK PLACE CONDO #E NP ADD LOT 1A BLK 22 PLAT C-23-A25 PLUS VAC ALLEY $31.01 $0.62 $31.63 RGH65927 1010 MAIN LLC 128 E DYER RD STE F 92707 LINDLEY PARK PLACE CONDO #301 NP ADD LOT 1A BLK 22 PLAT C-23-A25 PLUS VAC ALLEY $67.65 $1.35 $69.00RGH65934SCHILP, ROBERT J & JENNIFER A 6815 CRESTWAY 48301 LINDLEY PARK PLACE CONDO #308 NP ADD LOT 1A BLK 22 PLAT C-23-A25 PLUS VAC ALLEY $66.28 $1.33 $67.61 RGH6597 MORRIS, JOHN R 1215 N PINECREST DR 59715 NEW HYALITE LOT 14 BLOCK 3 $295.98 $5.92 $301.90 RGH6598 MORRIS, JOHN R & BRIGITTE 1215 N PINECREST DR 59715 NEW HYALITE LOT 13 BLOCK 3 $295.98 $5.92 $301.90RGH6602STUTSMAN, CYNTHIA &KRISTIE KIRBY/STOMMEL FAM REV LV TRST PO BOX 866 83340 IMES LOT 21A BLOCK 40 $216.59 $4.33 $220.92 RGH6605 CRAFTYS K&C LL 3300 ARABIAN RD 59602 THOMPSONS 4TH BLOCK 4 PHASE I WOODBROOK TOWNHOUSE UNIT 3 $183.27 $3.67 $186.94 RGH6619 LIEDBERG, KURA PARSLEY ANDREW M 432 N WILLSON AVE 59715 BEALLS 3RD LOTS 35-36 & 8'EAST SIDE OF WILLSON AVE ON WEST END OF LOTS 35-36 BLOCK 2 $268.01 $5.36 $273.37RGH6637GROSSENBACKER, JENNIFER PO BOX 6740 59771 ROUSES 1ST LOT 23 BLOCK H $152.12 $3.04 $155.16 RGH69344 CAMPEAU, ANTONI A PO BOX 5286 59717 FAIRVIEW LOTS 6-7 BLOCK 3 $304.48 $6.09 $310.57 RGH70350 GETZ JR, BERT A 225 SHADOWOOD LANE 60093.HBP RESIDENTIAL CONDOMINIUM UNIT 307 TRACYS 2 LOT 1A BLK A $181.82 $3.64 $185.46RGH70383508 MONTANA LLC 9 E LAMME ST 59715 HBP RESIDENTIAL CONDOMINIUM UNIT 508 TRACYS 2 LOT 1A BLK A $81.21 $1.62 $82.83 RGH81743 BLOCK 106 PARTNERS INC 618 N WALLACE AVE 59715 BLOCK 106 LOT A CONDO UNIT 101 AMENDED NP LOTS 6-14 BLOCK 106 $64.94 $1.30 $66.24 RGH81744 BLOCK 106 PARTNERS INC 618 N WALLACE AVE 59715 BLOCK 106 LOT A CONDO UNIT 102 AMENDED NP LOTS 6-14 BLOCK 106 $105.10 $2.10 $107.20RGH81745BLOCK 106 PARTNERS INC 618 N WALLACE AVE 59715 BLOCK 106 LOT A CONDO UNIT 103 AMENDED NP LOTS 6-14 BLOCK 106 $94.39 $1.89 $96.28 RGH82058 KBOZE LLC KATHERINE KELTER 483 N WILLSON AVE 59715 BEALLS 3RD ADD BLK 5 LOT 4A $118.11 $2.36 $120.47 RGH82062 LICHTY II, EDWARD T KELLY D CORRIGAN - TRUSTEES 21 CREST RD 94611 BEALLS 3RD ADD BLK 5 LOT 8A $118.04 $2.36 $120.40RGH83356HIGGINS, ELLIE MACDOUGALL C/O CANVASBACK PROP MGMT PO BOX 1856 59771 524 S BLACK CONDO UNIT A HOFFMANS SOUTH 45' OF LOT 9 TO LOT 12 BLOCK B $60.00 $1.20 $61.20 RGH83357 HIGGINS, ELLIE MACDOUGALL C/O CANVASBACK PROP MGMT PO BOX 1856 59771 524 S BLACK CONDO UNIT B HOFFMANS SOUTH 45' OF LOT 9 TO LOT 12 BLOCK B $60.00 $1.20 $61.20 RGH85108 NEXT PHASE LLC 235 SNOWY MOUNTAIN CIR #2 PMB 149 59730 MERIN CONDO UNIT 202 OP S1/2 LOTS 35-38 BL 1 $132.86 $2.66 $135.52RGH85122JAY, ALIDA 116 N BOZEMAN AVE UNIT 308 59715 MERIN CONDO UNIT 308 OP S1/2 LOTS 35-38 BL 1 $172.98 $3.46 $176.44 RGH85346 1504 LLC 6555 LONGWALK DR 94611 LEWIS SUBDIVISION LOT 4 PLAT F-4 $543.26 $10.87 $554.13 RGH8640 2511N LLC & UND 84%& 2332 LLC UND 16%PO BOX 1336 59715 STORY MILL ANNEXATION 5.6146 ACRES TRACT C2-A COS 1877B $543.26 $10.87 $554.13 TOTAL $335,745.89 $6,714.92 $342,460.81 Page 13 339 Memorandum REPORT TO:City Commission FROM:Tom Rogers, Senior Planner Chris Saunders, Community Development Manager Erin George, Deputy Director of Community Development Anna Bentley, Director of Community Development SUBJECT:Ordinance 2121 Provisional Adoption, of the 2103 Bridger Drive Zone Map Amendment Initially Establishing an R-2, Residential Moderate Density District, Zone to 0.5 and the Accompanying Adjacent Right-of way in Association with Annexation of the Same, Resolution 5434, the 2103 Bridger Drive Annexation, Application 21123 MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Ordinance RECOMMENDATION:Provisionally Adopt Ordinance 2121. 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 applicants and property owners, Kristal Jones and Brandn Green, seek to annex property totaling roughly 0.54 acres into the City limits and establish initial zoning of R-2, Residential Moderate Density. The property is currently zoned “Residential Suburban” within the county. Nearby municipal zoning includes Residential Single-Household Low Density (R-1) to the north and Residential Suburban (R-S) to the south. Land to the east and west is unincorporated and zoned “Residential Suburban” within the county. The future land use map in the Bozeman Community Plan 2020 designates the property as “Urban Neighborhood” which the R-2 district serves to implement. There is an existing home and above garage dwelling on the parcel. The Commission held a public hearing on the request on September 21, 2021 and acted to approve the application. The applicant finalized all required terms of annexation including easements and signed the associated annexation agreement. The associated annexation Resolution 5434 accompanies this initial zoning Ordinance. UNRESOLVED ISSUES:None 340 ALTERNATIVES:As determined by the Commission. FISCAL EFFECTS:No unusual fiscal effects have been identified. No presently budgeted funds will be changed by this Annexation or Zone Map Amendment. Future development will incur costs and generate review according to standard City practices. Attachments: 21123 2103 Bridger Drive ZMA Ordinance 2121.pdf 2103 Bridger Drive ZMA-2022.07.07.pdf Report compiled on: June 12, 2023 341 Ord 2121 Page 1 of 4 ORDINANCE 2121 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA AMENDING THE CITY OF BOZEMAN ZONING MAP TO INITIALLY DESIGNATE 0.54 ACRES AS R-2, RESIDENTIAL MODERATE DENSITY DISTRICT, KNOWN AS THE 2103 BRIDGER DRIVE ZONE MAP AMENDMENT, APPLICATION 21123. WHEREAS, the City of Bozeman has adopted zoning regulations and a zoning map pursuant to Sections 76-2-301 and 76-2-302, M.C.A.; and WHEREAS, Section 76-2-305, M.C.A. allows local governments to amend zoning maps if a public hearing is held and official notice is provided; and WHEREAS, Section 76-2-307, M.C.A. states that the Zoning Commission must conduct a public hearing and submit a report to the City Commission for all zoning map amendment requests; and WHEREAS, the City of Bozeman Zoning Commission has been created by Section 2.05.2700, BMC as provided for in Section 76-2-307, M.C.A.; and WHEREAS, Chapter 38, Article 2 of the Bozeman Unified Development Code sets forth the procedures and review criteria for zoning map amendments; and WHEREAS, the proposed zone map amendment application to amend the City of Bozeman Zoning Map to establish a zoning classification of R-23 (Residential Moderate Density) for approximately 0.54 acres has been properly submitted, reviewed, and advertised; and WHEREAS, after proper notice, the Bozeman Community Development Board acting in their capacity as the Zoning Commission held a public hearing on August 9, 2021 to receive and review all written and oral testimony on the request for a zone map amendment; and 342 Ordinance No. 2121, 2103 Bridger Drive ZMA Page 2 of 4 WHEREAS, the Bozeman Zoning Commission recommended to the Bozeman City Commission that application No. 22123 the 2103 Bridger Drive Zone Map Amendment, be approved as requested by the applicant; and WHEREAS, after proper notice, the City Commission held its public hearing on September 21, 2021, to receive and review all written and oral testimony on the request for the zone map amendment; and WHEREAS, the City Commission has reviewed and considered the zone map amendment criteria established in Section 76-2-304, M.C.A., and found that the proposed zone map amendment would be in compliance with the criteria. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: Section 1 That the zoning district designation of the following-described property is hereby designated as R-2, Residential Moderate Density District: An area of land comprised described as follows: 2103 Bridger Drive and more accurately described as Lots 14, 15, and 16, Ed Vogel Subdivision No. 1, [Plat E-47], according to the plat thereof, on file and of record in the office of the Clerk and Recorder, Gallatin County Montana; and located in the Southeast Quarter of Section 32, Township 1 South, Range 6 East, Township 1 South, Range 6 East, of P.M.M., City of Bozeman, Gallatin County, Montana. More particularly described as: Beginning at the northeast earner of said Lot 14; thence southerly 179'55'00", assumed azimuth from north, 323.10 feet along the east line of said Lot 14; thence westerly 269'55'00" azimuth 75.00 feet along the south line of said Lot 14, Lot 15 and Lot 16; thence northerly 359"55'00" azimuth 323.10 feet along west line of said Lot 16; thence easterly 089"55'00" azimuth 75.00 feet along the north line of said Lot 16, Lot 15 and Lot 14 to the point of beginning. 0.54 acres or 23,522 square feet. Subject to existing easements. All as depicted on the 2103 BRIDGER DRIVE Annexation Map. 343 Ordinance No. 2121, 2103 Bridger Drive ZMA Page 3 of 4 Section 2 Repealer. All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force and effect. Section 3 Savings Provision. This ordinance does not affect the rights and duties that matured, penalties that were incurred or proceedings that were begun before the effective date of this ordinance. All other provisions of the Bozeman Municipal Code not amended by this Ordinance shall remain in full force and effect. Section 4 Severability. That should any sentence, paragraph, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this ordinance as a whole, or any part or provision thereof, other than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman Municipal Code as a whole. Section 5 Codification. This Ordinance shall not be codified but shall be kept by the City Clerk and entered into a disposition list in numerical order with all other ordinances of the City and shall be organized in a category entitled “Zone Map Amendments.” Section 6 Effective Date. This ordinance shall be in full force and effect thirty (30) days after final adoption. 344 Ordinance No. 2121, 2103 Bridger Drive ZMA Page 4 of 4 PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on the 27th day of June, 2023. ____________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ____________________________________ MIKE MAAS City Clerk FINALLY PASSED, ADOPTED AND APPROVED by the City Commission of the City of Bozeman, Montana on second reading at a regular session thereof held on the _____ of __________, 2023. The effective date of this ordinance is _____________, ____, 2023. _________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: _______________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 345 346 Memorandum REPORT TO:City Commission FROM:Tom Rogers, Senior Planner Chris Saunders, Community Development Manager Erin George, Deputy Director of Community Development Anna Bentley, Director of Community Development SUBJECT:Ordinance 2138 Final Adoption, of the North 8th Zone Map Amendment Requesting Amendment of the City Zoning Map to Change the Zoning on 0.4828 Acres from R-4 (High Density Residential District) to R-5 (Residential Mixed-Use High Density District), Located on the Southwest Corner of North 8th Avenue and West Lamme Street, Application 22366 MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Ordinance RECOMMENDATION:Finally approve Ordinance 2138. 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 owner, Dark Horse Properties, LLC, and applicant, Intrinsik Architecture, submitted an application to rezone three parcels totaling 0.4828 acres from R-4 to R-5. The properties currently host a variety of residential and accessory structures with alley access. Future development plans were not submitted, or required, with the application. However, based on the applicant narrative it appears future development will be residential with the possibility utilization of the affordable housing incentives. The property is directly adjacent to the Midtown Urban Renewal District but not within the boundaries of the district. The primary differences between the R-4 and R-5 districts are in permitted uses and dimensional standards. R- 5 allows limited restaurant and retail uses and requires less land area per residential unit, allows 10 more feet of height or five stories, smaller setbacks, less parking, and no restrictions on lot coverage. Application materials can be viewed on the City’s development map at the following link. Application materials. The City Commission held a public hearing on this application on April 4, 2023 and voted unanimously (5:0) to approve the application. All application material can be viewed at the following link. April 4, 2023 video recording . 347 Cover memo with staff report. A noticing error was discovered after the public hearing on April 4, 2023. The adjacent property owners list prepared by the applicant was not complete pursuant to section 38.220.420, BMC. A revised property list was created and full public notice pursuant to section 38.220.420 was commenced for provisional Ordinance adoption. Public comment has been submitted. Public comments. On June 6, 2023 the Commission provisionally adopted Ordinance 2138. UNRESOLVED ISSUES:None ALTERNATIVES:As determined by the Commission. FISCAL EFFECTS:No unusual fiscal effects have been identified. No presently budgeted funds will be changed by this zone map amendment. Attachments: 22366 North 8th Ordinance 2138.pdf 22007974 X-ZMA-4.5.23.pdf Report compiled on: June 14, 2023 348 Ord 2138 Page 1 of 5 ORDINANCE 2138 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA AMENDING THE CITY OF BOZEMAN ZONING MAP TO REZONE LAND FROM R-4, RESIDENTIAL HIGH DENSITY, TO R-5, RESIDENTIAL MIXED-USE HIGH DENSITY, ON 0.4828 ACRES, KNOWN AS THE NORTH 8TH ZONE MAP AMENDMENT, APPLICATION 21443. WHEREAS, the City of Bozeman has adopted zoning regulations and a zoning map pursuant to Sections 76-2-301 and 76-2-302, M.C.A.; and WHEREAS, Section 76-2-305, M.C.A. allows local governments to amend zoning maps if a public hearing is held and official notice is provided; and WHEREAS, Section 76-2-307, M.C.A. states that the Zoning Commission must conduct a public hearing and submit a report to the City Commission for all zoning map amendment requests; and WHEREAS, the City of Bozeman Zoning Commission has been created by Section 2.05.2700, BMC as provided for in Section 76-2-307, M.C.A.; and WHEREAS, Chapter 38, Article 2 of the Bozeman Unified Development Code sets forth the procedures and review criteria for zoning map amendments; and WHEREAS, the proposed zone map amendment application to amend the City of Bozeman Zoning Map to rezone an existing parcel from R-4 (Residential High Density) to R-5 (Residential Mixed-Use High Density) for approximately 0.4828 acres has been properly submitted, reviewed, and advertised; and 349 Ordinance No. 2138, North 8th ZMA Page 2 of 5 WHEREAS, after proper notice, the Bozeman Community Development Board acting in their capacity as the Zoning Commission held a public hearing on March 6, 2023 to receive and review all written and oral testimony on the request for a zone map amendment; and WHEREAS, the Bozeman Zoning Commission recommended to the Bozeman City Commission that application No. 21443 the North 8th Zone Map Amendment, be approved as requested by the applicant; and WHEREAS, the City Commission held its public hearing on April 4, 2023, to receive and review all written and oral testimony on the request for the zone map amendment; and WHEREAS, an error was discovered regarding the notice required by Bozeman Municipal Code section 38.220.420, requiring a correct public notice and another public hearing for the Ordinance; and WHEREAS, after proper notice, the City Commission held a public hearing for provisional adoption of Ordinance No. 2138 at its public hearing on June 6, 2023, to receive and review all written and oral testimony on the request for the zone map amendment; and WHEREAS, the City Commission has reviewed and considered the zone map amendment criteria established in Section 76-2-304, M.C.A., and found that the proposed zone map amendment would be in compliance with the criteria. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: Section 1 That the zoning district designation of the following-described property is hereby designated as R-5, Residential Mixed-Use High Density: An area of land comprised described as follows: Lots 1, 2, 3, 4, 5 and 6, Block 7, SPRINGBROOK ADDITION TO BOZEMAN, [Plat B- 24], according to the plat thereof, on file and of record in the office of the Clerk and Recorder, Gallatin County, Montana, and located in the Northeast Quarter of Section 12, Township 2 South, Range 5 East of P.M.M., together with portions of the adjacent North 350 Ordinance No. 2138, North 8th ZMA Page 3 of 5 8th Avenue right of way, West Lamme Street right of way and Alley right of way, all described as follows: Beginning at the southeast corner of Lot 6 of said Block 7; thence westerly 272°33'11", assumed azimuth from north, 150.18 feet along the south line of said Lot 6 and its westerly extension to the centerline of the alley in said Block 7; thence northerly 002°35'37" azimuth 180.00 feet along said centerline to the centerline of Lamme St; thence easterly 092°40'15" azimuth 180.23 feet along last said centerline to the centerline of 8th Avenue; thence southerly 182°35'48" azimuth 180.00 feet along last said centerline to the easterly extension of the south line of said Lot 6; thence westerly 272°33'11" azimuth 30.00 feet along the last said extension to the point of beginning. Area of Lots equals 21,031 square feet, 0.4828 acre or 1,953.8 square meters Area of Alley equals 1,500 square feet, 0.0344 acre or 139.4 square meters Area of 8th Avenue and Lamme Street ROW = 10,207 square feet, 0.2343 acre or 948.3 square meters Section 2 Repealer. All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force and effect. Section 3 Savings Provision. This ordinance does not affect the rights and duties that matured, penalties that were incurred or proceedings that were begun before the effective date of this ordinance. All other provisions of the Bozeman Municipal Code not amended by this Ordinance shall remain in full force and effect. Section 4 Severability. That should any sentence, paragraph, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this ordinance as a whole, or any part or provision thereof, other than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman Municipal Code as a whole. 351 Ordinance No. 2138, North 8th ZMA Page 4 of 5 Section 5 Codification. This Ordinance shall not be codified but shall be kept by the City Clerk and entered into a disposition list in numerical order with all other ordinances of the City and shall be organized in a category entitled “Zone Map Amendments.” Section 6 Effective Date. This ordinance shall be in full force and effect thirty (30) days after final adoption. 352 Ordinance No. 2138, North 8th ZMA Page 5 of 5 PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on the 6th day of June, 2023. ____________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ____________________________________ MIKE MAAS City Clerk FINALLY PASSED, ADOPTED AND APPROVED by the City Commission of the City of Bozeman, Montana on second reading at a regular session thereof held on the ____ of ________________, 2023. The effective date of this ordinance is _____________, ____, 2023. _________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: _______________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 353 354 Memorandum REPORT TO:City Commission FROM:Tom Rogers, Senior Planner Chris Saunders, Community Development Manager Erin George, Deputy Director of Community Development Anna Bentley, Director of Community Development SUBJECT:Ordinance 2141 Final Adoption, of the West Kagy Zone Map Amendment 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 MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Ordinance RECOMMENDATION:Finally adopt Ordinance 2141. 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 owner, Reuter Walton Development, 4450 Excelsior Boulevard, St. Louis Park, MN 55416 with SMA Architects, 109 East Oak Street, Suite 2E, Bozeman, MT 59715 acting as Applicant and Representative, submitted an application to rezone a property totaling 2.889 acres, including adjacent right-of-way, from R-4 (Residential High Density) to R-5 (Residential Mixed- use High Density). Although no specific development plans were submitted with the application the narrative states student housing will be the proposed use. The subject property currently hosts the Bozeman Church of Christ building and associated parking area. The property is on the corner of West Kagy Boulevard and South 19th Avenue. Both streets are designated Principal Arterials according to the Bozeman Area Transportation Plan, 2017 Update. Both R-4 and R-5 are considered high density residential zoning districts. Although there are no differences in the type of residential configurations there are differences in intensity and permitted commercial uses. R-5 allows 355 restaurants and retail as accessory uses to the residential with other limitations. The R-5 district has fewer lot size (area/width) restrictions which allows considerable more development on a given property. Lot coverage and floor area ratios (FAR) are unlimited. Building height is greater which generally allows an additional story, up to five (5) stories depending on construction and floor pack configuration. On January 10, 2023 the City Commission voted unanimously (5:0) to approve the zoning change. The applicant has provide all necessary documentation to finalize the zoning change. Provisional adoption of Ordinance 2141 was on June 6, 2023. UNRESOLVED ISSUES:None identified at this time. ALTERNATIVES:As determined by the Commission. FISCAL EFFECTS:No unusual fiscal effects have been identified. No presently budgeted funds will be changed by this zone map amendment. Attachments: 22249 1825 West Kagy ZMA Ordinance 2141.pdf 22025ZMA1-24X36 Signed.pdf Report compiled on: June 14, 2023 356 Ord 2141 Page 1 of 5 ORDINANCE 2141 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA AMENDING THE CITY OF BOZEMAN ZONING MAP TO REZONE 4.885 ACRES FROM R-4, RESIDENTIAL HIGH DENSITY DISTRICT, TO R-5, RESIDENTIAL MIXED-USE HIGH DENSITY DISTRICT, KOWN AS THE WEST KAGY ZONE MAP AMENDMENT, APPLICATION 22249. WHEREAS, the City of Bozeman has adopted zoning regulations and a zoning map pursuant to Sections 76-2-301 and 76-2-302, M.C.A.; and WHEREAS, Section 76-2-305, M.C.A. allows local governments to amend zoning maps if a public hearing is held and official notice is provided; and WHEREAS, Section 76-2-307, M.C.A. states that the Zoning Commission must conduct a public hearing and submit a report to the City Commission for all zoning map amendment requests; and WHEREAS, the City of Bozeman Zoning Commission has been created by Section 2.05.2700, BMC as provided for in Section 76-2-307, M.C.A.; and WHEREAS, Chapter 38, Article 2 of the Bozeman Unified Development Code sets forth the procedures and review criteria for zoning map amendments; and WHEREAS, the proposed zone map amendment application to amend the City of Bozeman Zoning Map to rezone from R-4, Residential High Density, to R-5, Residential Mixed- Use High Density, for approximately 4.885 acres has been properly submitted, reviewed, and advertised; and 357 Ordinance No. 2141, West Kagy ZMA Page 2 of 5 WHEREAS, after proper notice, the Bozeman Community Development Board acting in their capacity as the Zoning Commission held a public hearing on December 19, 2022 to receive and review all written and oral testimony on the request for a zone map amendment; and WHEREAS, the Bozeman Zoning Commission recommended to the Bozeman City Commission that application No. 22249 the West Kagy Zone Map Amendment, be approved as requested by the applicant; and WHEREAS, after proper notice, the City Commission held its public hearing on January 10, 2023, to receive and review all written and oral testimony on the request for the zone map amendment; and WHEREAS, the City Commission has reviewed and considered the zone map amendment criteria established in Section 76-2-304, M.C.A., and found that the proposed zone map amendment would be in compliance with the criteria. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: Section 1 Legislative Findings The City Commission hereby makes the following findings in support of adoption of this Ordinance: 1. The City adopted a growth policy, the Bozeman Community Plan 2020, by Resolution 5133 to establish policies for development of the community including zoning; 2. The Bozeman Community Plan 2020, Chapter 5, sets forth the policies by which the City reviews and applies the criteria for amendment of zoning established in 76-3-304, MCA; 3. Zoning, including amendments to the zoning map, must be in accordance with an adopted growth policy; 4. A staff report analyzing the required criteria for a zone map amendment, including accordance to the Bozeman Community Plan 2020, has found that the required criteria are satisfied; 5. The two required public hearings were advertised as required in state law and municipal 358 Ordinance No. 2141, West Kagy ZMA Page 3 of 5 code and all persons have had opportunity to review the materials applicable to the application and provide comment prior to a decision; 6. The Bozeman Zoning Commission has been established as required in state law and conducted their required public hearing; and after consideration of application materials, staff analysis and report, and all submitted public comment recommended approval of the requested R-5 district. 7. The City Commission conducted a public hearing to provide all interested parties the opportunity to provide evidence and testimony regarding the proposed amendment prior to the City Commission acting on the application. 8. The City Commission considered the application materials, staff analysis and report, Zoning Commission recommendation, all submitted public comment, and all other relevant information. 9. The City Commission determines that, as set forth in the staff report and incorporating the staff findings as part of their decision, the required criteria for approval of the West Kagy Zone Map Amendment have been satisfied. Section 2 That the zoning district designation of the following-described property is hereby designated as R-5, Residential Mixed-Use High Density District: An area of land comprised described as follows: 359 Ordinance No. 2141, West Kagy ZMA Page 4 of 5 Section 3 Repealer. All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force and effect. Section 4 Savings Provision. This ordinance does not affect the rights and duties that matured, penalties that were incurred or proceedings that were begun before the effective date of this ordinance. All other provisions of the Bozeman Municipal Code not amended by this Ordinance shall remain in full force and effect. Section 5 Severability. That should any sentence, paragraph, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this ordinance as a whole, or any part or provision thereof, other than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman Municipal Code as a whole. Section 6 Codification. This Ordinance shall not be codified but shall be kept by the City Clerk and entered into a disposition list in numerical order with all other ordinances of the City and shall be organized in a category entitled “Zone Map Amendments.” Section 7 Effective Date. This ordinance shall be in full force and effect thirty (30) days after final adoption. 360 Ordinance No. 2141, West Kagy ZMA Page 5 of 5 PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on the __ th day of June, 2023. ____________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ____________________________________ MIKE MAAS City Clerk FINALLY PASSED, ADOPTED AND APPROVED by the City Commission of the City of Bozeman, Montana on second reading at a regular session thereof held on the ____ of ________________, 2023. The effective date of this ordinance is _____________, ____, 2023. _________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: _______________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 361 N 89°40'58" E 477.88'S 00°12'21" W 363.45'S 89°40'47" W 478.76'N 00°19'41" E 408.49' REVISIONSHEETDESIGNED BY:QUALITY CHECK:JOB NO.FIELDBOOKDRAWN BY:DATE:22025ZMA1REV DATE 1825 W KAGY BOULEVARD CITY OF BOZEMAN, GALLATIN COUNTY, MONTANA SURVEY OF LOT 7 OF THE REMINGTON ADD. (I-20) & TRACT B OF THE AMENDED PLAT OF REMINGTON ADD. LESS MDT R/W (I-20-A), LOCATED IN SW 1/4, SEC. 13, T2S, R5E, PMMB22-0254/7/23195/781 OF 1BST406.586.0277 • tdhengineering.com Engineering 234 E. BABCOCK ST., SUITE 3 • BOZEMAN, MONTANA 59715 ZONING R-5 (PREVIOUSLY ZONED R-4)A TRACT OF LAND BEING LOT 7 OF THE REMINGTON ADDITION (I-20), TRACT B OF THE AMENDED PLAT OF REMINGTONADDITION (I-20-A) LESS THE MDT RIGHT-OF-WAY & PORTIONS OF SOUTH 19TH AVENUE & WEST KAGY BOULEVARD,LOCATED IN THE SW 1/4 OF SECTION 13, T2S, R5E, PMM, CITY OF BOZEMAN, GALLATIN COUNTY, MONTANAAREA: 4.485 ACRES(COMPUTED AREA IN SQUARE FEET: 195,373)362 Memorandum REPORT TO:City Commission FROM:Nakeisha Lyon, Associate Planner Brian Krueger, Development Review Manager Erin George, Deputy Director of Community Development Anna Bentley, Director of Community Development SUBJECT:Ordinance 2131, Provisional Adoption of The Short Term Rental Affirmative Obligations Text Amendment, Application 23147 MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Ordinance RECOMMENDATION:Having reviewed and considered the staff report, draft ordinance, public comment, and all information presented, I hereby adopt the findings presented in the staff report for application 23147 and move to provisionally adopt Ordinance 2131, The Short Term Rental Affirmative Obligations. 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 City regulates short term rentals (STRs) within our community through Section 38.360.260 of the Bozeman Municipal Code. These standards set forth where STRs are allowed to locate based on type, require STR hosts to register their rental with the city prior to operation, and to submit annual renewals. Such registration includes submittal of information, payment of a registration fee, and completion of a safety inspection prior to city approval. Since the adoption of these provisions, the prevalence of STRs has increased, and monitoring of online listings has revealed a significant number of unregistered STRs. The city has undertaken enforcement efforts to bring more STRs into compliance, but these efforts are time-consuming and costly for city staff. On August 9, 2022, the City Commission directed staff to update STR regulations in two phases. The first phase includes drafting an Ordinance regulating short term rental hosting platforms as one measure to increase compliance with existing regulations and to require regular reporting to obtain more information about STRs in Bozeman. The second phase will include analysis of the STR types and where they are allowed. As drafted, Ordinance 2131 (Attachment 1) implements the first phase – regulating hosting platforms and other measures to increase compliance 363 with existing regulations. It revises the STR regulations within Sec. 38.360.260 to include obligations for hosting platforms such as hosting permit requirements for booking transactions, quarterly reporting requirements, and violation and enforcement provisions regarding the removal of listings from hosting platforms without a hosting permit. The proposed revisions also include administrative changes to improve compliance and support enforcement, such as changing the term “registration” to “permit”, allowing the City to issue administrative subpoenas to obtain information, requiring hosts to disclose where they have listed the STR, requiring regular safety inspections of STRs every three years, and imposing specific civil penalties for a violation. For more details, please see the attached staff report. UNRESOLVED ISSUES:None related to Affirmative Obligations Ordinance 2131. ALTERNATIVES:1. Recommend ordinance not be approved based on findings of non- compliance with the applicable criteria contained within the staff report; 2. Recommend with directed amendments prior to adoption; or 3. Open and continue the public hearing on the application, with specific direction to staff to supply additional information or to address specific items. FISCAL EFFECTS:None at this time related to this Amendment. Attachments: 23147 CC Staff Report - STR Affirmative Obligations Ordinance 2131.pdf Attachment 1 - Ordinance 2131.pdf Attachment 2 - STR Affirmative Obligations Memo 01.03.2023.pdf Attachment 3 - STR Focus Group Summary 02.07.2023.pdf Report compiled on: June 22, 2023 364 Page 1 of 15 23147 Staff Report for the Short Term Rental Affirmative Obligations Text Amendment, Ordinance 2131 Public Hearings: Community Development – June 5, 2023 City Commission – June 27, 2023 Project Description: Amend Bozeman Municipal Code (BMC) Section 38.360.260. Short Term Rentals to include regulation of hosting platforms that facilitate booking transactions of short term rentals and revise administrative provisions. Project Location: Revisions to the text are applicable City-wide in all zoning districts where short term rentals are currently allowed per Division 38.310 – Permitted Uses. Recommendation: Meets applicable criteria for approval. Community Development Board Motion: Having reviewed and considered the staff report, draft ordinance, public comment, and all information presented, I hereby adopt the findings presented in the staff report for application 23147 and move to recommend approval of Ordinance 2131. City Commission Recommended Motion: Having reviewed and considered the staff report, draft ordinance, public comment, recommendation from the Community Development Board, and all information presented, I hereby adopt the findings presented in the staff report for application 23147, and move to provisionally adopt Ordinance 2131. Report: June 22, 2023 Staff Contact: Nakeisha Lyon, Associate Planner Agenda Item Type: Action – Legislative 365 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 2 of 15 TABLE OF CONTENTS EXECUTIVE SUMMARY ...................................................................................................... 2 Project Summary ................................................................................................................. 2 Unresolved Issues ............................................................................................................... 3 Public Comment.................................................................................................................. 3 Community Development Board ........................................................................................ 4 Alternatives ......................................................................................................................... 4 SECTION 1 - RECOMMENDATION AND FUTURE ACTIONS ........................................ 4 SECTION 2 - TEXT AMENDMENT STAFF ANALYSIS AND FINDINGS ....................... 5 Section 76-2-304, MCA Zoning Regulations Criteria (A-K) ............................................. 5 PROTEST NOTICE FOR ZONING AMENDMENTS ......................................................... 12 APPENDIX A - DETAILED BACKGROUND AND PROJECT DESCRIPTION .............. 12 APPENDIX B - NOTICING AND PUBLIC COMMENT .................................................... 14 APPENDIX C - APPLICANT INFORMATION AND REVIEWING STAFF .................... 15 FISCAL EFFECTS ................................................................................................................. 15 ATTACHMENTS ................................................................................................................... 15 EXECUTIVE SUMMARY This report is based on the proposed ordinance text and public comment received to date. Project Summary Starting in July 2016, The Bozeman City Commission began considering issues related to short term rentals (STRs) within our community. This ultimately led to the adoption of Ordinance 1974, which constitute the current standards for STRs denoted in Section 38.360.260 of the BMC. These standards set forth where STRs are allowed to locate based on type, and require STR hosts to register their rental with the City of Bozeman (City) prior to operation, and to submit annual renewals. Such registration includes submittal of information, payment of a registration fee, and completion of a safety inspection prior to city approval. Since the adoption of these provisions, the prevalence of STRs has increased, and monitoring of online listings has revealed a significant number of unregistered STRs. The City has undertaken enforcement efforts to bring more STRs into compliance; these efforts are time-consuming and costly for city staff. 366 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 3 of 15 Since 2020, the City Commission has received several public comments regarding STRs from residents, primarily expressing concerns related to long-term rental availability in Bozeman. Comments received from hosts and property management companies largely focused on a desire for better enforcement of non-compliant STRs, while calling attention to the role of STR income in hosts’ ability to meet their mortgage responsibilities and financial security. In an effort to balance these factors among other housing concerns, the City Commission approved the Bozeman Community Housing Action Plan in November 2019, with amendments in January 2020. This Action Plan recommends on-going evaluation of regulatory policies related to STRs. Based on these recommendations, the Bozeman City Commission held a work session in August 2022 to discuss short term rentals. Within this work session, the City Commission directed staff to update STR regulations in two phases. The first phase included drafting an Ordinance regulating short term rental hosting platforms as one measure to increase compliance with existing regulations and to require regular reporting to obtain more information about STRs in Bozeman. The second phase will include analysis of the STR types and where they are allowed. As drafted, Ordinance 2131 (Attachment 1) implements the first phase – regulating hosting platforms and other measures to increase compliance with existing regulations. It revises the STR regulations within Sec. 38.360.260 to include obligations for hosting platforms such as hosting permit requirements for booking transactions, quarterly reporting requirements, and violation and enforcement provisions regarding the removal of listings from hosting platforms without a hosting permit. The proposed revisions also include administrative changes to improve compliance and support enforcement, such as changing the term “registration” to “permit”, allowing the City to issue administrative subpoenas to obtain information, requiring hosts to disclose on which platforms they have listed the STR, requiring regular safety inspections of STRs every three years, and imposing specific civil penalties for a violation. Unresolved Issues None. Public Comment Written public comment will be archived and available through the project folder in the City’s Laserfiche archive. Comments provided orally at public meetings will be available through the recordings of those public meetings. Links to recordings will be added to this report as the review of the project moves forward. One written comment and three oral comments specific to this amendment have been received to date. Comments regarding this amendment include: 367 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 4 of 15 1. Concerns regarding previous title of item on Community Development Board agenda being misleading. 2. Concerns regarding the safety inspection requirement every three years by the Fire Department. (See additional information on page 8). 3. Concerns regarding data collection and reporting requirements of Ordinance 2131. 4. Concerns regarding public engagement with STR hosts for drafting Ordinance 2131. Community Development Board The Community Development Board (CDB) met on June 5, 2023 to consider the proposed amendments. The video recording of the meeting is available through the City’s website. Discussion of the amendment begins at 7:28 in the recording. Questions to staff begin at about 19:22 and board discussion at 1:04:19. Three oral public comments were received. The Board voted 7-0 to recommend approval of the ordinance as written. Discussion and concerns of the CDB included: 1. Overall support for Ordinance 2131 and the two-phased approach to short term rental regulation changes. 2. Concerns regarding previous title of item on agenda being misleading. 3. Concerns regarding the safety inspection requirement every three years by the Fire Department. (See additional information on page 8). 4. Concerns regarding data collection and reporting requirements of Ordinance 2131; ensuring requested data is necessary for improved compliance. Alternatives 1. Recommend ordinance not be approved based on findings of non-compliance with the applicable criteria contained within the staff report; 2. Recommend amendments prior to adoption; or 3. Open and continue the public hearing on the application, with specific direction to staff to supply additional information or to address specific items. SECTION 1 - RECOMMENDATION AND FUTURE ACTIONS Having considered the criteria established for a text amendment, the Staff finds the amendments meet the minimum criteria for approval as proposed. The Community Development Board in their capacity as the Zoning Commission held a public hearing on these amendments on June 5, 2023, at 6 pm. The board recommended the amendment be adopted. The City Commission will hold a public hearing on the text amendment on June 27, 2023 at 6:00 p.m. and decide whether the proposed amendments should be codified or not. 368 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 5 of 15 SECTION 2 - TEXT AMENDMENT STAFF ANALYSIS AND FINDINGS In considering applications for amendment approval under this title, the advisory boards and City Commission must consider the following criteria (A-D) and guidelines (E-K). As an amendment is a legislative action, the Commission has broad latitude to determine a policy direction. A zone text amendment must be in accordance with the growth policy (criteria A) and be designed to secure safety from fire and other dangers (criteria B), promote public health, public safety, and general welfare (criteria C), and facilitate the provision of transportation, water, sewerage, schools, parks and other public requirements (criteria D). Therefore, to approve a zone text amendment the Commission must find Criteria A-D are met. In addition, the Commission must also evaluate guidelines E-K as factors for consideration, and may find the zone text amendment to be positive, neutral, or negative with regards to these considerations. To approve the zone text amendment, the Commission must find the positive outcomes of the amendment outweigh negative outcomes for guidelines E-K. In determining whether these criteria and guidelines are met, Staff considers the entire body of plans and regulations for land use and development. Standards which prevent or mitigate negative impacts are incorporated throughout the entire municipal code but are principally in Chapter 38, Unified Development Code. The existing municipal code provisions regulating STRs were, at the time of adoption, found to satisfy all of the required criteria. As such, the focus of this report is only on the amendments proposed. Where a finding of neutral is presented, it represents that the criteria or guideline has been considered and the change does not materially advance or detract from compliance. Therefore, a finding of neutral is not necessarily an indication of a deficiency in the proposed amendments or the existing standards. Section 76-2-304, MCA Zoning Regulations Criteria (A-K) Zoning regulations must be: A. Be in accordance with a growth policy. Yes, criterion is met. The proposed amendments are in conformance with the growth policy. As the growth policy provides a high level vision of how a community hopes to develop over time, it does not dictate uses or specific standards to the level of detail contained in this ordinance. However, it does identify issues and priorities for consideration with specific goals and objectives that are desired outcomes. The Bozeman Community Plan 2020 (BCP2020), adopted in November 2020, establishes the City’s policies for growth and regulation of land uses and development. It continues concepts and community priorities that were established in several prior growth policies. Prior growth policies encouraged creation of development standards that supported predictable review processes and addressed areas of community concerns. 369 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 6 of 15 The BCP2020 includes the following relevant goals and objectives: R-1.1 Be reflective: use past experience to inform future decisions. R-1.7 Be flexible: willingness and ability to adopt alternative strategies in response to changing circumstances. R-2.5 Technical Soundness: Identify solutions that reflect best practices that have been tested and proven to work in similar local or regional contexts. DCD-4.1 Implement a regulatory environment that supports the Community Plan goals: Ensure that the Planning Department is supported with the resources required to effectively implement this plan, to dedicate staff to long range and regional planning efforts, and to process development applications expeditiously. With the increased prevalence of STRs within our community, the amount of unregistered STRs has become a time-consuming and costly challenge for city staff to monitor and address. In accordance with goal R-1.1, the City continues to be reflective in its discussions regarding the existing regulation of STRs in order to inform policy decisions that are appropriate in addressing code compliance issues. Based on the discussion between staff and City Commission during the Short Term Rental Work Session, platform compliance is one unique policy option to help improve and increase compliance with existing regulations by placing more of a burden for compliance on the booking platforms. The proposed amendments to Sec. 38.360.260 establish platform liability which gives the City the right to enforce and enact rules and ordinances that penalize hosting platforms that do not comply with these regulations. The specific obligations on hosting platforms include that each STR listing must include the City’s STR permit number prior to the occurrence of a booking transaction, and hosting platforms are responsible for removing unregistered STR listings from their software or portals to prevent the booking of unregistered STRs when the platform knows or should know that the host is not in compliance with City regulations. These proposed amendments strengthen enforcement mechanisms within the City’s STR program to ensure platforms, hosts, and operators are in compliance with local regulations. The proposed amendments demonstrate a willingness to adopt alternative strategies in response to changing circumstances as it relates to STRs within our community per goal R- 1.7. With the rise in utilization of online booking agencies that facilitate STR transactions such as AirBnB, HomeAway, and VRBO, municipalities across the nation have successfully implemented affirmative obligation ordinances similar to Ordinance 2131 in order to verify that homes offered as STRs are lawfully registered in accordance with applicable regulations. The ability to identify a solution that aligns with national best practices and has worked in jurisdictions with similar local and/or regional contexts per goal R-2.5 is also demonstrated by the proposed amendments. Staff has reviewed the STR programs, ordinances, and hosting obligation regulations of over a dozen municipalities as denoted within Attachment 2 in order to draft Ordinance 2131 which incorporates best practices for hosting obligation 370 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 7 of 15 regulations that serve to improve compliance and the ability to enforce regulations on platforms, owners, and operators within our community. By meeting the three abovementioned goals, the City also is able to further goal DCD-4.1 which strives to implement regulatory environment that supports the Community Plan goals by ensuring the Planning Department is supported with the resources required to effectively implement this plan, to dedicate staff to long range and regional planning efforts, and to process development applications expeditiously. The inclusion of obligations for hosting platforms provides the necessary mechanisms needed for compliance by the Code Enforcement Division under Community Development by allowing for a more proactive administrative enforcement tool rather than only to assess violators after the fact. The ability for violations to be placed on both hosts and hosting platforms alike promotes increased awareness of local regulations and strengthens chances of compliance. These proposed provisions also encourage hosting platforms to work closely with the City in order to ensure listed STRs are in compliance and provides accurate STR reporting for comparison and analysis against the City’s current monitoring and tracking software. The proposed amendments furthers all four of the abovementioned goals by including specific hosting permit and administrative changes to the existing regulations to provide a more effective overall STR program. These proposed amendments improve the safety inspection requirements associated with the STR hosting permit application process to create a self-certification process for annual renewals, and a required three year fire inspection after the initial application for active STRs. The incorporation of language regarding affordable housing incentives and affordability covenants has also been included to ensure that dwellings built under these affordability provisions may not be used as a STR. Additionally, language to more effectively administered the program, remove redundancies, and clarify provisions regarding renewal of a STR hosting permit, termination of the use of a STR and procedures for lapsed STR hosting permits have been included. Finally, the level of detail associated with the text amendment is beyond the specificity found and intended in the Community Plan. No element of the proposed ordinance affects the future land use map as the process amendments do not change land use designations or zoning district boundaries. Therefore, no analysis of correspondence to the future land use map is provided. B. Secure safety from fire and other dangers. Yes, criterion is met. Initial inspections by the City’s Fire department help ensure that locations are safe to be used as a short term rental. As denoted in Sec. 38.360.230.H.3, a fire inspection is required prior to the issuance of a hosting permit. As proposed with this ordinance, subsequent inspections will occur every three years by the City’s Fire department with a self-certification of compliance required during the years in which an inspection is not required as part of the annual renewal of a STR hosting permit. If a permit lapses for any 371 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 8 of 15 period of time, a new fire inspection is required upon reapplication for a STR hosting permit. Additionally, upon evidence of non-compliance, the City’s Fire Marshal may require a fire inspection as deemed necessary. For example, STRs which lack adequate egress from sleeping areas, fire suppression or access, or compliance with other adopted safety standards will not be approved. Discussion by the Board and public comments received on this text amendment at the CDB hearing expressed concerns on the new three year safety inspection requirement stating a lack of justification for this requirement and increased cost to STR operators. The board also questioned whether this requirement is more stringent than safety inspections associated with hotels or motels, wanting to ensure if STRs are not being held to a higher level of scrutiny. The incorporation of a three year safety inspection requirement for active STRs is based on the expertise of the Fire Marshall and Fire Inspectors whom perform these inspections. Many requirements of the City’s fire safety inspection checklist require ongoing maintenance (i.e. smoke detectors and fire extinguishers in operable condition), or may be damaged by guests. This change will allow the Fire Department to better ensure that compliance with fire and safety codes continues after the initial inspection of the STR in order to reduce safety hazards. Regarding inspections of hotels and motels, the Fire Department performs annual inspections on these establishments. As a commercial lodging use, hotels and motels are built to a higher life safety standard than a residential dwelling unit because transient guests are not expected to learn the patterns and functions (such as egress routes) of a structure on a permanent basis. As short-term rentals do involve renting to transient guest, but may also involve longer residential use between rentals, the Fire Department believes inspections every three years will help ensure safe conditions while not being as onerous as the annual inspections required of hotels and motels. All applicable development standards and building code standards for fire resistance, exiting, and other protections remain in place and are applicable to receive a short tern rental permit. Building and fire standards and codes are designed to mitigate impacts, provide a safe environment, and protect from various dangers. Please see response to Criterion C also. C. Promote public health, public safety, and general welfare. Yes, criterion is met. The existing standards addressing this criterion remain in place such as floodplain protections, provision of water and sewer services, and similar. Standards remain for setbacks, light and air, emergency services, and other issues to protect public health and physical safety. In addition to the fire inspection required prior to STR hosting permit approval and issuance, the Health Department’s implementation of state law requires a public accommodation license for all STRs. A public accommodation license requires an inspection from a local sanitarian which addresses health and safety standards applicable to this use per Montana Code Annotated § 50-51-301. Any structure which does not pass these inspections 372 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 9 of 15 will not be allowed a STR permit. The City continues to coordinate its review process for STRs with the Health Department to ensure that all required inspections have been passed prior to approval of use of an STR. Sec. 38.360.230.K.1 includes additional suspension, revocation, and administrative and civil remedies regarding the operation of a short term rental that may fail to comply with the Bozeman Municipal Code; create a public nuisance or breach of peace, cause danger to public health, safety, welfare, or morals; cancellation of any associated licenses or registrations; and securing a STR permit by fraud or misrepresentation. Civil penalties denoted in Sec. 38.360.230.K.3 may be applicable to any violation not to exceed $500.00 per day per violation which is applicable to an owner of any STR and a hosting platform. Additional standards within the BMC remain unchanged by this ordinance; including a previously adopted noise ordinance to ensure adequate public safety and a healthy environment. Applicable noise standards are in Chapter 16, article 6, as applicable. See also responses to Criteria B and D. D. Facilitate the adequate provision of transportation, water, sewerage, schools, parks and other public requirements. Yes, criterion is met. Standards for the provision of municipal transportation, water, sewerage, schools, parks, and other public requirements are not being altered with this ordinance. STRs are the use of an existing dwelling within a residential or non-residential zoning district. All dwellings must demonstrate adequacy of services at the time of site- specific development review. The use of a residence as a STR does not materially change the essential use of the property, demand for services, or the physical characteristics of the residential use as it applies to this criterion. Therefore, any proposed STR has previously demonstrated compliance with public requirements. Additionally, billing for sewer or water consumption will follow standard practice and offset public expenses. The city shall also consider: E. Reasonable provision of adequate light and air. Yes, criterion is met. No changes within these amendments impact basic standards for setbacks, maximum building height, dedication of parks, on-site open spaces, or similar standards The City’s development standards and building code ensure adequate provisions of light and air through window and air circulation/venting provisions, as well as building setbacks. The maximum occupancy standards for each STR type remain within Sec. 38.360.260.I. 3 & 4 in order to limit excessive occupancy within a residence. Considering the code as a whole, the standards listed in this criterion are not being changed with these amendments. These amendments serve to support and reinforce the existing standards applicable to this criterion, therefore the standard continues to be met. F. The effect on motorized and non-motorized transportation systems. 373 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 10 of 15 Yes, criterion is met. No changes within these amendments impact basic standards for parking, sidewalks, dedication of right of way, provision of and construction of streets, or similar standards. Transportation impacts and parking compliance are addressed at the time of site-specific development review through an associated planning application and/or building permitting process. During the application process for a STR hosting permit, the number of provided off-street parking spaces available for guests’ use must be demonstrated. Considering the code as a whole, the standards listed in this criterion are not being changed with these amendments. These amendments serve to support and reinforce the existing standards applicable to this criterion, therefore the standard continues to be met. G. Promotion of compatible urban growth. Yes, criterion is met. An STR is a use of a previously approved dwelling. Any zoning district that allows homes has been reviewed and found to be consistent with this criterion. These amendments do not change any development standard which would relate to urban growth within the City nor impede on the expansion of the City through urban development practices. Existing standards have been adopted by the City to identify and avoid or mitigate demonstrable negative impacts of urban growth within the applicable subdivision review processes, site plan applications, and/or building permitting processes. Therefore, considering the code as a whole, the standards listed in this criterion are not being changed with these amendments and therefore the standard continues to be met. H. Character of the district. Yes, criterion is met. All zoning districts provide for a variety of principal and conditional uses which vary by intensity and likely size dependent upon the intention of the district. No single use defines the entirety of any zoning district. Residences, in some form, are a principal use within all residential zoning districts. Within commercial, mixed use, and industrial zoning districts, residential uses may be a principal, special or accessory use. Short term rentals (STRs) are a form of a residential use and were previously determined to be consistent with the overall character of each district at the time the adoption of Ordinance 1974. As the proposed “affirmative obligations” ordinance does not change where STRs are allowed, this criterion remains met. Structures that contain a STR must abide by the same physical standards for setbacks, building heights, lot coverage and others which apply in each zoning district. The inclusion of hosting platform obligations within Sec. 38.360.260.J adds reporting requirements for hosting platforms to provide STR information to the city and obligates hosting platforms to remove listings in violation per Sec. 38.360.260.J in addition to other enforcement provisions within Sec. 38.360.260.K previously mentioned within criterion C. These reporting and enforcement measures will enable better compliance with city requirements and will serve to support the maintenance of the character of each zoning district. The combination of uses and other characteristics remain intact and were previously found to be consistent with this 374 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 11 of 15 criterion. These amendments serve to support and reinforce the existing standards applicable to this criterion, therefore the standard continues to be met. I. Peculiar suitability for particular uses. Yes, criterion is met. Any zoning district that allows homes and STR has been reviewed and found to be consistent with the criterion. The proposed amendments do not change any zoning districts, boundaries, or uses within the land development regulations. STRs are the use of an existing dwelling within a residential or non-residential zoning district which have previously been found to be appropriate based on their location and conformance with existing standards. The authorized use tables which denote the types of STRs allowed within the City are not changing with this ordinance, and have been previously reviewed for consistency with the intent and purpose of individual districts and found to be appropriate. These proposed amendments revise the text only and not the zoning map. Placing affirmative obligations on STR hosting platforms will support compliance with all laws and should result in removal of listings of STRs that are not in compliance with laws. These measures will help the City better be able to monitor the compliance of active STRs and ensure the regulatory requirements are being met which were relied upon in finding zoning consistent with this criterion. Therefore, considering the code as a whole, the standards listed in this criterion are not being changed with these amendments and therefore the standard continues to be met. J. Conserving the value of buildings. Yes, criterion is met. The proposed amendments do not change any districts or uses which would cause buildings to become non-conforming to the district in which they are located. The hosting platform obligations for STRs do not alter the standards for building location, size, or other physical development standards. The existing standards for STRs offset or prevent the physical effects of their use. Adequate services such as parking and utilities must be provided prior to approval of a hosting permit. Considering the code as a whole, the standards listed in this criterion are not being changed with these amendments. These amendments serve to support and reinforce the existing standards applicable to this criterion, therefore the standard continues to be met. K. Encourage the most appropriate use of land throughout the jurisdictional area. Yes, criterion is met. The proposed amendments do not alter the allowed uses in zoning districts nor growth policy designations adopted in the Community Plan 2020. The zoning map and future land use map of the growth policy identify areas where specific uses, such as varying forms of residences, are generally appropriate. The use of a dwelling as a STR has been previously found to be an appropriate use and has similar impacts to other uses allowed in the zoning districts as denoted in Criterion H. The types of STRs allowed remain unchanged with this ordinance. As both the zoning map and future land use map do not authorize construction of residences, the existing site specific development processes serve to evaluate the appropriateness of a use 375 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 12 of 15 of land in this regard and ensure the use conforms to the necessary development standards. These standards will continue to be required, therefore, if a dwelling has not already been approved and deemed appropriate for an area, a STR will not be allowed under this ordinance. The proposed amendments do change the review process for a STR and includes additional obligations for hosting platforms which provide specific violation processes to help ensure that this criterion is met. PROTEST NOTICE FOR ZONING AMENDMENTS IN THE CASE OF WRITTEN PROTEST AGAINST SUCH CHANGES SIGNED BY THE OWNERS OF 25% OR MORE OF THE AREA OF THE LOTS WITHIN THE AMENDMENT AREA OR THOSE LOTS OR UNITS WITHIN 150 FEET FROM A LOT INCLUDED IN A PROPOSED CHANGE, THE AMENDMENT SHALL NOT BECOME EFFECTIVE EXCEPT BY THE FAVORABLE VOTE OF TWO-THIRDS OF THE PRESENT AND VOTING MEMBERS OF THE CITY COMMISSION. The City will accept written protests from property owners against the proposal described in this report until the close of the public hearing before the City Commission. Pursuant to 76-2-305, MCA, a protest may only be submitted by the owner(s) of real property within the area affected by the proposal or by owner(s) of real property that lie within 150 feet of an area affected by the proposal. The protest must be in writing and must be signed by all owners of the real property. In addition, a sufficient protest must: (i) contain a description of the action protested sufficient to identify the action against which the protest is lodged; and (ii) contain a statement of the protestor's qualifications (including listing all owners of the property and the physical address), to protest the action against which the protest is lodged, including ownership of property affected by the action. Signers are encouraged to print their names after their signatures. A person may in writing withdraw a previously filed protest at any time prior to final action by the City Commission. Protests must be delivered to the Bozeman City Clerk, 121 North Rouse Ave., PO Box 1230, Bozeman, MT 59771-1230. As of the writing of this report, no written protest against the changes have been received. APPENDIX A - DETAILED BACKGROUND AND PROJECT DESCRIPTION The City Commission spent considerable time on the regulation of STRs in 2016 and 2017 culminating in the adoption of Ordinance 1974 (creating the current standards for STRs found in the Bozeman Municipal Code in Sec. 38.360.260). The City Commission received a memo from the Economic Development Department prior to the Short Term Rental Work Session on August 9, 2022 which has a detailed background of the history of the Commission’s discussion and direction on STRs, the regulatory structure of the City’s 376 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 13 of 15 existing STR policies, and any previous public outreach and research conducted. This work session was held with the Commission to discuss short term rentals and their influence on the local housing market and affordability. During this discussion, staff presented several policy options for consideration by the City Commission. This included policies regarding enhancing STR compliance, analyzing the cost of services for administration of the STR program, further researching potential impacts on limiting STRs by zoning districts or types, and other regulatory methods. The City Commission supported improving compliance of STRs with existing regulations by placing more of the burden for compliance on the STR hosting platforms. Placing affirmative obligations on STR hosting platforms, like Airbnb and VRBO, require compliance with all laws, remove listings of STRs that are not in compliance with laws, include the City permit number and the permit for all STR listings, and provide a quarterly report to the City about STRs listed on their platforms within City limits. These measures will help the City better be able to monitor the compliance of active STRs and ensure the regulatory requirements are being met. Based on this discussion, the City Commission directed staff to draft an Ordinance regulating short term rental online booking platforms as one measure to increase compliance with existing regulations. Since this direction was given, Staff has conducted additional research in evaluating how imposing affirmative obligations on hosting platforms has been implemented and functions in other communities, other hosting platform responsibilities, and recommendations for the City Commission to consider which is detailed in Attachment 2. This memorandum provides four key recommendations that the City should pursue which have been incorporated into Ordinance 2131. In addition to the City Commission’s direction to draft this Ordinance, staff was also directed to engage with STR owners about potential interest to convert STRs into long term rentals (LTRs) in order to gather feedback on motivations, incentives, and barriers to converting STRs to LTRs. This focus group was held on January 18, 2023 between city staff from Communications, Legal, Planning Division, and Community Housing Program and 13 STR owners. Further details on these discussions are provided in Attachment 3. One of the main concerns denoted within these discussions focused on the lack of enforcement and compliance with existing STR regulations. With these priorities and discussions in consideration, Ordinance 2131 revises the STR regulations within Sec. 38.360.260 to include obligations for hosting platforms and administrative changes to improve compliance and enforcement as discussed below: Enforcement • Inclusion of Sec. 38.360.030.J. Hosting Platform Obligations o Quarterly reporting requirements of hosting platforms to the City of Bozeman  Reports to include; addresses of STRs that have conducted a booking transaction, the name of the owner or responsible person associated 377 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 14 of 15 with said booking transaction, length of stay for said booking transaction, and price paid for said booking transaction o Requirement of the city STR permit number prior to booking transaction. o Duty to remove STR listings which are in violation of these provisions and others within the Bozeman Municipal Code • Inclusion of Additional Violation Opportunities o Addition of City’s ability to impose administrative remedies and civil action proceedings o Addition of civil penalties to be recovered on a violation by an owner or hosting platforms Hosting Permit • Language change from STR Registration to STR Hosting Permit • Changes to Safety Inspections o Inclusion of fire inspections every three years after initial for an active STR o Self-certification on an annual basis • Removal of noticing requirements for Type 2 STRs • Removal of City requirement to maintain an online listing of all STR Hosting Permits • Clarification on renewal process, termination of use, and requirement for new hosting permit if lapsed Administrative Changes • Residences receiving affordable housing incentives and under affordability covenants may not be used as a STR • Inclusion of application to include all hosting platforms in which the STR will be listed • Addition of ability of the City to issue administrative subpoenas if necessary to obtain information regarding a STR or booking transaction Definitions • Inclusion of booking transaction definition • Expansion on hosting platform definition • Inclusion of evidence to be provided for owner occupancy • Removal of furnishing characteristic related to transient occupancy APPENDIX B - NOTICING AND PUBLIC COMMENT Notice for text amendments must meet the standards of 38.220.410 & 420. Notice was published in the Bozeman Daily Chronicle on 5/20/2023, 6/03/2023, and 6/17/2023. These notices contain all required elements. Notice was provided at least 15 days before the public hearing conducted by the Community Development Board in their capacity as the Zoning Commission, and not more than 45 days prior to the City Commission public hearing. Hearing dates are on the first page of this report. 378 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 15 of 15 One written public comment and three oral public comments ha been received so far on this Ordinance. Comments are available through the Laserfiche archive and the video recording of the CDB meeting starting at 54:23. Comments regarding this amendment include: 1. Concerns regarding previous title of item on agenda being misleading. 2. Concerns regarding the safety inspection requirement every three years by the Fire Department. (See additional information on page 8). 3. Concerns regarding data collection and reporting requirements of Ordinance 2131. 4. Concerns regarding public engagement with STR hosts for drafting Ordinance 2131. APPENDIX C - APPLICANT INFORMATION AND REVIEWING STAFF Applicant: City of Bozeman, PO Box 1230, Bozeman, MT 59771 Representative: Department of Community Development, City of Bozeman, PO Box 1230, Bozeman, MT 59771 Report By: Nakeisha Lyon, Associate Planner FISCAL EFFECTS None at this time related to this Amendment. ATTACHMENTS The full application and file of record can be viewed at the Community Development Department at 20 E. Olive Street, Bozeman, MT 59715. Attachment 1: Draft Ordinance 2131 Attachment 2: STR Affirmative Obligations Memo - January 3, 2023 Attachment 3: Short Term Rental Focus Group Summary - February 7, 2023 379 Ord 2131 Page 1 of 13 ORDINANCE 2131 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA TO GENERALLY REVISE BOZEMAN MUNICIPAL CODE SECTION 38.360.260 – SHORT TERM RENTALS TO INCLUDE REGULATION OF HOSTING PLATFORMS THAT FACILITATE BOOKING TRANSACTIONS OF SHORT TERM RENTALS AND REVISE ADMINISTRATIVE PROVISIONS WHEREAS, the City of Bozeman (the “City”) has adopted land development and use standards to protect public health, safety and welfare and otherwise execute the purposes of Montana Code Annotated §§ 76-1-102, 76-2-304, 76-3-102, and 76-3-501; and WHEREAS, pursuant to the Bozeman City Charter, the City of Bozeman has adopted and is hereby relying upon its self-government powers recognizing pursuant to Montana law such self-government powers must be liberally construed in favor of such power; and WHEREAS, after proper notice, the Community Development Board in their capacity as Bozeman Zoning Commission held a public hearing on June 5, 2023 to receive and review all written and oral testimony on the proposed amendments; and WHEREAS, the Community Development Board acting in their capacity as the Bozeman Zoning Commission recommended to the Bozeman City Commission that Ordinance 2131, be approved as proposed; and WHEREAS, after proper notice, the City Commission held its public hearing on June 27, 2023 to receive and review all written and oral testimony on the proposed amendment to the subdivision regulations; and WHEREAS, the City Commission has reviewed and considered the applicable amendment criteria established in Montana Code Annotated § 76-2-304, and found that the proposed amendments are in compliance with the criteria. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: 380 Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals) Page 2 of 13 Section 1 Legislative Findings The City Commission hereby makes the following findings in support of adoption of this Ordinance: 1. The Montana Constitution, in Article XI, § 4 mandates to liberally construe the powers of incorporated cities, and Article XI, § 6 of the Montana Constitution expressly authorizes a local government with self-government powers to exercise any power not prohibited by the constitution, law, or charter. 2. The City has adopted land development and use standards to protect public health, safety and welfare and otherwise execute the purposes of Montana Code Annotated §§ 76-1-102, 76-2-304, 76-3-102, and 76-3-501. 3. The City adopted Ordinance 1974 in November 2017 placing restrictions on short-term rentals. The City is aware that a significant portion of short-term rentals within the City are not currently in compliance with adopted regulations. Requiring information from hosting platforms is demonstrated by other communities to enhance compliance and the City Commission finds doing so is reasonably related to assuring compliance with the City of Bozeman’s short term rental regulations. 4. The City Commission approved The Bozeman Community Housing Action Plan on November 18, 2019, which was amended on January 13, 2020. The Action Plan recommends on-going evaluation of regulatory policies including: prohibiting or limiting the use of homes for short-term rentals in specified neighborhoods or zones; placing resident-occupancy requirements on units that are rented short-term (e.g. rent bedroom only, ADU and primary home cannot both be an STR, etc); requiring an owner to register the short-term rental and authorizing the city to charge fees; or other options. 5. On August 9, 2022, the Bozeman City Commission held a work session to discuss short term rentals and their influence on the local housing market and affordability. The City Commission directed staff to draft an Ordinance regulating short term rental online booking platforms as one measure to increase compliance with existing regulations, to require regular reporting to obtain more information about short term rentals in Bozeman. 6. City staff prepared a report analyzing the required criteria for an amendment to the City’s regulations for zoning review, including the amendment’s accordance with the BCP 2020, and found that the required criteria of Montana Code Annotated § 76-1-304 are satisfied. 381 Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals) Page 3 of 13 7. The City Commission determines that the ordinance provides a proper balance of interests, rights, and responsibilities of all parties affected by the ordinance. Section 2 That Section 38.360.260 of the Bozeman Municipal Code be amended as follows: Sec. 38.360.260. Short term rentals. A. Purpose and intent. The purpose of this article section is to provide for the regulation of short term rentals in certain zoning districts within the city in order to preserve neighborhood character and promote a supply of long term rental housing stock, while encouraging economic activity and diversity, and to promote public health, safety, and welfare. B. Applicability. 1. The provisions of this article section apply only to transient occupancy of a short term rentals as defined herein. 2. This article section does not apply to any rental of a dwelling unit which is governed and defined by The Montana Residential Landlord and Tenant Act of 1977 (Landlord Tenant Act). This article applies only to transient occupancy of a short term rental as defined herein. 3. A lower-priced or moderate-priced home subject to and defined by chapter 38, article 380, or a dwelling that received financial support from the city, including but not limited to down payment assistance, impact fee payment, or other consideration including affordable units developed using regulatory incentives, infrastructure prioritization or assistance or a financial subsidy, may not be used as a short term rental until such time as either the lien instrument against the property in favor of the city securing the amount of such subsidy has been released and the release recorded with the Gallatin County Clerk and Recorder's Office or the expiration of an applicable affordability covenant. The prohibition on use as a short term rental under this subsection will continue until the later of a lien release or expiration of an affordability covenant. C. Definitions. For purposes of this article, the following definitions apply: 1. Booking transaction means any reservation or payment service provided by a hosting platform that facilitates a short term rental transaction between an owner and a transient occupant. 12. Hosting platform means a person or entity that provides a means through which an owner may advertise and offer for rent a short term rental to the general public. participates in the short term rental business by collecting or receiving a fee directly or indirectly for any booking transaction through which an owner may offer a dwelling unit or portion thereof for transient occupancy. Hosting platform includes but is not 382 Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals) Page 4 of 13 limited to an online service and an individual using any other means to collect or receive a fee on behalf of an owner for a transient occupancy of a short term rental. 23. Owner includes any part owner, joint owner, tenant in common, joint tenant, tenant by the entirety, or lessee with exclusive possession under a valid long-term lease or rental agreement. 34. Owner-occupied means the owner provides the city evidence the owner occupies the dwelling as his or her principal residence for more than 50 percent of the calendar year. 45. Operate, oOperation of, or operating a short term rental means the short term rental has been rented by or on behalf of the owner to the general public for compensation for transient occupancy. “Operate” "oOperation of" or "operating" a short term rental does not include mere advertisement of or offering to rent short term rental(s). 56. Responsible person means the person responsible for addressing all maintenance, nuisance, and safety concerns related to a short term rental. 67. Short term rental is defined in article 7 of this chapter. 78. Transient occupancy of a short term rental means occupancy which has the following characteristics: a. The period of occupancy is less than 28 consecutive days, and b. The renter has a principal residence other than the short term rental., and c. The short term rental is furnished with personal property necessary to make the unit ready for immediate occupancy by the renter. D. Short term rental classifications. Short terms rentals are classified as: 1. Type-1: A short term rental of one or more bedrooms in an owner-occupied dwelling while the owner is occupying the same dwelling unit for the entire rental period. 2. Type-2: a. A short term rental of an owner-occupied dwelling if the owner is not occupying the dwelling during the entire rental period. b. A short term rental of a permitted accessory dwelling unit (ADU) whether or not the ADU's owner is present in the primary dwelling unit during the rental period. c. A short term rental of one dwelling unit within a duplex whether or not the duplex's owner is present in the duplex's other dwelling unit during the rental period. 3. Type-3: A short term rental that is not owner-occupied. E. Where allowed. An owner may operate a short term rental in all zoning districts where such use is authorized in Chapter 38, articles 8-11 and 14 subject to the requirements of this article chapter. F. Compliance with laws. 383 Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals) Page 5 of 13 1. In addition to the provisions of this article chapter, the short term rental owner must comply with all other applicable local, state and federal laws, including but not limited to city parking regulations, including time limitations and ADA parking restrictions; lodging facility use tax and accommodations sales tax regulations; health department permitting requirements; the Americans with Disabilities Act; fair housing laws; building codes and fire codes, and the non-discrimination provisions in chapter 24, article 10. Loss of any required permit or license will result in revocation of the short term rental registration in accordance with subsection J of this section. 2. Compliance with all applicable laws and regulations is the sole responsibility of the owner. and cCity approval of an application for short term rental registration in no way waives or transfers to the city such responsibility. In addition, the owner is solely responsible for verifying the use of a property as a short term rental is compatible with insurance and mortgage contracts, home owners' association covenants, rental agreements and any other contracts which govern the use of the property. G. Administration. The director will collect all registration permit fees and will issue registrations permits and renewals thereof in the name of the city to all persons qualified under the provisions of this article chapter and has the power to: 1. Make rules. The director will promulgate and enforce all reasonable rules and regulations necessary to the operation and enforcement of this article section. All rules are subject to city commission review and modification. 2. Adopt forms. The director will adopt all forms and prescribe the information to be given therein. 3. Obtain approvals. The director will submit all applications to interested city officials for their approval as to compliance by the applicant with all city regulations which they have the duty of enforcing. 4. Investigate. The director will investigate and determine the eligibility of any applicant for a short term rental registration permit as prescribed herein. 5. Examine records. The director may examine the books and records of any applicant when reasonably necessary to the administration and enforcement of this article section. The city may issue administrative subpoenas as necessary to obtain information regarding a short term rental or booking transaction. 6. Give notice. The director shall notify any applicant of the acceptance or rejection of the application and will, upon the director's refusal of any registration, permit and at the applicant's request, state in writing the reasons for the denial therefor and deliver it them to the applicant. 7. Record keeping. The director will maintain at all times a record of registered permitted short term rentals, including the full name of each registrant permittee, the address at which such short term rental is operated, the date of issuance, the fee paid therefor, the telephone and address of the applicant, and the time such registration permit will continue in force effect. 384 Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals) Page 6 of 13 H. Registration Hosting Permits. The following requirements apply to all short term rentals registrations permits unless otherwise noted. 1. General. It is unlawful for any person to operate within the city a short term rental without having first obtained approval for a registered the short term rental permit with the department of community development. A separate permit registration shall be required for each short term rental. Approval of a short term rental application results in the city issuing a permit for the short term rental. 2. Application; submittal materials. The applicant must complete and submit an application for a short term rental registration permit to the department of community development using a form provided by the city. The form will include an acknowledgement and agreement the short term rental meets and will continue to meet the definition of short term rental classification (Type-1, Type-2, or Type-3) during the registration permit term. Before the application will be accepted by the director, the applicant must provide: a. The name, telephone number, address, and email address of all property owners and of the responsible person, if different. If the property owner is a business, the name(s) and contact information of all business owners must be provided. b. The Montana Department of Revenue tax registration number for the short term rental. c. A sketch plan with a description of the short term rental, including street address, number of bedrooms, and number of off-street parking spaces available for guests' use. d. Certification the short term rental meets and will continue to meet the definition of short term rental classification (Type-1, Type-2, or Type-3) during the registration term. e. For Type-2 and Type-3 short term rentals, certification the applicant has read and understood the standards in subsection I of this section and the property applied for meets the standards. f. For Type-2 short term rentals in residential zoning districts, certification that residents adjacent to the proposed short term rental have been provided written notice in accordance with subsection 6 of this subsection. g. All hosting platforms on which the short term rental is listed. hg. The registration permit fee and fire inspection fee. 3. Safety inspections. a. Initial inspection. Prior to issuance of the first short term rental registration permit for any property, an inspection by the city fire department must be completed and signed off by a city fire inspector, or by an NFPA or ICC-certified fire inspector using an inspection form approved by the city fire marshal. A fire inspection checklist form will be provided to the applicant with the application materials. If a short term rental registration permit lapses for any period of time, upon 385 Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals) Page 7 of 13 reapplication for registration a permit an inspection must be completed and signed off as described in this subsection before the short term rental registration permit will be issued. b. Re-inspection. If re-inspection or multiple visits by a fire inspector are required before the inspection form may be signed, an additional inspection fees will apply for each inspection after the initial inspection. c. Subsequent inspections; self-certification. A short term rental must be inspected by the city fire department every three years. The applicant must self-certify continued compliance with each item on a fire inspection checklist upon annual renewal of a permit for each year that an inspection is not required. The city fire marshal may require a repeat inspection on a periodic basis, and at any time upon complaint or evidence of noncompliance. Applications for annual renewal of registration will include a self-certification by the applicant that they continue to comply with the fire inspection checklist. By applying for renewal of registration, the applicant will acknowledge and agree that the city may randomly select a certain percentage, not to exceed ten percent, of the renewal applications for a full inspection as described in subsection (a). If selected, the registration renewal will be conditioned on completion of the fire inspection and payment of the fire inspection fee. The owner of a short term rental selected for a full inspection will be allowed to continue to operate the short term rental pending completion of the inspection, provided all other renewal requirements have been met. 4. Safety hazards. The short term rental owner acknowledges that the city, or any authorized representative thereof, have the right to suspend operation of any short term rental when the city determines the rental is causing or contributing to an imminent public health or safety hazard. 5. Fees. Short term rental registration permit and inspection fees shall be established by resolution of the city commission. 6. Additional notice requirements for registrations permit and registration permit renewals of Type-2 short term rentals in residential zoning districts. The applicant for a Type-2 short term rental registration permit in a residential zoning district included in section 38.310.030 must give notice on a form provided by the city to each residence adjacent, including those residences adjacent across a public right-of-way and properties connected to the applicant's property by property corners. The notice must include a description of the proposed use and the name, address, telephone number and email address (if any) of the responsible person. 67. Issuance of registration permit. Once the applicant submits the completed application form, all required submittal materials, and registration and inspection fees, the director will review the application form and submittal materials and determine whether the short term rental meets all city requirements for registration permit. The city will director may issue the short term rental registration permit when: a. The director determines the short term rental meets all city requirements for registration a permit; and 386 Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals) Page 8 of 13 b. The applicant has provided either a signed pre-operational inspection report from the health department indicating the short term rental may operate as a public accommodation or a valid and current public accommodation license issued by the state of Montana department of health and human services pursuant to Title 50, Chapter 51, MCA. 8. Listing of registration. The short term rental registration form will require the applicant to agree to inclusion in an online listing of short term rentals registered with the city. 79. Display of short term rental registration number. The owner must include the short term rental registration permit number issued by the city in all listings and advertisements, of the owner’s short term rental on any hosting platform and print advertising. 810. Change in ownership. A short term rental registration permit does not run with the land, and a change in ownership of the short term rental terminates the registration permit. The new owner wishing to continue operation of the property as a short term rental must apply for registration a new permit following the process described in this section. 911. Expiration. Registrations Permits issued pursuant to this article section are valid for one year from the month in which such registration permit is issued and will expire automatically unless renewed in accordance with this section. 102. Renewal. The registrant may apply to renew the registration permit annually using a form provided by the city. Renewals must comply with the requirements of this code which are in place at the time of renewal. Failure of an applicant to renew a permit results in the termination of the lawful use of a property as a short term rental. It is the registrant's permitee’s responsibility to renew the registration permit on time even if a courtesy reminder is not received by the registrant. prior to the expiration of the permit. Failure of an applicant to renew a short term rental permit prior to the expiration of the current permit period requires the applicant to file a new permit application for a short term rental and is subject to the initial inspection and fee. I. Short term rental standards. The following requirements apply only to Type-2 and Type-3 short term rentals unless otherwise noted. 1. Short term rental agreement; written rules for guests. The short term rental owner must enter into a written rental agreement with the guest for each stay in the short term rental. a. The guest must be provided with a written list of rules applicable to the short term rental with the rental agreement, and the rental agreement must include a written acknowledgement by the renters of their agreement to comply with such rules. b. The list of rules must include those rules required by this article section to be included. c. The list of rules must be prominently displayed within the short term rental. 387 Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals) Page 9 of 13 2. Responsible person. The applicant short term rental owner must designate a person responsible for addressing all maintenance, nuisance, and safety concerns related to a short term rental. The responsible person must be available to take and respond to reports of concerns and complaints 24 hours per day, 7 days per week during the registration term. The name and contact information for the responsible person must be included in the list of rules. 3. Maximum occupancy for Type-2 and Type-3 short term rentals. The maximum occupancy of a Type-2 or Type-3 short term rental is two persons per bedroom plus two additional persons, except that this number may be reduced by the city based on available parking spaces. The maximum occupancy will be noted on the short term rental registration and must be included in the list of short term rental rules. 4. Maximum number of bedrooms that may be rented in a Type-1 short term rental; maximum occupancy. The owner of a Type-1 short term rental may rent or offer for rent up to two bedrooms in the dwelling, except that in a two-bedroom dwelling, only one bedroom may be rented or offered for rent. No other area of the dwelling may be rented or offered for rent. The maximum occupancy of a Type-1 short term rental is two persons per bedroom. 5. Trash removal. The responsible person must ensure proper disposal of solid waste pursuant to local and state rules, regulations and laws. The schedule for trash and recycling collection and instructions for proper disposal must be included within the short term rental rules. 6. Signage. Exterior signs identifying the unit as a short term rental are prohibited on short term rentals. During a rental period, there must be a sign posted inside the front door of the short term rental showing the locations of all fire extinguishers in the unit, the gas shut-off valve, and fire exits. 7. Noise and nuisance. a. The owner of the short term rental must ensure that use of the short term rental by guests is in compliance with the noise provisions of chapter 16, article 6 and all nuisance provisions of the Bozeman Municipal Code. b. A prohibition against making loud noise in such a manner as to disturb the quiet, comfort or repose of a reasonable person of normal sensitivity must be included in the short term rental rules. c. All outdoor activities producing noise discernible from a neighboring property shall cease by 10:00 p.m. This requirement must be included in the short term rental rules. J. Hosting Platforms Obligations 1. Compliance with laws. In addition to the provisions of this section, a hosting platform must comply with all other applicable local, state and federal laws. 2. Reporting requirements. A hosting platform must provide a report to the city on a quarterly basis that includes, but is not limited to the following: 388 Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals) Page 10 of 13 a. The address of each short term rental located in the city for which it conducts a booking transaction; b. The name of any owner or responsible person for each transient occupancy for which the hosting platform conducted a booking transaction; c. The length of stay for each transient occupancy for which the hosting platform conducted a booking transaction; and d. The price paid for each booking transaction. 3. Required information for booking transaction. A hosting platform must include the city permit number and the permit in all hosting platforms’ publicly available listings prior to performing a booking transaction for each short term rental within the city. 4. Obligation to remove listings. If the hosting platform has reason to believe a short term rental is in violation of any provision of this code, including but not limited to notice from the city of a violation or an owner’s failure to supply to the hosting platform the city permit number or the permit for the short term rental, the hosting platform must remove the listing from its hosting platform within five business days. JK. Violations; enforcement. 1. Registration suspension or revocation. The director may suspend or revoke a short term rental registration permit, impose administrative remedies as provided herein, or enforce a suspension or revocation through a civil action when the registrant permittee commits one or more of the following acts or omissions: a. Failure to comply with any provision of this article code; b. Operating or allowing the operation of the short term rental in such a manner as to create a public nuisance, cause a breach of the peace, constitute a danger to the public health, safety, welfare or morals, or interfere with the rights of abutting property owners; c. Cancellation of the health department's public accommodation license, tax authority registration, or any other required permit; or d. The securing of the registration permit by fraud or misrepresentation, to specifically include including but not limited to supplying false or incorrect information on the registration permit application. 2. Procedure. Should the director decide to suspend or revoke a registration permit, the registrant permittee will be given notice and an opportunity to respond following the procedures in this subsection, except that should the director determine the short term rental or its operation present a safety hazard or require immediate remedy, the director may order operation of the short term rental to cease immediately. a. The registrant will be notified in writing by the director at least seven days prior to the action contemplated and the reasons therefore. 389 Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals) Page 11 of 13 b. Upon receipt of the notice, the registrant may request a meeting with the director. Such request must be in writing and must be received by the director within seven days of the registrant's receipt of the notice. Failure on the part of the registrant to request in writing a meeting and within the specified time period shall be a waiver of the registrant's right to a meeting. c. If a meeting is requested by the registrant, the director will set a time, date and place and will so notify the registrant, in writing. d. When a meeting is conducted, the city will present the evidence supporting the contemplated action. The director may request evidence be presented by other parties. The registrant may present evidence. The director will take all evidence admitted under advisement and once a decision has been made the director will notify the registrant of the findings and decision in writing. 3. Civil Penalty. The director may recover the following civil penalties for any violation of this section. Each day a violation continues constitutes a separate violation. a. For any violation by an owner, the director may recover a civil penalty of not more than $500.00. b. For any violation by a hosting platform, the director may recover a civil penalty of not more than $500.00. 34. Appeal. Any person An aggrieved person by a decision of the director will have the right may file an application to appeal the matter to the city commission according to by following the procedures in section 38.250.030. 45. Unpaid fee constitutes debt. The amount of any unpaid fee, the payment of which is required hereunder, constitutes a debt due the city. 56. Violation constitutes a misdemeanor. In addition to suspension or revocation under subsection A of this section, or the imposition of a civil penalty as provided herein, a knowing violation of this article constitutes a misdemeanor punishable as described in section 38.200.160 except a person may not be imprisoned for a violation of this section. Section 3 Repealer. All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force and effect. Section 4 Savings Provision. 390 Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals) Page 12 of 13 This ordinance does not affect the rights and duties that matured, penalties that were incurred or proceedings that were begun before the effective date of this ordinance. All other provisions of the Bozeman Municipal Code not amended by this Ordinance shall remain in full force and effect. Section 5 Severability. That should any sentence, paragraph, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this ordinance as a whole, or any part or provision thereof, other than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman Municipal Code as a whole. Section 6 Codification. This Ordinance shall be codified as indicated in Section 2. Section 7 Effective Date. This ordinance shall be in full force and effect thirty (30) days after final adoption. PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on the _____ day of ________________, 20__. ____________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ____________________________________ MIKE MAAS City Clerk 391 Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals) Page 13 of 13 FINALLY PASSED, ADOPTED AND APPROVED by the City Commission of the City of Bozeman, Montana on second reading at a regular session thereof held on the ___ of ____________________, 20__. The effective date of this ordinance is __________, __, 20__. _________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: _______________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 392 1 Memorandum REPORT TO: Jeff Mihelich, City Manager FROM: Nakeisha Lyon, Planner II Renata Munfrada, Community Housing Program Coordinator SUBJECT: Affirmative Obligations for Short Term Rental Booking Platforms DATE: January 3, 2023 Background The evolution of the short-term rental landscape is persistent and city planners need to prepare a strategy that allows communities to safely accommodate visitors and reap the rewards of this growth. Because short-term rentals help meet a need for diverse income streams both now and in the future, communities have a tremendous amount of tax, permit, and license revenue at stake through proper compliance programs. To implement any type of effective short-term rental regulation, local governments must expect to invest some level of staff time and resources in compliance monitoring and enforcement. Local governments may also adopt fine structures that adequately incentivize short-term hosts and booking platforms to comply with the adopted regulations. Ideally, the fines should be proportionate to the economic gains that potential violators can realize from breaking the rules, and fines should be increased for repeat violators. Booking Platforms Booking platforms are businesses that provide online accommodation booking services for short-term rental accommodations. Companies like Airbnb operate like an online marketplace to list, explore, and book both short-term and long-term housing accommodations. Its platform connects hosts and guests, facilitates communication with one another to reserve and book short or long-term rental accommodations, and provides payment processing services at the time of booking. A booking agency participates in the short-term rental business by providing, and collecting a fee for booking services through which an owner may offer a dwelling unit for rent. Hosting platforms provide booking services through an online platform that allows an owner to advertise the dwelling unit through a website. Airbnb charges no fees when a host lists a property on the platform, nor does it own or operate any of the properties. Rather, it makes money by collecting a services fee from both the guest and the host, determined as a percentage of the accommodation fee set solely by the host, which compensates Airbnb for its publishing, listing, and booking services. The fee is collected instantaneously at the time of booking. 393 2 Platform Compliance Communities typically enforce their short-term rental obligations in accordance with a generally applicable enforcement provision contained in the code of ordinances or zoning ordinance, or through a specific enforcement provision incorporated into the short-term rental regulations. Violation of the short- term rental ordinance is subject to the same penalties and procedures as a violation of any other provision in the zoning code, which can include fines or a stop order. One unique policy option that has seen success in other communities is to improve compliance with existing regulations by placing more of the burden for compliance on the short-term rental booking platforms. Municipalities could require booking platforms like Airbnb, HomeAway, and Vrbo to verify that any home offered for short-term rental is lawfully registered with the City before the platform may provide, or collect a booking fee for booking service of the unit. In this way, the City will be better able to monitor the compliance of active short-term rentals and ensure the regulatory requirements are being met. The platform may also be required to submit a monthly report, or affidavit of compliance, to the City affirming that they have exercised reasonable care to verify that hosts utilizing the service are lawfully registered. Establishing platform liability gives local governments the ability to enforce and enact rules and ordinances that penalize platforms that do not comply with regulations. Placing affirmative obligations on booking platforms strengthens enforcement mechanisms and helps ensure that short-term rental operators are in compliance with local regulations. Affirmative Obligations An affirmative duty is a legal obligation that requires some effort, or reasonable care, to satisfy. According to the American Law Register, “to constitute actionable negligence there must concur three essential elements – a duty of care, a breach of that duty by negligent act or omission, and injury naturally resulting therefrom.” Failure to exercise reasonable care results in negligence. This is the original conception of a duty to take precaution to insure inevitable legal incidents are avoided. A duty to prevent illegal activity arises when nonfeasance can be avoided by taking affirmative precautions. These onerous positive duties usually deal with the obligations of the owners, possessors, and users of real and personal property, and those carrying on business. In the context of short-term rental booking activity, the booking agency is not a stranger to the transaction – collecting a booking fee for booking service – and is rather a participant. Therefore, the agency may reasonably be required to bear the burden along with the benefit. In line with the concepts of duty of care and negligence, local policy makers have begun placing affirmative duties – or requirements to confirm the legality of the rental listing – on booking platforms directly. Models for Implementing Affirmative Obligations In order to strengthen enforcement of short-term rental regulations, many major cities like Santa Monica, San Francisco, Boston, Denver, and Honolulu have implemented affirmative obligations on booking agencies like Airbnb. These cities have started citing booking platforms as accomplices to unlawful renting activity – agencies that allow hosts to book unregistered short-term rental units are participants in each 394 3 illegal transaction. Imposing onerous affirmative duties on these agencies effectively prevents illegal transactions and boosts compliance. Santa Monica, California After maintaining a multi-decade prohibition against short-term rentals in residential districts, in 2015, the City eased this prohibition by authorizing a form of short-term rentals known as home-sharing, which permits City residents who obtain a City license to host visitors for compensation for a period of less than 31 days, as long as the resident and visitor are both present in the home. Un-hosted short-term rentals of residential housing, known as vacation rentals, remain unlawful in Santa Monica. This legislation struck an important balance by enabling current and prospective residents to supplement income through home-sharing, while ensuring that Santa Monica’s housing units would not be surreptitiously or openly converted into de facto hotels. One of the chief issues facing local governments as they contend with regulation of short-term rental marketplaces is the trouble of enforcing whatever framework they develop. In 2015 the Santa Monica City Council adopted the Home-Sharing Ordinance thereby amending and revising Chapter 6.20 of the Santa Monica Municipal Code to strengthen regulation of home-sharing and vacation rentals. In 2019 amendments to the ordinance containing listing and advertising requirements were adopted. The ordinance imposes four obligations on short-term rental booking platforms: 1) collecting and remitting applicable taxes; 2) regularly disclosing listings and booking information to the City; 3) refraining from booking properties that are not licensed and listed on the City’s registry; and 4) refraining from collecting a fee for ancillary services. The administrative fine amounts for advertising, facilitating or operating a vacation rental start at $1000 per day, per violation, and increases if the violations continue. There may be other associated penalties and costs in addition to administrative fines, including the cost of investigation. Failure to comply with administrative citations may lead to referral to the City Attorney’s Office for prosecution or other legal options. HomeAway & Airbnb v. Santa Monica The ordinance effectively prevents and penalizes online booking platforms for unlawfully booking short- term vacation rentals of unlicensed properties. Airbnb and HomeAway argued that the City’s ordinance ran afoul of the Communications Decency Act (CDA) and the First Amendment because it required the platforms to monitor the content of third-party listings on their sites and remove listings for unlicensed properties. In 2019 the Ninth Circuit Court of Appeals (Montana is in the Ninth Circuit) reaffirmed its rejection of Airbnb and HomeAway’s challenge to the City of Santa Monica’s Home-Sharing Ordinance. The court found that the ordinance only prohibits processing transactions for unregistered properties and does not proscribe, mandate, or even discuss the content of the listings that the platforms display on their websites. The regulation only requires that the booking transactions include licensed properties. The City’s Home-Sharing Ordinance thus stands absent a petition by the platforms to the United States Supreme Court. City of San Francisco, California From 1986 to 2014, San Francisco banned short-term rentals, concerned that they would significantly reduce the city’s affordable housing stock. In 2015, the city repealed this ban and imposed certain 395 4 conditions on short-term rentals by permanent residents. In 2016, the city passed the Residential Unit Conversion Ordinance, amending Chapter 41A of the Administrative Code to require hosting platforms to verify a residential unit is on the City registry prior to accepting a fee for booking service. The ordinance effectively makes it a misdemeanor to collect a fee for providing booking services for the rental of a unit not registered with the city. The misdemeanor is punishable by a fine of up to $1000 per day, per listing and potentially carries criminal penalties. San Francisco was the first city to introduce rules that prohibited Airbnb from booking illegal listings. The ordinance was adopted to help enforce compliance with the registration requirement by ensuring that hosting platforms do business with law-abiding hosts. Because the ordinance was not motivated by a desire to suppress speech, the conduct at issue is not expression, and the ordinance does not have the effect of targeting expressive activity. The ordinance regulates hosting platforms that provide booking services for short-term rentals; including a framework for Airbnb and HomeAway to take reasonable care to verify listings are lawfully registered before offering booking services. The ordinance stipulates that a hosting platform may provide, and collect a fee for, booking services in connection with short-term rentals only when those residential units are lawfully registered on the City’s registry at the time the unit is rented. Airbnb lost about 4,000 listings after the regulation took effect. The platform compliance provision of the ordinance requires the hosting platform to submit a monthly affidavit to the Office of Short Term Rentals (OSTR) affirming that they have exercised reasonable care to verify that hosts utilizing their service are lawfully registered. The ordinance defines a booking service as any reservation or payment service provided by an entity that facilitates a short-term rental transaction and collects a fee in connection with the reservation. Another provision pertaining to monitoring hosting platforms gives the OSTR the power to issue and serve administrative subpoenas as necessary to determine whether owners, business entities, and hosting platforms have complied with the administrative code. Airbnb v. San Francisco Airbnb filed for a preliminary injunction against the ordinance, arguing that it would essentially require the company to monitor and verify information provided by third-party hosts. The court once again held that the Communications Decency Act (CDA) was not applicable because the ordinance did not obligate Airbnb to perform the typical duties of a “publisher” such as monitoring, editing, withdrawing, or blocking content submitted by third-party hosts. Hosting platforms often perform two distinct functions. They post listings for rental units, and they provide booking services in connection with the rental of those units. The ordinance does not impose liability for housing platforms’ decisions about what to post or for the substance of listings contained on their websites. Compliance with the law would not require them to review or vet or remove any user content. To the contrary, a hosting platform can publish whatever listings it wants without violating the ordinance, and faces potential liability only if and when it steps outside its role as a publisher by providing specified booking services to an unregistered host in return for a fee. Providing payment and reservation services is not a publication function. 396 5 In sum, none of the arguments raised or cases cited by Airbnb and HomeAway enable them to avoid the binding Ninth Circuit precedent establishing that, because the ordinance does not seek to treat hosting platforms as publishers of third-party content, the CDA and the First Amendment simply do not apply here. This decision could make Airbnb susceptible to regulatory violations in pending litigation in other jurisdictions where Airbnb has made similar arguments to those that failed in this case. Another outcome of this decision is that Airbnb agreed to help San Francisco develop measures to verify the registration status of short-term rentals. Settlement Agreement In 2017, the City and County of San Francisco including the OSTR and Airbnb entered into a Settlement Agreement. While Airbnb continued to object to the ordinance, the company entered into the agreement because it provides a safe harbor for compliance under the ordinance and permits the creation of a Pass- Through Registration (PTR) system developed in cooperation with the City that facilitates the online registration of hosts from the Airbnb website. Airbnb also recognized the importance of being a constructive partner with the City and continuing to work with it on various policy issues relating to short-term rentals, including preventing short-term rentals from impacting the availability and cost of permanent housing for City residents. The PTR system sends host registration application information directly to the OSTR. Airbnb also processes renewals of OSTR registrations for hosts with existing registrations through its PTR system. Airbnb pre- populates a field on the host’s Airbnb listing with their registration number and expiration date. In addition, Airbnb reimbursed the City $40,000 in immediately available funds for the costs to build a system that facilitates pass-through registration from Airbnb. Airbnb also pays the City $5,000 annually to reimburse the City of its costs for maintaining and operating the system. City of Boston, Massachusetts In 2018, Boston enacted Docket #0764, an ordinance allowing short-term residential rentals in the City of Boston, amending Chapter 9-14 of the Boston Municipal Code. The ordinance includes required registration for those looking to rent out their property through platforms like Airbnb. In addition to punishing individual homeowners who disregard these rules, the ordinance fines intermediaries like Airbnb $300 per day for each ineligible rental booked on the site. According to the enforcement provision in the ordinance, the Commissioner shall enter into agreements with booking agents for assistance in enforcing the provisions of the law, including an agreement whereby the booking agent agrees to remove a listing from its platform that is deemed ineligible for use as a short- term rental, and must prohibit a host from listing any unit without a valid registration number from the City. Furthermore, any booking agent that fails to enter into such agreements to actively prevent, remove or de-list any ineligible listings shall be prohibited from conducting business in the City. In addition, the booking agent must provide to the City, on a monthly basis, an electronic report of the listings advertised by the booking agent within the City. 397 6 Airbnb v. Boston In 2018, Airbnb sued the City of Boston. Airbnb claimed that three sections of the ordinance – the Enforcement Provision, the Data Sharing Provision, and the Penalties Provision – are preempted by or violate the CDA, the First, Fourth, and Fourteenth Amendments. The First Circuit Court of Appeals denied Airbnb’s motion for a preliminary injunction pertaining to the provision requiring monthly reporting of publicly available information, and the penalties provision. However, the court approved the injunction for the enforcement provision of the ordinance. The court maintained that because the penalties provision is aimed at regulating Airbnb’s own conduct, and not at punishing it for content by a third party, the CDA does not preempt it. The record established that Airbnb plays multiple related but distinct roles in the online platform it has established. Airbnb acts as both a publisher of third-party rental listings, and as an agent that books rental agreements between users and hosts and collects and distributes payments when such a deal is made. The penalties provision threatens a fine only if Airbnb accepts a fee for booking an ineligible units. The court also maintained that Airbnb did not establish that it is likely to succeed in showing that a relatively modest fine – imposed not for something one of Airbnb’s hosts or users published online, but because of Airbnb’s independent act of collecting a fee after facilitating an illegal rental transaction – meaningfully implicates, let alone obstructs, Congress’s desire to allow website operators to engage in blocking and screening of third-party content, free from liability for such good faith efforts. To the extent that data reporting provision compels Airbnb to provide monthly lists limited to information appearing in its public listings for Boston rental properties, the Court found that Airbnb did not establish a likelihood that it will succeed with this challenge. Neither Airbnb nor its users can reasonably claim an expectation of privacy in information included in public listings. According to the 2020 report Airbnb provided to the City of Boston, implementation of the ordinance had a dramatic impact on short-term rental listings on the platform. Listing dropped from 3,775 in November 2018 to 2,593 in November 2019. With full implementation on December 1, 2019, the listings fell to 1,122 on December 4, 2019 – a 70% decline in listings from the year prior. City and County of Denver, Colorado The City and County of Denver initially passed legislation regarding short term rentals in 2016 and required a license in 2017. The jurisdiction from the beginning included a requirement of the short-term rental to be a primary residence of the hosts. A study in 2019 revealed that this has prevented several negative impacts of short-term rentals within the community. The ordinance has been revised throughout the years, most recently on November 23, 2020 in which the Denver City Council adopted Council Bill CB20-1229, which prohibits booking service providers from processing transactions for accommodations at properties not properly licensed as short-term rentals and imposing fines for infractions. Effective on February 1, 2021, this ordinance made it unlawful for a booking agency to receive payment from an unlicensed short-term rental located in the City and County of Denver with penalties starting at $1000 per violation per day. The assessment of affirmative obligation came from the Short Term Advisor Committee that sought out further compliance of short-term rentals within the City and County of Denver. The committee includes representatives for Airbnb. During the introduction and discussion of the ordinance, Airbnb pushed back 398 7 due to fears of profit loss. Airbnb attempted to reach an agreement or memorandum of understanding with Denver which would denote that the company would attempt to do their best to verify compliance with the municipality. However, Denver refused to enter in to such an agreement and included affirmative obligations in the ordinance to ensure a mandatory requirement was in place for the hosting platforms and others to conform to this standard. As of February 2022, the jurisdiction has yet to cite Airbnb or any other booking platform. The City and County of Denver reserves the right to enforce and believes that from a policy perspective, the expectation for compliance is clear. The jurisdiction has an 80% short-term rental compliance rate. City and County of Honolulu, Hawaii Per Ordinance 22-7, it is unlawful for a hosting platform to receive a fee for a transient vacation unit that is not permitted or licensed. The revised ordinance places the burden on the hosting platform which must exercise reasonable care to confirm if a transient vacation unit is permitted or licensed. Each booking on the hosting platform must include an identifying tax map key number which is the tracking and identification mechanism utilized by Honolulu. Airbnb and other hosting platforms must remove listings or bookings in prohibited areas. The City and County of Honolulu worked with the various hosting platforms prior to the roll out of the new ordinance and received some push back in the beginning. However, hosting platforms have begun to cooperate. The ordinance which was introduced in April 2022, also reduced the permitted or conditional use of bed and breakfast homes from 13 zoning districts to three zoning districts, with transient vacation units remaining permitted or conditional within the existing three zoning districts, essentially permissible only in the resort district and two apartment districts on the island. Those units, now non-conforming, were granted an opportunity after the introduction of the revised ordinance to claim a grandfathered status, and now must keep up with renewal on an annual basis or lose their status. Prior to the ordinance change, approximately 10,000 short-term rentals were advertised with only 800 short-term rentals approved. Now, about 2,000 to 3,000 short-term rentals are eligible to be registered. Violations are not less than $1,000 and not more than $10,000 per violation per day which is assessed on the property owner. Honolulu included a 180 day introductory period which allowed staff to roll out the changes and included a cleanup ordinance for any issues that occurred. The City and County is seeking to establish a short term rental division under code enforcement with several inspectors and a manager to monitor the host compliance software, HAMARI. Currently, the jurisdiction has a hold on any short-term rentals between 30 to 89 days due to an injunction filed by Hawaii Legal STR Alliance. The revised ordinance allows for transient occupancy up to 90 days rather than up to 30 days. Hawaii Legal STR Alliance filed the lawsuit based on a takings claim for the removal of the permitted and conditional short-term rentals in non-resort and apartment zoning districts as well as claims that the ordinance conflicts with state law. Additionally, the lawsuit includes claims that the violations are excessive. City of Chicago, Illinois The City of Chicago enacted a Shared Housing Ordinance in June 2016 which regulates short-term residential rental activities. Prior to 2021, licensed rental intermediaries (hosting platforms) would register on the owner’s/tenant’s behalf and the City of Chicago would then determine their eligibility. As the City of Chicago developed an online home sharing registration portal, all registration processes are 399 8 now handled directly with the City of Chicago. As hosts must register their units, online hosting platforms, and Shared Housing Companies must also have license to operate and advertise listings in Chicago. There are two types of internet platforms: 1) Short Term Residential Rental Intermediary; and 2) Short Term Residential Rental Advertising Platforms. A Short Term Residential Rental Intermediary is a person or company, who for compensation or a fee, uses an internet platform to connect patrons to shared housing units, which are dwelling units with six or fewer sleeping rooms that are rented out for a period of 31 or fewer consecutive days. Rental intermediaries must remove unlicensed hosts, and must apply and collect hotel accommodation taxes on behalf of the City of Chicago. A Short Term Residential Rental Advertising Platform is a person or company, who for compensation or a fee, uses internet platforms to connect patrons to short-term rentals, vacation rentals, or hotels. These agencies are required to comply with local laws and regulations regarding the collection and payment of taxes, including but not limited to the Chicago Hotel Accommodation Tax Ordinance. Regardless of the hosting type, each must ensure that the license number for the short-term rental is included in their advertisements. If not, it “creates a rebuttable presumption that the business is operating without a license” and is subject to penalties. These include a rental of ineligible units by licensee or licensee’s family members which may be fined between $500 to $1,000 within 14 days of notice and $1,500 to $3,000 on or after the 15th day and before the 28th day of notice, and $5,000 after the 28th day of notice with separate offenses and violations thereafter. Other Hosting Platform Responsibilities Minneapolis, Minnesota The City of Minneapolis, Minnesota requires a license to act as a hosting platform. According to the city’s Short-Term Rental Hosting Platform ordinance, entities are prohibited from engaging in the activity of a short-term rental hosting platform in the city without a license issued pursuant to the Minneapolis Code of Ordinances. The license application requires specific information about the applicant and the applicant must meet certain qualifications, including being in compliance with city ordinances. In cases where rental fees for lodging are collected by the hosting platform, the applicant must comply with all requirements of the State of Minnesota Department of Revenue to accurately collect and remit applicable taxes attributable to short-term rental transactions. Each licensee is required to provide data pertaining to its operations, property addresses of listings, annual number of rental days, amount charged, fees and taxes, as needed to audit and determine compliance with tax regulations. The hosting platform must also provide notice directing hosts to Chapter 351 of the Minneapolis Code of Ordinances. Las Angeles, California The City of Los Angeles, California has a Home-Sharing Platform Agreement with Airbnb. The agreement establishes the platform’s responsibilities pursuant to the City’s Home-Sharing Ordinance. According to the ordinance, the hosting platform may complete booking service transactions only as authorized by the municipal code. In order to ensure the legality of bookings, it is mandatory for the platform to include and display the registration number on each short-term rental listing. The platform must also remove any categorically ineligible listings. The hosting platform must also display a link to the city’s webpage, including information regarding penalties associated with failing to obtain a valid registration. 400 9 In addition, the booking platform must develop, create, and maintain an interface system to monitor and determine the validity of listings. The system must track certain data including unique listing identification numbers, listing web addresses, registration number, physical location of the unit, etc. This data can help municipalities have a better understanding of the local short-term rental landscape. Fillmore, California Hosting platforms are prohibited from completing any booking transaction for short-term rentals in the city. Hosting platforms must provide the city with the names and contact information of any person attempting to use the platform to complete any booking transaction. Any hosting platform in violation will be ordered to remit all illegally obtained rental revenue to the city so that it may be returned to the home-sharing visitors Fresno, California The hosting platform must be listed on the owner’s short-term rental permit application, or the property owner must submit a written request and receive written approval from the city to lists on another hosting platform. Panama City Beach, Florida Hosting platforms which display user-inputted City-issued business tax receipts but fail to verify the validity of the data is exempt from penalties. However, the platform shall remove the listing within ten days of notice from the city. Hickory Creek, Texas It is unlawful for an owner to advertise a short-term rental in any medium, including but not limited to newspaper, magazine, brochure, website, or mobile application without including the current permit number assigned by the city. Big Bear Lake, California A property owner may not hold more than two short-term rental licenses per year. One license is required per rental unit. Any person operating an unlicensed vacation rental property shall be permanently ineligible to operate a vacation rental in the city. Los Gatos, California Short-term rental hosts must provide proof of permanent residence with at least two of the following: a motor vehicle registration, driver’s license, voter registration, tax document, or utility bill. A person may only have one primary residence and must reside there for a minimum of nine months per year. If the host is planning to advertise the short-term rental unit, the listing numbers or URL/website addresses of where the short-term rental is advertised must be provided. Short-term rental licenses are capped at 5% of the housing stock in the Town of Los Gatos. If the number of valid short-term rental licenses issued exceeds that percentage, the issuance of licenses will cease and additional applicants will be placed on a first-come first-served waiting list. In a hosted rental, the number of nights that the property can be used for short-term rental purposes shall be limited to 180 nights per calendar year. If un-hosted, the number of nights shall be limited to 30 nights per year. 401 10 Short-term rentals are prohibited in new accessory dwelling units, senior housing, and below market price units. Short-term rentals are prohibited in all apartment complexes. Commercial or assembly uses, such as weddings, corporate events, and parties are prohibited short-term rentals. Conclusion The rise and growth of short-term rental platforms such as Airbnb, Vrbo, and HomeAway has created plenty of debate amongst local governments, the hotel industry, the real estate lobby, housing activists, and local residents about the impact of such rentals on the availability and affordability of long-term rental housing. According to a recent article in the Harvard Law & Policy Review, the theory behind the “Airbnb Effect” goes as follows: short-term rentals reduces the affordable housing supply by distorting the housing market in two interconnected mechanisms. The first such mechanism is one of simple conversion: any housing unit that was previously occupied by a city resident, but is now listed on Airbnb year round, is a unit that has been removed from the rental market and has essentially been added to the community’s supply of hotel rooms. This leads to a real, but likely mild, increase in rents, an effect that is concentrated in affluent or gentrifying neighborhoods along the community’s central core. More disconcertingly, conversion reduces the community’s already limited supply of affordable housing. The second mechanism is “hotelization.” So long as a property owner or leaseholder can rent out a room on Airbnb for cheaper than the price of a hotel room, while earning a substantial premium over the residential market, there is an overpowering incentive to list each unit in a building on Airbnb rather than rent to local residents thereby creating mini “home-hotels.” This decreases the supply of housing and spurs displacement and segregation. Given that the short-term rental market has grown by 800% since 2011, it is therefore not hard to see why many people are concerned about the industry’s impact on affordability and availability of long-term rental housing. While not the primary cause of affordable housing problems, the conversion of long-term housing into short-term rental use are such a concern that it’s becoming a major rationale for regulating short-term rentals. Recommendation Staff recommends that the City of Bozeman pursue four types of affirmative obligations: 1. In order to ensure the legality of bookings, the booking platform must include and display the registration number on each short-term rental listing. 2. Short-term rental hosts must upload a signed and approved copy of the City-issued short-term rental permit along with the registration number for each unit listing. 3. If the host is planning to advertise the short-term rental unit, the listing numbers or website addresses of where the short-term rental is advertised must be provided. 4. The booking platform must provide to the City, on a predetermined basis, an electronic report of the listings advertised by the booking agent within the City. 402 Short Term Rental Focus Group Summary The City Commission prioritized efforts to better understand how regulation of Short Term Rentals (STRs) in Bozeman may influence housing supply and affordability. According to available data from Host Compliance, there are 918 active Short Term Rental (STR) listings in the Bozeman area (based on City's jurisdiction limits). Out of 20,988 total households, STRs make up roughly 4.4% of the overall housing supply. The city’s STR registration process requires owners of STRs to register with the city. Only 253 or 27.5 % of STRs are registered with the City. After a City Commission work session in summer 2022, staff were directed to engage with owners of STRs about potential incentives to convert STRs into long term rentals. The purpose was to gather feedback from local STR owners on motivations, incentives, and barriers to converting short term rentals to long term rentals. On Wednesday, January 18th, city staff from Communications, Legal, Planning Division, and Community Housing Program facilitated and recorded conversations with 13 STR owners at City Hall. Participants were selected from the city’s current list of registered STR owners to represent diversity across duration of time registered with the city, number of STRs owned, and location across the city. Summary of Themes What we heard from participants is summarized into five main themes: 1.Financial benefits of STR over LTR o Participants stated that the income earning potential is greater with STRs o Helps some participants pay their mortgage o Some mentioned STRs as a long-term financial investment for their future (retirement) o About 1/3 of participants voiced support for a financial subsidy to convert their STR to an LTR “Big Sky does it; it’s a short-term solution” “As an owner, it would help bridge that gap” o About 2/3 did not support financial subsidy to convert their STR into an LTR “Tax payers won’t want to foot the bill for a program that only benefits STR owners, and it likely wouldn’t incentivize them anyway” “Subsidy is a recipe for failure. Would not incentivize them to convert. Better off putting subsidy toward building affordable housing” “Focus on future planning. Incentivize developers, not hosts” “Big Sky Rental program is an example of what didn’t work” 2.Lack of enforcement of existing STR regulations o Participants viewed the city as not enforcing or following through on STR regulations and wanted staff to focus on compliance rather than converting or banning STRs “We haven’t seen what enforcement can do – and there are problems w/ the permit system” “People are doing STRs illegally” “Enforce a business license for a type 3” 403  “The data suggests 5,000 STRs for Bozeman may be healthy. We should enforce it, and celebrate it” 3. Flexibility and convenience of STR over LTR o Some participants brought up how STRs are more flexible than LTRs for owners as they want to be able to use it part of the year or have family and friends use the property 4. Challenges with landlord/tenant relationships and property maintenance with LTRs o Participants talked about challenges with LTRs when it comes to tenants. There is increased wear and tear on LTRs o Some hosts had long-term rentals and decided to convert to STRs due to bad experiences  “Tenants not paying rent, or are late with rent, and the eviction process is daunting” o Many viewed long-term leases as a bigger liability and STRs as less risky. 5. Potential solutions o Bulk leases for large employers –  “Hospitals are desperate to find housing. May ease some concerns about finding reliable tenants” o Limits on number of STR licenses per owner –  “I shouldn’t be able to have 15 vacation rentals”  “Restrict 2nd and 3rd homes as STRs. Prevent out-of-state investors”  “Give developers incentives to ban STRs in subdivisions and CC&Rs to prevent future proliferation” o Prohibiting certain types of STRs –  “No new Type 3s”  “Type 3s have increased drastically. City needs to look at that”  “We should all be in favor of more restrictions as long as we are grandfathered in.” o Regulating STRs by location –  Setting up a points system on top of existing regulations (seniority, priority in higher intensity zoning districts, fast track ADU eligibility, STR core areas/allowing more in areas with existing STRs) o Create a program to educate, match, and “certify” reliable renters and landlords –  Create a pool of funds (from deposits and fees paid by the tenant) to pay for background checks; underwrite leases; offer insurance coverage for damages (like Airbnb) o City and County investment in buying land, developing housing  Many view lack of housing and increased rental costs are causing the housing crisis, not STRs.  Instead of focusing on STRs, focus on how we can create a housing market and environment that creates more LTRs.  Look at vacant land in the County to build housing 404 Memorandum REPORT TO:City Commission FROM:Kaitlin Johnson, Budget Analyst Melissa Hodnett, Finance Director Jeff Mihelich, City Manager SUBJECT:FY24 City Manager's Recommended Budget Presentation: Internal Service Funds, Enterprise Funds, Special Assessment Districts (Street Maintenance, Street Arterials & Collectors, Parks & Trails District, and Tree Maintenance (Forestry)) MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Finance RECOMMENDATION:Listen to the presentation, ask questions, and provide comments. 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: We are pleased to present to you the City Manager Recommended Budget for Fiscal Year 2023-2024 (FY24). The recommended budget represents the thoughtful work of dozens of people across all departments to ensure an informed projection of FY24 in support of the City Commission Strategic Plan. Bozeman is a vital, growing, and changing city, which presents significant challenges including balancing community needs, like infrastructure and public safety, with affordability and pressure on the allocation of limited City resources. The recommended budget focuses on maintaining or improving our level of service to the community as it relates to public safety, community health & safety, and affordable housing. Municipal budgets serve a number of important functions. In addition to laying out a spending plan for the City and allocating resources to meet the diverse needs of the community, Bozeman’s budget: Is a principal policy and management tool for the City’s administration, reflecting and defining the annual work program; Provides a framework for the City to accomplish its vision and strategic plan; and Reflects core City values of integrity, leadership, service, and 405 teamwork. This budget presentation will provide highlights from the City's Internal Service Funds, Enterprise Funds and Special Assessment Districts. The FY24 City Manager Recommended Budget is available online at FY24 City Manager Recommended Budget. In addition to begin available online, a copy of the FY24 City Manager Recommended Budget is available at the Bozeman Public Library. Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments on a cost- reimbursement basis. The City has three Internal Service Funds. The Medical Health Insurance Fund accounts for insurance premiums received from various City employees and retirees and the related costs of health and dental premiums paid to the City’s insurance provider. The Public Works Administration Fund is used to allocate costs associated with Public Works Administration, GIS, and Engineering to funds that utilize services provided by each division. The Vehicle Maintenance Fund accounts for the maintenance and repair of vehicles used in operation of City services. The presentation will include information provided in the fund summaries found on pages 49-50 of the FY24 City Manager Recommended Budget. Activity detail for the Public Works Administration and Vehicle Maintenance funds can be found on pages 89-94 and 101-102, respectively. Enterprise Funds are used to account for efforts that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is for the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. The City has five Enterprise Funds: Water Fund, Wastewater Fund, Stormwater Fund, Solid Waste Fund, and Parking Fund. The presentation will include information provided in the fund summaries found on pages 43-48 of the FY24 City Manager Recommended Budget. Division details for Enterprise funds can be found on pages 85-86, 95-98 and 103-112. The City’s Special Assessment Districts include the Street Maintenance Fund, Street Arterial & Collector District Fund, Parks & Trails District Fund, and Tree Maintenance (Forestry) Fund. The Street Maintenance Fund relies on assessments for revenue generation for street maintenance and reconstruction. Beginning in FY24 this fund also accounts for revenues from state gasoline taxes that can be used on street maintenance or street arterial & collector capital projects. The Arterial & Collector District Fund is a district 406 that provides the “local share” of some projects in advance of development. The City creates payback districts to recover the “local share” once an adjacent project is developed. The Parks & Trails District Fund was created in FY21. The plan, as approved by the Commission, is a five-year ramp up to silver level of service. The Tree Maintenance (Forestry) Fund accounts for special assessment revenues levied, received, and expended for tree maintenance provided in the public right of way. The presentation will include information provided in the fund summaries found on pages 28-30 of the FY24 City Manager Recommended Budget. Activity details for Special Assessment Districts can be found on pages 99-100 and 117-120. The first work session took place on June 13, 2023. Final Adoption of the FY24 Budget is scheduled for July 11, 2023. UNRESOLVED ISSUES:None ALTERNATIVES:If there are changes the City Commission would like to make to the City Manager's Recommended Budget, they can be discussed during this meeting and adopted at formal budget adoption on July 11. FISCAL EFFECTS:This presentation has no immediate fiscal impacts, but it is the second work session as part of the budget adoption process for the fiscal year 2024, which begins on July 1, 2023. Once adopted, the budget will fund activities that support the Commission's priorities. Report compiled on: June 1, 2023 407 Memorandum REPORT TO:City Commission FROM:Chris Saunders, Community Development Manager Erin George, Deputy Community Development Director Anna Bentley, Community Development Director SUBJECT:Impact Fee Study Update and Project Kickoff MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Plan/Report/Study RECOMMENDATION:Receive Information STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:The City of Bozeman and surrounding areas have seen continuous growth for over 20 years. The City Commission adopts a growth policy to direct decision making regarding growth. Chapter 1, pages 8-16, of the Bozeman Community Plan 2020 (BCP2020) discusses how the City should approach growth. The BCP2020 concludes that growth within the City limits is preferred over other alternatives. Availability of infrastructure is a key element in enabling additional development within the community. The City completes specialized facility plans examining current demands and future needs for individual infrastructure services. Some of the City’s most important responsibilities are the provision and operations of fire/EMS services, water, sewer, and transportation. These facilities make growth of a modern city possible. The creation and operations of these facilities is complex and expensive. One important tool the City uses to create new capacity in these facilities is impact fees. An impact fee is a one-time service charge to new or expanded development that require additional services. The state authorizes municipalities to collect impact fees through Title 7 Chapter 6 Part 16 MCA [External Link]. State law gives broad authority and requires certain procedures for determining amounts charged, collection and management of fees, how fees are allocated to specific construction projects, and limitations on their use. Impact fees collected can only be used to pay for costs to expand capital capacity. No operations or maintenance costs may be paid with impact fees. Impact fees are not charged for or expended on minimum standard improvements for new development. 408 Bozeman has used impact fees since 1996. Bozeman established local regulations for impact fees in Chapter 2 Article 6 Division 9 BMC [External Link]. As part of those regulations, the City established a four-year cycle to update the service area reports which establish service costs. The regular cycle helps to keep charges current to construction costs, includes updated facility planning, and reflects changes to the capital improvement program with new or completed projects. The City has retained TishlerBise to assist the City with the latest impact fee update. TischlerBise has engaged with the City before on this work, preparing the 2012 editions of the fee studies. Impact fees provide a key funding source for expanding services concurrently with new development. This improves public safety, reduces public and private risks, facilitates construction of new housing, and lessens total cost of system development to the users. Impact fees come with a number of limitations including: Charged fees may only be used for capital capacity expansion; no operations or maintenance. Must be used only for the same type of infrastructure for which the fee was charged. Are limited to the costs reasonably related to the development to which they are charged. May not exceed a reasonably proportionate share of costs to accommodate the development paying the fee. Must be based on planned or completed capital improvements. Improvements paid for with fees must benefit the fee payer. Do not cover all costs of service. City must track and keep separate impact fees from other revenue. A capital improvement program must be developed and adopted to spend impact fee funds. A service area report documenting the area where the fees apply, factual basis for the fee, and determining unit costs to be charged to future development must be prepared periodically. Information on the City’s current impact fee service area reports, costs of service, and processes is available through the City’s impact fee website (External Link). A capital improvement program (CIP) is used to assign location and work to expand service capacity. The current CIP document (Fiscal Years 2024-2028) is available through the City’s budget and financial reports website (External Link). The four impact fee funds are presented beginning on pages 77, 81, 192, and 221. Each fund is presented with a five-year summary of anticipated revenues and expenditures, an overall expected fund balance each year, and project descriptions for all upcoming items included on the CIP. A map of projects on the current CIP CIP is attached. The CIP is prepared by the City Manager and staff each year. It is presented to the City Commission each winter and discussed and accepted before becoming a key element of the annual budget preparation. The CIP is based 409 on the various facility plans for each service type. Each plan examines existing conditions, determines future needs for service from expected growth, and identifies specific projects that can be constructed to provide additional service. The public is invited and encouraged to participate both in the development of individual facility plans and the CIP. The CIP plays a key role in coordination of work being funded by different sources and as a bridge between the 20+ year horizon of facility planning documents and the annual budget. The five year CIP horizon allows the community to see upcoming planned work, offer input on priorities for capacity expansion, and coordinate public and private investments. State law requires an advisory board for impact fees. The Community Development Board is the board assigned this role. The staff and consultant will work with the Board during the development of the service area reports. The role of the Board is to “review and monitor the process of calculating, assessing, and spending impact fees.” The Community Development Board will ultimately consider the final reports and make a recommendation to the City Commission regarding their adoption. The Board also reviews and makes a recommendation regarding the annual CIP update. The development of the service area reports is primarily a technical and financial analysis. General policy and standards are set by other processes. Data will be drawn from the City’s facility plans, capital asset tracking software, financial records, and demographic data from the US Census and other similar sources. Drafts of service area reports will be made available through the City’s website for review and comment by the public and the Community Development Board and City Commission will consider. The public is invited to all advisory board and Commission meetings. Service areas are the geographic area where the necessary link between service use and development/fee payer is established. Bozeman’s impact fees only apply to development within its corporate and utility limits. Development outside the city, such as west of Gooch Hill Road, pays any applicable fees to its local service provider, not to the City of Bozeman. Prior service area reports found that all of Bozeman is a single service area. Each impact fee is legally separate from the others. Each service area report will consider the specific characteristics of demand that are unique to that service type. For example, water is calculated for gallons per person per day for homes and fire/ems is based on number of calls for service. Cost for creating capacity for a new gallon of water or service call is calculated from local data and is relevant to our local conditions. Bozeman is fortunate to have detailed and recent construction cost information from prior projects that can inform these calculations. Impact fees are collected during the building permit process. Impact fees are a fee for service and are therefore applicable to all development. All governmental, institutional, non-profit, and for-profit development is 410 reviewed and charged according to its expected service requirements. Fees are updated on January 1st of each year for prior year inflation. Due to the requirement for proportionality impact fees cannot be waived for one group of users and costs moved to other impact fee payers. The City can choose to pay impact fees on behalf of development from other revenue and has done so several times in support of affordable housing or daycare development. Availability of money to do this is affected by the annual budget. UNRESOLVED ISSUES:None. ALTERNATIVES:None. FISCAL EFFECTS:Funds for the project have been approved. Attachments: ImpactFeeCIP.pdf Report compiled on: June 16, 2023 411 412 Memorandum REPORT TO:City Commission FROM:David Fine, Economic Development Manager Brit Fontenot, Economic Development Director Jeff Mihelich, City Manager SUBJECT:The Economics of Neighborhood Commercial MEETING DATE:June 27, 2023 AGENDA ITEM TYPE:Policy Discussion RECOMMENDATION:Listen to the presentation, ask questions and discuss issues related to the development of neighborhood commercial nodes. STRATEGIC PLAN:4.4 Vibrant Downtown, Districts & Centers: Promote a healthy, vibrant Downtown, Midtown, and other commercial districts and neighborhood centers – including higher densities and intensification of use in these key areas. BACKGROUND: The City of Bozeman is in the process of revising its Uniform Development Code (UDC). Over the years, the City has considered its requirements for retail, commercial, and other non-residential development in certain zoning districts and in individual development projects. Retail and commercial development is an important component of creating vibrant places and a high quality of life. There are some concerns, however, regarding oversupplying the market and requiring commercial development in places or in projects where it is not viable. The City’s Community Development and Economic Development departments have engaged our on-call economic development and real estate consultant, Economic & Planning Systems to provide an informational presentation on the factors that affect demand and success in commercial development. EPS performed analysis related to future land use inventory and zoning districts to inform the Bozeman Community Plan 2020. Their report related to this topic addresses some of these issues on p. 54-62. This is an informational presentation and discussion; no formal action by the Commission is requested. UNRESOLVED ISSUES:None at this time. 413 ALTERNATIVES:At the direction of the City Commission. FISCAL EFFECTS:None. Report compiled on: June 20, 2023 414