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HomeMy WebLinkAbout08-08-23 City Commission Meeting Agenda and 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 Grant Agreement 24-G01-1663 between the City and THE CITY COMMISSION OF BOZEMAN, MONTANA REGULAR MEETING AGENDA Tuesday, August 8, 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 Gallatin County to receive Federal funding for the Bozeman Police Department (BPD) Drug Task Force officers in FY24.(Stewart) G.3 Consideration of the Final Plat for the 2131 Graf Street Minor Subdivision, Application 23080 (Quasi-Judicial)(Montana) G.4 Authorize the City Manager to sign a Professional Services Agreement with the firm of Advanced Engineering and Environmental Services, LLC providing engineering services to design mechanical and structural upgrades to the City's municipal water system pressure reducing valves(Nielsen) G.5 Authorize the City Manager to Sign Amendment 1 to Task Order 1 of the Professional Services Master Task Order Agreement with the firm of HDR Engineering, Inc. providing engineering services to design and permit the East Gallatin River Streambank Erosion Protection Project, CIP No. WW111(Nielsen) G.6 Authorize the City Manager to Sign a Task Order EDD23-002 with Sanderson Stewart for Quiet Zone Implementation Services at Griffin Drive, North Rouse Avenue, and North Wallace Avenue(Fine) G.7 Resolution 5518, Setting the Annual Salary for the Municipal Judges (Tozer) G.8 Ordinance 2142, Final Adoption, Revising Speed Limits on City-controlled Routes(Ross) 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.Work Session I.1 Short-Term Rentals Work Session(Lyon & George) J.Action Items J.1 Ordinance 2147 Provisional Adoption of Regulations for Camping on City Right-of- way(Peters, Saverud) J.2 Continue the Public Meeting to Consider the Aaker Phase 1 Major Subdivision Preliminary Plat Application to the August 15, 2023 Commission Meeting  (Quasi-Judicial)(Montana) K.FYI / Discussion L.Adjournment 2 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:August 8, 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:August 8, 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. 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: August 3, 2023 5 Memorandum REPORT TO:City Commission FROM:Melissa Hodnett, Finance Director Aaron Funk, City Controller SUBJECT:Authorize the City Manager to sign Grant Agreement 24-G01-1663 between the City and Gallatin County to receive Federal funding for the Bozeman Police Department (BPD) Drug Task Force officers in FY24. MEETING DATE:August 8, 2023 AGENDA ITEM TYPE:Agreement - Agency/Non-profit RECOMMENDATION:Authorize the City Manager to sign Grant Agreement 24-G01-1663 between the City and Gallatin County to receive Federal funding for BPD Drug Task Force officers in FY24. STRATEGIC PLAN:1.3 Public Agencies Collaboration: Foster successful collaboration with other public agencies and build on these successes. BACKGROUND:Every year, the Montana Board of Crime Control (MBCC) provides local and tribal governments with U.S. Department of Justice, Bureau of Justice Assistance funds to interdict gang and drugs through the multi-jurisdictional efforts of law enforcement and prosecution. These funds are disbursed quarterly by Gallatin County in the form of reimbursement until they have been depleted. UNRESOLVED ISSUES:None. ALTERNATIVES:If the City Commission forgoes the acceptance of funds, the City will have to search for other funding sources to cover the expenses of the BPD's Drug Task Force. FISCAL EFFECTS:Grant Agreement 24-G01-1663 provides the BPD with $70,187.83 in funding towards the Drug Task Force, saving an equivalent amount from the general fund. Attachments: BPD Face Sheet.pdf BPD Subrecipient Agreement.pdf Report compiled on: July 27, 2023 6 FACE SHEET 24-G01-1663 CONTRACT NUMBER: 2024055 SUBRECIPIENT NAME/ADDRESS: City of Bozeman PO BOX 1230 BOZEMAN, MT 59715 TOTAL BUDGET: $200,536.66 MBCC BUDGET: $100,268.33 LOCAL MATCH: $30,080.50 MBCC AWARD: $70,187.83 TOTAL CONTRACT AMOUNT: $100,268.33 SUBRECIPIENT CONTACT INFO: Jim Veltkamp CHIEF OF POLICE 406-582-2000 PROGRAM CONTACT INFO: CPT. Nathan Kamerman 615 S 16TH AVE BOZEMAN, MT 59715 406-582-2110 FISCAL CONTACT INFO: Drew Ellis 615 S 16TH AVE BOZEMAN, MT 59715 406-582-2069 CONTRACT START DATE: 07/01/2023 CONTRACT END DATE: 06/30/2024 FUNDING AUTHORITY: MONTANA BOARD OF CRIME CONTROL - US DEPARTMENT OF JUSTICE - FEDERAL FUNDING CFDA NUMBERS(s): 16.738 CFDA TITLE(S): EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PURPOSE: Provide local and tribal governments with U.S. Department of Justice, Bureau of Justice Assistance funds to interdict gang and drugs through the multi-jurisdictional efforts of law enforcement and prosecution. MBCC Grant Award 23-G01-1345. EXHIBITS (specify): Exhibits A, B, C, & D MBCC Special Conditions This Contract contains all of the terms and conditions agreed upon by the parties and all documents attached or incorporated by reference, include Basic Interagency Agreement or its successor. No other understandings or representations, oral or otherwise, regarding the subject matter of this Contract shall be deemed to exist or bind the parties. The parties signing below warrant that they have read and understand this Contract and have authority to enter into this Contract. CONTRACTOR BOARD OF COUNTY COMMISSIONERS Name Commission Chairman Date Zach Brown, Chairman Date FacePageTemplate1017 Rev. 10/16 7 M R D T F – B o z e m a n P o l i c e D e p a r t m e n t 0 7 / 0 1 / 2 0 2 3 -0 6 / 3 0 / 2 0 2 4 EXHIBIT "A" GENERAL TERMS AND CONDITIONS In consideration of the covenants, conditions, performances, and provisions hereinafter contained, the parties hereto agree as follows: Definitions: The words and phrases listed below, as used in the Contract, shall have the following definitions: • "Contract" means this Contract and the Contractor Contract on General Terms and Conditions and any Exhibits and other documents attached or incorporated by reference. • "CFR" means Code of Federal Regulations. All references in this Contract to CFR chapters or sections shall include any successor, amended, or replacement regulation. The CFR may be accessed at http://www.gpoaccess.gov/cfr/index.html. • "Debarment" means an action taken by a federal official to exclude a person or business entity from participating in transactions involving certain federal funds. • General Terms and Conditions" means the contractual provisions contained within this Contract, which govern the contractual relationship between the County and the Contractor, under this Contract. • "Personal Information" means information identifiable to any person, including, but not limited to, information that relates to a person's name, health, finances, education, business, use or receipt of governmental services or other activities, addresses, telephone numbers, social security numbers, driver license numbers, other identifying numbers, and any financial identifiers. • "Principals," which includes officers, members of the Board of Directors, owner(s), or other person(s) with management or supervisory responsibilities relating to the transaction. • "MCA" means the Montana Code Annotated. All references in this Contract to MCA chapters or sections shall include any successor, amended, or replacement statute. • "Subcontract" means a separate contract between the Contractor and an individual or entity ("Subcontractor") to perform all or a portion of the duties and obligations that the Contractor shall perform pursuant to this Contract. • "USCA" means United States Code Annotated. All references to USCA chapters or sections in this Contract shall include any successor, amended, or replacement statute. The USCA may be accessed at http://www.gpoaccess.gov/uscode/index.html. 8 M R D T F – B o z e m a n P o l i c e D e p a r t m e n t 0 7 / 0 1 / 2 0 2 3 -0 6 / 3 0 / 2 0 2 4 1. Amendment: This Contract, or any term or condition, may only be modified in writing and signed by both parties. Only personnel authorized to bind each of the parties shall sign an amendment. 2. Assignment: Except as otherwise provided herein, the Contractor shall not assign rights or obligations derived from this Contract to a third party without the prior, written consent of the County and the written assumption of all of the Contractor's obligations in this Contract by the third party. 3. Billing Limitations: Contractor shall maintain a written record of expenses and submit quarterly invoices detailing expenses for reimbursement to: Gallatin County Sheriff’s Office, 615 South 16th Avenue, Bozeman, MT 59715. The County shall pay the Contractor within 45 days after receiving an invoice and proper supporting documentation. All billings must be received no later than 7 days after the close of the quarter/contract to be considered for payment. The decision to approve or deny payment of claims for services submitted after more than 60 days shall rest solely with the County and the County’s decision shall be final and not capable of right to appeal. 4. Circulars "COMPLIANCE MATRIX": The following Compliance Matrix identifies the OMB Circulars that contain the requirements, which govern expenditure of federal funds. These requirements apply to the primary recipient of federal funds, and then follow the funds to the subrecipients. The federal Circulars, which provide the applicable administrative requirements, cost principles and audit requirements, are identified by subrecipient organization type. COMPLIANCE MATRIX Federal Uniform Guidance Title 2 CFR Subpart F ENTITY TYPE ADMINISTRATIVE REQUIREMENTS COST PRINCIPLES AUDIT REQUIREMENTS State, Local and Indian Tribal Governments & Governmental 2 CFR part 200 2 CFR Part 200 2 CFR Part 200 F 5. Compliance with Applicable Law: At all times during the term of this Contract, the Contractor and the County shall comply with all applicable federal, state, and local laws, regulations, and rules, including, but not limited to, non-discrimination laws and regulations. 9 M R D T F – B o z e m a n P o l i c e D e p a r t m e n t 0 7 / 0 1 / 2 0 2 3 -0 6 / 3 0 / 2 0 2 4 6. Confidentiality: The parties shall use Personal Information and other confidential information gained by reason of this Contract only for the purpose of this Contract. The County and the Contractor shall not disclose, transfer, or sell any such information to any other party or in the case of Personal Information, except as provided by law or with the prior written consent of the person to whom the Personal Information pertains. The parties shall maintain the confidentiality of all Personal Information and other confidential information gained by reason of this Contract and shall return or certify the destruction of such information if requested in writing by the party to this Contract that provided the information 7. Debarment Certification: The Contractor, by signature to this Contract, certifies the Contractor, its Principles and any Subcontractors are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded by any Federal department or agency from participating in transactions (debarred). The Contractor also agrees to include the above language notification requirement in any and all Subcontracts into which it enters. The Contractor shall immediately notify the County if, during the term of this Contract, the Contractor, its Principles or Subcontractors becomes debarred. The County may immediately terminate this Contract by providing the Contractor written notice if the Contractor becomes debarred during the term of this Contract. 8. Disputes: A Dispute Board shall determine Disputes between the parties in the following manner: Each party shall appoint one member to the Dispute Board. The members appointed shall jointly appoint an additional member to the Dispute Board. The Dispute Board shall review the facts, Contract terms, and applicable statutes and rules and make a determination. This process shall constitute the final administrative remedy available to the parties. Each party reserves the right to litigate issues and matters in court de novo. 9. Documentation for Reimbursement Requests: At the Contractor's first request for reimbursement, the Gallatin County Sheriff’s Office will require detailed back-up documentation for all expenditures. On subsequent invoices, the monthly activity report and a printout from the Contractor's accounting system listing the expenditures charged against the contract will be acceptable. All back-up documentation must be available to the County and all other auditors, upon request. Reimbursement of expenditures for staff time spent on more than one source will require timesheets reflecting hours charged to the contract. 10. Entire Contract: This Contract, including all documents attached to or incorporated by reference; contain all the terms and conditions agreed upon by the parties. No other understandings or representations, oral or otherwise, regarding the subject matter of this Contract shall be deemed to exist or bind the parties. 11. Governing Law, Venue, and Jurisdiction: This Agreement shall be governed by the laws of the State of Montana. Any action to enforce this Agreement shall be brought in the District Court of the Eighteenth Judicial District, Gallatin County, Montana. 10 M R D T F – B o z e m a n P o l i c e D e p a r t m e n t 0 7 / 0 1 / 2 0 2 3 -0 6 / 3 0 / 2 0 2 4 12. Independent Status: For purposes of this Contract, the Contractor acknowledges that the Contractor is not an officer, employee, or agent of the County. The Contractor shall not hold out itself or any of its employees as, nor claim status as, an officer, employee, or agent of the County. The Contractor shall not claim for itself or its employees any rights, privileges, or benefits, which would accrue to an employee of the County. The Contractor shall indemnify and hold harmless the County from all obligations to pay or withhold federal or state taxes or contributions on behalf of the Contractor or the Contractor's employees. a. The parties agree that, for the purposes of this Contract, the Contractor is an independent contractor and neither the Contractor nor any employee of the Contractor is an employee of the County. Neither the Contractor nor any employee of the Contractor is entitled to any benefits that Gallatin County provides its employees. The Contractor is solely responsible for payment of any statutory workers compensation or employer's liability insurance as required by state law. 13. Inspection: Either party may request reasonable access to the other party's records and place of business for the limited purpose of monitoring, auditing, and evaluating the other party's compliance with this Contract and applicable laws and regulations. During the term of this Contract and for one year following termination or expiration of this Contract, upon receiving reasonable written notice, the parties shall provide the other party with access to its place of business and to its records, which are relevant to its compliance with this Contract, and applicable laws and regulations. This provision shall not be construed to give either party access to the other party's records and place of business for any other purpose. Nothing herein shall be construed to authorize either party to possess or copy records of the other party. 14. Insurance: The CONTRACTOR certifies that it shall carry comprehensive general liability insurance in the amount no less than $1,500,000.00 for each occurrence; Automobile Liability in the amount of $1,500,000.00 combined single limit; Professional Liability or Errors and Omissions coverage in the amount of $1,500,000.00. All insurance policies shall be primary and noncontributory and shall name Gallatin COUNTY as additional insured. Such certificate shall require no less than 15 days notice of cancellation to COUNTY. CONTRACTOR shall put COUNTY on immediate notice of any changes or cancellation in coverage. CONTRACTOR shall require all consultants, and subcontractors to meet the same insurance coverage. During the term of the contract, the Contractor shall maintain in force, at its expense, insurance as noted below. There shall be no cancellation, material change, reduction in limits or intent not to renew the insurance coverage(s) without 30 days written notice from the contractor or its insurer(s) to the participating agencies. 11 M R D T F – B o z e m a n P o l i c e D e p a r t m e n t 0 7 / 0 1 / 2 0 2 3 -0 6 / 3 0 / 2 0 2 4 15. Condition Precedent Delivery of Documents: Certificate of Insurance/Workers Compensation/Independent Contractor Status: As a condition precedent to this agreement binding the parties, on or before execution of this agreement CONTRACTOR shall deliver to the COUNTY original or certified copies of the Certificate of Insurance, Certificate of Workers Compensation Coverage, Independent Contractors License, and any other documents required. CONTRACTOR shall cooperate in good faith and shall deliver, upon request, such other and further documents as may be reasonably required to determine CONTRACTOR’s strict compliance with the required insurance, Workers Compensation coverage and independent CONTRACTOR status and the terms and conditions of this agreement. 16. Maintenance of Records: During the term of this Contract and per state law for seven years following termination or expiration of this Contract, both parties shall maintain records sufficient to: a. Document performance of all acts required by law, regulation, or this Contract; b. Demonstrate accounting procedures, practices, and records that sufficiently and properly document the Contractor's invoices to the County and all expenditures made by the Contractor to perform as required by this Contract. c. For the same period, the Contractor shall maintain records sufficient to substantiate the Contractor's statement of its organization's structure, tax status, capabilities, and performance. 17. Nondiscrimination: The Contractor agrees that it shall not discriminate against any person on the grounds of race, creed, color, religion, national origin, sex, sexual orientation, age, marital status, political affiliation or belief, or the presence of any sensory, mental or physical handicap pursuant to the Americans with Disabilities Act (42 USC 12101 et seq.) In the event the Contractor violates this provision, the County may terminate this Contract immediately and bar the Contractor from performing any services for the County in the future. 18. Order of Precedence: In the event of an inconsistency in this Contract, unless otherwise provided herein, the inconsistency shall be resolved by giving precedence, in the following order, to: a. Applicable Federal and State of Montana statutes and regulations; Special Terms and Conditions of this Contract; This Contract. 19. Ownership of Material: Copyright in all material created by the Contractor and paid for by the County shall be the property of the State of Montana. Both County and Contractor may use these materials and permit others to use them, for any purpose consistent with their respective missions as part of the State of Montana. This material includes, but is not limited to: books; computer programs; documents; films; pamphlets; reports; sound reproductions; studies; surveys; tapes; and/or training materials. Material which the Contractor uses to 12 M R D T F – B o z e m a n P o l i c e D e p a r t m e n t 0 7 / 0 1 / 2 0 2 3 -0 6 / 3 0 / 2 0 2 4 perform this Agreement but is not created for or paid for by the County is owned by the Contractor or such other party as determined by Copyright Law and/or Contractor's internal policies. Contractor hereby grants the County a perpetual license to use this material for County internal purposes at no charge to the County, provided that such license shall be limited to the extent which the Contactor has a right to grant such a license. 20. Responsibility: Each party to this Contract shall be responsible for the negligence of its officers, employees, and agents in the performance of this Contract to the extent allowed by law. No party to this Contract shall be responsible for the acts and/or omissions of entities or individuals not party to this Contract. The County and the Contractor shall cooperate in the defense of tort lawsuits, when possible. Both parties agree and understand that this provision may not be feasible in all circumstances. The County and the Contractor agree to notify the attorneys of record in any tort lawsuit where both are parties if either the County or the Contractor enters into settlement negotiations. It is understood that the notice shall occur prior to any negotiations, or as soon as possible, and the notice may be either written or oral. 21. Severability: The provisions of this Contract are severable. If any court holds any provision of this Contract, including any provision of any document incorporated by reference, invalid, that invalidity shall not affect the other provisions this Contract. 22. Subcontracting: The Contractor may not subcontract the services to be provided under this Contract, unless requested and approved in writing by the Board of County Commissioners for Gallatin County or their assigns or unless otherwise specified in this Contract. If the County, the Contractor, and a subcontractor of the Contractor are found by a jury or trier of fact to be jointly and severally liable for personal injury damages arising from any act or omission from the contract, then the County shall be responsible for its proportionate share, and the Contractor shall be responsible for its proportionate share. Should the subcontractor be unable to satisfy its joint and several liability, the County and the Contractor shall share in the subcontractor's unsatisfied proportionate share in direct proportion to the respective percentage of their fault as found by the jury or trier of fact, to the extent allowed by law. Nothing in this term shall be construed as creating a right or remedy of any kind or nature in any person or party other than the County and the Contractor. This term shall not apply in the event of a settlement by either the County or the Contractor. 23. Subrecipients: a. General: If the Contractor is a subrecipient of federal awards as defined by the Code of Federal Regulations, 2 CFR Part 200, and this Contract, the Contractor shall: i. Maintain records that identify, in its accounts, all federal awards received and expended and the federal programs under which they were received, by Catalog of Federal Domestic Assistance (CFDA) title and number, award number and year, name of the federal agency, and name of the pass- 13 M R D T F – B o z e m a n P o l i c e D e p a r t m e n t 0 7 / 0 1 / 2 0 2 3 -0 6 / 3 0 / 2 0 2 4 through entity; ii. Maintain internal controls that provide reasonable assurance that the Contractor is managing federal awards in compliance with laws, regulations, and provisions of contracts or grant agreements that could have a material effect on each of its federal programs; iii. Prepare appropriate financial statements, including a Schedule of Expenditures of Federal Awards; iv. Incorporate 2 CFR Part 200 audit requirements into all agreements between the Contractor and its Subcontractors who are subrecipients; v. Comply with any future amendments to 2 CFR Part 200 and any successor or replacement Circular or regulation; vi. Comply with the applicable requirements of applicable Circulars defined under Circulars "Compliance Matrix" found in item 5 of the General Terms and Conditions and any future amendments to them, and any successor or replacement Circulars or regulations; and vii. Comply with the Omnibus Crime Control and Safe Streets Act of 1968; Title VI of the Civil Rights Act of 1964; Victims of Crime Act (42 U.S.C.§ 10604(e)); Juvenile Justice and Delinquency Prevention Act of 2002 (42 U.S.C. § 5673(b)); Section 504 of the Rehabilitation Act of 1973; Title II of the Americans with Disabilities Act of 1990; Title IX of the Education Amendments of 1972; The Age Discrimination Act of 1975; The Department of Justice Nondiscrimination Regulations, 28 CFR Part 42, Subparts C, D, E, and G, and 28 CFR Part 35 and Part 39; Executive Order 13279 (equal protection of the law for faith-based and community organizations; and 28 C.F.R. Part 37 ((U.S. Department of Justice Regulations — Equal Treatment for Faith Based Organizations). (See www.oin.usdoi.gov/ocr for additional information and access to the aforementioned Federal laws and regulations.) 1. Single Audit Act Compliance: If the Contractor is a subrecipient and expends $750,000 or more in federal awards from all sources in any fiscal year, the Contractor shall procure and pay for a single audit or a program-specific audit for that fiscal year. Upon completion of each audit, the Contractor shall: a. Submit to the County contact person, listed on the first page of this Contract, the data collection form and reporting package specified in 2 CFR Part 200, reports required by 14 M R D T F – B o z e m a n P o l i c e D e p a r t m e n t 0 7 / 0 1 / 2 0 2 3 -0 6 / 3 0 / 2 0 2 4 the program-specific audit guide (if applicable), and a copy of any management letters issued by the auditor; i. Follow-up and develop corrective action for all audit findings; in accordance with 2 CFR Part 200, and prepare a "Summary Schedule of Prior Audit Findings." 24. Overpayments: If it is determined by the County, or during the course of the required audit, that the Contractor has been paid unallowable costs under this Contract, the County may require the Contractor to reimburse the County in accordance with appropriate applicable Circulars defined under Circulars "Compliance Matrix" found in item 5 of the General Terms and Conditions. 25. Survivability: The terms and conditions contained in this Contract, which by their sense and context, are intended to survive the expiration of this particular Contract shall survive. Surviving terms include, but are not limited to: Confidentiality, Disputes, Inspection, Maintenance of Records, Ownership of Material, Responsibility, Termination for Default, Termination Procedure, and Title to Property. 26. Termination Due to Change in Funding: If the funds upon which the County relied to establish this Contract are withdrawn, reduced, or limited, or if additional or modified conditions are placed on such funding, the County may terminate this Contract by providing at least five business days written notice to the Contractor. The termination shall be effective on the date specified in the notice of termination. 27. Termination: Either party may terminate this Agreement by providing thirty (30) calendar days written notice sent by certified mail to the addresses listed on Page 1. If the Contractor fails to comply with the terms and conditions of this Agreement, the County may pursue such remedies as are legally available, including, but not limited to, the immediate termination of this Agreement. If this Agreement is terminated for any reason, County shall pay only for performance rendered or costs incurred in accordance with the terms of this Agreement and prior to the effective date of termination. 28. Title to Property: Title to all property purchased or furnished by the County for use by the Contractor during the term of this Contract shall remain with the County. Title to all property purchased or furnished by the Contractor for which the Contractor is entitled to reimbursement by the County under this Contract shall pass to and vest in the County. The Contractor shall take reasonable steps to protect and maintain all the County property in its possession against loss or damage and shall return the County property to the County upon Contract termination or expiration, reasonable wear and tear excepted. 29. Treatment of Client Property: Unless otherwise provided in this Contract, the Contractor shall ensure that any adult client receiving services from the Contractor under this Contract has unrestricted access to the client's personal property. The Contractor shall not interfere 15 M R D T F – B o z e m a n P o l i c e D e p a r t m e n t 0 7 / 0 1 / 2 0 2 3 -0 6 / 3 0 / 2 0 2 4 with any adult client's ownership, possession, or use of the client's property. The Contractor shall provide clients under age 18 with reasonable access to their personal property that is appropriate to the client's age, development, and needs. Upon termination or completion of this Contract, the Contractor shall promptly release to the client and/or the client's guardian or custodian all of the client's personal property. This section does not prohibit the Contractor from implementing such lawful and reasonable policies, procedures and practices as the Contractor deems necessary for safe, appropriate, and effective service delivery (for example, appropriately restricting clients' access to, or possession or use of, lawful or unlawful weapons and drugs). 30. Waiver: Waiver of any breach or default on any occasion shall not be deemed a waiver of any subsequent breach or default. Any waiver shall not be construed to be a modification of the terms and conditions of this Contract unless amended as set forth in Section 2, Amendment. Only the Board of County Commissioners for Gallatin County has the authority to waive any term or condition of this Contract on behalf of the County. 31. Notices: Any demand, request or notice which either party desires or may be required to make or deliver to the other shall be in writing and shall be deemed delivered when personally delivered, or when delivered by private courier service (such as Federal Express), or three days after being deposited in the United States mail, in registered or certified format, return receipt requested, addressed as follows: Contractor: Jeff Mihelich- City Manager City of Bozeman 121 North Rouse Bozeman, MT 59715 County: Zach Brown County Commissioner 311 West Main Street, Room 306 Bozeman, MT 59715 16 M R D T F – B o z e m a n P o l i c e D e p a r t m e n t 0 7 / 0 1 / 2 0 2 3 -0 6 / 3 0 / 2 0 2 4 EXHIBIT “B” SPECIAL TERMS AND CONDITIONS 1. Acknowledgement of Federal Funding: The contractor agrees that any publications (written, visual, or sound) but excluding press releases, newsletters, and issue analyses, issued by the Contractor describing programs or projects funded in whole or in part with federal funds under this Agreement, shall contain the following statement: "This project was supported by Grant No. 23-G01-1345 awarded by the Montana Board of Crime Control (MBCC) through the office of Justice Programs, US Department of Justice. Points of view in this document are those of the author and do not necessarily represent the official position or policies of the US Department of Justice.” 2. Agreement Management: The Representative for each of the parties shall be responsible for and shall be the contact person for all communications and billings regarding the performance of this Agreement, The Representative for Gallatin County and their contact information are identified on the Face Sheet of this Agreement. The Representative for the Contractor and their contact information are identified on the Face Sheet of this Agreement. 3. Compensation: Gallatin County shall pay an amount not to exceed that specified in MBCC Award box of this Agreement's Face Sheet for the performance of all things necessary for or incidental to the performance of work as set forth in the Statement of Work. Contractor's compensation for services rendered shall be based on the following rates or in accordance with the following terms: 4. Billing Procedures And Payment: a. Gallatin County will pay the Contractor upon acceptance of services provided and receipt of properly completed invoices, which shall be submitted to the County, not more often than quarterly. b. Invoices shall describe and document, to County’s satisfaction, a description of the work performed the progress of the project, and fees. The invoice shall include the Agreement reference number specified on the upper-right corner of each page of this Agreement. c. Payment shall be considered timely if made by County within forty-five (45) calendar days after receipt of properly completed invoices. Payment shall be sent to the address designated by the Contractor. d. Gallatin County may, in its sole discretion, terminate the Agreement or withhold payments claimed by the Contractor for services rendered if the Contractor fails to 17 M R D T F – B o z e m a n P o l i c e D e p a r t m e n t 0 7 / 0 1 / 2 0 2 3 -0 6 / 3 0 / 2 0 2 4 satisfactorily comply with any term or condition of this Agreement. e. No payment in advance or in anticipation of services or supplies to be provided under this Agreement shall be made by Gallatin County. f. The Contractor shall not bill the County for services performed under this Agreement, and the County shall not pay the Contractor, if the Contractor is entitled to payment or has been or will be paid by any other source, including grants, for that service. g. The Contractor is responsible for any audit exceptions or disallowed costs incurred by its own organization. h. Gallatin County is responsible for the oversight and monitoring of your subgrant award in accordance with all applicable statues, regulations, and guidelines. As a subrecipient, you are required to direct questions concerning your subgrant or requests for changes to Gallatin County. Do not contact the MBCC or the federal grantor. 5. Insurance: The Contractor shall provide insurance coverage as set out in this section. The intent of the required insurance is to protect Gallatin County should there be any claims, suits, actions, costs, damages, or expenses arising from any loss or negligent or intentional act or omission of the Contractor or Subcontractor, or agents of either, while performing under the terms of this Agreement. The insurance required shall be issued by an insurance company authorized to do business within the state of Montana. Except for Professional Liability or Errors and Omissions Insurance, the insurance shall name the Gallatin County, its agents, officers, and employees as additional insureds under the insurance policy. All policies shall be primary to any other valid and collectable insurance. The Contractor shall instruct the insurers to give Gallatin County thirty (30) calendar days advance notice of any insurance cancellation, non-renewal, or modification. The Contractor shall submit to the County within fifteen (15) calendar days of the Agreement start date, a certificate of insurance which outlines the coverage and limits defined in this insurance section. During the term of the Agreement, the Contractor shall submit renewal certificates not less than thirty (30) calendar days prior to expiration of each policy required under this section. a. The Contractor shall provide insurance coverage that shall be maintained in full force and effect during the term of this Agreement, as follows: i. Commercial General Liability Insurance Policy: Provide a Commercial General Liability Insurance Policy, including contractual liability, written on an occurrence basis, in adequate quantity to protect against legal liability arising out of Agreement activity but no less than $1,500,000 per occurrence. Additionally, the Contractor is responsible for ensuring that any Subcontractors provide adequate insurance coverage for the activities arising out of subcontracts. ii. Automobile Liability: In the event that performance pursuant to this Agreement 18 M R D T F – B o z e m a n P o l i c e D e p a r t m e n t 0 7 / 0 1 / 2 0 2 3 -0 6 / 3 0 / 2 0 2 4 involves the use of vehicles owned or operated by the Contractor or its Subcontractor, automobile liability insurance shall be required. The minimum limit for automobile liability is $1,500,000 per occurrence, using a Combined Single Limit for bodily injury and property damage. iii. Professional Liability, Errors, and Omissions Insurance: The Contractor shall maintain Professional Liability or Errors and Omissions Insurance. The Contractor shall maintain minimum limits of no less than $1,500,000 per occurrence to cover all activities by the Contractor and licensed staff employed or under contract to the Contractor. Gallatin County, its agents, officers, and employees shall be named as additional insured under this policy. b. Fidelity Insurance: Every officer, director, employee, or agent who is authorized to act on behalf of the Contractor for the purpose of receiving or depositing funds into program accounts, or issuing financial documents, checks, or other instruments of payment for program costs shall be insured to provide protection against loss: i. The amount of fidelity coverage secured pursuant to this Agreement shall be $100,000 or the highest of planned reimbursement for the Agreement period, whichever is lowest. Fidelity insurance secured pursuant to this paragraph shall name Gallatin County as beneficiary. ii. Subcontractors that receive $10,000 or more per year in funding through this Agreement shall secure fidelity insurance as noted above. Fidelity insurance secured by Subcontractors pursuant to this paragraph shall name the Contractor as beneficiary. iii. The Contractor shall provide, at Gallatin County’s request, copies of insurance instruments or certifications from the insurance issuing agency. The copies or certifications shall show the insurance coverage, the designated beneficiary, who is covered, the amounts, the period of coverage, and that Gallatin County will be provided thirty (30) days advance written notice of cancellation. c. Additional Provisions: Above insurance policy shall include the following provisions: i. Additional Insured. The state of Montana, Gallatin County, its elected and appointed officials, agents, and employees shall be named as an additional insured on all general liability, excess, umbrella, and property insurance policies. All insurance provided in compliance with this Agreement shall be primary as to any other insurance or self- insurance programs afforded to or maintained by the State. ii. Identification. The policy must reference Gallatin County’s Grant Agreement number and the Montana Board of Crime Control Agency name. iii. Insurance Carrier Rating. All insurance and bonds should be issued by companies admitted to do business within the state of Montana and have a rating of A-, Class VII or better in the most recently published edition of Best's Reports. Any exception shall 19 M R D T F – B o z e m a n P o l i c e D e p a r t m e n t 0 7 / 0 1 / 2 0 2 3 -0 6 / 3 0 / 2 0 2 4 be reviewed and approved by Gallatin County’s Risk Manager, or the Risk Manager for the State of Montana, before the Agreement is accepted or work may begin. iv. Excess Coverage. By requiring insurance herein, Gallatin County does not represent that coverage and limits will be adequate to protect the Contractor and such coverage and limits shall not limit the Contractor's liability under the indemnities and reimbursements granted to the County in this Agreement. 6. Local Government Contractors that Participate in a Self-Insurance Program: Self-Insured/Liability Pool or Self-Insured Risk Management Program — with prior approval from Gallatin County, the Contractor may provide the coverage above under a self- insured/liability pool or self-insured risk management program. In order to obtain permission from Gallatin County, the Contractor shall provide: (1) a description of its self-insurance program, and (2) a certificate and/or letter of coverage that outlines coverage limits and deductibles. All self-insured risk management programs or self-insured/liability pool financial reports must comply with Generally Accepted Accounting Principles (GAAP) and adhere to accounting standards promulgated by: (1) Governmental Accounting Standards Board (GASB), (2) Financial Accounting Standards Board (FASB), and (3) the Montana State Auditor's annual instructions for financial reporting. Contractor's participating in joint risk pools shall maintain sufficient documentation to support the aggregate claim liability information reported on the balance sheet. The state of Montana, its agents, and employees need not be named as additional insured under a self-insured property/liability pool, if the pool is prohibited from naming third parties as additional insured. Contractors shall provide annually to Gallatin County a summary of coverages and a letter of self insurance, evidencing continued coverage under the Contractor's self- insured/liability pool or self-insured risk management program. Such annual summary of coverage and letter of self insurance will be provided on the anniversary of the start date of this Agreement. 7. Federal Non-Discrimination Requirements: The Contractor will comply with any applicable federal non-discrimination requirements, which may include: • the Omnibus Crime Control Act and Safe Streets Act of 1968 (42 U.S.C. § 3789d); • the Victims of Crime Act (42 U.S.C. § 10604(e)); • the Juvenile Justice and Delinquency Prevention Act of 2002 (42 U.S.C. § 5672(b)); • the Civil Rights Act of 1964 (42 U.S.C. § 2000(d)); • the Rehabilitation Act of 1973 (29 U.S.C. § 794); • the Americans with Disabilities Act of 1990 (42 U.S.C. §§ 12131-34); • the Education Amendments of 1972 (20 U.S.C. §§ 1681,1683,1685-86); • the Age Discrimination Act of 1975 (42 U.S.C. §§ 6101-07); • 28 C.F.R. Part 42 (U.S. Department of Justice Regulations – Non-discrimination, Equal 20 M R D T F – B o z e m a n P o l i c e D e p a r t m e n t 0 7 / 0 1 / 2 0 2 3 -0 6 / 3 0 / 2 0 2 4 Employment Opportunity, Policies and Procedures); • Executive Order 13279 (equal protection of the law for faith-based and community organizations); and • 28 C.F.R. Part 37 (U.S. Department of Justice Regulations — Equal Treatment for Faith- Based Organizations). • The Contractor shall further comply with Federal law prohibiting grant recipients from retaliating against individuals taking action or participating in action to secure rights protected by federal law. • The Contractor is required to ensure compliance with this requirement by any Subcontractor receiving funding from a grant supported with U.S. Department of Justice funds. a. Notification of Findings or Discrimination or Non-Compliance: In the event a state or federal court or a state or federal administrative agency makes a finding of discrimination after a due process hearing on the grounds of race, color, religion, national origin, age, disability, or sex against the Contractor receiving grant funds, the Contractor will forward a copy of the finding to the U.S. Department of Justice, Office of Justice Programs, Office of Civil Rights (OCR) and Gallatin County. The Contractor shall include a statement clearly stating whether or not the finding is related to any grant activity supported with a grant in which U.S. Department of Justice Funds are involved, and identify all open grants utilizing U.S. Department of Justice funding, by Contract number and program title. b. Equal Employment Opportunity Program (EEOP): The Contractor will determine whether it is required to formulate an Equal Employment Opportunity Program (EEOP), in accordance with 28 C.F.R. 42.301 et.seq. If the Contractor is not required to formulate an EEOP, it will submit a certificate form to the U.S. Department of Justice, Office of Justice Programs, Office of Civil Rights (OCR), and Gallatin County indicating that it is not required to develop an EEOP. If the applicant is required to develop an EEOP, but not required to submit the EEOP to the OCR, the applicant will submit a certification to the OCR and Sheriff certifying that it has an EEOP on file which meets the applicable requirements. If the Contractor is awarded a grant of $500,000 or more, and has 50 or more employees, it will submit a copy of its EEOP to the OCR and Gallatin County. Non-profit organizations, federally recognized Indian Tribes, and medical and educational institutions are exempt from the EEOP requirement, but are required to submit a certification form to the OCR to claim the exemption. A copy of the certification form will also be submitted to Gallatin County. Information about civil rights obligations of grantees can be found at http://www.oip.usdoj.gov/about/ocrieeopcomply.htm. 21 M R D T F – B o z e m a n P o l i c e D e p a r t m e n t 0 7 / 0 1 / 2 0 2 3 -0 6 / 3 0 / 2 0 2 4 c. Limited English Proficiency: To ensure compliance with the Omnibus Crime Control and Safe Streets Act of 1968 and Title VI of the Civil Rights Act of 1964, grant recipients must take reasonable steps to ensure that Persons with Limited English Proficiency have meaningful access to services and legal protections. Meaningful access may entail providing language assistance services, including oral and written translation when necessary. Assistance in understanding grant recipient's obligations under the law may be found in the Department of Justice's Guidance to Federal Financial Assistance Regarding Title VI Prohibition Against National Origin Discrimination Affecting Limited English Proficiency Persons (LEP Guidance), which can be found at 67 Fed. Reg. 41455 (June 18, 2002). Additional assistance regarding LEP obligations and information may be found at www.lep.gov. 8. Crime Data Reporting: The agencies named within the inter-agency MOU submitted with the application shall report accurate and timely crime data, including all drug task force crime data in accordance with the Montana Board of Crime Controls’ Crime Reporting Policy (S-02) 9. Order of Precedence: In the event of an inconsistency in this Agreement, the inconsistency shall be resolved by giving precedence in the following order: • Applicable Federal and State of Montana statutes and regulations • Exhibit A – General Terms and Conditions • Exhibit B – Special Terms and Conditions • Exhibit C – Scope of Work • Exhibit D – Budget 22 M R D T F – B o z e m a n P o l i c e D e p a r t m e n t 0 7 / 0 1 / 2 0 2 3 -0 6 / 3 0 / 2 0 2 4 EXHIBIT "C" SCOPE OF WORK The purpose of the Byrne Justice Assistance Grant (JAG) Gang-Drug Task Force Program is to reduce the availability, use, and trafficking of illegal drugs, guns, and the profit of criminal gang and drug organizations by working cooperatively to identify, interdict, dismantle, and prosecute targeted gang and drug-trafficking organizations. JAG Task Forces work across local, state, and federal jurisdictions to dismantle or disrupt mid-to upper-level criminal organizations to make communities safer and healthier by reducing drug availability and organized crime. The contractor will implement the JAG Gang-Drug Task Force Program as specified in the Gallatin County Missouri River Drug Task Force FY 2023 award for Byrne JAG Gang-Drug Task Force Program funding, and in compliance with the Assurances and Certifications made in conjunction with that award. 23 M R D T F – B o z e m a n P o l i c e D e p a r t m e n t 0 7 / 0 1 / 2 0 2 3 -0 6 / 3 0 / 2 0 2 4 EXHIBIT “D” BUDGET AGENCY CONTRACT SERVICES TOTAL BUDGET MBCC BUDGET MBCC MATCH LOCAL MATCH Wages & Benefits $200,536.66 $100,268.33 $ 70,187.83 $ 30,080.50 Overtime $ 0 $ 0 $ 0 $ 0 Total $ 200,536.66 $ 100,268.33 $ 70,187.83 $ 30,080.50 The Justice Assistance Grant funds provided through this grant are from the normal congressional appropriations for the US Department of Justice, and are not from appropriations made under authority of the American Recovery and Reinvestment Act of 2009. Please submit quarterly bills within the month following service delivery with back-up documentation to: Gallatin County Sheriff’s Office 615 South 16th Ave Bozeman, MT 59715 c/o Drew Ellis * BUDGET LINE ITEM ADJUSTMENTS: The Contractor may request that the budget be adjusted up to 5% of the total annual contract amount between line items of cost based on written request from the contractor and written approval from the County. Adjustments must be within existing line items in the contract for items already deemed necessary to the project. 24 Memorandum REPORT TO:City Commission FROM:Susana Montana, Senior Planner Brian Krueger, Development Review Manager Erin George, Deputy Director of Community Development Anna Bentley, Director of Community Development SUBJECT:Consideration of the Final Plat for the 2131 Graf Street Minor Subdivision, Application 23080 (Quasi-Judicial) MEETING DATE:August 8, 2023 AGENDA ITEM TYPE:Community Development - Quasi-Judicial RECOMMENDATION:Having reviewed and considered the Commission Memorandum staff report, application materials, public comment, and all the information presented, I hereby adopt the findings presented in the Memorandum for application 23080 and move to approve the 2131 Graf Street Minor Subdivision Final Plat and authorize the Director of Transportation and Engineering to execute the same on behalf of the City of Bozeman and authorize the Director of Community Development to execute the associated Improvements Agreement on behalf of the City. 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 Graf Street Minor Subdivision is a proposed 5 lot minor subdivision, is within an R-4 (Residential High-density District)-zoned property located directly West of South 19th Avenue, between Lantern Drive and Graf Street. Development plans for the property have been reviewed and approved through a Master Site Plan and Phase I Site Plan, Project Nos. 19308 and 19309. Development of the property would take place in two phases. Phase I is on the north side of the plat located north of an east-west mid-block pedestrian crossing. Phase I consists of 3 lots: Block 1, Lot 1 which is the City Park; Block 1, Lot 2; and Block 2, Lot 1. Phase II is on the southwest side and consists of 2 lots: Block 1, Lot 3 and Block 2, Lot 1. Lot 1, Block 1 represents the southern half of the new Lantern Park which was built with Phase I of the 2131 Graf Apartments project. The northern half of Lantern Park was built by the developer of the Nexus Point Apartments project located immediately to the north. This parkland consists of a combined 3.374 acres located in the Northeast corner of the property. 25 The park includes pavilions, a dog park, a playground area as well as an exercise trail, and equipment. The Site has an approved Master Site Plan for a two-Phase development of 457 apartment dwelling units, a clubhouse, a maintenance building, parking, common open space, landscaping, and the south half of the new Lantern City Park (original Project 19309 and Modifications 22290 and 23086). The development has an approved Phase 1 Site Plan for 198 apartment dwelling units which is under construction and partially occupied. The development was approved as rental housing on the existing, single lot under single ownership. A Property Owners Association (POA) will be established with the Final Plat along with a Covenants, Conditions and Restrictions (CC&R) document outlining how common areas and facilities would be properly maintained. This Final Plat requires an Improvements Agreement (IA) and Financial Surety to allow concurrent construction of (1) street light improvements on South 21st Avenue and Graf Street adjacent to Phase II property; (2) boulevard landscaping improvements on South 21st Avenue adjacent and Graf Street adjacent to Phase II property; and (3) sod improvements in the parkland (Lot 1, Block 1) area. A surety bond from Payne West in the amount of $272,640.45 (150% of estimated construction cost of improvements) has been submitted to the City. The IA and Financial Surety guarantees the installation of these improvements within one year of approval of the final plat, pursuant to the Bozeman Municipal Code (BMC) Sections 38.270.030.B and D. Therefore, based on the summary review provided in the attachment, the City Transportation and Engineering Department and Department of Community Development have reviewed the application against the conditions of the preliminary plat approval and, as a result, find that the 2131 Graf Street Minor Subdivision Final Plat application may be approved by the City Commission. UNRESOLVED ISSUES:None ALTERNATIVES:None suggested FISCAL EFFECTS: Fiscal impacts are undetermined at this time but will include increased property tax revenues from new development, along with increased costs to deliver municipal services to the property. Attachments: 23080 2131 Graf St FP CC memo.pdf City Attorney Certificate.pdf Report compiled on: August 1, 2023 26 Commission Memorandum REPORT TO: Mayor and City Commission FROM: Susana Montana, Senior Planner Brian Krueger, Development Review Manager Erin George, Deputy Director of Community Development Anna Bentley, Director of Community Development SUBJECT: The Final Plat for the 2131 Graf Street Minor Subdivision STRATEGIC PLAN: 4.2 High Quality Urban Approach. Continue to support high quality planning, ranging from building design to neighborhood layouts, while pursuing urban approaches to issues such as multimodal transportation, infill, density, connected trails and parks, and walkable neighborhoods. MEETING DATE: August 8, 2023 AGENDA ITEM TYPE: Consent—Quasi-Judicial RECOMMENDATION: Approve the Final Plat for the 2131 Graf Street Minor Subdivision and authorize the Director of Transportation and Engineering to execute the same on behalf of the City of Bozeman and authorize the Director of Community Development to execute the associated Improvements Agreement on behalf of the City. BACKGROUND: On March 21, 2023, the Applicant, Graf Apartments LLC, submitted an application for a Final Plat for the 25.999-acre subject property. The initial submittal was found to be incomplete, and a revised application was resubmitted on June 26, 2023. The revised Final Plat submittal was found by the City’s Development Review Committee (DRC) to (1) satisfy all the conditions of approval and code provisions of the February 7, 2023-approved Preliminary Plat (Project No. 22188), (2) conforms to standards, and (3) is sufficient for approval. The 2131Graf Street Minor Subdivision is a proposed 5 lot minor subdivision, is within an R-4 (Residential High-density District)-zoned property located directly West of South 19th Avenue, between Lantern Drive and Graf Street. Development plans for the property have been reviewed and approved through a Master Site Plan and Phase I Site Plan, Project Nos. 19308 and 19309. South 21st Avenue would be extended between Lantern Drive and Graf Street with Phase I. Water and sewer main extensions for the entire property would be installed to serve the minor subdivision with Phase I. A 2.116-acre City park has been built on the north side of the subdivision on Block 27 1, Lot 1. This park was approved with the Master Site Plan which, now built, is 3.374 acres in size and has been inspected and accepted by the City Parks Department for maintenance. Development of the property would take place in two phases. Phase I is on the north side of the plat located north of an east-west mid-block pedestrian crossing. Phase I consists of 3 lots: Block 1, Lot 1 which is the City Park; Block 1, Lot 2; and Block 2, Lot 1. Phase II is on the southwest side and consists of 2 lots: Block 1, Lot 3 and Block 2, Lot 1. Lot 1, Block 1 represents the southern half of the new Lantern Park for which the was built with Phase I of the 2131 Graf Apartments project. The northern half of Lantern Park was built by the developer of the Nexus Point Apartments project located immediately to the north. This parkland consists of a combined 3.374 acres located in the Northeast corner of the property. The park includes pavilions, a dog park, a playground area as well as an exercise trail, and equipment. The Site has an approved Master Site Plan for a two-Phase development of 457 apartment dwelling units, a clubhouse, a maintenance building, parking, common open space, landscaping, and the south half of the new Lantern City Park (original Project 19309 and Modifications 22290 and 23086). The development has an approved Phase 1 Site Plan for 198 apartment dwelling units. The development was approved as rental housing on the existing, single lot under single ownership. A Property Owners Association (POA) will be established with the Final Plat along with a Covenants, Conditions and Restrictions (CC&R) document outlining how common areas and facilities would be properly maintained. This Final Plat requires an Improvements Agreement (IA) and Financial Surety to allow concurrent construction of (1) street light improvements on South 21st Avenue and Graf Street adjacent to Phase II property; (2) boulevard landscaping improvements on South 21st Avenue adjacent and Graf Street adjacent to Phase II property; and (3) sod improvements in the parkland (Lot 1, Block 1) area. A surety bond from Payne West in the amount of Two Hundred Seventy Two Thousand Six Hundred Forty and 45/100 Dollars ($272,640.45) (150% of estimated construction cost of improvements) has been submitted to the City. The IA and Financial Surety guarantees the installation of these improvements within one year of approval of the final plat, pursuant to the Bozeman Municipal Code (BMC) Sections 38.270.030.B and D. Therefore, based on the summary review provided below, the City Transportation and Engineering Department and Department of Community Development have reviewed the application against the conditions of the preliminary plat approval and, as a result, find that the 2131 Graf Street Minor Subdivision Final Plat application may be approved by the City Commission. §76-3-611(1), MCA, provides that the City Commission shall approve the plat only if: (a) it conforms to the conditions of approval set forth on the preliminary plat and to the terms of this chapter and regulations adopted pursuant to this chapter; and (b) the County Treasurer has certified that all real property taxes and special assessments assessed and levied on the land to be subdivided have been paid. The County Treasurer has certified that all real property taxes and special assessments assessed and levied on the land to subdivide have been paid. All terms and conditions of the preliminary plat approval have been met. 28 The signed Findings of Fact for the Preliminary Plat can be viewed at this highlighted link. UNRESOLVED ISSUES: None identified. ALTERNATIVES: None suggested or proposed. FISCAL EFFECTS: Fiscal impacts are undetermined at this time but will include increased property tax revenues from new development, along with increased costs to deliver municipal services to the property. Report compiled on: August 1, 2023 Attachment Link: Application materials can be reached at this highlighted link. 29 30 Memorandum REPORT TO:City Commission FROM:Griffin Nielsen, Project Engineer John Alston, Utilities Director SUBJECT:Authorize the City Manager to sign a Professional Services Agreement with the firm of Advanced Engineering and Environmental Services, LLC providing engineering services to design mechanical and structural upgrades to the City's municipal water system pressure reducing valves MEETING DATE:August 8, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign a Professional Services Agreement with the firm of Advanced Engineering and Environmental Services, LLC providing engineering services to design mechanical and structural upgrades to the City's municipal water system pressure reducing valves. STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:The City has twenty-three existing PRVs controlling five pressure zones within the municipal water distribution system. The installation date of the PRVs range from 1998 to 2019. PRV vault access requires the use of confined space entry equipment and procedures and can be complicated by groundwater infiltration or stormwater inflow to the vault. With Water Division staff visiting all PRV’s a minimum of biannually, the confined space access and wet vaults complicates routine operation and maintenance activities. Upgrading the existing PRV’s was recommended within the City’s updated Water Facility Plan, completed in 2017, to enhance safety by addressing the access challenges as well as improve mechanical functionality, and prepare the vaults for SCADA upgrades in the future to allow for remote operation. The City included upgrades as a project in the Capital Improvement Plan as Project No. W72. City Engineering staff advertised a request for proposal to provide professional services to design the PRV upgrades. Two proposal were received. City staff determined that the submitting firm, Advanced Engineering and Environmental Services, LLC (AE2S) was qualified to provide the necessary services. A detailed breakdown of the services provided under this agreement is included under Exhibit A of the attached PSA. It should be noted that scope of services does not provide for final design, bidding, and construction inspection services. An amendment is anticipated to this 31 professional services agreement scope of service for final design once preliminary design is complete. UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the Commission FISCAL EFFECTS:The total contract amount is $84,600, per the attached fee schedule shown in Exhibit A of the PSA. This project has been identified in the City Capital Improvement Plan as project No. W72, and has a total of $2,000,000 in funds budgeted within FY23 which will be carried forward to FY24. Attachments: PSA with AE2S for CIP W72 PRV Ph I Upgrades.pdf Report compiled on: July 27, 2023 32 Bozeman PRV Phase I Upgrade Page 1 of 11 P05097-2022-004 PROFESSIONAL SERVICES AGREEMENT THIS IS AN AGREEMENT made as of , 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 N. Rouse Ave., Bozeman, Montana, 59771 (OWNER) and Advanced Engineering and Environmental Services, LLC (ENGINEER). Whereas the accomplishment of the work and services described in this Agreement is essential to the OWNER'S public works improvement program. Whereas the OWNER intends to and has selected the ENGINEER to provide necessary and professional engineering services for the project. Whereas the ENGINEER represents that it is willing and qualified to perform the professional engineering services for this project described in this Agreement. Therefore, in consideration of the foregoing recitals and the mutual covenants and conditions contained herein, the parties agree as follows: ARTICLE 1 - ENGINEERING SERVICES 1.1. ENGINEER will provide the services set forth in Exhibit A – Project Scope and Fee Definition (“Engineering Services”), which is hereby incorporated in and made a part of this Agreement. ARTICLE 2 - ENGINEER'S RESPONSIBILITIES 2.1. ENGINEER shall perform for OWNER professional engineering services in all phases of the Project to which this Agreement applies as hereinafter provided. These services will include, but not be limited to, serving as OWNER's professional engineering representative for the Project, providing professional engineering consultation and advice and furnishing customary civil and structural engineering services incidental thereto. 2.2. The ENGINEER shall furnish all labor, materials, equipment, supplies, and incidentals necessary to conduct and complete the ENGINEER'S portions of the Project and to prepare and deliver to the OWNER all data, reports, plans, specifications, and recommendations as designated herein. 2.3. The ENGINEER shall ascertain such information as may have a bearing on the work from local units of government, public, and private organizations and shall be authorized to procure information from other authorities as to the extent of these contacts and the results thereof. 2.4. The ENGINEER'S work shall be in accordance with the standards of sound engineering practices. 2.5. The ENGINEER shall name a Principal-In-Charge for the duration of the project. The Principal-In-Charge shall be Grant Meyer, PE. 2.6. The ENGINEER shall name a Project Manager who shall be the liaison between the ENGINEER and the OWNER. The Project Manager shall be Brian Viall, PE. The OWNER may name a Task Director who would be the liaison between the ENGINEER and the OWNER during the design segment of the Project. 2.7. The ENGINEER shall submit an estimated progress schedule at the beginning of the work, and monthly progress reports thereafter until the project is completed. 33 Bozeman PRV Phase I Upgrade Page 2 of 11 P05097-2022-004 ARTICLE 3 - OWNER'S RESPONSIBILITIES 3.1 The OWNER shall name a Task Director who shall be the liaison between the ENGINEER and the OWNER during DESIGN segment of the Project. The Task Director designated shall be Griffin Nielsen, PE . 3.2 The OWNER shall have the right of review and examination of the ENGINEER'S work at all times. 3.3 The OWNER shall make available all records (record drawings, construction records, etc.) indicating the existing configuration of the city utilities. 3.4 The OWNER will be responsible for advertising bid openings. 3.5 The OWNER shall attend the pre-bid conferences, bid openings, pre-construction conferences, construction progress and other job related meetings, substantial completion inspections and final payment inspections. ARTICLE 4 - BASIC ENGINEERING SERVICES The ENGINEER shall render professional Engineering Services as follows: 4.1 PRE-DESIGN INVESTIGATION PHASE After written authorization to proceed, ENGINEER shall: 4.1.1 Perform those tasks identified under “12.3. Phase 030 – Pre-Design Investigation Phase” in the Scope and Fee Definition of Exhibit A with respect to the Assumptions & Exclusions identified in Paragraph 12.2 of Exhibit A. 4.1.7. Furnish 3 copies and an electronic copy of the Study and Report documents and review them in person with OWNER. The Pre-design Investigation Phase will be completed and submitted on or before the scheduled phase completion date presented in EXHIBIT B: Bozeman PRV Phase 1 Upgrade Schedule following written authorization from OWNER to ENGINEER to proceed with that phase of services. 4.2 PRELIMINARY DESIGN PHASE After acceptance of the pre-design report and receipt of written authorization to proceed with the Preliminary Design Phase, ENGINEER shall: 4.2.1. Perform those tasks identified under “12.4. Phase 031 – Preliminary Design Phase” in the Scope and Fee Definition of Exhibit A with respect to the Assumptions & Exclusions identified in Paragraph 12.2 of Exhibit A. The Preliminary Design Phase will be completed and submitted on or before the scheduled phase completion date presented in EXHIBIT B: Bozeman PRV Phase 1 Upgrade Schedule following written authorization from OWNER to ENGINEER to proceed with that phase of services. 4.3 FINAL DESIGN PHASE – Reserved. 4.4 BIDDING OR NEGOTIATING PHASE – Reserved. 4.5 CONSTRUCTION PHASE – Reserved. 34 Bozeman PRV Phase I Upgrade Page 3 of 11 P05097-2022-004 ARTICLE 5 - ADDITIONAL SERVICES 5.1. If OWNER wishes ENGINEER to perform any of the following Additional Services, OWNER shall so instruct ENGINEER in writing, and ENGINEER shall perform or obtain from others such services and will be paid therefor as provided in this Agreement: 5.1.1. Legal land surveys performed to obtain data for preparing easements and rights-of-way descriptions. 5.1.2. Preparation of applications and supporting documents for governmental agencies in addition to those required under Basic Services; preparation or review of environmental studies and related services; and assistance in obtaining environmental approvals. 5.1.3. Services resulting from significant changes in the general scope, extent or character of the Project or major changes in documentation previously accepted by OWNER where changes are due to causes beyond ENGINEER's control. 5.1.4. Providing renderings or models. 5.1.5. Preparing documents for alternate bids requested by OWNER for work not executed or for out-of- sequence work. 5.1.6. Providing other services not otherwise provided for in this Agreement, including services normally furnished by the OWNER as elsewhere herein described. 5.1.7. Furnishing the services of independent professional associates or consultants for other than Basic Services. 5.2. When required by the Contract Documents in circumstances beyond ENGINEER's control, ENGINEER shall perform or obtain from others any of the following Additional Services as circumstances require during construction and without waiting for specific instructions from OWNER, and ENGINEER will be paid therefor as provided in this Agreement: 5.2.1. Services in connection with work directive changes and change orders to reflect the changes requested by OWNER if the resulting change in compensation for Basic Services is not commensurate with the additional services rendered. 5.2.2. Services in making revisions to Drawings and Specifications occasioned by the OWNER'S acceptance of substitutions proposed by Contractor(s); services after the award of each contract in evaluating and determining the acceptability of an unreasonable or excessive number of substitutions proposed by Contractor; and evaluating an unreasonable or extensive number of claims submitted by Contractor(s) or others in connection with the work. 5.2.3. Services resulting from significant delays, changes or price increases occurring as a direct result of materials, equipment or energy shortages. 5.2.4. Additional or extended services during construction made necessary by (1) work damage by fire or other causes during construction, (2) a significant amount of defective or neglected work of any Contractor, (3) acceleration of the progress schedule involving services beyond normal working hours, (4) default by any Contractor. ARTICLE 6 - COMPENSATION FOR ENGINEERING SERVICE 6.1 LUMP SUM AGREEMENT FOR BASIC SERVICES AND EXPENSES OF ENGINEER 35 Bozeman PRV Phase I Upgrade Page 4 of 11 P05097-2022-004 6.1.1 Payment. The OWNER shall for design phase services performed as Basic Engineering Services under sections 4.1 through 4.2 of this Agreement pay a total sum in the amount of $ 80,600.00 for such services. 6.1.2 Payment Schedule. Total cumulative payments for the design phase engineering services (sections 4.1 through 4.2) shall not exceed the following ceilings: $ 24,180.00 (30% of design fee) until the Pre-design Investigation Phase deliverables have been submitted to the OWNER. $ 72,540.00 (90% of design fee) until the Preliminary Design Phase deliverables have been submitted to the OWNER and review authorities. 6.1.3 General. Engineer shall submit monthly statements for services rendered. The statements shall be based upon Engineer's estimate of the proportion of the total services actually completed at the time of billing, subject to any limitations on Payments based on completion of tasks or specific retainage requirements pursuant to the payment provisions of this Agreement. 6.1.4 Reimbursable Expenses. Only those expenses specifically identified for payment under section 6.2 of this Agreement are reimbursable. All other design related expenses are included in the Lump Sum Payment for the Basic services (4.1 through 4.2) and are not separately reimbursable. Additional Services specifically identified under the scope of design services for payment under 6.1 are not separately reimbursable. 6.2 DIRECT LABOR COST PAYMENT FOR BASIC SERVICES AND EXPENSES OF ENGINEER. 6.2.4 The OWNER shall pay an amount for Additional Services rendered by the ENGINEER and approved in writing by the OWNER on the basis of the ENGINEER'S Direct Labor Costs times a factor of 3.20 , or an amount otherwise negotiated at the time such services are requested and approved by the OWNER. ARTICLE 7 - MEANING OF TERMS 7.1 AGREEMENT As used herein the term "this Agreement" refers to the contents of this document and its Exhibits attached hereto and referred to as if they were part of one and the same document. 7.2 CONSTRUCTION COSTS The construction cost of the entire Project (herein referred to as "Construction Cost") means the total cost to OWNER of those portions of the entire Project designed and specified by ENGINEER, but it will not include ENGINEER's compensation and expenses, the cost of land, rights-of-way, or compensation for or damages to, properties unless this Agreement so specifies, nor will it include OWNER's legal, accounting, insurance counseling or auditing services, or interest and financing charges incurred in connection with the Project or the cost of other services to be provided by others to OWNER. 7.3 DIRECT LABOR COSTS Direct Labor Costs used as a basis for payment mean the actual salaries and wages paid to all ENGINEER's personnel engaged directly on the Project, including, but not limited to, engineers, architects, surveyors, designers, drafters, specification writers, estimators, other technical and business personnel; but does not include indirect payroll related costs or fringe benefits. For the purposes of this Agreement the principals and employees of the ENGINEER maximum billable Direct Labor Costs are: See Exhibit C – Engineer’s Maximum Billable Direct Labor Costs & Reimbursable Expense Rates 36 Bozeman PRV Phase I Upgrade Page 5 of 11 P05097-2022-004 7.4 REIMBURSABLE EXPENSES Reimbursable Expenses mean the actual expenses incurred by ENGINEER or ENGINEER's independent professional associates or consultants under section 5 directly in connection with the Project, such as expenses for: transportation and subsistence incidental thereto; obtaining bids or proposals from Contractor(s); subsistence and transportation of Resident Project Representatives and their assistants; toll telephone calls and telegrams; reproduction of reports, Drawings, Specifications, Bidding Documents and similar Project-related items; and if authorized in advance by OWNER, overtime work requiring higher than regular rates. In addition, when compensation for Basic Services is on the basis of Direct Labor Costs method of payment, Reimbursable Expenses will also include the amount billed to ENGINEER by special consultants employed by ENGINEER and authorized by OWNER (other than as an authorized Additional Services) and will also include expenses incurred for computer time and other specialized equipment, including an appropriate charge for previously established programs and expenses of photographic production techniques. ARTICLE 8 - PAYMENT PROVISIONS 8.1 TIMES OF PAYMENTS. ENGINEER may submit monthly statements for Basic Services and approved Additional Services rendered and for Reimbursable Expenses incurred; however, payments shall not exceed the ceilings provided in 6.1 and 6.2. Final payment shall be made only after acceptance of the project by the OWNER. If OWNER disputes the amount of the billing, OWNER will notify the ENGINEER in writing within ten (10) calendar days of the receipt of bill of the dispute. 8.2 REQUESTS FOR PAYMENT. Each request for payment shall include a documentation summary of the period incremental man hours incurred, direct labor rates and billed rates, detail of reimbursable costs, total period billing, and total cumulative billing. When requested by OWNER services for distinct project segments shall be accounted and billed separately. 8.3 PAYMENT UNDER TERMINATION. In the event of termination by the OWNER upon the completion of any phase of the Basic Services, progress payments due ENGINEER for services rendered through such phase shall constitute total payment for such services. In the event of such termination by OWNER during any phase of the Basic Services, ENGINEER also will be reimbursed for the charges of pre-approved independent professional associates and consultants employed by ENGINEER to render Basic Services, and paid for services rendered during that phase on the basis of the payment provisions of the Agreement. In the event of any such termination, ENGINEER will be paid for unpaid pre-approved Additional Services and unpaid Reimbursable Expenses which are authorized under this agreement. ARTICLE 9 - GENERAL CONSIDERATIONS 9.1 TERMINATION OF AGREEMENT 9.1.1 The sole right is hereby reserved to the OWNER to terminate this Engineering Agreement for any and all causes or for its convenience at any time upon fifteen (15) days written notice to the ENGINEER. 9.1.2 If termination for default is effected by the OWNER, an equitable adjustment in the price provided for in this Agreement shall be made, but (1) no amount shall be allowed for anticipated profit on unperformed services or other work, and (2) any payment due to the ENGINEER at the time of termination may be adjusted to cover any additional costs to the OWNER because of the ENGINEER's default. If termination for convenience is effected by the OWNER, the equitable adjustment shall include a reasonable profit, as determined by owner, for services or other work performed. The equitable adjustment for any termination shall provide for payment to the ENGINEER for services rendered and expenses incurred prior to the termination, in addition to termination settlement costs reasonably incurred by the ENGINEER relating to commitments which had become firm prior to the termination. 37 Bozeman PRV Phase I Upgrade Page 6 of 11 P05097-2022-004 9.1.3 Upon receipt of a termination action under paragraph 9.1.2, the ENGINEER shall (1) promptly discontinue all affected work (unless the notice directs otherwise), and (2) deliver or otherwise make available to the OWNER within ten (10) days copies of all data, design drawings, specifications, reports, estimates, summaries and such other information and materials as may have been accumulated by the ENGINEER in performing this Agreement, whether completed or in process. 9.1.4 In the event this Contract is terminated prior to completion, the original copies of the ENGINEER'S data, recommendations, plans, specifications, analysis and other related documents prepared by the ENGINEER prior to said termination shall be delivered to and become the property of the OWNER. 9.1.5 Upon termination, the OWNER may take over the work and may award another party an Agreement to complete the work under this Agreement. 9.1.6 OWNER'S right to terminate is in addition to any other remedies OWNER may have under the law. 9.2 INSPECTION AND AUDIT All books, papers, records, payrolls, vouchers and invoices relating to costs and expenditures incurred as to the performance of the services by the ENGINEER hereunder shall be made available to the OWNER, or their authorized representatives for audit and review, at the ENGINEER'S respective offices at all reasonable times during the contract period and for three years from the date of final payment. 9.3 EMPLOYMENT The ENGINEER warrants that he has not employed or retained any company or persons, other than a bona fide employee, working solely for the ENGINEER, to solicit to secure this contract, and that he has not paid or agreed to pay any company or person, other than bona fide employees working solely for the ENGINEER, any fee, commission, percentage, brokerage fee, gifts or any other considerations contingent upon or resulting from the award or making of this Contract. For breach or violation of this warranty, the OWNER shall have the right to annul the Contract without liability or in its discretion to deduct from the price or consideration or otherwise recover the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee. All employees of the ENGINEER or other persons while engaged in the performance of work or services required by the ENGINEER shall be considered employees of the ENGINEER only and not of the OWNER. 9.4 NONDISCRIMINATION AND EQUAL PAY The ENGINEER agrees that all hiring by ENGINEER of persons performing this Agreement shall be on the basis of merit and qualifications. The ENGINEER will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The ENGINEER 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 ENGINEER 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. The ENGINEER 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). ENGINEER must report to the City any violations of the Montana Equal Pay Act that ENGINEER has been found guilty of within 60 days of such finding for violations occurring during the term of this Agreement. 38 Bozeman PRV Phase I Upgrade Page 7 of 11 P05097-2022-004 The ENGINEER shall require these nondiscrimination terms of its sub-consultants providing services under this agreement. 9.5 SUBLETTING OR ASSIGNING OF WORK The ENGINEER shall not sublet or assign any of the work covered herein without prior written approval of the OWNER. 9.6 STANDARD OF CARE In providing services under this agreement, the ENGINEER will perform in a manner consistent with the degree of care and skill ordinarily exercised by members of the same profession currently practicing under similar circumstances. If any service should be found to be not in conformance with this standard, the ENGINEER shall, at the OWNER’s request, re-perform the service at its own expense. Engineer shall also, at its own expense, make such changes, modifications or additions to the project which are made necessary as a result of the initial non-performance or the re-performance of services. The OWNER’s rights herein are in addition to any other remedies the OWNER may have under the law. 9.7 LEGAL RELATIONS: 9.7.1 The ENGINEER shall, consistent with the standard care, comply with those Federal, State, and Local laws and ordinances applicable to the work to be done. 9.7.2 For claims, causes of action, losses, or damages (collectively, “Claims”) asserted by third-parties and arising out of the performance of professional services by the ENGINEER, the ENGINEER shall indemnify and hold the Owner and the Owner’s officers, directors, and employees harmless from such Claims, including reasonable attorneys’ fees and expenses recoverable under applicable law, but only to the extent such Claims are caused by the negligence or intentional misconduct of the ENGINEER, its employees and its consultants in the performance of professional services under this Agreement. The ENGINEER’S obligation to indemnify and hold the Owner and the Owner’s officers and employees harmless under this section 9.7.2 does not include a duty to defend. 9.7.3. For Claims asserted by third-parties that do not arise out of the performance of professional services by the ENGINEER, the ENGINEER shall, to the extent covered by the ENGINEER’S insurance, defend, indemnify, and hold the Owner and the Owner’s officers, directors, and employees harmless from such Claims, including reasonable attorneys’ fees and expenses recoverable under applicable law, but only to the extent such Claims are caused by the negligence or intentional misconduct of the ENGINEER, its employees and its consultants. 9.7.4 In the event the OWNER is found proportionately responsible for any damages ultimately awarded to a plaintiff or plaintiffs in any lawsuit, the ENGINEER will be responsible for only those damages, costs, or liabilities as are attributable to the ENGINEER’S percent of fault as compared with 100% of the fault giving rise to the damages. Should the OWNER be found responsible for negligence by its own officers, directors, agents or employees, then in that event the OWNER agrees to reimburse the ENGINEER for the reasonable attorney’s fees and costs incurred in any defense of the OWNER in an amount proportional to the fault attributed to the OWNER. The indemnity required herein shall not be limited by reason of the specification of any particular insurance coverage in this Agreement. 9.7.5 Should either OWNER or ENGINEER be held responsible, for any damages, costs or liabilities resulting from intentional misconduct by any officer, director, agent or employee in connection with the work specified in this Agreement, then in that event, that party shall indemnify and hold harmless the other as to any damages, costs or liabilities that result from or arise out of that intentional misconduct, including reasonable attorney’s fees and costs which shall include costs and salary of the city attorney or other in-house counsel. Further, notwithstanding the obligations set forth in paragraphs 9.7.2 and 9.7.3 above, the ENGINEER agrees to defend OWNER where the OWNER’S alleged liability arises from intentional misconduct by the ENGINEER. Should the OWNER be found responsible for intentional misconduct by its own officer, director, agent or employee, then OWNER agrees to reimburse ENGINEER for the reasonable attorney’s fees and costs incurred in any defense of the OWNER. 39 Bozeman PRV Phase I Upgrade Page 8 of 11 P05097-2022-004 9.7.6 The ENGINEER shall perform this agreement as an independent contractor, and as such, is responsible to the OWNER only as to the results to be obtained in the work herein specified, and to the extent that the work shall be done in accordance with the terms, plans and specifications. The ENGINEER shall have and maintain complete control over all of its employees, subcontractors, agents and operations, being responsible for any required payroll deductions and providing required benefits, such as, but not limited to worker’s compensation with statutory limits, and unemployment insurance. 9.8 INSURANCE The ENGINEER shall secure and furnish to the OWNER certificate of insurance, therein, naming the OWNER as an additional insured, to include thirty (30) days notice of cancellation or non-renewal. Without limiting any of ENGINEER's obligations hereunder, ENGINEER shall secure and maintain, until the work is completed and accepted by the OWNER, insurance coverage naming the OWNER as additional insured with minimum insurance coverage as follows: 40 Bozeman PRV Phase I Upgrade Page 9 of 11 P05097-2022-004 Type of Coverage Limits Employers' Liability: $ 1,000,000. per accident General Liability: Bodily Injury & Property Damage Single and combined $ 1,000,000. per accident General Aggregate: $ 2,000,000. Excess Liability Coverage (umbrella) $1,000,000. each occurrence Automobile: Bodily Injury covering all $ 1,000,000 each person automobiles, trucks, tractors, trailers, or $ 1,000,000 each occurrence other automotive equip- ment whether owned or rented by Engineer or owned by employees of Engineer. Property Damage covering $ 1,000,000 each occurrence all automobiles, trucks, tractors, trailers or other automotive equipment whether owned or rented by Engineer or owned by employees of Engineer OR Bodily Injury & Property $1,000,000 each occurrence Damage Single and combined In addition to the above insurance coverage, the ENGINEER shall secure and maintain, until the work is completed and accepted by the OWNER, and without naming OWNER as an additional insured, professional errors and omissions coverage as follows: Professional Errors & Omissions: $ 1,000,000 per claim and aggregate each occurrence 41 Bozeman PRV Phase I Upgrade Page 10 of 11 P05097-2022-004 9.9 ENDORSEMENT The ENGINEER shall place his endorsement on all drawings and other data furnished by him. 9.10 OWNERSHIP OF DOCUMENTS The parties admit and agree the documents produced under this agreement are not intended or represented to be suitable for reuse by OWNER or any other individual on any other project. Any reuse without written verification or adaptation by ENGINEER will be at OWNER’s sole risk and without liability or legal exposure to ENGINEER, or to ENGINEER’s independent professional associates or consultants. Files in electronic media format of text, data, graphics, or of other types that are furnished by ENGINEER to OWNER are only for convenience of owner. Any conclusion or information obtained or derived from such electronic files will be at the user's sole risk. 9.11 PUBLIC INFORMATION The ENGINEER shall not issue any statements, releases or information for public dissemination without prior approval of the OWNER. 9.12 PROPRIETARY RIGHTS If patentable discoveries or inventions should result from work required herein, all rights accruing from such discoveries or inventions shall be joint property of the ENGINEER and the OWNER. Provided that the OWNER, state agencies or political subdivisions and the United States Government shall have the irrevocable, nonexclusive, nontransferable and royalty-free license to use each invention in the manufacture, use and disposition, according to law, of any article or material, and in the use of any method that may be developed as part of the work described and contemplated herein. 9.13 RECORDS The ENGINEER shall maintain accounting records and other evidence pertaining to the cost incurred and to make the records available at all reasonable times during the Contract term and for one (1) year from the date of final payment. Such accounting records and other evidence pertaining to the cost incurred will be made available for inspections by OWNER. 9.14 SUCCESSORS IN INTEREST The covenants, agreements and all statements in this Contract apply to and shall be binding on the heirs, personal representatives, successors and assigns of the respective parties. 42 Bozeman PRV Phase I Upgrade Page 11 of 11 P05097-2022-004 9.15 ATTORNEY'S FEES AND COSTS That in the event it becomes necessary for either Party of this Contract to retain an attorney to enforce any of the terms or conditions of this Contract 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 to include City Attorney. 9.16 MODIFICATIONS AND AMENDMENTS That any amendment or modification of this Contract or any provisions herein shall be made in writing or executed in the same manner as this original document and shall after execution become a part of this Contract. 9.17 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, Park 1 MCA. In witness Whereof, the Parties hereto do make and execute this Agreement the day and year first above written or as recorded in an electronic signature. CITY OF BOZEMAN, MONTANA ENGINEER BY: BY: (City Manager) (President) DATE: DATE: ATTEST: BY: (City Clerk) 43 Exhibit A – Project Scope and Fee Definition Bozeman PRV Phase I Upgrade 097-2021-000 – Bozeman PRV Improvements Ph I Exhibit A Page 1 of 8 EXHIBIT A TO AGREEMENT BETWEEN OWNER AND ENGINEER FOR PROFESSIONAL SERVICES Project Scope and Fee Definition This Exhibit is attached to, made a part of and incorporated by reference with the Agreement made on , between CITY OF BOZEMAN (OWNER) and Advanced Engineering and Environmental Services, LLC (ENGINEER) providing for professional engineering services. Article 12 – PROJECT SCOPE AND FEE DEFINITION 12.1. – Definitions & Acronyms: 1. AACE – Refers to AACE International Recommended Practice No. 18-97: Cost Estimate Classification System – as applied in engineering, procurement, and construction for the process industries (2011). 2. Addenda - Written or graphic instruments issued prior to the opening of bids which clarify, correct, or change the bidding requirements or the proposed Construction Contract Documents. 3. Authority Having Jurisdiction (AHJ) – Governmental or non-governmental entities responsible for enforcing building codes, fire codes, and other regulations in a given jurisdiction. 4. Constituent of Concern—Asbestos, petroleum, radioactive material, polychlorinated biphenyls (PCBs), hazardous waste, and any substance, product, waste, or other material of any nature whatsoever that is or becomes listed, regulated, or addressed pursuant to (a) the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §§9601 et seq. (“CERCLA”); (b) the Hazardous Materials Transportation Act, 49 U.S.C. §§5501 et seq.; (c) the Resource Conservation and Recovery Act, 42 U.S.C. §§6901 et seq. (“RCRA”); (d) the Toxic Substances Control Act, 15 U.S.C. §§2601 et seq.; (e) the Clean Water Act, 33 U.S.C. §§1251 et seq.; (f) the Clean Air Act, 42 U.S.C. §§7401 et seq.; or (g) any other federal, State, or local statute, law, rule, regulation, ordinance, resolution, code, order, or decree regulating, relating to, or imposing liability or standards of conduct concerning, any hazardous, toxic, or dangerous waste, substance, or material. 5. Construction Contract—The entire and integrated written contract between the Owner and Contractor concerning the Work. 6. Construction Contract Documents—Those items designated as “Contract Documents” in the Construction Contract, and which together comprise the Construction Contract. 7. Construction Cost—The cost to Owner of the construction of those portions of the entire Project designed or specified by or for Engineer under this Agreement, including construction labor, services, materials, equipment, insurance, and bonding costs, and allowances for contingencies. Construction Cost does not include costs of services of Engineer or other design professionals and consultants; cost of land or rights-of- way, or compensation for damages to property; Owner’s costs for legal, accounting, insurance counseling, or auditing services; interest or financing charges incurred in connection with the Project; or the cost of other services to be provided by others to Owner. Construction Cost is one of the items comprising Total Project Costs. 8. Constructor—Any person or entity (not including the Engineer, its employees, agents, representatives, and Consultants), performing or supporting construction activities relating to the Project, including but not limited to Contractors, Subcontractors, Suppliers, Owner’s work forces, utility companies, other contractors, 44 Exhibit A – Project Scope and Fee Definition Bozeman PRV Phase I Upgrade 097-2021-000 – Bozeman PRV Improvements Ph I Exhibit A Page 2 of 8 construction managers, testing firms, shippers, and truckers, and the employees, agents, and representatives of any or all of them. 9. Contractor—The entity or individual with which Owner enters into a Construction Contract. 10. DSSP – Design Standards and Specifications Policy – The City of Bozeman, Montana’s Design Standards and Specifications Policy adopted by City Ordinance 1611 on April 5, 2004, Addenda 1-7, inclusive. 11. Internet Service Provider (ISP) / Broadband Utility – Used interchangeably to refer to the Owner’s Internet Service Provider. 12. Electrical Utility - Northwestern Energy 13. Engineer’s Opinion of Probable Construction Costs (EOPCC) – Engineer’s opinions of probable Construction Costs made on the basis of Engineer’s experience, qualifications, and general familiarity with the construction industry. However, because Engineer has no control over the cost of labor, materials, equipment, or services furnished by others, or over contractors’ methods of determining prices, or over competitive bidding or market conditions, Engineer cannot and does not guarantee that proposals, bids, or actual Construction Cost will not vary from opinions of probable Construction Cost prepared by Engineer. If Owner requires greater assurance as to probable Construction Cost, then Owner agrees to obtain an independent cost estimate. 14. Hazardous Environmental Condition – The presence at the Site of Constituents of Concern in such quantities or circumstances that may present a danger to persons or property exposed thereto. a. The presence at the Site of materials that are necessary for the execution of the Work, or that are to be incorporated into the Work, and that are controlled and contained pursuant to industry practices, Laws and Regulations, and the requirements of the Contract, is not a Hazardous Environmental Condition. b. The presence of Constituents of Concern that are to be removed or remediated as part of the Work is not a Hazardous Environmental Condition. c. The presence of Constituents of Concern as part of the routine, anticipated, and obvious working conditions at the Site, is not a Hazardous Environmental Condition. 15. Instrumentation & Controls (I&C) – A division of Engineer’s services which focuses on the measurement and control of process variables and functions within an industrial setting using hardware, software, and programming with the intent of optimizing productivity and repeatability of common operating procedures. 16. Newspaper - The Bozeman Daily Chronicle 17. Pressure Reducing Valve (PRV) – A pressurized valve used in water distribution systems to drop water distribution system operating pressures between two adjacent pressure zones. 18. PRV Station / PRV Vault – Used interchangeably to refer to a structure, typically of concrete and built below grade, in which a PRV is installed to make access to operate and maintain the valve easier and prevent the PRV from being directly buried. 19. Professional Land Surveyor (PLS) – A professional surveyor as recognized and licensed by the Montana Department of Labor and Industry Board of Professional Engineers and Professional Lang Surveyors. 20. Technical Data – Those items expressly identified as Technical Data, with respect to either (1) existing subsurface conditions at or adjacent to the Site, or existing physical conditions at or adjacent to the Site including existing surface or subsurface structures (except Underground Facilities) or (2) Hazardous Environmental Conditions at the Site. 45 Exhibit A – Project Scope and Fee Definition Bozeman PRV Phase I Upgrade 097-2021-000 – Bozeman PRV Improvements Ph I Exhibit A Page 3 of 8 a. If no such express identifications of Technical Data have been made with respect to conditions at the Site, then Technical Data is defined, with respect to conditions at the Site, as the data contained in boring logs, recorded measurements of subsurface water levels, assessments of the condition of subsurface facilities, laboratory test results, and other factual, objective information regarding conditions at the Site that are set forth in any geotechnical, environmental, or other Site or facilities conditions report prepared for the Project and made available to Engineer. b. Information and data regarding the presence or location of Underground Facilities are not intended to be categorized, identified, or defined as Technical Data, and instead Underground Facilities are shown or indicated on the Drawings. 21. Underground Facilities – All active or not-in-service underground lines, pipelines, conduits, ducts, encasements, cables, wires, tanks, tunnels, or other such facilities or systems at the Site, including but not limited to those facilities or systems that produce, transmit, distribute, or convey telephone or other communications, cable television, fiber optic transmissions, power, electricity, light, heat, gases, oil, crude oil products, liquid petroleum products, water, steam, waste, wastewater, storm water, other liquids or chemicals, or traffic or other control systems. An abandoned facility or system is not an Underground Facility. 22. Water Facility Plan i. Water Facility Plan Update Prepared for City of Bozeman, MT ii. Prepared By: Advanced Engineering and Environmental Services, LLC (July 2017) 23. Work—The entire construction or the various separately identifiable parts thereof required to be provided under the Construction Contract Documents. Work includes and is the result of performing or providing all labor, services, and documentation necessary to produce such construction; furnishing, installing, and incorporating all materials and equipment into such construction; and may include related services such as testing, start-up, and commissioning, all as required by the Construction Contract Documents. 12.2. - Assumptions & Exclusions: 1. Project Management of all Phases will include the following services: a. Project Management Plan with ongoing planning updates. b. Supervision and direction of project priorities and communications with project staff. c. Monthly budget review, invoicing, documentation/file management, and on-going misc. project administration. d. Project status review meetings with Owner’s Representative. e. Quality assurance and quality control review with Engineer’s technical supervisor(s). 2. City of Bozeman Water & Sewer Department will provide condition assessment data for all existing PRV Vault in the Owner’s Distribution System. a. All Owner provided condition assessment data pertaining to the PRV Vaults and their surrounding environments will be considered Technical Data upon whose accuracy the Engineer may rely. b. Engineer’s may request Owner collect additional condition assessment data. Such reasonable requests will be submitted to the Water & Sewer Department for field verification and collection of data and provided to the Engineer within 14 days of Engineer’s request. 3. Owner possesses easements to build, own, operate, maintain, and improve all PRV Vaults in its distribution system. Engineer will not be responsible for collection of additional easements or for the coordination, negotiation, or brokerage of property required for Owner, Contractor, or any Constructors to perform improvements to, in, or around the Owner’s PRV Stations. 4. Where improvements and the construction contractor’s activity is expected to cause disturbances to the existing site conditions, the construction contractor will be required to restore the site to match the existing conditions. Design of any site improvements, asphalt pavement mix designs, and/or landscaping 46 Exhibit A – Project Scope and Fee Definition Bozeman PRV Phase I Upgrade 097-2021-000 – Bozeman PRV Improvements Ph I Exhibit A Page 4 of 8 improvements which exceed the existing conditions are outside of the scope of the Engineer’s services and if required shall constitute grounds for equitable compensation through a duly executed amendment. 5. Phase 031 Deliverable is assumed to function as the 60% deliverable and reviewed with Owner during a review meeting. However, Owner’s Review comments will not be used to update the Phase 031 Deliverables; rather, Owner’s Review Comments will be incorporated into the Phase 040 Deliverables. 6. Owner will be responsible for all costs to advertise Invitation to Bid in the Newspaper. 7. Bound hard copies of Executed Contract Documents (excluding reproduction of Specifications) is projected to be approximately 250 pages. Hard Copies provided by Engineer are estimated at $0.30/page or $75 for each set printed. Actual expenses will be based on final page count and calculated using Engineer’s Standard Expense Schedule. 8. Bound hard copies Project Manual is projected to be approximately 800 pages. Hard Copies provided by Engineer are estimated at $0.30/page or $240 each. Actual expenses will be based on final page count and calculated using Engineer’s Standard Expense Schedule. 9. Bound hard copies of Project Drawings are projected to be approximately 36 pages long. Actual Expenses will be based on final page count and calculated using Engineer’s Standard Expense Schedule. a. ANSI B | 11” x 17” = $10.80 each set b. ANSI D | 22” x 34” = $187.20 each set 10. Tasks involving hydraulic analysis specifically excludes services to perform updates to Owner’s hydraulic model. a. Owner to provide Engineer with most recent copy of hydraulic model on which to perform hydraulic analysis. b. Owner may request Engineer’s services to perform updates to Owner’s hydraulic model. Such request will constitute grounds for Engineer to negotiate equitable adjustments in its compensation and time to perform the services through a properly executed amendment agreed to in writing by both Owner and Engineer. 11. Engineer’s I&C services for this Project will be limited to those basic improvements which benefit future I&C optimizations and upgrades. Major instrumentation upgrades will be the subject of a future project. 12. Sump pump design in each PRV Station must comply with the City of Bozeman’s Sump Drain Policy. Owner and Engineer’s preferred alternative will be to drain sump pumps directly to the storm sewer system via the storm drain structure nearest each PRV Station. The Owner will lead the effort to determine storm sewer capacity at each location (locations to be identified during the Preliminary Engineering Phase) using max flow rates specified and provided by the Engineer. Engineer will design one additional standard alternative to be specified in locations where discharge to the storm sewer is not feasible. It is assumed that one of these two alternatives will be a viable solution during construction, limiting site-specific design requirements to simple construction notes. 47 Exhibit A – Project Scope and Fee Definition Bozeman PRV Phase I Upgrade 097-2021-000 – Bozeman PRV Improvements Ph I Exhibit A Page 5 of 8 12.3. Phase 030 – Pre-Design Investigation Phase 12.3.1. OBJECTIVE: · The objective of the Pre-Design Investigation Phase will be to develop a City of Bozeman PRV Design Manual by which, after adoption by the City of Bozeman into its DSSP, future PRV Vaults constructed within the City’s Distribution System must comply. · STANDARD CONSTRUCTION DETAIL will define: o Process Piping, Valves, and Vault Construction and minimum acceptable dimensions. o Basic electrical utility service specifications. o Vault access and appurtenances. o Mechanical sump. · DESIGN MANUAL will specify: o Hydraulic Design Criteria (velocity, lead/lag pressure setpoints) o Vault placement and approved locations (as a general narrative description) o Minimum Functionality (as a general narrative description) · SPECIFICATIONS SECTIONS will include: o PRVs:  Approved manufacturers, styles, and trim requirements. o Commissioning Requirements:  To summarize Owner’s minimum testing criteria for Owner’s acceptance. 12.3.2. DELIVERABLES: · Design Manual o To be provided with minimal formatting in “List Paragraph” style in a Microsoft Word compatible format such that Owner can modify formatting to conform with updates being performed to the DPPS in a separate project with a parallel delivery schedule. · Standard Construction Details o To be provided in both Portable Document Format (PDF) and an AutoCad compatible *.dwg file. o Owner to supply Engineer with Owner’s standard title block for in *.dwg format for Standard Detail Drawings to be included in Design Manual. · Standard Specifications Sections o To be provided with typical “specifications section” formatting in a Microsoft Word compatible format such that Owner can modify formatting as needed to conform with updates being performed to the DPPS in a separate project with a parallel delivery schedule. 12.3.3. ESTIMATED FEE: See 12.9. Estimated Compensation Summary Table 48 Exhibit A – Project Scope and Fee Definition Bozeman PRV Phase I Upgrade 097-2021-000 – Bozeman PRV Improvements Ph I Exhibit A Page 6 of 8 12.4. Phase 031 – Preliminary Design Phase 12.4.1. OBJECTIVE: · The primary objectives of the Preliminary Design Phase are: o Complete hydraulic modeling defined in the Deliverables section of the Phase description. o Complete preliminary permit planning activities with the City of Bozeman:  Contractor and its Constructors will have sole responsibility to obtain permits through the respective AHJ’s. Engineer will facilitate the permitting process through identification of permits in the Project Manual known to Owner and Engineer at the time of Preliminary Engineering. o Provide recommended improvements for each PRV Station based on data provided by City of Bozeman Water & Sewer Department. o Development of EOPCC for improvements at each PRV Vault, respectively. o Collect survey data through Engineer’s PLS subconsultant.  Survey to identify local topography, proximately of Electrical Utilities service lines, storm drain structure nearest to each PRV Station, and other utility locates. · Engineer will prioritize the following improvements: o Abandonment of PRV’s and PRV Vaults (if possible); o Add or replace failing appurtenances to increase ease of accessibility and operator safety; o Mechanical Improvements:  A standard sump pump and control panel will be scheduled for each remaining PRV Station, plus a quantity of shelf-spare pumps determined by Owner.  Pumps are expected to be placed on bottom of PRV Vault floor without modifications to PRV Structure to construct a specialty sump.  Method of installation and disposal of sump pump effluent will be as generally depicted in Attachment 1 – Mechanical, Electrical, and Broadband Utilities Schematic. o Electrical Utility Improvements:  Improvements to accommodate Electrical Utility Improvements will be detailed as generally depicted in Attachment 1 – Mechanical, Electrical, and Broadband Utilities Schematic. · Costs for site-specific electrical designs required for Electrical Utility to provide power to each location will be outside of the scope of Engineer’s Preliminary Design Phase services. During the Preliminary Design Phase, Engineer will work with the Electrical Utility to design a typical electrical connection as well as to coordinate with the Electrical Utility for them to develop a scope of work to extend electrical service connections to each PRV Station. Any PRV Station(s) that will require Engineer to complete site-specific design tasks will be identified and fees for Professional Services to complete the identified site-specific design tasks will be estimated. Once agreed to by both Engineer and Owner, the scope for Site-Specific electrical design and additional coordination with the Electrical Utility will be added to the scope of Final Design Phase services through a duly executed amendment. o Future Expansion for Instrumentation and Controls:  A standard control panel mount or cabinet will be detailed for each remaining PRV Station. The cabinet or mount will be generally empty but will consider general space requirements for adding I&C control panels, and Broadband Utilities in a future and separate project. Design does not include automation of controls through a SCADA interface.  Method of future internet connectivity assumed to be via cellular data modem.  Owner to enter into a separate agreement for internet connectivity with ISP without facilitation from Engineer. o The Phase 031 Deliverables will be considered the 60% Stage of Project Design. 49 Exhibit A – Project Scope and Fee Definition Bozeman PRV Phase I Upgrade 097-2021-000 – Bozeman PRV Improvements Ph I Exhibit A Page 7 of 8 12.4.2. DELIVERABLES: · Project Review Meetings: o Engineer will meet with Owner’s water utility department at the beginning of the Preliminary Design Phase to review and discuss the Owner’s data, discuss priorities, and identify and discuss issues that may be absent from or difficult to glean from the raw data provided. o Engineer will meet with the Owner and Owner’s water utility department near the end of the Preliminary Design Phase to review the Preliminary Design Phase Deliverables and drawings with the intent of capturing design omissions, desired changes, and other comments from Owner in order to proceed with subsequent phases of the project. · A Condition Assessment Report, which will summarize the following: o Recommendation for PRV Pressure Settings:  Pressures for each PRV will be expressed in the form of a tabulated schedule of PRV pressures, developed using City of Bozeman standards and other practices outlined in the Water Facility Plan. o Recommendation to abandon PRV Stations (as identified and only if feasible) with summarization of impacts to system after abandonment. Analysis of abandonment impacts will include evaluation of the following parameters at maximum day demand conditions:  System pressures;  Transmission main headloss; and,  Fire-flow availability o Recommended construction improvements at the remaining PRV Stations within the Owner’s distribution system. o EOPCC for recommended improvements (AACE - Class 2). o Summary of the following Construction Permits and application processes (to be obtained by Constructor(s)):  Building Permit Requirements;  SWPPP permitting Requirements;  Other permitting requirements of appropriate AHJ’s known to Owner and Engineer at the time of preliminary design. · Map and AutoCAD® files from PLS’s survey. 12.4.3. ESTIMATED FEE: See 12.9. Estimated Compensation Summary Table 50 Exhibit A – Project Scope and Fee Definition Bozeman PRV Phase I Upgrade 097-2021-000 – Bozeman PRV Improvements Ph I Exhibit A Page 8 of 8 12.5. Phase 040 – Final Design Phase 12.5.1. Reserved. 12.6. Phase 050 – Bidding Or Negotiating Phase 12.6.1. Reserved. 12.7 Phase 060 – Construction Phase 12.7.1. Reserved. 12.8. Phase 070 – Post-Construction 12.8.1. Reserved. 12.9. ESTIMATED COMPENSATION SUMMARY TABLE Estimated Compensation Summary Table 51 Exhibit A – Project Scope and Fee Definition Bozeman PRV Phase I Upgrade-2021-000 – Bozeman PRV Improvements Ph I Exhibit B Page 1 of 1 EXHIBIT B TO AGREEMENT BETWEEN OWNER AND ENGINEER FOR PROFESSIONAL SERVICES Bozeman PRV Phase I Upgrade Schedule This Exhibit is attached to, made a part of and incorporated by reference with the Agreement made on , between CITY OF BOZEMAN (OWNER) and Advanced Engineering and Environmental Services, LLC (ENGINEER) providing for professional engineering services. Project Schedule: Authorization to Proceed:......................................................................... July 31, 2023 Phase 030 – Pre-Design Investigation Phase: ............................... September 29, 2023 Phase 031 – Preliminary Design Phase: ......................................... November 15, 2023 52 Exhibit A – Project Scope and Fee Definition Bozeman PRV Phase I Upgrade-2021-000 – Bozeman PRV Improvements Ph I Exhibit C Page 1 of 1 EXHIBIT C TO AGREEMENT BETWEEN OWNER AND ENGINEER FOR PROFESSIONAL SERVICES Engineer’s Maximum Billable Direct Labor Costs & Reimbursable Expense Rates This Exhibit is attached to, made a part of and incorporated by reference with the Agreement made on , between CITY OF BOZEMAN (OWNER) and Advanced Engineering and Environmental Services, LLC (ENGINEER) providing for professional engineering services. Maximum Billable Direct Labor Costs* Engineer 4 $66.50 Engineer 3 $58.00 Engineer 2 $41.00 Engineer 1 $37.50 Construction Services 4 $47.00 Construction Services 3 $44.00 Construction Services 2 $35.00 Engineering Tech 5 $41.00 Engineering Tech 4 $38.00 Engineering Tech 3 $33.00 Engineering Tech 2 $29.00 Engineering Tech 1 $22.00 I&C 4 $57.00 I&C 3 $51.00 I&C 2 $47.00 Reimbursable Expense Rates** Transportation $0.75/mile Survey Vehicle $0.95/mile Laser Printouts/Photocopies $0.30/copy Plotter Printouts $1.00/s.f. UAS - Photo/Video Grade $100.00/day UAS – Survey $50.00/day Mapping GPS $25.00/hour Fast Static/RTK GPS $50.00/hour Cellular Modem $75.00/month Legal Services Reimbursement $250.00/hour Outside Services cost * 1.15 Geotechnical Services cost * 1.30 Out of Pocket Expenses cost * 1.15 Project Specific Equipment Negotiable * These rates are subject to adjustment at any time throughout the year due to discretionary changes in compensation. ** These rates are subject to adjustment each year on January 1. 53 234 E. Babcock,Suite 3 • Bozeman, MT 59715 • (406) 586-0277 2023 BOZEMAN RATE SCHEDULE Fee Compensation TD&H’s hourly billing rates for 2023 are provided in the adjacent table. We invoice for services rendered to a project to the nearest quarter hour. Direct project costs will be invoiced at cost plus 10%. Examples of these costs include airfare, ground transportation, lodging, meals, shipping and express mail, outside reproduction services, and other direct costs required for the project. Outside contract services including subconsultants, subcontractors and drilling services will be invoiced at cost plus 10% to cover additional insurance and administrative fees. DIRECT REIMBURSABLES Vehicle Use: Passenger Vehicle Mileage $0.75/mile Survey – Robotic Total Station Heavy Duty Vehicle Mileage $1.10/mile Hourly Rate: $30.00 Survey – Global Positioning Survey – Total Station with Data Collector Daily Rate: $500.00 Daily Rate: $100.00 Hourly Rate: $80.00 Hourly Rate: $20.00 Minimum Charge: $160.00 Reproduction Color (8.5x11) $1.50/page CAD Plotter (In-house) Color (11x17) $2.50/page Bond $0.90/SF B&W (8.5x11) $0.60/page Mylar $3.30/SF B&W (11x17) $1.20/page NOTES: 1) Construction Materials Testing per Separate Fee Schedule. *See Materials Testing Fee Schedule for Additional Information 2) Overtime work (above 40 hours per week, or weekends) increase hourly rates by 25%, or per quotation. 3) Annual rate adjustments occur in January of each year and typically range from 3% to 4%. DESCRIPTION HOURLY RATE AA Administrative Assistant $71.00 AM Administrative Manager $107.00 GA Grant Administrator $96.00 LS1 Surveyor’s Assistant $80.00 LS2 Surveyor $95.00 LS3 Survey Party Chief $111.00 LS4 Project Surveyor $128.00 LS5 Registered Land Surveyor $153.00 ENVS Environmental Scientist $119.00 IH1 Industrial Hygiene Technician I $84.00 IH2 Industrial Hygiene Technician II $109.00 LT1 Lab Technician I $74.00 LT2 Lab Technician II $82.00 CR1 Construction Representative I $101.00 CR2 Construction Representative II $121.00 CR3 Construction Representative III $143.00 CR4 Construction Representative IV $174.00 LA Landscape Architect $129.00 LP Land Planner $160.00 CLS CMT Lab Supervisor $120.00 CD1 CAD Designer I $84.00 CD2 CAD Designer II $110.00 CD3 CAD Manager $121.00 GC CAD/GIS Specialist $101.00 ET Engineering Technician $116.00 E1 Engineer I $109.00 E2 Engineer II $118.00 E3 Engineer III $137.00 E4 Engineer IV $160.00 E5 Engineer V $182.00 E6 Engineer VI $210.00 P Principal $234.00 DCT Deposition & Court Testimony $386.00 PMI Project Manager I $170.00 PMII Project Manager II $220.00 54 Memorandum REPORT TO:City Commission FROM:Griffin Nielsen, Water Resource Engineer John Alston, Director of Utilities SUBJECT:Authorize the City Manager to Sign Amendment 1 to Task Order 1 of the Professional Services Master Task Order Agreement with the firm of HDR Engineering, Inc. providing engineering services to design and permit the East Gallatin River Streambank Erosion Protection Project, CIP No. WW111 MEETING DATE:August 8, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign Amendment No. 1 to Task Order No. 1 of the Professional Services Master Task Order Agreement with the firm of HDR Engineering, Inc. providing engineering services to design and permit the East Gallatin River Streambank Erosion Protection Project, CIP No. WW111. STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:During the spring runoff of 2018, an avulsion event occurred along the East Gallatin River impacting a reach adjacent the City’s Water Reclamation Facility (WRF), specifically cutting off the channel receiving the facility’s outfall. The City took immediate steps to reestablish the channel and armor the streambank at the primary point of failure. Since the completion, a secondary location on the channel, partially destabilized during the original event, has begun to quickly erode. The City has identify the need to stabilize the bank at this location to protect the City’s outfall channel, reduce sediment load to the East Gallatin River, as well as improve the safety for individuals walking or wading the river at the given location. 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. The City executed Task Order One on April 26, 2022 to design and permit the East Gallatin River Streambank Erosion Protection Project, CIP No. WW111. During the permitting stage comments were received from the Montana Fish Wildlife and Parks which has prevented the approval of the City’s selected design. Amendment No. 1 increases the scope and fee to cover the re-design effort and permitting necessary to address Montana Fish, Wildlife, and Parks’ comments. 55 UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the Commission FISCAL EFFECTS:Task Order 1 totaled $23,269. Amendment No. 1 adds a cost of $13,695 bringing the project total to $36,964. Funding is provided from the FY24 Wastewater Fund from the CIP No. WW111 project budget (Budget Code 620-5610-445.80.90), set at $150,000, as such adequate funding exists. Attachments: Amendment No 1 to Task Order 1 with HDR for CIP WW111.pdf Report compiled on: July 27, 2023 56 AMENDMENT NO. 01 TASK ORDER NO. 01 FOR ENGINEERING SERVICES EAST GALLATIN RIVER RESTORATION WHEREAS: HDR ENGINEERING, INC. ("HDR") entered into an Agreement on May 6, 2022 to perform engineering services for the City of Bozeman ("CITY"); The CITY desires to amend this Agreement in order for HDR to perform services beyond those previously contemplated; HDR is willing to amend the agreement and perform the additional engineering services. NOW, THEREFORE, HDR and the CITY do hereby agree: The Agreement and the terms and conditions therein shall remain unchanged other than those sections and exhibits listed below; See attached ATTACHMENT 2: East Gallatin River Restoration (Bank 2) Amendment No. 1. COMPENSATION: The anticipated level of effort for the task is increased by the attached hours spreadsheet, to be billed as time and materials, not to exceed. Original Compensation: $23,269.00 Amendment 01: $13,695.00 Total Compensation: $36,964.00 IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year written below: HDR ENGINEERING, INC. ("HDR") City of Bozeman ("CITY") By:____________________________ By:_______________________________ Title: Vice President Title:______________________________ Date:_________________________ Date:_____________________________ 57 7 - Project Manager General Asst - Coralynn Revis1 - Project Manager General - Dan March2 - Engineer Water Resources - Ben Fennelly3 - Environmental Scientist 2 - Jon Schick4 - EIT Water Resources - Heather Nold5 - Technician General 3 - Heather Fancher6 - Accountant Sr - Paden KaufmanTotal Budget Task Task Description PJM14 PJM15 EWR20 SEN20 EWR10 TEC03 ACT04 TOTAL HOURS LABOR COSTS SUBCONTRACTOR EXPENSES TOTAL COST 1.1 Project Management & Coordination of Work 2 10 9 21 3,353$ -$ -$ 3,353$ Subtotal (excluding optional) 2 10 0 0 0 0 9 21 3,353$ -$ -$ 3,353$ 2.1 Hydraulic Model No Hours !◄-$ -$ -$ 2.2 Design and Layout 16 4 20 10 50 7,560$ -$ -$ 7,560$ Subtotal (excluding optional) 0 16 4 0 20 10 0 50 7,560$ -$ -$ 7,560$ 3.1 Permitting Agency Coordination 4 2 6 12 1,872$ -$ -$ 1,872$ 3.2 Joint Permit Application 2 5 7 910$ -$ -$ 910$ Subtotal (excluding optional) 0 6 2 0 11 0 0 19 2,782$ -$ -$ 2,782$ 4.1 Contractor Selection Assistance -$ -$ -$ -$ 4.2 Construction Inspection (Future Task)No Hours !◄-$ -$ -$ Subtotal (excluding optional) 0 0 0 0 0 0 0 0 -$ -$ -$ -$ 2 32 6 0 31 10 9 90 13,695$ -$ -$ 13,695$ HDR Task 1 Project Management and Administration Task 3 Task 4 Task 2 Hydraulic Analysis and Design Permitting Construction Administration Other Direct Costs 58 Amendment 1 | WRF On Call EAST GALLATIN RIVER RESTORATION June 29, 2023 1 of 4 Attachment 2 – East Gallatin River Restoration (Bank 2) Amendment No. 1 Introduction The following amendment is to provide engineering services to the City to update the design, permitting and construction services for stabilizing Bank 2 along the East Gallatin River in light of new permitting constraints. The goal of this project is to design a bank to provide stability to the channel, reduce sediment point source of the East Gallatin River, and improve safety concerns for recreating public while also meeting the newly discovered local, state, and federal permitting requirements. Project Schedule The project schedule is set with the goal that construction of this project will take place during December of 2023. Assumptions: · Notice to Proceed (NTP) will be received by HDR early July 2023. · COB will provide review comments within 2 weeks of submission. · Regulatory agencies will grant permits within 60 days of submission. Amendment No.1 Task 1: Project Management and Quality Assurance/Quality Control Services Description of Work: The scope, schedule, and budget will be monitored so that the project continues to move forward. Each deliverable will be reviewed to verify work products meet the standard of care. Sub Tasks: 1.1 - PROJECT MANAGEMENT & COORDINATION OF WORK This task includes project management services during the entire life of the project, including: · Monthly Invoicing and Monthly Reports · Project Delivery Administration: Budget & Schedule Controls · Kickoff meeting to establish communication protocol, project understanding, available data, project schedule, and roles of the COB and HDR. · Quality Assurance/Quality Control Services o Review of each deliverable according to HDR’s quality management procedures. o Quality Assurance/Quality Control is integrated into each deliverable’s budget. 59 Amendment 1 | WRF On Call EAST GALLATIN RIVER RESTORATION June 29, 2023 2 of 4 Assumptions: · Project management effort is a function of the project duration and is based on the schedule included with this scope of services. NTP is anticipated in early July 2023, with participation assumed to be completed with project construction in December 2023. Additional project coordination or an extended project schedule may require a contract amendment. Deliverables: · Monthly invoice and project status updates. Task 2: Hydraulic Analysis and Design Description of Work: Task includes updating the design and preparation of plans and specifications for the proposed restoration work. Sub Tasks: 2.1 – HYDRAULIC MODEL The effective FEMA hydraulic model (HEC-RAS format) for the East Gallatin River developed for the previously performed Avulsion Project will be used to determine hydraulic design parameters and to inform permit applications. This hydraulic model will be referenced in the design; however, no additional modeling will be conducted as a part of this amendment. 2.2 – DESIGN AND LAYOUT Results of subtasks 2.1 will be used to update plans, and engineer’s estimate of probable costs for reconstruction of the eroded riverbank (Bank 2). Based on a meeting with MT FWP May 18, 2023, designs incorporating angular rock will not be permitted by MT FWP. To permit the East Gallatin River Bank 2 project, design methods will incorporate a cobble toe with woody material anchored into the bank extending to the bankfull water surface elevation, and coir fabric wraps for short term upper bank stability. Willow cuttings and a riparian seed mix will be incorporated into the upper bank for long term stability. MT FWP agreed to these methods in the May 18, 2023 meeting. HDR will perform calculations, size and quantify large woody debris, and prepare specifications for inclusion on the plan set. HDR will prepare and deliver 95% design plans to the COB for review and comment prior to completion of the plans. HDR will lead a 95% design review meeting with the COB. Upon acceptance of the 95% design, HDR will develop the 100% design plans. Any opinions of probable project cost or probable construction cost provided by ENGINEER are made on the basis of information available to ENGINEER and on the basis of ENGINEER's experience and qualifications and represents its judgment as an experienced and qualified professional engineer. However, since ENGINEER has no control over the cost of labor, materials, equipment or services furnished by others, or over the contractor(s') methods of determining prices, or over competitive bidding or market conditions, ENGINEER does not guarantee that proposals, bids or actual project or construction cost will not vary from opinions of probable cost ENGINEER prepares. 60 Amendment 1 | WRF On Call EAST GALLATIN RIVER RESTORATION June 29, 2023 3 of 4 Assumptions: · Addressing eroding banks, channel modifications, or potential avulsion at other locations within the project reach are not included. · Topographic survey data from the previous avulsion project will be used for project layout. · The effective FEMA adopted hydraulic model is readily available at no cost to HDR and will be used to inform permit applications. · Design parameters determined for the previous avulsion project will be used to prepare plans and specifications for this project. · Specifications for construction of the project will be included on the drawings prepared by HDR. · COB will provide review comments within two (2) weeks of receiving documents. · Design of utility relocation (if necessary) is not included. Deliverables: · 95% Design Documents (electronic PDF copy) · 100% Design Documents (electronic PDF copy) · Engineer’s Opinion of Probable Construction Costs (electronic PDF for 100% Design) Task 3: Permitting Description of Work: HDR will revise the previously developed Joint Permit Application (JPA) to meet the requested design modifications and coordinate with permitting agencies. Sub Tasks: 3.1 – PERMITTING AGENCY COORDINATION HDR will explain updated project goals, design background and construction plans. Coordination will take place after submittal of JPA to obtain permits. 3.2 – JOINT PERMIT APPLICATION (JPA) HDR will prepare a JPA for submittal to permitting agencies. Assumptions: · Applicable permits and agencies are: US Army Corps of Engineers (404 permit), Montana Fish Wildlife and Parks (124 permit), Montana Department of Environmental Quality (318 authorization), and City of Bozeman (floodplain permit). · Neither State nor Federal “Navigable River” permits will be required. · Neither stream nor wetland mitigation will be required by the US Army Corps of Engineers under their 404 permit. · A wetland delineation will not be required by the US Army Corps of Engineers for a 404 permit. · A Nationwide 404 permit will be appropriate for the final design. 61 Amendment 1 | WRF On Call EAST GALLATIN RIVER RESTORATION June 29, 2023 4 of 4 · An MT-2 form or Certified Letter of Map Revision (CLOMR) will not be required. If one is required, this work will require an amendment. · A qualitative discussion rather than a hydraulic model will be used for the “no-rise” documentation for floodplain permitting. · Receipt of a floodplain permit will not involve a submittal to or review by the Montana Department of the Natural Resources and Conservation (DNRC) or the Federal Emergency Management Agency (FEMA). · Permit application fees are not included in the project budget and will be the responsibility of the City of Bozeman. · Permit packages will be delivered to the City of Bozeman for submittal to regulatory agencies. · Construction stormwater permits are not included and will be obtained by the selected contractor. · Level of effort to address permitting agency request for additional information is assumed to require 2 hours of time for budgetary purposes. Greater level of effort may require a contract amendment. · Based on the conversation with MT FWP in May of 2023, bank stabilization methods incorporating rounded rock, woody material, coir wraps, and willow cuttings will be permitted by MT FWP. Deliverables: · Project Joint Permit Application. · Certified Technical Memorandum documenting design intent and methodology. 62 Memorandum REPORT TO:City Commission FROM:Jesse DiTommaso, Economic Development Specialist David Fine, Economic Development Program Manager Brit Fontenot, Economic Development Director SUBJECT:Authorize the City Manager to Sign a Task Order EDD23-002 with Sanderson Stewart for Quiet Zone Implementation Services at Griffin Drive, North Rouse Avenue, and North Wallace Avenue MEETING DATE:August 8, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign a task order EDD23-002 with Sanderson Stewart for quiet zone implementation services at Griffin Drive, North Rouse Avenue, and North Wallace Avenue. STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a mechanism to encourage economic development. BACKGROUND:The City completed a feasibility study for the safety improvements that would need to be installed at railroad crossings at Wallace Ave., Rouse Ave. and Griffin Dr. in order to allow trains to stop blowing their horns at these crossings in compliance with Federal Railroad Administration regulations. These improvements were constructed for Griffin Dr. as part of the Griffin Dr. Reconstruction Project, but improvements at the Rouse Ave. and Wallace Ave crossings are not designed or funded at this time. A group of private business interests recently committed funding to the engineering of these improvements to allow design and right-of-way acquisition to proceed while funds are raised to support construction of the needed infrastructure improvements. UNRESOLVED ISSUES:The City cannot commence the quiet crossing establishment process with the Federal Railroad Administration until funds are raised to complete the necessary safety improvements at the Wallace Ave. and Rouse Ave. crossings. The Fiscal Year 2024 Work Plan and Budget for the Northeast Urban Renewal District included funding for improvements at the Wallace Ave. crossing. A source of funds for the improvements to the Rouse Ave. crossing has not yet been identified, but could be a mix of public and private funds. ALTERNATIVES:As recommended by the City Commission. 63 FISCAL EFFECTS:The total cost of this task order is up to $16,000 and was included in the FY24 budget for the Northeast Urban Renewal District. Attachments: URD Task Order Form EDD23-002_Quiet Zone Implementation.pdf Bozeman_QZ_Ltr_Agreement_230717-.pdf 2024 Rates G2.pdf Report compiled on: July 27, 2023 64 City of Bozeman Urban Renewal District Term Contract Task Order Number #EDD23-002 PROJECT: Quiet Zone Implementation Services at Griffin Drive, North Rouse Avenue and North Wallace Avenue Issued under the authority of Urban Renewal District Term Contract Professional Services Agreement with Sanderson Stewart for Architectural and Engineering Services. This Task Order is dated July 26, 2023, between the City of Bozeman Economic Development Department and Sanderson Stewart (Contractor). The following representatives have been designated for the work performed under this Task Order: City: David Fine, Urban Renewal Program Manager Contractor: Danielle Scharf, Sanderson Stewart SCOPE OF WORK: The scope for this task order is detailed in the attached proposal from SRF Consulting. COMPENSATION: Sanderson Stewart will bill for its services on a time-and-materials basis not to exceed $16,000.00. Sanderson Stewart shall submit invoices to the City of Bozeman for work accomplished during each calendar month. The amount of each monthly invoice shall be determined on the “time-and-materials basis” according to the attached standard rate sheets for Sanderson Stewart and it’s subconsultants. Monthly invoices shall include, separately listed, any charges for services for which time charges and/or unit costs shall apply. The provisions of the Professional Services Agreement shall govern the Work. IN WITNESS WHEREOF, the parties authorized to commit resources of the parties have executed this Task Order: City of Bozeman Sanderson Stewart Jeff Mihelich, City Manager Danielle Scharf, Principal 65 66 67 68 69 70 71 SRF CONSULTING GROUP, INC. RANGE OF HOURLY BILLING RATES JANUARY 2024 THROUGH DECEMBER 2024 RANGE OF RATES PROFESSIONAL Professional VIII 170$ -265$ Professional VII 160$ -265$ Professional VI 140$ -250$ Professional V 130$ -250$ Professional IV 110$ -220$ Professional III 100$ -195$ Professional II 90$ -160$ Professional I 85$ -135$ TECHNICIAN Technician VI 130$ -220$ Technician V 125$ -220$ Technician IV 110$ -205$ Technician III 90$ -185$ Technician II 80$ -150$ Technician I 70$ -120$ SUPPORT SPECIALIST Support Specialist VI 130$ -220$ Support Specialist V 125$ -220$ Support Specialist IV 110$ -190$ Support Specialist III 80$ -170$ Support Specialist II 70$ -145$ Support Specialist I 60$ -120$ The Range of Hourly Rates schedule is subject to change annually. Direct project related expenses are billed at actual cost and mileage is billed at a rate not to exceed the current allowable IRS rate for business miles. 72 Memorandum REPORT TO:City Commission FROM:Cassandra Tozer, Human Resources Director SUBJECT:Resolution 5518, Setting the Annual Salary for the Municipal Judges MEETING DATE:August 8, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Adopt a resolution setting the annual salary for the municipal judges. 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 Bozeman City Commission has the exclusive authority pursuant to 3-6- 203, MCA and 22.01.090, BMC, to establish the annual salary of the municipal court judges. Municipal court judges are currently paid in accordance with Resolution 5488, passed and approved on April 11, 2023, which only established the annual salary for FY23. UNRESOLVED ISSUES:None. ALTERNATIVES:Consider an alternative annual salary. FISCAL EFFECTS:The annual salaries for the municipal court judges have been budgeted for in FY24. Attachments: Resolution Establishing Annual Salary for Muni Court Judges.pdf Report compiled on: July 31, 2023 73 Version February 2023 1 RESOLUTION 5518 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, SETTING THE ANNUAL SALARY FOR THE MUNICIPAL COURT JUDGES FOR FISCAL YEAR 2024 AND SUBSEQUENT FISCAL YEARS UNTIL MODIFIED BY RESOLUTION OF THE CITY COMMISSION. WHEREAS, the Bozeman City Commission has the exclusive authority pursuant to 3-6- 203, MCA and 22.01.090, BMC, to establish the annual salary of the municipal judges. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: Section 1 Effective July 1, 2023, for fiscal year 2024, and continuing for subsequent fiscal years until such time as modified by Resolution of this Commission, the annual salary of a full-time elected Municipal Court Judge will be $175,335.23. The chief judge of the Municipal Court will receive an additional five percent (5.0%) of the above annual salary for performing the duties required of a chief municipal court judge as required by 3-6-201(5), MCA. Section 2 During their term in office, municipal court judges may opt to participate in the employee benefits program provided to individual City employees and may choose the type of coverage plan they wish to participate in of those offered by the Montana Municipal Interlocal Authority (MMIA). As such, the municipal court judges may opt to receive the standard City contribution to health insurance coverage applicable to City employees at the amount set for all City employees and elected officials. In addition, municipal court judges may opt to participate at their own cost in health club memberships and ancillary benefits pursuant to policies established by the City Manager. 74 Version February 2023 2 PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the _____ day of ___________________, 20____. ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 75 Memorandum REPORT TO:City Commission FROM:Nicholas Ross, Director of Transportation and Engineering SUBJECT:Ordinance 2142, Final Adoption, Revising Speed Limits on City-controlled Routes MEETING DATE:August 8, 2023 AGENDA ITEM TYPE:Ordinance RECOMMENDATION:Having reviewed and considered the ordinance, public comment, and staff presentation, I hereby move to finally adopt Ordinance 2142, Revising Speed Limits on City-controlled Routes. STRATEGIC PLAN:4.5 Housing and Transportation Choices: Vigorously encourage, through a wide variety of actions, the development of sustainable and lasting housing options for underserved individuals and families and improve mobility options that accommodate all travel modes. BACKGROUND:The Bozeman City Commission amended and provisionally adopted Ordinance 2142 on July 25, 2023. The included amendment removed the time of day qualifications for school zone speed limits. School zone speed limits will be in place twenty four hours a day, seven days a week throughout the year. In support of a City Commission priority to evaluate speed limit reduction in Bozeman, Staff have taken on a project to recommend a new manner of setting safe speeds and adjust speed limits on city-controlled routes accordingly. This initiative delivers on an action item recommended in the Bozeman Streets Are For Everyone (SAFE) safety plan developed in 2022. Staff conducted a Work Session with Commission on March 28, 2023 during which Commission provided guidance on two primary policy decisions. First, Commission recommended Staff move forward with using the Safe Speed Study methodology defined by the National Association of City Transportation Officials (NACTO). Second, Commission recommended Staff focus on speed limit revisions to arterial and collector functional classification routes. Local street speed limits will remain unchanged. NACTO Safe Speed Study methodology was chosen over the more traditional 85th percentile rule. Safe speed methodology uses conflict density and activity level to set context-sensitive speed limits. Conflict density is defined by the frequency of potential conflicting movements, such as intersections 76 and driveways, that occur on a given street. Two primary factors determine conflict density, modal mixing and crossing point density. Modal mixing describes the level of physical separation between varying modes such was walking, biking, and motor vehicles. Crossing point density describes how closely spaced intersections, driveways, and other crossing types ae to one another. Bozeman Municipal Code along with Transportation Master Plan define these characteristics by functional classification route type, allowing consistent speed limits to be defined based on functional classification of roadway. Principal arterials are characterized by low modal mixing and low crossing point density due to walk and bike modes typically separated from traffic with shared uses paths and access spacing requirements of approximately 1/4 mile. Minor arterials and collectors are characterized by moderate modal mixing and moderate crossing point density due to a mix on on-street bike lanes, shared use paths, and traditional sidewalks as well as shorter access spacing requirements. Bozeman's overall population density results in relatively low activity levels on streets of these classifications, and land use decisions for these route types typically result in low curbside demand outside of business districts. Setting consistent speed limits by route type better defines the expectation for users. The combination of these factors result in a recommended safe speed limit of 35mph on principal arterials and 30mph on minor arterials/collectors. These routes exhibit our highest need for speed control as indicated by speed-related crashes resulting in severe injury and fatality. Arterial and collectors routes in dense areas of downtown Bozeman and business districts will remain signed at 25mph. Additionally, Staff has prepared related text adjustments expanding school zones, removing time of day, authorizing the Director of Transportation and Engineering to set park zone speed limits in the future, and codifying recent state-controlled speed limit revisions currently in place. Montana Department of Transportation, Bozeman School District, and Bozeman Police Department have been consulted during this process and concur with the proposed ordinance. The city of Bozeman Transportation Board also voted to approve Resolution 2023-01, Recommending that the Bozeman City Commission Support Ordinance 2142 Setting Safe Speed Limits on Arterial and Collector Streets. If approved, approximately 11 miles of collector and arterial streets will see speed limit reductions and school zone adjustments will be made to 7 schools citywide. UNRESOLVED ISSUES:State-controlled routes must follow a separate process in which city conducts MDT-approved speed studies, submits to MDT for concurrence, and then formally approved by state Transportation Commission. Staff are 77 currently conducting three speed studies within the city along segments of Oak, Baxter, and Kagy. ALTERNATIVES:No action. FISCAL EFFECTS:Ordinance 2142 will require the replacement of approximately 40 existing speed limit signs and the installation of 19 new speed limit signs. The work will be completed by city Signs and Signal Division. The estimated cost for this is $15,025. Attachments: Ordinance 2142_Final Adoption_Revising Speed Limits on City-controlled Routes.docx Bozeman Speed Study related to Ord 2142.pdf Report compiled on: July 27, 2023 78 Version February 2023 Ord 2142 Page 1 of 14 ORDINANCE 2142 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA REVISING SPEED LIMITS ON CITY-CONTROLLED ARTERIAL AND COLLECTOR ROUTES, EXPANDING PARK SPEED ZONE HOURS, AND GRANTING AUTHORITY TO THE DIRECTOR OF TRANSPORTATION AND ENGINEERING TO ESTABLISH PARK SPEED ZONES. WHEREAS,Mont. Const. Art. XI, § 4 mandates to liberally construe the powers of incorporated cities, and Mont. Const. Art. XI, § 6 of the Montana Constitution expressly authorizes a local government unit with self-government powers to exercise any power not prohibited by the constitution, law, or charter; and WHEREAS,the Bozeman City Charter establishes that the City of Bozeman is a local government that has adopted self-government powers which must be liberally construed; and WHEREAS,Strategic Plan 4.2, High Quality Urban Approach, establishes the city’s goal of “continu[ing] to support high-quality planning;” and WHEREAS, pursuant to theCity’s Bozeman Streets Are For Everyone Safety Action Plan, reducing motor vehicle speed reduces the risk of severe and fatal crash injuries; and WHEREAS, pursuant to Bozeman Municipal Code Sec. 36.07.010, the director of transportation and engineering may, upon completion of an investigation and consultation with the chief of police, alter speed limits on city-controlled routes; and WHEREAS,in certain instances,Mont. Code Ann. § 61-8-303(6) (2021)permits a local authority to alter speed limits; and WHEREAS, Mont. Code Ann. § 61-8-310 authorizes a local authority to alter speed limits for arterial streets and school zones; and WHEREAS, pursuant to Mont. Code Ann. § 61-8-310(6), the City consulted with Bozeman School District officials about altering the speed limit of school zones; 79 Ordinance No. 2142, Revising Speed Limits Page 2 of 14 WHEREAS, Mont. Code Ann. § 7-14-4102 authorizes a city or town council to establish and regulate speed limits in public parks; and WHEREAS, the Montana State Transportation Commission and the Department of Transportation have jurisdiction over all state highways and highways located on the commission-designated highway system; and WHEREAS, the City is amending its code so that all state highways and highways located on the commission-designated highway system within city limits comply with the speed limits established by the state. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: Section 1 That Section 36.07.020, Bozeman Municipal Code, will be amended as follows: Sec. 36.07.020. Specific speed restriction areas. A.Subject to the provisions of section 36.07.010, and except in those instances where a lower speed is specified in this article, it shall be prima facie lawful for the driver of a vehicle to operate the same at a speed not exceeding the following, except in any case when such speed would be unsafe due to presently existing conditions: 1.General limit.The speed limit is 25 miles an hour on all streets within the city limits unless otherwise posted. 2.Maximum speed.The maximum speed limit is 4035 miles an hour on any street within the city limits, unless otherwise posted or designated in this article and or as excepted by subsection 3 of this section. 3.Highways.There are various highways within the city limits of the city over which the state transportation commission has authority to establish speed limits. These speed limits are posted by the state department of transportation as authorized in MCA 61-8- 310. It shall be unlawful to operate a motor vehicle at a speed less than 15 miles an hour on any through or arterial highway. 4.Intersections.Speed limits at intersections are 15 miles per hour when: a.Making a right or left hand turn at any intersection of streets; b.Approaching within 50 feet of any intersection of streets when the driver's view is obstructed. A driver's view shall be deemed to be obstructed when, at any time during the last 50 feet of the approach to such intersection, the driver does not have a clear and uninterrupted view of such intersection and of the traffic upon all of the streets entering such intersection for a distance of 200 feet from such intersection; and 80 Ordinance No. 2142, Revising Speed Limits Page 3 of 14 c.At any uncontrolled intersection. 5.Graduated speed zones.There are created in the city graduated speed zones, the limits of which are more particularly described in section 36.07.050, wherein it is unlawful for any operator of any vehicle to drive at a speed greater than the speed stipulated in said section. As provided in section 36.07.010.A.1, graduated speed zones may be established by the city commission by commission resolution. 6.Railway grade crossings.Speed limit is 15 miles an hour when approaching within 15 feet of a grade crossing of any railway when the driver's view is obstructed. A driver's view shall be deemed to be obstructed when at any time during the last 200 feet of the driver's approach to such crossing, the driver does not have a clear and uninterrupted view of such railway crossing and of any traffic on such railway crossing, and of any traffic on such railway for a distance of 400 feet in each direction from such crossing. 7.School speed zones.There are created in the city school speed zones, the limits of which are more particularly described in section 36.07.030, wherein it is unlawful for any operator of any vehicle to drive at a speed greater than the speed established in said section between the hours of 8:00 a.m. and 4:30 p.m. on days or parts of days when school is in session. The posted school speed zones, which are particularly described in section 36.07.030, are in effect 24-hours a day, seven days a week, year- round. 8.Public park speed zones.There are created in the city, park speed zones, the limits of which are more particularly described in section 36.07.040, wherein it is unlawful for any operator of any vehicle to drive at a speed greater than the speed established in said section, between the hours of 8:00 a.m. and 8:00 p.m., on streets immediately adjacent to public parks, when signs are posted giving notice thereof. The posted public park speed zones, which are particularly described in section 36.07.040, are in effect 24-hours a day, seven days a week, year-round. 9.Curves, grades, alleys and in cemetery.Speed limit is 15 miles an hour when traversing or going around curves, or traversing a grade upon a street when the driver's view is obstructed within a distance of 100 feet along such street or highway in the direction in which the driver is proceeding, in all alleys within the city, and within the Sunset Hills Cemetery. Section 2 That Section 36.07.030, Bozeman Municipal Code, will be amended as follows: Sec. 36.07.030. School speed zones designated. A.In accordance with the provisions of section 36.07.020.A.5, it is unlawful for any operator of any vehicle to drive at a speed greater than that designated below or as designed by a commission resolution pursuant to section 36.07.010.A.1, when such speed limit is properly posted. between the hours of 8:00 a.m. and 4:30 p.m. on days or parts of days when school is in session, on the streets or parts of streets specified in the following speed zones: The following school speed zones are in effect 24 hours a day, seven days a week, year-round: 81 Ordinance No. 2142, Revising Speed Limits Page 4 of 14 1.Bozeman Senior High School speed zone.Speed limit is 15 miles per hour on: All that part of North Eleventh Avenue between West Main Street and a line 300 feet south of the south line of Durston Road; and all that part of West Villard Street between a line 150 feet east of the east line of North Eleventh Avenue and the east line of North Eleventh Avenue; and all that part of North Fifteenth Ave between a line 150 feet south of the south line of Beall St and a line 600 feet north of the north line of Beall St.; 2.Hawthorne School speed zone.Speed limit is 15 miles per hour on: All that part of East Lamme Street between a line 150 feet east of the east line of North Church Avenue and a line 150 feet west of the west line of North Rouse Avenue; all that part of East Mendenhall Street between a line 150 feet east of the east line of North Church Avenue and a line 150 feet west of the west line of North Rouse Avenue; all that part of North Church Avenue between a line 150 feet south of the south line of East Mendenhall Street and a line 150 feet north of the north line of East Lamme Street; 3.Irving School speed zone.Speed limit is 15 miles per hour on: All that part of South Eighth Avenue between a line 150 feet south of the south line of West Alderson Street and a line 150 feet north of the north line of West Dickerson Street; all that part of South Ninth Avenue between a line 150 feet south of the south line of West Alderson Street and a line 150 feet north of the north line of West Dickerson Street; all that part of West Alderson Street between a line 150 feet east of the east line of South Eighth Avenue and a line 150 feet west of the west line of South Ninth Avenue; all that part of West Dickerson Street between a line 150 feet east of the east line of South Eighth Avenue and a line 150 feet west of the west line of South Ninth Avenue; 4.Longfellow School speed zone.Speed limit is 15 miles per hour on: All that part of Tracy Avenue between a line 20 feet south of the south line of East Story Street to a line 320 feet north of the north line of East College Street; all that part of East Dickerson Street between the west line of South Tracy Avenue and a line 100 feet west of the west line of East Tracy Avenue; all that part of East Story Street 100 feet east of the east curbline of East Tracy Avenue; 5.Whittier School speed zone.Speed limit is 15 miles per hour on: All that part of West Peach Street between a line 150 feet east of the east line of North Fifth Avenue and a line 150 feet west of the west line of North Sixth Avenue; all that part of Sixth Avenue between the north line of West Peach Street and a line 200 feet north of the north line of West Villard Street; all that part of North Fifth Avenue between a line 150 feet north of the north line of West Peach Street and a line 200 feet north of the north line of West Villard Street; all that part of West Short Street between a line 150 feet west of the west line of North Sixth Avenue and a line 150 feet east of the east line of North Fifth Avenue; all that part of the alley adjacent to and parallel to the south line of the Whittier School grounds in Block 4 of the Violett Addition; 6.Willson School/Bridger Alternative High School speed zone.Speed limit is 15 miles per hour on: All that part of South Third Avenue between the south line of West Main Street and the north line of West Babcock Street; all that part of South Fifth Avenue between the south line of West Main Street and the north line of West Babcock Street; 82 Ordinance No. 2142, Revising Speed Limits Page 5 of 14 and all that part of W Babcock Street from a line 150 feet west of the west line of South Fifth Avenue to a line 150 feet east of the east line of South Third Avenue; 7.Emily Dickinson School speed zone.Speed limit is 15 miles per hour on: All that part of Annie Street between North 25th Avenue and a line 275 feet west of the east boundary of Brentwood Avenue; all that part of North 25th Avenue between Rogers Way and the north property line of the school; and on all that part of Durston Rd from 250 feet east of North Twenty-fifth Avenue to 250 feet west of North Twenty-fifth Avenue; 8.Morning Star School speed zone.Speed limit is 15 miles per hour on: All that part of Arnold Street between the west line of Westridge Drive to the west line of the school propertyand a point 150 east of Bon Ton Avenue; 9.Sacagawea Middle School speed zone. a.Speed limit is 15 miles per hour on: All that part of Cambridge Drive from the west line of South Third Avenue to the west line of the school property; b.Speed limit is 25 miles per hour on all that part of South Third Avenue from 200 feet north of Cambridge Drive to 200 feet south of Dartmouth Drive during days and times of day so noted on the changeable speed limit signs installed on South Third Avenue; 10.Chief Joseph Middle School speed zone.Speed limit is 15 miles per hour on: All that part of Kimberwicke Street between the west line of Ferguson Avenue and a line 300 feet east of Arabian Avenue; and all that part of Ferguson Avenue between the south line of Kimberwicke Street and the north line of Cattail Street; 11.Hyalite School Speed Zone.Speed limit is 2015 miles per hour on: All that part of West Babcock Street from 150 feet east of Sheridan Place to 150 feet west of Yellowstone Avenue. 12. Meadowlark School Speed Zone. a.Speed limit is 15 miles per hour on: All that part of Durston Road from 500 feet east of Flanders Mill Road west to 300 feet east of Cottonwood Road; b.Speed limit is 15 miles per hour on: All that part of Flanders Mill Road from Durston Road north to Sunstone Street. 13. Gallatin High School Speed Zone. a. Speed limit is 20 miles per hour on: All that part of Oak Street from Flanders Mill Road to Cottonwood Road. b. Speed limit is 20 miles per hour on: All that part of Cottonwood Road from Oak Street to Glenwood Drive. c. Speed limit is 15 miles per hour on: All that part of Annie Street between Cottonwood Road and Flanders Mill Road. d. Speed limit is 15 miles per hour on: All that part of Flanders Mill Road from Annie Street to Tanzanite Drive. 83 Ordinance No. 2142, Revising Speed Limits Page 6 of 14 Section 3 That Section 36.07.040, Bozeman Municipal Code, will be amended as follows: Sec. 36.07.030. School speed zones designated. Sec. 36.07.040. Public park speed zones. A.In accordance with the provisions of section 36.07.020.A.8, or any applicable subsequent commission resolution, pursuant to section 36.07.010.A.3, it is unlawful for any operator of any vehicle to drive at a speed greater than 15 miles per hour unless otherwise specifically designated between the hours of 8:00 a.m. and 8:00 p.m. on the streets or parts of streets immediately adjacent to all the applicable public parks. This public park speed limit is in effect 24-hours a day, seven days a week, year-round. , as specified in the following public parks speed zones: The director of transportation and engineering is authorized to designate park speed zones. 1.Aasheim Fields Park speed zone.All that part of Fowler Avenue from the south line of West Babcock Street to the southern boundary of Aasheim Fields Park. 2.Beall Park speed zone.All that part of East Villard Street from the west line of North Black Avenue to the east line of North Bozeman Avenue; all that part of North Bozeman Avenue from the south line of East Villard Street to the north line of East Short Street; all that part of East Short Street from the east line of North Bozeman Avenue to the west line of North Black Avenue; all that part of North Black Avenue from the north line of East Short Street to the south line of East Villard Street. 3.Bogert Park speed zone.On South Church Avenue from the north line of Bogert Park to a point approximately 100 feet south of Bogert Place. 4.Centennial Park speed zone.All that part of North Tracy Avenue from Cottonwood Street to the north line of Centennial Park; all that part of Cottonwood Street from the east line of North Tracy Avenue to the west line of North Grand Avenue; all that part of North Grand Avenue from the south line of Cottonwood Street to the north line of Centennial Park. 5.Christie Fields Park speed zone.All that part of East Mason Street from the west line of South Black Avenue to the east line of South Rouse Avenue; all that part of South Rouse Avenue from the south line of East Mason Street to the north line of Christie Field Park; all that part of South Black Avenue from the south line of East Mason Street to the north line of Christie Field Park. 6.Cooper Park speed zone.All that part of South Eighth Avenue from a line 150 north of West Dickerson Street to the south line of West Koch Street. 7.Farmall Street Park speed zone.All that part of Farmall Street from the west line of Springbrook Avenue to the east line of Durham Avenue; all that part of Durham Avenue from the south line of Farmall Street to the north boundary of Farmall Street Park, which is approximately 500 feet north of the south line of Farmall Street; all that part of Springbrook Avenue from the south line of Farmall Street to the north line of 84 Ordinance No. 2142, Revising Speed Limits Page 7 of 14 Farmall Street Park; which is approximately 500 feet north of the south line of Farmall Street. 8.Kirk Park speed zone.All that part of West Beall Street from the east line of North 20th Avenue to the west line of Kirk Park; all that part of North 20th Avenue from a point approximately 300 feet north of the north line of West Main Street to the north line of West Beall Street. 9.Lindley Park speed zone.All that part of Buttonwood Avenue from the south line of East Main Street to the entrance to the Sunset Hills Cemetery; all that part of Cypress Avenue from the south line of East Main Street to the south line of East Curtiss Street. 10.Meyers Park speed zone.All that part of Hanley Avenue from the north line of West Babcock Street to the south line of Brenden Street; all that part of Clifden Drive from the north line of West Babcock Street to the south line of Brisbin Street; all that part of Cascade Street between the west line of Hanley Avenue to the east line of Clifden Drive. 11.Oak Springs Subdivision Park speed zone.All that part of Jardine Avenue from the north line of Annie Street to its intersection with Palm Street; all that section of Palm Street from its intersection with Jardine Avenue to the east line of Yellowstone Avenue; all that part of Yellowstone Avenue from the south line of Palm Street to the north line of Renova Lane; all that part of Renova Lane from the east line of Yellowstone Avenue to the west line of Oak Springs Subdivision Park. 12.Westlake BMX Park speed zone.All that part of North Fifth Avenue from a line 150 feet north of Peach Street to the south line of Tamarack Street. Section 4 That Section 36.07.050, Bozeman Municipal Code, will be amended as follows: Sec. 36.07.050. Graduated speed zones designated. A.In accordance with the provisions of section 36.07.020.A.5, or any applicable subsequent commission resolution, it is unlawful for any operator of any vehicle to drive at a speed greater than designated below upon the following streets: 1.West Babcock Street.The speed limit is 30 miles per hour on all that part of West Babcock Street from the west line of West Main Street to the east line of Cottonwood Road. 2.Baxter Lane. a.The speed limit is 35 miles per hour from the west line of North Seventh Avenue to a point approximately 1,000 feet west of North Seventh Avenue. b.The speed limit is 45 miles per hour from a point approximately 1,000 feet west of North Seventh Avenue to a point approximately 1,200 east of North Nineteenth Avenue. 85 Ordinance No. 2142, Revising Speed Limits Page 8 of 14 c.The speed limit is 35 miles per hour from a point approximately 1,200 feet east of North Nineteenth Avenue to the east line of North Nineteenth Avenue. d.The speed limit is 30 miles per hour from the western line of North Nineteenth Avenue to Vaquero Parkway. e.The speed limit is 45 miles per hour from a point approximately 1,100 feet west of North Nineteenth Avenue to a point approximately 1175 feet east of Gallatin Green Boulevard. f.The speed limit is 30 miles per hour from the western line of Cottonwood Road to the western boundary of the City. 3.Bozeman Trail Road.The speed limit is 40 miles per hour from the west line of Haggerty Lane to the north line of Kagy Boulevard. 4.Bridger Drive/Bridger Canyon Road. a.The speed limit is 35 miles per hour from the junction of Bridger Drive/Bridger Canyon Road with North Rouse Avenue to a point approximately 550 feet east of Story Mill Road. b.The speed limit is 45 miles per hour from a point approximately 550 feet east of Story Mill Road to a point approximately 600 feet east of Creekwood Drive. c.The speed limit is 60 miles per hour from a point approximately 600 feet east of Creekwood Drive east to the city limits. b.The speed limit is 45 miles per hour from a point approximately 550 feet east of Story Mill Road east to the city limit. 5.West College Street.The speed limit is 35 miles per hour from the west line of South Nineteen Avenue to the south line of West Main Street. 6.Cottonwood Road. a.The speed limit is 40 miles per hour from Durston Road south to a point approximately 100 feet north of Fallon Street. b.The speed limit is 35 miles per hour from a point approximately 100 feet north of Fallon Street to Huffine Lane. c.The speed limit is 40 miles per hour from Huffine Lane south to the city limits. a.The speed limit is 35 miles per hour from Baxter Lane south to Huffine Lane. b.The speed limit is 45 miles per hour from Huffine Lane south to the city limits. 7.Davis Lane.The speed limit is 35 30 miles per hour from the north line of West Oak Street to the south line of East Valley Center Road. 8.Durston Road. a.The speed limit is 30 miles per hour from the west line of North 7th Avenue west to the city limit. 86 Ordinance No. 2142, Revising Speed Limits Page 9 of 14 a.The speed limit is 30 miles per hour from the west line of North 7th Avenue to the east line of Ferguson Avenue. (As this is an Urban route, this speed limit will not be posted (signed) until the Montana Transportation Commission approves the change.) b.The speed limit is 35 miles per hour from the west line of Ferguson Avenue west to the city limits. c.The speed limit is 20 miles per hour during certain hours of school days as signed, from 1250 feet east of North 25th Avenue to 250 feet west of North 25th Avenue. 9.Ferguson Avenue. a.The speed limit is 35 30 miles per hour from the north line of Huffine Lane north to the south line of Durston Road Baxter Lane. 10.Fowler Avenue.The speed limit is 35 30 miles per hour from the south line of Huffine Lane to the north line of Garfield Street. 11.East Frontage Road. a.The speed limit is 60 50 miles per hour from the junction of East Frontage Road with North Seventh Avenue, northwest to the city limits. b.The speed limit is 50 miles per hour from the junction of East Frontage Road with East Main Street, approximately 350 feet east of Haggerty Lane at the I-90 interchange, to a point approximately 100 feet east of Hospitality Way. c.The speed limit is 60 miles per hour from a point approximately 100 feet east of Hospitality Way east to the city limits. 12.Garfield Street.The speed limit is 35 30 miles per hour from the west line of South Nineteenth Avenue to the south line of Fowler Avenue. 13.Griffin Drive.The speed limit is 35 miles per hour from the east line of North Seventh Avenue to the west line of North Rouse Avenue. 14.West Graf Street. The speed limit is 30 mph from South 11th Avenue west to the city limit. Haggerty Lane. a.The speed limit is 40 miles per hour from the west line of Bozeman Trail Road to Ellis Street. b.The speed limit is 35 miles per hour from Ellis Street northwesterly a distance of approximately 675 feet. 15.Haggerty Lane. The speed limit is 30 miles per hour from the west line of Bozeman Trail Road to Main Street. 15.16.Highland Boulevard.The speed limit is 35 miles per hour from a point 400 feet north of Holly Drive to a point 225 feet south of East Curtiss Street. 16. 17.Huffine Lane. 87 Ordinance No. 2142, Revising Speed Limits Page 10 of 14 a.The speed limit is 45 miles per hour from the junction of Huffine Lane with West Main Street to a point approximately 260 feet west of Ferguson Avenue. b.The speed limit is 55 miles per hour from a point approximately 260 feet west of Ferguson Avenue to a point approximately 850 feet west of Cottonwood Road west to the city limits. c.The speed limit is 65 miles per hour from a point approximately 1850 feet west of Cottonwood Road west to the city limits. 17.18.Kagy Boulevard. a.The speed limit is 35 miles per hour from the east line of South Nineteenth Avenue to a point approximately 875 feet east of Highland Boulevard. b.The speed limit is 40 miles per hour from a point approximately 875 feet east of Highland Boulevard to Bozeman Trail Road. 18. 19.East Main Street.The speed limit is 40 miles per hour from a point approximately 300 feet east of Cypress Avenue to the junction of East Main Street with East Frontage Road, approximately 350 feet east of Haggerty Lane. a. The speed limit is 40 miles per hour from a point approximately 300 feet east of Cypress Avenue to a point approximately 350 feet east of Haggerty Lane. b. The speed limit is 50 miles per hour from a point approximately 350 feet east of Haggerty Lane to the junction with Frontage Road at the Interstate 90 overpass. 19. 20.West Main Street. a.The speed limit is 35 miles per hour from a point approximately 320 feet east of North Fifteenth Avenue to the west line of South 23rd Avenue. b.The speed limit is 45 miles per hour from the west line of South 23rd Avenue to the junction of West Main Street with Huffine Lane. 20. 21.Manley Road.The speed limit is 35 25 miles per hour from the north line of Griffin Drive north to the city limits. 21. 22.McIllhattan Road.The speed limit is 30 miles per hour from the west line of Story Mill Road northwest to the city limits. 22. 23.North Nineteenth Avenue. a.The speed limit is 35 miles per hour from the south line of Durston Road to approximately 500 feet north of Durston Road. b.The speed limit is 40 miles per hour from a point approximately 500 feet north of the south line of Durston Road to Springhill Road. 23. 24.South Nineteenth Avenue. a.The speed limit is 35 miles per hour from the north line of West Main Street to the south line of West College Street. b.The speed limit is 45 40 miles per hour from the south line of West College Street to 200 feet south of West Graf Street. 88 Ordinance No. 2142, Revising Speed Limits Page 11 of 14 c.The speed limit is 50 miles per hour from 200 feet south of West Graf Street south to 200 feet south of Blackwood Road. The speed limit for southbound traffic south of Kagy Boulevard is: (1) 45 miles per hour from Kagy Boulevard to a point approximately 330 feet south of Kagy Boulevard. (2) 60 miles per hour from a point approximately 330 feet south of Kagy Boulevard south to the city limits. d.The speed limit for northbound traffic south of Kagy Boulevard is: (1) 45 miles per hour from Kagy Boulevard to a point approximately 875 feet south of Kagy Boulevard. (2)60 miles per hour from a point approximately 1875 feet south of Kagy Boulevard south to the city limits. 24. 25.Oak Street. a.The speed limit is 35 miles per hour from the west line of North Rouse Avenue to the east line of North Eleventh Avenue. b.The speed limit is 45 miles per hour from the east line of North Eleventh Avenue to the east line of North Nineteenth Avenue. c.The speed limit is 35 miles per hour from the west line of North Nineteenth Avenue to the west line of New Holland Drive Cottonwood Road. 25. 26.North Rouse Avenue.The speed limit is 35 miles per hour from a point approximately 430 feet north of East Oak Street to the junction of North Rouse Avenue with Bridger Drive at Griffin Drive. 26. 27.Simmental Way.The speed limit is 35 miles per hour from the north line of Baxter Lane to the terminus of Simmental Way. North Seventh Avenue. a.The speed limit is 35 miles per hour from a point approximately 380 feet north of Durston Road to a point approximately 610 feet north of West Oak Street. b.The speed limit is 45 miles per hour from a point approximately 610 feet north of West Oak Street to a point approximately 1,720 feet north of Griffin Drive. c.The speed limit is 60 50 miles per hour from a point approximately 1,720 feet north of Griffin Drive to the junction of North Seventh Avenue with East Frontage Road. 28.Springhill Road.The speed limit is 35 miles per hour from East Frontage Road north to the city limits. a.The speed limit is 35 miles per hour from East Frontage Road north to a point 2,300 feet north of Moss Bridge Road. b.The speed limit is 45 miles per hour from a point 2,300 feet north of Moss Bridge Road north to the city limits. 89 Ordinance No. 2142, Revising Speed Limits Page 12 of 14 29.Story Mill Road.The speed limit is 35 30 miles per hour from the north line of Bridger Drive north to the city limits. 30.South Third Avenue.The speed limit is 35 miles per hour from the south line of West Graf Street to the south side of Wagonwheel Road south to the city limit. 31.East Valley Center Road. a.The speed limit is 45 miles per hour from North Nineteenth Avenue west a distance of approximately 2,830 feet. b.The speed limit is 50 miles per hour from a point approximately 2,830 feet west of North Nineteenth Avenue to a point approximately 290 feet west of North 27th Avenue. c.The speed limit is 60 miles per hour from a point approximately 290 feet west of North 27th Avenue west to a point the city limits 330 feet east of East Valley Center Spur. d.The speed limit is 45 miles per hour from a point 330 feet east of East Valley Center Spur west to the city limits. Section 5 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. The park speed limits repealed from BMC 36.07.040(A) will be in full force and effect pursuant to an order issued by the Director of Transportation and Engineering. Section 6 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. The specific speeds zones for the parks listed in BMC Sec. 36.07.070.A.1 –12 are repealed from the code, but remain in full force and effect. Section 7 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 90 Ordinance No. 2142, Revising Speed Limits Page 13 of 14 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 8 Codification. This Ordinance shall be codified as indicated in Section 1 – 4. Section 9 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 25th 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 ____________________, 20__. The effective date of this ordinance is ______________, 20__. _________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: 91 Ordinance No. 2142, Revising Speed Limits Page 14 of 14 _______________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 92 An Engineering and Traffic Investigation of Safe Speed Limits for the City of Bozeman July 2023 Staff Contributions: Nicholas Ross, P.E. - Transportation and Engineering Taylor Lonsdale, P.E. - Transportation and Engineering Suzie Ryan, P.E. - Transportation and Engineering Candace Mastel, AICP - Transportation and Engineering Jim Veltkamp – Bozeman Police Department 93 Context: In support of a City Commission priority to evaluate speed limit reduction in Bozeman, in summer 2022 city staff undertook a project to recommend a new manner of setting safe speeds and adjusting speed limits on city-controlled routes. This delivers on an action item recommended in the city’s 2022 Bozeman Streets Are For Everyone (SAFE) safety plan. In spring 2023, the City Commission provided guidance to staff and requested that staff focus on reducing speed limits on arterial and collector streets using the Safe Speed Study methodology. Per Bozeman Municipal Code Sec. 36.07.010, the director of transportation and engineering, in consultation with the chief of police, must conduct an engineering and traffic investigation. Director Nicholas Ross, P.E., of the city’s Transportation and Engineering Department and Chief Jim Veltkamp of the city’s Police Department conducted this required investigation and study. Establishment of Need: While Bozeman has historically experienced a high level of roadway safety, as demonstrated by the USDOT’s National Roadway Safety Strategy report, two bicyclist fatalities in summer 2022, along with growing public concern over worsening road safety conditions, necessitate adopting a proactive approach to regulating safe transportation practices in Bozeman. National trends of increased traffic fatalities indicate recent local fatalities may not be transient and further support this proactive approach. Studies have found that a vehicle’s speed is directly related to street safety. Larger and heavier vehicles are going to have a disproportionate impact on humans because they are lighter and smaller. In other words, the effect of vehicle speed is related to the tolerance of the human body to kinetic energy. The kinetic energy of an object is defined by the square of its speed. In other words, a car going 40 mph carries 4 times the energy of a car going 20 mph. This means that speed has an exponential impact on the severity of injury in a crash. Empirical studies suggest that a person hit by a car traveling at 35 mph may be more than five times as likely to die than if hit by a car traveling at 20 mph. Studies further suggest that a car traveling at 40 mph requires twice the length of stopping distance as a car starveling at 25 mph once the driver applies the breaks. Research also indicates that an increase in driving speed correlates with a decrease in driver awareness, as a driver’s ability to perceive external factors will be limited to the speed at which they can process the information. Further research shows that a 10% reduction in average speed may result in a 27% reduction in severe injury crashes and a 34% reduction in fatal crashes. Because of these findings, managing vehicular speeds is a significant focus of the SAFE Plan. Methods of Setting Speed Limits: Staff began its investigation by researching various established methods of setting speed limits. This exercise resulted in three primary options: the 85th Percentile Rule, USLIMITS2, and Safe Speed Study methodology. The 85th Percentile Rule has historically been the most common methodology in US transportation engineering practice. This practice works by conducting vehicle speed measurements of an existing roadway segment. The speed limit for that section is then set by rounding up to the nearest 5 mph increment under which the 15% fastest drivers are choosing to travel. This methodology was originally 94 developed for exclusively rural contexts, where conflicts between vehicles and people traveling by other modes are rare. Its application in urban environments is directly responsible for speed limits set at levels which induce higher rates of severe injury and fatal crashes, as it does not consider any of the safety effects of speed. USLIMITS2 was developed due to the acknowledged safety failures of the 85th Percentile Rule. This methodology maintains 85th percentile speed as the primary factor in speed limit setting, while also including additional factors such as 50th percentile speed, average annual daily traffic, crash rates, activity levels, adjacent land use, and roadway geometry. This methodology improves upon the 85th percentile rule by attempting to provide a context-sensitive speed limit while maintaining existing driving speeds as a significant factor regardless of whether those are at safe levels. Safe Speed Study methodology was recently developed by the National Association of City Transportation Officials (NACTO). This methodology is a context-sensitive method of setting safe speed limits on urban streets utilizing the Safe Systems Approach encouraged by the USDOT. This is the only of the three options that does not use existing speeds as a factor. On March 28, 2023 after holding a work session and considering staff’s presentation and materials, the City Commission directed staff to use the Safe Speed Study methodology for this project. Safe Speed Study Methodology Existing Condition analysis under the safe speed methodology contains two primary considerations: Conflict Density and Activity Level. SOURCE: NACTO CITY LIMITS A conflict occurs when a typical interaction of two or more street users is close enough that sudden action must be taken to avoid a crash. Conflict Density describes the frequency of potential conflicts on a given street. Conflict Density measure by the combined effect of modal mixing – the amount of physical separation between modes - and crossing point density – the distance at which intersections are spaced. 95 SOURCE: NACTO CITY LIMITS When applied to the city, modal mixing on all arterial and collector routes is set through Bozeman’s Transportation Master Plan (TMP)and reinforced by the SAFE Plan. Both documents define that such streets all must include sidewalks, dedicated bicycle lanes, and/or shared use paths. These components work to provide a high level of physical separation resulting in a low level of modal mixing. SOURCE: NACTO CITY LIMITS 96 When applied to the city, crossing point density is set through Bozeman’s Unified Development Code, (BMC Chapter 38) and confirmed through route alignment found in the TMP. Full access points are typically spaced every half-mile on arterials and allowed down to 330’ spacing on collectors. These conditions result in a low crossing point density along arterials and a moderate crossing point density along collectors. Staff analysis therefore finds low conflict density for arterial routes and moderate conflict density for collector routes in the city of Bozeman. Activity Level SOURCE: NACTO CITY LIMITS Activity levels on streets of Bozeman are influenced by several factors including population size, population density, land use, and transit service. While Bozeman has a high per capita level of activity, meaning the average individual resident participates in an active lifestyle, staff finds that this may not corelate to high levels of street activity. The relatively low size and density of population means that at our current size we can expect relatively few walking and biking trips outside of the downtown core. Land use along our arterial and collector streets typically does not allow significant residential development fronting those streets, nor does the city typically allow curb parking for winter maintenance purposes. Finally, available transit service occurs on very few streets and at very low frequencies. For these reasons, staff determines that arterial and collector streets most reasonably fit under a low activity classification in the safe speed methodology. Safe speed methodology determines a proposed speed limit setting by utilizing a risk matrix that compares conflict density and activity level. 97 SOURCE: NACTO CITY LIMITS Conclusion: Therefore, based on the results of the city’s engineering and traffic investigation, and in consultation with the Chief of Police, staff recommends a 35 mph speed limit for principal arterials and a 30 mph speed limit for minor arterials/collectors. These recommended speed limits correlate with a decreased risk of severe and fatal injuries and vehicle crashes. 98 Memorandum REPORT TO:City Commission FROM:Nakeisha Lyon, Associate Planner Erin George, Deputy Director of Community Development Anna Bentley, Director of Community Development SUBJECT:Short-Term Rentals Work Session MEETING DATE:August 8, 2023 AGENDA ITEM TYPE:Policy Discussion RECOMMENDATION:Receive presentation, discuss proposed alternatives, and provide direction to staff STRATEGIC PLAN:4.5 Housing and Transportation Choices: Vigorously encourage, through a wide variety of actions, the development of sustainable and lasting housing options for underserved individuals and families and improve mobility options that accommodate all travel modes. BACKGROUND:Bozeman’s existing standards for short-term rentals (STRs) were adopted in 2017 and are contained in Section 38.360.260 of the Bozeman Municipal Code (BMC). Since then, the prevalence of STRs has increased and the City Commission has received public comments from residents expressing concerns related to the role STRs play in the housing market. In an effort to balance these factors among other housing concerns, the City Commission approved the Bozeman Community Housing Action Plan in November 2019, with amendments in January 2020. This Action Plan recommends on-going evaluation of regulatory policies related to STRs. Based on these recommendations, the City Commission held a work session on August 9, 2022 to discuss short term rentals. Within this work session, the Commission directed staff to update STR regulations in two phases. The first phase included drafting an “Affirmative Obligations” ordinance regulating short term rental hosting platforms as one measure to increase compliance with existing regulations. Ordinance 2131 implements this first phase and was adopted by Commission on July 11, 2023. The second phase was to include analysis of STR types and where they are allowed, along with evaluation and improvement of the City’s STR data. This agenda item is a work session to start the discussion for phase two. A memo providing background material and a description of public outreach efforts is attached, along with an analysis of STR data compiled by Economic & Planning Systems (EPS) and a summary of the STR host focus group held 99 on January 18, 2023. At this work session, staff will present information to the City Commission and receive direction and input, which will then be used to prepare a draft ordinance if Commission so desires, for further public review and input. UNRESOLVED ISSUES:Commission will give direction on degree to pursue specific issues related to regulation of short-term rentals. ALTERNATIVES:As identified by the City Commission. FISCAL EFFECTS:None at this time. Attachments: STR Aug 8 Background Info.pdf STR Focus Group Summary.pdf EPS - STR Analysis_08-01-23.pdf Report compiled on: July 26, 2023 100 1 Short-Term Rentals Background Information for August 8, 2023 Work Session Overall Project Background: Starting in July 2016, the Bozeman City Commission began considering issues related to short term rentals (STRs) within our community. This ultimately led to the adoption of Ordinance 1974, which constitutes the current standards for STRs denoted in Section 38.360.260 of the Bozeman Municipal Code (BMC). These standards set forth where STRs are allowed to locate based on type, and require STR hosts to register their rental with the City of Bozeman (City) prior to operation and to submit annual renewals. Such registration includes submittal of information, payment of a registration fee, and completion of a safety inspection prior to city approval. Since adoption of these provisions, the prevalence of STRs has increased and the City Commission has received public comments regarding STRs from residents, primarily expressing concerns related to how STRs may or may not affect long- term rental availability in Bozeman. In an effort to balance these factors among other housing concerns, the City Commission approved the Bozeman Community Housing Action Plan in November 2019, with amendments in January 2020. This Action Plan recommends on-going evaluation of regulatory policies related to STRs. Based on these recommendations, the City Commission held a work session on August 9, 2022 to discuss short term rentals. Within this work session, the Commission directed staff to update STR regulations in two phases. The first phase included drafting an “Affirmative Obligations” ordinance regulating short term rental hosting platforms as one measure to increase compliance with existing regulations and to require regular reporting to improve the City’s data. The second phase was to include analysis of STR types and where they are allowed. Public Engagement: Public outreach was conducted in several ways to inform this project. First, staff convened a focus group comprised of 13 local STR hosts and property managers on January 18, 2023, to hear hosts’ opinions and to assess interest in converting short-term rentals to long-term rentals (LTRs). See attached Focus Group Summary. In short, themes heard in this group included: financial benefits and flexibility of STRs over LTRs, challenges with landlord/tenant relationships and maintenance of LTRs, and a desire for greater enforcement of non- compliant STRs. In general, there was very little interest in converting STRs to LTRs, even if financial incentives were provided. 101 2 Additional outreach included a meeting with several City Commissioners and the Bozeman Tenants United on February 19, 2023, which included approximately 300 residents. Attendees expressed concerns about rising rents and proliferation of STRs, noted their belief that limiting STRs would free up more housing units for long-term rental, asked Commissioners to ban Type 2 and 3 STRs, and to create a financial incentive program similar to Big Sky’s “Rent Local” program. Affirmative Obligations Ordinance Following extensive research of other cities’ regulations and recent case law, staff prepared Ordinance 2131, Affirmative Obligations, to complete phase one of Commission’s instructed STR updates. This ordinance was adopted by the Commission on July 11, 2023. Staff is confident the new regulations will result in better compliance, improved data, and easier enforcement. August 8, 2023 Work Session The second phase requested in Commission’s 2022 work session was analysis of STR types and where they are allowed, along with evaluation and improvement of the City’s STR data. While quarterly reporting from hosting platforms - now required by Ordinance 2131 - will improve accuracy of the City’s STR data, staff sought to provide earlier data insights to assist Commission’s consideration of policy options. Accordingly, the City engaged the services of Economic & Planning Systems (EPS) to audit existing STR data and evaluate STRs’ role in Bozeman’s housing market and tourism economy. See attached Data Analysis for a summary of EPS’s findings, with key points. STR Types & Allowances in Current Bozeman Municipal Code Under the City’s existing regulations, short-term rentals are classified in three types:  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.  Type 2: A short term rental of an owner-occupied dwelling if the owner is not occupying the dwelling during the entire rental period. Also includes short-term rental of a permitted ADU or one unit of a duplex, whether or not the owner is present in the other dwelling unit during the rental period.  Type 3: A short term rental that is not owner-occupied. “Owner-occupied” is defined in the code as “the owner occupies the dwelling as his or her principal residence for more than 50 percent of the calendar year.” 102 3 Current Allowances:  All types of STRs are prohibited in RMH, B-1, industrial districts and PLI. Keeping the above exceptions in mind:  Type 1 is allowed in all other residential, commercial and mixed use districts.  Type 2 is allowed in all other residential zoning districts except R-S & R-1, and all commercial and mixed use districts.  Type 3 is allowed ONLY in commercial and mixed use zoning districts except NEHMU. Figure 1: Table depicting existing zone allowances and prohibitions for each STR type 103 4 Figure 2: Map of allowances by STR type STR Registration (now Permit) Process The existing process for an STR host to obtain City approval (formerly called “registration” and now called “Hosting Permit” as identified in Ordinance 2131) is clearly identified on the City’s website and includes the following steps: 1. Identify STR type and zone to determine eligibility 2. Pay registration fee ($250 per year) 3. Apply for Public Accommodations License with Gallatin County Health Department ($294/yr.) + application fee ($40) 4. Apply for a Sales and Business Use Tax Permit with MT Department of Revenue (4%) 5. Lodging Tax ID# issued by MT Department of Revenue 6. Schedule Fire Inspection ($225 – now every 3 years per recent Ordinance 2131) 7. Submit interior floor plan and exterior sketch plan of property (this helps staff verify whether the host applied for the correct type of STR permit) 104 5 Updated STR Data While the attached Short-Term Rental Assessment from Economic & Planning Systems (EPS) provides an in-depth compilation of data findings, the following are a few key points:  Of approximately 568 active STRs in Bozeman, 263 have registered with the city and an estimated 305 have not.  Figure 3 below depicts the concentration of STR locations within the City. The map only shows those STRs with an active City permit, as addresses of unpermitted STRs are currently unknown. Implementation of recently adopted Ordinance 2131 is expected to improve STR permit compliance.  Of the registered STRs: o 19% are Type 1 o 46% are Type 2 o 35% are Type 3  With about 22,500 households in Bozeman (based on 2021 American Community Survey), STRs make up only 2.5% of overall housing supply.  By comparison, it is common to see STRs makeup anywhere from 20-50% in other towns located near ski resorts. Big Sky, for example contains 1,106 STRs, comprising 32% of their 3,468 housing units. * Note the number of active STRs above is lower than previously reported as the EPS data audit was able to remove duplicates from our software system-generated data. Typical Characteristics of STR Types in Bozeman Updated data and research provided by EPS has revealed some typical characteristics of each STR type, summarized as follows:  Type 1: o Mostly larger detached houses o 67% are older homes (more than 40 years old)  Type 2 o Smaller than Type 1 o Predominantly detached houses o Mix of both older & newer homes; about 50% built before 1980  Type 3 o Smaller than Type 1 & 2 o Higher share of townhomes & condo units o Mix of older & newer homes; 36% built after 2000 105 6 Figure 3: Concentration of STRs with active City permits in Bozeman As shown, the heaviest concentrations of STRs (shown in yellow and orange) are located in downtown and the Northeast neighborhood, with medium concentrations (magenta) in Midtown and Valley West, with lighter concentrations shown in blue throughout the city. 106 7 STRs as Lodging in Bozeman Short-term rentals make up a significant portion of lodging options in Bozeman, as follows: • Of total “bed base” (rooms provided for lodging) in Bozeman: • 43% of beds are STRs • 57% of beds are hotel rooms • When calculated per unit rather than bed, STRs comprise 19% of lodging inventory • Average Daily Rate of STR: $311 • Average Daily Rate of Hotel: $239 Given whole home rentals comprise a greater share of STRs in Bozeman than individual bedrooms, the average STR rates tend to be higher than hotel rates primarily for that reason. Policy Discussion At the August 8, 2023 work session, staff will present the background information and data outlined above, as well as a comparison of several other cities’ STR regulations and fees. The presentation will conclude with a number of policy options for City Commission discussion and direction. 107 Short Term Rental Focus Group Summary After a City Commission work session in summer 2022, staff were directed to engage with owners of STRs about potential incentives to convert STRs into long term rentals. The purpose was to gather feedback from local STR owners on motivations, incentives, and barriers to converting short term rentals to long term rentals. On Wednesday, January 18th, city staff from Communications, Legal, Planning Division, and Community Housing Program facilitated and recorded conversations with 13 STR owners at City Hall. Participants were selected from the city’s current list of registered STR owners to represent diversity across duration of time registered with the city, number of STRs owned, and location across the city. Summary of Themes What we heard from participants is summarized into five main themes: 1.Financial benefits of STR over LTR o Participants stated that the income earning potential is greater with STRs o Helps some participants pay their mortgage o Some mentioned STRs as a long-term financial investment for their future (retirement) o About 1/3 of participants voiced support for a financial subsidy to convert their STR to an LTR “Big Sky does it; it’s a short-term solution” “As an owner, it would help bridge that gap” o About 2/3 did not support financial subsidy to convert their STR into an LTR “Tax payers won’t want to foot the bill for a program that only benefits STR owners, and it likely wouldn’t incentivize them anyway” “Subsidy is a recipe for failure. Would not incentivize them to convert. Better off putting subsidy toward building affordable housing” “Focus on future planning. Incentivize developers, not hosts” “Big Sky Rental program is an example of what didn’t work” 2.Lack of enforcement of existing STR regulations o Participants viewed the city as not enforcing or following through on STR regulations and wanted staff to focus on compliance rather than converting or banning STRs “We haven’t seen what enforcement can do – and there are problems w/ the permit system” “People are doing STRs illegally” “Enforce a business license for a type 3” “The data suggests 5,000 STRs for Bozeman may be healthy. We should enforce it, and celebrate it” 3.Flexibility and convenience of STR over LTR o Some participants brought up how STRs are more flexible than LTRs for owners as they want to be able to use it part of the year or have family and friends use the property 108 3.Challenges with landlord/tenant relationships and property maintenance with LTRs o Participants talked about challenges with LTRs when it comes to tenants. There is increased wear and tear on LTRs o Some hosts had long-term rentals and decided to convert to STRs due to bad experiences “Tenants not paying rent, or are late with rent, and the eviction process is daunting” o Many viewed long-term leases as a bigger liability and STRs as less risky. 4.Potential solutions o Bulk leases for large employers – “Hospitals are desperate to find housing. May ease some concerns about finding reliable tenants” o Limits on number of STR licenses per owner – “I shouldn’t be able to have 15 vacation rentals” “Restrict 2nd and 3rd homes as STRs. Prevent out-of-state investors” “Give developers incentives to ban STRs in subdivisions and CC&Rs to prevent future proliferation” o Prohibiting certain types of STRs – “No new Type 3s” “Type 3s have increased drastically. City needs to look at that” “We should all be in favor of more restrictions as long as we are grandfathered in.” o Regulating STRs by location – Setting up a points system on top of existing regulations (seniority, priority in higher intensity zoning districts, fast track ADU eligibility, STR core areas/allowing more in areas with existing STRs) o Create a program to educate, match, and “certify” reliable renters and landlords – Create a pool of funds (from deposits and fees paid by the tenant) to pay for background checks; underwrite leases; offer insurance coverage for damages (like Airbnb) o City and County investment in buying land, developing housing Many view lack of housing and increased rental costs are causing the housing crisis, not STRs. Instead of focusing on STRs, focus on how we can create a housing market and environment that creates more LTRs. Look at vacant land in the County to build housing 109 Final Report Short-Term Rental Assessment Prepared for: City of Bozeman Prepared by: Economic & Planning Systems, Inc. August 1, 2023 EPS #233074 110 Table of Contents Introduction and Summary of Findings ........................................................ 1 Purpose and Scope ........................................................................................ 1 Bozeman Short-Term Rental Program .............................................................. 2 Summary of Findings ..................................................................................... 3 Market Overview ...................................................................................... 7 Short-Term Rentals in Bozeman ................................................................. 9 Location of Short-Term Rentals ....................................................................... 9 STR Inventory ............................................................................................ 10 STR Characteristics ..................................................................................... 12 Short-Term Rental Property Values ................................................................ 15 Role of STRs in the Lodging Market ................................................................ 18 Revenue Potential of STRs ............................................................................ 21 111 List of Tables Table 1. Short-Term Rental Building Characteristics, Bozeman ............................... 12 Table 2. Lodging Inventory, Bozeman, 2023 ....................................................... 18 Table 3. Long-Term Rental Incentive Program Gap Estimate .................................. 22 List of Figures Figure 1. Home Price Trends, Bozeman, 2016-2023 ................................................ 7 Figure 2. Percent Renters and Owners, Bozeman, 2020-2022 ................................... 8 Figure 3. Apartment Rent per Square Foot and Vacancy Rate, Bozeman, 2015-2022 .... 8 Figure 4. Map of Short-Term Rentals, Bozeman ...................................................... 9 Figure 5. Short-Term Rentals, Bozeman and Surrounding Areas, 2020-2023 ............. 11 Figure 6. Age of Short-Term Rental Units, Bozeman, 2023 ..................................... 13 Figure 7. Age of Short-Term Rentals by Type, Bozeman ......................................... 13 Figure 8. Short-Term Rental Bedroom Count by Type, Bozeman .............................. 14 Figure 9. Short-Term Rental Square Footage by Type, Bozeman ............................. 14 Figure 10. Average Assessed Value per Square Foot of Short-Term Rentals, Bozeman . 15 Figure 11. Value per Square Foot of Short-Term Rentals by Percentile ....................... 16 Figure 12. Average Home Sale Price per Square Foot, Short-Term Rentals in Bozeman, 2016-2022 17 Figure 13. Sale Price Distribution, Sales of Short-Term Rentals, 2016-2022 ................ 17 Figure 14. Lodging Tax Revenue, Bozeman, 2012-2022 ........................................... 19 Figure 15. Short-Term Rental Occupancy Rate, Bozeman Area, 2019-2023 ................ 20 Figure 16. Short-Term Rental Average Daily Rate, Bozeman Area, 2019-2023 ............ 20 112 113 Economic & Planning Systems, Inc. 233074-STR Analysis Final Report_08-01-23.docx 1 Introduction and Summary of Findings Short term rental (STR) hosting platforms such as VRBO, Airbnb, FlipKey, and others including locally operated listing sites, have made it easier for homeowners to rent their properties or rooms to overnight guests. Historically, professional property management companies performed these functions and were paid from gross rental revenues, often at a higher cost to property owners than is incurred through STR host platforms. STR host platforms also give people the ability to self-manage their properties to potentially increase revenues and decrease management costs. As online platforms, STR host companies make it possible for people to market their properties to a broad national and even international audience. A significant portion of Bozeman’s economy is supported by tourism, due to its proximity to Bridger Bowl, Big Sky, Yellowstone National Park, and numerous other high quality outdoor recreation assets. In tourism economies, a bed base of hotels and other forms of lodging is needed to host overnight visitor stays. STRs comprised a significant portion of the bed base in tourism areas even before the modern STR platforms. In some places, STR platforms have enabled more STRs to enter the market. Short term rental units comprised of single family homes and condominiums can be an important complement to the hotel bed base. STRs can often accommodate larger groups or families, and have additional amenities not found in hotels such as full kitchens, laundry, and more space and privacy. During the COVID-19 pandemic, STRs were particularly popular with guests because of the perceived increase in space and separation from other parties. The operation of STRs has created concerns that many communities, including Bozeman, are working to address. • Impacts on housing supply and affordability – This STR Assessment focuses on the potential impacts of STRs on Bozeman’s housing supply for long term occupancy and the cost of housing. A common concern is that when a home is operated as an STR, it can take housing out of the supply available for long-term rental or owner occupancy. • Impacts to neighborhood character – STRs can affect the character of neighborhoods in many ways. Busy STRs often spur neighborhood concerns regarding traffic and noise. In off seasons, concentrations of STRs can lead to “dark blocks” that decrease neighborhood vitality. STRs have the potential to bring in new people with frequent turnover, which can reduce neighborliness. Purpose and Scope The Purpose of this STR Assessment is to assess the potential impacts of STRs on housing supply and affordability conditions in Bozeman. The Assessment aims to 114 Short-Term Rental Assessment 2 help policymakers determine if STRs are reducing the availability of housing for long term residents (renters and owners) and/or contributing in a significant way to increasing housing costs in the city. Economic & Planning Systems (EPS) has performed the following analysis and research to inform these questions. • Review of baseline market trends – A summary of key relevant trends in Bozeman including home prices, rental rates, and the percentage of owners and renters. • STR inventory analysis – Analysis of the physical characteristics (size, age, location, etc.) of the housing units used as registered and unregistered STRs. • STR property value analysis – Analysis of the value of STRs compared to all housing in Bozeman, using taxable value data from the Gallatin County Assessor. • STR revenue generation estimate – Estimates of the revenue generated by STR operators to inform the viability of an incentive program designed to encourage converting STRs to long-term rentals. Bozeman Short -Term Rental Program The City of Bozeman requires all short-term rentals to be registered and licensed with the City; to have a Public Accommodations license from the Gallatin County Health Department; and to have a sales and use tax permit from the Montana State Department of Revenue. Taxes and Fees STRs pay the State of Montana a 4.0% Lodging Facility Use Tax and a 4.0% Lodging Facility Sales Tax (combined 8.0 percent), which the state receives, not the City. The City is not able to collect any local sales tax on STRs because it is not authorized to collect the Resort Local Option Tax capped at 3.0 percent. Only communities with a population of under 5,500 that meet certain criteria designated by the legislature are authorized to collect this tax. The City collects a $250 administrative registration fee on STRs that goes towards administering the registration and STR code enforcement programs. 115 Economic & Planning Systems, Inc. 3 Types of STRs The City requires STR operators to register their STR as one of three types of STRs described below. Each type of STR has zoning districts in which they are permitted. Type 1 STR – The STR is also the owner’s primary residence, and the owner is present during rental period. These are allowed in all residential, commercial, and mixed-use zoning districts except for RMH (Residential Manufactured Home Community) and B-1 (Neighborhood Business). Type 1 STRs can include renting individual rooms in a home. Type 2 STR – The STR is the owner’s primary residence, duplex, or accessory dwelling unit, but the owner is not present during the rental period. These are allowed in all residential, commercial, and mixed-use zoning districts except R-S (Residential Suburban), R-1 (Residential low density), RMH (Residential Manufactured Home Community), and B-1 (Neighborhood Business). Type 3 STR – The STR is the entire home and STR is not the owner’s primary residence. These are restricted from residential zoning districts but allowed in commercial, downtown, and mixed-use zoning districts. There have been proposals from stakeholders for the City to ban Type 3 STRs due to their potential impacts on the housing supply for long term residents. Summary of Findings Community Trends and Housing Conditions • The median home price in Bozeman is $767,500 in 2023. The median sale price has increased by 12.4 percent annually since 2016, which means that home prices have more than doubled since then. • In Bozeman, 55 percent of households are renters and 45 percent are owners. This has not changed significantly since 2010, when the share of renters was 53 percent. • The average rent in Bozeman is $1,900 per month ($2.11/sf), which is up significantly from $1,358 in 2010 and $1,446 in 2015. Since 2015, the average rent has increased by an average of 4.0 percent annually. 116 Short-Term Rental Assessment 4 Short-Term Rental Inventory • As of July 2023, there are 263 active registered short-term rentals in Bozeman. In addition, there are an estimated 305 additional properties that have been identified as short-term rentals on listing sites such as Airbnb, VRBO, FlipKey, and HomeAway, that are not registered and therefore not in compliance with the City’s regulations. • In total, there are an estimated 568 short-term rentals currently in Bozeman. With about 22,500 housing units in Bozeman, this means that short-term rentals comprise 2.5 percent of the city’s total housing stock. • Short-term rentals are classified into three types: o 19 percent of registered short-term rentals are classified as Type 1 o 46 percent of registered short-term rentals are classified as Type 2 o 35 percent of registered short-term rentals are classified as Type 3. • The three types of short-term rentals have different characteristics: o Type 1 STRs tend to be larger, single-family homes. Type 1 STRs are relatively older housing stock, with 67 percent being more than 40 years old. o Type 2 STRs tend to be smaller than type 1 STRs and are mostly single-family homes. Type 2 STRs are a mix of older and newer units, with about half of units built before 1980, but about 40 percent of units built after 2000. This indicates that Type 2 STRs are more concentrated in new construction than Type 1 STRs. o Type 3 STRs are generally smaller than type 1 and type 2 STRs, and smaller than the average housing unit in Bozeman. Type 3 STRs have a higher share of townhome/condominium units and are less commonly single-family homes than Type 1 and Type 2 STRs. Lastly, Type 3 STRs have a mix of older and newer units, with 36 percent built after 2000 and 15 percent built after 2010. This indicates that Type 3 STRs are more concentrated in new construction than Type 1 STRs. • Based on AirDNA data, which extends beyond the city limits of Bozeman into Gallatin County, the inventory of short-term rentals has approximately doubled since 2020. While historical data specific to Bozeman is not available, it is reasonable to extrapolate this trend to within city limits. Short-Term Rental Impacts • On average, the assessed value of short-term rentals is 48 percent higher than housing units overall in Bozeman. The median assessed value of a short- term rental is also 49 percent higher than the median assessed value of a housing unit in Bozeman. 117 Economic & Planning Systems, Inc. 5 • About 63 percent of STRs are valued above the median value of housing units in Bozeman. About 20 percent of STRs (80th percentile) are above $270/sf, which is about the 90th percentile of assessed value for all homes. • There are STRs operating in housing with a lower value. A total of 20 percent of short-term rentals are valued at or below the same level as the lowest 20 percent of housing units in Bozeman in terms of value. This indicates that a portion of the STR inventory is located in relatively lower value housing. • Assessed value is consistent between Type 1, Type 2, and Type 3 short-term rentals. Short-Term Rentals and the Economy • Short-term rentals are a significant part of the lodging inventory. STRs comprise 43 percent of the overall bed base (in terms of room count), while hotels comprise 57 percent. In terms of units, STRs comprise 19 percent of the lodging inventory. • Tourism and lodging activity has increased substantially in Bozeman over the past decade. From 2012 to 2022, lodging tax revenue grew by 250 percent, although the vast majority of this growth occurred in 2021 and 2022. • The short-term rental market in Bozeman has performed very well in recent years. The average occupancy increased from 57 percent in 2019 to 68 percent in 2022, while the average daily rate increased from $225 in 2019 to $311 in 2022. This indicates strong and consistent demand for short-term rental stays. Policy Approaches There are numerous approaches to regulating short term rentals, summarized below. • Licensing approaches o Caps or limits on the number of STR licenses issued. o Active enforcement of STR licenses and affirmative obligation requirements. o Tightening owner occupancy requirements for STR licenses, such as requiring that an STR is an owner’s primary residence or that an owner must reside on premises while the unit is rented out. o Limits on rental nights per year. • Zoning approaches o Limiting STRs to specific zoning districts or areas. o Minimum buffers between STRs or limits on STRs per block. o A zoning approach can be combined with a license cap approach, such as by regulating STRs differently by zone district or allocating a set number of licenses to different zone districts/areas/neighborhoods. 118 Short-Term Rental Assessment 6 • Regulatory fees or taxes o Levying an annual fee on short-term rentals per bedroom or unit in addition to the administrative registration fee. This revenue could be specifically used for housing programs. o Additional excise taxes can be levied specifically on STR stays. o Programs that incentivize STR owners to convert their property to long-term rentals for locals, such as lease to locals programs or buy down programs. Long-term rental incentive program It is estimated that the median-revenue STR in Bozeman generates approximately $52,000 per year in annual gross revenue. The annual affordable rent at 60% of AMI is $19,692, which would be paid by a tenant(s). A long-term rental incentive program would need to fill the gap, estimated at $32,216 per rental unit annually. This gap may be higher as we have not accounted for operating expenses or tenant-paid utilities that would increase their costs above the 60% AMI affordable level. While some communities have implemented these programs, there are a number of considerations associated with a long-term rental incentive program: • Not a permanent investment: The City would need to make this subsidy annually, and potentially negotiate it every year as leases renew. If the City invests in an affordable development project, it can get a long-term or permanent affordability guarantee tied to its subsidy money. • Administration and tracking: There would be staff and administrative costs needed to track the active leases and maintain an inventory and enforce compliance. At least 1 additional full-time employee, if not more, would be necessary to administer such a program for a city the size of Bozeman. • Potential impact: STRs in the 25th percentile of annual revenue have more potential to be incentivized to long-term rental, as the annual revenue gap is estimated roughly at just under $10,000. Of the 264 active STRs, about 66 STRs potentially fall into this category, but it would still be up to the homeowner. • Revenue source: Breckenridge, CO is one example of a community that has started a long-term rental incentive program. However, it has several dedicated taxes and fees that go towards this and other programs. • Homeowner preferences: Some STR homeowners also use their units as vacation homes and rent them to offset ownership costs. High-income homeowners, and owners of especially high value homes may simply not prefer to rent their home long-term (or short term) because they do not need the revenue or simply prefer to have it for their own use. 119 Economic & Planning Systems, Inc. 233074-STR Analysis Final Report_08-01-23.docx 7 Market Overview Bozeman has become a high-cost housing market over the past five to 10 years. The current median home price in the city is $767,500 (Figure 1), which is up from $356,181 in 2016, while the current average sale price is $908,711. Since 2016, the median sale price has risen by an average of 12.4 percent per year and the median home price has more than doubled. The year over year percent increases were especially high from 2019-2020 (+17.4%) and 2020-2021 (+29.6%). Home price increases have slowed in 2023, with only a 1.7 percent increase at the end of the second quarter. An income of roughly 160 to 175% of AMI is needed to afford the median home price in Bozeman. Figure 1. Home Price Trends, Bozeman, 2016-2023 $356,181 $385,000 $417,188 $445,863 $522,982 $635,000 $771,000 $773,000 $383,610 $415,846 $437,743 $497,463 $582,022 $777,894 $946,091 $908,711 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 2016 2017 2018 2019 2020 2021 2022 2023* Sale Price Median Sale Price Average Sale Price *Through Q2 2023 Source: Gallatin County Deed Records;Economic& Planning Systems 120 Short-Term Rental Assessment 8 Currently, about 55 percent of households in Bozeman rent their home (Figure 2). The percentage of renters and owners has not shifted substantially since 2000. The presence of Montana State University and its student population has a large influence on the number of renters in the city. Figure 2. Percent Renters and Owners, Bozeman, 2020-2022 Monthly rents for apartments in Bozeman were approximately $1,900 per month or $2.11 per square foot at the end of 2022 (Figure 3). Rents have grown at an annual rate of 4.1 percent. The rental market has had a shortage of supply, as vacancy rates were below a 5.0 percent balanced market benchmark in 2017 through 2022. The shortage of supply may have contributed to rent increases. Figure 3. Apartment Rent per Square Foot and Vacancy Rate, Bozeman, 2015-2022 53.1%54.5%55.0% 46.9%45.5%45.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 2000 2010 2022 Renters Owners Z:\Shared\Projects\DEN\233070 Bozeman 2023 Market Update\Data\[233070 -Bozeman E&D (Esri).xlsx]T-HTenure (ESRI) 121 Economic & Planning Systems, Inc. 233074-STR Analysis Final Report_08-01-23.docx 9 Short-Term Rentals in Bozeman Locat ion of Short -T erm R entals Short-term rentals are primarily concentrated around downtown Bozeman, especially to the north and northeast of downtown. As shown in Figure 4, there is a major cluster of short-term rentals north of Main Street between 7th Avenue and Interstate 90. In addition, there are clusters of short-term rentals south of downtown and in the west end of the city, where short-term rentals have emerged around Valley West. A relatively small number of short-term rentals are scattered around other parts of the city. In terms of type, Type 3 short-term rentals are generally concentrated around the downtown area, particularly in newer condo and multifamily projects. The location of other types of short-term rentals reflects the location of short-term rentals across the city more generally. Figure 4. Map of Short-Term Rentals, Bozeman 122 Short-Term Rental Assessment 10 For active short-term rentals, 38 percent are not in a neighborhood association area. Among STRs that are located with a neighborhood association area, a plurality (38 percent) are in the Northeast Neighborhood Association area, while 16 percent are in the Cooper Park Neighborhood Association area, 13 percent are in the Midtown Neighborhood Association area, 7 percent are in the Bogert Park Neighborhood Association area, and 6 percent are in the South Central Association of Neighbors area. This further highlights that STRs are primarily clustered in and around the downtown area of Bozeman, especially to the north and northeast of downtown. STR Inventory As of July 2023, Bozeman has 264 short-term rentals with active registrations. It is important to note that only a portion of properties used as short-term rentals are officially registered with the City. According to data from the City, there are an estimated 305 additional properties that have been identified as short-term rentals on listing sites such as Airbnb, VRBO, FlipKey, and HomeAway, that are not registered and therefore not in compliance with the City’s regulations. In total, this means that there are an estimated 569 short-term rentals in Bozeman, with slightly over half of them holding active registrations. As of 2022, Bozeman had approximately 22,500 housing units, which means that short-term rentals comprise about 2.5 percent of the city’s overall housing stock. The City is working to increase registration and compliance with its regulations. The City has recently adopted an “Affirmative Obligation Requirement” that places much of the burden of compliance on the STR hosting platforms. Under this requirement, the hosting platforms would be required to obtain proof from the property owner that the property is registered and complies with all local regulations. Several major cities in the U.S. have an Affirmative Obligation requirement. The registered short-term rental inventory is categorized into three different types: Type 1, Type 2, and Type 3. The definitions of these are shown below: • Type 1 STR: The STR is the owner’s primary residence, and the owner is present during rental period. These are allowed in all residential, commercial, and mixed-use zoning districts except for RMH (Residential Manufactured Home Community) and B-1 (Neighborhood Business). Type 1 STRs can include renting individual rooms in a home. o 19 percent of short-term rentals are classified as Type 1. • Type 2 STR: The STR is the owner’s primary residence, duplex or ADU, but the owner is not present during rental period. These are allowed in all residential, commercial, and mixed-use zoning districts except R-S (Residential Suburban), R-1 (Residential low density), RMH (Residential Manufactured Home Community), and B-1 (Neighborhood Business). o 46 percent of short-term rentals are classified as Type 2 123 Economic & Planning Systems, Inc. 11 • Type 3 STR: The STR is the entire home and STR is not the owner’s primary residence. These are restricted from residential zoning district, but are allowed in commercial, downtown, and mixed-use zoning districts. o 35 percent of short-term rentals are classified as Type 3. Another common source for short-term rental data is AirDNA, which tracks short- term rental listings and market trends in the Bozeman area. Notably, the AirDNA market area for Bozeman extends beyond the City of Bozeman to surrounding communities, including Four Corners, Cowan, Patterson, and the eastern end of Gallatin County (such as Bridger, West End, and Chestnut). According to AirDNA, there are 1,192 short-term rentals in Bozeman and the vicinity as of the second quarter of 2023, as shown in Figure 5. The short-term rental inventory has been growing over time, and the current inventory of 1,192 represents an 89 percent increase over the number short-term rentals in the second quarter of 2020. Approximately 93 percent of these short-term rentals are classified as entire homes, while 7 percent are classified as private rooms within homes. It is important to note that AirDNA does not provide a definitive count of STRs in Bozeman, both because its boundaries extend well beyond the city limits and because it has not been edited and cleaned to the same extent that the City’s data on STR licenses and listings has been. Rather, this AirDNA data is an indicator of inventory growth over time. Figure 5. Short-Term Rentals, Bozeman and Surrounding Areas, 2020-2023 630 635 592 608 716 789 800 824 982 1,064 1,087 1,089 1,192 0 200 400 600 800 1,000 1,200 1,400 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Rentals Source: Airdna; Economic& Planning Systems 124 Short-Term Rental Assessment 12 STR Characteristics EPS analyzed characteristics of short-term rentals in Bozeman using the license data provided by the City as well as assessor data. This analysis provides insight into the kinds of properties that are commonly used as short-term rentals. A key point of analysis is categorizing short-term rentals by building type. Short- term rentals fall into three categories of building type: single family homes, duplexes/townhomes (which also includes accessory dwelling units), and multifamily/condo. In Bozeman, 68 percent of registered short-term rentals are classified as single family homes, while 19 percent are duplexes/townhomes, and 13 percent are multifamily/condo units, as shown in Table 1. By comparison, 60 percent of all housing units in Bozeman are single family homes. Building type varies by short-term rental type. Type 1 and Type 2 short-term rentals are primarily in single family homes, with 70 and 71 percent of Type 1 and Type 2 STRs classified as single family homes, respectively. About 14 percent of Type 1 and 25 percent of Type 2 STRs are duplexes/townhomes, while 16 percent of Type 1 and 5 percent of Type 2 STRs are multifamily/condo units. By contrast, Type 3 short-term rentals are more commonly multifamily/condo units, which comprise 31 percent of Type 3 STRs, while duplexes/townhomes comprise 17 percent, and single family homes comprise 53 percent. In summary, a majority of short-term rentals are in single family homes, which generally reflects the overall housing stock in Bozeman, although Type 3 short-term rentals are more likely to be located in multifamily/condo units. Table 1. Short-Term Rental Building Characteristics, Bozeman Short-term rental units are generally older than the overall housing stock in Bozeman. As shown in Figure 6, 53 percent of short-term rentals are more than 40 years old, compared to 33 percent of units citywide. The share of short-term rentals built in the past 10 to 20 years is similar to the share of housing units built in Bozeman as a whole in the past 10 to 20 years, indicating that short-term rentals as a whole are not over or underrepresented in new residential construction. Description Type 1 Type 2 Type 3 STRs Overall Building Type Single Family 70%71%53%68% Duplex/Townhome 14%25%17%19% Multifamily/Condo 16%5%31%13% Source: City of Bozeman; Economic & Planning Systems Z:\Shared\Projects\DEN\233074-Bozeman STR\Data\[233074-Bozeman STR Data.xlsx]T-Report Table (2) 125 Economic & Planning Systems, Inc. 13 However, when analyzed by type, the age of the short-term rental stock is more varied. Type 1 short-term rentals are predominantly older units, while Type 2 and Type 3 short-term rentals tend to be newer units and more heavily represented in new construction. As shown in Figure 7, 67 percent of Type 1 STRs are more than 40 years old, compared to 52 percent of Type 2 and 55 percent of Type 3 STRs. Moreover, 36 percent of Type 3 STRs are less than 20 years old, compared to 40 percent of Type 2 and 28 percent of Type 1 STRs. Figure 6. Age of Short-Term Rental Units, Bozeman, 2023 Figure 7. Age of Short-Term Rentals by Type, Bozeman 53% 3% 3% 19% 21% 33% 9% 14% 20% 24% 0%10%20%30%40%50%60% 40+ Years 30-40 Years 20-30 Years 10-20 Years Less than 10 Years Short-Term Rentals All Housing Units Source: City of Bozeman; U.S. Census; Economic& Planning Systems 67% 5% 0% 14% 14% 52% 2% 5% 20% 20% 55% 0% 9% 21% 15% 0%10%20%30%40%50%60%70%80% 40+ Years 30-40 Years 20-30 Years 10-20 Years Less than 10 Years Type 1 Type 2 Type 3 Source: City of Bozeman; U.S. Census; Economic& Planning Systems 126 Short-Term Rental Assessment 14 Short-term rentals have an average of 3.30 bedrooms per unit, which is slightly lower than the Bozeman average of 3.38 bedrooms per unit, as shown in Figure 8. Type 1 short-term rentals have the highest average number of bedrooms, with 3.56 bedrooms per unit, while Type 2 STRs have an average of 3.15 bedrooms per unit, and Type 3 STRs have an average of 3.03 bedrooms per unit. This indicates that Type 3 STRs tend to be smaller than Type 2 and Type 1 STRs. The average size of short-term rentals shows a similar pattern. Overall, short- term rentals have an average size of 1,759 square feet per unit, compared to 1,816 square feet for units in the housing stock overall, as shown in Figure 9. Type 3 STRs are generally smaller units, with an average of 1,602 square feet per unit, compared to an average of 1,649 square feet per unit for Type 2 STRs, and an average of 1,923 square feet per unit for Type 1 STRs. Figure 8. Short-Term Rental Bedroom Count by Type, Bozeman Figure 9. Short-Term Rental Square Footage by Type, Bozeman 3.56 3.15 3.03 3.30 3.38 2.70 2.80 2.90 3.00 3.10 3.20 3.30 3.40 3.50 3.60 Type 1 Type 2 Type 3 STRs Overall Bozeman Overall Avg. # of Bedrooms Source: City of Bozeman;Economic& Planning Systems 1,923 1,649 1,602 1,759 1,816 0 500 1,000 1,500 2,000 2,500 Type 1 Type 2 Type 3 STRs Overall Bozeman Overall Avg. Sq. Feet Source: City of Bozeman;Economic& Planning Systems 127 Economic & Planning Systems, Inc. 15 Short-Term Rental Property Values Assessor Values EPS analyzed the value of STRs compared to all housing units in the city. Assessed value from the Gallatin County Assessor was used to compare value characteristics. The assessed value data is from the last reappraisal cycle and is therefore lower than 2023 market values. Additionally, it is unlikely that the Gallatin County Assessor considers the use of a unit as an STR in determining value. The analysis shows that on average, STRs operate in higher valued property compared to citywide averages. Short-term rentals have an assessed value of $177 per square foot, which is 48 percent higher than the average for all housing units in Bozeman at $119 per square foot, as shown in Figure 10. Similarly, the median assessed value per square foot of a short-term rental is 49 percent higher than the overall median assessed value of housing units in Bozeman. Furthermore, about 63 percent of STRs are valued above the median assessed value of housing units in Bozeman, while 20 percent of STRs (80th percentile) are valued above $270 per square foot, which is the 90th percentile of assessed value for all homes in Bozeman, as shown in Figure 11. These data show that STRs are generally higher-value homes relative to the rest of the housing stock in Bozeman. Among STR types, values are relatively consistent, with Type 2 and Type 3 STRs having slightly higher values than Type 1 STRs. Figure 10. Average Assessed Value per Square Foot of Short-Term Rentals, Bozeman $170 $180 $179 $177 $119 $40 $60 $80 $100 $120 $140 $160 $180 $200 Type 1 Type 2 Type 3 STRs Overall Bozeman Overall Avg. Value per Sq. Foot Source: City of Bozeman;Gallatin County Assessor; Economic & Planning Systems 128 Short-Term Rental Assessment 16 While STRs are generally high value housing units relative to other housing units in Bozeman, there are still STRs operating in housing with lower assessed values. A total of 20 percent of short-term rentals are valued at or below the same level as the lowest-valued 20 percent of housing units in Bozeman. A portion of the STR inventory is therefore located in relatively lower value housing – STRs are not exclusively concentrated in higher-end, less accessible housing stock, and have emerged in units that may be more affordable to middle-class and working-class owners or renters. This suggests that restrictions on STRs may affect only a small portion of the housing supply and suggests that if these units were not permitted to be rented as STRs, they would not become affordable long-term rentals or homes for sale without additional subsidy or support. Figure 11. Value per Square Foot of Short-Term Rentals by Percentile Sales Prices EPS also evaluated the recent sale prices of STRs in Bozeman. Sale prices more closely reflect market values than assessor data and are a key data point in analyzing property and housing characteristics. Sales prices also show that STRs are generally more expensive than other homes in Bozeman. In 2022, short-term rentals had an average sale price of $532 per square foot, which is 25 percent higher than the overall average sale price per square foot in 2022 in Bozeman of $425 (Figure 12). Short-term rentals also had an overall median sale price of $797,500 in 2022, which is 3.5 percent higher than the median sale price in Bozeman of $771,000. From 2016 to 2022, the average sale price per square foot of short-term rentals increased by 148 percent and has been consistently higher in each of those years than the average sale price per square foot for home sales in Bozeman as a whole. $62 $95 $126 $167 $270 $61 $76 $85 $97 $149 $0 $50 $100 $150 $200 $250 $300 20th Percentile 40th Percentile Median 60th Percentile 80th Percentile Value psf Short-Term Rentals Bozeman Overall Source: City of Bozeman; Economic& Planning Systems 129 Economic & Planning Systems, Inc. 17 EPS also analyzed the sales distribution by area median income of short-term rentals. To estimate the affordable price, EPS used the median household income for a 3-person household as determined by HUD in each of the sales years analyzed (2016 through 2023) and calculated the sale price if a household at this income level were to spend 30 percent of its income on housing costs. In total, 20 percent of sales were affordable to households below 100 percent of area median income, compared to 26 percent of sales citywide, while 35 percent were affordable to households below 120 percent of area median income, as shown in Figure 13. The trends in sale prices for short-term rentals provide further indication that short-term rentals are generally higher-value housing relative to the rest of the housing stock in Bozeman. It also highlights that units used as short-term rentals are unaffordable to most households in Bozeman, and especially to middle-class and working-class households. Figure 12. Average Home Sale Price per Square Foot, Short-Term Rentals in Bozeman, 2016-2022 Figure 13. Sale Price Distribution, Sales of Short-Term Rentals, 2016-2022 $214 $297 $337 $426 $353 $435 $532 $185 $209 $224 $241 $269 $347 $425 $0 $100 $200 $300 $400 $500 $600 2016 2017 2018 2019 2020 2021 2022 Sale Price/sf Short-term rentals Sales Overall Source: Gallatin County Deed Records;Economic& Planning Systems Under 50% AMI 1% 50%-80% AMI 8% 80%-100% AMI 11% Above 100% AMI 15% Above 120% AMI 65% 0%10%20%30%40%50%60%70%80%90%100% % of total Source: Gallatin County Deed Records; Economic& Planning Systems 130 Short-Term Rental Assessment 18 Role of STRs in the Lodging Market Over the past 10 to 20 years, short-term rentals have become a large part of the market for lodging and accommodations. With the growth of platforms such as Airbnb and Vrbo, which have democratized the ability of property owners to rent their units to guests, short-term rentals have proliferated in markets across the U.S., especially those with strong demand for tourism like Bozeman. Short-term rentals are a significant part of the lodging inventory in Bozeman. STRs comprise 19 percent of the lodging inventory in terms of unit count, while hotels comprise 81 percent. In terms of bedrooms, the share of short-term rentals is much higher, as STRs comprise 43 percent of the lodging inventory in terms of bedrooms/bed base, while hotels comprise 57 percent, as shown in Table 2. So, while hotel rooms still make up the majority of Bozeman’s bed base, STRs play an important role in the ability of the city to accommodate visitors. STRs also cater to different group and visitor preferences as they have more space, kitchens, and sometimes yards and garages. Table 2. Lodging Inventory, Bozeman, 2023 Description Total Units/Rooms Bedrooms % of Inventory* Current Lodging Hotels 2,447 2,447 57% Short-Term Rentals 568 1,852 43% Total Bed Base 3,015 4,299 100% *In terms of bedrooms Source: City of Bozeman; Economic & Planning Systems Z:\Shared\Projects\DEN\233074-Bozeman STR\Data\[233074-Hotel Inventory.xlsx]T-Summary 131 Economic & Planning Systems, Inc. 19 Tourism and lodging activity has increased substantially in Bozeman over the past decade, based on growth in lodging tax revenue.1 From 2012 to 2022, lodging tax revenue grew by 250 percent or an average of 13 percent annually, although the vast majority of this growth occurred in 2021 and 2022, when year-over-year revenue increased by 103 percent and 19 percent, respectively, as shown in Figure 14. While some of this growth in 2021 and 2022 can be attributed to a sharp uptick in domestic and recreational travel resulting from the impacts of the COVID-19 pandemic, the general trend over the past decade shows that visitation activity in Bozeman has been strong. Figure 14. Lodging Tax Revenue, Bozeman, 2012-2022 1 This refers to revenue from the 4% Lodging Facility Use Tax levied on lodging stays. The revenue goes to various state and local special revenue funds - primarily to the Montana Department of Commerce. A portion of the revenue collected in Bozeman go back to the local convention & visitors bureau (CVB) and local tourism region. $1,500,892 $1,718,816 $1,881,925 $2,138,488 $2,244,100 $2,408,222 $2,612,460 $2,877,820 $2,188,093 $4,449,097 $5,299,333 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Ann. Revenue Source: Montana Dept. of Revenue; Economic & Planning Systems 132 Short-Term Rental Assessment 20 The short-term rental market in Bozeman has performed well over the past several years. Occupancy rates have been rising, with the average annual occupancy rate of short-term rentals increasing from 57 percent in 2019 to 68 percent in 2022, with the highest occupancy rates achieved in the summer months when the monthly occupancy rate is often above 80 percent, as shown in Figure 15. The average daily rate for short-term rentals has also been going up, as it increased from an annual average of $225 in 2019 to $311 in 2022, which represents a 38 percent increase, outpacing inflation as measured by the consumer price index, which increased by 25 percent over the same period. This indicates strong and consistent demand for short-term rental stays. Figure 15. Short-Term Rental Occupancy Rate, Bozeman Area, 2019-2023 Figure 16. Short-Term Rental Average Daily Rate, Bozeman Area, 2019-2023 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Jan 2019 May 2019 Sep 2019 Jan 2020 May 2020 Sep 2020 Jan 2021 May 2021 Sep 2021 Jan 2022 May 2022 Sep 2022 Jan 2023 May 2023 % Occupancy Monthly Occupancy Annual Avg. Occupancy Source: Airdna; Economic & Planning Systems $225 $241 $281 $311 $308 $0 $50 $100 $150 $200 $250 $300 $350 2019 2020 2021 2022 2023* Avg. Daily Rate *Through June Source: Airdna; Economic & Planning Systems 133 Economic & Planning Systems, Inc. 21 Revenue P otential of STRs One option that has been proposed in the community is to explore an incentive program that would pay STR owners to convert their home to a long-term rental. In Table 3 we show a rough calculation of the annual revenue per unit needed to make a program like this viable. Using data from AirDNA, it is estimated that the median-revenue STR in Bozeman generates approximately $52,000 per year in annual gross revenue. The annual affordable rent at 60% of AMI is $19,692 which would be paid by a tenant(s). A long term rental incentive program would need to fill the gap, estimated at $32,216 per rental unit annually. This gap may be higher as we have not accounted for operating expenses or tenant-paid utilities which would increase their costs above the 60% AMI affordable level. There are a number of considerations associated with a long-term rental incentive program: • Not a permanent investment: The City would need to make this subsidy annually, and potentially negotiate it every year as leases renew. If the City invests in an affordable development project, however, it can get a long-term or permanent affordability guarantee tied to its subsidy money. • Administration and tracking: There would be staff and administrative costs needed to track the active leases and maintain an inventory and enforce compliance. At least 1 additional full-time employee, if not more, would be necessary to administer such a program for a city the size of Bozeman. • Potential impact: STRs in the 25th percentile of annual revenue have more potential to be incentivized to long-term rental, as the annual revenue gap is estimated roughly at just under $10,000. Of the 264 active STRs, about 66 STRs potentially fall into this category, but it would still be up to the homeowner. • Revenue source: Breckenridge, CO is one example of a community that has started a long-term rental incentive program. However, it has several dedicated taxes and fees that go towards this and other programs. Is this bullet needed here (as it is not included below where this section is repeated. • Homeowner preferences: Some STR homeowners also use their units as vacation homes and rent them to offset ownership costs. High-income homeowners, and owners of especially high value homes may simply not prefer to rent their home long-term (or short term) because they do not need the revenue or simply prefer to have it for their own use. 134 Short-Term Rental Assessment 22 Table 3. Long-Term Rental Incentive Program Gap Estimate Description 25th Percentile Median 75th Percentile Bedrooms Monthly Revenue $2,670 $4,326 $6,643 Annual Revenue $32,040 $51,908 $79,710 Monthly Rental - 60% AMI $1,641 $1,641 $1,641 Annual Rental - 60% AMI $19,692 $19,692 $19,692 Monthly Avg. Market Rate Apartment $1,900 $1,900 $1,900 Annual Avg. Market Rate Apartment $22,800 $22,800 $22,800 60% AMI $12,348 $32,216 $60,018 Market Rate Apartment $9,240 $29,108 $56,910 [1] Novagradac income and rent calculator via HUD Source: Economic & Planning Systems Z:\Shared\Projects\DEN\233074-Bozeman STR\Data\[233074-Airdna Data.xlsx]T-Revenue potential BD Short-term Rentals Short-term Rentals Affordable Rent (3 bedroom) [1] Annual Revenue Gap to Fill 135 Memorandum REPORT TO:City Commission FROM:Kira Peters, City of Bozeman Assistant City Manager Anna Saverud, City of Bozeman Assistant City Attorney SUBJECT:Ordinance 2147 Provisional Adoption of Regulations for Camping on City Right-of-way MEETING DATE:August 8, 2023 AGENDA ITEM TYPE:Ordinance RECOMMENDATION: I move to provisionally adopt Ordinance 2147, the Regulations for Camping on City Right-of-Way. STRATEGIC PLAN:4.5 Housing and Transportation Choices: Vigorously encourage, through a wide variety of actions, the development of sustainable and lasting housing options for underserved individuals and families and improve mobility options that accommodate all travel modes. BACKGROUND:There is a documented increase in the number of recreational vehicles, campers, vans and other vehicles on the public right-of-way throughout the City of Bozeman where people are residing or using the right-of-way for additional storage. The city would like to ensure that the public rights-of-way, which is intended for the purposes of travel for all residents, are unencumbered, that street maintenance including snow removal can occur as needed, that solid waste or other waste does not accumulate impacting the health of residents or negatively impact stormwater systems, and to balance community interests and concerns. It necessary for the health, safety, and welfare of all residents of the city and users of the public rights-of-way to align the municipal code with federal law and provide appropriate time, place and manner restrictions on the use of the public right-of-way for camping. UNRESOLVED ISSUES:None at this time. ALTERNATIVES:As directed by City of Bozeman Commission. FISCAL EFFECTS:Total Estimated Fiscal Year Impacts: $353,000 (Estimated cost of towing and 136 street clean is $153,000 and estimated cost of two new positions to support education and compliance is $200,000) Report compiled on: July 21, 2023 137 Memorandum REPORT TO:City Commission FROM:Susana Montana, Senior Planner Brian Krueger, Development Review Division Manager Erin George, Deputy Director of Community Development Anna Bentley, Director of Community Development SUBJECT:Continue the Public Meeting to Consider the Aaker Phase 1 Major Subdivision Preliminary Plat Application to the August 15, 2023 Commission Meeting (Quasi-Judicial) MEETING DATE:August 8, 2023 AGENDA ITEM TYPE:Community Development - Quasi-Judicial RECOMMENDATION:I move to continue the Aaker Phase 1 Major Subdivision Preliminary Plat application to the August 15, 2023 meeting. STRATEGIC PLAN:4.2 High Quality Urban Approach: Continue to support high-quality planning, ranging from building design to neighborhood layouts, while pursuing urban approaches to issues such as multimodal transportation, infill, density, connected trails and parks, and walkable neighborhoods. BACKGROUND:This is an application for a major subdivision preliminary plat to divide a 95.41 acre parcel into 11 lots consisting of 7 buildable lots, 2 common open space lots, 1 park lot and 1 restricted lot, called Tract B on the plat map. The Phase 1 development includes the 7 buildable lots, 2 open space lots, and the park lot which contains wetlands; these lots are zoned REMU, Residential Emphasis Mixed Use. The Tract B Restricted Lot is zoned B-2M and also contains a wetland area. Development of Tract B as a second phase would require a separate subdivision application. The subdivider requests two Unified Development Code variances with this application: a variance to Section 38.400.010.A.1 Relation to Undeveloped Area; and a variance to Section 38.420.060.A Parkland Frontage. The City did not receive any public comment on the application as of the August 2, 2023 date of this report. At the last minute, the Applicant requested some amendments to staff- recommended conditions and code provisions for this project which caused a delay in the preparation of the staff report to the Commission; hence the need to delay the hearing for one week to August 15, 2023. Thank you. 138 UNRESOLVED ISSUES:None ALTERNATIVES:None FISCAL EFFECTS:None Report compiled on: August 2, 2023 139