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HomeMy WebLinkAbout07-11-23 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 Commissioner Pomeroy(Maas) E.FYI F.Commission Disclosures G.Consent G.1 Accounts Payable Claims Review and Approval (Waters) G.2 Authorize the City Manager to Sign an Audit Services Standard Audit Contract Covering THE CITY COMMISSION OF BOZEMAN, MONTANA REGULAR MEETING AGENDA Tuesday, July 11, 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 Fiscal Years 2023, 2024, and 2025 and an Audit Engagement Letter for Fiscal Year 2023(Hodnett) G.3 Ratify the City Manager's Signature on the Fiscal Year 2024 Montana State University (MSU) Fire Service Agreement(Waldo) G.4 Authorize the City Manager to Sign a Professional Services Agreement (PSA) with Locality Media, dba First Due for Fire Department Records Management Services(Waldo) G.5 Authorize the City Manager to Sign a Professional Services Agreement (PSA)with Center for Public Safety Excellence (CPSE) for Technical Advisory Program (TAP) Services with Fire & Emergency Services Self-Assessment(Waldo) G.6 Authorize the City Manager to Sign a Professional Services Agreement with Think 2 Perform(Tozer) G.7 Authorize the City Manager to Sign the Attached Task Order for Fiscal Year 2024 Remediation Systems Oversight at the Story Mill Landfill(Flammond) G.8 Authorize the City Manager to Sign the Attached Task Order for Fiscal Year 2024 Groundwater and Perimeter Methane Monitoring at the Story Mill Landfill(Flammond) G.9 Authorize the City Manager to Sign a First Amendment to the Professional Services Agreement with Design 5 Landscape Architecture to Continue Providing Design Services for the Downtown Bozeman Alleyways Beautification Project(Staley) G.10 Authorize the City Manager to Sign a Second Amendment to the Professional Services Agreement with Sanderson Stewart to provide Right of Way Acquisition Services on a Term Contract Basis until July 2024(Murray) G.11 Authorize the City Manager to Sign Task Order 3, Under the Professional Services Master Task Order Agreement with HDR Engineering Inc., Providing Engineering Services to Update the East Gallatin River QUAL2K Water Quality Model and Report(Heaston) G.12 Authorize the City Manager to Sign Task Order 4, under the Professional Services Master Task Order Agreement with HDR Engineering Inc., Providing Engineering Services for MPDES Discharge Permit Renewal Assistance for the Water Reclamation Facility(Heaston) G.13 Resolution 5434, Annexation of 0.54 Acres and Adjacent Right-of-way, the 2103 Bridger Drive Annexation, Application 21147(Rogers) G.14 Resolution 5507 to Establish Compliance with IRS Reimbursement Bond Regulations(Hodnett) G.15 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 21147(Rogers) G.16 Ordinance 2131, Final Adoption of The Short Term Rental Affirmative Obligations Text 2 Amendment, Application 23147(Lyon) G.17 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.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. I.Mayoral Proclamation I.1 Mayoral Proclamation Proclaiming Americans with Disabilities Act Month(Andrus) J.Special Presentation J.1 Belonging in Bozeman Plan Quarterly Update (Hess & Lyon) K.Action Items K.1 Resolution 5495 To Increase Permit Fees in the University Residential Parking Permit District and the Bozeman High School Residential Parking Permit District(Veselik) K.2 Resolution 5486 Adopting Fiscal Year (FY) 2023-24 Budget (Hodnett) L.FYI / Discussion M.Adjournment City Commission meetings are open to all members of the public. If you have a disability that requires assistance, please contact our ADA Coordinator, Mike Gray, at 582-3232 (TDD 582-2301). Commission meetings are televised live on cable channel 190 and streamed live at www.bozeman.net. In order for the City Commission to receive all relevant public comment in time for this City Commission meeting, please submit via www.bozeman.net or by emailing agenda@bozeman.net no later than 12:00 PM on the day of the meeting. Public comment may be made in person at the meeting as well. 3 Memorandum REPORT TO:City Commission FROM:Alex Newby, Deputy City Clerk Mike Maas, City Clerk Kira Peters, Assistant City Manager Jeff Mihelich, City Manager SUBJECT:Authorize the Absence of Commissioner Pomeroy MEETING DATE:July 11, 2023 AGENDA ITEM TYPE:Administration RECOMMENDATION:Authorize the Absence of Commissioner Pomeroy STRATEGIC PLAN:1.1 Outreach: Continue to strengthen and innovate in how we deliver information to the community and our partners. BACKGROUND:Commissioner Pomeroy notified City Manager Mihelich and Mayor Andrus of her anticipated absence. UNRESOLVED ISSUES:None ALTERNATIVES:None FISCAL EFFECTS:None Report compiled on: July 6, 2023 4 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:July 11, 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 6/29 thru 7/5, as there was no commission meeting on 7/4. 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: July 6, 2023 5 Memorandum REPORT TO:City Commission FROM:Melissa Hodnett, Finance Director SUBJECT:Authorize the City Manager to Sign an Audit Services Standard Audit Contract Covering Fiscal Years 2023, 2024, and 2025 and an Audit Engagement Letter for Fiscal Year 2023 MEETING DATE:July 11, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Approve the authorization of the City Manager to sign audit services standard audit contract covering fiscal years 2023, 2024, and 2025 and an audit engagement letter for fiscal year 2023. 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 Section 2-7-503 requires that a financial report be prepared every year. This statute also requires a biannual audit of the financial report - including the accounts, financial records, and transactions of all administrative departments of the City - by independent certified public accountants selected by the City Commission. The City Commission and City Administration have historically believed that an annual audit provides a higher level of financial assurance and fiscal integrity than a biannual audit, and this intension is expressed in Section 5.09 of the City Charter. The Association of International Certified Public Account (AICPA) through AU-C 210 requires the terms of an audit engagement to be documented in an audit engagement letter. The audit services standard audit contract for fiscal years 2023, 2024, and 2025 and audit engagement letter for fiscal year 2023 is with the audit firm Eide Bailly, LLP. UNRESOLVED ISSUES:None. ALTERNATIVES:None. FISCAL EFFECTS:None, this agreement is budgeted for each year. 6 Attachments: Standard_Audit_Contract_City of Bozeman_Eide Bailly LLP.pdf City of Bozeman 2023 Engagement Letter.pdf Report compiled on: July 3, 2023 7 AuditContract.11-2020 Page 1 of 13 11/2020 DEPARTMENT OF ADMINISTRATION STANDARD AUDIT CONTRACT This Contract is made this 3rd day of April , 2023 , by and among Eide Bailly LLP Certified Public Accountant ("Contractor"), City of Bozeman, Montana Governmental Entity ("Entity"), and the Montana Department of Administration, Local Government Services, ("State"), acting under the authority of Title 2, Chapter 7, Part 5, of the Montana Code Annotated. The State’s mailing address, phone number and e-mail address are P.O. Box 200547, Helena, MT 59620-0547; (406) 444-9101; and LGSPortalRegistration@mt.gov. 1. Effective Date: This contract is not effective with respect to any party until it is approved and signed by the State, as required by Section 2-7-506(3), MCA. The Contractor may not begin any audit work until the State gives this approval. If the Contractor begins work before the State’s approval of the contract and the State subsequently does not approve the contract, the Contractor is not entitled to receive any compensation for the work performed. 2. Audit Period and Payment: This contract covers the following audit period(s): July 1 , 2023 to June 30 , 2025 . A. The Entity shall pay the Contractor for the audit work on the basis of time and necessary out-of-pocket expenses, which will not exceed: $125,500 for initial (or sole) audit covering 7/ 1/2022 to 6 /30 /2023 . $100,000 for subsequent audit covering 7/ 1 /2023 to 6 /30 /2024 . $107,000 for subsequent audit covering 7/1 /2024 to 6 /30 /2025 . The Entity shall pay the fees listed in Appendices A, B & C, as applicable, which are attached hereto and incorporated by reference. Any change to the audit fees requires a contract amendment. B. The contract payments do not include the cost of additional work that may be required if the Contractor discovers a defalcation or material irregularity. Any change in the scope of the audit services to be provided under this contract requires a contract amendment. C. The Contractor may submit interim bills to the Entity each month, based upon the estimated percentage of contract completion. The Entity may retain ten percent (10%) of each of these estimates until the Contractor has delivered the final audit report, at which time the Entity shall release the amount retained. 3. Peer Review: The Contractor shall provide the Entity with a copy of its most recent external peer review report and any letter of comment, and any subsequent peer review reports and letters of comment received 8 AuditContract.11-2020 Page 2 of 13 11/2020 during the contract period. 4. Audit Scope: The Contractor shall perform the following: A. The Contractor shall conduct the audit in accordance with (i) generally accepted auditing standards adopted by the American Institute of Certified Public Accountants and (ii) the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. The Contractor shall opine on the presentation of the Entity’s financial statements in accordance with the Entity’s applicable financial reporting framework prescribed at Section 2-7-504, MCA. If the Contractor’s opinion on the Entity’s financial statements is other than unmodified, the Contractor shall fully discuss the reasons with the Entity in advance of issuing a report. If, for any reason, the Contractor is unable to complete the audit or is unable to form or has not formed an opinion, the Contractor may decline to express an opinion or decline to issue a report as a result of the engagement. B. The Contractor shall perform tests of internal control over financial reporting. Findings resulting from these tests shall be reported in accordance with Government Auditing Standards C. The Contractor shall perform tests of the Entity’s compliance with provisions of laws, regulations, contracts, and grant agreements. The Contractor shall use the local government compliance supplement prepared by the State, as required by Section 2-7-505(2), MCA, in conjunction with Government Auditing Standards to determine the compliance testing to be performed during the audit. Findings resulting from these tests shall be reported in accordance with Government Auditing Standards. If the Contractor becomes aware of fraud, waste or abuse, the Contractor shall report related findings in accordance with Government Auditing Standards. The Contractor shall perform tests, including but not limited to the following, to determine whether: (1) the Entity has complied with all appropriate statutes and regulations, as required by Section 2-7- 502, MCA; (2) the Entity has complied with the provisions of each of its debt covenants and agreements; (3) if the audit is of a county, city or town, the Entity has retained money in a local charge for services fund contrary to the requirements of Sections 17-2-301 through 17-2-303, MCA, as required by Section 17-2-302, MCA. The Contractor shall report any findings of noncompliance with the provisions of these statutes, regardless of materiality; and (4) if the audit is of a county or consolidated city/county government, the Entity has complied with state laws relating to receipts and disbursements of agency or custodial funds maintained by the Entity, as required by Section 2-7-505, MCA. If required by the State, the Contractor shall provide documentation of testing performed to comply with (3) and (4), above. D. When applicable, the audit must meet all requirements of the Federal Single Audit Act of 1984, as amended, and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). If these federal regulations are amended, the amended regulations will prevail. 9 AuditContract.11-2020 Page 3 of 13 11/2020 E. The audit scope with regard to federal financial assistance for each fiscal year covered by this contract must be as specified in Appendices A, B and C. Any change to the audit scope with regard to federal financial assistance requires a contract amendment. F. Except as provided below, for purposes of determining the scope of the audit, the Entity is considered the financial reporting entity as defined in the Entity’s applicable financial reporting framework prescribed at Section 2-7-504, MCA. This provision does not preclude the Entity from engaging a different audit firm for the audit of a segment, fund or component unit of the Entity. However, both the Entity and Contractor shall notify the State whenever the Entity elects to engage a different audit firm for the audit of a segment, fund or governmental component unit. Such additional audit must be contracted for on the State’s Standard Audit Contract, and the audit firm shall be on the Roster of Independent Auditors authorized to conduct audits of Montana local governments that is maintained by the State. If this contract is for an audit of a segment, fund, or governmental component unit of the primary government, the Entity is considered to be the segment, fund or component unit. G. Any school district audit must also include auditing procedures sufficient to provide an opinion as to whether the following supplemental information is fairly stated in relation to the basic financial statements: (1) the school district's enrollment for the fiscal year or years being audited as reported to the Office of Public Instruction in the Fall and Spring “Student Count for ANB” reports; and (2) when applicable, the extracurricular funds for pupil functions. H. If the Entity is a school district or associated cooperative, the Contractor shall contact the State Office of Public Instruction and the county superintendent of schools before or during the audit of the Entity. The Contractor shall determine whether those offices are aware of potential financial or legal compliance problems relating to the Entity that could affect the scope of the audit. I. The Contractor shall immediately notify the Entity and the State in writing of any material irregularities it discovers. If the Entity is a school district or special education cooperative, the Contractor shall also immediately notify the State Office of Public Instruction in writing. To notify the State, Contractors shall email LGSPortalRegistration@mt.gov to the attention of the Local Government Services Bureau Chief. To notify the State Office of Public Instruction, Contractors shall email OPIAuditReport@mt.gov to the attention of the OPI Auditor. J. The Contractor shall notify the Entity of all proposed audit adjustments and, if the Entity concurs, shall obtain written acceptance of these proposed adjustments. The State reserves the right to request documentation of these proposed and accepted audit adjustments. 5. Entity’s Responsibilities: The Entity shall be responsible for: A. its basic financial statements, including note disclosures; B. all supplementary information required by its applicable financial reporting framework prescribed at Section 2-7-504, MCA and by provisions of this contract; C. establishing and maintaining effective internal control over financial reporting, including internal 10 AuditContract.11-2020 Page 4 of 13 11/2020 controls related to the prevention and detection of fraud; D. ensuring that it complies with the laws, regulations, contracts and grant agreements applicable to its activities; E. making all financial records and related information available to the Contractor; F. the schedule of expenditures of federal awards required for audits conducted under Uniform Guidance; G. approving all proposed audit adjustments before posting, if the Entity concurs with the proposed adjustments; H. adjusting the financial statements and accounting records to correct material misstatements and to agree with the audited financial statements; and I. providing the Contractor, at the conclusion of the audit engagement, with a letter that confirms certain representations made during the audit, including an affirmation that the effects of any uncorrected misstatements aggregated by the auditor during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. 6. Dates for Annual Financial Report or Trial Balance of Accounts: The Entity shall prepare its annual financial report or a trial balance of accounts no later than the dates specified in Appendices A, B and C. If the Entity is unable to prepare its annual financial report or trial balance by the date specified in the Appendices, the Entity shall notify the Contractor and the State in writing prior to the specified dates. 7. Beginning the Audit: The Contractor shall begin the audit field work based on the schedule established in Appendices A, B and C. Under Section 2-7-503(3)(a), MCA, all audits must commence within nine months from the close of the last fiscal year of the audit period. 8. Completion of Audit: The Contractor shall deliver the audit report to the Entity and the State, based on the schedule established in Appendices A, B and C. If the Contractor cannot deliver the audit report to the Entity and the State on the date specified in the Appendices, the Contractor shall notify the Entity and the State in writing of that fact, and the reason(s) for the delay. Under Section 2-7-503(3)(a), MCA, all audits must be completed and the reports issued within one year from the close of the last fiscal year covered by the audit. If the audit is conducted in accordance with the provisions of Uniform Guidance, the Contractor shall complete the audit and issue the audit report within the time period required by that federal regulation, unless a longer period has been agreed to in advance by the federal cognizant or oversight agency for audit. If the Entity has requested and received an extension of the due date of the Uniform Guidance from a federal agency, the Entity shall submit a copy of the approved extension to the State. 9. Due Date Extension: The State may grant an extension to the Entity for filing the audit report beyond the one- year due date provided for in paragraph 8, above. To do so, the Entity shall make a request to the State in writing and shall show good cause for the delinquency or demonstrate that the failure to meet the deadline provided for in paragraph 8, above, was the result of circumstances beyond the Entity’s control. The State will determine good cause or circumstances beyond the Entity’s control based on the facts of each case. 10. Presentation of Audited Financial Statements: The final audit report must contain basic financial statements and supplementary information consistent with the applicable financial reporting framework prescribed at Section 2-7-504, MCA. In addition, other supplementary information required by provisions within this contract and by Uniform Guidance must also be included, if applicable. 11 AuditContract.11-2020 Page 5 of 13 11/2020 A. The final audit report must also contain any supplementary or other information as agreed upon by the Entity and Contractor. B. If the Entity’s accounting records or other circumstances do not permit financial statements to comply with the applicable financial reporting framework prescribed at Section 2-7-504, MCA, the Contractor shall notify the State of those conditions and describe the financial statements that will be presented. The applicable auditor’s reports must be modified in accordance with professional standards to reflect a departure from the applicable financial reporting framework. C. If the audit is of a school district with separate elementary and high school district general funds, the general funds must be combined as a single major fund. All other funds must be separately considered for major fund criteria. D. If the audit is a biennial audit covering two years, the Contractor shall present complete financial statements as specified above for each year covered by the audit. However, note disclosures for both fiscal years may be in one set of notes, with separate fiscal year disclosures as necessary. The two years must be presented under one audit report cover and opined upon in one Independent Auditor’s Report. 11. Auditor’s Reports: All audit reports must contain the following auditor's reports, which must comply with applicable professional standards in effect for the fiscal year or years being audited: A. a report on the financial statements of the Entity; B. a report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards. C. a reference to a report disclosing any deficiencies in internal control or instances of noncompliance with provisions of contracts or grant agreements or abuse that have a less than material effect on the financial statements but warrant the attention of management or those charged with governance. This report must be referred to in the report required in 11.B. above. D. a report on any supplementary or other information presented in the audit report. This report must be given in an “other matters” paragraph(s) of the auditor’s report on the financial statements (11.A. above), and shall identify, if applicable: (1) Any Required Supplementary Information (RSI), as required by the Governmental Accounting Standards Board. (2) Any Supplementary Information (SI) included in the report to comply with provisions of laws, regulations, contracts, or grant agreements. For the following schedules, the Contractor shall report on whether the information is fairly stated, in all material respects, “in relation to” the financial statements as a whole, unless the condition of the financial records do not allow the auditor to render such an opinion: a) schedule of school district “Student Count for ANB” required in paragraph 13.A.; b) schedule of school district extracurricular fund financial activities required in paragraph 13.B.; c) schedule of expenditures of federal awards required by Uniform Guidance and in paragraph 12 AuditContract.11-2020 Page 6 of 13 11/2020 12.A.; and d) Any supplementary information for financial reporting frameworks required by A.R.M. 2.4.401. (3) Any Other Information (OI) for financial reporting frameworks required by A.R.M. 2.4.401. (4) Any Other Information (OI) that is included in the audit report, if deemed appropriate in accordance with professional standards. E. a report disclosing the action taken by the Entity to correct any deficiencies or implement any recommendations contained in the prior audit report. This report must be in a format that specifically identifies, by title or summary, each deficiency or recommendation contained in the prior audit report and the action taken by the Entity on each such deficiency or recommendation. F. If the Contractor includes audit findings in the reports referenced in 11.B. and 11.C. above, the views of Entity officials and their planned corrective actions must also be included, as required by Government Auditing Standards, if they are available at the time the Contractor submits the audit report to the State. If the views and planned corrective actions are not available at that time, the Contractor shall so indicate in the reports. 12. Single Audits: All audit reports for single audits done in accordance with Uniform Guidance must contain the following: A. a schedule of expenditures of federal awards, prepared by the Entity, which must contain all elements required by Uniform Guidance. B. a report on the schedule of expenditures of federal awards. This report may be combined with other reports as provided by Uniform Guidance and professional standards. This report must comply with applicable professional standards in effect for the fiscal year or years being audited. C. a report on compliance for each major program and a report on internal control over compliance in accordance with Uniform Guidance. These reports must refer to the separate schedule of findings and questioned costs described in paragraph 12.D. of the contract and must comply with applicable professional standards in effect for the fiscal year or years being audited. D. a schedule of findings and questioned costs which must include the information required by Uniform Guidance. E. an Entity-prepared document, separate from the Contractor’s findings, that describes the Entity’s corrective action plan in accordance with Uniform Guidance for each current-year audit finding, if that plan is available at the time the Contractor submits the audit report to the State. This document should be submitted on Entity letterhead and should include a corrective action plan for each finding, regardless whether the finding is identified in accordance with Uniform Guidance or Government Auditing Standards. 13. School Districts: School district audit reports must include the following as supplementary information/schedules: A. a schedule of the district's enrollment as reported to the Office of Public Instruction for the fiscal year or years being audited. The schedule must contain the enrollment both as reported in the Fall and Spring 13 AuditContract.11-2020 Page 7 of 13 11/2020 “Student Count for ANB” reports and as documented by the school district's enrollment records; and B. a detailed schedule of extracurricular fund financial activities. 14. Local Governments Reporting on Non-GAAP Financial Reporting Framework: Audit reports of local governments that report on a non-GAAP financial reporting framework as provided in A.R.M. 2.4.401 must include any Supplementary Information and Other Information required in that administrative rule. 15. Written Report to Entity: The Contractor shall render a single, written report for the Entity audited, including the reports and schedules referenced in paragraphs 11 through 14 above. 16. Exit Conference: Before submitting the final audit report, the Contractor shall hold an exit review conference in which the audit results are discussed with those charged with governance and other appropriate Entity officials and employees. The Contractor shall ensure that all members of the governing body and key members of management are notified of this exit conference. The Contractor further agrees that before the exit conference, it will not discuss the audit findings with anyone other than the Entity or the State. Once the Contractor delivers the final audit report to the Entity, the report is deemed to be a public record. 17. Report Distribution: The Contractor and Entity shall file copies of the audit report as specified below: A. The Contractor shall provide the Entity with the number of copies of the audit report specified in Appendices A, B and C. The cost of those copies is included in the total price for the engagement as set out in paragraph 2.A., above, and in the Appendices. B. The Contractor shall submit one of the copies referred to in 17.A., above, to the attorney for the Entity. C. Upon request by the Entity, the Contractor shall provide additional copies of the audit report at a price per copy agreed upon by the Entity and Contractor. D. The Contractor shall provide the State with a text-searchable, unlocked, and unencrypted electronic copy of the audit report at no charge. The report must be submitted to the State at the same time when the Contractor delivers the final audit report to the Entity. Any report delivered separately to management or those charged with governance identifying findings and recommendations as described in 11.C. above must be submitted electronically at the same time the audit report is submitted. The Contractor shall advise the State, at the time of submitting the electronic report, of the date the final report was delivered to the Entity, the date of the audit report, the actual number of hours the Contractor spent conducting the audit, the total audit fee billed the Entity, and whether the audit was conducted in accordance with the provisions of Uniform Guidance. E. If the Entity is a school district or associated cooperative, the Contractor shall provide at no additional charge copies of the audit report to the Office of Public Instruction, the county superintendent of schools, and the county attorney. F. If the Entity is a city or town fire department relief association disability and pension fund, the Contractor shall provide at no additional charge one copy of the audit report to the city or town clerk. G. If the audit is a single audit conducted in accordance with the provisions of Uniform Guidance, the Entity shall provide copies of the reporting package defined in Uniform Guidance and the data collection form to the federal clearinghouse designated by OMB. 14 AuditContract.11-2020 Page 8 of 13 11/2020 18. Entity Response: If not included in the audit report as provided in paragraphs 11.F. and 12.E., within 30 days after receiving the audit report, the Entity shall notify the State in writing as to what action it plans to take to correct any deficiencies or implement any recommendations identified or contained in the audit report as required by Section 2-7-515, MCA, and ARM 2.4.409. This notification must also address any findings and recommendations identified in any report to management or those charged with governance described in 11.C. above. If the audit is a single audit conducted in accordance with Uniform Guidance, this corrective action plan must also meet the requirements of Uniform Guidance. If the Entity is a school district or special education cooperative, the Entity shall also send a copy of this notification to the Office of Public Instruction. 19. Entity’s Attorney: If requested by the State, the attorney for the Entity shall report to the State on the actions taken or the proceedings instituted or to be instituted relating to violations of law and nonperformance of duty as required by Section 2-7-515(4), MCA. The attorney shall report to the State within 30 days after receiving the request. 20. Certification of Auditor Independence: The Contractor certifies that, as required by generally accepted government auditing standards, it and its principals and employees are independent in all matters regarding this engagement. This contract must not include non-audit services. The Contractor shall neither arrange for nor accept other work with the Entity that could in any way impair the Contractor's compliance with professional independence standards. If required by the State, the Contractor shall provide documentation that independence has been maintained in both mind and appearance as required by professional auditing standards. 21. Contractor and Subcontractors: The Contractor shall not assign any rights, or subcontract or delegate any duties of the contract without the Entity’s and State’s prior written consent. The Contractor is the prime contractor and is responsible, in total, for all work of any subcontractors. Any subcontractors performing audit work shall be on the Roster of Independent Auditors authorized to conduct audits of Montana local governments that is maintained by the State. The Contractor is responsible to the Entity and the State for the acts and omissions of all subcontractors or agents and of persons directly or indirectly employed by such subcontractors or agents. There is no contractual relationship between any subcontractor and the State. 22 State Participation in Conferences: The State may participate in all entrance and exit conferences between the Entity and Contractor, as well as all major conferences held in conjunction with the audit of the Entity. 23. Access to Records: The Contractor shall give the State and, when required by law, the Montana Legislative Audit Division, access to the Contractor's work programs, supporting working papers, time records, and all other documents relating to the audit. Access to these documents must be provided at the State's offices in Helena, Montana. Access to working papers includes the right of the State to obtain copies of working papers, as is reasonable and necessary. The Contractor shall make the work programs and supporting working papers available to the State for use by the State or other public accounting firms as directed by the State in future audits of the Entity. The Contractor shall make the audit programs and supporting working papers available to the cognizant or oversight agency for audit or its designee, federal agencies providing direct or indirect funding, or the U.S. General Accounting Office, if requested. Access to working papers includes the right of federal agencies to obtain copies of working papers, as is reasonable and necessary. The Contractor shall retain the audit report, work programs, and supporting working papers for a minimum of five years from the date of the audit report, unless the State notifies the Contractor to extend the retention period. If professional standards or other applicable laws, rules, or regulations require a longer retention period, the Contractor shall retain the above materials for that specified period. 24. State Review of Report: As provided by Section 2-7-522, MCA, the State shall review the Contractor’s audit 15 AuditContract.11-2020 Page 9 of 13 11/2020 report. If the State determines that reporting requirements have not been met, it will notify the Entity and the Contractor of the significant issues of noncompliance. The Contractor shall correct the identified deficiencies within 60 days of notification. 25. Independent Contractor: The Contractor is an independent contractor and neither its principals nor its employees are employees of the State or Entity for any purposes. 26. Workers’ Compensation: The Contractor certifies that it carries Workers’ Compensation for its employees and that it has either elected Workers’ Compensation or has an approved Independent Contractor’s Exemption covering the Contractor while performing work under this contract. (Montana Code Annotated, Title 39, Chapter 71). 27. Indemnity: The Contractor shall defend and indemnify the State and Entity, their elected and appointed officials, agents, and employees from and against all claims, causes of action, damages, liabilities, court costs and attorney fees in favor of the Contractor’s employees or third parties for bodily or personal injuries, death, or damage to property arising from the acts or omissions or alleged acts or omissions of the Contractor and/or its agents, employees, representatives, assigns, subcontractors under this contract. This defense and indemnify obligation does not apply to acts or omissions arising from the sole negligence of the State or Entity under this contract. This defense and indemnity obligation survives termination or expiration of this contract. If the Contractor is or may be obligated to pay any cost, settlement, judgment, fine, penalty, or similar award or sanction as a result of a claim, investigation, or other proceeding instituted by any third party, then to the extent that such obligation is or may be a direct or indirect result of the Entity’s intentional or knowing misrepresentation or provision to the Contractor of inaccurate or incomplete information in connection with this engagement, and not any failure on the Contractor’s part to comply with professional standards, the Entity shall defend and indemnify the Contractor against such obligations. 28. Insurance – Commercial General Liability: The Contractor shall maintain for the duration of the contract, at its cost and expense, occurrence coverage insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work by the Contractor, and/or its agents, employees, representatives, assigns, or subcontractors. The Contractor's insurance coverage shall be primary insurance for the Contractor’s negligence with respect to the State and Entity and their elected officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the State and Entity and their officers, officials, employees or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. Insurance - Professional Liability: The Contractor shall purchase and maintain occurrence coverage to cover such claims as may be caused by any act, omission, negligence of the Contractor or its officers, agents, representatives, assigns or subcontractors. If occurrence coverage is unavailable or cost-prohibitive, the state will accept ‘claims made’ coverage provided the following conditions are met: 1) the commencement date of the contract must not fall outside the effective date of insurance coverage and it will be the retroactive date for insurance coverage in future years, and 2) the claims made policy must have a three-year tail for claims that are made (filed) after the cancellation or expiration date of the policy. The State and Entity may require complete copies of certificates of insurance during the term of this contract. 29. Compliance with Laws: A. The Contractor shall, in performance of work under this contract, fully comply with all applicable federal, state, or local laws, rules, regulations, and executive orders including but not limited to, the 16 AuditContract.11-2020 Page 10 of 13 11/2020 Montana Human Rights Act, the Equal Pay Act of 1963, the Civil Rights Act of 1964, the Age Discrimination Act of 1975, the Americans with Disabilities Act of 1990, and Section 504 of the Rehabilitation Act of 1973. The Contractor is the employer for the purpose of providing healthcare benefits and paying any applicable penalties, fees and taxes under the Patient Protection and Affordable Care Act [P.l. 111-148, 124 Stat. 119]. Any subcontracting by the Contractor subjects subcontractors to the same provisions. B. In accordance with 49-3-207, MCA, and Executive Order No. 04-2016 the Contractor agrees that the hiring of persons to perform this contract will be made on the basis of merit and qualifications and there will be no discrimination based on race, color, sex, pregnancy, childbirth or medical conditions related to pregnancy or childbirth, political or religious affiliation or ideas, culture, creed, social origin or condition, genetic information, sexual orientation, gender identity or expression, national origin, ancestry, age, disability, military service or veteran status, or marital status by the persons performing this contract. 30. Work Accommodations: The Entity shall provide the Contractor with reasonable space in which to conduct the audit and shall respond promptly to requests for information as well as for all necessary books and records. Support for clerical, equipment, reproduction services shall be agreed upon by the Entity and the Contractor as specified in Appendices A, B and C. 31. Termination before Audit Commences: Before the commencement of the audit, either the Contractor or the Entity, with the State’s consent, or the State alone, may terminate this contract for cause if another party has breached a material term or condition of this contract or violated an applicable law or regulation. The non- breaching party shall provide the other party written notice of the breach and allow 20 days to remedy the breach. The Contractor and the Entity may agree to terminate this contract without cause before the commencement of the audit. If such a termination occurs, the State shall consent to the termination upon written notification by the Contractor and the Entity of their agreement to terminate this contract. The State, however, will not consent to the cancellation of an audit contract for the sole purpose of allowing the Contractor and Entity to then enter into a new contract that extends the number of fiscal years to be audited by the Contractor. Unless there are extenuating circumstances, the existing audit contract must be completed first. This provision does not prohibit the cancellation of a contract for the purpose of replacing an annual audit with a biennial audit. 32. Termination after Audit Commences: After the audit has commenced, but before the audit report has been issued, either the Contractor or the Entity, with the State’s consent, or the State alone, may terminate this contract for cause if another party has breached a material term or condition of this contract or violated an applicable law or regulation. The non-breaching party shall provide the other party written notice of the breach and allow 20 days to remedy the breach. If the Contractor is the breaching party and fails to remedy the breach, the Contractor is not entitled to the fee set out in this contract. This is the Entity’s and the State’s sole remedy. If the Entity is the breaching party, the Entity shall pay the Contractor a pro rata portion of the fee set out in this contract, based on the percentage of work completed at the time of termination. This is the Contractor’s sole remedy. The Contractor and the Entity may agree to terminate this contract without cause after the audit has commenced but before the audit report has been issued. If such a termination occurs, the State shall consent to the termination upon written notification by the Contractor and the Entity of their agreement to terminate this contract. 17 AuditContract.11-2020 Page 11 of 13 11/2020 33. Contractor Compliance with CPE and Quality Control Review: The Contractor certifies compliance with the continuing professional education requirements and the external quality control review requirements as set out in Government Auditing Standards, as established by the Comptroller General of the United States. The State may require the Contractor to provide evidence that it has met the above requirements. 34. Single Audit Act Certification: If the audit is required to meet the requirements of the Single Audit Act of 1984, as amended, and Uniform Guidance, the Contractor certifies that neither it nor any of its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from performing audits by any Federal department or agency. 35. Time is of the Essence: Time is of the essence regarding all provisions of this contract. 36. Governing Law and Venue: This contract is governed by the laws of Montana. The parties agree that any litigation concerning this contract in which the State is named as a party must be brought in the First Judicial District in and for the County of Lewis and Clark, State of Montana. Each party shall pay its own costs and attorney fees, except as otherwise allowed in this contract. The parties also agree that any litigation concerning this contract in which the State is not named as a party must be brought in the State of Montana Judicial District in the County in which the Entity is located. Each party shall pay its own costs and attorney fees, except as otherwise allowed in this contract. 37. Notice: All notices under this contract must be in writing and will be deemed given if delivered personally, by mail, certified, return receipt requested, or by e-mail. All notices will (a) if delivered personally, be deemed given upon delivery, (b) if delivered by mail, be deemed given upon receipt, or (c) if delivered by e-mail be deemed given upon receipt. 38. Invalid Provision: If any provision of this contract is held to be illegal or unenforceable and the parties’ rights or obligations will not be materially and adversely affected, such provision will be (a) severed from the contract, (b) the contract will be interpreted as if such provision was never a part of the contract and (c) the remaining provisions will stay in effect. 39. Authority: Each party represents that the person signing this contract has the authority to bind that party. 40. Entire Agreement and Amendment: This contract and the attached Appendices contain the entire understanding and agreement of the parties. No modification or amendment of this contract is valid unless it is reduced to writing, signed by the parties, and made a part of this contract. 18 AuditContract.11-2020 Page 12 of 13 11/2020 Contractor, Entity, and State have executed this Standard Audit Contract on the date first above written: Certified Public Accountant Eide Bailly, LLP Firm Name By: Date: Authorized Representative Governmental Entity City of Bozeman, Montana Entity Name By: Date: Authorized Representative Montana Department of Administration, Local Government Services By: Date: Approved By 19 AuditContract.11-2020 Page A1 11/2020 APPENDIX A Initial or Sole Audit under this Contract GOVERNMENTAL ENTITY (ENTITY): City of Bozeman, Montana 406-582-2335 Address: 121 N. Rouse Ave Telephone: (Street Address or P.O. Box) Bozeman , MT 59715 (City/Town) (Zip Code) Aaron Funk; afunk@bozeman.net Contact Person(s) and E-Mail Address(es) PUBLIC ACCOUNTANT/ACCOUNTING FIRM (CONTRACTOR): Eide Bailly LLP 303-459-6758 Address: 7001 E. Belleview Ave., Ste 700 Telephone: (Street Address or P.O. Box) Denver , CO 80237 (City/Town) (Zip Code) Paul Kane; pkane@eidebailly.com Contact Person(s) and E-Mail Address(es) 1. Audit Period and Dates of Engagement: A. This audit will cover the fiscal year(s) ending June 30 , 2023 (and ). (Month & Day) (Year) (Year) B. Date to commence audit work: September 2023 C. Date to submit final audit report to Entity and State: December 2023 2. Time and Price for Engagement: A. Estimated total hours - 700 B. Price for audit personnel $ 89,000 Price for Travel $ 5,000 Price for typing, clerical and report preparation $ 31,500 Total price for this engagement $ 125,500 3. The reporting entity contains the following discretely presented component units:N/A 20 AuditContract.11-2020 Page A2 11/2020 4. Date Annual Financial Report or a trial balance will be available: September 2023 5. Number of copies of audit report Contractor will provide to Entity: _PDF’s Only_ 6. The Entity will provide clerical, equipment, and photocopying or reproduction services to the Contractor as follows: The City will provide access to copies electronically. 7. The audit scope with regard to federal financial assistance received by the Entity for the above fiscal year(s) will be as indicated below:  The audit will be a single audit conducted in accordance with the provisions of Uniform Guidance because the Entity expended a total amount of federal awards equal to or in excess of $750,000 during the fiscal year(s), or such other dollar amount ($____________) that is effective for the fiscal year(s) being audited. OR  The audit will not be a single audit conducted in accordance with the provisions of Uniform Guidance and will not include audit coverage of any federal financial assistance in accordance with requirements of that federal regulation, because the Entity expended a total amount of federal awards of less than $750,000 during the fiscal year(s), or such other dollar amount ($____________) that is effective for the fiscal year(s) being audited. Certified Public Accountant Eide Bailly LLP Firm Name By: Date: Authorized Representative Governmental Entity City of Bozeman, Montana Entity Name By: Date: Authorized Representative Montana Department of Administration, Local Government Services By: Date: Approved By 21 AuditContract.11-2020 Page B1 11/2020 APPENDIX B Subsequent Audit under this Contract GOVERNMENTAL ENTITY (ENTITY): City of Bozeman, Montana 406-582-2335 Address: 121 N. Rouse Ave Telephone: (Street Address or P.O. Box) Bozeman , MT 59715 (City/Town) (Zip Code) Aaron Funk; afunk@bozeman.net Contact Person(s) and E-Mail Address(es) PUBLIC ACCOUNTANT/ACCOUNTING FIRM (CONTRACTOR): Eide Bailly LLP 303-459-6758 Address: 7001 E. Belleview Ave., Ste. 700 Telephone: (Street Address or P.O. Box) Denver , CO 80237 (City/Town) (Zip Code) Paul Kane; pkane@eidebailly.com Contact Person(s) and E-Mail Address(es) 1. Audit Period and Dates of Engagement: A. This audit will cover the fiscal year(s) ending June 30 , 2024 (and ). (Month & Day) (Year) (Year) B. Date to commence audit work: September 2024 C. Date to submit final audit report to Entity and State: December 2024 2. Time and Price for Engagement: A. Estimated total hours - 700 B. Price for audit personnel $ 95,000 Price for Travel 5,000 Price for typing, clerical and report preparation Total price for this engagement $ 100,000 3. The reporting entity contains the following discretely presented component units:N/A 22 AuditContract.11-2020 Page B2 11/2020 4. Date Annual Financial Report or a trial balance will be available: September 2024 5. Number of copies of audit report Contractor will provide to Entity: PDF’s Only_ 6. The Entity will provide clerical, equipment, and photocopying or reproduction services to the Contractor as follows: The City will provide access to copies electronically. 7. The audit scope with regard to federal financial assistance received by the Entity for the above fiscal year(s) will be as indicated below:  The audit will be a single audit conducted in accordance with the provisions of Uniform Guidance because the Entity expended a total amount of federal awards equal to or in excess of $750,000 during the fiscal year(s), or such other dollar amount ($____________) that is effective for the fiscal year(s) being audited. OR  The audit will not be a single audit conducted in accordance with the provisions of Uniform Guidance and will not include audit coverage of any federal financial assistance in accordance with requirements of that federal regulation, because the Entity expended a total amount of federal awards of less than $750,000 during the fiscal year(s), or such other dollar amount ($____________) that is effective for the fiscal year(s) being audited. Certified Public Accountant Eide Bailly LLP Firm Name By: Date: Authorized Representative Governmental Entity City of Bozeman, Montana Entity Name By: Date: Authorized Representative Montana Department of Administration, Local Government Services By: Date: Approved By 23 AuditContract.11-2020 Page C1 11/2020 APPENDIX C Subsequent Audit under this Contract GOVERNMENTAL ENTITY (ENTITY): City of Bozeman, Montana 406-582-2335 Address: 121 N. Rouse Ave Telephone: (Street Address or P.O. Box) Bozeman , MT 59715 (City/Town) (Zip Code) Aaron Funk; afunk@bozeman.net Contact Person(s) and E-Mail Address(es) PUBLIC ACCOUNTANT/ACCOUNTING FIRM (CONTRACTOR) : Eide Bailly LLP 303-459-6758 Address: 7001 E. Belleview Ave., Ste. 700 Telephone: (Street Address or P.O. Box) Denver , CO 80237 (City/Town) (Zip Code) Paul Kane; pkane@eidebailly.com Contact Person(s) and E-Mail Address(es) 1. Audit Period and Dates of Engagement: A. This audit will cover the fiscal year(s) ending June 30 , 2025 (and ). (Month & Day) (Year) (Year) B. Date to commence audit work: September 2025 C. Date to submit final audit report to Entity and State: December 2025 2. Time and Price for Engagement: A. Estimated total hours - 700 B. Price for audit personnel $ 102,000 Price for Travel 5,000 Price for typing, clerical and report preparation Total price for this engagement $ 107,000 3. The reporting entity contains the following discretely presented component units: N/A 24 AuditContract.11-2020 Page C2 11/2020 4. Date Annual Financial Report or a trial balance will be available: September 2025 5. Number of copies of audit report Contractor will provide to Entity: PDF’s Only__ 6. The Entity will provide clerical, equipment, and photocopying or reproduction services to the Contractor as follows: The City will provide access to copies electronically. 7. The audit scope with regard to federal financial assistance received by the Entity for the above fiscal year(s) will be as indicated below:  The audit will be a single audit conducted in accordance with the provisions of Uniform Guidance because the Entity expended a total amount of federal awards equal to or in excess of $750,000 during the fiscal year(s), or such other dollar amount ($____________) that is effective for the fiscal year(s) being audited. OR  The audit will not be a single audit conducted in accordance with the provisions of Uniform Guidance and will not include audit coverage of any federal financial assistance in accordance with requirements of that federal regulation, because the Entity expended a total amount of federal awards of less than $750,000 during the fiscal year(s), or such other dollar amount ($____________) that is effective for the fiscal year(s) being audited. Certified Public Accountant Eide Bailly LLP Firm Name By: Date: Authorized Representative Governmental Entity City of Bozeman, Montana Entity Name By: Date: Authorized Representative Montana Department of Administration, Local Government Services By: Date: Approved By 25 Professional Services Agreement for Audit Services Page 1 of 2 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, ____________, _______________, 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. 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. 26 Professional Services Agreement for Audit Services Page 2 of 2 2. 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 27 1 June 13, 2023 Honorable Mayor and Members of City Commission City of Bozeman 121 N. Rouse Ave. City of Bozeman, MT 59715 You have requested that we audit the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Bozeman, Montana (the City) as of June 30, 2023, and for the year then ended, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. In addition, we will audit the entity’s compliance over major federal award programs for the period ended June 30, 2023. We are pleased to confirm our acceptance and our understanding of this audit engagement by means of this letter. Our audits will be conducted with the objectives of our expressing an opinion on each opinion unit and an opinion on compliance regarding the entity’s major federal award programs. The objectives of our audit of the financial statements are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the United States of America (GAAS) and in accordance with Government Auditing Standards, and/or any state or regulatory audit requirements will always detect a material misstatement when it exists. Misstatements, including omissions, can arise from fraud or error and are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. The objectives of our compliance audit are to obtain sufficient appropriate audit evidence to form an opinion and report at the level specified in the governmental audit requirement about whether the entity complied in all material respects with the applicable compliance requirements and identify audit and reporting requirements specified in the governmental audit requirement that are supplementary to GAAS and Government Auditing Standards , if any, and perform procedures to address those requirements. What inspires you, inspires us. | eidebailly.com 7001 E. Belleview Ave., Ste. 700 | Denver, CO 80237-2733 | TF 866.740.4100 | T 303.770.5700 | F 303.770.7581 | EOE 28 2 Accounting principles generally accepted in the United States of America (U.S. GAAP), as promulgated by the Governmental Accounting Standards Board (GASB), require management’s discussion and analysis and budgetary comparison information be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to the required supplementary information (RSI) in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist primarily of inquiries of management regarding their methods of measurement and presentation and comparing the information for consistency with management’s responses to our inquiries. We will not express an opinion or provide any form of assurance on the RSI. The following RSI is required by accounting principles generally accepted in the United States of America. This RSI will be subjected to certain limited procedures but will not be audited: • Schedule of Changes in Total OPEB Liability & Related Ratios • Schedule of Proportionate Share of Net Pension Liability and Schedule of Contributions • Budgetary Comparison Schedules • Note to RSI Supplementary information other than RSI will accompany the City’s basic financial statements. We will subject the following supplementary information to the auditing procedures applied in our audit of the basic financial statements and certain additional procedures, including comparing and reconciling the supplementary information to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and additional procedures in accordance with auditing standards generally accepted in the United States of America. We intend to provide an opinion on the following supplementary information in relation to the financial statements as a whole: • Combining and Individual Fund Financial Statements and Schedules - Government Funds • Combining Nonmajor Proprietary Fund Statements • Combining Internal Service Funds Statements • Combining Fiduciary Funds • Nonmajor Governmental Funds Budgetary Comparison Schedules Schedule of Expenditures of Federal Awards We will subject the schedule of expenditures of federal awards to the auditing procedures applied in our audit of the basic financial statements and certain additional procedures, including comparing and reconciling the schedule to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and additional procedures in accordance with auditing standards generally accepted in the United States of America. We intend to provide an opinion on whether the schedule of expenditures of federal awards is presented fairly in all material respects in relation to the financial statements as a whole. Also, the document we submit to you will include the following other additional information that will not be subjected to the auditing procedures applied in our audit of the financial statements: • Introductory Section • Statistical Section 29 3 Data Collection Form Prior to the completion of our engagement, we will complete the sections of the Data Collection Form that are our responsibility. The form will summarize our audit findings, amounts and conclusions. It is management’s responsibility to submit a reporting package including financial statements, schedule of expenditure of federal awards, summary schedule of prior audit findings and corrective action plan along with the Data Collection Form to the federal audit clearinghouse. The financial reporting package must be text searchable, unencrypted, and unlocked. Otherwise, the reporting package will not be accepted by the federal audit clearinghouse. We will assist you in the electronic submission and certification. You may request from us copies of our report for you to include with the reporting package submitted to pass-through entities. The Data Collection Form is required to be submitted within the earlier of 30 days after receipt of our auditors’ reports or nine months after the end of the audit period, unless specifically waived by a federal cognizant or oversight agency for audits. Data Collection Forms submitted untimely are one of the factors in assessing programs at a higher risk. Audit of the Financial Statements We will conduct our audits in accordance with GAAS, the standards appliable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States of America, the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). As part of an audit of financial statements in accordance with GAAS and in accordance with Government Auditing Standards, Uniform Guidance and/or any state or regulatory audit requirements we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. However, we will communicate to you in writing concerning any significant deficiencies or material weaknesses in internal control relevant to the audit of the financial statements that we have identified during the audit. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Conclude, based on the audit evidence obtained, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’ss ability to continue as a going concern for a reasonable period of time. Because of the inherent limitations of an audit, together with the inherent limitations of internal control, an unavoidable risk that some material misstatements or noncompliance may not be detected exists, even though the audit is properly planned and performed in accordance with GAAS and Government Auditing Standards of the Comptroller General of the United States of America. Please note that the determination of abuse is subjective, and Government Auditing Standards does not require auditors to detect abuse. 30 4 Our responsibility as auditors is limited to the period covered by our audit and does not extend to any other periods. We will issue a written report upon completion of our audit of the City’s basic financial statements. Our report will be addressed to the governing body of the City. Circumstances may arise in which our report may differ from its expected form and content based on the results of our audit. Depending on the nature of these circumstances, it may be necessary for us to modify our opinions, add an emphasis-of-matter or other-matter paragraph(s) to our auditor’s report, or if necessary, withdraw from the engagement. If our opinions on the basic financial statements are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or to issue a report as a result of this engagement. In accordance with the requirements of Government Auditing Standards, we will also issue a written report describing the scope of our testing over internal control over financial reporting and over compliance with laws, regulations, and provisions of grants and contracts, including the results of that testing. However, providing an opinion on internal control and compliance over financial reporting will not be an objective of the audit and, therefore, no such opinion will be expressed. Audit of Major Program Compliance Our audit of the City’s major federal award program(s) compliance will be conducted in accordance with the requirements of the Single Audit Act, as amended; and the Uniform Guidance and will include tests of accounting records, a determination of major programs in accordance with the Uniform Guidance, and other procedures we consider necessary to enable us to express such an opinion on major federal award program compliance and to render the required reports. We cannot provide assurance that an unmodified opinion on compliance will be expressed. Circumstances may arise in which it is necessary for us to modify our opinion or withdraw from the engagement. The Uniform Guidance requires that we also plan and perform the audit to obtain reasonable assurance about whether the material noncompliance with applicable laws and regulations, the provisions of contracts and grant agreements applicable to major federal award programs, and the applicable compliance requirements occurred, whether due to fraud or error, and express an opinion on the entity’s compliance based on the audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the entity’s compliance with the requirements of the federal programs as a whole. As part of a compliance audit in accordance with GAAS [and, if applicable, in accordance with Government Auditing Standards, and/or any state or regulatory audit requirements], we exercise professional judgment and maintain professional skepticism throughout the audit. We also identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. 31 5 Our procedures will consist of determining major federal programs and performing the applicable procedures described in the U.S. Office of Management and Budget OMB Compliance Supplement for the types of compliance requirements that could have a direct and material effect on each of the entity’s major programs, and performing such other procedures as we considers necessary in the circumstances The purpose of those procedures will be to express an opinion on the entity’s compliance with requirements applicable to each of its major programs in our report on compliance issued pursuant to the Uniform Guidance. Also, as required by the Uniform Guidance, we will obtain an understanding of the entity’s internal control over compliance relevant to the audit in order to design and perform tests of controls to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to each of the entity’s major federal award programs. Our tests will be less in scope than would be necessary to render an opinion on these controls and, accordingly, no opinion will be expressed in our report. However, we will communicate to you, regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we have identified during the audit. We will issue a report on compliance that will include an opinion or disclaimer of opinion regarding the entity’s major federal award programs, and a report on internal controls over compliance that will report any significant deficiencies and material weaknesses identified; however, such report will not express an opinion on internal control. Management Responsibilities Our audit will be conducted on the basis that management and, when appropriate, those charged with governance, acknowledge and understand that they have responsibility: 1. For the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; 2. For the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; 3. For identifying, in its accounts, all federal awards received and expended during the period and the federal programs under which they were received; 4. For maintaining records that adequately identify the source and application of funds for federally funded activities; 5. For preparing the schedule of expenditures of federal awards (including notes and noncash assistance received) in accordance with the Uniform Guidance; 6. For designing, implementing, and maintaining effective internal control over federal awards that provides reasonable assurance that the entity is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards; 7. For identifying and ensuring that the entity complies with federal laws, statutes, regulations, rules, provisions of contracts or grant agreements, and the terms and conditions of federal award programs and implementing systems designed to achieve compliance with applicable federal statutes, regulations, and the terms and conditions of federal award programs; 8. For disclosing accurately, currently, and completely, the financial results of each federal award in accordance with the requirements of the award; 9. For identifying and providing report copies of previous audits, attestation engagements, or other studies that directly relate to the objectives of the audit, including whether related recommendations have been implemented; 10. For taking prompt action when instances of noncompliance are identified; 32 6 11. For addressing the findings and recommendations of auditors, for establishing and maintaining a process to track the status of such findings and recommendations and taking corrective action on reported audit findings from prior periods and preparing a summary schedule of prior audit findings; 12. For following up and taking corrective action on current year audit findings and preparing a corrective action plan for such findings; 13. For submitting the reporting package and data collection form to the appropriate parties; 14. For making the auditor aware of any significant contractor relationships where the contractor is responsible for program compliance; 15. To provide us with: a. Access to all information of which management is aware that is relevant to the preparation and fair presentation of the financial statements including disclosures, and relevant to federal award programs, such as records, documentation, and other matters; b. Additional information that we may request from management for the purpose of the audit; and c. Unrestricted access to persons within the entity and others from whom we determine it necessary to obtain audit evidence. 16. For adjusting the financial statements to correct material misstatements and confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the current year period(s) under audit are immaterial, both individually and in the aggregate, to the financial statements as a whole; 17. For acceptance of nonattest services, including identifying the proper party to oversee nonattest work; 18. For maintaining adequate records, selecting and applying accounting principles, and safeguarding assets; 19. For informing us of any known or suspected fraud affecting the entity involving management, employees with significant role in internal control and others where fraud could have a material effect on compliance; 20. For the accuracy and completeness of all information provided; 21. For taking reasonable measures to safeguard protected personally identifiable and other sensitive information; and 22. For confirming your understanding of your responsibilities as defined in this letter to us in your management representation letter. With regard to the schedule of expenditures of federal awards referred to above, you acknowledge and understand your responsibility (a) for the preparation of the schedule of expenditures of federal awards in accordance with the Uniform Guidance, (b) to provide us with the appropriate written representations regarding the schedule of expenditures of federal awards, (c) to include our report on the schedule of expenditures of federal awards in any document that contains the schedule of expenditures of federal awards and that indicates that we have reported on such schedule, and (d) to present the schedule of expenditures of federal awards with the audited financial statements, or if the schedule will not be presented with the audited financial statements, to make the audited financial statements readily available to the intended users of the schedule of expenditures of federal awards no later than the date of issuance by you of the schedule and our report thereon. With regard to the supplementary information referred to above, you acknowledge and understand your responsibility (a) for the preparation of the supplementary information in accordance with the applicable criteria, (b) to provide us with the appropriate written representations regarding supplementary information, (c) to include our report on the supplementary information in any document that contains the supplementary information and that indicates that we have reported on such supplementary information, and (d) to present the supplementary information with the audited financial statements, or if the supplementary information will not be presented with the audited financial statements, to make the audited financial statements readily available to the intended users of the supplementary information no later than the date of issuance by you of the supplementary information and our report thereon. 33 7 As part of our audit process, we will request from management and, when appropriate, those charged with governance, written confirmation concerning representations made to us in connection with the audit. We understand that your employees will prepare all confirmations we request and will locate any documents or invoices selected by us for testing. If you intend to publish or otherwise reproduce the financial statements and make reference to our firm, you agree to provide us with printers’ proofs or masters for our review and approval before printing. You also agree to provide us with a copy of the final reproduced material for our approval before it is distributed. Nonattest Services With respect to any nonattest services we perform, we agree to perform the following: • Prepare or assist with preparing financial statements in conformity with U.S. generally accepted accounting principles based on information provided by you. We will not assume management responsibilities on behalf of the City. The City’s management understands and agrees that any advice or recommendation we may provide in connection with our audit engagement are solely to assist management in performing its responsibilities. The City’s management is responsible for (a) making all management decisions and performing all management functions; (b) assigning a competent individual to oversee the services; (c) evaluating the adequacy of the services performed; (d) evaluating and accepting responsibility for the results of the services performed; and (e) establishing and maintaining internal controls, including monitoring ongoing activities. Our responsibilities and limitations of the nonattest services are as follows: • We will perform the services in accordance with applicable professional standards. • The nonattest services are limited to the services previously outlined above. Our firm, in its sole professional judgment, reserves the right to refuse to do any procedure or take any action that could be construed as making management decisions or assuming management responsibilities. Fees and Timing Paul Kane is the engagement partner for the audit services specified in this letter. Responsibilities include supervising services performed as part of this engagement and signing or authorizing another qualified firm representative to sign the audit report. We expect to begin our audit on approximately June 1, 2023. Our fees are based on the amount of time required at various levels of responsibility, plus actual out-of-pocket expenses, including administrative charges. Invoices are payable upon presentation. We estimate that our fees for the audit will be as follows: June 30, 2023 financial statement audit $82,000 June 30, 2023 AUP $7,000 June 30, 2023 ACFR Prep $31,500 Administrative and out-of-pocket (estimated) $ 5,000 34 8 The financial statement audit fee of $82,000 includes the estimate of our single auditing procedures including testing of one major program. If additional major programs are identified, the charge will be an additional $9,500 per program. Invoices are payable upon presentation. We will notify you immediately of any circumstances we encounter that could significantly affect this initial fee estimate. Whenever possible, we will attempt to use the City’s personnel to assist in the preparation of schedules and analyses of accounts. This effort could substantially reduce our time requirements and facilitate the timely conclusion of the audit. Further, we will be available during the year to consult with you on financial management and accounting matters of a routine nature. The ability to perform and complete our engagement consistent with the estimated fee included above depends upon the quality of your underlying accounting records and the timeliness of your personnel in providing information and responding to our requests. To assist with this process, we will provide you with a Prepared-by- Client (PBC) request that identifies the information required to perform our engagement, as well as a planned timeline for the engagement. A failure to provide this information in an accurate and timely manner may result in an increase in our fees and/or a delay in the completion of our engagement. We may be requested to make certain audit documentation available to outside parties, including regulators, pursuant to authority provided by law or regulation or applicable professional standards. If requested, access to such audit documentation will be provided under the supervision of Eide Bailly LLP’s personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the outside party, who may intend, or decide, to distribute the copies of information contained therein to others, including other governmental agencies. We will be compensated for any time and expenses, including time and expenses of legal counsel, we may incur in making such audit documentation available or in conducting or responding to discovery requests or participating as a witness or otherwise in any legal, regulatory, or other proceedings as a result of our Firm’s performance of these services. You and your attorney will receive, if lawful, a copy of every subpoena we are asked to respond to on your behalf and will have the ability to control the extent of the discovery process to control the costs you may incur. Should our relationship terminate before our audit procedures are completed and a report issued, you will be billed for services to the date of termination. All bills are payable upon receipt. A service charge of 1% per month, which is an annual rate of 12%, will be added to all accounts unpaid 30 days after billing date. If collection action is necessary, expenses and reasonable attorney’s fees will be added to the amount due. Other Matters During the course of the engagement, we will only provide confidential engagement documentation to you via Eide Bailly’s secure portal or other secure methods, and request that you use the same or similar tools in providing information to us. Should you choose not to utilize secure communication applications, you acknowledge that such communication contains a risk of the information being made available to unintended third parties. Similarly, we may communicate with you or your personnel via e-mail or other electronic methods, and you acknowledge that communication in those mediums contains a risk of misdirected or intercepted communications. 35 9 Should you provide us with remote access to your information technology environment, including but not limited to your financial reporting system, you agree to (1) assign unique usernames and passwords for use by our personnel in accessing the system and to provide this information in a secure manner; (2) limit access to “read only” to prevent any unintentional deletion or alteration of your data; (3) limit access to the areas of your technology environment necessary to perform the procedures agreed upon; and (4) disable all usernames and passwords provided to us upon the completion of procedures for which access was provided. We agree to only access your technology environment to the extent necessary to perform the identified procedures. Regarding the electronic dissemination of audited financial statements, including financial statements published electronically on your website or elsewhere, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document. Professional standards prohibit us from being the sole host and/or the sole storage for your financial and non- financial data. As such, it is your responsibility to maintain your original data and records and we cannot be responsible to maintain such original information. By signing this engagement letter, you affirm that you have all the data and records required to make your books and records complete. We may use third party service providers and/or affiliated entities (including Eide Bailly Shared Services Private Limited) (collectively, “service providers”) in order to facilitate delivering our services to you. Our use of service providers may require access to client information by the service provider. We will take reasonable precautions to determine that they have the appropriate procedures in place to prevent the unauthorized release of confidential information to others. We will remain responsible for the confidentiality of client information accessed by such service provider and any work performed by such service provider. Neither of us may use or disclose the other’s confidential information for any purpose except as permitted under this engagement letter or as otherwise necessary for Eide Bailly to provide the services. Your confidential information is defined as any information you provide to us that is not available to the public. Eide Bailly’s confidential information includes our audit documentation for this engagement. Our audit documentation shall at all times remain the property of Eide Bailly LLP. The confidentiality obligations described in this paragraph shall supersede and replace any and all prior confidentiality and/or nondisclosure agreements (NDAs) between us. We agree to retain our audit documentation or work papers for a period of at least eight years from the date of our report. Further, we will be available during the year to consult with you on financial management and accounting matters of a routine nature. You agree to share all facts that may affect your financial statements, even if you first become aware of those facts after the date of the auditor’s report but before the date your financial statements are issued. At the conclusion of our audit engagement, we will communicate to management and the City Commission the following significant findings from the audit: • Our view about the qualitative aspects of the entity’s significant accounting practices; • Significant difficulties, if any, encountered during the audit; • Uncorrected misstatements, other than those we believe are trivial, if any; • Disagreements with management, if any; 36 10 • Other findings or issues, if any, arising from the audit that are, in our professional judgment, significant and relevant to those charged with governance regarding their oversight of the financial reporting process; • Material, corrected misstatements that were brought to the attention of management as a result of our audit procedures; • Representations we requested from management; • Management’s consultations with other accountants, if any; and • Significant issues, if any, arising from the audit that were discussed, or the subject of correspondence, with management. Government Auditing Standards require that we provide, upon request, a copy of our most recent external peer review report and any subsequent review reports to the party contracting for the audit. Accordingly, we will provide a copy of our most recent peer review report at your request. Eide Bailly LLP is a member of HLB International, a worldwide organization of accounting firms and business advisors, ("HLB"). Each member firm of HLB, including Eide Bailly LLP is a separate and independent legal entity and is not owned or controlled by any other member of HLB. Each member firm of HLB is solely responsible for its own acts and omissions and no other member assumes any liability for such acts or omissions. Neither Eide Bailly LLP, nor any of its affiliates, are responsible or liable for any acts or omission of HLB or any other member firm of HLB and hereby specifically disclaim any and all responsibility, even if Eide Bailly LLP, or any of its affiliates are aware of such acts or omissions of another member of HLB. Eide Bailly LLP formed The Eide Bailly Alliance Network, a network for small to mid-sized CPA firms across the nation. Each member firm of The Eide Bailly Alliance, including Eide Bailly LLP, is a separate and independent legal entity and is not owned or controlled by any other member of The Eide Bailly Alliance. Each member firm of The Eide Bailly Alliance is solely responsible for its own acts and omissions and no other member assumes any liability for such acts or omissions. Neither Eide Bailly LLP, nor any of its affiliates, are responsible or liable for any acts or omission of The Eide Bailly Alliance or any other member firm of The Eide Bailly Alliance and hereby specifically disclaim any and all responsibility, even if Eide Bailly LLP, or any of its affiliates are aware of such acts or omissions of another member of The Eide Bailly Alliance. MEDIATION Any disagreement, controversy or claim arising out of or related to any aspect of our services or relationship with you (hereafter a “Dispute”) shall, as a precondition to litigation in court, first be submitted to mediation. In mediation, the parties attempt to reach an amicable resolution of the Dispute with the aid of an impartial mediator. Mediation shall begin by service of a written demand. The mediator will be selected by mutual agreement. If we cannot agree on a mediator, one shall be appointed by the Montana Eighteenth Judicial District Court, Gallatin County, Montana. Mediation shall be conducted with the parties in person in Bozeman, Montana. Each party will bear its own costs in the mediation. The fees and expenses of the mediator will be shared equally by the parties. Neither party may commence a lawsuit until the mediator declares an impasse. 37 11 LIMITATION OF LIABILITY Eide Bailly LLP and its partners, affiliates, officers and employees (collectively “Eide Bailly”) shall not be responsible for any misstatements in your financial statements that we may fail to detect as a result of misrepresentations or concealment of information by any of your owners, directors, officers or employees. The exclusive remedy available to you for any alleged loss or damages arising from or related to Eide Bailly’s services or relationship with you shall be the right to pursue claims for actual damages that are directly caused by Eide Bailly’s breach of this agreement or Eide Bailly’s violation of applicable professional standards. In no event shall Eide Bailly’s aggregate liability to you exceed ten times fees paid under this agreement, nor shall Eide Bailly ever be liable to you for incidental, consequential, punitive or exemplary damages. Please sign and return the attached copy of this letter to indicate your acknowledgment of, and agreement with, the arrangements for our audit of the financial statements including our respective responsibilities. We appreciate the opportunity to be your certified public accountants and look forward to working with you and your staff. Respectfully, __________________________ Paul Kane, CPA Partner *************************************************************** RESPONSE: This letter correctly sets forth our understanding. Acknowledged and agreed on behalf of City of Bozeman, Montana by: Name: _______________________________________________________________ Title: ________________________________________________________________ Date: ________________________________________________________________ 38 Memorandum REPORT TO:City Commission FROM:Josh Waldo, Fire Chief SUBJECT:Ratify the City Manager's Signature on the Fiscal Year 2024 Montana State University (MSU) Fire Service Agreement MEETING DATE:July 11, 2023 AGENDA ITEM TYPE:Agreement - Agency/Non-profit RECOMMENDATION:Ratify the City Manager's Signature on the Fiscal Year 2024 Montana State University (MSU) Fire Service Agreement STRATEGIC PLAN:1.3 Public Agencies Collaboration: Foster successful collaboration with other public agencies and build on these successes. BACKGROUND:Since the mid-1980’s, Montana State University has provided support for firefighting personnel, operations and maintenance, and small equipment purchases at Fire Station 2, located at South 19th Ave. This support is in exchange for fire safety services that benefit MSU, as described in Section 2 of the agreement. This agreement is in accordance with MCA 7-11-101 “Inter-local Cooperation Act”. The agreement is updated annually to reflect current personnel and operational costs. UNRESOLVED ISSUES:None at this time ALTERNATIVES:As suggested by City Commission FISCAL EFFECTS:The general fund will receive a payment of $273,700.13 from MSU in November 2023 Attachments: MSU - City of Bozeman Fire Dept Agreement FY 24.pdf Report compiled on: June 27, 2023 39 DocuSign Envelope ID: 351D3F23-69E1-472B-90FA-054D5414108440204 DocuSign Envelope ID: 351D3F23-69E1-472B-90FA-054D5414108441205 DocuSign Envelope ID: 351D3F23-69E1-472B-90FA-054D541410846/27/2023 | 8:15 AM MDT6/28/2023 | 9:09 PM MDT6/29/2023 | 9:52 PM MDT6/30/2023 | 8:10 AM MDT42206 DocuSign Envelope ID: 351D3F23-69E1-472B-90FA-054D5414108443207 Memorandum REPORT TO:City Commission FROM:Josh Waldo, Fire Chief SUBJECT:Authorize the City Manager to Sign a Professional Services Agreement (PSA) with Locality Media, dba First Due for Fire Department Records Management Services MEETING DATE:July 11, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign professional services agreement (PSA) with Locality Media, dba First Due, for fire department records management services. STRATEGIC PLAN:3.1 Public Safety: Support high quality public safety programs, emergency preparedness, facilities, and leadership. BACKGROUND:The fire department utilizes electronic records management for the completion and holding of emergency response reports, inspection reports, inventory records, and other activities that require tracking and record keeping within the fire department. The current records management system used by the fire department has been purchased by another vendor and is being dissolved at the end of 2024. The fire department is beginning the transition to a new records management system in FY-24 and will complete the transition in FY-25 to the new system with First Due. This professional services agreement will start the transition process in 2023, with all work being completed by the end of 2024. UNRESOLVED ISSUES:None at this time. ALTERNATIVES:As suggested by City Commission FISCAL EFFECTS:Cost of this professional services agreement is $12,400 Attachments: Bozeman Fire Dept MT -Software as a Service Agreement with First Due.pdf Exhibit A First Due Agreement for Services PSA.pdf Exhibit B Cloud Services Questionnaire - First Due Completed.pdf Report compiled on: June 10, 2023 44 45 [1] Software as a Service Agreement This Software as a Service Agreement (“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 Locality Media, Inc. dba First Due, a Delaware corporation having offices at 107 7th Street, Garden City, NY 11530, hereinafter referred to as “Provider.” The City and Provider 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. Definitions. a. “Aggregated Statistics” means data and information related to the City's use of the Services that is used by Provider in an aggregate and anonymized manner, including to compile statistical and performance information related to the provision and operation of the Services. b. “Authorized User” means the City's employees, consultants, contractors, and agents (i) who are authorized by the City to access and use the Services under the rights granted to the City pursuant to this Agreement and (ii) for whom access to the Services has been purchased hereunder. c. “Confidential Information” means, subject to Montana’s Open Records Law, all written or oral information, disclosed by either Party to the other, related to the operations of either Party or a third party that has been identified as confidential or that by the nature of the information or the circumstances surrounding disclosure ought reasonably to be treated as confidential. With respect to the City, Confidential Information must also include any and all information transmitted to or stored by Provider in connection with performance of its obligations under this Agreement, including, but not limited to, personally identifiable information (“PII”) of residents, employees or people included within the City’s data, including name, address, phone number, e-mail address, date of birth, social security number, patient records, credit card information, driver’s license number, account numbers, PINs and/or passwords, any other information that could reasonably identify a person, and products, confidential intellectual property, trade secrets, third-party confidential information, and other sensitive or proprietary information, whether orally or in written, electronic, or other form or media/in written or electronic form or media, and whether or not marked, designated, or otherwise identified as “confidential.” Confidential Information does not include information that, at the time of disclosure is: (a) in the public domain; (b) known to the receiving Party at the time of disclosure; (c) rightfully obtained by the receiving Party on a non-confidential basis from a third party; or 46 [2] (d) independently developed by the receiving Party without reference to or use of the disclosing Party’s Confidential Information. d. “City's Data” means, other than Aggregated Statistics, information, data, and other content, in any form or medium, that is submitted, posted, or otherwise transmitted by or on behalf of the City or an Authorized User through the Services, including, without limitation, the City's meter data and other energy data related to the City's facilities located in the State of Montana. This information, data, and content may also include that which is considered Confidential Information. e. “Data Incident” means a breach of the City or the Provider’s security leading to the accidental or unlawful destruction, loss, alteration, unauthorized disclosure of, or access to the City’s Data through the Services licensed to the City by the Provider. f. “Documentation” means Provider’s user manuals, handbooks, and guides relating to the Services provided by Provider to the City either electronically or in hard copy form/end user documentation relating to the Services. g. “Intellectual Property Rights” or “IP Rights” means any and all rights that may exist under patent law, copyright law, publicity rights law, moral rights law, trade secret law, trademark law, unfair competition law or other similar protections, whether or not such rights are registered or perfected. h. “Provider IP” means the Services, the Documentation, and any and all intellectual property provided to the City or any Authorized User in connection with the foregoing. For the avoidance of doubt, Provider IP includes Aggregated Statistics and any information, data, or other content derived from Provider’s monitoring of the City's access to or use of the Services, but does not include the City's Data. i. “Services” means the software-as-a-service license described in the Scope of Services. See attached Exhibit A. 2. Purpose. City agrees to enter into this Agreement with Provider to perform for the City the Services described in the Scope of Services, incorporated into this Agreement and attached as Exhibit A. 3. Term and Termination. a. Term. The term of this Agreement shall be for a period of 12 months with renewals and extensions pursuant to Exhibit A, Sec. 5. b. Notice of Non-Renewal. A Party to this Agreement gives the other Party written notice of non-renewal at least sixty (60) days prior to the expiration of the then- current term (each a “Renewal Term” and together with the Initial Term, the “Term”). c. Termination. 47 [3] i. Provider may terminate this Agreement, effective on written notice to the City if the City: 1) fails to pay any amount when due hereunder, and such failure continues more than sixty (60) days after Provider’s delivery of written notice thereof; or 2) breaches any of its obligations under Paragraph 6 of this Agreement ii. Any Party to this Agreement may terminate their obligations under this Agreement, with a sixty (60) day written notice to the other Parties, if another Party materially breaches this Agreement, and such breach: 1) is incapable of cure; or 2) being capable of cure, remains uncured sixty (60) days after the non-breaching Party provides the breaching Party with written notice of such breach; or iii. Any Party to this Agreement may terminate this Agreement, effective immediately upon written notice to the other Parties, if the other Party: 1) becomes insolvent or is generally unable to pay or fails to pay its debts as they become due; 2) files or has filed against it a petition for voluntary or involuntary bankruptcy or otherwise becomes subject, voluntarily or involuntarily, to any proceeding under any domestic or foreign bankruptcy or insolvency law; 3) makes or seeks to make a general assignment for the benefit of its creditors; or 4) applies for or has appointed a receiver, trustee, custodian, or similar agent appointed by order of any court of competent jurisdiction to take charge of or sell any material portion of its property or business. d. Effect of Expiration or Termination. No expiration or termination will affect the City's obligation to pay all Fees that may have become due before such expiration or termination or entitle the City to any refund. 4. Scope of Services. Provider must perform the work and provide the services in accordance with the requirements of Exhibit A. For conflicts between this Agreement and Exhibit A, unless specifically provided otherwise, this Agreement governs. Provider agrees to be bound by its responses to the City’s Cloud Questionnaires, incorporated into and attached to this Agreement as Exhibit B and made part of this Agreement. Such responses constitute material consideration for the City to enter into this Agreement and the responses are material representations regarding the Provider’s performance. 5. Access and Use. a. Provision of Access to Services. Subject to and conditioned on the City's payment of fees and compliance with the terms and conditions of this Agreement, Provider grants the City a non-exclusive, non-transferable license to the Services during the Term. This license to the Services is solely for use by the City and its Authorized Users and must be accessed and used in accordance with the terms and conditions set forth in this Agreement. Unless otherwise agreed upon and detailed in the Scope of Services, such access and use is limited to the City's internal use. If applicable, Provider must provide to the City the necessary passwords and network links or connections to allow the City to access the Services. 48 [4] b. Documentation License. Subject to the terms and conditions contained in this Agreement, Provider grants to the City a non-exclusive, non-sublicensable, non- transferable license to use the Documentation during the Term solely for the City's internal business purposes in connection with its use of the Services. c. Designated Authorized Users. The City may designate the number of Authorized Users permitted to access the Services. d. Reservation of Rights. Provider reserves all rights not expressly granted to the City in this Agreement. Except for the limited rights and licenses expressly granted under this Agreement, nothing in this Agreement grants, by implication, waiver, estoppel, or otherwise, to the City or any third party any intellectual property rights or other right, title, or interest in or to the Provider IP. e. Suspension. Notwithstanding anything to the contrary in this Agreement, Provider may temporarily suspend the City's and any Authorized User’s access to any portion or all of the Services if: i. Provider reasonably determines 1) there is a threat or attack on any of the Provider IP; 2) the City's or any Authorized User’s use of the Provider IP disrupts or poses a security risk to the Provider IP or to any other Customer or vendor of Provider; 3) the City, or any Authorized User, are using the Provider IP for fraudulent or illegal activities; or 4) Provider’s provision of the Services to the City or any Authorized User is prohibited by applicable law; ii. any vendor of Provider has suspended or terminated Provider’s access to or use of any third-party services or products required to enable the City to access the Services; or iii. in accordance with Section 5(a)(iii) (any such suspension described in sub- section (i), (ii), or (iii), a “Service Suspension”). Provider must use commercially reasonable efforts to provide written notice within five (5) business days prior to any planned Service Suspension to the City and provide updates regarding resumption of Services following any Service Suspension. Provider must use commercially reasonable efforts to resume providing access to the Services as soon as reasonably possible after the event giving rise to the Service Suspension is cured. Provider may be subject to liability for any damage, liabilities, losses (including any loss of data or profits), or any other consequences that the City or any Authorized User may incur as a result of a Service Suspension. f. Aggregated Statistics. Notwithstanding anything to the contrary in this Agreement, Provider may monitor the City's use of the Services, and collect and compile Aggregated Statistics. As between Provider and the City, all right, title, and interest in Aggregated Statistics, and all intellectual property rights therein, belong to and are retained solely by Provider. The City acknowledges that Provider may compile Aggregated Statistics based on the City's Data input into the Services. The City agrees that Provider may: 1) make Aggregated Statistics publicly available in compliance with applicable law, 49 [5] and 2) use Aggregated Statistics to the extent and in the manner permitted under applicable law; provided that such Aggregated Statistics do not identify the City or the City's Confidential Information. 6. The City's Responsibilities. a. The City is responsible for all uses of the Services and Documentation resulting from access provided by the City, directly or indirectly. The City must use reasonable efforts to make all Authorized Users aware of this Agreement’s provisions as applicable to such Authorized User’s use of the Services, and must cause Authorized Users to comply with such provisions. b. Unless otherwise agreed, the City is responsible for creating and modifying its data into the Services, and keeping the City’s data into the Services current and accurate. c. The City must reasonably cooperate with Provider’s performance of Professional Services. The City recognizes and agrees that performance of Professional Services is contingent upon the City’s cooperation and as set forth in Paragraph 7. d. The City may test the Provider’s Services in a live production environment to ensure that it conforms to the specifications set forth in this Agreement and all Exhibits. Upon acceptance, the City must pay the Provider in accordance with the Scope of Services. See attached Exhibit A. If the City determines that the Services do not meet the specifications set forth in this Agreement and all Exhibits, upon 60 days of receiving written notice of such deficiencies, the City may terminate this Agreement if the Provider does not cure the deficiencies. 7. Provider’s Obligations. To induce the City to enter into this Agreement, Provider makes the following representations: a. Provider has familiarized itself with the nature and extent of this Agreement, all exhibits including but not limited to 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. Provider represents and warrants to the 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 must 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. 50 [6] c. Provider must ensure the Services delivered under this Agreement are adequately secure, and must provide a secure environment for all of the City’s Confidential Information, which may include, but is not limited to any hardware and software (including servers, network and data components) to be provided or used by the Provider as part of its performance under this Agreement. Provider represents that the security measures it takes in performance of its obligations under this Agreement are, and at all times will remain in compliance with all applicable laws and regulations governing Provider’s access to, use of, and handling of the City’s Data. 8. Security. Provider must provide a secure environment for all of the City’s Confidential Information and any hardware and Software (including servers, network and data components) to be provided or used by Provider as part of its performance under this Agreement. Provider represents that the security measures it takes in performance of its obligations under this Agreement are, and will at all times remain in agreement with the industry’s minimum standards. Provider’s failure to comply with the industry’s minimum standards in fulfilling its obligations under this Agreement constitutes a breach of this Agreement. Additionally, Provider must contractually require any subcontractors or agents with access to the City’s Confidential Information to adhere to such Security Best Practices. 9. Indemnity/Waiver of Claims/Insurance. For other than professional services rendered, to the fullest extent permitted by law, Provider 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 gross 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 gross negligent, reckless, or intentional misconduct of the Provider; or (ii) any gross negligent, reckless, or intentional misconduct of any of the Provider’s agents. For the professional services rendered, to the fullest extent permitted by law, Provider 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 gross negligence or intentional misconduct of the Provider or Provider’s agents or employees. Such obligations must 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). Provider’s indemnity under this Section must be without regard to and without any right to contribution from any insurance maintained by City. 51 [7] Should the City be required to bring an action against the Provider to assert its right to defense or indemnification under this Agreement or under the Provider’s applicable insurance policies required below, the City must 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 Provider 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. Provider 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 must survive termination of this Agreement and the services performed hereunder. In addition to and independent from the above, Provider must at Provider’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 Provider in this Section. The insurance coverage must not contain any exclusion for liabilities specifically assumed by the Provider in this Section. The insurance must 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. Provider must 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; • Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate; and • Cyber Liability - $1,500,000 per occurrence; $3,000,000 annual aggregate. The above amounts must be exclusive of defense costs. The City must be endorsed as an additional insured on a primary non-contributory basis on the Commercial General, Employer’s Liability, Automobile Liability, and Cyber Liability policies. The insurance and required endorsements must be in a form suitable to City and must include no less than a thirty (30) day notice of cancellation or non-renewal. Provider must notify City within two (2) business days of Provider’s receipt of notice that any required insurance coverage will be terminated or Provider’s decision to terminate any required insurance coverage for any reason. 52 [8] The City must approve all insurance coverage and endorsements prior to the Provider commencing work. 10. Audit Right. Upon written request, Provider must retain a certified public accounting firm to perform an annual audit of the Services’ data protection features and to provide a SOC 2 Type II report, pursuant to the current standards of the American Institute of Certified Public Accountants. In addition, Provider must annually conduct its own internal security audit and address security gaps. Provider must give the City a copy of the most current report from each audit conducted within five (5) business days of receiving the report. If requested by the City, Provider must, on a bi-annual basis, permit security reviews by the City on those systems storing or processing City Data, on Provider policies and procedures relating to the foregoing, including without limitation its information security programs, and permit testing of all security processes and procedures during the term, including without limitation, penetration testing. Provider or its nominee (including its accountants and auditors) may, on reasonable request, inspect and audit the City's use of the Services under this Agreement at any time during the Term. The City must make available all books, records, equipment, information, and personnel, and provide all such cooperation and assistance, as may reasonably be requested by or on behalf of Provider with respect to such audit. 11. General Use Restrictions. Copies of the Services created or transferred pursuant to this Agreement are licensed and may only be used as set forth in this Agreement. The City does not receive any rights to the Services other than those specifically granted in this Agreement and its incorporated exhibits. Other than what is expressly permitted by the terms of this Agreement, the City and its authorized users must not directly or indirectly copy or reproduce all or any part of the Services, whether electronically, mechanically or otherwise, in any form including, but not limited to, the copying of presentation, style or organization, without Provider’s prior written permission. However, notwithstanding this restriction, the City has the right to reproduce and distribute any of the Services generated from the City’s Data. Without limiting the above restriction and right, the City receives no right to and must not: a. copy, modify, create derivative works from, distribute, publicly display, or publicly perform the Application; b. sublicense or otherwise transfer any of the rights granted to it in this Agreement and the Scope of Services; c. reverse engineer, decompile, disassemble, or otherwise attempt to derive source code or other trade secrets from the Application; d. remove any proprietary notices from the Services or Documentation; or e. use the Services or Documentation in any manner or for any purpose that infringes, misappropriates, or otherwise violates any intellectual property right or other right of any person, or that violates any applicable law. 53 [9] 12. Independent Contractor Status/Labor Relations. The Parties agree that Provider is an independent contractor for purposes of this Agreement and is not considered a City employee for any purpose. Provider 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. Provider is not authorized to represent the City or otherwise bind the City in any dealings between Provider and any third parties. 13. Resources and Support. Provider must, throughout the Term, make available such resources, including Provider personnel, as are reasonably required to: a. train designated employee(s) of the City in the use of the Services as described in Exhibit A; b. support the obligations of the City provided in Paragraph 6; c. develop modifications to the Services as agreed to by the Parties in any exhibit attached to this Agreement; and d. Provider must provide technical support to the City as described in Exhibit A, Scope of Services, for the duration of this Agreement. 14. Transition Assistance. The Provider must provide transition assistance to the City when requested in writing. Upon termination of this Agreement for any reason, including but not limited to termination for cause, the Provider must assist the City in the orderly transition to a new Provider. The City must have access to the Provider’s system and the Provider’s support of that system for up to ninety (90) days following termination. In this instance, for up to ninety (90) days following termination, the City must pay the Provider at its then-current hourly rate(s). 15. Limitation of Liability. The Provider's liability for contract damages is limited to direct damages. Damages caused by injury to persons or tangible property, or arising from any Provider indemnification under this Agreement, are not subject to a cap on the amount of damages. 16. Fees and Payment. Fees. The City must pay Provider the fees and make all payments as set forth in the Scope of Services, without offset or deduction. See attached Exhibit A. Any alteration or deviation from the described Services that involves additional costs above the Agreement amount will be performed by Provider only upon receiving a written request from the City. Any alteration or deviation from the Services will become an additional charge over and above the amount listed in the Scope of Services. The City must agree in writing before Provider bills for any additional charges. All Fees and other amounts payable by the City under this Agreement are exclusive of taxes and similar assessments. The City is responsible for all sales, use, and excise taxes, and any other similar taxes, duties, and charges of any kind imposed by any federal, state, or local governmental or regulatory authority on any amounts payable by the City as set forth in this Agreement, other than any taxes imposed on Provider’s income. 54 [10] 17. Confidential Information. a. From time to time during the Term, a Party to this Agreement may disclose or make available to the other Party Confidential Information, as defined in Section 1 of this Agreement, about its business affairs. The receiving Party must not disclose the disclosing Party’s Confidential Information to any person or entity, except to the receiving Party’s Authorized Users who have a need to know the Confidential Information for the receiving Party to exercise its rights or perform its obligations established in this Agreement. b. Notwithstanding the foregoing, each Party may disclose Confidential Information to the limited extent required: i. in order to comply with the order of a court or other governmental body, or as otherwise necessary to comply with applicable law, provided that the Party making the disclosure pursuant to the order must first have given written notice to the other Party; ii. to establish a Party’s rights under this Agreement, including to make required court filings; or iii. to any Authorized User who may need to access Confidential Information in order to facilitate or execute the purpose of this Agreement. c. Unless otherwise required by law, each Party must not disclose Confidential Information to any other third party not otherwise identified in this agreement without the other Party’s prior written consent. Each Party’s obligations of non- disclosure with regard to Confidential Information are effective as of the Effective Date, and survive this Agreement and do not terminate. However, with respect to any Confidential Information that constitutes a trade secret (as determined under applicable law), such obligations of non-disclosure will survive the termination or expiration of this Agreement for as long as such Confidential Information remains subject to trade secret protection under applicable law. d. Each Party must protect Confidential Information with the same degree of care it uses to protect its own Confidential Information with of similar nature and importance, but with no less than reasonable care. Each Party agrees to promptly notify the other Party if there is a misuse or misappropriation of Confidential Information. 18. Intellectual Property Ownership; Feedback. a. Provider IP. The City acknowledges that, as between the City and Provider, Provider owns all right, title, and interest, including all intellectual property rights, in and to the Provider IP. b. The City's Data. Provider acknowledges that, as between Provider and the City, the City owns all right, title, and interest, including all intellectual property rights, in 55 [11] and to the City's Data. The City grants to Provider a non-exclusive, royalty-free, worldwide license to reproduce, distribute, and otherwise use and display the City's Data and perform all acts with respect to the City's Data as may be necessary for Provider to provide the Services to the City. The City also grants to Provider a non- exclusive, perpetual, irrevocable, royalty-free, worldwide license to reproduce, distribute, modify, and otherwise use and display the City's Data incorporated within the Aggregated Statistics. Unless the City provides written consent, Provider must not access or use the City’s Data for any other purpose than as described in this Agreement. c. Feedback. If the City or any of its Authorized Users sends or transmits any communications or materials to Provider by mail, email, telephone, or otherwise, suggesting or recommending changes to the Provider IP, including without limitation, new features or related functionality, or any comments, questions, suggestions, or the like (“Feedback”), Provider may use the City’s Feedback irrespective of any other obligation or limitation between the Parties governing such Feedback.. 19. Data Location. Provider must not transfer the City’s Data outside of United States or the Provider’s location as identified in the first paragraph of this Agreement unless it receives the City’s prior written consent or unless the transfer is to the Provider’s data center and such transfer is necessary for the execution of the Services. 20. Access to Data. The City may access and copy any of the City’s Data in Provider’s possession at any time. Provider must reasonably facilitate such access and copying promptly after Customer’s request. In this instance, Provider may charge its reasonable standard fees for any such access and copying or for any fees related to the de-conversion of data. 21. Deletion of Data. Except as authorized by applicable law, Provider must not erase the City’s Data or any copy without the City’s prior written consent. 22. Data Incidents. Provider must implement and maintain a program for managing unauthorized disclosure of, access to, or use of the City’s Data. In case of a Data Incident, Provider must notify the City, in writing or by phone, within three (3) days of the incident. Provider must cooperate with the City and law enforcement agencies to investigate and resolve the Data Incident, including but not limited to providing reasonable assistance to the City in notifying injured third parties. In addition, if the Data Incident results from Provider’s breach of this Agreement or gross negligent or unauthorized act or omission, Provider must compensate the City for any reasonable expense related to notification of customers and provide one year of credit monitoring to any affected individual. Provider must give the City prompt access to such records related to a Data Incident. 23. Functional Warranty. Provider warrants that the Application and Services, including any modifications that are made by Provider or under Provider’s instructions do not contain any material defects, and will conform in all material respects to the specifications, functions, descriptions, standards and criteria set forth in the Agreement, its Exhibits, and the Documentation, which are all incorporated herein by reference. Provider further warrants that all 56 [12] post-Acceptance updates, alterations, or modifications to the Services will not materially diminish the features or functionality of the Application and Services. Provider must promptly correct any errors identified by the City in the Application and in any modification to the Application at no cost to the City. If, Provider is unable to correct such errors within 30 days following notification by the City, then Provider must at the City’s request accept return of the Application and return all money paid for the Application and maintenance. The City may also pursue any other remedies available to it under this Agreement or by law or equity. 24. Virus Warranty. Provider warrants that it has used commercially reasonable efforts to ensure against introduction of any virus into the City’s systems. Provider must immediately advise the City, in writing, upon reasonable suspicion or actual knowledge that the Services may contain a Virus. If a Virus is found to have been introduced into the City’s systems by the Services within 30 days after the Effective Date of this Agreement, Provider must repair or replace the Services within ten (10) business days. If Provider cannot accomplish the foregoing within such time, then the City must discontinue use of the Services, and Provider may refund all pre-paid but unused money for the Services and maintenance as set forth in the Scope of Services. See Exhibit A. Provider must use all reasonable commercial efforts, at no additional charge, to assist the City in reducing the effects of the Virus and, if the Virus causes a loss of operational efficiency or loss of data, to assist the City to the same extent to mitigate and restore such losses. In addition, Provider must indemnify, defend and hold the City harmless from any claims, suits, damages, liabilities, losses, and reasonable attorney fees resulting from any such Viruses. The limitation of liability described in Paragraph 15 does not apply to this indemnification obligation. 25. Remedy for When Services are Subject of a Claim. If any Services furnished are likely to or does become the subject of a claim of infringement of a third party’s IP Rights, then the Provider may request the City accept an alternative Service and the City may agree to one of the following alternative Services: 1) procure for the City the right to continue using the alleged infringing Services; 2) modify the Service so that it becomes non-infringing; 3) or replace it with one that is at least functionally equivalent. If the Provider is unable to any of the above three remedies, or if the use of the Services by the City is prohibited by an injunction, temporary restraining order, or other court order, the City must return the Services to the Provider within five (5) days of receiving Provider’s request in writing. The Provider must then give the City a credit equal to the amount paid to the Provider for the creation of the Services. The City is not precluded from seeking other remedies available agreed upon in this Agreement or in equity or law for any damages it may sustain due to its inability to continue using the Services. The Limitations of Liability set forth in Paragraph 15 of this Agreement does not apply to Provider’s obligations under this Section and the City’s right to seek additional remedies arising from Provider’s ‘infringement of a third party’s IP Rights. 26. Representatives and Notices. a. City’s Representative. The City’s Representative for the purpose of this Agreement must be Fire Chief Josh Waldo or such other individual as City must designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission must be directed to the City’s Representative and approvals or authorizations must be issued only by such Representative; provided, however, that 57 [13] in exigent circumstances when City’s Representative is not available, Provider 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. Provider’s Representative. The Provider’s Representative for the purpose of this Agreement must be CEO Andreas Huber or such other individual as Provider must designate in writing. Whenever direction to or communication with Provider is required by this Agreement, such direction or communication must be directed to Provider’s Representative; provided, however, that in exigent circumstances when Provider’s Representative is not available, City may direct its direction or communication to other designated Provider personnel or agents. c. Notices. All notices required by this Agreement must be in writing and must be provided to the Representatives named in this Section. Notices must 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. 27. Miscellaneous. a. Entire Agreement. This Agreement, together with any other documents incorporated herein by reference and all related Exhibits, including the Cloud Services Questions, constitutes the sole and entire agreement of the Parties with respect to the subject matter of this Agreement and supersedes all prior and contemporaneous understandings, agreements, and representations and warranties, both written and oral, with respect to such subject matter. In the event of any inconsistency between the statements made in the body of this Agreement, the related Exhibits, and any other documents incorporated herein by reference, the following order of precedence governs: 1) this Agreement, excluding its Exhibits; 2) the Exhibits to this Agreement as of the Effective Date; and 3) any other documents incorporated herein by reference. b. Permits. Provider must 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. c. Laws and Regulations. Provider must 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- 58 [14] discrimination, affirmative action, and utilization of minority and small business statutes and regulations. d. Nondiscrimination and Equal Pay. Provider agrees that all hiring by Provider of persons performing this Agreement must be on the basis of merit and qualifications. Provider will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. Provider 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. Provider must 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. Provider 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). Provider must report to the City any violations of the Montana Equal Pay Act that Provider has been found guilty of within 60 days of such finding for violations occurring during the term of this Agreement. Provider must require these nondiscrimination terms of its subcontractors providing services under this Agreement. e. Force Majeure. In no event must a Party to this Agreement be liable to another Party, or be deemed to have breached this Agreement, for any failure or delay in performing its obligations under this Agreement, if and to the extent such failure or delay is caused by any circumstances beyond one Party’s reasonable control, including but not limited to acts of God, flood, fire, earthquake, explosion, war, terrorism, invasion, riot or other civil unrest, strikes, labor stoppages or slowdowns or other industrial disturbances, or passage of law or any action taken by a governmental or public authority, including imposing an embargo. f. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training. Provider must 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. Provider acknowledges it is aware of and must 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. The City must have the right to request proof of such compliance and Provider must be obligated to furnish such proof. The Provider must be responsible for instructing and training the Provider’s employees and agents in proper and specified work methods and procedures. The 59 [15] Provider must provide continuous inspection and supervision of the work performed. The Provider is responsible for instructing its employees and agents in safe work practices. g. Modification and Assignability. This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Provider may not subcontract or assign Provider’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of the City which shall not be unreasonably withheld. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. h. Reports/Accountability/Public Information. Provider agrees to develop and/or provide documentation as requested by the City demonstrating Provider’s compliance with the requirements of this Agreement. Provider must 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 Provider pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Provider must not issue any statements, releases or information for public dissemination without prior approval of the City. i. 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. j. 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 must 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. k. Taxes. Provider is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. l. Dispute Resolution. i. Any claim, controversy, or dispute between the Parties, their agents, employees, or representatives must 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. ii. 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. 60 [16] m. Survival. Provider’s indemnification must survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. n. 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. o. Severability. If any portion of this Agreement is held to be void or unenforceable, the balance thereof must continue in effect. p. Applicable Law. The Parties agree that this Agreement is governed in all respects by the laws of the State of Montana. q. Binding Effect. This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the Parties. r. 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. s. 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. t. Counterparts. This Agreement may be executed in counterparts, which together constitute one instrument. u. 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 **** 61 [17] IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the Effective Date. Locality Media, Inc. dba First Due City of Bozeman By:_______________________________ Name: Andreas Huber Title: CEO By:_______________________________ Name: Jeff Mihelich Title: City Manager APPROVED AS TO FORM: By____________________________ Greg Sullivan, Bozeman City Attorney 62 Locality Media, Inc. Agreement Feb 2023 Page 1 of 9 AGREEMENT FOR SERVICES This Agreement for Services (this “Agreement”) dated as of July 1, 2023 (the "Effective Date") is made by and between Locality Media, Inc dba First Due a Delaware corporation, having offices at 107 7th St, Garden City, NY, 11530 ("Locality Media") and the Bozeman Fire Department located at 300 E Oak St, Bozeman, MT 59715 (the “Customer”). 1. Locality Media maintains a website through which Customer members may access Locality Media's First Due Size-Up™ Community Connect™, Mobile Responder™ and/or other software-as-a-service platforms and solutions identified in Exhibit A (collectively, the "Service") in connection with the performance of their Customer duties. Locality Media agrees to grant the Customer access to the Service pursuant to the terms and conditions set forth below and in Exhibit A, and the Customer agrees to use the Service only in strict conformity with and subject to such terms and conditions. 2. Locality Media may provide the Customer with one or more user ID’s, initial passwords, digital certificates and/or other devices (collectively, "Credentials") and/or application programming interfaces ("APIs") to access the Service. The Customer shall access the Service only by using such Credentials and APIs. The Customer authorizes Locality Media to act on any instructions Locality Media receives from users of the Service who present valid Credentials and such individuals shall be deemed authorized to act on behalf of the Customer, including, without limitation, to change such Credentials. It is the Customer’s sole responsibility to keep all Credentials and other means of access within the Customer’s direct or indirect possession or control both confidential and secure from unauthorized use. The Customer understands the utility of the First Due Size Up Service depends on the availability of data and information relating to Locations and structures in the Customer's jurisdiction, including but not limited to building system and structural information, building inspection codes and incident report data (collectively, "Location Data"). Locality Media also may process and furnish through the Service, in addition to Location Data, other data regarding residents and roadways within the Customer's jurisdiction ("Community Data"). Location Data and Community Data are referred to collectively herein as "Data". Locality Media may acquire Data from third party public and/or private sources in Locality Media's discretion. In addition, the Customer will upload to the Service or otherwise provide to Locality Media in such form and using such methods as Locality Media reasonably may require from time to time, any and all Data from the Customer's records and systems which the parties mutually designate for inclusion in the Service database. The Customer agrees not to filter or alter such records except to conform such Data to the formats reasonably required by Locality Media. Subject to any third-party license restrictions identified expressly in writing by the Customer, the Customer grants to Locality Media a perpetual, non-exclusive, worldwide, royalty-free right and license to process, use and disclose the Data furnished to Locality Media by the Customer in connection with the development, operation, and performance of Locality Media's business, including but not limited to the Service. 3. As between the parties, the Customer and its employees, contractors, members, users, agents, and representatives (collectively, "Customer Users") are solely responsible for determining whether and how to use Data accessed through the Service. The Customer acknowledges that Locality Media, through the Service, provides an interface for viewing Data compiled from the Customer and other sources over which Locality Media has no control and for which Locality Media assumes no responsibility. Locality Media makes no representations or warranties regarding any Location or structure (including but not limited to a Location's safety, construction, occupancy, materials, hazards, water supply, contents, location, surrounding structures, exposures, size, layout, compliance, condition or history) ), residents, roadways, or any actual or expected outcome from use of the Data, nor does Locality Media make any representation or warranty regarding the accuracy or reliability of the Data received by Locality Media. Locality Media provides administrative and information technology services only and does not advise, recommend, or render an opinion with respect to any information communicated through the Service and shall not be responsible for the Customer's or any third party's use of any information obtained through the Service. 63 Locality Media, Inc. Agreement Feb 2023 Page 2 of 9 4. The Customer shall obtain and maintain, at its own expense, computers, operating systems, Internet browsers, tablets, phones, telecommunications equipment, third-party application services and other equipment and software ("Equipment") required for the Customer to access and use the Service (the Service being accessible to users through standard Internet browsers subject to third party network availability and signal strength). Locality Media shall not be responsible for any problem, error or malfunction relating to the Service resulting from Customer error, data entry errors or malfeasance by the Customer or any third party, or the performance or failure of Equipment or any telecommunications service, cellular or wifi network, Internet connection, Internet service provider, or any other third- party communications provider, or any other failure or problem not attributable to Locality Media ("Technical Problems"). 5. This Agreement will be effective for an initial term of 12 months (the "Initial Term") commencing on the Effective Date. After the Initial Term, this Agreement will automatically renew for successive terms of 12 months each (a "Renewal Term"), subject to the right of either party to cancel renewal at any time upon at least 60 days' written notice. Locality Media reserves the right to increase Customer’s renewal Service fees by no more than 5% per annum, applied to the Service fees set forth in the previous term. 6. Upon termination, the Customer shall cease use of the Service and all Credentials then in the Customer’s possession or control. This Section 6 and Sections 8 through 11 and 15 through 25 hereof shall survive any termination or expiration of this Agreement. 7. The Customer agrees to pay the fees set forth in Exhibit A for use of those Service features described in Exhibit A (as available as of the Effective Date). Locality Media may charge separately for services offered from time to time that are not included in the scope of Exhibit A (such as new Service features, systems integration services and applications of the Service for new purposes), subject to the Customer’s acceptance of the terms of use and fees associated with such services. The Customer shall be responsible for the payment of all taxes associated with provision and use of the Service (other than taxes on Locality Media’s income). The Customer represents it has not received and agrees that it shall not collect any fee, payment, or remuneration of any kind from any Data provider, other municipal agency or other third party in connection with the Customer's purchase or use of the Service under this Agreement. 8. Locality Media owns and shall retain all right, title, and interest in and to the Service, all components thereof, including without limitation all related applications, APIs, user interface designs, software and source code (which shall further include without limitation any and all source code furnished by Locality Media to the Customer in connection with the delivery or performance of any services hereunder) and any and all future enhancements or modifications thereto howsoever made and all intellectual property rights therein but not Data furnished by the Customer. Except as expressly provided in this Agreement or as otherwise authorized in advance in writing by Locality Media, the Customer and Customer Users shall not copy, distribute, license, reproduce, decompile, disassemble, reverse engineer, publish, modify, or create derivative works from, the Service; provided, however, that nothing herein shall restrict the Customer’s use of the Data that the Customer has provided. 9. "Confidential Information" means any and all information disclosed by either party to the other which is marked "confidential" or "proprietary," including oral information that is designated confidential at the time of disclosure. Without limiting the foregoing, all information relating to the Service and associated software and the terms of this Agreement shall be deemed Locality Media's Confidential Information. Notwithstanding the foregoing, "Confidential Information" does not include any information that the receiving party can demonstrate (i) was known to it prior to its disclosure hereunder; (ii) is or becomes publicly known through no wrongful act of the receiving party; (iii) has been rightfully received from a third party authorized to make such disclosure without restriction; (iv) is independently developed by the receiving party, without the use of any Confidential Information of the other party; (v) has been approved for release by the disclosing party's prior written authorization; or (vi) is required to be disclosed by court order or applicable law, provided that the party required to disclose the information provides prompt advance notice thereof to the other party (except to the extent such notice is prohibited by law). For conflicts concerning “confidential Information” the Software as a Service Agreement will control. 64 Locality Media, Inc. Agreement Feb 2023 Page 3 of 9 10. Each party hereby agrees that it shall not use any Confidential Information belonging to the other party other than as expressly permitted under the terms of this Agreement or as expressly authorized in writing by the other party. Each party shall use the same degree of care to protect the other party's Confidential Information as it uses to protect its own confidential information of like nature, but in no circumstances with less than reasonable care. Neither party shall disclose the other party's Confidential Information to any person or entity other than its employees, agents or consultants who need access thereto in order to effect the intent of this Agreement and in each case who have been advised of the confidentiality provisions of this Agreement, have been instructed to abide by such confidentiality provisions, entered into written confidentiality agreements consistent with Sections 9-11 or otherwise are bound under substantially similar confidentiality restrictions. 11. Each party acknowledges and agrees that it has been advised that the use or disclosure of the other's Confidential Information inconsistent with this Agreement may cause special, unique, unusual, extraordinary, and irreparable harm to the other party, the extent of which may be difficult to ascertain. Accordingly, each party agrees that, in addition to any other remedies to which the nonbreaching party may be legally entitled, the nonbreaching party shall have the right to seek to obtain immediate injunctive relief, without the necessity of posting a bond, in the event of a breach of Section 9 or 10 by the other party, any of its employees, agents or consultants. 12. LOCALITY MEDIA REPRESENTS AND WARRANTS THAT IT SHALL USE COMMERCIALLY REASONABLE EFFORTS TO PROVIDE THE SERVICE WITHOUT INTRODUCING ERRORS OR OTHERWISE CORRUPTING DATA AS SUBMITTED BY THE CUSTOMER. OTHER THAN THE FOREGOING, THE SERVICE, INCLUDING ALL DATA, IS PROVIDED ON AN "AS IS" AND "AS AVAILABLE" BASIS WITHOUT WARRANTY OF ANY KIND. WITHOUT LIMITING THE FOREGOING, LOCALITY MEDIA MAKES NO WARRANTY THAT THE SERVICE WILL BE UNINTERRUPTED, ERROR FREE OR AVAILABLE AT ALL TIMES, NOR DOES LOCALITY MEDIA WARRANT THAT THE SERVICE WILL REMAIN COMPATIBLE WITH, OR OPERATE WITHOUT INTERRUPTION ON, ANY EQUIPMENT OF THE CUSTOMER OR CUSTOMER USERS. 13. EXCEPT AS SET FORTH ABOVE IN SECTION 12, LOCALITY MEDIA MAKES AND THE CUSTOMER RECEIVES NO WARRANTIES, WHETHER EXPRESS, IMPLIED, OR STATUTORY REGARDING OR RELATING TO THE SUBJECT MATTER HEREOF. LOCALITY MEDIA SPECIFICALLY DISCLAIMS, TO THE FULLEST EXTENT PERMITTED BY LAW, ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT WITH RESPECT TO THE SUBJECT MATTER HEREOF, INCLUDING WITHOUT LIMITATION THE SERVICE. 14. The Customer represents and warrants that the Customer is authorized and has all rights necessary to enter into this Agreement, to provide the Data furnished by the Customer to Locality Media, and to use the Service and Data, and Customer will only use the Service and Data, as permitted under this Agreement and in accordance with the laws, regulations, and any third-party agreements applicable to the Customer and Customer Users. Without limiting the generality of the foregoing, Customer shall not cause or permit any Data to be uploaded to the Service or used in connection with the Service in any manner that would violate any third-party intellectual property rights or license between Customer and any third party. Customer agrees not to use or permit the use of the Service and Data in connection with any public or private enterprise other than operation and performance of the Customer's functions and services. In addition, the Customer and the Customer Users shall not copy, distribute, license, reproduce, publish, modify, or otherwise use any Personally Identifiable Information (PII) contained within the Data accessed through the Service for any purpose other than to lawfully carry out the services and duties of the Customer. The Customer shall remain responsible for the performance, acts and omissions of each Customer User as if such activities had been performed by the Customer. 15. Locality Media will indemnify, defend and hold harmless the Customer from and against any and all damages, liabilities, losses, costs and expenses (including, but not limited to, reasonable attorneys' fees) (collectively, "Losses") resulting from any third-party claim, suit, action, investigation or proceeding (each, an "Action") brought against the Customer based on the infringement by Locality Media of any third-party issued patent, copyright or registered trademark, except to the extent such Action is based on Data furnished from the Customer, the Customer’s breach of any third party agreement, or any combination or integration of the Service with any Customer- or third-party property, method or system. For conflicts between this section and the Software as a Service Agreement, the Software as a Service Agreement controls. 16. Reserved. 65 Locality Media, Inc. Agreement Feb 2023 Page 4 of 9 17. Such indemnification under Sections 15 will be provided only on the conditions that: (a) the indemnifying party is given written notice reasonably promptly after the indemnified party receives notice of such Action; (b) the indemnifying party has sole control of the defense and all related settlement negotiations, provided any settlement that would impose any monetary or injunctive obligation upon the indemnified party shall be subject to such party’s prior written approval; and (c) the indemnified party provides assistance, information and authority as reasonably required by the indemnifying party. 18. EXCEPT FOR ITS INDEMNIFICATION AND INSURANCE OBLIGATIONS IN SECTION 15 AND THE SOFTWARE AS A SERVICE AGREEMENT SECTION 9, AND EXCEPT FOR CLAIMS OF GROSS NEGLIGENCE, WILLFUL MISCONDUCT OR FRAUD, LOCALITY MEDIA SHALL NOT BE LIABLE TO THE CUSTOMER OR CUSTOMER USERS FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR EXEMPLARY DAMAGES ARISING FROM OR RELATING TO THIS AGREEMENT. . EXCEPT FOR ITS INDEMNIFICATION AND INSURANCE OBLIGATIONS IN SECTION 15 AND THE SOFTWARE AS A SERVICE AGREEMENT SECTION 9, AND EXCEPT FOR CLAIMS OF GROSS NEGLIGENCE, WILLFUL MISCONDUCT OR FRAUD, LOCALITY MEDIA SHALL NOT BE LIABLE TO THE CUSTOMER OR CUSTOMER USERS FOR ANY DAMAGES IN CONNECTION WITH THIS AGREEMENT IN EXCESS OF $100,000. 19. All notices, requests, demands, or consents under this Agreement must be in writing, and be delivered personally, by email or facsimile followed by written confirmation, or by internationally recognized courier service to the addresses of the parties set forth in this Agreement. 20. Except as otherwise provided below, neither party may assign this Agreement or any rights or obligations hereunder without the prior written consent of the other party. Locality Media may assign this Agreement or any rights or obligations hereunder to any Locality Media affiliate or in connection with the merger or acquisition of Locality Media or the sale of all or substantially all of its assets related to this Agreement, without such consent. This Agreement shall be binding upon and inure to the benefit of the parties, their respective successors and permitted assigns. 21. This Agreement shall be governed by and construed in accordance with the laws of the State of Montana. 22. Any modification, amendment or waiver to this Agreement shall not be effective unless in writing and signed by the party to be charged. No failure or delay by either party in exercising any right, power, or remedy hereunder shall operate as a waiver of such right, power, or remedy. 23. The parties are independent contractors with respect to each other, and neither shall be deemed an employee, agent, partner, or legal representative of the other for any purpose or shall have any authority to create any obligation on behalf of the other. Neither party intends to grant any third-party beneficiary rights as a result of this Agreement. 24. Any delay in or failure of performance by either party under this Agreement will not be considered a breach and will be excused to the extent caused by any event beyond the reasonable control of such party including, but not limited to, acts of God, acts of civil or military authorities, strikes or other labor disputes, fires, interruptions in telecommunications or Internet or network provider services, power outages, and governmental restrictions. 66 Locality Media, Inc. Agreement Feb 2023 Page 5 of 9 25. Agreement Billing Information a. Accounts Payable Contact Name: Email: Phone: b. Tax Exempt (Yes/No) If Yes, please email a copy of the Exempt Certificate to accounting@firstdue.com. c. Purchase Order Required (Yes/No) If Yes, return a copy of the Purchase Order with the signed agreement or email a copy to accounting@firstdue.com. LOCALITY MEDIA, INC. Bozeman Fire Department By: By: Name: Andreas Huber Name: Title: CEO Title: Date: Date: 67 Locality Media, Inc. Agreement Feb 2023 Page 6 of 9 Locality Media, Inc. dba First Due 107 Seventh St Garden City, NY 11530, United States Phone: +1 (516) 874-2258 Website: https://www.firstdue.com/ Exhibit A - Quote Prepared By: Justin Kelly Valid Until: August 31, 2023 Quote Number: 1545132000152697988 BILL TO: Josh Waldo Bozeman Fire Department 300 E Oak St Bozeman, MT 59715 Account: Bozeman Fire Department Subscription Start: July 1, 2023 Initial Term: 12 months Annual Subscription: $12,400.00 Product Details Total Occupancy Management & Pre-Incident Planning Manage Occupancies, Pre-Incident Mapping, GIS data, Fire Systems, Hazardous Material, and Contacts. Responder Web Responder dashboard and Responder iOS/Android App with notifications, statusing and routing. Inspections Field Inspections, Configurable Checklists, Violation Management, Virtual Inspections, Inspections Scheduler, and Integrated Pre-Incident Planning. CAD Integration Automated importing of CAD calls via XML, Database Connector or API. Brycer Integration Integration with Brycer Online Standard Training Package Includes a one-hour planning session and up to 6 hours of webinar train-the-trainer sessions Implementation and Configuration Services Services related to configuring and customizing the First Due Platform as described in the Statement of Work. One-Time Fees Subtotal $ 0.00 Subscription Fees Subtotal $ 12,400.00 Grand Total $ 12,400.00 Statement of Work Please see attached Statement of Work detailing the Implementation, Training and Support for this Exhibit A – Quote. Terms and Conditions The above-listed Grand Total will be invoiced on or around the Subscription Start date. For subsequent annual periods, the Service fees are due and payable annually in advance. Payment Terms: Net 30 days For electronic ACH payment: JPMorgan Chase Bank | ABA Routing: 021000021 | Account #: 803527972 68 Locality Media, Inc. Agreement Feb 2023 Page 7 of 9 Locality Media, Inc. dba First Due 107 Seventh St Garden City, NY 11530, United States Phone: +1 (516) 874-2258 Website: https://www.firstdue.com/ Statement of Work For Quote Number: 1545132000152697988 Statement of Work | Bozeman Fire Department Introduction The purpose of this Statement of Work (SoW) document is to clearly define the Implementation, Training and Support. 1. Implementation: First Due works very closely with you to ensure the application is ready for go-live. During the Implementation you will be assigned a Client Success Manager and Implementation Manager who will lead you through the process. Below is a description of each component of our implementation. a) Discovery & Planning: During a project kick-off meeting we will flesh out the key components of the configuration, customer stakeholders and project timelines. After this stage we will have a clear plan to when and how your agency will be live with First Due. b) Configuration: First Due is an out-of-the box system but can be configured for your Agency’s needs. Our team will work with you to configure all the parts of the application necessary for go-live and beyond. These configuration sessions will generally occur weekly, and act as administrator training. c) Optimization: Once the account is configured, we will arrange a small end-user testing group to begin to use the application out-in-the-field. This is an iterative process in which we listen to feedback and make adjustments to the product on the fly. d) Training: Once we have sign-off the product is ready for go-live we will build the necessary training plan together, which may include train-the-trainer sessions, end user training, custom training videos/content or even onsite sessions. The training section below provides more detail on included training. e) Roll Out: After training is complete, we are ready to roll-out the platform. We will work closely with you to ensure First Due is rolled out effectively across your agency. f) Support: Once we achieve sign-off that the system is live and stable, we will transition to support (as described in the support section below). However, you will continue to have a dedicated Client Success Manager moving forward. 2. Training: Training is an integral part of any successful implementation. First Due is focused on providing your agency adequate training to ensure effective user adoption of the platform. As part of this Statement of Work, the customer will receive the purchased training as outlined in Exhibit A - Quote throughout the implementation process as outlined: 1. Webinar Administrator training during configuration sessions 2. Webinar formal Train-the-Trainer and/or End User Session(s) during the training phase 3. Access to online training videos, documents, content, and interactive knowledgebase 3. Integrations: Any scoped integrations included in this document will be described below. Any additional integration scoped at a later date will be provided in a separate SoW at that time. 69 Locality Media, Inc. Agreement Feb 2023 Page 8 of 9 4. Data Migration: First Due understands the importance of data migration to our customers and has extensive experience working to migrate historical records into the platform. First Due will use best efforts to migrate applicable data from Customer’s existing systems utilizing data migration best practices. This includes: 1. Data Migration Planning Session 2. Assistance/Guidance in extracting data from existing system/s 3. Mapping extracted data to First Due import workbooks 4. Importing of Data into First Due 5. Support: First Due provides Support as part of the base subscription. This includes: 1. Email, Phone, Ticketing System Support Channels and Live Chat 2. Dedicated Client Success Manager 3. Access to knowledge base including online training videos and FAQs 70 Locality Media, Inc. Agreement Feb 2023 Page 9 of 9 71 Cloud Services Questions 1) Service Levels: What level of service should we expect? What is the City’s recourse for excessive downtime? Refund of percentage of monthly fee? First Due Response: Locality Media Inc (First Due) will provide the service on a 24X7X365 basis with an uptime guarantee of 99.9% availability excluding scheduled maintenance. Locality Media will respond to Customer and provide Initial Responses, Temporary Resolutions and Final Resolutions in accordance with the time requirements set forth in the table below. Severity Level: Vendor’s Initial Response will be provided within: Vendor’s Temporary Resolution will be provided within: Vendor’s Final Resolution will be provided within: 1: Mission Critical – Software is down /undiagnosed but feared critical; situation may require a restore and Software use is suspended until a diagnosis is given 60 minutes from receipt of initial notice from the Customer, or discovery, of the error 24 hours from receipt of initial notice from the Customer, or discovery, of the error 2 days from receipt of initial notice from the Customer, or error discovery 2: Critical Issue – Software is not down, but operations are negatively impacted 60 minutes from receipt of initial notice from the Customer, or discovery, of the error 24 hours from receipt of initial notice from the Customer, or discovery, of the error 2 days from receipt of initial notice from the Customer, or error discovery 3: Non-Critical Issue – resolution period to be mutually agreed upon 4 hours from receipt of initial notice from the Customer, or discovery, of the error 3 days from receipt of initial notice from the Customer, or discovery, of the error 15 days from receipt of initial notice from the Customer, or error discovery We have above industry standard up time with enterprise best practice and do not offer service credits. 2) Data Ownership: Who owns the data we provide and what can be done with the data? First Due Response: Customer shall own all Customer data and upon termination or written request, Locality Media shall provide Customer data to Customer. Locality Media shall not sell Customer Data. 3) ADA Compliance: If your proposed services include websites, they must be AA compliant as defined by WCAG (Web Content Accessibility Guidelines) standards. First Due Response: Our platform is not currently ADA compliant, but we are moving towards ADA Compliance. We anticipate we can meet any ADA compliance requirements you have as part of an implementation. 4) Data Security: How secure is our data and how is it being kept secure? a. If this is a multi-tenant environment on the same hardware how is our data kept separate and secure from other customers, including any PII (Personally Identifiable Information) that may be gathered? b. If PII is gathered, is it encrypted in transit and at rest? c. If credit card transactions are occurring is your system fully PCI compliant? First Due Response: First Due is a multi-tenant, cloud-based platform, accessed via secure login. Customer data is segregated at the database level and requires login to access. All data gathered, especially PII data (for example, ePCR related data), is protected in transit and at rest. In transit, data has a minimum of TLS 1.1 72 protection. At rest, it is AES-256 protected. First Due is not a billing platform and does not have a billing module. However, we are happy to integrate with your preferred billing platform. Our system can fully integrate with several providers and meet PCI compliance requirements. 5) Data Integrity: What do you do as a vendor to ensure our data maintains its integrity? First Due Response: First Due only stores complete data. In the event of an incident, the user will receive an error message and data will be resent. 6) We require data centers to be located in the United States: What country will our data be located in? First Due Response: Yes. First Due uses AWS to house its data. All data centers we use are in the United States. 7) Responding to legal demands to disclose data: What is your process when someone subpoenas or requests our data from you as a vendor? First Due Response: All data can be exported and provided upon request. Should someone request this data, either as a customer or via legal action, First Due will review the request and required data, and provide it via CSV or ODBC file (as an example). 8) Reporting: What is your protocol for data breaches? First Due Response: First Due has extensive documentation in place for both Physical and Digital Security. First Due also uses intruder.io to scan for vulnerabilities, as well as monitor CVE databases for potential new vulnerabilities. All critical vulnerabilities are resolved within 24 hours of being identified and non-critical vulnerabilities are remediated within 30 days of discovery. In the event of a breach, we notify customers that are impacted and immediately begin procedures to assess the extent of the breach, and how it happened. Once it has been isolated and contained, we will retain an outside team to investigate the incident. 9) Disaster Recovery: What protections/protocols do you have in place to mitigate disasters? First Due Response: First Due has Disaster Recovery and Business Continuity policies in place. These policies outline the guidelines and procedures to follow. These policies ensure we have critical data backups available, that we work with AWS to ensure we have additional regions and servers available as necessary, and work directly with our customers to provide data and information as quickly and efficiently as possible. 10) Business Continuity/Exit: If you decide to bring your business to an end or we end our relationship what happens to our data? If you give us a copy of our data, what format options will there be for our data and what assistance will you provide getting our data to us? First Due Response: Upon conclusion of a contract, all data is returned to the customer. It will be returned in the form of CSV or excel files. First Due will provide any necessary assistance to get this data to you. 11) Termination rights and consequences: What is your termination policy both for you as a vendor and us as a customer? First Due Response: As noted in First Due’s Agreement for Services under Section 5: “This Agreement will be effective for an initial term of 12 months (the "Initial Term") commencing on the Effective Date. After the Initial Term, this Agreement will automatically renew for successive terms of 12 months each (a "Renewal Term"), subject to the right of either party to cancel renewal at any time upon at least 73 60 days' written notice. Either party also may terminate this Agreement immediately upon written notice if the other party: (i) becomes insolvent; (ii) becomes the subject of a petition in bankruptcy which is not withdrawn or dismissed within 60 days thereafter; (iii) makes an assignment for the benefit of creditors; or (iv) materially breaches its obligations under this Agreement and fails to cure such breach within 30 days after the non- breaching party provides written notice thereof.” Questionnaire Completed by: Justin Kelly & Ryan Singelyn Date: 04/27/2023 74 Memorandum REPORT TO:City Commission FROM:Josh Waldo, Fire Chief SUBJECT:Authorize the City Manager to Sign a Professional Services Agreement (PSA)with Center for Public Safety Excellence (CPSE) for Technical Advisory Program (TAP) Services with Fire & Emergency Services Self-Assessment MEETING DATE:July 11, 2023 AGENDA ITEM TYPE:Agreement - Legal RECOMMENDATION:Authorize the City Manager to sign professional services agreement with the Center for Public Safety Excellence (CPSE) for technical advisory program services for Fire & Emergency Services Self-Assessment. STRATEGIC PLAN:3.1 Public Safety: Support high quality public safety programs, emergency preparedness, facilities, and leadership. BACKGROUND:The fire department continues it's work toward achieving third party international accreditation. The fire department completed step 2 in the process in FY-23 with the completion of their community risk assessment / standards of cover (CRA/SOC). The next step in the accreditation process is to complete a self-assessment of the fire department and this professional services agreement will provide technical assistance in the self-assessment process from the Center for Public Safety Excellence. UNRESOLVED ISSUES:None at this time ALTERNATIVES:As suggested by the City Commission FISCAL EFFECTS:Total cost of services is $43,224 Attachments: PSA with CPSE for technical assistance with self- assessment.pdf Bozeman, MT - CPSE SAM with Site Study Proposal - 6.7.23.pdf Bozeman, MT - CPSE SAM w. SS - Statement of Work - 6.7.23.pdf Report compiled on: June 10, 2023 75 Professional Services Agreement for Center for Public Safety Excellence Technical Advisory Program Page 1 of 12 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, , , 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 day of , 202_, 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. Contractor agrees to be bound by its responses to the City’s Cloud Questions, attached to this Agreement as Exhibit B and made part of this Agreement. Such responses constitute material consideration for the City to enter into this Agreement and the responses are material representations regarding the Contractor’s performance. 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. 76 Professional Services Agreement for Center for Public Safety Excellence Technical Advisory Program Page 2 of 12 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. 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. 77 Professional Services Agreement for Center for Public Safety Excellence Technical Advisory Program Page 3 of 12 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. 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 Non 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. 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. 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 and for any claims regarding underpaid prevailing wages. 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, 78 Professional Services Agreement for Center for Public Safety Excellence Technical Advisory Program Page 4 of 12 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 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 79 Professional Services Agreement for Center for Public Safety Excellence Technical Advisory Program Page 5 of 12 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. 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. 80 Professional Services Agreement for Center for Public Safety Excellence Technical Advisory Program Page 6 of 12 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 Convenience: a. Should conditions arise which, in the opinion and discretion of the City or the Contractor, make it advisable to the other party to cease performance under this Agreement, either party may terminate this Agreement by written notice to the other party (“Notice of Termination for Convenience”) with 30 days notice. The termination shall be effective in the manner specified in the Notice of Termination for Convenience and shall be without prejudice to any claims that one party may otherwise have against the other. b. Upon receipt of the Notice of Termination for Convenience, unless otherwise directed in the Notice, the other party 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 both parties. Parties 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 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, 81 Professional Services Agreement for Center for Public Safety Excellence Technical Advisory Program Page 7 of 12 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 the Fire Chief 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 Brian Dean 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. 82 Professional Services Agreement for Center for Public Safety Excellence Technical Advisory Program Page 8 of 12 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). 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 83 Professional Services Agreement for Center for Public Safety Excellence Technical Advisory Program Page 9 of 12 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 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. 84 Professional Services Agreement for Center for Public Safety Excellence Technical Advisory Program Page 10 of 12 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. 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 85 Professional Services Agreement for Center for Public Safety Excellence Technical Advisory Program Page 11 of 12 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. 31. Extensions: this Agreement may, upon mutual agreement, be extended for a period of one year by written agreement of the Parties. In no case, however, may this Agreement run longer than June 30, 2023. 32. Force Majeure: Neither party shall not be held responsible for delay or failure to perform its obligations under this Agreement when such delay in or failure to perform is solely caused by or results from events or circumstances beyond the Party’s reasonable control, including but not limited to fire, floods, earthquakes, riot, acts of God or war, civil unrest, major weather event (e.g., tornado, blizzard, etc.), epidemics, pandemics or outbreak of communicable disease, and quarantines. Notwithstanding the above, the Parties agree to use reasonable commercial efforts to avoid or mitigate the causes to minimize the delay or failure to perform and resume work when the cause is mitigated. The Parties must provide the other with prompt written notice of any delay or failure to perform that occurs by reason of force majeure. In addition, the Party seeking relief under this Section must use all commercially reasonable efforts to complete the work. If unable to avoid, mitigate, or remedy the cause, and if the Party requesting relief under this section desires to terminate its performance, that Party must notify the other in writing no earlier than 30 (thirty) days of the Party’s intent to end the work, Nothing herein obviates the non-terminating Party from seeking reimbursement for costs or expenses from the terminating Party related to this Agreement. **** 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 CENTER FOR PUBLIC SAFETY EXCELLENCE By Jeff Mihelich, City Manager By Print Name: Print Title: 86 Professional Services Agreement for Center for Public Safety Excellence Technical Advisory Program Page 12 of 12 APPROVED AS TO FORM: By Greg Sullivan, Bozeman City Attorney 87 info@cpse.org – 703-691-4620 – www.cpse.org Self-Assessment Manual Facilitation with Site Study Proposal To Bozeman Fire Department 34 North Rouse Avenue Bozeman, Montana 59771 Josh Waldo, CFO Fire Chief June 7, 2023 88 SELF-ASSESSMENT MANUAL FACILITATION with SITE STUDY PROPOSAL Page 2 of 10 CONTENTS THE CPSE DIFFERENCE ........................................................................................................................ 3 SCOPE ......................................................................................................................................................... 3 PROJECT FRAMEWORK ........................................................................................................................ 5 PROJECT TIMELINE .............................................................................................................................. 6 DELIVERABLES ........................................................................................................................................ 7 CPSE RESOURCES .................................................................................................................................... 7 ESTIMATED FEES AND EXPENSES ..................................................................................................... 7 ASSUMPTIONS ..................................................................................... Error! Bookmark not defined. INQUIRIES ................................................................................................................................................. 8 SAMPLE STATEMENT OF WORK ....................................................................................................... 9 89 SELF-ASSESSMENT MANUAL FACILITATION with SITE STUDY PROPOSAL Page 3 of 10 THE CPSE DIFFERENCE The mission of the Center for Public Safety Excellence® is: “To lead the fire and emergency service to excellence through the continuous quality improvement process of accreditation, credentialing, and education.” By teaching, coaching, guiding, and advising, CPSE®’s Technical Advisor Program® (TAP®) strives to provide agencies the tools to internalize continuous quality improvement and thereby achieve excellence. TAP places great importance on thorough preparation for each project including: • A clear understanding of the agency’s background, goals and objectives, and the complex issues they are facing, • A work plan that is comprehensive, well designed, • Sufficient resources and a commitment to successfully complete the project within the desired time frame at a reasonable cost, and • Assignment of expert resources in project management and technical support to guide an agency as they work towards accreditation. It has been TAP’s experience that the most successful self-assessment efforts have involved members from all ranks and positions within a fire service agency. CPSE’s self-assessment model’s process focuses on identifying systems and resources available to provide emergency service, measuring the effectiveness of each service delivery program, and developing plans for continuous improvement. BENEFITS OF SELF-ASSESSMENT Fire and emergency services agencies find themselves living in a world between public service and private demand. With common goals of reducing property and life loss and promoting employee safety, the agency has to make choices. Before making choices, however, the agency must know its current status….that’s where the self-assessment provides value. Self-assessment is an excellent way of coping with the rise of performance-based budgeting. This type of budgeting requires measuring, benchmarking and analysis, all of which are encompassed within the self- assessment process. Government accountability has also been an emerging trend for the last few decades. Self-assessment provides a reliable response to increased oversight by managers and elected officials and potential criticism from the community. Perhaps the greatest benefit to accreditation is the self-assessment process. The willingness of those most familiar with the internal operations of an agency to identify strengths and weakness is often a game changer. By shifting the focus of assessing the department from an inventory-based system (e.g. number of staff, number of vehicles, or number of inspections conducted) to an organizational performance-based system (e.g. staff training levels, vehicle conditions, or resolution of issues identified during inspections), Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime. 90 SELF-ASSESSMENT MANUAL FACILITATION with SITE STUDY PROPOSAL Page 4 of 10 the agency begins to focus on outcomes rather than outputs. The ability for an agency to tell its story using empirical-based data rather than anecdotes is vital during budget requests and in anticipating and coping with change. Noted below are the benefits of conducting a self-assessment: • Raises the profile through the promotion of excellence • Encourages quality improvement • Ensures the agency has a defined mission and related objectives • Identifies areas of strengths and weaknesses • Allows for the establishment of a plan for improvement • Communicates management and leadership philosophies • Facilitates input from and builds positive relationships with labor • Encourages the development of organizational procedural documents SCOPE Most fire service agencies desire a process that allows them to identify exactly how well they are able to meet the community’s needs and expectations for emergency services delivery; however, some fire service agencies lack the dedicated resources, understanding, and/or clear direction toward accomplishing this goal. The Self-Assessment Document Facilitation process typically takes six - eight months and includes: • Customized writing instruction for all agency writers and complete orientation in the CFAI accreditation process, and • A critical review of all agency writing through shared website and web-based meetings. 91 SELF-ASSESSMENT MANUAL FACILITATION with SITE STUDY PROPOSAL Page 5 of 10 Expected outcomes include a Self-Assessment Document that will provide a description, appraisal, and plan with references as required by the 10th Edition CFAI accreditation model, as contained in the Quality Improvement for Fire and Emergency Services. Eleven categories represent the CFAI model: 1. Governance and Administration 2. Assessment and Planning 3. Goals and Objectives 4. Financial Resources 5. Community Risk Reduction Program 6. Physical Resources 7. Human Resources 8. Training and Competency 9. Essential Resources 10. External Systems Relationships 11. Health and Safety PROJECT FRAMEWORK The process of conducting a self-assessment is systematic, but also requires an understanding of the various components that drive a modern fire service agency. While no one person is likely to be an expert in all of the components assessed, each agency has members with specialized knowledge or who possess specific skills to research the information needed. The key to self-assessment is going through the process with the understanding that success is based on the ability to conduct an honest and forthright evaluation of what an agency is doing in comparison to the stated standards in the accreditation model. Those conducting a self-assessment must commit to truly assessing what is going on within the agency, even if the assessment reveals that the agency is not doing things as well as once thought. This honest and forthright evaluation is what helps agencies improve and ultimately deliver a higher-quality service to their community and making the industry better. An agency must consider and commit to this when approaching the self-assessment process. 92 SELF-ASSESSMENT MANUAL FACILITATION with SITE STUDY PROPOSAL Page 6 of 10 The chart below illustrates the general flow of events for a comprehensive self-assessment: PROJECT TIMELINE There will be three primary stages to this project. Once this proposal is accepted, a detailed Statement of Work (SOW) will be built that addresses the details for these stages, their timing, and the roles that CPSE and the agency will play in their completion. A sample SOW is provided at the end of this proposal. Once a signed professional services agreement (PSA) and a finalized SOW is received, CPSE can begin work on this project within 30 days and complete the project within 6 - 8 months. 1. Project Executive Orientation 2. CFAI Accreditation Model and Self-Assessment Instruction 3. Self-Assessment Document Preparation, Review, and Finalization 4. Site study (simulated CFAI accreditation on-site assessment) with report 93 SELF-ASSESSMENT MANUAL FACILITATION with SITE STUDY PROPOSAL Page 7 of 10 DELIVERABLES CPSE is responsible for the following deliverables: 1. Statement of work with project objectives and agreed upon timelines and fee schedule; 2. Shared web site construction and training for CPSE and agency use; 3. All necessary CFAI Model document set-up for agency use; 4. Twelve hours of on-site facilitative activity to include: a. One (1) CPSE technical advisor instructional delivery and writing activity work sessions on the CFAI Model requirements of self-assessment 5. CPSE subject matter expert feedback on all draft category documents; and 6. Facilitation of up to eleven (11) 60-minute CPSE facilitator/agency web meetings for draft document review and/or discussion, as requested by the agency. 7. Three-day self-assessment site study with a minimum of three TAP advisors. 8. One (1) digital copy of the self-assessment site study report to use as a guide as the agency considers its readiness for CFAI Candidate Agency status. CPSE Resources CPSE’s Technical Advisor Program Manager oversees every project to ensure that the end result of each project is a satisfied client whose expectations are fully met. Guiding publications and instructional workbooks will be provided for the agency’s accreditation team. Estimated Fees and Expenses CPSE has estimated the following fees and expenses for this project: The proposed cost for CPSE to facilitate the development of the Bozeman Fire Department’s Self- Assessment Manual with Site Study is $45.500.00. As the Bozeman Fire Department utilized CPSE to facilitate its community risk assessment/standards of cover, CPSE is providing a proposal quote of $43,224.00. This proposed cost includes all technical advisor time and travel expenses to facilitate the Self-Assessment Document facilitation process. The facilitation process events will be scheduled according to the agreed upon statement of work (SOW). Any additional travel requested and approved by the Bozeman Fire Department will be billed by CPSE at actual cost and is above and beyond the proposed cost above. 94 SELF-ASSESSMENT MANUAL FACILITATION with SITE STUDY PROPOSAL Page 8 of 10 Assumptions • The Bozeman Fire Department is a municipal fire service organization that protects the residents, businesses, and visitors of the City of Bozeman, Montana. • Josh Waldo, Fire Chief is the key contact for this project. • Please provide any specific procurement requirements to CPSE prior to the issue of a professional services agreement for this project work. • The purpose of CPSE’s Technical Advisor Program (TAP) is to coach, mentor, guide, and assist fire service agencies. Agency representatives will play an active role in developing their self-assessment document. • This proposal is valid for a period of sixty (60) days. • CPSE and the Bozeman Fire Department will execute a professional services agreement prior to the start of this project. • CPSE and the Bozeman Fire Department will execute a statement of work governed by the professional services agreement prior to the start of this project that will be the sole document to govern the scope, methods, terms, and deliverables of this project. INQUIRIES Please contact CPSE with any inquiries regarding this proposal: Brian R Dean, MS, CFO, EFO Technical Advisor Program Manager Office: (703) 691-4620 Direct: (703) 219-8166 Email: bdean@cpse.org 95 SELF-ASSESSMENT MANUAL FACILITATION with SITE STUDY PROPOSAL Page 9 of 10 SAMPLE STATEMENT OF WORK Contract Price: $43.224.00 Project Steps Step Details Step Timing Step Responsibility Step Billing 1. Project Acceptance • Finalized statement of work • Signed professional services agreement • Construction of updated shared web site By TBD CPSE and Bozeman Fire Department (1/12 of Contract Price) 2. Project Executive Orientation • Discussion of final SOW and identification of resources need for each step • Overview of the shared web site By TBD CPSE N/A 3. Self-Assessment Writing Team Instruction • Instruction of the CFAI Model competencies and writing requirements for agency Self-Assessment Manual TBD and TBD CPSE (3/12 of Contract Price) 4. Upload of SAM Categories 1,3, and 4 • Agency upload of Category 1 Draft • Agency upload of Category 3 Draft • Agency upload of Category 4 Draft By TBD Bozeman Fire Department N/A 5. Technical Review of Categories 1, 3, and 4 • Technical Advisor review and comment on Categories 1, 3, and 4 By TBD CPSE N/A 6. Upload of SAM Categories 9, 10, and 11 • Agency upload of Category 9 Draft • Agency upload of Category 10 Draft • Agency upload of Category 11 Draft By TBD Bozeman Fire Department N/A 7. Technical Review of Categories 9, 10, and 11 • Technical Advisor review and comment on Categories 9, 10 and 11 By TBD CPSE (2/12 of Contract Price) 8. Upload of SAM Categories 6, 7, and 8 • Agency upload of Category 6 Draft • Agency upload of Category 7 Draft • Agency upload of Category 8 Draft By TBD Bozeman Fire Department N/A 9. Technical Review of Categories 6, 7, and 8 • Technical Advisor review and comment on Categories 6, 7, and 8 By TBD CPSE N/A 10. Upload of SAM Categories 2 and 5 • Agency upload of Category 2 Draft • Agency upload of Category 5 Draft; Criteria A, B, C, D, E, F, G, H, I, (J, K, L, if applicable) By TBD Bozeman Fire Department N/A 11. Technical Review of Categories 2 and 5 • Technical Advisor review and comment on Category 2, and the Criteria of Category 5 By TBD CPSE (2/12 of Contract Price) 12. Final SAM Web Meeting (optional) • Final technical advisor review and wrap up of SAM categories and criteria • CPSE & agency exhibit preparation and site study discussion By TBD CPSE and Bozeman Fire Department N/A 96 SELF-ASSESSMENT MANUAL FACILITATION with SITE STUDY PROPOSAL Page 10 of 10 13. Self-Assessment Site Study • Site work activity by 3 technical advisors to evaluate the agency’s CFAI model work TBD through TBD CPSE (4/12 of Contract Price) 14. Self-Assessment Site Study Report • Technical advisor report and recommendations for agency to consider before becoming a CFAI candidate agency By TBD CPSE N/A 97 Appendix A: Self-Assessment Manual Facilitation with Site Study June 7, 2023 Contract Price: $43,224.00 Project Steps Step Details Step Timing Step Responsibility Step Billing 1. Project Acceptance • Finalized statement of work • Signed professional services agreement • Construction of updated shared web site By Friday, August 4, 2023 CPSE and Bozeman Fire Department $3,602.00 2. Project Executive Orientation • Discussion of final SOW and identification of resources need for each step • Overview of the shared web site By Friday, September 8, 2023 CPSE N/A 3. Self-Assessment Writing Team Instruction • Instruction of the CFAI Model competencies and writing requirements for agency Self-Assessment Manual Tuesday, October 3, 2023 and Wednesday, October 4, 2023 CPSE $10,806.00 4. Upload of SAM Categories 1,3, and 4 • Agency upload of Category 1 Draft • Agency upload of Category 3 Draft • Agency upload of Category 4 Draft By Friday, November 17, 2023 Bozeman Fire Department N/A 5. Technical Review of Categories 1, 3, and 4 • Technical Advisor review and comment on Categories 1, 3, and 4 By Friday, December 1, 2023 CPSE N/A 6. Upload of SAM Categories 9, 10, and 11 • Agency upload of Category 9 Draft • Agency upload of Category 10 Draft • Agency upload of Category 11 Draft By Friday, January 5, 2024 Bozeman Fire Department N/A 7. Technical Review of Categories 9, 10, and 11 • Technical Advisor review and comment on Categories 9, 10 and 11 By Friday, January 12, 2024 CPSE $7,204.00 8. Upload of SAM Categories 6, 7, and 8 • Agency upload of Category 6 Draft • Agency upload of Category 7 Draft • Agency upload of Category 8 Draft By Friday, February 9, 2024 Bozeman Fire Department N/A 9. Technical Review of Categories 6, 7, and 8 • Technical Advisor review and comment on Categories 6, 7, and 8 By Friday, February 16, 2024 CPSE N/A 10. Upload of SAM Categories 2 and 5 • Agency upload of Category 2 Draft • Agency upload of Category 5 Draft; Criteria A, B, C, D, E, F, G, H, I, (J, K, L, if applicable) By Friday, March 15, 2024 Bozeman Fire Department N/A 11. Technical Review of Categories 2 and 5 • Technical Advisor review and comment on Category 2, and the Criteria of Category 5 By Friday, March 22, 2024 CPSE $7,204.00 12. Final SAM Web Meeting (optional) • Final technical advisor review and wrap up of SAM categories and criteria • CPSE & agency exhibit preparation and site study discussion By Friday, March 29, 2024 CPSE and Bozeman Fire Department N/A 98 Appendix A: Self-Assessment Manual Facilitation with Site Study June 7, 2023 13. Self-Assessment Site Study • Site work activity by 3 technical advisors to evaluate the agency’s CFAI model work Monday, April 15, 2024 through Wednesday, April 17, 2024 CPSE $14,408.00 14. Self-Assessment Site Study Report • Technical advisor report and recommendations for agency to consider before becoming a CFAI candidate agency By Wednesday, April 26, 2023 CPSE N/A Acceptance: City of Bozeman, Montana Initials of Authorized Party: ____________________________ Center for Public Safety Excellence (CPSE) Initials of Authorized Party: Debbie Sobotka, COO 99 Memorandum REPORT TO:City Commission FROM:Cassandra Tozer, Human Resources Director SUBJECT:Authorize the City Manager to Sign a Professional Services Agreement with Think 2 Perform MEETING DATE:July 11, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign a professional services agreement with Think 2 Perform to provide employee coaching. STRATEGIC PLAN:7.2 Employee Excellence: Recruit, retain and value a diverse, well-trained, qualified and motivated team capable of delivering superior performance. Be accountable and expect accountability from others. Make demonstrated use of good judgement a part of the evaluation process for promotions. BACKGROUND:The City is engaging a third party consultant to provide executive-level coaching and development to City staff. UNRESOLVED ISSUES:None. ALTERNATIVES:N/A FISCAL EFFECTS:Total cost of services is $7,500, which can be absorbed in the FY24 budget. Attachments: PSA - Think2Perform.pdf Report compiled on: June 26, 2023 100 Professional Services Agreement for Think 2 Perform Page 1 of 11 PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this 19th day of May, 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, Dave Meldhal, Think 2 Perform, 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. 3. Scope of Services: Contractor will perform employee coaching and provide the services in accordance with the requirements of the Scope of Services. The final scope of services is located with the Human Resources Department. 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 (Option1: $7,500). 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. 101 Professional Services Agreement for Think 2 Perform Page 2 of 11 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 connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes. 102 Professional Services Agreement for Think 2 Perform Page 3 of 11 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 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] 103 Professional Services Agreement for Think 2 Perform Page 4 of 11 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. 8. Termination for Contractor’s Fault: 104 Professional Services Agreement for Think 2 Perform Page 5 of 11 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 Notice of Termination for City’s Convenience. 105 Professional Services Agreement for Think 2 Perform Page 6 of 11 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 Cassandra Tozer, Human Resources Director, 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 Dave Meldhal, Senior Vice President, or such other individual as Contractor shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed to Contractor’s Representative; provided, however, that in exigent circumstances when Contractor’s Representative is not available, City may direct its direction or 106 Professional Services Agreement for Think 2 Perform Page 7 of 11 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. If Contractor’s Scope of Services includes the production of digital content or documents for the City, Contractor must use both the City style guide when creating a design, and as per recommendations found in Section 508 of the Rehabilitation Act, the content must also adhere to level A and AA Success Criteria and Conformance Requirements as defined by the current Web Content Accessibility Guidelines (WCAG). The City will not accept digital content that does not comply with WCAG A and AA guidelines. If the City refuses digital content because it is non-compliant with the City style guide, Section 508 of the Rehabilitation Act, and/or WCAG, Contractor will be required to make the digital content compliant and redelivered at no additional cost to the City. 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, 107 Professional Services Agreement for Think 2 Perform Page 8 of 11 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. 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 108 Professional Services Agreement for Think 2 Perform Page 9 of 11 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 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 109 110 Professional Services Agreement for Think 2 Perform Page 11 of 11 APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney 111 Memorandum REPORT TO:City Commission FROM:Cody Flammond, Engineer II Shawn Kohtz, City Engineer Nick Ross, Director of Transportation and Engineering SUBJECT:Authorize the City Manager to Sign the Attached Task Order for Fiscal Year 2024 Remediation Systems Oversight at the Story Mill Landfill MEETING DATE:July 11, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to Sign the Attached Task Order for Fiscal Year 2024 Remediation Systems Oversight at the Story Mill Landfill. STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:The purpose of this task order is to allow Tetra Tech to continue oversight of operation, monitoring, and maintenance of the remediation systems at the Bozeman Landfill. This task order will be implemented under the Professional Services Agreement. UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the City Commission. FISCAL EFFECTS:The cost of this work will be $108,200.00. This work will be paid for using funds in the Solid Waste Landfill Post-Closure budget for Consultants and Professional Services (641-5910-448.50-10) contingent upon the City Commission approving the Fiscal Year 2024 Budget. This fund has a proposed budget of $280,000. Attachments: BLF 2023-2024 Remediation Systems Oversight Task Order Report compiled on: June 16, 2023 112 Tetra Tech 851 Bridger Drive, Suite 6; Bozeman, MT 59715 Tel 406.582.8780 Fax 406.582.8790 tetratech.com TASK ORDER 2023-2024 REMEDIATION SYSTEMS OPERATION AND MAINTENANCE BOZEMAN LANDFILL June 15, 2023 CLIENT: CONSULTANT: The City of Bozeman Tetra Tech, Inc. P.O. Box 1230 851 Bridger Drive, Ste 6 Bozeman, Montana 59711-1230 Bozeman, MT 59718 Attention: Mr. Cody Flammond Attention: Larry Cawlfield INTRODUCTION The purpose of this task order is to conduct the oversight of operation and maintenance (O&M) of the landfill gas extraction system (LFGES) and remediation systems at the Bozeman Landfill for FY 2023-2024, and to conduct design or oversight for new construction projects related to the Remediation System. The Scope of Work for operation and maintenance of the remediation system follows work activities from previous years with minor modifications. You may notice that tasks previously performed related to the leachate tracking and monitoring at the leachate UST are no longer included due to the recent addition of the drain line bypassing the UST. This task order includes the following work activities: • Task 100 – LFG Extraction System Operation & Monitoring • Task 200 – SVE and AI System Operation & Monitoring • Task 300 – Database Entry and Management • Task 400 – Project Management and Reporting SCOPE OF WORK Tetra Tech’s proposed scope of work is summarized in the following tasks: Task 100 LFG Extraction System Operation & Monitoring Tetra Tech will conduct monthly monitoring and adjustment of individual LFG extraction wells, leachate pumps, and flare/compressor system. In addition, there will be regular service events for the flare/compressor system. These service events will consist of inspection of the compressor and compressor filter replacement, flare components inspection and testing, blower re-greasing, and related activities. Also included in this task, Tetra Tech will conduct monitoring, sampling, and reporting activities of the chemical characteristics of the outflow from the lined and unlined cells. We have included costs for LFG equipment replacement in the amount of $13,000 in this task. 113 Task Order – 2023-2024 Remediation Systems Oversight Bozeman Landfill, Bozeman, Montana June 15, 2023 Page 2 of 3 TETRA TECH Task 200 SVE and AI Systems Operation & Monitoring Tetra Tech will conduct monthly monitoring and adjustment of individual SVE and AI wells. The SVE and AI wellheads (within the bolt-down steel manhole covers) will be visually inspected every six months to ensure air-tight fittings and valves. Any recommendations for modification to the operation of the AI wells will be submitted to the City. We have included costs for SVE equipment replacement in the amount of $6,000 in this task. Task 300 Database Entry and Management Information collected during monitoring and adjustment activities will be placed into a project database. This database will be maintained and updated following every monitoring event and will be used to evaluate operations and effectiveness of the systems. Task 400 Project Management and Reporting Project management will include, scheduling of personnel, monitoring equipment/meters, and activities; communication with City of Bozeman and DEQ; data management; and invoicing. Reporting will consist of a brief summary of system operation and monitoring provided to City of Bozeman on a monthly basis. PERIOD OF PERFORMANCE AND COSTS This task order will be applicable from July 1, 2023 through June 30, 2024. Estimated costs to complete the scope of work are shown below: TASK Estimated Costs Task 100 LFG Extraction System Operation & Monitoring $ 50,600 Task 200 SVE and AI Systems Operation & Monitoring $ 24,600 Task 300 Database Entry and Management $ 16,900 Task 400 Project Management and Reporting $ 16,100 TOTAL $108,200 Our costs will be invoiced on a time and materials basis. A detailed cost estimate can be provided upon request. 114 Task Order – 2023-2024 Remediation Systems Oversight Bozeman Landfill, Bozeman, Montana June 15, 2023 Page 3 of 3 TETRA TECH SPECIAL CONDITIONS: Execution of this Task Order constitutes acceptance of all terms and conditions contained in Tetra Tech’s Professional Services Agreement with the City of Bozeman, dated April 15, 2014. CLIENT: CONSULTANT: City of Bozeman Tetra Tech By: By: Printed Name: Printed Name: Larry Cawlfield Its: Its: Project Manager Date: Date: June 15, 2023 NOTICE OF CONFIDENTIALITY This Task Order (including attachments) contains information confidential to Tetra Tech, Inc., its subsidiaries, and subcontractors. It is intended only for City of Bozeman to consider Tetra Tech providing professional services at the Bozeman Landfill. Any other use is prohibited, without the prior written consent of Tetra Tech. 115 Memorandum REPORT TO:City Commission FROM:Cody Flammond, Engineer II Shawn Kohtz, City Engineer Nick Ross, Director of Transportation and Engineering SUBJECT:Authorize the City Manager to Sign the Attached Task Order for Fiscal Year 2024 Groundwater and Perimeter Methane Monitoring at the Story Mill Landfill MEETING DATE:July 11, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to Sign the Attached Task Order for Fiscal Year 2024 Groundwater and Perimeter Methane Monitoring at the Story Mill Landfill. STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:The purpose of this task order is to continue semi-annual groundwater monitoring and monthly perimeter methane monitoring through June 2024 and to evaluate performance of the remediation systems and their effect on adjacent groundwater quality. The purpose of the semi-annual groundwater monitoring and monthly perimeter methane monitoring activities is to maintain regulatory compliance. The purpose of the evaluation of the remediation systems is to document performance and effectiveness of the Air Sparging and Soil Vapor Extraction systems. This task order also includes design, bidding, and oversight for the installation of additional soil vapor extraction wells along the southern and eastern site boundaries which were identified as a need in the 2019-2021 Remediation System Evaluation Report. This task order will be implemented under the Professional Service Agreement. UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the City Commission. FISCAL EFFECTS:The cost of this work will be $130,000.00. This work will be paid for using funds in the Solid Waste Landfill Post-Closure budget for Consultants and Professional Services (641-5910-448.50-10) contingent upon the City Commission Approving the Fiscal Year 2024 Budget. This Fund has a 116 Proposed Budget of $280,000. Attachments: 2023-2024 Groundwater and Methane Monitoring Task Order Report compiled on: June 16, 2023 117 Tetra Tech 851 Bridger Drive, Suite 6; Bozeman, MT 59715 Tel 406.582.8780 Fax 406.582.8790 tetratech.com TASK ORDER 2023 - 2024 GROUNDWATER AND PERIMETER METHANE MONITORING BOZEMAN LANDFILL June 15, 2023 CLIENT: CONSULTANT: The City of Bozeman Tetra Tech, Inc. P.O. Box 1230 851 Bridger Drive, Ste 4 Bozeman, Montana 59711-1230 Bozeman, MT 59718 Attention: Mr. Cody Flammond Attention: Mr. Larry Cawlfield INTRODUCTION The purpose of this task order is to conduct tasks related to compliance groundwater monitoring and monthly perimeter methane monitoring at the Bozeman Landfill. These activities will be conducted between July 1, 2023 and June 30, 2024 and are directed at meeting DEQ Solid Waste rules and the requirements of DEQ’s June 6, 2014 letter requiring the City of Bozeman to conduct a Corrective Measures Assessment and implement remedial measures. Groundwater monitoring wells were installed, and a groundwater monitoring program was implemented beginning in 1981. Monitoring results have shown that groundwater quality has been impacted primarily by VOCs originating from the Bozeman Landfill’s unlined waste cell. Ten additional monitoring wells were installed during 2014 and two in 2021, which increased the total number of monitoring stations to 35. Monitoring results indicate a southwesterly to westerly groundwater flow. Tetrachloroethene has exceeded regulatory standards in groundwater on City of Bozeman park property adjacent to the landfill property. Groundwater monitoring will be performed during December 2023 and June 2024 for compliance with DEQ’s landfill closure requirements. This task order also covers the installation of four new SVE wells along the eastern boundary of the landfill located generally to the north of the existing SVE system and three new SVE wells along the southern boundary. SCOPE OF SERVICES This task order includes the following work activities: • Task 100 - Perimeter Methane Monitoring • Task 200 - Additional SVE well installation • Task 300 - December 2023 Compliance Groundwater Monitoring • Task 400 - June 2024 Compliance Groundwater Monitoring • Task 500 – Project Management, Statistical Analysis, and Reporting The scope of work for these tasks is outlined below. 118 Task Order – 2023 to 2024 Groundwater and Methane Monitoring and Assessment Bozeman Landfill, Bozeman, Montana June 15, 2023 Page 2 of 5 TETRA TECH Task 100 Perimeter Methane Monitoring Task 1 includes 12 months (from July 2023 through June 2024) of methane monitoring activities. Monitoring is conducted on a monthly basis in ten gas monitoring wells (designated BLG- wells). Gas collected in these wells will be monitored for methane, carbon dioxide and oxygen (with remaining balance as nitrogen) in percent by volume using City of Bozeman’s landfill gas (LFG) analyzer. Monitoring results will be entered into a database and forwarded to City of Bozeman and DEQ - Solid Waste Bureau following each monitoring event. Task 200 Additional SVE Well Installation This task will include the design, bidding, construction oversight and reporting for the installation of four new SVE wells along the eastern boundary and three new SVE wells along the southern boundary. The new eastern boundary wells were previously designed and bid during March of 2022 but the bid was excessive. It should be relatively easy to update the bidding documents and add three additional SVE wells along the southern boundary to the bid package. Hopefully by making the project a little larger we may be able to attract more bidders. It is planned to bid this project during the fall of 2023 for construction during May or June of 2024. Task 300 December 2023 Compliance Groundwater Monitoring The first groundwater monitoring event contained in this task order will be conducted in December 2023 as part of the routine groundwater monitoring at the Bozeman Landfill. Tetra Tech will perform groundwater monitoring in accordance with Tetra Tech’s Groundwater Monitoring Sampling Analysis Plan (SAP) and its revisions. Groundwater monitoring will be conducted in existing groundwater monitoring wells or stations. The scope of the monitoring event will be similar to the typical June monitoring events but will have additional analyses for metals. A monitoring, sampling, and analysis matrix for the December monitoring event is presented in the Sampling and Analysis Plan (SAP). Field parameter monitoring and collection of water samples will be conducted in 23 monitoring sites/wells as specified in the SAP. Water levels will be measured in all monitoring wells at the site. Wells will be purged prior to sampling. Field parameters including temperature, pH, dissolved oxygen, oxidation reduction potential and specific conductivity. Field parameters will generally be measured during and at the conclusion of purging the monitoring wells. Water samples will be collected and shipped to the analytical laboratory for analysis of constituents shown in the SAP. The scope of analysis includes many of the constituents listed in Appendix I, 40 CFR Part 258 (July 1, 2008) in ARM 17.50.1306. The SAP also reflects DEQ approved changes to the monitoring schedule of specified monitoring wells. Five quality assurance/quality control (QA/QC) samples will be collected and prepared during the December 2022 assessment monitoring event. These will include the following: 1) three duplicate samples collected at selected monitoring sites and submitted for analysis of all constituents included in the SAP; and 2) two trip blanks prepared by the analytical laboratory, shipped with the sample bottles, traveling with sample bottles in the field, and returned to the laboratory for analysis of VOCs. 119 Task Order – 2023 to 2024 Groundwater and Methane Monitoring and Assessment Bozeman Landfill, Bozeman, Montana June 15, 2023 Page 3 of 5 TETRA TECH Task 400 June 2024 Compliance Groundwater Monitoring A groundwater monitoring event will be conducted in June 2024 as part of the routine groundwater monitoring at the Bozeman Landfill. Tetra Tech will perform groundwater monitoring in accordance with Tetra Tech’s Groundwater Monitoring Sampling Analysis Plan or an alternative plan if one is approved. Groundwater monitoring will be conducted in existing groundwater monitoring wells or stations. A monitoring, sampling, and analysis matrix for the June 2024 monitoring event is presented in the SAP. Field parameter monitoring and collection of water samples will be conducted in 24 monitoring sites/wells as specified in the SAP. Water levels will be measured in all monitoring wells at the site. Wells will be purged prior to sampling. Field parameters including temperature, pH, specific conductivity, dissolved oxygen, and oxidation reduction potential will be measured at all monitoring wells/stations where water samples will be collected. Field parameters will generally be measured during and at the conclusion of purging the monitoring wells. Water samples will be collected and shipped to the analytical laboratory for analysis of constituents shown in the SAP. The scope of analysis includes many of the constituents listed in Appendix I, 40 CFR Part 258 (July 1, 2008) in ARM 17.50.1306. The SAP also reflects DEQ approved changes to the monitoring schedule of specified monitoring wells. Five quality assurance/quality control (QA/QC) samples will be collected and prepared during the June 2023 assessment monitoring event. These will include the following: 1) three duplicate samples collected at selected monitoring sites and submitted for analysis of all constituents included in the SAP; 2) two trip blanks prepared by the analytical laboratory, shipped with the sample bottles, traveling with sample bottles in the field, and returned to the laboratory for analysis of VOCs. Task 500 Project Management, Statistical Analysis, and Reporting Project management will include progress reporting, scheduling of personnel, supplies procurement, and other related activities; communication with City of Bozeman and DEQ; data management; administration/ invoicing; and task order preparation for 2024-2025 monitoring activities. Following the completion of each groundwater monitoring event and receipt of laboratory results, DEQ will also be notified, in a letter report, as to which monitoring stations have regulatory exceedances of VOCs, metals, and/or inorganic constituents. Groundwater monitoring data will be entered into the project database and two reports will be prepared for the June 2023 and December 2024 groundwater monitoring events. Note that the data for the June 2023 report was collected under the Task Order for the 2022/2023 period. The June 2024 data collected under this Task Order will be compiled into a report under a subsequent Task Order for the 2024/2025 period. This is necessary due to the start of the new fiscal year being just weeks after the June groundwater monitoring event is conducted, which does not provide adequate time for the report to be completed before the end of the fiscal year covered by this Task Order. A statistical analysis of analytical constituents exceeding the groundwater protection or regulatory standards will be conducted in each of these groundwater monitoring events. The statistical analysis has been and will continue to be conducted in accordance with DEQ requirements (ARM 17.50.1305 (7-11)). 120 Task Order – 2023 to 2024 Groundwater and Methane Monitoring and Assessment Bozeman Landfill, Bozeman, Montana June 15, 2023 Page 4 of 5 TETRA TECH . PERIOD OF PERFORMANCE Tetra Tech’s anticipated schedule to complete the above described activities will be the following: Deliverable Completion Date Methane Perimeter Monitoring July 1, 2023 to June 30, 2024 December Groundwater Monitoring December 31, 2023 June Groundwater Monitoring June 30, 2024 June 2023 Groundwater Monitoring Report October 30, 2023 December 2023 Groundwater Monitoring Report April 31, 2023 SVE Well Installation June 30, 2024 COSTS Estimated costs to complete the foregoing scope of services are shown below: Task Description Estimated Cost Task 100 Perimeter Methane Monitoring $7,000.00 Task 200 Additional SVE Well Installation $60,000.00 Task 300 December 2023 Groundwater Monitoring $22,000.00 Task 400 June 2024 Groundwater Monitoring $18,000.00 Task 500 Project Management, Statistical Analysis, and Reporting $23,000.00 Total $130,000 Our costs will be on a time and materials basis. A detailed cost estimate can be provided upon request. 121 Task Order – 2023 to 2024 Groundwater and Methane Monitoring and Assessment Bozeman Landfill, Bozeman, Montana June 15, 2023 Page 5 of 5 TETRA TECH SPECIAL CONDITIONS: Execution of this Task Order constitutes acceptance of all terms and conditions contained in Tetra Tech’s Professional Services Agreement with the City of Bozeman, dated April 15, 2014. CLIENT: CONSULTANT: City of Bozeman Tetra Tech By: By: Printed Name: Printed Name: Larry Cawlfield Its: Its: Project Manager Date: Date: NOTICE OF CONFIDENTIALITY This Task Order (including attachments) contains information confidential to Tetra Tech, Inc., its subsidiaries, and subcontractors. It is intended only for City of Bozeman to consider Tetra Tech providing professional services at the Bozeman Landfill. Any other use is prohibited, without the prior written consent of Tetra Tech. 122 Memorandum REPORT TO:City Commission FROM:Ellie Staley, Executive Director Downtown Bozeman Partnership SUBJECT:Authorize the City Manager to Sign a First Amendment to the Professional Services Agreement with Design 5 Landscape Architecture to Continue Providing Design Services for the Downtown Bozeman Alleyways Beautification Project MEETING DATE:July 11, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign the First Amendment to the Professional Services Agreement with Design 5 Landscape Architecture to continue providing design services for the Downtown Bozeman Alleyways Beautification Project. 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:Attached is a copy of the First Amendment to the Professional Services Agreement with Design 5 Landscape Architecture to continue providing design services for the Bozeman Alleyways Beautification Project. The City entered into a Professional Services Agreement with Design 5 on September 27, 2022 to provide these services. The original agreement included an estimated cost of $37,500 and due to an extended deadline and unforeseen electrical engineering services, an amendment to approve funding for these overages is requested. Upon concurrence of the Commission, this amendment will extend the contract for continued design services for the Downtown Bozeman Alleyway Beautifications Project at an hourly basis and will also include subcontractor for unforeseen electrical engineering work. All other provisions of the original agreement remain unchanged. UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the City Commission FISCAL EFFECTS:Due to an extended bidding timeline, the need for Design 5 to provide guidance until the project is under a general contractor is necessary. The 123 time spent on bidding will be billed hourly and is outside of the $37,500 contracted amount for design. This includes preparing the bid documents, answering questions from contractors, pre-bid meeting, etc. There is an additional estimated cost for unexpected electrical engineering work at appx. $2,500, as we engaged Cushing Terrell to assist with the photometric and lighting plan, including connection details to the power source in the parking garage. Overages will be billed at an hourly rate if amendment is approved and not to exceed $15,000. Attachments: PSA Amendment_Alleyways Beautification Project.pdf Report compiled on: June 22, 2023 124 First Amendment to Professional Services Agreement for the Bozeman Alleyways Beautification Project FY 2023-2024 Page 1 of 3 FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT THIS FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT FOR the Bozeman Alleyways Beautification Project (Phase 2), dated 27th day of September, 2022 (the “Agreement”) is made and entered into this 11th day of July 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 Design.5 Landscape Architecture, 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. Not To Exceed. Due to an extended bidding timeline and unexpected electrical engineering subcontractor work, the not to exceed provision at the end of the scope of work shall be increased by $15,000 for FY24. 2. Scope of Work. Scope of work is unchanged from original agreement. 3. Term/Effective Date. This amended agreement is effective upon adoption and will expire on the 28th Day of September 2023, unless earlier terminated in accordance with the agreement. 4. 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 125 First Amendment to Professional Services Agreement for the Bozeman Alleyways Beautification Project FY 2023-2024 Page 2 of 3 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. 1. Agreement still valid. All remaining terms and provisions of the Agreement remain valid. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** 126 First Amendment to Professional Services Agreement for the Bozeman Alleyways Beautification Project FY 2023-2024 Page 3 of 3 IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA DESIGN 5 ARCHITECTURE By________________________________ By_____________________________ Jeff Mihelich, City Manager Print Name: Title: APPROVED AS TO FORM By_______________________________ Greg Sullivan, Bozeman City Attorney 127 Memorandum REPORT TO:City Commission FROM:Bob Murray, Project Engineer Shawn Kohtz, City Engineer SUBJECT:Authorize the City Manager to Sign a Second Amendment to the Professional Services Agreement with Sanderson Stewart to provide Right of Way Acquisition Services on a Term Contract Basis until July 2024 MEETING DATE:July 11, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign the Second Amendment to the Professional Services Agreement with Sanderson Stewart to provide Right of Way Acquisition Services on a term contract basis until July 2024. STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:Attached is a copy of the Second Amendment to the Professional Services Agreement with Sanderson Stewart to provide Right of Way Acquisition Services. The City entered into a Professional Services Agreement with Sanderson Stewart on July 13, 2021 to provide these services. The agreement included an expiration date of July 31, 2022 but allowed for one year extensions upon mutual written agreement of the parties. The First Amendment extended the contract until July 31, 2023. Upon concurrence of the Commission, this amendment will extend the contract for another year. The amendment also updates the consultant’s hourly rate sheet. All other provisions of the original agreement remain unchanged. UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the City Commission FISCAL EFFECTS:Fees will be negotiated on an individual task order basis in accordance with the original agreement and paid for from the Street Impact Fee Fund. Attachments: Second Amendment for ROW Acquisition_Sanderson Stewart 06 2023.docx Second Amendment-Exhibit A.pdf 128 Report compiled on: June 22, 2023 129 Second Amendment to Professional Services Agreement for Streets and Utilities Land Agent Services Page 1 of 2 SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT THIS SECOND AMENDMENT 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 Avenue, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City,” Sanderson Stewart, 106 East Babcock Street, Suite L1, Bozeman, MT 59715, 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 July 13, 2021 (the Agreement) is extended for an additional one (1) year period. The Agreement shall terminate on July 31, 2024. 2.Consultant’s hourly rate. Exhibit A of the Professional Services Agreement between the City and Contractor dated July 13, 2021 (the Agreement) specified the hourly rates. The consultant’s new hourly rate sheet is attached hereto as Exhibit A. 3.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. 130 Second Amendment to Professional Services Agreement for Streets and Utilities Land Agent Services Page 2 of 2 CITY OF BOZEMAN, MONTANA CONTRACTOR (Sanderson Stewart) By________________________________ By_____________________________ Jeff Mihelich, City Manager Tony Gaddo, Project Manager APPROVED AS TO FORM By_______________________________ Greg Sullivan, Bozeman City Attorney 131 OUTSIDE CONSULTANTS SURVEY CREW SERVICES STAFF PERSONNEL SERVICES CHARGE OUT RATES EFFECTIVE NOVEMBER 1, 2022 Staff Engineer I $115.00/hour Staff Engineer II $128.00/hour Project Engineer I $135.00/hour Project Engineer II $145.00/hour Senior Engineer I $180.00/hour Senior Engineer II $210.00/hour Principal $235.00/hour Engineer Intern $75.00/hour Expert Witness/Special Consultant $290.00/hour Staff Planner I $100.00/hour Staff Planner II $110.00/hour Planner I $130.00/hour Planner II $145.00/hour Senior Planner I $155.00/hour Senior Planner II $175.00/hour Right-of-Way Agent $168.00/hour Staff Landscape Designer I $100.00/hour Staff Landscape Designer II $108.00/hour Landscape Architect I $135.00/hour Landscape Architect II $145.00/hour Senior Landscape Architect I $160.00/hour Senior Landscape Architect II $170.00/hour Field Survey Technician I $85.00/hour Field Survey Technician II $88.00/hour Staff Surveyor I $110.00/hour Staff Surveyor II $120.00/hour Professional Land Surveyor I $135.00/hour Professional Land Surveyor II $148.00/hour Senior Professional Land Surveyor I $160.00/hour Senior Professional Land Surveyor II $178.00/hour Graphic Artist $100.00/hour CADD Technician I $88.00/hour CADD Technician II $95.00/hour Designer I $100.00/hour Designer II $110.00/hour Senior Designer I $120.00/hour Senior Designer II $135.00/hour Construction Inspector $88.00/hour Construction Engineering Technician $100.00/hour Senior Construction Engineering Technician $135.00/hour Construction Engineer I $135.00/hour Construction Engineer II $145.00/hour 1-man Crew/2-man Crew $Per Job Survey Equipment $15.00 /fieldwork hour Survey Vehicle Mileage $.75 /mile Scanner Equipment $150.00 /hour Scanner Equipment (Hourly) $150 /hour Scanner Equipment (Full Day) $1,050 /day 1) At cost if independently billed direct to client. 2) Cost plus 5% if billed through us. INDEPENDENT LABORATORIES 1) At cost if independently billed direct to client. 2) Cost plus 5% if billed through us. ADMINISTRATIVE EXPENSES Administrative expenses (including copies, prints, phone, postage, materials, and travel) 3.5% * * based on professional services only, unless modified by contract Vehicle Mileage IRS Rate These rates are updated periodically to reflect market conditions. Rate increases will be reflected in future invoicing. STAFF PERSONNEL SERVICES CONTINUED Project Administrator $95.00/hour Senior Project Administrator $110.00/hour Administrative/Clerical $90.00/hour Senior Administrative Director $165.00/hour Marketing Coordinator $105.00/hour Senior Marketing Coordinator $115.00/hour Marketing Director $155.00/hour 132 Memorandum REPORT TO:City Commission FROM:John Alston, Director of Utilities Brian Heaston, Senior Engineer SUBJECT:Authorize the City Manager to Sign Task Order 3, Under the Professional Services Master Task Order Agreement with HDR Engineering Inc., Providing Engineering Services to Update the East Gallatin River QUAL2K Water Quality Model and Report MEETING DATE:July 11, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign Task Order No. 3, under the Professional Services Master Task Order Agreement with the firm of HDR Engineering Inc., providing engineering services to update the East Gallatin River QUAL2K water quality model and report. STRATEGIC PLAN:6.1 Clean Water Supplies: Ensure adequate supplies of clean water for today and tomorrow. BACKGROUND:HDR Engineering provides professional engineering services on an on-call basis for the Bozeman Water Reclamation Facility (WRF) under a Master Task Order Agreement entered into on March 22, 2022. Attached is Task Order 3, providing engineering services to update the East Gallatin River QUAL2K water quality model and report. The current version of the model and report reflect water quality data collected by the City for the East Gallatin River from 2014 – 2016. TO 3 will update the model and report to bring in water quality data collected by the City in 2017 and 2018. The updated model and report will be utilized to support ongoing WRF discharge permit renewal discussions with the Montana DEQ. UNRESOLVED ISSUES:None. ALTERNATIVES:As suggested by the City Commission. FISCAL EFFECTS:Task Order 3 is funded by Project WW112 in the Commission-adopted FY24 wastewater enterprise fund CIP. Project WW112 contains $60k of funding for East Gallatin River data collection and analysis. TO 3 has a negotiated fee of $22,489. Sufficient budget is available. Attachments: Task Order 3 - All Combined.pdf 133 Report compiled on: June 28, 2023 134 WRF Task Order No. 3 1 Exhibit A to Professional Services Agreement TASK ORDER NUMBER 03 Issued under the authority of Professional Services Agreement between the City of Bozeman and HDR Engineering, Inc. for: A range of professional and technical services related to permit renewal assistance for the City of Bozeman Water Reclamation Facility (WRF). This Task Order is dated , 2023 between City of Bozeman (City) and HDR Engineering, Inc. (Contractor). The following representatives have been designated for the work performed under this Task Order: City: Brian Heaston Contractor: Coralynn Revis SCOPE OF WORK: (attach additional sheet(s) as required) 1. See the detailed Scope of Work in Attachment 1. COMPENSATION: Contractor shall be reimbursed on a Time and Materials basis not to exceed $22,489, without prior written authorization from the City of Bozeman. Contractor shall notify the City of Bozeman prior to executing additional work, and shall not proceed with additional work without written authorization from the City of Bozeman. Contractor shall invoice no more often than monthly for services provided in the prior month. The provisions of the Professional Services Master Task Order Agreement and any Special Terms and Conditions and/or Exhibits or Attachments to this Task Order shall govern the Work. IN WITNESS WHEREOF, the parties authorized to commit resources of the companies have executed this Task Order: City of Bozeman HDR Engineering, Inc. By: By: Title: Title: Date: Date: Fed. ID. No. 135 1 Attachment 1 – Scope of Services I. OBJECTIVE Context: The City of Bozeman, Montana, is a community of approximately 55,000 located in southwestern Montana in the East Gallatin River watershed. Bozeman is permitted by the Montana Department of Environmental Quality (DEQ) to discharge from its domestic wastewater treatment facilities (MT0022608) and its small municipal separate storm sewer systems (MS4) (MTR040000) to the East Gallatin River. These permits are based on the state water quality rules and regulations (Montana Code Annotated [MCA] Title 75 Environmental Protection Chapter 5 Water Quality) and contain requirements for meeting water quality standards. Due to the complexity and financial implications of these requirements, Bozeman contracts for technical expertise and services related to these permits. Background: HDR has provided technical expertise and services to Bozeman for many years and has extensive knowledge of Bozeman’s infrastructure and environment including fieldwork monitoring the East Gallatin River. Recently, HDR has been involved in DEQ’s nutrient workgroup and East Gallatin River monitoring to prepare for this project. Items in the recent timeline include the following.  Monitoring in 2014, 2015 and 2016 o Data Summary Report for East Gallatin River  Modeling in 2017 o East Gallatin River: Water Quality Monitoring and Modeling Analysis  DEQ Comments (7/31/2018)  Monitoring in 2017 and 2018 o Data Summary Report for East Gallatin River Project: Perform the tasks identified in this scope to create a Water Quality Monitoring and Modeling Analysis report using the 2017 and 2018 data. II. BASIS OF SCOPE OF SERVICES A. Project Basis Requirements and Standards: The report will align with the previous modeling report and standards for water quality modeling. Assumptions: The modeling will be limited in scope by the availability of recent data, alignment with the prior modeling, and limitations and capabilities of the modeling program. Raw data will be readily accessible. Modeling calibration and validation will be limited in scope to align with prior modeling. Decision Makers and Review Agencies: Bozeman will provide a single set of comments on the draft report and determine if submittal to DEQ is appropriate. 136 2 III. SCOPE ACTIVITY DEFINITION Task 1 2019 Modeling Report A. PURPOSE HDR will create a 2019 modeling report following the pattern of the 2017 modeling report using the 2017 and 2018 data and in consideration of DEQ’s comments. B. OBJECTIVE The outcome of the task is a report ready for submittal to Bozeman for discussion and possibly submittal to DEQ. C. HDR ACTIVITIES HDR will use the monitoring data from 2017 and 2018 within the East Gallatin River modeling framework and document the results in the 2019 modeling report. D. TASK DELIVERABLES Draft 2019 modeling report for review by Bozeman. Final 2019 modeling report for submittal. E. KEY UNDERSTANDINGS The 2019 modeling report will be a separate report from the 2017 modeling report and primarily address the 2017 and 2018 monitoring data with references to prior data and reporting. F. MEETINGS/TRAVEL One virtual meeting between Bozeman and HDR to review the draft 2019 modeling report. IV. FUTURE SERVICES Additional monitoring and/or modeling may be recommended based on the analyzes to support the overall goal of supporting Bozeman’s water programs. Additional explanation and requests may be needed with DEQ for future resolution. V. SCHEDULE Table 1. Schedule Task 2023 2024 2025 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 1 137 1 - Project Principal Engineer - Dave Clark3 - Engineer Water Resources Sr - Michael Kasch4 - Engineer Civil - Coralynn Revis5 - Environmental Scientist 3 - Chad Wiseman9 - Accountant Sr - Paden KaufmanTotal Budget Task Task Description Status PJM32 EWR30 ECI20 SEN30 ACT04 TOTAL HOURS LABOR COSTS TOTAL COST 110 Project Management .2 3 5 808$ 808$ 120 Review 2017 and 2018 Data .8 8 1,481$ 1,481$ 130 Update Qual2K Model .64 64 11,846$ 11,846$ 140 Modeling Report .30 4 34 6,563$ 6,563$ 150 Review Meeting .2 2 2 6 1,792$ 1,792$ Subtotal (including optional)2 104 4 4 3 117 22,489$ 22,489$ 2 104 4 4 3 117 22,489$ 22,489$ Task 100 2019 Model Report HDR 138 Rate Table Resource Code Description Billing Rate . PJM32 Project Principal Engineer 461.5$ EWR30 Engineer Water Resources Sr 185.1$ PJM13 Project Manager Engineer 249.2$ SEN30 Environmental Scientist 3 252.7$ ECI20 Engineer Civil 176.9$ ESA10 EIT Sanitary 131.2$ ADM10 Administrator 121.1$ ACT04 Accountant Sr 103.1$ 139 Memorandum REPORT TO:City Commission FROM:Brian Heaston, Senior Engineer John Alston, Director of Utilities SUBJECT:Authorize the City Manager to Sign Task Order 4, under the Professional Services Master Task Order Agreement with HDR Engineering Inc., Providing Engineering Services for MPDES Discharge Permit Renewal Assistance for the Water Reclamation Facility MEETING DATE:July 11, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign Task Order No. 4, under the Professional Services Master Task Order Agreement with the firm of HDR Engineering Inc., providing engineering services for MPDES discharge permit renewal assistance for the Water Reclamation Facility. STRATEGIC PLAN:6.1 Clean Water Supplies: Ensure adequate supplies of clean water for today and tomorrow. BACKGROUND:HDR Engineering provides professional engineering services on an on-call basis for the Bozeman Water Reclamation Facility (WRF) under a Master Task Order Agreement entered into on March 22, 2022. Attached is Task Order 4 (TO 4), providing engineering services to assist the City with renewal of its Montana Pollutant Discharge Elimination System (MPDES) discharge permit for the Water Reclamation Facility (WRF). The permit renewal process is technically challenging and uncertain given the changing state regulations concerning narrative nutrient water quality standards. The City requires technical assistance from HDR to help navigate the challenging and protracted technical and policy landscape of the MPDES discharge permit renewal process. UNRESOLVED ISSUES:None. ALTERNATIVES:As suggested by the City Commission. FISCAL EFFECTS:Task Order 4 is funded by the wastewater enterprise fund within the FY24 operating budget of the WRF. A consultant services line item specific for permit renewal assistance is contained in the operating budget at the amount of $80k. TO 4 has a negotiated fee of $30,000. Sufficient budget is available. 140 Attachments: Task Order No. 4- All Combined.pdf Report compiled on: June 28, 2023 141 WRF Task Order No. 4 1 Exhibit A to Professional Services Agreement TASK ORDER NUMBER 04 Issued under the authority of Professional Services Agreement between the City of Bozeman and HDR Engineering, Inc. for: A range of professional and technical services related to permit renewal assistance for the City of Bozeman Water Reclamation Facility (WRF). This Task Order is dated , 2023 between City of Bozeman (City) and HDR Engineering, Inc. (Contractor). The following representatives have been designated for the work performed under this Task Order: City: Brian Heaston Contractor: Coralynn Revis SCOPE OF WORK: (attach additional sheet(s) as required) 1. Provide permit renewal assistance for the City of Bozeman WRF discharge permit. Work may include, but is not limited to, updating technical reports concerning the East Gallatin River, preparing comments to the Montana Department of Environmental Quality during open comment periods, and preparing any necessary documentation. COMPENSATION: Contractor shall be reimbursed on a Time and Materials basis not to exceed $30,000, without prior written authorization from the City of Bozeman. Contractor shall notify the City of Bozeman prior to executing additional work, and shall not proceed with additional work without written authorization from the City of Bozeman. Contractor shall invoice no more often than monthly for services provided in the prior month. The provisions of the Professional Services Master Task Order Agreement and any Special Terms and Conditions and/or Exhibits or Attachments to this Task Order shall govern the Work. IN WITNESS WHEREOF, the parties authorized to commit resources of the companies have executed this Task Order: City of Bozeman HDR Engineering, Inc. By: By: Title: Title: Date: Date: Fed. ID. No. 142 Rate Table Resource Code Description Billing Rate . PJM32 Project Principal Engineer 461.5$ EWR30 Engineer Water Resources Sr 185.1$ PJM13 Project Manager Engineer 249.2$ SEN30 Environmental Scientist 3 252.7$ ECI20 Engineer Civil 176.9$ ESA10 EIT Sanitary 131.2$ ADM10 Administrator 121.1$ ACT04 Accountant Sr 103.1$ 143 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 21147 MEETING DATE:July 11, 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. 144 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: 2103 Bridger Drive ZMA-ANNEX-2022.07.07.pdf 21147 2103 Bridger Drive Annex Resolution 5434.pdf Report compiled on: June 28, 2023 145 146 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 21147. 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 acres, 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, 147 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. 148 Version April 2020 Page 3 of 3 Section 2 The effective date of this annexation is July 11, 2023. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 11th day of July, 2023. ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 149 Memorandum REPORT TO:City Commission FROM:Melissa Hodnett, Finance Director SUBJECT:Resolution 5507 to Establish Compliance with IRS Reimbursement Bond Regulations MEETING DATE:July 11, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION:I move to approve the resolution to establish compliance with IRS reimbursement bond regulations. 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:In order for the City to reimburse itself for expenditures with debt proceeds, treasury regulations require a Commission resolution declaring the official intent to reimburse expenditures with bond proceeds. Project expenditures for the Swim Center, Westside Campus facilities and construction of the Riverside Lift Station and Force Main projects have either begun or are anticipated to begin by November. The proposed resolution is presented solely for purposes of establishing compliance with treasury regulations and does not bind the City to make any expenditures, incur any indebtedness, or proceed with projects. UNRESOLVED ISSUES:None ALTERNATIVES:City financial plans assume debt funding for the projects included in this resolution, and additional funding would need to be identified for these projects to move forward if the resolution is not approved. FISCAL EFFECTS:Debt service associated with any debt proceeds are included in long-term financial models and consistent with the FY24 City Manager's Recommended Budget. Attachments: Res. 5507 Reimbursement Resolution.docx Report compiled on: June 29, 2023 150 1 RESOLUTION 5507 RESOLUTION RELATING TO THE FINANCING OF EXPENDITURES INCURRED FROM WATER, SEWER, STORMWATER, SOLID WASTE, PARKS & TRAILS DISTRICT, AND FACILITIES INFRASTRUCTURE PROJECTS, AND PARKS & TRAILS DISTRICT AND SOLID WASTE VEHICLE PURCHASES;ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE BE IT RESOLVED by the City Commission (the “Commission”) of the City of Bozeman, Montana (the “City”), as follows: Section 1 Recitals. The United States Department of Treasury has promulgated final regulations governing the use of proceeds of tax-exempt bonds, all or a portion of which are to be used to reimburse the City for project expenditures paid by the City prior to the date of issuance of such bonds. Those regulations (Treasury Regulations, Section 1.150-2) (the “Regulations”) require that the City adopt a statement of official intent to reimburse an original expenditure not later than 60 days after payment of the original expenditure. The Regulations also generally require that bonds be issued and the reimbursement allocation be made from the proceeds of such bonds within 18 months (or three years, if the reimbursement bond issue qualifies for the “small issuer” exception from the arbitrage rebate requirement) after the later of (i) the date the expenditure is paid or (ii) the date the project is placed in service or abandoned, but (unless the issue qualifies for the “small issuer” exception from the arbitrage rebate requirement) in no event more than three years after the date the expenditure is paid. The Regulations generally permit reimbursement of capital expenditures and costs of issuance of the bonds. 1.01.The City desires to comply with requirements of the Regulations with respect to certain projects and costs hereinafter identified. 151 2 Section 2 Official Intent Declaration. 2.01.The City intends to expend funds related to design and construction of facilities infrastructure projects and wastewater infrastructure projects, including a portion of construction of Fire Station #2, the Sourdough Intake Improvements Project, water system upgrades, Base Hydraulic Phase I at the Water Reclamation Facility, sewer lift station projects, park & trail improvement infrastructure projects, downtown stormwater mechanical installation, and vehicles to support Solid Waste and Parks & Trails District operations. 2.02. Other than (i) expenditures to be paid or reimbursed from sources other than the Bonds (as hereinafter defined), (ii) expenditures permitted to be reimbursed under the transitional provision contained in Section 1.150-2(j)(2) of the Regulations, (iii) expenditures constituting preliminary expenditures within the meaning of Section 1.150-2(f)(2) of the Regulations, or (iv) expenditures in a “de minimus” amount (as defined in Section 1.150-2(f)(1) of the Regulations), no expenditures for the Projects have heretofore been paid by the City and no expenditures will be paid by the City until after the date of this Resolution. 2.03. The City reasonably expects to reimburse some or all of the expenditures made for costs of the Projects out of proceeds of bonds, in one or more series, in an estimated maximum aggregate principal amount of $23 million (the “Bonds”) after the date of payment of all or a portion of the costs of the Project. All reimbursed expenditures shall be capital expenditures or extraordinary working capital expenditures, a cost of issuance of the Bonds or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Regulations. 2.04. As of the date hereof, there are no City funds reserved, allocated on a long-term basis or otherwise set aside (or reasonably expected to be reserved, allocated on a long-term basis or otherwise set aside) to provide permanent financing for the portion of the Projects expected to be financed, other than pursuant to the issuance of the Bonds. The statement of intent contained in this resolution, therefore, is determined to be consistent with the City’s budgetary and financial circumstances as they exist or are reasonably foreseeable on the date hereof. 2.05. The City Finance Director shall be responsible for making the “reimbursement allocations” described in the Regulations, being generally the transfer of the appropriate amount of proceeds of the Bonds to reimburse the source of temporary financing used by the City to make prior payment of the costs of the Projects. Each allocation shall be evidenced by an entry on the official books and records of the City maintained for the Bonds or the Projects and shall specifically identify the actual original expenditure being reimbursed. 152 3 PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 11th day of July, 2023. ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 153 4 CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE I, the undersigned, being the duly qualified and acting recording officer of the City of Bozeman, Montana (the “City”), hereby certify that the attached resolution is a true copy of Resolution No. 5448 entitled: “RESOLUTION RELATING TO THE FINANCING OF EXPENDITURES INCURRED FROM FACILITIES INFRASTRUCTURE IMPROVEMENT PROJECTS AND WASTEWATER INFRASTRUCTURE IMPROVEMENT PROJECTS; ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE” (the “Resolution”), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Commission of the City at a regular meeting on October 25, 2022, and that the meeting was duly held by the City Commission and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. I further certify that, upon vote being taken on the Resolution at said meeting, the following Commission members voted in favor thereof: ; voted against the same: ; abstained from voting thereon: ; or were absent: . WITNESS my hand and seal officially this ____ day of ___________, 20__. (SEAL)__________________________________ MIKE MAAS City Clerk 154 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 21147 MEETING DATE:July 11, 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 155 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: 2103 Bridger Drive ZMA-2022.07.07.pdf 21147 2103 Bridger Drive ZMA Ordinance 2121.pdf Report compiled on: June 28, 2023 156 157 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 21147. 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-2 (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 and continued to August 23, 2023 to receive and review all written and oral testimony on the request for a zone map amendment; and 158 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. 21147 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. 159 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. 160 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 11th day of July, 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 161 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, Final Adoption of The Short Term Rental Affirmative Obligations Text Amendment, Application 23147 MEETING DATE:July 11, 2023 AGENDA ITEM TYPE:Ordinance RECOMMENDATION:Final adoption of Ordinance 2131, The Short Term Rental Affirmative Obligations ass presented. 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 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 162 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. The Community Development Board in their capacity as the Zoning Commission met on June 5th to consider the proposed amendments and recommended approval of the ordinance as written. Discussion and concerns of this board and public comments included concerns with the fire safety inspection requirements every three years and data collection and reporting requirements. Staff has considered these concerns and incorporated language in a supplemental memorandum that was presented to the City Commission at the provisional adoption public hearing on June 27, 2023. After considering staff's presentation and the Supplemental Memorandum, the City Commission voted to unanimously provisionally adopt Ordinance 2131. For more details, please see the agenda and attachments for the June 27, 2023 City Commission Public Hearing per Action Item J.1. A video recording of this public hearing for the provisional adoption of Ordinance 2131 and associated discussions, public comments, and motion is available. Additional non-substantial changes made since the provisional adoption of Ordinance 2131 include the revision in the findings of text from "subdivision regulations" to "land development regulations", removal of "or the permit" as proposed in Subsection J.4, and changing the language from "registrant" to "permittee" throughout Subsection K.2. These changes are for consistency throughout the proposed amendment with the ordinance approved by the Commission at provisional adoption. Please see Ordinance 2131 for more information. UNRESOLVED ISSUES:None related to Ordinance 2131, The Short Term Rental Affirmative Obligations. The City Commission considered and decided on the incorporation of the Supplemental Memorandum as proposed at the Commission's June 27th Public Hearing. ALTERNATIVES:As determined by the City Commission. FISCAL EFFECTS:None at this time related to this Amendment. Attachments: Ordinance 2131 STR Affirmative Obligations Final Adoption.pdf 163 Report compiled on: July 5, 2023 164 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 land development 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: 165 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. 166 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 167 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. 168 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., including, but not limited to, providing alternative means to comply with hosting platform reporting requirements of 38.360.260.J.2 by maintaining an online tool accessible to the City that includes all required data. 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 169 Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals) Page 6 of 13 telephone and address of the applicant, and the time such registration permit will continue in force effect. 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 170 Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals) Page 7 of 13 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 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 171 Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals) Page 8 of 13 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 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. 172 Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals) Page 9 of 13 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. 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 173 Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals) Page 10 of 13 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: 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. 3. Required information for booking transaction. A hosting platform must include the city permit number 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 for the short term rental, the hosting platform must remove the listing from its hosting platform within ten 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 permittee will be notified in writing by the director at least seven days prior to the action contemplated and the reasons therefore. 174 Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals) Page 11 of 13 b. Upon receipt of the notice, the registrant permittee 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 permittee registrant's receipt of the notice. Failure on the part of the registrant permittee to request in writing a meeting and within the specified time period shall be a waiver of the permittee registrant's right to a meeting. c. If a meeting is requested by the registrant permittee, the director will set a time, date and place and will so notify the registrant permittee, 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 permittee 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 permittee 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 4 175 Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals) Page 12 of 13 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 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 27th day of June, 2023. ____________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ____________________________________ MIKE MAAS 176 Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals) Page 13 of 13 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 11th of July, 2023. The effective date of this ordinance is August 11, 2023. _________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: _______________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 177 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:July 11, 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 . 178 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: 22007974 X-ZMA-4.5.23.pdf 22366 North 8th Ordinance 2138.pdf Report compiled on: June 28, 2023 179 180 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 DISTRICT, ON 0.4828 ACRES, KNOWN AS THE NORTH 8TH ZONE MAP AMENDMENT, APPLICATION 22366. 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 District) for approximately 0.4828 acres has been properly submitted, reviewed, and advertised; and 181 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. 22366 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 District: 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 182 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. 183 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. 184 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 11th day of July, 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 185 Memorandum REPORT TO:City Commission FROM:Mayor Cynthia L. Andrus SUBJECT:Mayoral Proclamation Proclaiming Americans with Disabilities Act Month MEETING DATE:July 11, 2023 AGENDA ITEM TYPE:Administration RECOMMENDATION:Mayoral Proclamation Proclaiming Americans with Disabilities Act Month STRATEGIC PLAN:1.1 Outreach: Continue to strengthen and innovate in how we deliver information to the community and our partners. BACKGROUND:To proclaim July as American's with Disabilities Act Month UNRESOLVED ISSUES:none ALTERNATIVES:none FISCAL EFFECTS:none Attachments: ADA Month.pdf Report compiled on: July 5, 2023 186 Proclamation for Americans with Disabilities Act Month WHEREAS, the disability community is the largest minority group in the country where anyone, regardless of race, gender identity, income, or life experience, can join or leave at any time; and WHEREAS, the historic civil rights law, The Americans with Disabilities Act, was signed on July 26, 1990, affirming the inherent dignity and access to equal opportunity for every person, regardless of disability; and WHEREAS, in the spirit and intent of the Americans with Disabilities Act, the City of Bozeman celebrates its continued commitment to removing barriers to equal and equitable opportunity to access our community, including full participation in programs, activities, economic opportunities, housing, health care, transportation, recreation and many other areas of daily life in Bozeman. NOW, THEREFORE, I, Cynthia Andrus, Mayor of the City of Bozeman, in honor of the 33rd Anniversary of the Americans with Disabilities Act, do hereby proclaim the month of July 2023 as “AMERICANS WITH DISABILITIES ACT MONTH” In doing so, I recognize all the hard work advocates, policymakers, and people with disabilities have accomplished to ensure access to the same rights, opportunities, and privileges afforded to all our community members are afforded to people with disabilities. Signed and Proclaimed this 11th day of July, 2023. _________________________________ Cynthia L. Andrus Mayor, Bozeman, Montana 187 Memorandum REPORT TO:City Commission FROM:Dani Hess, Community Engagement Coordinator Nakeisha Lyon, Associate Planner SUBJECT:Belonging in Bozeman Plan Quarterly Update MEETING DATE:July 11, 2023 AGENDA ITEM TYPE:Citizen Advisory Board/Commission RECOMMENDATION:NA STRATEGIC PLAN:3.3 Friendly Community: Ensure Bozeman continues to welcome diversity through policies and public awareness. BACKGROUND:This presentation provides a quarterly update on the progress to develop the city's Belonging in Bozeman Equity & Inclusion Plan. The Belonging in Bozeman Plan follows through on the commitment made in both Resolution 5384 establishing the City as a City for CEDAW, as well as the Inclusive City Report to develop a community wide action plan. The Equity & Inclusion Plan is guided by existing data from the Equity Indicators Project, ongoing data collection efforts set forth in the CEDAW resolution, and will recommend polices, practices, and programs to address disparities found in the data. The purpose of the plan is to ensure that every resident, visitor, and City of Bozeman employee feels welcomed, valued, and can thrive no matter their race, identity, or life circumstance. Highlights from the work that has occurred since the last quarterly update presented to City Commission in April 2023 include work with our Community Liaisons, gathering input on the vision statements that will guide the goals and actions of the plan, developing Community Chat toolkits, and consulting with historians and knowledge holders for the development of the historical narrative section of the plan. This quarterly update will summarize the progress made in these areas. Community Liaisons Community liaisons representing the LGBTQ+ Community and disability community have been working to engage their networks in the development of the plan so far. Here are some highlights from their work! Tabling about LGBTQ+ community safety and spaces to connect with others Meeting with members of the LGBTQ+ community about safety 188 concerns, developing relationships with local law enforcement, and coordinated response to safety threats Hosting a series of Community Chats for people with disabilities throughout the month of July in recognition of the 33rd Anniversary of the Americans with Disabilities Act on July 26th Vision Statements The community survey to gather reactions and input on the vision statements for the plan received almost 400 responses. This survey sought to measure how well the vision statements reflected the experiences of individuals and the communities they belong to, as well as the urgency of each topic. Each vision statement corresponds to one of the topic areas established in the Equity Indicators Project. The Economic Vitality Board, external Steering Committee, internal Belonging in Bozeman Core Team, and the Migrant Community Coordination group also provided input to the project team on the draft statements. The finalized vision statements and a full report of survey results will be shared soon with the public at engage.bozeman.net/belonging. The Vision Statements will serve as the aspirational "true north" that will guide the goals, actions, and recommendations in the plan. Community Chats Save the date for the week of August 7th for our Community Chats open to all community members! We will be posting a Community Chat toolkit to support folks in hosting their own Community Chat with friends, neighbors, and/or colleagues, as well as holding a training for people who would like to learn more and be prepared to host. More info coming soon on engage.bozeman.net/belonging. Historical narrative workshop We are working with the Extreme History Project to develop the historical narrative for the Belonging in Bozeman plan as told through the perspective of people who have been traditionally left out of the dominant narrative. This includes women, people of color, LGBTQ+ people, people with disabilities, and indigenous people. We held a workshop in June to hear peoples stories and feedback on what key moments, people, and themes should be uplifted in the narrative. Next steps for the project are to host a joint workshop with the Belonging in Bozeman core team and external steering committee to gather feedback on the draft goals for the plan and begin developing actions and recommendations to achieve the plans goals and vision statements. This will be held in early August. The Economic Vitality Board will also have a work session on the plan at their August meeting. And finally, Community Chats will be happening across the Bozeman area August 7-11. All of the input from these upcoming engagement opportunities will inform a draft plan that our steering committee, core team, and Economic Vitality Board will continue to refine. The next update to City Commission will be in October, 189 with an anticipated consideration for final adoption by City Commission by the end of the year. UNRESOLVED ISSUES:NA ALTERNATIVES:NA FISCAL EFFECTS:NA Report compiled on: June 28, 2023 190 Memorandum REPORT TO:City Commission FROM:Mike Veselik, Economic Development Program Manager Brit Fontenot, Economic Development Director Kira Peters, Assistant City Manager SUBJECT:Resolution 5495 To Increase Permit Fees in the University Residential Parking Permit District and the Bozeman High School Residential Parking Permit District MEETING DATE:July 11, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION:I move to approve Resolution 5495 To Increase Permit Fees in the University Residential Parking Permit District and the Bozeman High School Residential Parking Permit District 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 City Commission is responsible for establishing permit rates in the University Residential Parking Permit District and the Bozeman High School Parking Permit District. The Transportation Advisory Board voted 5-0 to recommend the City Commission adopt Resolution 5495. The attached staff memo and excel spreadsheet has additional information about the districts and their finances. UNRESOLVED ISSUES:No unresolved issues ALTERNATIVES:No alternatives FISCAL EFFECTS:The city will collect an additional $5 in revenue per permit. If the City sells approximately 1,500 permits between the two districts which would follow recent trends, then the Parking Division would collect $7,500 in additional revenue to close some of the current gap between revenues and expenditures. Attachments: Resolution 5495 MSU and BHS Residential Permit Fees.docx CC Memo--Permit Rates for RPPD and BHS Permit Districts FY24.doc RPPD and BHS FY23 Budget.pdf 191 Report compiled on: June 1, 2023 192 Version February 2023 RESOLUTION 5495 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, to increase permit fees in the University Residential Parking Permit District and the Bozeman High School Residential Parking Permit District WHEREAS,the Residential Parking permit districts were established in Bozeman Municipal Code Sec. 36.04.360 and Sec. 36.04.365 to ensure residents had access to on-street parking in their neighborhoods. WHEREAS,the Parking Commission and City Commission are responsible for establishing permit rates in said districts as stated in in Bozeman Municipal Code Sec. 36.04.360(F) and Sec. 36.04.365(F). WHEREAS, the Parking Program is an enterprise fund and therefore must generate revenue to cover the costs of operating the program. Best practice in the industry is that permit fees pay for operating permit districts and enforcement fines pay for enforcement operations. WHEREAS, the program has seen a decline in the number of permits purchased and rising costs in paying for the operations. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, parking permit fees for all types of permits in both the University Residential Parking Permit District and the Bozeman High School Parking Permit District are increased by $5 to $35 per anuum with a $1.75 service fee included by the software provider. The total cost of a permit for a year is $36.75, PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the _____ day of ___________________, 20____. 193 Version February 2023 ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 194 Page 1 of 2 MEMORANDUM REPORT TO:Bozeman City Commission FROM:Mike Veselik, Economic Development Program Manager RE:Resolution 5495 MSU and BHS Residential Permit Fees MEETING DATE:July 11, 2023 AGENDA ITEM: Action Item RECOMMENDATION: Increase the permit fees in the two residential permit districts by $5 to cover increasing costs and falling permit purchases. BACKGROUND: City of Bozeman Parking Division staff held community engagement session with residents of the University Residential Parking Permit District (RPPD) and the Bozeman High School Permit District during Winter 2021. At the time, residents asked for more transparency in the budgeting process for permits in their districts. Staff proposed formulating a new budget for how permit fees are allocated to cover expenditures in the district. The permit fees would only cover the costs of administering the district, not the cost of enforcing the district. Using permit fees for administration and citation fees for enforcement is considered best practice in the parking industry. This year is the second year staff prepared a new budget for the district. It is included in the packet for the Commission’s consideration. The packet includes information about fees collected over the last year and the costs for running the district. RESIDENTIAL PARKING PERMIT DISTRICT FEES: Staff is recommending the City Commission increase permit fees by $5 for FY2024. As reflected in the budget presented, permit sales were below staff’s initial estimates for the 2022-2023 permit cycle. For several years before, staff had tracked declining permit sales, except for an uptick last year. The uptick in permit sales is attributed to a well organized neighborhood association that assists in promoting permit sales, finance staff 195 Page 2 of 2 distributing renewal notices in a timely manner, and parking enforcement officers providing consistent enforcement in the district especially when permit renewals occur. However, this year, sales did not keep up with projections for increases. Staff has included money to develop a comprehensive parking management plan for the city in the recommended FY24 budget. One goal of this plan will be to evaluate both residential parking permit districts. The evaluation would include data collection, community engagement, and a recommendation for how to improve the efficacy and performance of the district. For the cost side of the budget, staff included personnel costs for the parking manager and finance staff who administer the district. Parking staff process more than 2,000 applications for parking permits in only a few weeks during renewal season. Additionally, staff routinely assists residents with parking holidays, permit renewals, and anything else that might arise in relation to the district. Finally, costs also include a portion of the insurance and internal overhead costs the parking division incurs. Staff was able to eliminate the cost of a subscription fee for the software used to administer permits through the transition to Passport. The fee for permits include in a convenience fee of $1.75 added at the time of sale for permits renewed on an annual basis. CONCLUSION: Staff has concluded based on the costs, permit sales, and projected revenue into next year that the permit fees for both the University Residential Parking Permit District and the High School District should increase by $5. The Transportation Advisory Board recommended adoption of the resolution 5-0. 196 FY23 BUDGET REVENUE FY 23 BUDGET FY 23 ACTUAL % EARNED YTD RESIDENTIAL NGHBD. PERMITS 36,743.00$ $30,810.00 84% EMPLOYEE NGBHD. PERMITS 6,000.00$ $5,970.00 100% VISITOR NGBHD. PERMITS 14,730.00$ $8,160.00 55% TOTAL 57,473.00$ 44,940.00$ 78% EXPENDITURE FY23 BUDGET FY23 ACTUAL % SPENT YTD ADMIN - PERSONNEL 52,076.57$ 47,736.86$ 92% ADMIN - OPERATING 16,000.00$ 13,505.20$ 84% TOTAL 68,076.57$ 61,242.06$ 90% Permtis Sold 2023 2022 % Change MSU PERMITS 1333 1241 7% BHS PERMITS 134 147 -9% RESIDENTIAL PARKING PERMIT DISTRICT 197 Memorandum REPORT TO:City Commission FROM:Melissa Hodnett, Finance Director Kaitlin Johnson, Budget Analyst Jeff Mihelich, City Manager SUBJECT:Resolution 5486 Adopting Fiscal Year (FY) 2023-24 Budget MEETING DATE:July 11, 2023 AGENDA ITEM TYPE:Finance RECOMMENDATION:I move to approve Resolution 5486 adopting the City's Fiscal Year 2024 Budget 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 teamwork. 198 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. Budget presentations highlighting the General Fund, Special Revenue Funds, Debt Service Funds, Construction Funds, Enterprise Funds and Internal Service Funds took place on June 13, 2023 and June 27, 2023. Public hearings were held at each presentation. The City-wide expenditure budget is estimated to be $317.9M in total. Excluding transfers between funds, the budget is estimated to be $285.8M. The majority of expenditures are in capital outlay. A total of $154.4M in capital spending includes $102M budgeted for the Bozeman Community Center anticipated to be on the ballot for voter approval this fall. The impact of decreased property taxes, and increases to special district assessments and utility bills result in a total estimated impact to the median homeowner of 2.8% vs FY23, based on a median household taxable value of $467,000 and a lot size of 7,500 sq ft. Water usage is estimated to be 8.5- HCF. 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 adopted by motion. FISCAL EFFECTS:Fiscal effects have been discussed during budget presentations, and are included in the FY24 City Manager's Recommended Budget document linked above and available at the Bozeman Public Library. Page 21 of the recommended budget includes the recommended budget by fund. Attachments: Resolution 5486 Adopting Fiscal Year (FY) 2023-24 Budget.docx Report compiled on: June 1, 2023 199 RESOLUTION 5486 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, APPROPRIATING FUNDS FOR VARIOUS BUDGET UNITS, AND FURTHER ESTIMATING REVENUE NECESSARY TO OPERATE AND MAINTAIN SERVICES OF MUNICIPAL GOVERNMENT FOR THE FISCAL YEAR ENDING JUNE 30, 2024. WHEREAS,the City Commission did, on the 6th day of June, 2023, receive the City Manager’s Budget Recommendations for Fiscal Year 2023-2024 (FY24); and WHEREAS,the City Commission did, on June 13th and June 27th hold Budget Work Sessions that were open to the public to discuss the details of the Recommended Budget and make changes to the same; and WHEREAS, the City Commission did on the 11th day of July, 2023, after due and proper legal notice, conduct a public hearing on the proposed municipal budget. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: Section 1 The City Commission of the City of Bozeman, Montana, does hereby authorize and appropriate expenditures of governmental fund types (general fund, special revenues funds, debt service funds and capital project funds) and expenses for proprietary fund types (enterprise funds and internal service funds) and fiduciary fund types (permanent funds) for budget units 200 Ver Resolution 5486, Appropriating Funds for Fiscal Year ending June 30, 2024 2 and purposes set forth below, in the amounts designated herein, as follows. The City Commission further authorizes and re-appropriates the unexpended balance of Capital Improvement Program & repair and equipment items as approved by the City Manager which were previously budgeted and have not been completed. Budget Unit Appropriations General Fund 55,639,000$ Special Revenue Funds 72,188,400 Debt Service Funds 5,169,900 Construction Funds 116,367,700 Enterprise Funds 52,270,300 Internal Service Funds 16,221,900 Permanent Funds - Grand Total - Appropriations 317,857,200$ Section 2 The City Commission of the City of Bozeman, Montana does hereby estimate revenues for the various funds, as follows: Budget Unit Estimated Revenues General Fund 53,523,200$ Special Revenue Funds 58,617,000 Debt Service Funds 5,532,200 Construction Funds 115,711,700 Enterprise Funds 56,591,900 Internal Service Funds 21,188,600 Permanent Funds 86,700 Grand Total - Estimated Revenues 311,251,300$ 201 Ver Resolution 5486, Appropriating Funds for Fiscal Year ending June 30, 2024 3 Section 3 The budget information contained in the "City Manager's Recommended Budget for Fiscal Year 2023-2024" document pertaining to Policy Direction, Fiscal Policy, and the specific information concerning budgeting for each fund, as may be subsequently amended prior to final adoption of the budget, are hereby incorporated into the document entitled "Approved Budget for Fiscal Year 2023-2024" and are hereby adopted as reference. Section 4 Annual appropriations and transfer out for various departments for Fiscal Year 2023- 2024 will be controlled and monitored for budgetary compliance at the budget unit level. Section 5 Pursuant to Sections 7-6-4006 and 7-6-4012, M.C.A., the City Commission hereby delegates appropriation and budget amendment authority to the City Manager for the expenditures from the following funds: debt service funds; fee-based budgets; trust funds; federal, state and private grants accepted and approved by the City Commission; special assessments; monies borrowed during the year; proceeds from sale of land; and funds for gifts or donations. Section 6 Pursuant to Section 7-6-4030, M.C.A., this resolution, upon its passage, shall be in full force and effect as of July 1, 2023. Section 7 That upon this resolution becoming effective, as provided in Section 6 above, all resolutions and parts thereof in conflict herewith are hereby repealed. Section 8 That should it be found by any court of competent jurisdiction that any section, clause, portion, sentence, word, or phrase of this resolution is deemed to be contrary to any existing law or regulations, that in this instance, it is the intent of the City Commission of the City of Bozeman, Montana, that all other portions, sections, words, clauses, phrases, or paragraphs of this document shall remain in full force and effect. 202 Ver Resolution 5486, Appropriating Funds for Fiscal Year ending June 30, 2024 4 PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 11th day of July, 2023. ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 203 DocuSign Envelope ID: 351D3F23-69E1-472B-90FA-054D5414108440204 DocuSign Envelope ID: 351D3F23-69E1-472B-90FA-054D5414108441205 DocuSign Envelope ID: 351D3F23-69E1-472B-90FA-054D541410846/27/2023 | 8:15 AM MDT6/28/2023 | 9:09 PM MDT6/29/2023 | 9:52 PM MDT6/30/2023 | 8:10 AM MDT42206 DocuSign Envelope ID: 351D3F23-69E1-472B-90FA-054D5414108443207