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HomeMy WebLinkAbout10-24-23 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.FYI E.Commission Disclosures F.Consent F.1 Accounts Payable Claims Review and Approval (Waters) F.2 Formal Cancellation of the November 7, 2023 Regular City Commission Meeting (Newby) F.3 Appoint a sub-committee of two commissioners to review pledged securities as of September 30, 2023.(Hodnett) THE CITY COMMISSION OF BOZEMAN, MONTANA REGULAR MEETING AGENDA Tuesday, October 24, 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 F.4 Authorize the City Manager to sign a GIS software license renewal for Small Municipal and County Government Enterprise Agreement (SGEA) with ESRI.(Jorgenson) F.5 Authorize the City Manager to Sign a Subordination of Development Agreement and Agreement for Infrastructure Improvements for Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue(Fine) F.6 Authorize the City Manager to sign Agreement for Infrastructure Improvements Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue(Fine) F.7 Authorize the City Manager to Sign an Architectural Services Agreement with A&E Design for Bozeman City Hall Renovation(Ziegler) F.8 Authorize City Manager to Sign a Construction Agreement with Northern Hardwood Co., Inc. for Story Mill Community Center Gym Flooring Installation(Ziegler) F.9 Authorize the City Manager to Sign an Amendment to Professional Services Agreement with Morten Group, LLC for the completion of the Belonging in Bozeman Equity & Inclusion Plan(Hess) F.10 Authorize the City Manager to sign a Second Amendment to the Professional Services Agreement with Greenspace Landscaping for plowing services in the Bridger Park Garage and surrounding sidewalks(Veselik) F.11 Authorize the City Manager to sign a Second Amendment to the Professional Services Agreement with Clean Slate Group for snow plowing services(Veselik) F.12 Resolution 5401 the Bennett Properties Annexation, Annexing 36.980 acres and Adjacent Rights-of-Way, Application 22380(Rogers) F.13 Resolution 5530 Intent to Modify Special Improvement Lighting District 766 for Intent to include Northwest Crossing phase 2.(Hodnett) F.14 Resolution 5546 Approving an Amendment to a Development Agreement for a Project in the Midtown Urban Renewal District Known as the Lumberyard Project(Fine) F.15 Resolution 5548 Approving Certain Infrastructure Improvements as an Urban Renewal Project with Respect to the Downtown Bozeman Improvement District and the Bozeman Midtown Urban Renewal District; Making Findings with Respect Thereto and Approving the Use of Tax Increment Revenues to Reimburse Costs Thereof and Approving a Related Development Agreement for the Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue(Fine) F.16 Ordinance 2113, Provisional Adoption of the Bennett Properties Annexation Zone Map Amendment, Establishing Residential Emphasis Mixed Use Zoning on 36.980 acres and Adjacent Rights-of-Way, Application 22380(Rogers) F.17 Ordinance 2147 Final Adoption of Regulations for Camping on City Right-of-way (Peters) G.Public Comment 2 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. H.Action Items H.1 Resolution 5547 Adopting the City of Bozeman 2023 Water Conservation and Efficiency Plan(Ahlstrom) I.Work Session I.1 Biennial Budget Discussion(Hodnett) J.FYI / Discussion K.Adjournment City Commission meetings are open to all members of the public. If you have a disability and require assistance, please contact the City for ADA coordination, 406.582.2306 (TDD 406.582.2301). Commission meetings are televised live on cable channel 190 and streamed live on our Meeting Videos Page. 3 Memorandum REPORT TO:City Commission FROM:Nadine Waters, Accounts Payable Clerk Nicole Armstrong, Accounts Payable Clerk Aaron Funk, City Controller Melissa Hodnett, Finance Director SUBJECT:Accounts Payable Claims Review and Approval MEETING DATE:October 24, 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: September 22, 2023 4 Memorandum REPORT TO:City Commission FROM:Alex Newby, Deputy City Clerk Mike Maas, City Clerk Kira Peters, Assistant City Manager Jeff Mihelich, City Manager SUBJECT:Formal Cancellation of the November 7, 2023 Regular City Commission Meeting MEETING DATE:October 24, 2023 AGENDA ITEM TYPE:Administration RECOMMENDATION:Approve cancelling the regular City Commission meeting on November 7, 2023. STRATEGIC PLAN:1.1 Outreach: Continue to strengthen and innovate in how we deliver information to the community and our partners. BACKGROUND:The Mayor has decided not to meet on November 7, 2023. Per Bozeman Municipal Code Sec. 2.02.070.A.4, the Mayor or majority of the Commission may cancel a regular meeting if no business is scheduled for that meeting. This item formalizes this decision to cancel the meeting. UNRESOLVED ISSUES:None ALTERNATIVES:As determined by the City Commission. FISCAL EFFECTS:None. Report compiled on: September 6, 2023 5 Memorandum REPORT TO:City Commission FROM:Clark SUBJECT: Appoint a sub-committee of two commissioners to review pledged securities as of September 30, 2023. MEETING DATE:October 24, 2023 AGENDA ITEM TYPE:Finance RECOMMENDATION: Appoint Deputy Mayor Cunningham and Commissioner Madgic to review the depository bonds and pledged securities as of September 30, 2023. STRATEGIC PLAN:7.5. Funding and Delivery of City Services: Use equitable and sustainable sources of funding for appropriate City services, and deliver them in a lean and efficient manner. BACKGROUND: 17-6-102. Insurance on deposits. (1) Deposits in excess of the amount insured by the federal deposit insurance corporation or the national credit union administration may not be made unless the bank, building and loan association, savings and loan association, or credit union first delivers to the state treasurer or deposits in trust with some solvent bank, as security therefore, bonds or other obligations of the kinds listed in 17-6-103, having a market value equal to at least 50% of the amount of the deposits in excess of the amount insured. The board of investments may require security of a greater value. When negotiable securities are placed in trust, the trustee's receipt may be accepted instead of the actual securities if the receipt is in favor of the state treasurer, successors in office, and the state of Montana and the form of receipt and the trustee have been approved by the board of investments. (2) Any bank, building and loan association, savings and loan association, or credit union pledging securities as provided in this section may at any time substitute securities for any part of the securities pledged. The substituted collateral must conform to 17-6-103 and have a market value at least sufficient for compliance with subsection (1). If the substituted securities are held in trust, the trustee shall, on the same day the substitution is made, forward by registered or certified mail to the state 6 treasurer and to the depository financial institution a receipt specifically describing and identifying both the securities substituted and those released and returned to the depository financial institution. Section 7-6-207 (2), MCA requires the City Commission to approve pledged securities at least quarterly. The Commission appoints two commissioners quarterly on a rotating basis. UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the City Commission FISCAL EFFECTS:The city is sufficiently pledged. Attachments: Depository Bonds & Securities 0923.pdf Report compiled on: October 6, 2023 7 DEPOSITORY BONDS AND SECURITIES AS OF September 30, 2023 MATURITY CUSIP NO/LOC NO. TOTAL AMOUNT US BANK All Accounts Federal Deposit Insurance Corporation-Operating Accts $ 250,000.00 LOC-FHLB Cincinnati 7/14/2023 570988 $ 20,000,000.00 TOTAL – US Bank $ 20,250,000.00 This is to certify that we, the Commission of the City of Bozeman, in compliance with the provisions of Section 7-6- 207, M.C.A., have this day certified the receipts of US Bank, for the Depository Bonds held by the Director of Finance as security, for the deposit for the City of Bozeman funds as of September 30, 2023, by the banks of Bozeman and approve and accept the same. _____________________________________________ CYNTHIA L. ANDRUS, Mayor _______________________________________ _______________________________________ TERRY CUNNINGHAM, Deputy Mayor I-HO POMEROY, Commissioner _______________________________________ _______________________________________ CHRISTOPHER COBURN, Commissioner JENNIFER MADGIC, Commissioner 8 PLEDGED SECURITIES AND CASH IN BANK As of September 30, 2023 US BANK Total Cash on Deposit $3,040,576.46 FDIC Coverage $250,000.00 Amount Remaining $2,790,576.46 Pledges Required 104% $2,902,199.52 Actual Pledges $20,000,000.00 Over (Under) Pledged $17,097,800.48 REFERENCE: Section 7-6-207, M.C.A. 9 Memorandum REPORT TO:City Commission FROM:Gail Jorgenson, GIS Program Manager SUBJECT:Authorize the City Manager to sign a GIS software license renewal for Small Municipal and County Government Enterprise Agreement (SGEA) with ESRI. MEETING DATE:October 24, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign a GIS software license renewal for Small Municipal and County Government Enterprise Agreement (SGEA) with ESRI. STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a mechanism to encourage economic development. BACKGROUND:The City of Bozeman entered into a license agreement with ESRI to provide enterprise-wide GIS software applications in 2014. This enterprise agreement provides a lower cost per unit for licensed software, substantially reduced administrative and procurement expenses, and complete flexibility to deploy software products when and where needed. The City relies on GIS as the backbone for work order management (Cityworks), performance measures (e.g., dashboard technology), community engagement (e.g., strategic plan communication tools), along with a host of other solutions such as interactive maps available to the public. This license renewal will secure a fixed fee for the next three years based on our current population. UNRESOLVED ISSUES:None. ALTERNATIVES:None. FISCAL EFFECTS:$44,821 (ELA), $6590.96 (Urban Licenses), $5,000 (Hub Premium) for year one within the agreement is currently approved within the FY24 operating budget for the Strategic Services Department. Future budget approvals will be necessary to fund subsequent fiscal years. Attachments: ESRI Small Municipal and County Government Enterprise Agreement (SGEA).pdf 10 Report compiled on: October 2, 2023 11 Quotation # Q-488392 Date: June 14, 2023 Environmental Systems Research Institute, Inc. 380 New York St Redlands, CA 92373-8100 Phone: (909) 793-2853 DUNS Number: 06-313-4175 CAGE Code: 0AMS3 Customer # 144125 Contract # ENTERPRISE AGREEMENT City of Bozeman GIS Dept 20 E Olive St Bozeman, MT 59715-4790 To expedite your order, please attach a copy of ATTENTION:Jon Henderson this quotation to your purchase order. PHONE:(406) 582-2250 Quote is valid from: 4/20/2023 To: 7/19/2023 EMAIL:jon.henderson@bozeman.net Material Qty Term Unit Price Total 168178 1 Year 1 $44,821.00 $44,821.00 Populations of 25,001 to 50,000 Small Government Enterprise Agreement Annual Subscription 168178 1 Year 2 $44,821.00 $44,821.00 Populations of 25,001 to 50,000 Small Government Enterprise Agreement Annual Subscription 168178 1 Year 3 $44,821.00 $44,821.00 Populations of 25,001 to 50,000 Small Government Enterprise Agreement Annual Subscription 159166 1 $5,000.00 $5,000.00 ArcGIS Hub Premium ArcGIS Online Community Annual Subscription 178731 6 $1,650.00 $9,900.00 ArcGIS Urban Online Annual Subscription Esri may charge a fee to cover expenses related to any customer requirement to use a proprietary vendor management, procurement, or invoice program. For questions contact: Jan Cunningham Email: jcunningham@esri.com Phone: (909) 369-4363 x4363 The items on this quotation are subject to and governed by the terms of this quotation, the most current product specific scope of use documentfound at https://assets.esri.com/content/dam/esrisites/media/legal/product-specific-terms-of-use/e300.pdf, and your applicable signed agreementwith Esri. If no such agreement covers any item quoted, then Esri’s standard terms and conditions found at https://go.esri.com/MAPS apply to yourpurchase of that item. If any item is quoted with a multi-year payment schedule, then unless otherwise stated in this quotation, Customer is requiredto make all payments without right of cancellation. Third-party data sets included in a quotation as separately licensed items will only be providedand invoiced if Esri is able to provide such data and will be subject to the applicable third-party's terms and conditions. If Esri is unable to provideany such data set, Customer will not be responsible for any further payments for the data set. US Federal government entities and US governmentprime contractors authorized under FAR 51.1 may purchase under the terms of Esri’s GSA Federal Supply Schedule. Supplemental terms andconditions found at https://www.esri.com/en-us/legal/terms/state-supplemental apply to some US state and local government purchases. All termsof this quotation will be incorporated into and become part of any additional agreement regarding Esri’s offerings. Acceptance of this quotation islimited to the terms of this quotation. Esri objects to and expressly rejects any different or additional terms contained in any purchase order, offer,or confirmation sent to or to be sent by buyer. Unless prohibited by law, the quotation information is confidential and may not be copied or releasedother than for the express purpose of system selection and purchase/license. The information may not be given to outside parties or used for anyother purpose without consent from Esri. Delivery is FOB Origin for customers located in the USA. CUNNINGHAMJ This offer is limited to the terms and conditions incorporated and attached herein. 12 Quotation # Q-488392 Date: June 14, 2023 Environmental Systems Research Institute, Inc. 380 New York St Redlands, CA 92373-8100 Phone: (909) 793-2853 DUNS Number: 06-313-4175 CAGE Code: 0AMS3 Customer # 144125 Contract # ENTERPRISE AGREEMENT City of Bozeman GIS Dept 20 E Olive St Bozeman, MT 59715-4790 To expedite your order, please attach a copy of ATTENTION:Jon Henderson this quotation to your purchase order. PHONE:(406) 582-2250 Quote is valid from: 4/20/2023 To: 7/19/2023 EMAIL:jon.henderson@bozeman.net Subtotal:$149,363.00 Sales Tax:$0.00 Estimated Shipping and Handling (2 Day Delivery):$0.00 Contract Price Adjust:$0.00 Total:$149,363.00 pricing reflects the city's population growth of 12.9% beyond the population tier of the Small Government Enterprise Agreement Esri may charge a fee to cover expenses related to any customer requirement to use a proprietary vendor management, procurement, or invoice program. For questions contact: Jan Cunningham Email: jcunningham@esri.com Phone: (909) 369-4363 x4363 The items on this quotation are subject to and governed by the terms of this quotation, the most current product specific scope of use documentfound at https://assets.esri.com/content/dam/esrisites/media/legal/product-specific-terms-of-use/e300.pdf, and your applicable signed agreementwith Esri. If no such agreement covers any item quoted, then Esri’s standard terms and conditions found at https://go.esri.com/MAPS apply to yourpurchase of that item. If any item is quoted with a multi-year payment schedule, then unless otherwise stated in this quotation, Customer is requiredto make all payments without right of cancellation. Third-party data sets included in a quotation as separately licensed items will only be providedand invoiced if Esri is able to provide such data and will be subject to the applicable third-party's terms and conditions. If Esri is unable to provideany such data set, Customer will not be responsible for any further payments for the data set. US Federal government entities and US governmentprime contractors authorized under FAR 51.1 may purchase under the terms of Esri’s GSA Federal Supply Schedule. Supplemental terms andconditions found at https://www.esri.com/en-us/legal/terms/state-supplemental apply to some US state and local government purchases. All termsof this quotation will be incorporated into and become part of any additional agreement regarding Esri’s offerings. Acceptance of this quotation islimited to the terms of this quotation. Esri objects to and expressly rejects any different or additional terms contained in any purchase order, offer,or confirmation sent to or to be sent by buyer. Unless prohibited by law, the quotation information is confidential and may not be copied or releasedother than for the express purpose of system selection and purchase/license. The information may not be given to outside parties or used for anyother purpose without consent from Esri. Delivery is FOB Origin for customers located in the USA. CUNNINGHAMJ This offer is limited to the terms and conditions incorporated and attached herein. 13 Quotation # Q-488392 Date: July 31, 2023 Environmental Systems Research Institute, Inc. 380 New York St Redlands, CA 92373-8100 Phone: (909) 793-2853 DUNS Number: 06-313-4175 CAGE Code: 0AMS3 Customer # 144125 Contract # ENTERPRISE AGREEMENT City of Bozeman GIS Dept 20 E Olive St Bozeman, MT 59715-4790 To expedite your order, please attach a copy of ATTENTION:Jon Henderson this quotation to your purchase order. PHONE:(406) 582-2250 Quote is valid from: 4/20/2023 To: 10/17/2023 EMAIL:jon.henderson@bozeman.net _________________________________________________________________________________________________________________________________ If you have made ANY alterations to the line items included in this quote and have chosen to sign the quote to indicate your acceptance, you must fax Esri the signed quote in its entirety in order for the quote to be accepted. You will be contacted by your Customer Service Representative if additional information is required to complete your request. If your organization is a US Federal, state, or local government agency; an educational facility; or a company that will not pay an invoice without having issued a formal purchase order, a signed quotation will not be accepted unless it is accompanied by your purchase order. In order to expedite processing, please reference the quotation number and any/all applicable Esri contract number(s) (e.g. MPA, ELA, SmartBuy, GSA, BPA) on your ordering document. BY SIGNING BELOW, YOU CONFIRM THAT YOU ARE AUTHORIZED TO OBLIGATE FUNDS FOR YOUR ORGANIZATION, AND YOU ARE AUTHORIZING ESRI TO ISSUE AN INVOICE FOR THE ITEMS INCLUDED IN THE ABOVE QUOTE IN THE AMOUNT OF $___________, PLUS SALES TAXES IF APPLICABLE. DO NOT USE THIS FORM IF YOUR ORGANIZATION WILL NOT HONOR AND PAY ESRI'S INVOICE WITHOUT ADDITIONAL AUTHORIZING PAPERWORK. Please check one of the following: ___ I agree to pay any applicable sales tax. ___ I am tax exempt, please contact me if exempt information is not currently on file with Esri. ___________________________________________ ________________________ Signature of Authorized Representative Date ___________________________________________ Name (Please Print) ___________________________________________ Title _________________________________________________________________________________________________________________________________ The quotation information is proprietary and may not be copied or released other than for the express purpose of system selection and purchase/license. This information may not be given to outside parties or used for any other purpose without consent from Environmental Systems Research Institute, Inc. (Esri). Any estimated sales and/or use tax reflected on this quote has been calculated as of the date of this quotation and is merely provided as a convenience for your organization's budgetary purposes. Esri reserves the right to adjust and collect sales and/or use tax at the actual date of invoicing. If your organization is tax exempt or pays state tax directly, then prior to invoicing, your organization must provide Esri with a copy of a current tax exemption certificate issued by your state's taxing authority for the given jurisdiction. Esri may charge a fee to cover expenses related to any customer requirement to use a proprietary vendor management, procurement, or invoice program. For questions contact: Jan Cunningham Email: jcunningham@esri.com Phone: (909) 369-4363 x4363 The items on this quotation are subject to and governed by the terms of this quotation, the most current product specific scope of use documentfound at https://assets.esri.com/content/dam/esrisites/media/legal/product-specific-terms-of-use/e300.pdf, and your applicable signed agreementwith Esri. If no such agreement covers any item quoted, then Esri’s standard terms and conditions found at https://go.esri.com/MAPS apply to yourpurchase of that item. If any item is quoted with a multi-year payment schedule, then unless otherwise stated in this quotation, Customer is requiredto make all payments without right of cancellation. Third-party data sets included in a quotation as separately licensed items will only be providedand invoiced if Esri is able to provide such data and will be subject to the applicable third-party's terms and conditions. If Esri is unable to provideany such data set, Customer will not be responsible for any further payments for the data set. US Federal government entities and US governmentprime contractors authorized under FAR 51.1 may purchase under the terms of Esri’s GSA Federal Supply Schedule. Supplemental terms andconditions found at https://www.esri.com/en-us/legal/terms/state-supplemental apply to some US state and local government purchases. All termsof this quotation will be incorporated into and become part of any additional agreement regarding Esri’s offerings. Acceptance of this quotation islimited to the terms of this quotation. Esri objects to and expressly rejects any different or additional terms contained in any purchase order, offer,or confirmation sent to or to be sent by buyer. Unless prohibited by law, the quotation information is confidential and may not be copied or releasedother than for the express purpose of system selection and purchase/license. The information may not be given to outside parties or used for anyother purpose without consent from Esri. Delivery is FOB Origin for customers located in the USA. CUNNINGHAMJ This offer is limited to the terms and conditions incorporated and attached herein. DocuSign Envelope ID: DCCCACE6-3F70-4024-8E8C-CEB96EA96DD4 7/31/2023 X Gail Jorgenson GIS Program Manager 14 Esri Use Only: Cust. Name Cust. # PO # Esri Agreement # Page 1 of 6 January 3, 2023 SMALL ENTERPRISE AGREEMENT COUNTY AND MUNICIPALITY GOVERNMENT (E214-2) This Agreement is by and between the organization identified in the Quotation ("Customer") and Environmental Systems Research Institute, Inc. ("Esri"). This Agreement sets forth the terms for Customer's use of Products and incorporates by reference (i) the Quotation and (ii) the Master Agreement. Should there be any conflict between the terms and conditions of the documents that comprise this Agreement, the order of precedence for the documents shall be as follows: (i) the Quotation, (ii) this Agreement, and (iii) the Master Agreement. This Agreement shall be governed by and construed in accordance with the laws of the state in which Customer is located without reference to conflict of laws principles, and the United States of America federal law shall govern in matters of intellectual property. The modifications and additional rights granted in this Agreement apply only to the Products listed in Table A. Table A List of Products Uncapped Quantities Desktop Software and Extensions (Single Use) ArcGIS Desktop Advanced ArcGIS Desktop Standard ArcGIS Desktop Basic ArcGIS Desktop Extensions: ArcGIS 3D Analyst, ArcGIS Spatial Analyst, ArcGIS Geostatistical Analyst, ArcGIS Publisher, ArcGIS Network Analyst, ArcGIS Schematics, ArcGIS Workflow Manager, ArcGIS Data Reviewer Enterprise Software and Extensions ArcGIS Enterprise (Advanced and Standard) ArcGIS Monitor ArcGIS Enterprise Extensions: ArcGIS 3D Analyst, ArcGIS Spatial Analyst, ArcGIS Geostatistical Analyst, ArcGIS Network Analyst, ArcGIS Schematics, ArcGIS Workflow Manager, ArcGIS Data Reviewer Enterprise Additional Capability Servers ArcGIS Image Server Developer Tools ArcGIS Runtime Standard ArcGIS Runtime Analysis Extension Limited Quantities One (1) Professional subscription to ArcGIS Developer Two (2) ArcGIS CityEngine Single Use Licenses 100 ArcGIS Online Viewers 100 ArcGIS Online Creators 17,500 ArcGIS Online Service Credits 100 ArcGIS Enterprise Creators 3 ArcGIS Insights in ArcGIS Enterprise 3 ArcGIS Insights in ArcGIS Online 10 ArcGIS Location Sharing for ArcGIS Enterprise 10 ArcGIS Location Sharing for ArcGIS Online 3 ArcGIS Parcel Fabric User Type Extensions (Enterprise) 3 ArcGIS Utility Network User Type Extensions (Enterprise) 3 ArcGIS Trace Network User Type Extensions (Enterprise) OTHER BENEFITS Number of Esri User Conference registrations provided annually 3 Number of Tier 1 Help Desk individuals authorized to call Esri 3 Maximum number of sets of backup media, if requested* 2 Five percent (5%) discount on all individual commercially available instructor-led training classes at Esri facilities purchased outside this Agreement *Additional sets of backup media may be purchased for a fee 15 Page 2 of 6 January 3, 2023 Customer may accept this Agreement by signing and returning the whole Agreement with (i) the Quotation attached, (ii) a purchase order, or (iii) another document that matches the Quotation and references this Agreement ("Ordering Document"). ADDITIONAL OR CONFLICTING TERMS IN CUSTOMER'S PURCHASE ORDER OR OTHER DOCUMENT WILL NOT APPLY, AND THE TERMS OF THIS AGREEMENT WILL GOVERN. This Agreement is effective as of the date of Esri's receipt of an Ordering Document, unless otherwise agreed to by the parties ("Effective Date"). Term of Agreement: Three (3) years This Agreement supersedes any previous agreements, proposals, presentations, understandings, and arrangements between the parties relating to the licensing of the Products. Except as provided in Article 4— Product Updates, no modifications can be made to this Agreement. Accepted and Agreed: (Customer) By: Authorized Signature Printed Name: Title: Date: CUSTOMER CONTACT INFORMATION Contact: Telephone: Address: Fax: City, State, Postal Code: E-mail: Country: Quotation Number (if applicable): 16 Page 3 of 6 January 3, 2023 1.0—ADDITIONAL DEFINITIONS In addition to the definitions provided in the Master Agreement, the following definitions apply to this Agreement: "Case" means a failure of the Software or Online Services to operate according to the Documentation where such failure substantially impacts operational or functional performance. "Deploy", "Deployed" and "Deployment" mean to redistribute and install the Products and related Authorization Codes within Customer's organization(s). "Fee" means the fee set forth in the Quotation. "Maintenance" means Tier 2 Support, Product updates, and Product patches provided to Customer during the Term of Agreement. "Master Agreement" means the applicable master agreement for Esri Products incorporated by this reference that is (i) found at https://www.esri.com/en- us/legal/terms/full-master-agreement and available in the installation process requiring acceptance by electronic acknowledgment or (ii) a signed Esri master agreement or license agreement that supersedes such electronically acknowledged master agreement. "Product(s)" means the products identified in Table A—List of Products and any updates to the list Esri provides in writing. "Quotation" means the offer letter and quotation provided separately to Customer. "Technical Support" means the technical assistance for attempting resolution of a reported Case through error correction, patches, hot fixes, workarounds, replacement deliveries, or any other type of Product corrections or modifications. "Tier 1 Help Desk" means Customer's point of contact(s) to provide all Tier 1 Support within Customer's organization(s). "Tier 1 Support" means the Technical Support provided by the Tier 1 Help Desk. "Tier 2 Support" means the Esri Technical Support provided to the Tier 1 Help Desk when a Case cannot be resolved through Tier 1 Support. 2.0—ADDITIONAL GRANT OF LICENSE 2.1 Grant of License. Subject to the terms and conditions of this Agreement, Esri grants to Customer a personal, nonexclusive, nontransferable license solely to use, copy, and Deploy quantities of the Products listed in Table A—List of Products for the Term of Agreement (i) for the applicable Fee and (ii) in accordance with the Master Agreement. 2.2 Consultant Access. Esri grants Customer the right to permit Customer's consultants or contractors to use the Products exclusively for Customer's benefit. Customer will be solely responsible for compliance by consultants and contractors with this Agreement and will ensure that the consultant or contractor discontinues use of Products upon completion of work for Customer. Access to or use of Products by consultants or contractors not exclusively for Customer's benefit is prohibited. Customer may not permit its consultants or contractors to install Software or Data on consultant, contractor, or third-party computers or remove Software or Data from Customer locations, except for the purpose of hosting the Software or Data on Contractor servers for the benefit of Customer. 3.0—TERM, TERMINATION, AND EXPIRATION 3.1 Term. This Agreement and all licenses hereunder will commence on the Effective Date and continue for the duration identified in the Term of Agreement, unless this Agreement is terminated earlier as provided herein. Customer is only authorized to use Products during the Term of Agreement. For an Agreement with a limited term, Esri does not grant Customer an indefinite or a perpetual license to Products. 3.2 No Use upon Agreement Expiration or Termination. All Product licenses, all Maintenance, and Esri User Conference registrations terminate upon expiration or termination of this Agreement. 3.3 Termination for a Material Breach. Either party may terminate this Agreement for a material breach by the other party. The breaching party will have thirty (30) days from the date of written notice to cure any material breach. 3.4 Termination for Lack of Funds. For an Agreement with government or government- 17 Page 4 of 6 January 3, 2023 owned entities, either party may terminate this Agreement before any subsequent year if Customer is unable to secure funding through the legislative or governing body's approval process. 3.5 Follow-on Term. If the parties enter into another agreement substantially similar to this Agreement for an additional term, the effective date of the follow-on agreement will be the day after the expiration date of this Agreement. 4.0—PRODUCT UPDATES 4.1 Future Updates. Esri reserves the right to update the list of Products in Table A—List of Products by providing written notice to Customer. Customer may continue to use all Products that have been Deployed, but support and upgrades for deleted items may not be available. As new Products are incorporated into the standard program, they will be offered to Customer via written notice for incorporation into the Products schedule at no additional charge. Customer's use of new or updated Products requires Customer to adhere to applicable additional or revised terms and conditions in the Master Agreement. 4.2 Product Life Cycle. During the Term of Agreement, some Products may be retired or may no longer be available to Deploy in the identified quantities. Maintenance will be subject to the individual Product Life Cycle Support Status and Product Life Cycle Support Policy, which can be found at https://support.esri.com/en/other- resources/product-life-cycle. Updates for Products in the mature and retired phases may not be available. Customer may continue to use Products already Deployed, but Customer will not be able to Deploy retired Products. 5.0—MAINTENANCE The Fee includes standard maintenance benefits during the Term of Agreement as specified in the most current applicable Esri Maintenance and Support Program document (found at https://www.esri.com/en- us/legal/terms/maintenance). At Esri's sole discretion, Esri may make patches, hot fixes, or updates available for download. No Software other than the defined Products will receive Maintenance. Customer may acquire maintenance for other Software outside this Agreement. a. Tier 1 Support 1. Customer will provide Tier 1 Support through the Tier 1 Help Desk to all Customer's authorized users. 2. The Tier 1 Help Desk will be fully trained in the Products. 3. At a minimum, Tier 1 Support will include those activities that assist the user in resolving how-to and operational questions as well as questions on installation and troubleshooting procedures. 4. The Tier 1 Help Desk will be the initial point of contact for all questions and reporting of a Case. The Tier 1 Help Desk will obtain a full description of each reported Case and the system configuration from the user. This may include obtaining any customizations, code samples, or data involved in the Case. 5. If the Tier 1 Help Desk cannot resolve the Case, an authorized Tier 1 Help Desk individual may contact Tier 2 Support. The Tier 1 Help Desk will provide support in such a way as to minimize repeat calls and make solutions to problems available to Customer’s organization. 6. Tier 1 Help Desk individuals are the only individuals authorized to contact Tier 2 Support. Customer may change the Tier 1 Help Desk individuals by written notice to Esri. b. Tier 2 Support 1. Tier 2 Support will log the calls received from Tier 1 Help Desk. 2. Tier 2 Support will review all information collected by and received from the Tier 1 Help Desk including preliminary documented troubleshooting provided by the Tier 1 Help Desk when Tier 2 Support is required. 3. Tier 2 Support may request that Tier 1 Help Desk individuals provide verification of information, additional information, or answers to additional questions to 18 Page 5 of 6 January 3, 2023 supplement any preliminary information gathering or troubleshooting performed by Tier 1 Help Desk. 4. Tier 2 Support will attempt to resolve the Case submitted by Tier 1 Help Desk. 5. When the Case is resolved, Tier 2 Support will communicate the information to Tier 1 Help Desk, and Tier 1 Help Desk will disseminate the resolution to the user(s). 6.0—ENDORSEMENT AND PUBLICITY This Agreement will not be construed or interpreted as an exclusive dealings agreement or Customer's endorsement of Products. Either party may publicize the existence of this Agreement. 7.0—ADMINISTRATIVE REQUIREMENTS 7.1 OEM Licenses. Under Esri's OEM or Solution OEM programs, OEM partners are authorized to embed or bundle portions of Esri products and services with their application or service. OEM partners' business model, licensing terms and conditions, and pricing are independent of this Agreement. Customer will not seek any discount from the OEM partner or Esri based on the availability of Products under this Agreement. Customer will not decouple Esri products or services from the OEM partners' application or service. 7.2 Annual Report of Deployments. At each anniversary date and ninety (90) calendar days prior to the expiration of this Agreement, Customer will provide Esri with a written report detailing all Deployments. Upon request, Customer will provide records sufficient to verify the accuracy of the annual report. 8.0—ORDERING, ADMINISTRATIVE PROCEDURES, DELIVERY, AND DEPLOYMENT 8.1 Orders, Delivery, and Deployment a. Upon the Effective Date, Esri will invoice Customer and provide Authorization Codes to activate the nondestructive copy protection program that enables Customer to download, operate, or allow access to the Products. If this is a multi-year Agreement, Esri may invoice the Fee up to thirty (30) calendar days before the annual anniversary date for each year. b. Undisputed invoices will be due and payable within thirty (30) calendar days from the date of invoice. Esri reserves the right to suspend Customer's access to and use of Products if Customer fails to pay any undisputed amount owed on or before its due date. Esri may charge Customer interest at a monthly rate equal to the lesser of one percent (1.0%) per month or the maximum rate permitted by applicable law on any overdue fees plus all expenses of collection for any overdue balance that remains unpaid ten (10) days after Esri has notified Customer of the past-due balance. c. Esri's federal ID number is 95-2775-732. d. If requested, Esri will ship backup media to the ship-to address identified on the Ordering Document, FOB Destination, with shipping charges prepaid. Customer acknowledges that should sales or use taxes become due as a result of any shipments of tangible media, Esri has a right to invoice and Customer will pay any such sales or use tax associated with the receipt of tangible media. 8.2 Order Requirements. Esri does not require Customer to issue a purchase order. Customer may submit a purchase order in accordance with its own process requirements, provided that if Customer issues a purchase order, Customer will submit its initial purchase order on the Effective Date. If this is a multi-year Agreement, Customer will submit subsequent purchase orders to Esri at least thirty (30) calendar days before the annual anniversary date for each year. a. All orders pertaining to this Agreement will be processed through Customer's centralized point of contact. b. The following information will be included in each Ordering Document: (1) Customer name; Esri customer number, if known; and bill-to and ship-to addresses (2) Order number (3) Applicable annual payment due 19 Page 6 of 6 January 3, 2023 9.0—MERGERS, ACQUISITIONS, OR DIVESTITURES If Customer is a commercial entity, Customer will notify Esri in writing in the event of (i) a consolidation, merger, or reorganization of Customer with or into another corporation or entity; (ii) Customer's acquisition of another entity; or (iii) a transfer or sale of all or part of Customer's organization (subsections i, ii, and iii, collectively referred to as "Ownership Change"). There will be no decrease in Fee as a result of any Ownership Change. 9.1 If an Ownership Change increases the cumulative program count beyond the maximum level for this Agreement, Esri reserves the right to increase the Fee or terminate this Agreement and the parties will negotiate a new agreement. 9.2 If an Ownership Change results in transfer or sale of a portion of Customer's organization, that portion of Customer's organization will transfer the Products to Customer or uninstall, remove, and destroy all copies of the Products. 9.3 This Agreement may not be assigned to a successor entity as a result of an Ownership Change unless approved by Esri in writing in advance. If the assignment to the new entity is not approved, Customer will require any successor entity to uninstall, remove, and destroy the Products. This Agreement will terminate upon such Ownership Change. 20 Memorandum REPORT TO:City Commission FROM:David Fine, Economic Development Manager Brit Fontenot, Economic Development Director Jeff Mihelich, City Manager SUBJECT:Authorize the City Manager to Sign a Subordination of Development Agreement and Agreement for Infrastructure Improvements for Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue MEETING DATE:October 24, 2023 AGENDA ITEM TYPE:Agreement - Legal RECOMMENDATION:I move to approve the Subordination of Development Agreement and Agreement for Infrastructure Improvements. STRATEGIC PLAN:4.4 Vibrant Downtown, Districts & Centers: Promote a healthy, vibrant Downtown, Midtown, and other commercial districts and neighborhood centers – including higher densities and intensification of use in these key areas. BACKGROUND:The Midtown and Downtown Urban Renewal Districts host numerous 100+ year old sewer mains that do not meet current city standards and cannot accommodate new infill development. Current city policies require developers to pay the cost of upgrading these sewer mains when they are inadequate to meet new capacity demand for the project. The 5th and Main Apartments Project is located at the corner of N. 5th Avenue and Main Street, at the former location of the Bamboo Garden restaurant. The Developer of the project must upgrade the sewer main under N. 5th Ave. and W. Mendenhall St. to Grand Ave. to serve the increased demand on the system generated by the project. The project will benefit property owners along the entire extent of the route with a sewer main meeting the current standard. The new sewer main will also facilitate redevelopment in the Midtown and Downtown Urban Renewal Districts (URDs). North 5th Avenue constitutes the boundary between the Midtown URD and the Downtown URD and that boundary extends east along Mendenhall St. to N. 3rd Ave. and into the Downtown URD. By parcel area, 58% of the property area served by the new sewer main would serve the Midtown URD and 42% of the area served is inside the Downtown URD. The proposed upgrade of this sewer main utilizes four sources of funds. The 21 Developer is paying for the costs of design and construction administration and any amount over the engineer’s estimate of $1.3 million. Developer: Design and Construction Administration Costs. City Sewer Fund $500,000 Midtown URD: $464,000 (58% property area) Downtown URD: $336,000 (42% property area) Developer: Costs over $1.3M The City will reimburse $500,000 from the sewer fund upon completion of the project. Payment of the funds from the Downtown and Midtown URDs will occur when the project receives a Certificate of Occupancy upon completion. This payment timing ensures that no URD funds are spent until the project creates new taxable value—the payback mechanism to the City. The project does three good things from a public policy perspective: It replaces aging public infrastructure, it creates redevelopment potential for any property served by the new sewer main, and it facilitates new housing units with significant new taxable value. Since the developer will need to borrow money to build the sewer main, an additional agreement allows their lender to be repaid directly in the event of a default. The project requires three agreements which the City Commission is considering on today’s consent agenda. 1. Agreement for Infrastructure Improvements a. Reimbursement of $500,000 from sewer maintenance funds 2. Resolution 5548 - Development Agreement a. Reimbursement at certificate of occupancy with urban renewal funds 3. Subordination of Development Agreement and Agreement for Infrastructure Improvements a. Allows direct repayment of the lender by the City UNRESOLVED ISSUES:None at this time. ALTERNATIVES:At the direction of the City Commission. FISCAL EFFECTS:None. Attachments: Subordination of Development Agreement and Agreement for Infrastructure Improvements.docx Report compiled on: October 10, 2023 22 SUBORDINATION OF DEVELOPMENT AGREEMENT AND AGREEMENT FOR INFRASTRUCTURE IMPROVEMENTS THIS SUBORDINATION OF DEVELOPMENT AGREEMENT AND AGREEMENT FOR INFRASTRUCTURE IMPROVEMENTS (this “Agreement”) is made and entered into as of the ___ day of October, 2023, by and among the CITY OF BOZEMAN, MONTANA (the “City”), FREESTONE ON MAIN LLC, a Delaware limited liability company (the “Developer”), and OLD NATIONAL BANK, a national banking association (the “Lender”). Recitals WHEREAS, the Cityand the Developer are parties to that certain Development Agreement dated as of October 24, 2023 (the “Development Agreement”), pertaining to, among other things, the construction of approximately 121 residential units and 1,700 square feet of leasable space for office or retail use, together with related improvements (the “Apartment Project”) and the removal and replacement of aged six-inch sanitary sewer main lines with new eight-inch sanitary sewer main in Mendenhall Street from 5th Avenue to Grand Avenue and appurtenant work (the “Infrastructure Project,” and together with the Apartment Project, collectively, the “Project”), all to be located on or adjacent to property legally described on Exhibit A attached hereto and hereby made a part hereof (the “Property”); and WHEREAS, the City and the Developer are parties to that certain Agreement for Infrastructure Improvements dated as of October 24, 2023 (the “Infrastructure Agreement”) pertaining to the requirement for construction of the Infrastructure Project; and WHEREAS, pursuant to the Development Agreement, the City has agreed to reimburse the Developer for up to $800,000 of the cost of the Infrastructure Project (the “Tax Increment Financing”) upon the terms and conditions set forth in the Development Agreement; and WHEREAS, pursuant to the Infrastructure Agreement, the City has agreed to reimburse the Developer for $500,000 of the cost of the Infrastructure Project (the “Infrastructure Reimbursement”) upon the terms and conditions of the Infrastructure Agreement; and WHEREAS, the Developer and the Lender have entered into that certain Construction Loan Agreement of even date herewith (the “Loan Agreement”), pursuant to which the Lender has agreed to make a construction loan to the Developer in the original principal amount of 23 Borrower: Freestone on Main LLC Loan No. ______________ Loan Date: October ____, 2023 Document Title: Subordination of Development Agreement and Agreement for Infrastructure Improvements 2 $32,000,000.00, evidenced by a Real Estate Note in the original principal amount of $32,000,000.00 (the “Note”) and payable to the order of the Lender; and WHEREAS, the Note is secured by that certain Deed of Trust with Absolute Assignment of Leases and Rents, Security Agreement and Fixture Filing of even date herewith (the “Deed of Trust”), executed by the Developer in favor of the Lender and encumbering the Property; and WHEREAS, the Deed of Trust has been filed of record in the Office of the Gallatin County Clerk and Recorder of Gallatin County, Montana concurrently herewith; and WHEREAS, the Lender has required, as an express condition to entering into the Loan Agreement, that certain rights ofthe Cityunder the Development Agreement and the Infrastructure Agreement be subordinated to the Deed of Trust. NOW, THEREFORE, in consideration of the recitals set forth above and incorporated herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Developer hereby agrees as follows: 1.Capitalized terms used herein but not otherwise defined herein shall have the meaning set forth in the Loan Agreement. 2.The Developer hereby represents and warrants that the Development Agreement and the Infrastructure Agreement are valid and enforceable agreements, that to the Developer’s knowledge neither the City nor the Developer is in default thereunder and that all covenants, conditions and agreements have been performed as required therein, except those not to be performed until after the date hereof. 3.The City hereby consents and agrees to the terms and conditions of this Agreement. 4.The City agrees to make commercially reasonable efforts to provide the Lender with copies of any notice of default given under the Development Agreement and the Infrastructure Agreement, provided that any failure to provide such notice will not in any way invalidate the notice of default or prejudice the rights of the City related to the default. The City further agrees that the Lender shall have the right, but not the obligation, to cure any default under the Development Agreement and/or the Infrastructure Agreement within the time period set forth in the Development Agreement and/or the Infrastructure Agreement, as applicable, if any. 5.The Developer and the City hereby agree that they will not make any material amendment or modification to the Development Agreement or the Infrastructure Agreement that materially affects the Project without the Lender’s written consent, which consent shall not be unreasonably withheld, conditioned or delayed. 6.The City acknowledges that the obligations of the Developer and the rights of the City under the Development Agreement and the Infrastructure Agreement shall, in all respects, be subject and subordinate to the rights of the Lender under the Deed of Trust. Notwithstanding the 24 Borrower: Freestone on Main LLC Loan No. ______________ Loan Date: October ____, 2023 Document Title: Subordination of Development Agreement and Agreement for Infrastructure Improvements 3 preceding sentence, if Lender commences foreclosure proceedings under the Deed of Trust, any payments under the Development Agreement and the Infrastructure Agreement that may be due to Developer will be suspended for any period of time that Developer or Lender does not perform Developer’s obligations under the Development Agreement or the Infrastructure Agreement. 7.This Agreement can be waived, modified, amended, terminated or discharged only explicitly in a writing signed by the Lender. A waiver by the Lender shall be effective only in the specific instance and for the specific purpose given. Mere delay or failure to act shall not preclude the exercise or enforcement of any of the Lender’s rights or remedies hereunder. All rights and remedies of the Lender shall be cumulative and shall be exercised singularly or concurrently, at the Lender’s option, and any exercise or enforcement of any one such right or remedy shall neither be a condition to nor bar the exercise or enforcement of any other. 8.Except as expressly provided by this Agreement, no provision of this Agreement shall be deemed or construed to alter, amend or modify, in any way, the rights of the City against the Developer as set forth and contained in the Development Agreement or the Infrastructure Agreement. 9.Any notice, request, demand or other communication hereunder shall be deemed duly given if delivered or postage prepaid, certified or registered, addressed to the party as set forth below: If to the City: City of Bozeman, Montana 121 N. Rouse Ave. Bozeman, Montana 59771 Attention: City Manager If to the Developer: Freestone on Main LLC [_____________] [______________] Attention: [__________] If to the Lender: Old National Bank 10710 Town Square Drive NE Blaine, Minnesota 55449 Attention: Kevan Hanson 25 Borrower: Freestone on Main LLC Loan No. ______________ Loan Date: October ____, 2023 Document Title: Subordination of Development Agreement and Agreement for Infrastructure Improvements 4 10.This Agreement shall be governed by and construed in accordance with the laws of the State of Montana. IN WITNESS WHEREOF, the Developer has caused this Agreement to be duly executed as of October 24, 2023. 13930.374 26997540v2 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 26 [SIGNATURE PAGE TO SUBORDINATION OF DEVELOPMENT AGREEMENT AND AGREEMENT FOR INFRASTRUCTURE IMPROVEMENTS] CITY: CITY OF BOZEMAN, MONTANA By: Jeff Mihelich Its:: City Manager STATE OF ____________) ) ss COUNTY OF ____________) The foregoing instrument was acknowledged before me this ____ day of ____________, 2023, by Jeff Mihelich, the City Manager of the City of Bozeman, Montana. Notary Public 27 [SIGNATURE PAGE TO SUBORDINATION OF DEVELOPMENT AGREEMENT AND AGREEMENT FOR INFRASTRUCTURE IMPROVEMENTS] DEVELOPER: FREESTONE ON MAIN LLC, a Delaware limited liability company By: Name: Its: STATE OF MINNESOTA ) ) COUNTY OF ____________) The foregoing instrument was acknowledged before me this ____ day of ______, 2023, by ___________, the ___________ of Freestone on Main LLC, a Delaware limited liability company, for and on behalf of the limited liability company. Notary Public 28 [SIGNATURE PAGE TO SUBORDINATION OF DEVELOPMENT AGREEMENT AND AGREEMENT FOR INFRASTRUCTURE IMPROVEMENTS] LENDER: OLD NATIONAL BANK, a national banking association By: Kevan Hanson Its: Senior Vice President STATE OF MINNESOTA ) ) ss COUNTY OF __________) The foregoing instrument was acknowledged before me this ____ day of ____________, 2023, by Kevan Hanson, a Senior Vice President of Old National Bank, a national banking association, for and on behalf of the national banking association. Notary Public THIS INSTRUMENT WAS DRAFTED BY: Winthrop & Weinstine, P.A. (TJK) 225 South Sixth Street, Suite 3500 Minneapolis, Minnesota 55402-4629 29 Borrower: Freestone on Main LLC Loan No. ______________ Loan Date: October __, 2023 Document Title: Subordination of Development Agreement and Agreement for Infrastructure Improvements EXHIBIT A (Legal Description) [To be inserted from final proforma policy] 30 Memorandum REPORT TO:City Commission FROM:David Fine, Economic Development Manager Shawn Kohtz, City Engineer Jeff Mihelich, City Manager SUBJECT:Authorize the City Manager to sign Agreement for Infrastructure Improvements Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue MEETING DATE:October 24, 2023 AGENDA ITEM TYPE:Agreement - Legal RECOMMENDATION:I move to authorize the City Manager to sign Agreement for Infrastructure Improvements Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue. STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a mechanism to encourage economic development. BACKGROUND:The Midtown and Downtown Urban Renewal Districts host numerous 100+ year old sewer mains that do not meet current city standards and cannot accommodate new infill development. Current city policies require developers to pay the cost of upgrading these sewer mains when they are inadequate to meet new capacity demand for the project. The 5th and Main Apartments Project is located at the corner of N. 5th Avenue and Main Street, at the former location of the Bamboo Garden restaurant. The Developer of the project must upgrade the sewer main under N. 5th Ave. and W. Mendenhall St. to Grand Ave. to serve the increased demand on the system generated by the project. The project will benefit property owners along the entire extent of the route with a sewer main meeting the current standard. The new sewer main will also facilitate redevelopment in the Midtown and Downtown Urban Renewal Districts (URDs). North 5th Avenue constitutes the boundary between the Midtown URD and the Downtown URD and that boundary extends east along Mendenhall St. to N. 3rd Ave. and into the Downtown URD. By parcel area, 58% of the property area served by the new sewer main would serve the Midtown URD and 42% of the area served is inside the Downtown URD. The proposed upgrade of this sewer main utilizes four sources of funds. The Developer is paying for the costs of design and construction administration 31 and any amount over the engineer’s estimate of $1.3 million. Developer: Design and Construction Administration Costs. City Sewer Fund $500,000 Midtown URD: $464,000 (58% property area) Downtown URD: $336,000 (42% property area) Developer: Costs over $1.3M The City will reimburse $500,000 from the sewer fund upon completion of the project. Payment of the funds from the Downtown and Midtown URDs will occur when the project receives a Certificate of Occupancy upon completion. This payment timing ensures that no URD funds are spent until the project creates new taxable value—the payback mechanism to the City. The project does three good things from a public policy perspective: It replaces aging public infrastructure, it creates redevelopment potential for any property served by the new sewer main, and it facilitates new housing units with significant new taxable value. Since the developer will need to borrow money to build the sewer main, an additional agreement allows their lender to be repaid directly in the event of a default. The project requires three agreements which the City Commission is considering on today’s consent agenda. 1. Agreement for Infrastructure Improvements a. Reimbursement of $500,000 from sewer maintenance funds 2. Resolution 5548 - Development Agreement a. Reimbursement at certificate of occupancy with urban renewal funds 3. Subordination of Development Agreement and Agreement for Infrastructure Improvements a. Allows direct repayment of the lender by the City UNRESOLVED ISSUES:None at this time. ALTERNATIVES:At the direction of the City Commission. FISCAL EFFECTS:The Fiscal Year 2024 budget for sewer maintenance includes $500,000 for upgrading outdated sewer lines. This funding will be applied to this project. Attachments: FINAL Payment Agreement- Freestone.docx Exhibit 1 Sewer Improvements.pdf Resolution 4250 Adopting a Policy Prohibiting Discrimination in Contracts and Agreements.pdf 5th & Main Sewer Replacement_Engineers Estimate Rev1.pdf Report compiled on: October 10, 2023 32 DRAFT Agreement for Infrastructure Improvements for Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue Page 1 of 17 Agreement for Infrastructure Improvements Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue THIS AGREEMENT is made and entered into this day of October, 2023, between FREESTONE ON MAIN, LLC,4450 Excelsior Boulevard, Suite 400, St. Louis Park, MN 55416, hereinafter collectively referred to as “Developer”, and the CITY OF BOZEMAN,a self- governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, City Hall, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City.” RECITALS WHEREAS, the Developer desires, at its expense, to complete certain public sanitary sewersystem improvements to benefit its development referred to as 5th and Main Residences and to satisfy certain conditions precedent to occupancy approval of 5th and Main Residences Site Plan Application Number 22321 (the “Development”) and to address possible requirements for an adjacent development referred to as the Main Street Hotel, a development project to be constructed by Bozeman Exchange Associates, LLC (Site Plan Application Number 22176); and WHEREAS, the City desires to authorize and allow the Developer to construct sanitary sewer system improvements concurrently with Developer’s required improvements, said additional improvements a portion of which is to be paid for by the City’s Wastewater Fund as approved for fiscal year 2024 that the City will make available to Developer to assist Developer in paying a portion of the total costs of the improvements; and WHEREAS, the improvements include the installation of eight-inch sanitary sewer main in Mendenhall Street, removal and replacement of aged six-inch sanitary sewer main with new eight-inch sanitary sewer main in Mendenhall Street from 5th Avenue to Grand Avenue and appurtenant work; and WHEREAS, the City has included $500,000 in fiscal year 2024 in the City’s Wastewater Fund for replacement of old 6-inch sanitary sewer mains, and the proposed development project is in need of an upgrade of the existing, aged 6-inch sanitary sewer main to accommodate flows from the project; and WHEREAS, the City and the Developer desire to set forth the terms of their Agreement in writing; and NOW THEREFORE,in consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 33 DRAFT Agreement for Infrastructure Improvements for Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue Page 2 of 17 1.PURPOSE OF AGREEMENT. The purpose of this Agreement is to establish the rights and duties of the City and the Developer regarding improvements to public infrastructure described below (the “Project”) and the rights and duties of the City and Developer regarding the City’s payment of a portion of the Project related to the Mendenhall Street sanitary sewer. For the portion of the Project related to the Mendenhall Street sanitary sewer, this Agreement requires the Developer to pay the costs of construction at the time the Project is constructed, and the City to reimburse the Developer up to the amounts described in this Agreement. a. The Project/Timeframe for Completion: The improvements to be made include removal of six-inch sanitary sewer main and replaced with eight-inch sanitary sewer main in Mendenhall Street from 5th Avenue to Grand Avenue and appurtenant improvements, (the “Project”) as shown on the 5th Avenue and Mendenhall Street Improvement Plan attached hereto as Exhibit 1. Prior to construction and any payment by the City, Developer must submit to the City Engineering Division a final set of Plans and Specifications for the Project and receive approval of the Plans and Specifications from the City Engineering Division. No occupancy of any structure to be built on those portions of the Development will be authorized until the City Engineering Division, in its sole discretion, performs a final inspection, receives final certification by the Developer’s engineer, and approves and accepts the final Project per the process defined in the City of Bozeman Design Standards and Specifications Policy. The Project must be completed prior to November 30, 2024, subject to force majeure. 2.COMPLIANCE WITH PUBLIC PROCUREMENT STATUTES / STANDARDS / DISCRIMINATION. The Developer must comply with all Montana statutory requirements for the procurement of construction services for the Project including, but not limited to, requirements of Title 7, chapter 5, part 43, MCA and Title 18, MCA including but not limited, city standards for design and construction, competitive bidding, and contract requirements for payment and performance bonds, prevailing wages and non-discrimination provision as required by Bozeman City Commission Resolution 4250, attached as Exhibit 2. 3.COST OF IMPROVEMENTS FOR MENDENHALL STREET SANITARY SEWER. a. The Developer’s estimate of the cost of the Project related only to the Mendenhall Street sanitary sewer is $1,356,934.56 (“Estimated Project Costs”). An itemization of Estimated Project Costs provided by the Developer is attached as Exhibit 3. Payment by the City will not be based on Estimated Project Costs; rather, payment by the City, in amounts as further described herein, will be based on the actual costs 34 DRAFT Agreement for Infrastructure Improvements for Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue Page 3 of 17 of construction of the Project as determined by invoices for material and labor and other evidence (“Actual Project Costs”). b. For purposes of this Agreement, to establish an understanding between the parties of each party’s Estimated Project Costs prior to construction and prior to a determination of Actual Project Costs, the City and the Developer agree to allocate the Estimated Project Costs as follows: Responsible Party Source Estimated Project Cost Allocation City of Bozeman Wastewater Fund $500,000 City of Bozeman Tax Increment $800,000 Developer Developer’s Funds $56,934.56 Total:$1,356,934.56 4.PAYMENT OF COSTS RELATED TO MENDENHALL STREET SANITARY SEWER. The Actual Project Costs may be less than or more than Estimated Project Costs. As such, the Developer and the City agree: a. The Actual Project Costs will be allocated as follows: per Exhibit 3 as summarized in Section 3.b adjusted at the end of the project to reflect Actual Project Costs. No more than $500,000 of Actual Project Costs are allocated to and must be paid by the City. The remainder of Actual Project Costs shall be allocated to and must be paid by the Developer. b. If the Actual Project Costs, as finally determined by the City based on invoices and other evidence and accepted by the City, are less than the Estimated Project Costs, the City will not pay more than Actual Project Costs. 5.CITY APPROVAL OF DESIGN AND CONSTRUCTION DOCUMENTS / COSTS. Prior to commencing construction of any portion of the Project and prior to the City making any payments to the Developer for the City’s share of the improvements, the City must approve the design and construction documents for 35 DRAFT Agreement for Infrastructure Improvements for Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue Page 4 of 17 the Project. In addition, the Developer must provide the City complete record drawings showing all installed infrastructure for the Project. The City will reimburse Developer for the City’s Wastewater Fund portion of the Actual Project Costsonly after construction of the Mendenhall Street sanitary sewer has been completed, and the improvements to Mendenhall Street sanitary sewer have been accepted by the City, and Actual Project Costs (including evidence of those costs) have been provided to the City. As such: a. The City may inspect the Project at reasonable times and the Developer must not interfere with such inspections. b. The City will only accept the construction of the improvements upon receipt by the City of (a) certification by the Developer’s licensed professional engineer that the Project is complete in accordance with the Approved Plans, and (b) evidence of the Actual Project Costs have been delivered to and accepted by the City. c. The City will pay the Developer, by single check, the City’s Wastewater Fund portion of the Actual Project Costs no later than thirty (30) days following the City’s determination the requirements of this Agreement are satisfied. 6.DEDICATION OF IMPROVEMENTS/WARRANTY.Upon acceptance by the City of improvements completed under this Agreement, the Developer must require its contractor to provide the City a warranty on all improvements as required by 38.270.100, BMC, and section C.9 of the City of Bozeman Plans and Specifications Review Policy. 7.SUBCONTRACTORS. By appropriate written agreement, the Developer must require each Subcontractor, to the extent of the work to be performed by a subcontractor, to be bound by terms of this Agreement. 8.PERFORMANCE AND PAYMENT BONDS. The Developer must require its contractor to provide performance, maintenance, and payment bonds to it for completion of the Improvements meeting all statutory requirements of the State of Montana, in form and substance and, without limitation, complying with the following specific requirements: a. Require the contractor to faithfully perform all of the provisions of the contract between the Developer and the contractor. b. Require the contractor to pay all laborers, mechanics, subcontractors, and material suppliers. 36 DRAFT Agreement for Infrastructure Improvements for Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue Page 5 of 17 c. Require the contractor to pay all persons who supply the contractor with provisions, provender, material, or supplies for performing the work. d. Except as otherwise required by Montana law, the form and substance of such bond(s) must be satisfactory to the Developer and the City. e. Bond(s) shall be executed by a responsible surety licensed in Montana and listed in the latest U.S. Dept. of Treasury Circular #570, with a Best’s rating of no less than A/XII. Said bonds shall remain in effect through the warranty period for all Improvements, and until all of the contractor’s obligations to the Developer are fulfilled. f. The Performance Bond and the Labor and Material Payment Bond shall be in an amount equal to or exceeding one hundred percent (100%) of the contract amount entered into between the Developer and its contractor. g. The Developer shall require the attorney-in-fact who executes the required bond(s) on behalf of the surety to affix thereto a certified and current copy of his or her power of attorney indicating the monetary limit of such power. h. Every Bond under this section must display the Surety’s Bond Number. A rider including the following provision shall be attached to each Bond: Surety agrees that it is obligated under the bond(s) to any successor, grantee or assignee of the Developer and the City. i. The City and the Developer must be named as obligees on the bonds. j. The Developer must require its contractor to deliver the required bonds to it and the City prior to the commencement of any work on the Improvements. k.Prior to acceptance of the Project improvements, the Developer’s contractor must post a Maintenance Bond with the City equal to 20% of the actual cost of the improvements for the City to correct any deficiencies in workmanship and/or materials which are found within the two-year warranty period. The City Bozeman shall be named as an obligee on the bond. 9.INDEMNIFICATION/INSURANCE. a. The Developer agrees to require in any contract it enters into in fulfillment of its obligations under this Agreement that it will, to the fullest extent permitted by law, 37 DRAFT Agreement for Infrastructure Improvements for Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue Page 6 of 17 require its contractors to agree in such contracts that the contractor does release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of and expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the contractor; (ii) any negligent, reckless, or intentional misconduct of any of the contractor’s agents including its subcontractors. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the indemnitee(s) which would otherwise exist as to such indemnitee(s). The indemnity under this Section the Developer must require of its contractor shall be without regard to and without any right to contribution from any insurance maintained by City. Should any indemnitee described herein be required to bring an action against the Developer’s contractors or engineers to assert its right to defense or indemnification under this Agreement or under the Developer’s contractor’s or engineer’s applicable insurance policies required below the indemnitee shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Developer’s contractor(s) or engineer(s) was obligated to defend the claim(s) or was obligated to indemnify the indemnitee for a claim(s) or any portion(s) thereof. In the event of an action filed against City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. The Developer must also require its contractors and subcontractors and engineers to waive any and all claims and recourse against the City or its officers, agents or employees, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the Improvements except “responsibility for his own fraud, for willful injury to the 38 DRAFT Agreement for Infrastructure Improvements for Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue Page 7 of 17 person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. Notwithstanding any terms, provisions or conditions contained in this Section or in this Agreement specifying, or that may be interpreted, to the contrary, the Developer has no obligation or duty to indemnify the City in relation to this Agreement, and, thus, is providing no indemnity to the City. Furthermore, the City expressly acknowledges the Developer will not indemnify the City and the Developer has no obligation or duty to indemnify the City in relation to this Agreement. The obligations contained in this subsection 14(a) shall survive termination of this Agreement. b. In addition to and independent from the above, the Developer shall require its contractor(s) and engineer(s) at the contractor(s)’s and engineer(s)’s expense, to secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Developer’s contractor(s) or engineer(s) in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the contractor(s) or engineer(s) retained by the Developer to perform its obligations under this Agreement and as such liabilities and obligations are included in subsection (a) of this Section. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City and the Developer must cause to be furnished to the City an accompanying certificate of insurance and accompanying endorsements demonstrating such insurance is in place in amounts not less than as follows: Workers’ Compensation – statutory; Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; Commercial General Liability - $2,000,000 per occurrence; $4,000,000 annual aggregate; Products Completed Operations - $5,000,000; Automobile Liability - $1,000,000 property damage/bodily injury per accident; and Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate. 39 DRAFT Agreement for Infrastructure Improvements for Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue Page 8 of 17 In addition to the above, The Developer must cause its contractor to purchase and maintain insurance in the amount of the full replacement cost of the Improvements. This insurance must: Include the interests of the City, the Developer, and the Developer’s contractor, engineers, and subcontractors each of whom is deemed to have an insurable interest and must be listed as an insured or additional insured; Be written on a Builder’s Risk “all risk” or open peril or special causes of loss policy form that shall at least include insurance for physical loss and damage to Improvements, temporary buildings, false work and materials and equipment in transit and must insure against at least the following perils or cause of loss: fire, lighting, extended coverage, theft, vandalism, and malicious mischief, earthquake, collapse, debris removal, demolition occasional by enforcement of applicable laws and regulations, and water damage (other than caused by floods); Include expenses incurred in the repair or replacement of any insured property (including but not limited to the fees and charges or engineers); Cover materials and equipment in transit for incorporation in the Improvements stored at the site or at another location prior to being incorporated into Improvements, provided that such materials and equipment have been included in an application for payment by the Developer’s contractor and recommended for payment by the Developer’s engineers; Be endorsed to allow occupancy and partial utilization of the Improvements by the Developer and the City; Include testing and start-up; and Be maintained in effect until final payment is made by the City to the Developer unless otherwise agreed to in writing by the City with forty- five (45) days written notice to each additional insured. c. The above amounts shall be exclusive of defense costs. The City of Bozeman, its officers, agents, and employees, shall be endorsed as an additional or named insured on a primary non-contributory basis on the applicable policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a forty-five (45) day notice of cancellation or non-renewal. The City must approve all insurance coverage and endorsements prior to the Developer commencing work. In addition to the notice of cancellation to the City that must be included in the insurance policies, the Developer and its contractor(s) and engineer(s) must notify City within two (2) business days of any of their receipt of 40 DRAFT Agreement for Infrastructure Improvements for Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue Page 9 of 17 information that any required insurance coverage will be terminated or of contractor(s) or engineer(s) decision to terminate any required insurance coverage for any reason. d. The City must receive copies of all insurance coverages and endorsements prior to the Developer commencing construction of the Improvements. 10.INDEPENDENT CONTRACTOR STATUS/LABOR RELATIONS. The parties agree the Developer and its contractors and subcontractors, including its engineers, and their employees and agents are independent contractors for purposes of this Agreement and are not to be considered employees of the City for any purpose. As such, neither the Developer nor any of its contractors and subcontractors are to be considered subject to the terms and provisions of the City’s personnel policies and may not be considered a City employee for workers’ compensation or any other purpose. The Developer and its contractors and subcontractors are not authorized to represent the City or otherwise bind the City in any dealings between them and any other party. The Developer must require its contractor to comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, MCA, and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA, and must ensure its contractor maintains workers’ compensation coverage for all members and employees of contractor’s business, except for those members who are exempted by law. The Developer must require its contractor furnish it with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. The Developer must provide such evidence to the City upon the City’s request. The Developer must require its contractor to give preference to the employment of bona fide Montana residents which means an individual who, at the time of employment and immediately prior to the time of employment, has lived in Montana in a manner and for a time that is sufficient to clearly justify the conclusion that the individual's past habitation in this state has been coupled with an intention to make this state the individual's home. The Developer must instruct its contractor that individuals who come to Montana solely in pursuit of a contract or an agreement to perform labor may not be considered to be bona fide Montana residents. 41 DRAFT Agreement for Infrastructure Improvements for Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue Page 10 of 17 The Developer must require its contractor to pay wages, fringe benefits, and expenses including travel allowances as set forth in the Montana Prevailing Wage Rate for either Highway Construction (2023) or Heavy Construction (2023), as may be applicable to the work performed, and as such wages are applicable to Gallatin County, Montana. The parties agree the adopted wage schedules are incorporated herein. In addition, the Developer must require its contractor to pay all hourly wage employees on a weekly basis and to maintain payroll records during construction and for a period of three (3) years following acceptance of all improvements by the City. Finally, the Developer must require that its contractor ensure that any person, firm or entity constructing any portion of the City Project under this Agreement for which the Developer’s contractor or any of its subcontractors is responsible, is paid the applicable standard prevailing rate of wages. In the event that, during construction of the improvements for the Project, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, the Developer must require its contractor to agree to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes and that the steps contractor shall take are to be left to the discretion of contractor; provided, however, that the Developer must require the contractor to bear all costs of any related legal action. The Developer must require its contractor to indemnify, defend, and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes and for any claims regarding underpaid wages. 11.PERMITS. The Developer must require its contractor to provide all notices, comply with all applicable laws, ordinances, rules, and regulations , obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 12.LAWS AND REGULATIONS. The Developer must require its contractor to comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, 42 DRAFT Agreement for Infrastructure Improvements for Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue Page 11 of 17 codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 13.INTOXICANTS; DOT DRUG AND ALCOHOL REGULATIONS/SAFETY AND TRAINING. The Developer must require its contractor to not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in construction of the Improvements. In addition, The Developer must require its contractor to acknowledge it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. The Developer agrees the City shall have the right to request proof of such compliance and that The Developer must have the authority to require its contractor to furnish such proof. The Developer must require its contractor to be responsible for instructing and training the contractor’s employees and agents in proper and specified work methods and procedures, to provide continuous inspection and supervision of the work performed, and for instructing its employees and agents in safe work practices. 14.TAXES. The Developer must and agrees to require its contractor to pay all taxes of any kind or nature and make all appropriate employee withholdings. 15.REPRESENTATIVES. a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be the Shawn Kohtz, Bozeman City Engineer or such other individual as City shall designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission shall be directed to the City’s Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, the Developer may direct its communication or submission to other designated City personnel or agents as authorized by the City’s Director of Utilities andmay receive approvals or authorization from such persons. b. Developer’s Representative: The Developer’s Representative for the purpose of this Agreement shall be Nick Waltonor such other individual as the Developer shall 43 DRAFT Agreement for Infrastructure Improvements for Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue Page 12 of 17 designate in writing. Whenever direction to or communication with the Developer is required by this Agreement, such direction or communication shall be directed to the Developer’s Representative; provided, however, that in exigent circumstances when the Developer’s Representative is not available, City may direct its direction or communication to other designated Developer personnel or agents. 16.REPORTS/ACCOUNTABILITY/PUBLIC INFORMATION. The Developer agrees to develop and/or provide documentation as requested by the City demonstrating its compliance with the requirements of this Agreement. The Developer agrees and must require its contractor to allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the reimbursement of monies distributed pursuant to this Agreement was used in compliance with this Agreement. The Developer or its contractors may not issue any statements, releases or information for public dissemination without prior approval of the City. 17.SEPARATE LEGAL ENTITY/ADMINISTRATION. There shall be no separate legal entity created as a consequence of this Agreement. Administration of this Agreement shall be the responsibility of the developer. 18.DEFAULT/DISPUTE RESOLUTION. a. Failure of or unreasonable delay by either party to perform any term or provision of this agreement shall constitute a default hereunder. In the event of alleged default or breach of any term or condition of this agreement, the party alleging such default or breach shall give the other party not less than thirty (30) days’ written notice specifying the nature of the alleged default and the manner in which it may be satisfactorily cured. The party charged shall not be considered in default for purposes of termination or instigation of legal proceedings during any such 30-day period. b. Any claim, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. If the parties are unable to resolve the dispute within thirty (30) days from the end of the 30-day cure period, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 44 DRAFT Agreement for Infrastructure Improvements for Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue Page 13 of 17 19.NON-WAIVER. Waiver by either party of strict performance or any provision of this Agreement shall not be a waiver of or prejudice the party's rights to require strict performance of the same provision in the future or of any other provisions. 20.SURVIVAL. Sections 12(a) and 13 including, but not limited to, the Developer’s obligation to require its contractor to indemnify the City as required above and the indemnification provided shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 21.TIME OF ESSENCE. It is mutually agreed that time is of the essence in the performance of all covenants and conditions to be kept and performed under the terms of this Agreement. 22.HEADINGS. The section headings contained herein are for convenience and reference and are not intended to define or limit the scope of any provision of this Agreement. 23.NOTICES. All notices required under this Agreement shall be deemed properly served if delivered in writing, delivered in person, or sent by certified or registered mail to the last address previously furnished by the parties hereto. Until hereafter changed by the parties by notice in writing, notices shall be sent to the Reuter Walton Development, c/o Nick Walton, 4450 Excelsior Boulevard, Suite 400, St. Louis Park, Minnesota 55416, and to the City Engineer, City of Bozeman, PO Box 1230, Bozeman, Montana 59771-1230. The date of mailing shall be deemed the date of such notice and service thereof. 24.ENTIRE AGREEMENT. This Agreement constitutes the entire agreement between the parties. No alterations, modifications, or additions to this Agreement shall be binding unless reduced to writing and signed by the parties to be charged herewith. No covenant, term or addition to this Agreement shall be deemed waived by either party unless such waiver shall be reduced to writing and signed by the parties. 25.MODIFICATION AND ASSIGNABILITY. This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Developer may not assign its rights, including the right to compensation or delegate its duties arising hereunder, without the prior written consent of City. 26.SEVERABILITY. The provisions of this Agreement shall be deemed independent and severable, and the invalidity, partial invalidity, or unenforceability of any one 45 DRAFT Agreement for Infrastructure Improvements for Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue Page 14 of 17 provision or portion thereof shall not affect the validity or enforceability of any other provision herein. 27.BINDING EFFECT. This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 28.NO THIRD-PARTY BENEFICIARY. Except as provided herein, this Agreement is for the exclusive benefit of the Parties, does not constitute a third- party beneficiary agreement, and may not be relied upon or enforced by a third party. 29.COUNTERPARTS. This Agreement may be executed in counterparts, which together constitute one instrument. 30.EFFECTIVE DATE. This Agreement shall be effective after approval by the respective governing bodies. It is the intent that said Agreement shall be effective on the date stated in the first paragraph of this Agreement. 31.NONDISCRIMINATION AND EQUAL PAY: The Developer agrees that all hiring by Developer of persons performing this Agreement shall be on the basis of merit and qualifications. The Developer will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti- discrimination laws, regulations, and contracts. The Developer 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 Developer 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. Developer represents it is, and for the term of this Agreement will be, in compliance with the requirements of the Equal Pay Act of 1963 and Section 39-3- 104, MCA (the Montana Equal Pay Act). Contractor must report to the City any violations of the Montana Equal Pay Act that Developer has been found guilty of within 60 days of such finding for violations occurring during the term of this Agreement. Developer shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 46 DRAFT Agreement for Infrastructure Improvements for Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue Page 15 of 17 32.CONSENT TO ELECTRONIC SIGNATURES: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. #### END OF AGREEMENT EXCEPT FOR SIGNATURES #### 47 DRAFT Agreement for Infrastructure Improvements for Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue Page 16 of 17 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written. FREESTONE ON MAIN, LLC a Delaware limited liability company By Freestone JV, LLC, its sole member By 421 Main Group, LLC, its Member By 421 Main Partners, LLC, its Manager By:_______________________ Nicholas Walton, Manager STATE OF MINNESOTA ) ) ss. COUNTY OFHENNEPIN ) The foregoing Agreement was acknowledged before me on October __, 2023, by Nicholas Walton, the Manager of 421 Main Partners, LLC, a Minnesota limited liability company, the Manager of 421 Main Group, LLC, a Delaware limited liability company, a member of Freestone JV, LLC, a Delaware limited liability company, the sole member of Freestone on Main, LLC, a Delaware limited liability company, on behalf of the limited liability company. __________________________________ Notary Public [Signature Page to Agreement for Infrastructure Improvements – Freestone on Main, LLC] Signatures Continue on Next Page 48 DRAFT Agreement for Infrastructure Improvements for Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue Page 17 of 17 City of Bozeman By:_______________________ Name: Jeff Mihelich Its:City Manager STATE OF MONTANA ) ) ss. COUNTY OF ____________) The foregoing Agreement was acknowledged before me on ______________, 2023, by Jeff Mihelich, the City Manager of the City of Bozeman, Montana. __________________________________ Notary Public ATTEST: ____________________________________ Mike Maas, City Clerk APPROVED AS TO FORM: ___________________________________ Greg Sullivan, City Attorney [Signature Page to Agreement for Infrastructure Improvements – City of Bozeman] 49 Agreement for Infrastructure Improvements for Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue Exhibit 1 EXHIBIT 1 IMPROVEMENT PLAN 50 Agreement for Infrastructure Improvements for Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue Exhibit 2 EXHIBIT 2 CITY OF BOZEMAN RESOLUTION #4250 51 Agreement for Infrastructure Improvements for Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue Exhibit 3 EXHIBIT 3 ESTIMATED PROJECT COSTS 52 53 54 55 56 57 58 59 60 COMMISSION RESOLUTION NO. 4250 ARESOLUTION OFTHECITYCOMMISSION OFTHECITYOFBOZEMAN, MONTANA, ADOPTING APOLICY PROHIBITING DISCRIMINATION IN THE ENTERING INTOANDIMPLEMENTATION OFCONTRACTS ANDAGREEMENTS OFALLKINDS INCLUDING BIDDING AND CERTAIN PURCHASES. WHEREAS, TheCityofBozeman isaself-governing municipal corporation organized under thelawsoftheStateofMontana andgoverned byaCharter, whichwaseffectiveJanuary 1, 2008; and WHEREAS, InNovember, 2009, theCityofBozemanpassedandadoptedCommission Resolution Number 4217 declaring "All are welcome here," and committing to: 1) support the diversity ofthe community; 2) promote inclusiveness inourpublic endeavors andprivate actions; and3) worktoendsilenceandstopthespreadofhate, andinsodoingbuildjustand caring communities, congregations, workplaces, schools and homes; and WHEREAS, on February 8, 2010, the Commission adopted Resolution 4243 establishing policies fordiscrimination inemployment and benefits onthebasisofsexual orientation and/orgenderidentity, amongotherprotectedcategories; and WHEREAS, onFebruary 8, 2010theCommission discussed options forapplying similar policies tothose contained inResolution 4243 toavariety ofagreements andpurchases thecity undertakesanddirectedthecitystafftoprepareafinalproposalforensuringthecityandits contracting partners donotdiscriminate onthebasis ofavariety ofcategories related to individuals; and WHEREAS, theCommissionfindsthatcreationofthesepolicieswillservethepublic interestbyensuringtheCityofBozemandoesnotdiscriminateonthebasisofrace, color, religion, creed, sex, age, marital status, national origin, oractualorperceived sexual orientation, gender identity ordisability; and WHEREAS, the Commission recognizes circumstances mayarise inthe implementation ofthispolicythatwillwarrantspecial exceptions; assuch, theCommission reserves foritself the determinationofwhenanexceptiontothepolicydescribedbelowmaybemade; and Resolution 4250: PoiicyProhibitingDiscrimination inContractingandOtherAgreements Page. 1of3 61 WHEREAS, theCommission requests theCityManager implement thispolicy through administrative policiesorthroughaformaladministrative ordersothatthispolicywillbe distributedtoallCitypersonnelandimplementedexpeditiouslyuponadoption. NOW, THEREFORE, BEITRESOLVED bytheCityCommissionoftheCityof Bozeman, Montana, that thefollowing policyrelatedtodiscrimination inCitycontracts and otheragreementsisherebyadopted: Section1: PolicyforDiscriminationinCityAgreements Allwritten agreements including but not limited tocollective bargaining agreements, contracts, andleases, enteredintobytheCity, includingagreementsforprofessional servicesandsolesourceservices, shallincludeaprovisionprohibitingdiscriminationin thefulfillmentoftheagreementonthebasisofrace, color, religion, creed, sex, age, marital status, nationalorigin, oractualorperceived sexualorientation, genderidentityor disability. Theprovision shall clearly indicate thatthe contracting entity orindividual will ensure thisobligation pertains tothehiringandtreatment ofthecontractor's employees and toallsubcontracts. Theaboverequirementshallapplytoallpurchasesofgoodsandequipmentonlywherethe Cityentersintoasignedwrittenagreement, otherthanapurchase orderorreceipt, forthe purchase. Allrequests forproposals (RFP), requests forqualifications (RFQ) andallother notices soliciting bids forconstruction, services, oranyothercontracted service, shallinclude a provision requiringeverysubmittingentitytoaffirmitwillnotdiscriminateasdescribed hereinandrecognizetheeventualcontractwillprohibitdiscriminationasdescribedherein. Ifanentitysubmitting abidonaproject doesnotaffinn initssubmittal thatitwillcomply withthisrequirement, theCityshallconsiderthesubmitternon-responsive. Agreementsfortheexpenditureofpublicfundswhichincludealegalanti-discrimination requirement otherthanthatrequiredbytheCity, suchasafederalorstaterequirement, mustincludethediscrimination provisionrequiredbythefederalorstatelaw, as appropriate. Ifthefederalorstaterequirementdoesnotincludeadiscriminationcategory listedherein suchassexualorientation orgender identity theagreement must beamended oranaddendumexecutedtoincludethemissingcategory. Theaboverequirement doesnotapplytotheCity'sissuance ofgeneral licenses suchas businessorpetlicensesnorshallitapplytogeneralorspecialpermitsorentitlements issuedbytheCity. Inaddition, theserequirements donotapplywhentheCityentersinto Resolution4250: PolicyProhibitingDiscriminationinContractingandOtherAgreements Page2of3 62 agreementstoprovideservicessuchasgarbageorrecyclingservices, toanotherentityor individual. Section2: ExceptionstobeMadebyCommission ExceptionstothispolicymaybemadebytheCityCommission onacase-by-case basis. Section3: implementation byCityManager TheCityManagershallimplementthispolicythroughadministrativepoliciesorthrough administrative order. Datedthis29dayofMarch, 2010. ATTEST:BO STA EN,CMC: CityCl 1883 ty, C0 APPROVED AS TOFORM: SULLIVAN CityAttomey R:solution4250: Polic) Prohibiting I)iscrimination inContracting andOtherAgreements Page 3of3 63 5th & Main Off-Site Sewer Improvements Engineers Estimate September 2023 Item No.Description Construction Quantity Units Unit Price Construction Amount 101 Taxes, Bond, Insurance 1 LS 45,000.00$ 45,000.00$ 102 Mobilization 1 LS 150,000.00$ 150,000.00$ 103 Traffic Control 1 LS 80,000.00$ 80,000.00$ 104 Locate and Protect Public & Private Utilities 1 LS 25,000.00$ 25,000.00$ Water ImprovementsSewer 201 Connect to Existing Sewer 1 EA 5,000.00$ 5,000.00$ 202 8" PVC, SDR 35 Sewer Pipe 1245 LF 125.00$ 155,625.00$ 203 8" PVC, SDR 35 Sewer Pipe w/ Flow Fill 25 LF 175.00$ 4,375.00$ 204 Remove Ex. Manhole 3 EA 4,000.00$ 12,000.00$ 205 4' Dia. Manhole (5-ft Depth)4 EA 8,500.00$ 34,000.00$ 206 4' Dia. Manhole, Add'l Vert. Depth 17 VF 250.00$ 4,250.00$ 207 Sewer Service Connection 35 EA 1,300.00$ 45,500.00$ 208 4" PVC, SDR 26 Sewer Pipe w/ Flow Fill 700 LF 160.00$ 112,000.00$ 209 Bypass Pumping 1 LS 65,000.00$ 65,000.00$ 210 Remove & Replace Curb at Services 350 LF 22.50$ 7,875.00$ 211 Remove & Replace Sidewalk at Services 1700 SF 15.00$ 25,500.00$ 212 Repair Landscaping at Services 1 LS 15,000.00$ 15,000.00$ 213 Adjust 2"- Water Service Line w/ Flow Fill 35 LF 160.00$ 5,600.00$ 214 Adjust 4"+ Water Service Line w/ Flow Fill 70 LF 160.00$ 11,200.00$ Roadway ImprovementsReconstruct 5th Ave. (Main St. to Alley) 501 Sawcut & Remove Ex. Asphalt 510 SY 10.00$ 5,100.00$ 502 Remove Concrete (curb, sidewalk, and gutter)1,700 SF 7.50$ 12,750.00$ 503 Re-Grade/Place Crushed Base (1.5" Minus)510 SY 7.50$ 3,825.00$ 504 3" Thick Asphalt Surface Course 510 SY 115.00$ 58,650.00$ 505 New Curb and Gutter 155 LF 51.00$ 7,905.00$ 506 New Concrete Alley Approaches 245 SF 15.00$ 3,675.00$ 507 Street Signs 2 EA 700.00$ 1,400.00$ 508 Adjust Ex. Valve to Grade 3 EA 350.00$ 1,050.00$ 509 Yellow Curb Paint 63 LF 8.00$ 504.00$ 510 Thermoplastic Pavement Markings 55 SF 35.00$ 1,925.00$ Roadway ImprovementsMill & Overlay 5th Ave. (Alley to Mendenhall) & Mendenhall St. (5th Ave. to Grand Ave.) 401 Cold Milling Asphalt - 1.5" Deep 4,755 SY 4.00$ 19,020.00$ 402 Hot Mix Overlay 4,755 SY 15.00$ 71,325.00$ 403 Remove & Replace Concrete Cross Drain 57 SF 15.00$ 855.00$ 404 Adjust Ex. Manhole to Grade 3 EA 750.00$ 2,250.00$ 405 Adjust Ex. Valve to Grade 8 EA 350.00$ 2,800.00$ 406 Centerline Striping 710 LF 8.00$ 5,680.00$ 407 Epoxy Pavement Markings 424 SF 10.00$ 4,240.00$ 408 Thermoplastic Pavement Markings 894 SF 35.00$ 31,290.00$ Estimated Construction Costs 1,037,169.00$ 1-yr Inflation (4%)41,486.76$ Prevailing Wage Factor (7%)75,505.90$ Total Estimated Construction Costs 1,154,161.66$ 1 OF 1 64 Memorandum REPORT TO:City Commission FROM:Jon Henderson - Director of Strategic Services Max Ziegler - Facilities Project Coordinator SUBJECT:Authorize the City Manager to Sign an Architectural Services Agreement with A&E Design for Bozeman City Hall Renovation MEETING DATE:October 24, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign an Architectural Services Agreement with A&E Design for Bozeman City Hall Renovation STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:Capital improvement project GF370 is a consolidated project consisting of renovating office and public spaces in City Hall, retro commissioning the building for improved energy efficiency, and enhancing points of staff / public interaction through layout changes and security upgrades. The overall project budget for GF370 is $1,500,000. The first step in this project is conducting a thorough assessment of building stakeholder needs to guide space allocation and organization of programming. After conceptual drawings are created, this contract will be amended to include the full design scope and construction administration services for this project. Until the assessment phase is complete and recommendations are received from the architect, we will not be able to fully define the scope of the project. A&E Design was selected as the Project Architect for the City Hall renovation through a public Request for Qualifications process in which respondents were rigorously scored based upon their experience and qualifications. UNRESOLVED ISSUES:None at this time. ALTERNATIVES:As directed by the City Commission. FISCAL EFFECTS:The initial phase of this contract, which includes assessing program needs and creating concept drawings. The costs associated with this first phase is $8,010 to be paid from the GF370 capital improvement project fund. After 65 this phase, the contract will be amended to include full design and construction administration services for this project as soon as it is definable. Attachments: Architectural Services Agreement - A&E Design - City Hall Renovation.pdf RFQ - Architect - City Hall Renovation.pdf A&E Statement of Qualifications.pdf Report compiled on: October 12, 2023 66 Professional Services Agreement for Architectural Services Page 1 of 8 PROFESSIONAL ARCHITECTURAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this _____ day of ____________, 20___ (“Effective Date”), by and between the CITY OF BOZEMAN, MONTANA, a self-governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City,” and, A&E Design, 515 W Aspen St, Bozeman, MT 59715, hereinafter referred to as “Consultant” or “Architect.” The City and Architect may be referred to individually as “Party” and collectively as “Parties.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to hire Consultant as an independent contractor to perform for City services described in the Scope of Services attached hereto as Exhibit A and by this reference made a part hereof. 2. Effective Date: This Agreement is effective upon the Effective Date and will expire on the 31st day of December, 2025, unless earlier terminated in accordance with this Agreement. 3. Scope of Work: Consultant will perform the work and provide the services in accordance with the requirements of the Scope of Services attached hereto. For conflicts between this Agreement and the Scope of Services, unless specifically provided otherwise, the Agreement governs. 4. Payment: City agrees to pay Architect the amount specified in Exhibit A. Any alteration or deviation from the described work that involves additional costs above the Agreement amount will be performed by Architect after written request by the City, and will become an additional charge over and above the contract amount. The parties must agree in writing upon any additional charges. 5. Consultant’s Representations: To induce City to enter into this Agreement, Architect makes the following representations: a. Architect has familiarized itself with the nature and extent of this Agreement, the Scope of Services, and with all local conditions and federal, state and local laws, growth policies, adopted plans of the City, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services. 67 Professional Services Agreement for Architectural Services Page 2 of 8 b. Architect represents and warrants to City that it has the experience and ability to perform the services required by this Agreement; that it will perform the services in a professional, competent and timely manner and with diligence and skill; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this warranty. 6. Independent Contractor Status: The parties agree that Architect is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Architect is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Architect is not authorized to represent the City or otherwise bind the City in any dealings between Architect and any third parties. Architect shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, Montana Code Annotated (MCA), and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Architect shall maintain workers’ compensation coverage for all members and employees of Architect’s business, except for those members who are exempted by law. Architect shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. 7. Indemnity/Waiver of Claims/Insurance: For other than professional services rendered, to the fullest extent permitted by law, Architect agrees to defend, indemnify, and hold the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) harmless against claims, demands, suits, damages, losses, and expenses connected therewith that may be asserted or claimed against, recovered from or suffered by the City by reason of any injury or loss, including but not limited to, personal injury, including bodily injury or death, property damage, occasioned by, growing out of, or in any way arising or resulting from any intentional or negligent act on the part of Architect or Architect’s agents or employees. For the professional services rendered, to the fullest extent permitted by law, Architect agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the negligence or intentional misconduct of the Architect or Architect’s agents or employees. Architect also waives any and all claims and recourse against the City, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for [City’s] 68 Professional Services Agreement for Architectural Services Page 3 of 8 own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the City as indemnitee(s) which would otherwise exist as to such indemnitee(s). Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. Should City be required to bring an action against the Architect to assert its right to defense or indemnification under this Agreement or under the Architect’s applicable insurance policies required below the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Architect was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. The obligations of this Section shall survive termination of this Agreement and the services performed hereunder. In addition to and independent from the above, Architect shall secure insurance coverage acceptable to the City and furnish to the City an accompanying certificate of insurance issued by a company authorized to do business in the State of Montana in amounts not less than as follows:  Workers’ Compensation - statutory  Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate  Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate  Automobile Liability - $1,000,000 property damage/bodily injury; $2,000,000 annual aggregate  Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate The City of Bozeman shall be endorsed as an additional or named insured on a primary non- contributory basis on both the Commercial General and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non-renewal. The City must approve all insurance coverage and endorsements prior to the Architect commencing work. 8. Professional Service: Architect agrees that all services and work performed hereunder will be accomplished in a professional manner. 9. Compliance with Laws: Architect agrees to comply with all federal, state and local laws, ordinances, rules and regulations, including the safety rules, codes, and provisions of the 69 Professional Services Agreement for Architectural Services Page 4 of 8 Montana Safety Act in Title 50, Chapter 71, MCA. Architect agrees to purchase a City business license. 10. Nondiscrimination and Equal Pay: The Architect agrees that all hiring by Architect of persons performing this Agreement shall be on the basis of merit and qualifications. The Architect will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Architect 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 Architect 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. Architect 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). Architect must report to the City any violations of the Montana Equal Pay Act that Architect has been found guilty of within 60 days of such finding for violations occurring during the term of this Agreement. Architect shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 11. Default and Termination: If either Party fails to comply with any condition of this Agreement at the time or in the manner provided for, the other Party, at its option, may terminate this Agreement and be released from all obligations if the default is not cured within ten (10) days after written notice is provided to the defaulting Party. Said notice shall set forth the items to be cured. Additionally, the non-defaulting Party may bring suit for damages, specific performance, and any other remedy provided by law. These remedies are cumulative and not exclusive. Use of one remedy does not preclude use of the others. Notices shall be provided in writing and hand-delivered or mailed to the Parties at the addresses set forth in the first paragraph of this Agreement. 12. Modification and Assignability: This document contains the entire agreement between the parties and no statements, promises or inducements made by either party or agents of either party, which are not contained in this written Agreement, may be considered valid or binding. This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Architect may not subcontract or assign Architect’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of the City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 70 Professional Services Agreement for Architectural Services Page 5 of 8 13. Ownership and Publication of Materials: All reports, information, data, and other materials prepared by the Architect pursuant to this Agreement, except those separately identified in the Scope of Services or in other written agreements between the parties, are jointly owned by the Architect and the City. The City has authority to release, publish or otherwise use, in whole or part, reports, information, data and other materials prepared by Architect pursuant to this Agreement, except those separately identified in the Scope of Services or in other written agreements between the parties. Any re-use without written verification or adaptation by the Architect for the specific purpose intended will be at the City’s sole risk and without liability or legal exposure to the Architect. No material produced in whole or in part under this Agreement may be copyrighted or patented in the United States or in any other country without the prior written approval of the City. 14. Representatives and Notices: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be Max Ziegler, Facilities Project Coordinator, or such other individual as City shall designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission shall be directed to the City’s Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, Architect may direct its communication or submission to other designated City personnel or agents as designated by the City in writing and may receive approvals or authorization from such persons. b. Architect’s Representative: The Architect’s Representative for the purpose of this Agreement shall be Brad Doll, Principal, or such other individual as Architect shall designate in writing. Whenever direction to or communication with Architect is required by this Agreement, such direction or communication shall be directed to Architect’s Representative; provided, however, that in exigent circumstances when Architect’s Representative is not available, City may direct its direction or communication to other designated Architect personnel or agents. c. Notices: All notices required by this Agreement shall be in writing and shall be provided to the Representatives named in this Section. Notices shall be deemed given when delivered, if delivered by courier to Party’s address shown above during normal business hours of the recipient; or when sent, if sent by email or fax (with a successful transmission report) to the email address or fax number provided by the Party’s Representative; or on the fifth business day following mailing, if mailed by ordinary mail to the address shown above, postage prepaid. 71 Professional Services Agreement for Architectural Services Page 6 of 8 15. Applicability: This Agreement and any extensions hereof shall be governed and construed in accordance with the laws of the State of Montana. 16. Reports/Accountability/Public Information: Architect agrees to develop and/or provide documentation as requested by the City demonstrating Architect’s compliance with the requirements of this Agreement. Architect shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the reimbursement of monies distributed to Architect pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Architect shall not issue any statements, releases or information for public dissemination without prior approval of the City. 17. Non-Waiver: A waiver by either Party of any default or breach by the other party of any terms or conditions of this Agreement does not limit the other Party’s right to enforce such term or conditions or to pursue any available legal or equitable rights in the event of any subsequent default or breach. 18. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 20. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 21. Dispute Resolution: a. Any claim, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. b. If the parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 22. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 23. Headings: The headings used in this Agreement are for convenience only and are not be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 72 Professional Services Agreement for Architectural Services Page 7 of 8 24. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 25. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 26. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 27. No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or enforced by a third party. 28. Attorney’s Fees and Costs: In the event it becomes necessary for either Party to retain an attorney to enforce any of the terms or conditions of this Agreement or to give any notice required herein, then the prevailing Party or the Party giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel including the City Attorney’s Office staff. 29. Consent to Electronic Signatures: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. 30. Extensions: This Agreement may, upon mutual agreement, be extended for a period of one year by written agreement of the Parties. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** 73 Professional Services Agreement for Architectural Services Page 8 of 8 IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written or as recorded in an electronic signature. CITY OF BOZEMAN, MONTANA ____________________________________ ARCHITECT (Type Name Above) By________________________________ By__________________________________ Jeff Mihelich, City Manager Print Name: Print Title: ____________________________ APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney 74 EXHIBIT A 75 Our Proposal 1 A&E Design 515 West Aspen Street Bozeman, MT 59715 ae.design October 11th, 2023 Max Ziegler Facilities Project Coordinator 20 East Olive Street Bozeman, MT 59715 Via email : wziegler@bozeman.net RE: Bozeman City Hall – Needs Assessment Dear Max, A&E is pleased to submit a proposal for the needs assessment for City Hall. We understand that this is an important first step in planning for the future needs of the City. We have assembled our understanding of the scope of work and related tasks and deliverables for this project. Accompanying this outline, you will find a summary of our proposed fees related to our estimated fee to provide these services. Task 1 – Programming | Planning – Needs Assessment a. Programming Meetings i. Our team will meet with all the various departments within City Hall to determine their immediate and long-term space needs within the facility. This will include but not limited to, Finance Department, HR, City Administration, Economic Development, and the Law Department. It is assumed that we will meet for about an hour with each team. b. Build Existing and New Program i. We will build an existing program space list of the current facility as it exists today as well as a program that meets the needs and goals of the project per our meetings with the departments in the facility. ii. Accompanying this we will have the users provide information related to their spatial needs with Room Data c. Concept Diagrams i. Our team will develop conceptual floor plan diagrams that provide spatial solutions for the new programmed space that works to solve the needs of the departments. d. As-Built Drawings i. As a part of our needs assessment, we like to work with drawings in order to better illustrate the spatial opportunities and constraints with the building users. This often lends itself to more thoughtful comments and better information. We will need to develop a digital set of drawings from the existing hard copy drawings that would be provided. 76 Our Proposal 2 We are excited to begin this project for the City of Bozeman. Thank you for this opportunity! Please don’t hesitate to reach out with any questions. Sincerely, Brad Doll AIA Principal 77 Exhibit A Bozeman City Hall - Needs Assessment Proposal Bozeman, Montana 10|11|23 Total Cost Task 1 - Programming | Planning - Needs Assessment 1. Programming Meetings (Finance, HR, City Admin, Economic Development, Law) $1,800 2. Build Existing and New Program $1,890 3. Concept Diagrams $2,400 4. As-Built Drawings $1,920 Subtotal $8,010 Total Project Fee $8,010 Programming 78 Page 1 of 20 REQUEST FOR QUALIFICATIONS (RFQ) CITY HALL RENOVATION – PROJECT ARCHITECT CITY OF BOZEMAN Bozeman, MT City of Bozeman PO Box 1230 Bozeman, MT 59771-1230 August 2023 79 Page 2 of 20 NOTICE IS HEREBY given that the City of Bozeman (City) is seeking qualifications from firms to provide Architectural services related to the renovation of Bozeman City Hall. The selected firm is to serve as the Project Architect, generate designs and plans for reconfiguration and optimization of office space, generate cost estimates, and provide construction administration services for the project. Copies of the Request for Qualifications are available on the City’s website All proposals must be provided as a single, searchable PDF document file and be submitted digitally as an email attachment to the RFP Recipient email address below. Respondents are advised that Recipient’s email attachment size limit is 25MB and that only one PDF file will be allowed per response. The subject line of the transmittal email shall clearly identify the RFP title, company name and due date/time. File sizes greater than 25MB in size may be uploaded to the City Clerks’ Office upon special arrangement of the Recipient; however, it is the respondent’s sole responsibility to ensure the file upload is completed, and that the Recipient is separately notified via email of same, prior to the given deadline. Deliver RFQs via email to the City Clerk by September 13th, 2023 at 2:00 PM MST. It is the sole responsibility of the proposing party to ensure that proposals are received prior to the closing time as late submittals will not be accepted and will be returned unopened. The email address for submission is: agenda@bozeman.net NON-DISCRIMINATION AND EQUAL PAY The City of Bozeman is an Equal Opportunity Employer. Discrimination in the performance of any agreement awarded under this RFQ on the basis of race, color, religion, creed, sex, age, marital status, national origin, or actual or perceived sexual orientation, gender identity or disability is prohibited. This prohibition shall apply to the hiring and treatment of the awarded entity’s employees and to all subcontracts. As such, each entity submitting under this notice shall include a provision wherein the submitting entity, or entities, affirms in writing it will not discriminate on the basis of race, color, religion, creed, sex, age, marital status, national origin, or because of actual or perceived sexual orientation, gender identity or disability and which also recognizes the eventual contract will contain a provision prohibiting discrimination as described above and that this prohibition on discrimination shall apply to the hiring and treatment of the submitting entity’s employees and to all subcontracts. In addition, pursuant to City Commission Resolution 5169, the entity awarded a contract under this RFQ and any subcontractors must abide by the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act), and affirm it will abide by the above and that it has visited the State of Montana Equal Pay for Equal Work “best practices” website, or equivalent “best practices publication and has read the material. Failure to comply with the above may be cause for the City to deem the submittal non-responsive. 80 Any administrative questions regarding proposal procedures should be directed to: Mike Maas, City Clerk (406) 582-2321, agenda@bozeman.net. Questions relating to the RFQ should be directed to: Max Ziegler, Facilities Project Coordinator, (406) 582- 2439, wziegler@bozeman.net. DATED at Bozeman, Montana, this August 19th, 2023 Mike Maas City Clerk City of Bozeman For publication on: Saturday, August 19, 2023 Saturday, September 2, 2023 81 I. INTRODUCTION The City of Bozeman (Owner), is seeking qualifications from firms to undertake Architectural and Construction Administration services related to the renovation of Bozeman City Hall. The Owner intends to enter into a contract with the selected firm that will include working with various departments located at City Hall to identify facility and space needs, creating designs and plans for the renovation work, generating project cost estimates, and providing Construction Administration services for the project. This RFQ shall not commit the Owner to enter into an agreement, to pay any expenses incurred in preparation of any response to this request, or to procure or contract for any supplies, goods or services. The Owner reserves the right to accept or reject all responses received as a result of this RFQ if it is in the Owner’s best interest to do so. This procurement is governed by the laws of the State of Montana and venue for all legal proceedings shall be in the 18th Judicial District Court, Gallatin County. By offering to perform services under this RFQ, all Submitters agree to be bound by the laws of the State of Montana and of the Owner, including, but not limited to, applicable wage rates, payments, gross receipts taxes, building codes, equal opportunity employment practices, safety, non-discrimination, etc. II. SCOPE OF PROJECT - PROJECT BACKGROUND AND DESCRIPTION Introduction Bozeman City Hall, located at 121 N Rouse Ave, Bozeman, MT, was originally constructed in 1980 as a public library. Following the opening of the current Bozeman Public Library on Main St. in 2006, the old library was converted for use as Bozeman’s City Hall and was renovated for that purpose in 2008. In the time that the building has served as City Hall, the City has experienced significant growth in population and City staff. To meet the current needs of City Hall, a renovation is required to maximize usable square footage within the building as well as increase the functionality and security of the facility. Goals for this project include:  Improved safety and security through redesign of the Finance Department front counter located on the first floor.  Additional office space for several Departments, including but not limited to, Human Resources, Economic Development, Finance, and the City Manager Office.  Consideration of space needed for records storage.  Improved energy efficiency through recommissioning efforts. 82 The City is seeking an architectural firm to work with the various departments. to identify the current and future needs of their offices, develop designs and construction documents for a renovation which meets those needs, and then provide construction administration services as the Project Architect. III. SCOPE OF SERVICES The Scope of Services for the proposed contract is final design on the City Hall Renovation project. The successful firm will provide all services necessary to complete the design, develop construction bid documents, assist in bidding the project and coordinate in oversight of the construction activities. All work must be in compliance with all applicable requirements under Montana and Federal laws and regulations. Preliminary Design  Determine office space and facility needs for departments located in City Hall  Schematic Design Phase  Preliminary cost estimation and budget development  Design Development Phase Construction Documents  Construction Documents – to include all Design Documents which will specify all elements and other information necessary to complete the construction project, including all permiting and regulatory approvals required.  Bidding – creation of drawings and contract documents required to put project out to bid. The selected firm will assist the City in preparing bid documents, soliciting and evaluating bids, and all other bidding activities. Administration of Construction Contract  Professional services as normally required for oversight and execution of the construction contracts during the preconstruction and construction phases of this project. Detailed project schedules will be established during task order negotiations. Proposals must clearly demonstrate the firm’s ability to rovide the servies detailed above given their current staffing. IV. TIMELINES, DELIVERY DEADLINE, AND INSTRUCTIONS Deliver RFQs via email to the City Clerk (agenda@bozeman.net) by September 13, 2023 at 2:00 PM MST. It is the sole responsibility of the proposing party to ensure that proposals are received prior to the closing time as late submittals will not be accepted and will be returned. All proposals must be provided as a single, searchable PDF document file and be submitted digitally as an email attachment to the RFQ Recipient email address agenda@bozeman.net. Respondents are advised that Recipient’s email attachment size limit is 25MB and that only one PDF file will be allowed per response. The subject line of the transmittal email shall clearly identify the RFQ title, company name and due date/time. File sizes greater than 25MB in size may be uploaded to an alternate submission method 83 upon special arrangement of the Recipient; however, it is the respondent’s sole responsibility to ensure the file upload is completed, and that the Recipient is separately notified via email of same, prior to the given deadline. A. Contact Information ALL QUESTIONS AND CONTACTS REGARDING THIS RFQ MUST BE SUBMITTED IN WRITING TO: Max Ziegler – Facilities Project Coordinator P.O. Box 1230 Bozeman, MT 59771-1230 (406) 582-2250 wziegler@bozeman.net Amendments to Solicitation Any interpretation or correction of this request will be published on the City’s webpage. The deadline for questions related to this document is 12:00 PM MST on September 8, 2023 B. Selection Timeline Advertising dates: August 19 and September 2, 2023 Receipt of RFQs: No later than 2:00 p.m. MST September 13, 2023 RFQ Review Complete by Committee: September 20, 2023 Interviews: September 29, 2023 Selection: October 10, 2023 With the exception of the advertising dates and advertised due date, the City reserves the right to modify the above timeline. V. SELECTION PROCEDURE A. STATEMENT OF QUALIFICATIONS Respondents must comply with the mandatory requirements provided in this solicitation. The selection process shall be conducted pursuant to all applicable Montana law including those criteria set forth in §18-8-204, MCA and applicable City policy. 1. Evaluation of RFQs. The selection committee shall consist of no less than three persons representing the City. The selection committee will review conforming RFQ responses using the criteria listed above. RFQ responses that do not contain the required documentation will be deemed nonresponsive to this solicitation and may be rejected. 84 2. Revisions. Responses will be accorded fair and equal treatment with respect to opportunity for discussion and revision of responses, and such revisions may be permitted, after submissions and prior to award for the purpose of obtaining best and final responses. 3. Evaluation & Elimination. After evaluating all conforming responses based on the criteria herein the selection committee may eliminate one or more or all Respondents from further review if they do not meet the qualification criteria specified herein. Any Respondents eliminated by the selection committee, at any time, or for any reason, shall have no opportunity to make revisions or participate further in the selection process. 4. Interviews. After reviewing conforming RFQ responses, the selection committee may decide to schedule interviews with qualified respondents. Interviews will be held on September 29, 2023 at 10:00 AM at the Professional Building, 20 East Olive Street (basement conference room), Bozeman MT 59715. Each firm selected for interview will be notified of the specific time for their interview. The format of the interview will be left up to the proposing firm; however, interviews will be [45] minutes inclusive of questions from the selection committee, with 15 minutes between interviews for transitions and set up between Respondents. 5. Selection and Final Recommendation. The selection committee will tally the scores for the RFQ. At that time contract negotiations will take place between the City and successful Respondent. The City may negotiate a contract with the next highest ranked Respondent if a contract cannot be made. B. RFQ – FORM AND CONTENTS Deliver one (1) digital copy prepared as follows: i. General Instructions: a. RFQ responses must be signed by an officer or principal of your firm. b. RFQ responses must be contained in a single searchable PDF document not to exceed 20 pages total including whatever pictures, charts, graphs, tables, and text the firm deems appropriate to be part of the review of the firm's qualifications. A separate transmittal letter, cover page, cover sheets, and dividers are exempted from the page limit. c. Schedules may be submitted in addition to the page limit. ii. Firm Information: a. Experience. Respondent must demonstrate successful experience and capacity to act as a contractor on projects of similar size, type and complexity. Provide the name and location of each project, the client, and the contact person and phone number. Describe experience and qualifications of the professional personnel to be assigned to this project. Describe your recent and current work for the City of Bozeman, if any. 85 b. Firm Background. Provide information about the firm, including location. Describe the firm’s history. Include information identifying the firm’s annual volume of business, financial/bonding capacities, and speak to the firm’s stability in the marketplace. Information identifying the firm’s strengths and weaknesses along with special capabilities that may be appropriate to the Project will assist in the evaluation. c. Firm Workload. Provide the status of current and anticipated work within the firm in terms of time and magnitude for the anticipated Project schedule as it relates to availability of key personnel and your firm. Describe the firm’s capability to meet time and project budget requirements. d. Claims. At any time in the last ten (10) years has your firm been assessed and paid liquidated damages after completion of a project under a contract with a public owner? e. References. Provide detailed contact information for the Owner for at least five (5) project undertaken by your firm within the past five years. C. EVALUATION CRITERIA Qualifications will be evaluated by the Selection Committee who will individually score them out of a total of 100 possible points based on the criteria below.The scoring criteria and possible point values are: 1. Respondent’s experience with projects of similar size and design: Possible Points: 40 2. Firm’s Qualifications: Possible Points: 20 3. Capabilities to meet time schedule and project budget requirements. Possible Points: 20 4. Present and projected workloads: Possible Points: 10 5. Past projects/experience working with the City of Bozeman: 86 Possible Points: 5 6. Office(s) location: Possible Points: 5 VI. FORM OF AGREEMENT The form of agreement is attached to this document as Attachment B VII. CITY RESERVATION OF RIGHTS All proposals submitted in response to this RFQ become the property of the City and public records and, as such, may be subject to public review. A SUBMISSION IN RESPONSE TO THIS REQUEST FOR QUALIFICATIONS CONFERS NO RIGHTS UPON ANY RESPONDENTS AND SHALL NOT OBLIGATE THE CITY IN ANY MANNER WHATSOEVER. THE CITY RESERVES THE RIGHT TO MAKE NO AWARD AND TO SOLICIT ADDITIONAL REQUEST FOR QUALIFICATIONS AT A LATER DATE. A. This RFQ may be canceled or any or all responses may be rejected in whole or in part, as specified herein, when it is in the best interests of the City. If the City cancels or revises this RFQ, all Respondents who submitted will be notified using email. B. The City reserves the right to accept or reject any and all submissions; to add or delete items and/or quantities; to amend the RFQ; to waive any minor irregularities, informalities, or failure to conform to the RFQ; to extend the deadline for submitting proposals; to postpone award for up to 60 days; to award one or more contracts, by item or task, or groups of items or tasks, if so provided in the RFQ and if multiple awards are determined by the City to be in the public interest. C. The City reserves the right to reject the submission of any person/firm who previously failed to perform properly to the satisfaction of the City, or complete on time agreements of similar nature, or to reject the submission of any person/firm who is not in a position to perform such an agreement satisfactorily as determined by the City. D. The City reserves the right to determine the best qualified Respondents and negotiate a final scope of service and cost, negotiate a contract with another Respondents if an agreement cannot be reached with the first selected Respondents, or reject all proposals. E. The successful Respondents will be required to enter into a contract with the City, which will incorporate the Respondents' scope of service and work schedule as part of 87 the agreement. F. This RFQ does not commit the City to award a contract. The City assumes no liability or responsibility for costs incurred by Respondents in responding to this request for qualifications or request for interviews, additional data, or other information with respect to the selection process, prior to the issuance of an agreement, contract or purchase order. The Respondents, by submitting a response to this RFQ, waives all right to protest or seek any legal remedies whatsoever regarding any aspect of this RFQ. G. This project is subject to the availability of funds. VIII. NONDISCRIMINATION AND EQUAL PAY POLICY The City of Bozeman requires each entity submitting under this notice shall affirm, on a separate form provided, that it will not discriminate on the basis of race, color, religion, creed, sex, age, marital status, national origin, or because of actual or perceived sexual orientation, sexual preference, gender identity, or disability in fulfillment of a contract entered into for the services identified herein and that this prohibition on discrimination shall apply to the hiring and treatment of the submitting entity’s employees and to all subcontracts it enters into in the fulfillment of the services identified herein. Failure to comply with this requirement shall be cause for the submittal to be deemed nonresponsive. The City also requires each entity submitting under this notice shall affirm it will abide by the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act), and has visited the State of Montana Equal Pay for Equal Work “best practices” website, https://equalpay.mt.gov/BestPractices/Employers, or equivalent “best practices publication and has read the material. IX. MISCELLANEOUS A. No Oral Agreements. No conversations or oral agreements with any officer, employee, or agent of the City shall affect or modify any term of this solicitation. Oral communications or any written/email communication between any person and City officer, employee or agent shall not be considered binding. B. No Partnership/Business Organization. Nothing in this solicitation or in any subsequent agreement, or any other contract entered into as a result of this solicitation, shall constitute, create, give rise to or otherwise be recognized as a partnership or formal business organization of any kind between or among the respondent and the City. C. Employment Restriction and Indemnity. No person who is an owner, officer, employee, contractor, or consultant of a respondent shall be an officer or employee of the City. No rights of the City’s retirement or personnel rules accrue to a respondent, its officers, employees, contractors, or consultants. Respondents shall have the responsibility of all salaries, wages, 88 bonuses, retirement, withholdings, worker’s compensation and occupational disease compensation, insurance, unemployment compensation other benefits and taxes and premiums appurtenant thereto concerning its officers, employees, contractors, and consultants. Each Respondent shall save and hold the City harmless with respect to any and all claims for payment, compensation, salary, wages, bonuses, retirement, withholdings, worker’s compensation and occupational disease compensation, insurance, unemployment compensation other benefits and taxes and premiums in any way related to each respondent’s officers, employees, contractors and consultants. D. Accessibility. Upon reasonable notice, the City will provide assistance for those persons with sensory impairments. For further information please contact the ADA Coordinator Mike Gray at 406-582-3232 or the City’s TTY line at 406-582-2301. E. Procurement. When discrepancies occur between words and figures in this solicitation, the words shall govern. No responsibility shall attach to a City employee for the premature opening of an SOQ not properly addressed and identified in accordance with these documents. F. Governing Law. This solicitation and any disputes arising hereunder or under any future agreement shall be governed and construed and enforced in accordance with the laws of the State of Montana, without reference to principles of choice or conflicts of laws. X. ATTACHMENTS The following exhibits are incorporated in this RFQ: Appendix A: Non-Discrimination Affirmation END OF RFQ 89 Attachment A NONDISCRIMINATION AND EQUAL PAY AFFIRMATION ____________________________________(name of entity submitting) hereby affirms it will not discriminate on the basis of race, color, religion, creed, sex, age, marital status, national origin, or because of actual or perceived sexual orientation, gender identity or disability and acknowledges and understands the eventual contract will contain a provision prohibiting discrimination as described above and this prohibition on discrimination shall apply to the hiring and treatments or proposer’s employees and to all subcontracts. In addition, ____________________________________(name of entity submitting) hereby affirms it will abide by the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act), and has visited the State of Montana Equal Pay for Equal Work “best practices” website, https://equalpay.mt.gov/BestPractices/Employers, or equivalent “best practices publication and has read the material. ______________________________________ Name and title of person authorized to sign on behalf of submitter 90 ATTACHMENT B PROFESSIONAL ARCHITECTURAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this _____ day of ____________, 20___ (“Effective Date”), by and between the CITY OF BOZEMAN, MONTANA, a self-governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City,” and, ____________, _______________, hereinafter referred to as “Consultant” or “Architect.” The City and Architect may be referred to individually as “Party” and collectively as “Parties.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to hire Consultant as an independent contractor to perform for City services described in the Scope of Services attached hereto as Exhibit A and by this reference made a part hereof. 2. Effective Date: This Agreement is effective upon the Effective Date and will expire on the _____ day of ____________, 20___, unless earlier terminated in accordance with this Agreement. 3. Scope of Work: Consultant will perform the work and provide the services in accordance with the requirements of the Scope of Services attached hereto. For conflicts between this Agreement and the Scope of Services, unless specifically provided otherwise, the Agreement governs. 4. Payment: City agrees to pay Architect ________________ Dollars ($_________) for services performed pursuant to the Scope of Services. In addition, production of reproducible record drawings will be billed at the hourly rate, not to exceed ________________ Dollars ($_________). Any alteration or deviation from the described work that involves additional costs above the Agreement amount will be performed by Architect after written request by the City, and will become an additional charge over and above the contract amount. The parties must agree in writing upon any additional charges. 5. Consultant’s Representations: To induce City to enter into this Agreement, Architect makes the following representations: a. Architect has familiarized itself with the nature and extent of this Agreement, the Scope of Services, and with all local conditions and federal, state and local laws, growth policies, adopted plans of the City, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services. 91 b. Architect represents and warrants to City that it has the experience and ability to perform the services required by this Agreement; that it will perform the services in a professional, competent and timely manner and with diligence and skill; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this warranty. 6. Independent Contractor Status: The parties agree that Architect is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Architect is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Architect is not authorized to represent the City or otherwise bind the City in any dealings between Architect and any third parties. Architect shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, Montana Code Annotated (MCA), and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Architect shall maintain workers’ compensation coverage for all members and employees of Architect’s business, except for those members who are exempted by law. Architect shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. 7. Indemnity/Waiver of Claims/Insurance: For other than professional services rendered, to the fullest extent permitted by law, Architect agrees to defend, indemnify, and hold the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) harmless against claims, demands, suits, damages, losses, and expenses connected therewith that may be asserted or claimed against, recovered from or suffered by the City by reason of any injury or loss, including but not limited to, personal injury, including bodily injury or death, property damage, occasioned by, growing out of, or in any way arising or resulting from any intentional or negligent act on the part of Architect or Architect’s agents or employees. For the professional services rendered, to the fullest extent permitted by law, Architect agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the negligence or intentional misconduct of the Architect or Architect’s agents or employees. Architect also waives any and all claims and recourse against the City, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for [City’s] own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. 92 Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the City as indemnitee(s) which would otherwise exist as to such indemnitee(s). Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. Should City be required to bring an action against the Architect to assert its right to defense or indemnification under this Agreement or under the Architect’s applicable insurance policies required below the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Architect was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. The obligations of this Section shall survive termination of this Agreement and the services performed hereunder. In addition to and independent from the above, Architect shall secure insurance coverage acceptable to the City and furnish to the City an accompanying certificate of insurance issued by a company authorized to do business in the State of Montana in amounts not less than as follows:  Workers’ Compensation - statutory  Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate  Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate  Automobile Liability - $1,000,000 property damage/bodily injury; $2,000,000 annual aggregate  Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate The City of Bozeman shall be endorsed as an additional or named insured on a primary non- contributory basis on both the Commercial General and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non-renewal. The City must approve all insurance coverage and endorsements prior to the Architect commencing work. 8. Professional Service: Architect agrees that all services and work performed hereunder will be accomplished in a professional manner. 9. Compliance with Laws: Architect agrees to comply with all federal, state and local laws, ordinances, rules and regulations, including the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA. Architect agrees to purchase a City business license. 10. Nondiscrimination and Equal Pay: The Architect agrees that all hiring by Architect of persons performing this Agreement shall be on the basis of merit and qualifications. The Architect will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti- discrimination laws, regulations, and contracts. The Architect 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 93 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 Architect 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. Architect 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). Architect must report to the City any violations of the Montana Equal Pay Act that Architect has been found guilty of within 60 days of such finding for violations occurring during the term of this Agreement. Architect shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 11. Default and Termination: If either Party fails to comply with any condition of this Agreement at the time or in the manner provided for, the other Party, at its option, may terminate this Agreement and be released from all obligations if the default is not cured within ten (10) days after written notice is provided to the defaulting Party. Said notice shall set forth the items to be cured. Additionally, the non-defaulting Party may bring suit for damages, specific performance, and any other remedy provided by law. These remedies are cumulative and not exclusive. Use of one remedy does not preclude use of the others. Notices shall be provided in writing and hand-delivered or mailed to the Parties at the addresses set forth in the first paragraph of this Agreement. 12. Modification and Assignability: This document contains the entire agreement between the parties and no statements, promises or inducements made by either party or agents of either party, which are not contained in this written Agreement, may be considered valid or binding. This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Architect may not subcontract or assign Architect’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of the City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 13. Ownership and Publication of Materials: All reports, information, data, and other materials prepared by the Architect pursuant to this Agreement, except those separately identified in the Scope of Services or in other written agreements between the parties, are jointly owned by the Architect and the City. The City has authority to release, publish or otherwise use, in whole or part, reports, information, data and other materials prepared by Architect pursuant to this Agreement, except those separately identified in the Scope of Services or in other written agreements between the parties. Any re- use without written verification or adaptation by the Architect for the specific purpose intended will be at the City’s sole risk and without liability or legal exposure to the Architect. No material produced in whole or in part under this Agreement may be copyrighted or patented in the United States or in any other country without the prior written approval of the City. 14. Representatives and Notices: 94 a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be _________________ or such other individual as City shall designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission shall be directed to the City’s Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, Architect may direct its communication or submission to other designated City personnel or agents as designated by the City in writing and may receive approvals or authorization from such persons. b. Architect’s Representative: The Architect’s Representative for the purpose of this Agreement shall be _____________________ or such other individual as Architect shall designate in writing. Whenever direction to or communication with Architect is required by this Agreement, such direction or communication shall be directed to Architect’s Representative; provided, however, that in exigent circumstances when Architect’s Representative is not available, City may direct its direction or communication to other designated Architect personnel or agents. c. Notices: All notices required by this Agreement shall be in writing and shall be provided to the Representatives named in this Section. Notices shall be deemed given when delivered, if delivered by courier to Party’s address shown above during normal business hours of the recipient; or when sent, if sent by email or fax (with a successful transmission report) to the email address or fax number provided by the Party’s Representative; or on the fifth business day following mailing, if mailed by ordinary mail to the address shown above, postage prepaid. 15. Applicability: This Agreement and any extensions hereof shall be governed and construed in accordance with the laws of the State of Montana. 16. Reports/Accountability/Public Information: Architect agrees to develop and/or provide documentation as requested by the City demonstrating Architect’s compliance with the requirements of this Agreement. Architect shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the reimbursement of monies distributed to Architect pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Architect shall not issue any statements, releases or information for public dissemination without prior approval of the City. 17. Non-Waiver: A waiver by either Party of any default or breach by the other party of any terms or conditions of this Agreement does not limit the other Party’s right to enforce such term or conditions or to pursue any available legal or equitable rights in the event of any subsequent default or breach. 18. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 95 20. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 21. Dispute Resolution: a. Any claim, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. b. If the parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 22. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 23. Headings: The headings used in this Agreement are for convenience only and are not be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 24. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 25. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 26. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 27. No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or enforced by a third party. 28. Attorney’s Fees and Costs: In the event it becomes necessary for either Party to retain an attorney to enforce any of the terms or conditions of this Agreement or to give any notice required herein, then the prevailing Party or the Party giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel including the City Attorney’s Office staff. 29. Consent to Electronic Signatures: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. 96 30. Extensions: This Agreement may, upon mutual agreement, be extended for a period of one year by written agreement of the Parties. In no case, however, may this Agreement run longer than __________________________. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** 97 IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written or as recorded in an electronic signature. CITY OF BOZEMAN, MONTANA ____________________________________ ARCHITECT (Type Name Above) By________________________________ By__________________________________ Jeff Mihelich, City Manager Print Name: Print Title: ____________________________ APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney 98 09 / 13 / 23create impact. Statement of Qualifications City of Bozeman City Hall Renovation 99 100 COVER LETTER | 1 Dear Max and Selection Committee, A&E Design is pleased to present our qualifications for your project. The skills and experiences outlined herein prepare us to meet—and position us to exceed—your expectations for the renovation of City Hall. Our integrated project approach will involve steadfast collaboration and communication between our team, the City, and project stakeholders. The design we produce will ensure a positive work environment, efficient and effective spatial layout, and flexibility for future needs. Our collective experience with projects like yours demonstrates the creativity, problem solving, and strong project management that will result in the best outcome for your investment. Our team also has a long history completing projects in and around Bozeman. We’ve planned, designed, and built a variety of projects for multiple industries, including educational facilities, commercial buildings, and public spaces. Our familiarity with Bozeman's culture and landscape, in addition to our strong relationships within the community, gives us a unique edge in the planning and design process ahead. We are very excited about the prospect of continuing our relationship with you to help realize your project goals. Thank you for considering the A&E Design team. Sincerely, A&E Design BRAD DOLL AIA Principal hello. September 13, 2023 Max Ziegler – Facilities Project Coordinator P.O. Box 1230 Bozeman, MT 59771-1230 406.582.2250 wziegler@bozeman.net 101 2 | A - EXPERIENCE As one of the largest and longest-standing design firms in the region, A&E Design has extensive experience in the programming, planning, and design of public buildings. From facility analysis and assessment to the design and construction administration of public infrastructure, we possess the talent and experience to successfully meet all of your project goals. In the following pages, we will show you a collection of projects we feel demonstrates our experience in the planning and design work that you seek. Listed below is our recent and current work with the City of Bozeman: • Bozeman Library Parking Garage Study • Bozeman Downtown Parking Garage Site Study • 7th and Durston Study • Bozeman CityLift Study • Midtown Urban Renewal District our experience. 102 A -EXPERIENCE | 3 The current Gallatin County Sheriff's Office and Search and Rescue (SAR) operations are inconveniently housed in various buildings around the county. These disconnected facilities impact search and rescue response times and are inadequate to support the department as it serves an ever-growing community. A&E Design met with staff and participants to envision a centralized, cohesive campus. The resulting design will provide exceptional training experiences and a collaborative, engaging work environment to meet the current and future operational needs of the staff. The master plan includes a remodel and addition to the sheriff’s office and SAR headquarters that includes a new helicopter landing pad. The office remodel will consolidate administrative staff and resources while improving safety, occupant comfort, and operations. The SAR headquarters is designed to encourage public engagement and volunteerism and will include space to conduct multidisciplinary training, outreach, and education. Client / Contact Gallatin County Nick Borzak, Chief Operations Officer 406.209.0044 Gallatin County Sheriff's Department & S+R. BOZEMAN, MONTANA 103 4 | A - EXPERIENCE A&E Design is working with both Missoula County and the City of Missoula in the development and implementation of their space needs master plans for the National Register-listed Missoula Federal Building. Our team is currently in the process of evaluating the existing condition of the Federal Building and the potential for, and cost of, reconfiguration to meet all departments’ needs. A&E Design's services include the design for the Missoula Federal Building renovation utilizing the Secretary of the Interior’s Standards for Historic Rehabilitation (SOI), development of bid documents for construction, and supervision of construction. All work is done under the condition of maintaining the property’s historic integrity as a National Monument. Client / Contact City & County of Missoula Casey Gannon, Management Analyst 406.258.3399 Missoula Federal Building. MISSOULA, MONTANA 104 A -EXPERIENCE | 5 Gallatin County approached the existing Farm Bureau building as a renovation opportunity for their County Attorney offices. The design creates a welcoming environment that includes private offices, open work space, and collaborative shared working areas. The existing atrium was enhanced to provide additional daylight and become an interactive space for attorneys and clients. In addition to developing an interior remodel for the CA offices, the design team master planned the remaining two floors of the building and provided an exterior concept design that maintains the original character of the building while giving a professional and updated appearance. Due to constrained timelines, the design team worked with the owner and the City of Bozeman to quickly develop a plan allowing occupants to move into the building, satisfying immediate needs while remaining flexible and accommodating for future change and growth. Client / Contact Gallatin County Nick Borzak, Chief Operations Officer 406.209.0044 Gallatin County Farm Bureau. BOZEMAN, MONTANA 105 6 | A - EXPERIENCE Spanning nearly a decade, this multi-phased project restored the courthouse’s historic character while meeting the modern civic and judicial needs of the community, in addition to the Department of Justice Americans with Disabilities Act (ADA) requirements. The resulting 126,500 sf renovation was implemented following a condition assessment that included code and ADA review. The courthouse and 1960s annex were upgraded to meet current electrical, IT, data, seismic, fire and life safety, ADA compliance, and Leadership in Energy and Environmental Design (LEED) requirements. Additionally, building code deficiencies, commissioning, environmental impacts, and energy rebates were addressed. The project included a new 911 Emergency Operations Call Center within the annex. Throughout the process, our team worked with each county department to reprogram spaces to meet current and future space needs requirements. The project received a LEED Silver certificate. Client / Contact Missoula County Anne Hughes, Chief Operating Officer 406.258.3160 Missoula County Courthouse. MISSOULA, MONTANA 106 A -EXPERIENCE | 7 Stillwater County serves nearly 9,500 Montana residents and eight communities from its county seat in Columbus. With multiple government agencies overcrowding support structures and aging systems in disrepair, the county sought help from A&E Design. After extensive discussions with municipal staff and stakeholders, the need for a new Law & Justice Center was clear. Our team worked alongside the County to master plan county-owned property for this critical civic building and a future office building. Currently in development, the Stillwater County Law & Justice Center is a phased effort to unite and expand multiple municipalities. Our design provides adequate space for law enforcement personnel and equipment, courtrooms, attorneys offices, and administrative functions. We considered offices that work closely together and programmed the building layout to improve connection with strategic spatial adjacencies. Every design element was thoughtfully incorporated to better serve citizens and position the County for longevity and success. Client / Contact Stillwater County Stephanie Ray, Community/Economic Development Director 406.322.8056 Stillwater County Law & Justice Center. COLUMBUS, MONTANA “A&E Design worked alongside Stillwater County commissioners and stakeholder groups, incorporating multiple county services with diverse needs into one functional, efficient, sustainable structure.” Stephanie Ray, Community/Economic Development Director 107 8 | A - EXPERIENCE The Lake County annex building places 'service' at the heart of its design. Housing seven different County departments, the building will have a strong presence on the corner, fostering a pedestrian-friendly site inviting all who may need to interact and engage with the County. The transparent façade and recessed entry create an approachable and inviting space that highlights openness and transparency, particularly for the elections department. It is supported by an adjacent community room that is shared by all departments and open for community use. The design echoes the existing Lake County Courthouse and aims to provide a healthy, collaborative working environment for each of the County divisions. While modern in its approach, the design is reminiscent of a more historic feel through its thoughtful detailing and layering consistent through all three floors. Client / Contact Lake County Billie Lee, Grants Manager / Director Special Projects 406.872.2362 Lake County Office Building. POLSON, MONTANA 108 A -EXPERIENCE | 9 The renovation of NorthWestern Energy’s Bozeman service center mixes a variety of occupancies into one space. A new two-story addition provides additional office space to offer an open and collaborative environment with private offices and conference rooms. Both the garage and warehouse were expanded and adjoined to the existing office building. The design allows users to flow from space to space without major barriers or definitive lines of separation, and gives NorthWestern Energy a refreshed presence. Because of the various complexities of the project, it was imperative that the design team, along with the Owner, formed a healthy working relationship with the City of Bozeman Planning Department to navigate this project through the site plan application. Client / Contact NorthWestern Energy Danny Kaluza, Director of Support Services 888.467.2669 NorthWestern Energy. BOZEMAN, MONTANA BEFORE 109 10 | A - EXPERIENCE The McDonald Building, located in the central business district of downtown Billings, Montana, has a rich history from its inception as the first YMCA in the state to a modern, multi-use building. Constructed in 1907, the building was renovated in support of the revitalization of downtown Billings and now serves as a multi-use building, offering both business and residential space. The main level and second floor mezzanine serve as office space for A&E Design, with additional leasable tenant space. The third and fourth floors offer 12 loft-style apartments. A&E Design renovated the space to restore historic detail elements, updating structural, mechanical, electrical, and other safety systems, as well as renewing the interior and exterior. 2019 MT AIA Award Client / Contact Bill Honaker Developer 406.861.3201 McDonald Building. BILLINGS, MONTANA BEFORE 110 A -EXPERIENCE | 11 BEFORE Housed in the historic Bluebird Building, A&E Design's Missoula team required a much-needed office expansion to accommodate our growing staff. With space as the primary concern, the design team produced a variety of space planning and programming concepts to transform the second floor into an open layout with workstations, conference space, and areas for collaboration. All work built upon A&E Design’s previous renovation of the building, which rehabilitated the entire space to provide a contemporary business environment while preserving the Bluebird’s historic fabric. The original renovation restored the building’s historic exterior, bringing back the vibrant, multi- colored 1900s motif. The overall design placed significant emphasis on creating a recognizable street presence and visual identity to gain pedestrian exposure at the street level. Client / Contact A&E Design Jim McDonald, Architect 406.721.5643 Bluebird Building. MISSOULA, MONTANA 111 12 | A - EXPERIENCE our team. We have carefully assembled a team with the experience and expertise to deliver a successful project that will engage all users. Our team’s collective experience with similar projects demonstrates an unmatched ability to produce efficient and creative solutions, resulting in the best outcome for your investment. A&E Design is an integrated design firm serving Montana and the Northwest with offices in Billings, Bozeman, Missoula, and Kalispell, Montana. We blend design disciplines to explore ideas that challenge convention. By fusing a myriad of creative talents, we use each distinct skill to shape a more dynamic end result. As a collection of innovators, we are united for a single purpose: To create impactful experiences for our clients. We offer architecture, interior design, historic preservation, and graphic design in one, comprehensive package. Associated Construction Engineering Inc. (ACE) was established in 1987 and has become one of the largest mechanical and electrical professional consulting firms in the region. They currently staff offices in Belgrade, Billings, Helena, and Missoula, Montana, and Sheridan, Wyoming. Professional engineering services in the disciplines of mechanical, electrical, plumbing, fire protection, energy analysis, and special systems are available for commercial, industrial, and residential building projects. Hicks Engineering is a structural engineering firm located in Bozeman, Montana. For over 20 years, they have been providing quality and cost effective engineering solutions to clients around the United States. As a small firm, they work closely with the project's design team to deliver customized engineering solutions on time and within budget while adhering to architectural form and function. The firm provides their clients with innovative engineering solutions with an emphasis on quality, cost, and schedules. As professionals, they uphold the highest standards for structural engineering practice and deliver outcomes of uncompromising quality. 112 A -EXPERIENCE | 13 Brad has guided numerous projects through the design and construction phases within budget and on schedule. He strives to enrich these complex processes by emphasizing collaboration and teamwork at every stage. Brad takes pride in being a problem solver, ensuring that only the best possible solutions are considered and implemented. BRAD DOLL, AIA Principal-In-Charge REGISTRATION Architect: MT, WA, ND SELECT EXPERIENCE City of Bozeman, Midtown Action Plan Bozeman, Montana Gallatin County Sheriff's Office, Expansion & Renovation Bozeman, Montana Northwestern Energy, Expansion & Renovation Bozeman, Montana MSU, Alumni Foundation Office, Expansion Bozeman, Montana MSU, Innovation Campus, Aurora Facility Bozeman, Montana Aspen Crossing at Midtown Bozeman, Montana Jolene's experience in schematic design, design development, and the technical aspects of architecture helps her guide projects through all phases. From design through construction, she contributes expert- level graphic communication and computer graphic skills. Jolene's work helps to generate aesthetic design principles and quality design projects. JOLENE WALKER, AIA Design Lead REGISTRATION Architect: MT SELECT EXPERIENCE Aspen Crossing at Midtown Bozeman, Montana Missoula County Courthouse, Renovation Missoula, Montana Montana State Capitol, Renovation & Restoration Helena, Montana Northwestern Energy, Expansion & Renovation Bozeman, Montana Haynes Administration Office, Renovation Yellowstone National Park. Wyoming KOA Corporate Headquarters Billings, Montana 113 14 | A - EXPERIENCE Emma has a passion for the built environment, from design and construction to historic preservation and adaptive reuse. She is adept at considering the end goals of a project to help guide it to the best possible outcome. Emma places the client in the center of the process, figuring out how to implement their imaginative desires and concrete needs all at once. EMMA SURVIS, AIA, LEED AP Project Manager REGISTRATION Architect: MT, MN, OR; LEED Accredited Professional SELECT EXPERIENCE Gallatin County Farm Bureau Building, Renovation Bozeman, Montana Gallatin County Sheriff's Office, Expansion & Renovation Bozeman, Montana Lake County Office Building Polson, Montana *Yellow Medicine County Justice Center Granite Falls, Minnesota *City of Burnsville Police and City Hall, Remodel Burnsville, Minnesota *Projects completed prior to joining A&E Design Leading projects from design through construction, Jaron demonstrates a diverse knowledge of architectural design. He has a deep understanding of schematic design, design development, and the technical aspects of architecture. His communication skills and computer graphics artistry showcase aesthetic design principles and lead to quality design projects. JARON MICKOLIO, AIA Project Architect REGISTRATION Architect: MT SELECT EXPERIENCE Aspen Crossing at Midtown Bozeman, Montana Northwestern Energy, Expansion & Renovation Bozeman, Montana First Interstate Bank, New Branch Bozeman, Montana MSU, Innovation Campus, Aurora Facility Bozeman, Montana MSU, Norm Asbjornson Hall Bozeman, Montana Saddle Peak Elementary, Renovation Belgrade, Montana 114 A -EXPERIENCE | 15 Walt brings with him over 14 years of experience in the construction industry. With expertise in diverse prior roles — from carpenter to owner’s representative — he blends boots-on-the-ground construction knowledge with financial acumen to support the delivery of comprehensive, integrated, and innovative design solutions for A&E Design’s clients. WALT FRANCIS Construction Project Manager REGISTRATION OSHA 10; OSHA 30 SELECT EXPERIENCE Big Sky School District, Expansion & Renovation Big Sky, Montana MSU, 7th Ave Tunnel Bozeman, Montana West Yellowstone Airport West Yellowstone, Montana *Haynes Administration Office, Renovation Yellowstone National Park. Wyoming *Canyon Lodges Yellowstone National Park. Wyoming *Projects completed prior to joining A&E Design Kip has nearly three decades of experience. During his initial five years, he gained extensive skills in project design, estimation, and commercial construction management while working at U.S. Fire Protection. His current responsibilities include fire sprinkler systems design and HVAC systems design, which includes air side (constant to variable volume) and hydronic (fin tube, reheat, radiant) systems. KIP WEEDA, PE Mechanical Engineer REGISTRATION Professional Engineer: MT, AZ, CO, WY; LEED Accredited Professional SELECT EXPERIENCE Northwestern Energy, Expansion & Renovation Bozeman, Montana Meateater Office Building, Renovation Bozeman, Montana Bozeman Public Safety Center Bozeman, Montana Park County Public Transit Facility Livingston, Montana Bozeman N. Central Block 3.4 Bozeman, Montana Wildwest Land, N. Rouse Property Bozeman, Montana 115 16 | A - EXPERIENCE Patrick has nearly 25 years of experience in the electrical engineering field, including consulting systems design and contract management. Through his various projects, Patrick has participated in all phases of commercial electrical design and construction from design development, cost estimation, drawing, and specification preparation to construction administration. PATRICK KNOLL, PE Electrical Engineer REGISTRATION Professional Engineer: MT, ID, SD, UT, WA, WY SELECT EXPERIENCE Capitol Hill Building A Helena, Montana Butte Justice Center Butte, Montana Salish Kootenai Tribes, New Office Building Pablo, Montana Creamery Building, Renovations Missoula, Montana 1821 Building, 5th Floor Remodel Missoula, Montana Armed Forces Reserve Center Missoula, Montana Jason is a Principal and founder of Hicks Engineering, PC. Since its inception in 2003, Jason has been involved in the structural design of residential and commercial buildings throughout Montana and the United States. He has worked in the capacity as Engineer of Record for architectural, governmental, and private clients with a vast history of successful projects. JASON M. HICKS PE Structural Engineer REGISTRATION Professional Engineer: MT SELECT EXPERIENCE Anderson School, Remodel Bozeman, Montana Easton Office Headquarters Belgrade, Montana Million Air Hangar Renovation & Office Addition Belgrade, Montana Creekside Apartments Bozeman, Montana MAP Brewing Company Bozeman, Montana Summit Aviation North Offices Belgrade, Montana 116 B - FIRM BACKGROUND | 17 A&E Design is one of the largest and longest-standing design firms in the region. Founded as A&E Architects, PC, in 1973, we have been dedicated to providing a fresh and innovative approach to architectural design for 50 years. Continued growth and success led to our subsequent expansion to serve a multitude of industry sectors from several locations across the Northwest. After opening our third office in Bozeman, Montana, in 2014, our firm rebranded as A&E Design. Today, A&E Design is a multidisciplinary design firm with four offices in Montana (Billings, Bozeman, Missoula, and Kalispell). As a collection of innovators, we are united for a single purpose: to create impactful experiences for our clients. We offer architecture, interior design, historic preservation, and graphic design in one, comprehensive package. Together, we are a team of over 90 diversely talented professionals with a strong commitment to client satisfaction, quality design, and improving the world around us. ANNUAL VOLUME OF BUSINESS $25.49 Million FINANCIAL CAPACITIES • $1.8 Million Line-of-Credit with Zero Balance • Consistent Positive Cash Flow • Properly Insured (copies available upon request) MARKETPLACE HEALTH A&E Design is a financially stable firm that has successfully reached annual revenue and growth goals as identified in strategic planning initiatives. We consistently manage a full workload of projects and are sought after due to our ability to complete projects on time and within budget. our history. 117 18 | B - FIRM BACKGROUND our strength. With extensive experience with complex remodels, expansions, and renovations, and an existing relationship with City of Bozeman, A&E Design is equipped to exceed expectations on this project. Our strength lies in our team’s planning and design approach. It is centered around a three-step strategy: listen, collaborate, and apply. This process engenders an atmosphere of teamwork and mutual respect to produce greater value, heightened innovation, and a more enjoyable experience successfully fulfilling project aspirations. There are several components to this approach. First, it is important that all stakeholders understand that a high level of commitment, communication, and transparency are integral cornerstones of a successful project. In addition, it is paramount to incorporate all stakeholders into discussions early so clear, shared expectations of the process, design goals, and project outcomes can be established. One of the facets of our firm is the integration of construction administration into our process. We have a dedicated CA team to provide our clients with the option of full-time representation and a seamless tie between design and construction. This service is one which we feel represents the owner's interests by protecting the design intent and quality of construction. After 50 years in the industry, A&E Design has resolved any weaknesses in our process to provide the best possible service to our clients. However, we continue to learn and explore, understanding that design is an evolving field requiring an open mind and the flexibility to adopt new methods. Listen: We begin by developing strategies to listen and understand the needs, wants, and desires of all stakeholders, utilizing a variety of interactive workshops to identify and create meaningful project goals. Collaborate: We consistently collaborate with all stakeholders through a transparent process to share design progress and ensure alignment between program needs, values, and budget. Apply: We never start or end with a preconceived solution, but rather allow the design to develop naturally. Our approach results in the discovery and application of the best solution by incorporating research and feedback into a unique design plan. 118 C - FIRM WORKLOAD & D - CLAIMS | 19 Our staff of over 90 professionals currently has the capacity to maintain a team dedicated to your project. We are available to start work immediately and will remain completely committed to your project throughout the process. We understand that maintaining a consistent and focused team is of the utmost importance, and we promise to do that. As consultants, we are only as good as the service we provide, and we only take on as much work as we can complete at the highest level. The openings in our current and projected workload allow this project to seamlessly integrate into our schedule. capability to meet time and project budget requirements. A&E Design holds immense experience with projects of similar size and complexity to this scope of work. This means we have the skills to ensure your time and money will be optimized and protected. We provide consistency between the design team, contractor, owner, and owner's representative. Using a collaborative approach, we deliver efficient, successful project outcomes, protecting the design intent and owner's goals during the process. At the beginning of a project, we carefully develop a detailed project schedule with input from the owner and contractor. This results in a realistic schedule where every milestone is identified and external factors are considered. Once approved, we monitor progress to keep all parties compliant. If any aspect of the schedule falls behind, all parties are notified to determine appropriate action. Because of our total staff size, experience, and project management skills, along with strong support from our network of loyal consultants, we are able to consistently meet our project schedules and deadlines. Because the decisions made early in the design process tend to have the greatest impact on project cost, our cost control begins during planning and programming. Our early estimates utilize “square foot” costs and industry multipliers based upon recent projects, our knowledge of current market conditions, and our intuition. As the project evolves from concept through construction documents, our estimates evolve into greater detail with each of our consultants providing cost input for their portions of the work. Our team compiles this data and organizes it into a consistent format for ease of evaluation and comparison with previous estimates. As a result of careful forecasting and diligent cost control, we have a strong record of completing projects on time and within budget. our workload. prior claim. A&E Design holds a strong reputation for ethical business practices and serving our clients fairly and respectfully to achieve long-term relationships and successful projects. In the last five years, we have not experienced litigation issues with a public owner. 119 20 | E - REFERENCES our references. NICK BORZAK Chief Operations Officer Gallatin County 406.209.0044 Nick.Borzak@gallatin.mt.gov DANNY KALUZA Director of Support Services NorthWestern Energy 888.467.2669 Daniel.Kaluza@northwestern.com STEPHANIE RAY Community/Economic Development Director Stillwater County 406.322.8056 sray@stillwatercountymt.gov CASEY GANNON Management Analyst Missoula County 406.258.3399 cgannon@missoulacounty.us ANNE HUGHES Chief Operating Officer Missoula County 406.258.3160 ahughes@missoulacounty.us 120 E - REFERENCES | 21 schedules/ attachment a. 121 22 | APPENDIX comprehensive schedule. JAN FEB MAY JUNE JULY AUGOCT 2023 schematic design 2024 NOV DEC MAR APR 50% SDcost model design development programming phase preliminary program cost-model 100% SDcost model costrecon. 50% DDcost model BOZEMAN CITY HALL 100% DDcost model 122 APPENDIX | 23 SEP OCT NOV building permit bidding DEC JAN FEB MAR APR MAY JUNE JULY 2025 construction documents construction Open TBD* costrecon. 123 24 | APPENDIX2023 OCTOBER A: BUILDING COMMITTEE E: COST REVIEW C: COMMISSION GROUP KEY: Programming Workshop - A2 15wednesday Location: tbd Time: 2 hours • Hopes and Fears Results • Guiding Principles • Facility Opportunities and Constraints • Preliminary Program • Needs vs Wants • COB Planning Standards D: CRAFT SYSTEMS Programming Workshop - A3 06 wednesday Location: tbd Time: 2 hours • Programming | Planning Workshop • Human Resources Program • Finance Program • Economic Development Program • City Manager Program • TBD Program • Program | Planning Diagrams • Space Requirements Programming Wrap-up - A4 03wednesday Location: tbd Time: 2 hours • Program | Planning Refinement • Guiding Principle | Goals Review • Building Organization Review • Safety | Security Department Workshop - B1 15wednesday Location: tbd Time: 6 hours • Department Planning Workshops B: DEPARTMENT WORKSHOPS 26 Facility Assessment Update - F2 06 wednesday Location: tbd Time: 1 hour • Collect any outstanding data | info Programming Kick-Off - A1 25wednesday Location: tbd Time: 2 hours • Project Schedule • Programming Introduction • Goals Workshop • Group Exercise: Hopes & Fears • Building Assessment Reviews • Building Deficiencies • Systems Analysis • Existing Program | Utilization • Existing Facility Program Review Facility Assessment - F1 25 wednesday Location: tbd Time: 4 hours • Building Deficiencies • Systems Analysis • Existing Program Development • Staff Reviews DECEMBER Commission Presentation - C1 TBDas-needed Location: tbd Time: tbd • Presentation | Q&A F: FACILITY ASSESSMENT NOVEMBER JANUARY Preliminary Cost Review - E1 Location: tbd Time: 1 hour • Preliminary Cost Analysis 20wednesday 124 APPENDIX | 25 MARCH 2024JANUARY (cont.) Cost Review - E2 Location: tbd Time: 1 hour • Program Loaded Cost Analysis 24 FEBRUARY Schematic Design Kickoff - A5 24 wednesday Location: tbd Time: 3 hours • Project Schedule • Goals | Program Review • Building and Site Review • “Blink” Exercise • Staff Survey Analysis • Case Studies • Space Adjacency Workshop wednesday Schematic Design - A2 14 wednesday Location: tbd Time: 3 hours • Program Updates | Review • Case Study Review | Thoughts • Space Adjacency Update Workshop • Building Organization Workshop • Scenario Mapping | User Experience Schematic Design - A3 06 wednesday Location: tbd Time: 2 hours • Floor Plan Diagrams • Space Adjacency Review • 3D Model | Virtual Reality Interior Design Concepts • Material Review Schematic Design - A4 27wednesday Location: tbd Time: 2 hours • Updated Floor Plan Diagrams • Updated Building Massing Interior Design Concepts • Updated Cost Review Schematic Design - A5 17 tuesday Location: tbd Time: 2 hours • Final Schematic Design Presentation • Floor Plan Diagrams • Scenario Mapping | User Experience • Building Massing Interior Design Concepts • Final Renderings APRIL Craft (Systems) Workshop - C1 14 tuesday Location: Virtual meeting Time: 2 hours • Review Facilities Systems and Recommendations / Goals Craft (Systems) Workshop - C2 06 tuesday Location: tbd Time: 2 hours • Building Systems Review • Sustainable Strategies Department Workshop - B2 28wednesday Location: tbd Time: 6 hours • Department Planning Workshops Cost Review - E3 Location: tbd Time: 1 hour • 50% SD Cost Analysis 20wednesday 125 26 | APPENDIX Attachment A NONDISCRIMINATION AND EQUAL PAY AFFIRMATION ____________________________________(name of entity submitting) hereby affirms it will not discriminate on the basis of race, color, religion, creed, sex, age, marital status, national origin, or because of actual or perceived sexual orientation, gender identity or disability and acknowledges and understands the eventual contract will contain a provision prohibiting discrimination as described above and this prohibition on discrimination shall apply to the hiring and treatments or proposer’s employees and to all subcontracts. In addition, ____________________________________(name of entity submitting) hereby affirms it will abide by the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act), and has visited the State of Montana Equal Pay for Equal Work “best practices” website, https://equalpay.mt.gov/BestPractices/Employers, or equivalent “best practices publication and has read the material. ______________________________________ Name and title of person authorized to sign on behalf of submitter Brad Doll, Principal A&E Design A&E Design 126 APPENDIX | 27 thank you. 127 What can we help you create? 515 W Aspen St., Suite 200A Bozeman, MT 59715 406.451.7310 www.ae.design 128 Memorandum REPORT TO:City Commission FROM:Jamie Saitta - Recreation Manager Max Ziegler - Facilities Project Coordinator SUBJECT:Authorize City Manager to Sign a Construction Agreement with Northern Hardwood Co., Inc. for Story Mill Community Center Gym Flooring Installation MEETING DATE:October 24, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign a Construction Agreement with Norther Hardwood Co., Inc. for Story Mill Community Center Gym Flooring Installation STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:Capital Improvement Project GF300 consists of removing the existing flooring in the Story Mill Community Center Gym and installing hardwood gym flooring. This contract will include the removal of the existing flooring which has reached the end of its serviceable life, installation of an underlayment system and maple hardwood flooring, sport court striping, wood sealing and finishing. This contract is inclusive of all labor, material, and other associated costs with this CIP project. Potential additional costs may be incurred if moisture mitigation should be deemed necessary or leveling of concrete to meet manufacturers specifications is required. The contractor and flooring product was selected via Sourcewell, meeting the requirements for competitive procurement process. UNRESOLVED ISSUES:None at this time. ALTERNATIVES:As suggested by City Commission. FISCAL EFFECTS:This contract will incur a lump sum cost of $162,491.00. Attachments: Construction Agreement - Northern Hardwood Co. - Story Mill Gym Flooring.pdf Report compiled on: October 12, 2023 129 130 Construction Agreement for Story Mill Community Center Gym Floor Replacement FY2020-2021 Page 1 of 16 CONSTRUCTION AGREEMENT This Construction Agreement is made and entered into this _____ day of ____________, 202__ (“Effective Date”), by and between the CITY OF BOZEMAN, MONTANA, a self- governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City,” and, Northern Hardwood Co., Inc., PO Box 499, Deer Park, WA 99006-0499, hereinafter referred to as “Contractor.” The City and Contractor may be referred to individually as “Party” and collectively as “Parties.” In consideration of the covenants, agreements, representations, and warranties contained herein, the parties agree as follows: 1. Work to be Performed: a. A description of the work to be performed to replace the gym flooring at the Story Mill Community Center (the “Construction Project”) and Contractor’s duties is set forth in the Scope of Services attached hereto as Exhibit A and by this reference made a part hereof, and in the drawings, plans, and specifications provided by the City, which are included in the Scope of Services attached hereto as Exhibit A. b. Prior to the commencement of any work on the Construction Project, Contractor’s representatives and City’s representatives shall hold a meeting to establish a working understanding among the parties as to the scope of the Construction Project and duties of the Contractor. At this meeting, Contractor and City shall resolve any outstanding issues related to the plans, designs, drawings, and specifications. If the parties are unable to resolve these issues and the City fails, refuses, or is unable to approve the same, no work shall commence on the Construction Project until such issues are resolved and the City approves the related plans, designs, drawings, and specifications. c. Except as provided elsewhere in this Agreement, Contractor shall furnish all the labor, materials, equipment, tools, and services necessary to perform and complete the Construction Project. d. During work on the Construction Project, and as part of the final completion of the Construction Project, Contractor shall clean up the Project site, including the removal and satisfactory disposal of all waste, garbage, excess materials, and equipment, and the performance of any other work necessary to restore the site to at least as good order and condition as at the commencement of the Construction Project. 131 Construction Agreement for Story Mill Community Center Gym Floor Replacement FY2020-2021 Page 2 of 16 2. City-Supplied Materials: The City may supply materials from time to time in furtherance of the Construction Project. Such materials will be noted as an addendum to this Agreement. 3. Time of Performance: Contractor shall begin the Construction Project after receiving a Notice to Proceed from City and shall complete the Construction Project no later than June 24th, 2024 Time is of the essence of completion of all work and each phase of the Construction Project. 4. Liquidated Damages: If the Construction Project is not completed within the time provided by this Agreement, the City may deduct for each day the Construction Project remains uncompleted the sum of Two Hundred Dollars ($200.00) from the compensation hereinafter specified and retain that sum as payment for liquidated damages sustained by reason of the Contractor’s failure to complete the Construction Project on time. 5. Compensation: a. City shall pay to Contractor, and Contractor shall accept as full payment for the performance of this Agreement and the Construction Project, the amount of One Hundred Sixty-Two Thousand Four Hundred Ninety-One Dollars and Zero Cents ($162,491.00). b. If work not included within the original Construction Documents is requested by City, such additional work and the related compensation shall be agreed to in writing by both parties prior to commencement of the additional work (“Change Order”). c. City shall retain five percent (5%) of the total amount of compensation to be paid to the Contractor to ensure compliance with the terms and conditions of this Agreement and the timely completion of the Construction Project and any and all “punch list” items (“Retainage Amount”). The Retainage Amount shall be paid to Contractor thirty (30) days after the City’s final acceptance of the portion of work for which a separate price is stated in the specifications for the Construction Project. e. Upon acceptance of final payment and for other good and valuable consideration, Contractor shall and hereby does release and forever discharge City, its officers, agents, and employees of and from any and all claims, demands, actions, causes of action, obligations, and liabilities of every kind and character whatsoever, in law and in equity, whether now known or in the future discovered, arising from or related to this Agreement or the Construction Project that Contractor may have or assert against City, its officers, agents, and employees. 6. Inspection and Testing: a. City has the right to inspect and test any and all work performed by Contractor on the Construction Project. Contractor shall allow City and its agents access to the Construction Project at all times and shall provide every reasonable facility for the 132 Construction Agreement for Story Mill Community Center Gym Floor Replacement FY2020-2021 Page 3 of 16 purpose of such inspection and testing, including temporarily discontinuing portions of the work or uncovering or taking down portions of the finished work. Any inspection and testing performed by the City and its agents is for the sole benefit of the City and shall not relieve the Contractor of its duty, responsibility, and obligation to ensure that the work strictly complies with the Agreement terms and conditions and all applicable laws and building and safety codes. City’s inspection and testing shall not be deemed or considered acceptance by the City of any portion of the Construction Project. City’s inspection and testing shall not serve to nullify, amend, or waive any warranties provided by the Contractor under this Agreement. b. Contractor shall, without charge, replace any material or correct any work found by the City or its agents to be defective or otherwise not in compliance with the terms and conditions of this Agreement. In the event Contractor fails to replace or correct any defective work or materials after reasonable written notice by the City to do so, the City may take such corrective action, either with its own materials and employees or by retaining any third party to do so, and deduct the cost and expense of such corrective action from the Contractor’s compensation. 7. Partial Utilization of Construction Project: City shall have the right to use or occupy any portion of the Construction Project that City and Contractor mutually agree is substantially completed and constitutes a separately functioning and usable part of the Construction Project for its intended purpose without significant interference with Contractor’s performance of the remaining portions of the Construction Project. In the event City takes possession of any portion of the Construction Project, such possession shall not be deemed an acceptance of the Construction Project, in whole or in part. City’s use of any portion of the Construction Project shall not be grounds for extensions of any construction deadlines or a change in the Contractor’s compensation. Contractor’s warranties shall run from the completion of the total Construction Project and not from the date the City may take possession of selected portions of the Construction Project. 8. Related Work at the Site: Nothing in this Agreement shall prevent or preclude City, through its own employees or by contract with any third party, from performing other work related to the Construction Project at the construction site; provided such related work is not otherwise addressed in this Agreement and provided such related work does not otherwise interfere with Contractor’s performance of this Agreement or the completion of the Construction Project. Contractor shall afford any City employee, agent or representative, or any third party under contract with the City to perform the related work, proper and safe access to the construction site, a reasonable opportunity for the introduction and storage of materials and equipment, the opportunity to perform the related work, and shall properly coordinate the Contractor’s work on the Construction Project with the related work. 9. Contractor’s Warranties: Contractor represents and warrants as follows: a. Unless otherwise specified by the terms of this Agreement, all materials and equipment used by Contractor on the Construction Project shall be new and where not otherwise specified, of the most suitable grade for their intended uses. 133 Construction Agreement for Story Mill Community Center Gym Floor Replacement FY2020-2021 Page 4 of 16 b. All workmanship and materials shall be of a kind and nature acceptable to the City. c. All equipment, materials, and labor provided to, on, or for the Construction Project must be free of defects and nonconformities in design, materials, and workmanship for a minimum period beginning with the commencement of the work on the Construction Project and ending one (1) year from the final completion and acceptance by the City of the Construction Project, regardless of whether such equipment, materials, or labor were supplied directly by Contractor or indirectly by Contractor’s subcontractors or suppliers. Other express warranties on materials that provide for a warranty period longer than one year apply for the period of that express warranty and are not reduced by this provision. Upon receipt of City’s written notice of a defective or nonconforming condition during the warranty period, Contractor shall take all actions, including redesign and replacement, to correct the defective or nonconforming condition within a time frame acceptable to the City and at no additional cost to the City. Contractor shall also, at its sole cost, perform any tests required by City to verify that such defective or nonconforming condition has been corrected. Contractor warrants the corrective action taken against defective and nonconforming conditions for a period of an additional one (1) year from the date of City’s acceptance of the corrective action. d. Contractor and its sureties are liable for the satisfaction and full performance of all warranties. e. Contractor shall give its personal attention to the faithful prosecution of the completion of the Construction Project and Contractor, or its duly authorized representative assigned to serve as the Construction Project Manager, shall be personally present at the site of the Construction Project during working hours for the term of this Agreement until the completion of the Construction Project. f. Contractor shall have a complete, accurate, and up-to-date set of construction plans, drawings, and specifications on site at all times. g. Contractor has examined all available records and made field examinations of the site of the Construction Project. Contractor has knowledge of the field conditions to be encountered during the Construction Project. Contractor has knowledge of the types and character of equipment necessary for the work, the types of materials needed and the sources of such materials, and the condition of the local labor market. h. Contractor is responsible for the safety of the work and shall maintain all lights, guards, signs, temporary passages, or other protections necessary for that purpose at all times. i. All work must be performed at Contractor’s risk, and Contractor shall promptly repair or replace all damage and loss at its sole cost and expense regardless of the reason or cause of the damage or loss; provided, however, should the damage or loss be 134 Construction Agreement for Story Mill Community Center Gym Floor Replacement FY2020-2021 Page 5 of 16 caused by an intentional or negligent act of the City, the risk of such loss shall be placed on the City. j. Contractor is responsible for any loss or damage to materials, tools, or other articles used or held for use in the completion of performance of the Construction Project. k. Contractor’s performance must be without damage or disruption to any other work or property of the City or of others and without interference with the operation of existing machinery or equipment. l. Title to all work, materials, and equipment covered by any payment of Contractor’s compensation by City, whether directly incorporated into the Construction Project or not, passes to City at the time of payment, free and clear of all liens and encumbrances. 10. Delays and Extensions of Time: If Contractor’s performance of this Agreement is prevented or delayed by any unforeseen cause beyond the control of the Contractor, including acts or omissions of the City, Contractor shall, within ten (10) days of the commencement of any such delay, give the City written notice thereof. Further, Contractor shall, within ten (10) days of the termination of such delay, give the City written notice of the total actual duration of the delay. If the City is provided with these required notices and if the City determines that the cause of the delay was not foreseeable, was beyond the control of the Contractor, and was not a result of the fault or negligence of the Contractor, then the City will determine the total duration of the delay and extend the time for performance of the Agreement accordingly. Unless the delay is caused by the intentional interference of the City with the Contractor’s performance, Contractor shall make no claim for damages or any other claim other than for an extension of time as herein provided by reason of any delays. 11. Suspension: a. The City may, by written notice to the Contractor and at its convenience for any reason, suspend the performance of all or any portion of the work to be performed on the Construction Project (“Notice of Suspension”). The Notice of Suspension shall set forth the time of suspension, if then known to the City. During the period of suspension, Contractor shall use its best efforts to minimize costs associated with the suspension. b. Upon Contractor’s receipt of any Notice of Suspension, unless the notice requires otherwise, Contractor shall: (1) immediately discontinue work on the date and to the extent specified in the Notice of Suspension; (2) place no further orders or subcontracts for materials, services, or equipment; (3) promptly make every reasonable effort to obtain suspension upon terms satisfactory to City of all orders, subcontracts, and rental agreements to the extent that they relate to the performance of the work suspended; and (4) continue to protect and maintain the Project, including those portions on which work has been suspended. 135 Construction Agreement for Story Mill Community Center Gym Floor Replacement FY2020-2021 Page 6 of 16 c. As compensation for the suspended work, Contractor will be reimbursed for the following costs, reasonably incurred, without duplication of any item, and to the extent that such costs directly resulted from the suspension: (1) a standby charge paid during the period of suspension which will be sufficient to compensate Contractor for keeping, to the extent required in the Notice of Suspension, Contractor’s organization and equipment committed to the Project in standby status; (2) all reasonably incurred costs for the demobilization of Contractor’s and subcontractor’s crews and equipment; (3) an equitable amount to reimburse Contractor for the cost to protect and maintain the Project during the period of suspension; and (4) an equitable adjustment in the cost of performing the remaining portion of the work post-suspension if, as a direct result of the suspension, the cost to Contractor of subsequently performing the remaining work on the Construction Project has increased or decreased. d. Upon receipt of written notice by the City to resume the suspended work (“Notice to Resume Work”), Contractor shall immediately resume performance of the suspended work as to the extent required in the Notice to Resume Work. Any claim by Contractor for time or compensation described in Section 11(c) shall be made within fifteen (15) days after receipt of the Notice to Resume Work and Contractor shall submit a revised Construction Schedule for the City’s review and approval. Contractor’s failure to timely make such a claim shall result in a waiver of the claim. e. No compensation described in Section 11(c) shall be paid and no extension of time to complete the Construction Project shall be granted if the suspension results from Contractor’s non-compliance with or breach of the terms or requirements of this Agreement. 12. Termination for Contractor’s Fault: a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, the City may, by written notice, terminate this Agreement and the Contractor’s right to proceed with all or any part of the Construction Project (“Termination Notice Due to Contractor’s Fault”). The City may then take over the Construction Project and complete it, either with its own resources or by re-letting the contract to any other third party, and may immediately take possession of and use such materials, appliances, tools, and equipment as may be on the site and which may be necessary for the completion of the Construction Project. b. In the event of a termination pursuant to this Section 12, Contractor shall be entitled to payment only for those services Contractor actually rendered. In the case of a lump sum or unit price contract, Contractor shall not be entitled to any further payment until the Construction Project has been completed. Upon completion of the Construction Project, if the unpaid balance of the Contractor’s compensation exceeds the cost to the City of completing the work, including all costs paid to any subcontractors or third parties retained by the City to complete the Construction Project and all administrative costs resulting from the termination (“City’s Cost for Completion”), such excess shall be paid to 136 Construction Agreement for Story Mill Community Center Gym Floor Replacement FY2020-2021 Page 7 of 16 the Contractor. If the City’s Cost for Completion exceeds the unpaid balance of the Contractor’s compensation, then Contractor and its sureties shall be liable for and shall pay the difference, plus interest at the rate applicable to court judgments, to the City. c. Any termination provided for by this Section 12 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. d. In the event of termination under this Section 12, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 13. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease work on the Construction Project, the City may terminate this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease work on the Construction Project, discontinue placing orders for materials, supplies, and equipment for the Construction Project, and make every reasonable effort to cancel all existing orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as may be necessary to preserve, protect, and maintain work already completed, in progress, or in transit to the construction site. c. In the event of a termination pursuant to this Section 13, Contractor is entitled to payment only for those services Contractor actually rendered and materials actually purchased or which Contractor has made obligations to purchase on or before the receipt of the Notice of Termination for City’s Convenience, and reasonably incurred costs for demobilization of Contractor’s and any subcontractor’s crews. It is agreed that any materials that City is obligated to purchase from Contractor will remain the City’s sole property. d. The compensation described in Section 13(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 137 Construction Agreement for Story Mill Community Center Gym Floor Replacement FY2020-2021 Page 8 of 16 14. Limitation on Contractor’s Damages; Time for Asserting Claim: a. In the event of a claim for damages by Contractor under this Agreement, Contractor’s damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. b. In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within ten (10) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 15. Representatives and Notices: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be Max Ziegler, Facilities Project Coordinator, or such other individual as City shall designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission shall be directed to the City’s Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, Contractor may direct its communication or submission to other designated City personnel or agents and may receive approvals or authorization from such persons. b. Contractor’s Representative: The Contractor’s Representative for the purpose of this Agreement shall be Diana Kurle, Office Manager, or such other individual as Contractor shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed to Contractor’s Representative; provided, however, that in exigent circumstances when Contractor’s Representative is not available, City may direct its direction or communication to other designated Contractor personnel or agents. c. Notices: All notices required by this Agreement shall be in writing and shall be provided to the Representatives named in this Section. Notices shall be deemed given when delivered, if delivered by courier to Party’s address shown above during normal business hours of the recipient; or when sent, if sent by email or fax (with a successful transmission report) to the email address or fax number provided by the Party’s Representative; or on the fifth business day following mailing, if mailed by ordinary mail to the address shown above, postage prepaid. 138 Construction Agreement for Story Mill Community Center Gym Floor Replacement FY2020-2021 Page 9 of 16 16. Locating Underground Facilities: Contractor shall be responsible for obtaining and determining the location of any underground facilities, including but not limited to, the location of any pipelines or utility supply, delivery, or service lines in accordance with the provisions of §69-4-501, et seq., Montana Code Annotated (MCA). Contractor shall make every effort to avoid damage to underground facilities and shall be solely responsible for any damage that may occur. If City personnel assume responsibility for locating any underground facilities, this fact shall be noted in writing prior to commencement of such location work. 17. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, pay all fees and charges in connection therewith, and perform all surveys and locations necessary for the timely completion of the Construction Project. 18. Ownership of Documents; Indemnification: All plans, designs, drawings, specifications, documents, sample results and data, in whatever medium or format, originated or prepared by or for Contractor in contemplation of, or in the course of, or as a result of this Agreement or work on the Construction Project, shall be promptly furnished to the City (“City Documents and Information”). All City Documents and Information shall be the exclusive property of the City and shall be deemed to be works-for-hire. Contractor hereby assigns all right, title, and interest in and to the City Documents and Information, including but not limited to, all copyright and patent rights in and to the City Documents and Information. Neither party grants to the other any express or implied licenses under any patents, copyrights, trademarks, or other intellectual property rights, except to the extent necessary to complete its obligations to the other under this Agreement. 19. Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non- discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 20. Nondiscrimination and Equal Pay: The Contractor agrees that all hiring by Contractor of persons performing this Agreement shall be on the basis of merit and qualifications. The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The 139 Construction Agreement for Story Mill Community Center Gym Floor Replacement FY2020-2021 Page 10 of 16 Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. Contractor represents it is, and for the term of this Agreement will be, in compliance with the requirements of the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act). Contractor must report to the City any violations of the Montana Equal Pay Act that Contractor has been found guilty of within 60 days of such finding for violations occurring during the term of this Agreement. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 21. Intoxicants; DOT Drug and Alcohol Regulations: Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, upon the site of the Construction Project. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing its employees and agents in safe work practices. 22. Labor Relations: a. In the event that, during the term of this Agreement and throughout the course of Contractor’s performance of the Construction Project, any labor problems or disputes of any type arise or materialize which in turn cause any work on the Construction Project to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take to resume work on the Construction Project shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit the work on the Construction Project to resume and be completed within the time frames set forth in the Construction Schedule at no additional cost to City. b. Contractor shall indemnify, defend, and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes. 140 Construction Agreement for Story Mill Community Center Gym Floor Replacement FY2020-2021 Page 11 of 16 23. Subcontractors: a. Contractor may employ subcontractors for any work on the Construction Project. Contractor shall provide City with a list of all subcontractors employed. b. Contractor remains fully responsible for the acts and omissions of any subcontractor, just as Contractor is for its own acts and omissions, and Contractor shall remain fully responsible and liable for the timely completion of the Construction Project. c. Contractor is solely liable for any and all payments to subcontractors. Contractor shall hold all payments received from the City in trust for the benefit of subcontractors, and all such payments shall be used to satisfy obligations of the Construction Project before being used for any other purpose. Contractor shall make any payments due to any subcontractor within seven (7) days of Contractor’s receipt of payment, including a proportional part of the retainage Contractor has received from the City. In the event of a dispute regarding any subcontractor’s invoice, Contractor shall promptly pay the undisputed amount to the subcontractor and notify the subcontractor in writing of the amount in dispute and the reasons for the dispute. Any withholding of payment must comply with the requirements of §28-2-2103, MCA. In the event Contractor is unwilling or unable to make timely and proper payment to any subcontractor, City may elect to withhold any payment otherwise due to Contractor and upon seven (7) days’ written notice to Contractor, may pay subcontractor by direct or joint payment. 24. Indebtedness and Liens: Before City may make any final payment to Contractor, Contractor shall furnish City with satisfactory proof that there are no outstanding debts or liens in connection with the Construction Project. If the Contractor allows any indebtedness to accrue to subcontractors or others during the progress of the work, and fails to pay or discharge the same within five (5) days after demand, then City may either withhold any money due to Contractor until such indebtedness is paid or apply the same towards the discharge of the indebtedness. If any lien or claim is filed or made by any subcontractor, material supplier, or any other person, the Contractor shall immediately notify the City and shall cause the same to be discharged of record within thirty (30) days after its filing. 25. Hazard Communication: Contractor shall comply with all hazard communication requirements dictated by the Environmental Protection Agency, the Montana Department of Agriculture, OSHA, Hazard Communications Standard, 29 CFR 1910.1200, and applicable City ordinances. Contractor shall supply a chemical list, the associated material safety data sheets (MSDS), and other pertinent health exposure data for chemicals that the Contractor’s, subcontractor’s or the City’s employees may be exposed to while working on City property during the course of the Construction Project. One copy of this documentation must be delivered to City to the attention of the City’s Representative. This documentation must be delivered before work involving these chemicals may commence. 26. Accounts and Records: During the term of this Agreement and for two (2) years following the City’s final acceptance of the Construction Project, Contractor shall maintain accounts and records related to the Construction Project. Upon reasonable notice, City shall have 141 Construction Agreement for Story Mill Community Center Gym Floor Replacement FY2020-2021 Page 12 of 16 the right to inspect all such accounts and records, including but not limited to, Contractor’s records, books, correspondence, instructions, drawings, specifications, field and site notes, receipts, invoices, bills, contracts, or other documents relating to the Construction Project. 27. Indemnification; Insurance; Bonds: a. Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of and expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; or (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents. b. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the indemnitee(s) which would otherwise exist as to such indemnitee(s). c. Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. d. Should the City be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor’s applicable insurance policies required below the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. e. In the event of an action filed against the City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. f. Contractor also waives any and all claims and recourse against the City, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for [City’s] own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. 142 Construction Agreement for Story Mill Community Center Gym Floor Replacement FY2020-2021 Page 13 of 16 g. These obligations shall survive termination of this Agreement and the services performed hereunder. h. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in subsection (a) of this Section. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City. Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as shown below:  Workers’ Compensation – not less than statutory limits;  Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate;  Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate;  Products and Completed Operations – $1,000,000;  Automobile Liability - $1,000,000 property damage/bodily injury; $2,000,000 annual aggregate (all owned, hired, non-owned vehicles);  Builder’s Risk/Property Insurance at least as broad as that provided by the ISO special causes of loss form (CP10 30) naming at a minimum the City in an amount equal to greater of Contractor’s compensation or full replacement value of the work (covering at a minimum all work, buildings, materials and equipment, whether on site or in transit, loss due to fire, lightening, theft, vandalism, malicious mischief, earthquake, collapse, debris removal, demolition occasioned by enforcement of laws, water damage, flood if site within a flood plain, repair or replacement costs, testing and start-up costs) on an all risk coverage basis. This insurance must include waivers of subrogation between the City and Contractor to the extent that damage to the Construction Project or City Hall is covered by other insurance;  Owner’s and Contractor’s Protective Liability: one policy designating the City (including its agents, representatives, employees, and officers) as the insured and another independent policy designated the City’s Representative (including its consultants, consultants, agents and employees) as the insured on the declarations with both policies covering: (i) operations performed by the Contractor under this Agreement for the City; and (ii) the City’s and City’s Representatives acts or omissions, including negligent acts, in connection with its general supervision of the work of the Contractor’s and its subcontractors - $1,000,000 per occurrence; $2,000,000 aggregate;  Contractual Liability Insurance (covering the Contractor’s indemnity obligations described in this Agreement) - $1,000,000 per occurrence $2,000,000 aggregate 143 Construction Agreement for Story Mill Community Center Gym Floor Replacement FY2020-2021 Page 14 of 16 The amounts of insurance provided shall be exclusive of defense costs. The City of Bozeman shall be endorsed as an additional or named insured on a primary non- contributory basis on both the Commercial General and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non-renewal. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. i. The Contractor shall furnish a Performance Bond and a Payment Bond in favor of the City each in an amount equal to one-hundred Percent (100%) of the Agreement amount. 28. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. Contractor understands that all contractors or subcontractors working on a publicly funded project are required to pay or have withheld from earnings a license fee of one percent (1%) of the gross contract price if the gross contract price is Eighty Thousand Dollars ($80,000) or more. This license fee is paid to the Montana Department of Revenue. 29. Dispute Resolution: a. Any claim, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. b. If the parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute shall be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 30. Survival: Contractor’s indemnification and warranty obligations shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 31. Headings: The headings used in this Agreement are for convenience only and are not be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 32. Waiver: A waiver by City of any default or breach by Contractor of any covenants, terms, or conditions of this Agreement does not limit City’s right to enforce such covenants, terms, or conditions or to pursue City’s rights in the event of any subsequent default or breach. 144 Construction Agreement for Story Mill Community Center Gym Floor Replacement FY2020-2021 Page 15 of 16 33. Attorney’s Fees and Costs: In the event it becomes necessary for either Party to retain an attorney to enforce any of the terms or conditions of this Agreement or to give any notice required herein, then the prevailing Party or the Party giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel including the City Attorney’s Office staff. 34. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 35. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 36. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 37. Amendments: This Agreement may not be modified, amended, or changed in any respect except by a written document signed by all parties. 38. No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or enforced by a third party. 38. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 39. Assignment: Contractor may not assign this Agreement in whole or in part without the prior written consent of the City. No assignment will relieve Contractor of its responsibility for the performance of the Agreement and the completion of the Construction Project. Contractor may not assign to any third party other than Contractor’s subcontractors on the Construction Project, the right to receive monies due from City without the prior written consent of City. 40. Authority: Each party represents that it has full power and authority to enter into and perform this Agreement and the person signing this Agreement on behalf of each party has been properly authorized and empowered to sign this Agreement. 41. Independent Contractor: The parties agree and acknowledge that in the performance of this Agreement and the completion of the Construction Project, Contractor shall render services as an independent contractor and not as the agent, representative, subcontractor, or employee of the City. The parties further agree that all individuals and companies retained by Contractor at all times will be considered the agents, employees, or independent contractors of Contractor and at no time will they be the employees, agents, or representatives of the City. 42. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained therein or made a part thereof by reference, are not binding upon the parties. There are no understandings between the parties 145 Construction Agreement for Story Mill Community Center Gym Floor Replacement FY2020-2021 Page 16 of 16 other than as set forth in this Agreement. All communications, either verbal or written, made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 43. Consent to Electronic Signatures: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** IN WITNESS WHEREOF, Contractor and City have caused this Agreement to be executed, effective on the date written above, and intend to be legally bound thereby. CITY OF BOZEMAN, MONTANA CONTRACTOR By: _______________________________ By: Jeff Mihelich, City Manager Print Name: Title: APPROVED AS TO FORM: By: _______________________________ Greg Sullivan, City Attorney 146 EXHIBIT A 147 PROPOSAL NORTHERN HARDWOOD CO., INC. Wholesalers-Contractors PO Box 499, Deer Park WA 99006-0499 (509) 276.5797 phone, (509) 276.9283 fax (406) 582-2291 Phone Story Mill Community Center Job Name Jamie Saitta Attn: Open Source Item 2,947.00$ 4,330.00$ 2 coats oil modified seal 2 coats oil modified finish Basic game lines painted for basketball, volleyball and pickleball 3" x 4" Vent Cove Base at the perimeter Aluminum thresholds at interior doorways We will need an original vector file (.ai, .eps or .svg format) for the logo and lettering. Payment and Performance Bonds 1,649.00$ jsaitta@bozeman.net September 19, 2023 Date E-Mail/Fax Parks and Recreation Department Proposal Submitted to 600 Bridger Dr Street Bozeman MT59715 Remove existing Sport Court Clip together tiles (CSCI 145) City, State & Zip Estimator Cody Youngblood Northern Hardwood will remove 7,093sf of existing clip together tiles and replace with the Connor Focus System for: Connor Sport Court Sourcewell ID #031022-GER Product #CSCI 102 and 145City of Bozeman Sourcewell ID #184564 25/32" x 2-1/4" 2nd & Btr Maple over the Connor Focus System 153,565.00$ Quote includes all labor and material for a complete installation with: Contractor License: WA NORTHHC137NL, ID 11043-B-4, MT 3238, OR 78600 148 PROPOSAL NORTHERN HARDWOOD CO., INC. Wholesalers-Contractors PO Box 499, Deer Park WA 99006-0499 (509) 276.5797 phone, (509) 276.9283 fax (406) 582-2291 Phone Story Mill Community Center Job Name Jamie Saitta Attn: jsaitta@bozeman.net September 19, 2023 Date E-Mail/Fax Parks and Recreation Department Proposal Submitted to 600 Bridger Dr Street Bozeman MT59715 City, State & Zip Estimator Cody Youngblood Accepted by:Date: One Hundred Sixty-Two Thousand Four Hundred Ninety-one and no/100 * * * * * * Dollars Payment to be made as follows: 50% on delivery of Material, Balance on Completion Quote does not include: We propose hereby to furnish material and labor, complete as outlined herein for the sum of: Leveling of the concrete to achieve manufacturers required +/- 1/8" in a 10' radius Moisture Mitigation should it be necessary Quote valid for 30 days Bleacher Adjustment, removal or reinstallation Disposal of exising flooring ( we will place existing tiles in owners dumpster Contractor License: WA NORTHHC137NL, ID 11043-B-4, MT 3238, OR 78600 149 PROPOSAL NORTHERN HARDWOOD CO., INC. Wholesalers-Contractors PO Box 499, Deer Park WA 99006-0499 (509) 276.5797 phone, (509) 276.9283 fax NORTHERN HARDWOOD CO INC PROPOSAL TO: PAGE 2 DATE: Owner Parks and Recreation Department NOTICE TO CUSTOMER. In the event a dispute arises between the parties with respect to any of terms and conditions of this Agreement, it is agreed that the parties will first, as a prerequisite to bringing any legal actions, agreed to meet and attempt in good faith to enforce any of the provisions of the Agreement, it is agreed that the prevailing party shall be entitled to recover its court costs and reasonable attorney's fees. It is further stipulated and agreed that the venue of any such proceeding shall be in Spokane County, Washington unless venue is only proper in the county where the work was performed. WARRANTY: All materials guaranteed to be as specified. All work to be completed in a workmanlike manner according to standard practices. MODIFICATIONS. Any modification to this Agreement or additional obligation assumed by either party in connection with the Agreement shall be binding only if evidenced in writing and signed by each party or an authorized representative of each party. CHOICE OF LAW. It is agreed that this Agreement shall be governed by, construed and enforced in accordance with the laws of the State of Washington Montana. REASONABLE ATTORNEY FEES. In the event of litigation or arbitration to enforce any of the terms of this Agreement, the prevailing party in such proceeding shall be entitled to recover reasonable attorney's fees and costs. ACCEPTANCE OF PROPOSAL. The above prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Payment will be made as outlined above. THE FOLLOWING ADDITIONAL TERMS of this Proposal are binding on both parties: September 19, 2023 Date: Date: Northern Hardwood Co Inc Contractor Parks and Recreation Department Contractor License: WA NORTHHC137NL, ID 11043-B-4, MT 3238, OR 78600 150 Memorandum REPORT TO:City Commission FROM:Community Engagement Coordinator, Dani Hess SUBJECT:Authorize the City Manager to Sign an Amendment to Professional Services Agreement with Morten Group, LLC for the completion of the Belonging in Bozeman Equity & Inclusion Plan MEETING DATE:October 24, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to Sign an Amendment to Professional Services Agreement with Morten Group, LLC for the completion of the Belonging in Bozeman Equity & Inclusion Plan STRATEGIC PLAN:3.3 Friendly Community: Ensure Bozeman continues to welcome diversity through policies and public awareness. BACKGROUND:Additional services provided by Morten Group LLC are needed to complete the Belonging in Bozeman Equity & Inclusion Plan. Services and fees are outlined in the Amendment to Professional Services Agreement attached. UNRESOLVED ISSUES:None at this time ALTERNATIVES:As directed by City Commission FISCAL EFFECTS:$20,000 is included in the FY24 budget for this city commission priority. Attachments: Amendment to PSA with Morten Group LLC for the completion of the Belonging in Bozeman Equity & Inclusion Plan.pdf Report compiled on: October 10, 2023 151 Amendment to Professional Services Agreement Dated October 25, 2022 Assigned to Morten Group, LLC Page 1 of 2 AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT DATED OCTOBER 25, 2022 ASSIGNED TO MORTEN GROUP, LLC THIS AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT FOR consulting services dated October 25th, 2022 (the “Agreement”) is made and entered into this 24th day of October, 2023, by and between the CITY OF BOZEMAN, MONTANA, a self governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City,” and Morten Group, LLC., PO Box 408974, Chicago, IL 60640, hereinafter referred to as “Contractor.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree to amend the Agreement as follows: 1. Updated Scope of Work. The Attached Scope of Work and Fee schedule will govern the relationship between the City and the Contractor for the duration of the development and completion of the Belonging in Bozeman Equity & Inclusion Plan in December 2023. 2. Extension. The Professional Services Agreement is extended until December 31, 2023. 3. Agreement still valid. All remaining terms and provisions of the Agreement remain valid. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** 152 Amendment to Professional Services Agreement Dated October 25, 2022 Assigned to Morten Group, LLC Page 2 of 2 IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA CENTRAL HOUSE STRATEGIES By________________________________ By_____________________________ Jeff Mihelich, City Manager Mary F. Morten, President, Morten Group, LLC APPROVED AS TO FORM By_______________________________ Greg Sullivan, Bozeman City Attorney 153 EQUITY AND INCLUSION PLAN DEVELOPMENT ADDENDUM UPDATED SCOPE OF PROJECT The following timeline outlines the remaining project tasks in Morten Group’s continued collaboration with the City of Bozeman’s Belonging in Bozeman (BIB)project: August ●BIB Steering Committee and core team work session on goals and actions September ●Follow-up meeting with BIB Steering Committee and core team ●(9/11-9/17)Community Chats +Note aggregation ●Support recommendation development October ●Support finalization of draft plan ●Begin drafting of final plan ●10/17 -MG visits Bozeman to appear before City Council1 November ●(11/30)Deadline for final plan document2 2 This includes a layout of the final plan;graphic design of the final document post-adoption can be added at an additional cost. 1 This in-person trip may get moved to December,depending on schedules. 154 Morten Group,LLC E&I Plan Development -2- December ●Final adoption by City Council ADDITIONAL BUDGET AND PAYMENT DETAILS BUDGET TOTAL The tasks above are estimated to expend 15-20 hours per month between September -December to be billed at a rate of $250/hour. This amount does not include Morten Group’s travel expenses for the final visit mentioned above, which will be billed separately.Please note,the fees in this contract are good for 60 days and are subject to change thereafter. SCHEDULE OF RATES As this is a continuation of a previously contracted project,no deposit is needed.Morten Group will invoice on the 1st of the month for work completed in the previous month.Invoices will be due 30 days after they are received.Please note,The City of Bozeman will receive an invoice with this revised addendum for work completed in August 2023. LATE PAYMENT POLICY If a payment is more than ten (10)days late,a 5%late fee of that invoice’s amount will be due on the following month’s invoice.If payment is not submitted within thirty (30)days of the due date stated on the initial invoice,all work will halt on the project until payment has been received and the client partner’s account is up to date. 155 Memorandum REPORT TO:City Commission FROM:Mike Veselik, Economic Development Program Manager Brit Fontenot, Economic Development Director Kira Peters, Assistant City Manager SUBJECT:Authorize the City Manager to sign a Second Amendment to the Professional Services Agreement with Greenspace Landscaping for plowing services in the Bridger Park Garage and surrounding sidewalks MEETING DATE:October 24, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:I move to authorize the City Manager to sign a Second Amendment to the Professional Services Agreement with Greenspace Landscaping for plowing services in the Bridger Park Garage and surrounding sidewalks 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:Greenspace Landscaping provides plowing services in the Bridger Parking Garage and the surrounding sidewalks. This amendment updates the terms for the upcoming winter including updated pricing for services. UNRESOLVED ISSUES:No unresolved issues ALTERNATIVES:No Alternatives FISCAL EFFECTS:Fiscal Effects approved in FY24 Budget Attachments: Second Amendment to the PSA for Bridger Garage Plowing with Greenspace Landscaping.docx Exhibit C--Greenspace Snow Removal Updated Scope--Bridger Parking Garage.pdf Report compiled on: October 12, 2023 156 Second Amendment to Professional Services Agreement for Parks and Trials District Snow Removal Services FY 2022 – FY 2025 Page 1 of 2 SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT THIS SECOND AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT FOR Parks and Trials District Snow Removal Services dated November 16, 2021 (the “Agreement”) is made and entered into this 24th day of October, 2023, by and between the CITY OF BOZEMAN, MONTANA,a self governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City,” and Clean Slate Group LLC., 34 Outlier Way, Bozeman MT 59718, hereinafter referred to as “Contractor.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree to amend the Agreement as follows: 1.Extension of Term. Section 31 Professional Service Agreement between City and Contractor dated November 16, 2021 is extended for an additional one (1) year period. The Agreement shall terminate on November 16, 2024. 2.Scope of Work: Exhibit C is added as an additional scope of work agreed to between the Contractor and the City to perform snow removal services in the downtown surface lots. The rates contained in Exhibit C will only apply to those services. 3.Agreement still valid. All remaining terms and provisions of the Agreement remain valid. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** 157 Second Amendment to Professional Services Agreement for Parks and Trials District Snow Removal Services FY 2022 – FY 2025 Page 2 of 2 IN WITNESS WHEREOF,the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA CLEAN SLATE GROUP LLC. By________________________________By_____________________________ Jeff Mihelich, City Manager Ryan Rickert, President/Founder APPROVED AS TO FORM By_______________________________ Greg Sullivan, Bozeman City Attorney 158 SERVICE CONTRACT - SNOW REMOVAL - 2023/2024 Season Client Name: Parking Garage (City) Phone: 406-946-2869 (Mike) Address: 26 E. Mendenhall St. Billing Address: P.O. Box 1230, Bozeman, MT 59771 Email (for electronic invoices): Postal Mail If you would like Greenspace to perform snow removal services for your property, please review, sign and return this contract no later than October 1st, 2023 or we cannot guarantee services. Thank you for your understanding and your prompt response. Terms and Conditions: • This contract is based upon a per plow rate. The season shall commence on Oct, 15th 2023 and shall terminate on April 30, 2024. If a snow event occurs outside this designated season, the client must call Greenspace to request services. • During the season, snow plowing will commence within a reasonable time after accumulation. City of Bozeman clients, please refer to the City of Bozeman Municipal Code for snow removal regulations – it states that you are required by law to remove any snow from your sidewalks within 24 hours of snowfall. Clients who live outside of the City limits, please indicate below at what accumulation you would like us to remove snow (any snow accumulation above 2" will be automatically removed.) • Client is responsible for contacting Greenspace office immediately if snow is removed by client. If Greenspace is not contacted and Greenspace employee drives to site to remove snow, client will be billed for contracted snow removal services. • Greenspace Landscaping is pleased to offer snow removal services on federal holidays during the contracted snow season at an additional 50% of the client’s contracted rate. Please indicate below if you would like Greenspace to perform snow duties on these days. If you decline services on these holidays, we will perform snow removal services the following day instead at the regular contracted per plow price. We will not be able to add or accommodate services for the holidays on the day of the holiday so please indicate in advance. • On a non-snow event day (meaning it didn't snow that day), all snow removal services will be charged at an hourly rate of $200/hr. including drive time for the snow plow driver to and from the Greenspace shop (half hour minimum). This includes but is not limited to snow drifting events or a client needing additional plowing on a non-snow event day. • Ice melt application: Ice melt product will be charged at $3 per pound. Labor to apply ice melt will be charged at $200/hr/person with a 15-minute minimum. • Customer understands that plowing, sanding or salting of a particular location may not clear the area to “bare pavement” and that slippery conditions may continue to prevail even after plowing (or application of salt or sand). Customer understands that contractor assumes no liability for this naturally occurring condition. Customer agrees to defend and hold harmless the contractor for any and all suits that may arise as a result of this naturally occurring condition. • Once snow falls we are unable to determine what lies under the accumulation. In order to avoid accidental damage to turf, sprinkler heads, outdoor lighting, woody plants, and other landscape items we kindly request clients to stake their driveways prior to Oct 15th. This requirement is in place to protect our clients’ property. Greenspace is also available to do the staking for our clients at an additional cost. 159 • Greenspace Landscaping, Inc. is not responsible for damage to turf grass, sprinkler heads, outdoor lighting, or any unknown objects that have not been marked by a stake. With gravel driveways or parking areas it is likely that gravel may be distributed into the grass during snow removal services. Greenspace is not responsible for the distribution of this gravel. Gravel cleanup is available at an additional cost. Greenspace is not responsible for damage to any form of paver or concrete driveways or sidewalks including stamped and colored concrete. • Reports of damage must be reported to the contractor within 24 hours. Failure to report the damages constitutes a waiver and the contractor is released from liability. • Sanding of parking lots and sidewalks is available; please call Greenspace office for quote. Chipping of sidewalk ice buildup is available at an additional cost of $200/hr/person (half hour minimum). Quoted contract rate does not include front end loader service. Loader services for removing snow will be charged separately, please call office for cost of services. Please check any services you would like this season. Please note we will charge a fuel surcharge for each service visit when gas prices are over $3.50 per gallon. ***Any snowfall over 12” and large drifts with a snow event will be billed at $200/hr. ______Sidewalks Only: Under 6” $175 6-12” $235 ________Ice melt ______ Driveway or lot staking Yes, please remove snow on these Holidays (50% surcharge): ________Thanksgiving Day _________Christmas Day ________New Years Day (11/23/23) (12/25/23) (1/1/24) Payment Terms: • Failure to make timely payment terminates the contract and relieves the contractor from any further liability to plow the snow. • A late charge of 1.5% per month will be imposed upon any payment which is not made within 15 days from the date of invoice, which charge shall continue to accrue until such payment is made. Insurance: • Greenspace Landscaping, Inc. will maintain liability insurance and (ii) workers compensation for their employees. Attorneys Fees and Costs: • Should I not pay my account as agreed, I agree to pay interest on my account at the rate of 18% on the unpaid balance and all costs of enforcing my duty to pay, including without limitation, costs of recording and serving liens or documentation associated with serving liens, attorney fees, title company fees, and court costs. This proposal may be withdrawn by Seller if not accepted within (30) thirty days. A $30 charge will be added to any checks returned by our bank. Client Signature: _____________________________________________________________ Date: _________________ Contractor Signature: _____Micheline Halpin____________________________________Date: ___8/30/2023____ 160 Memorandum REPORT TO:City Commission FROM:Mike Veselik, Economic Development Program Manager Brit Fontenot, Economic Development Director Kira Peters, Assistant City Manager SUBJECT:Authorize the City Manager to sign a Second Amendment to the Professional Services Agreement with Clean Slate Group for snow plowing services MEETING DATE:October 24, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:I move to authorize the City Manager to sign a Second Amendment to the Professional Services Agreement with Clean Slate Group for snow plowing services 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 Parks and Trails District entered into a contract with Clean Slate Group for Snow Removal Services in 2021. The Parking Services Division was in need of a new snow removal provider and discussed Clean Slate's services with Parks. The amendment is to add snow removal services for the downtown surface lots to the scope and update the pricing structure which is modified for parking's needs. UNRESOLVED ISSUES:No Unresolved Issues ALTERNATIVES:Alternatives as proposed by the Commission FISCAL EFFECTS:Fiscal Effects budgeted in FY24 budget Attachments: Second PSA Amendment with Clean Slate Group for Snow Removal Services.docx Exhibit C--Clean Slate Group Scope of Work for Parking Services.pdf Report compiled on: October 12, 2023 161 Second Amendment to Professional Services Agreement for Parks and Trials District Snow Removal Services FY 2022 – FY 2025 Page 1 of 2 SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT THIS SECOND AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT FOR Parks and Trials District Snow Removal Services dated November 16, 2021 (the “Agreement”) is made and entered into this 24th day of October, 2023, by and between the CITY OF BOZEMAN, MONTANA,a self governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City,” and Clean Slate Group LLC., 34 Outlier Way, Bozeman MT 59718, hereinafter referred to as “Contractor.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree to amend the Agreement as follows: 1.Extension of Term. Section 31 Professional Service Agreement between City and Contractor dated November 16, 2021 is extended for an additional one (1) year period. The Agreement shall terminate on November 16, 2024. 2.Scope of Work: Exhibit C is added as an additional scope of work agreed to between the Contractor and the City to perform snow removal services in the downtown surface lots. The rates contained in Exhibit C will only apply to those services. 3.Agreement still valid. All remaining terms and provisions of the Agreement remain valid. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** 162 Second Amendment to Professional Services Agreement for Parks and Trials District Snow Removal Services FY 2022 – FY 2025 Page 2 of 2 IN WITNESS WHEREOF,the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA CLEAN SLATE GROUP LLC. By________________________________By_____________________________ Jeff Mihelich, City Manager Ryan Rickert, President/Founder APPROVED AS TO FORM By_______________________________ Greg Sullivan, Bozeman City Attorney 163 City of Bozeman Public Parking Lots Snow Removal 2023-2024 Overview Clean Slate Group Urban Beautification division will be responsible for the removal of snow and ice for all four City of Bozeman downtown public parking lots.The snow removal will include the four lots and surrounding sidewalks as indicated in the locations and maps section below. Location Specifics ●Black Public Parking Lot (figure 1) ○Address:106 E Mendenhall St,Bozeman,MT 59715 ●Wilson North Public Parking Lot (figure 2) ○Address:41 W Mendenhall St,Bozeman,MT 59715 ●Wilson South Public Parking Lot (figure 3) ○24 N Willson Ave,Bozeman,MT 59715 ●Rouse Public Parking Lot (figure 4) ○315 E Babcock St,Bozeman,MT 59715 Pricing We will bill using a retainer-hybrid model of pricing that will be based on a per push basis.A push will constitute the removal of snow and ice at all four parking lots and the surrounding sidewalks (see locations below).Any accumulating snow between .5”and 2”may require a push at our discretion.Any snow accumulation of 2”or more automatically necessitates a push of all areas,at all locations. There will be six (6)pushes included within the $6,000 per month retainer,and any additional pushes will be billed at $800 per push for all four parking lots and the surrounding sidewalks.Any snow removal taking place outside of the retainer window (before November 1st &after April 15th)will be billed at $1,200 per push. 164 Retainer Pricing Model Retainer Price per Month*(Nov 1-April 15**)$6,000 #of Pushes within Retainer 6 Price per Push Above Retainer Threshold (7+)$800 *Outside of retainer:$1,200 per push (before Nov 1st,after April 15th) **Only 1/2 retainer for April Equipment to be Used ●2021 Bobcat Toolcat with 6’articulating snow blade &~1.5’wing attachments ●2023 Ariens Mammoth 850 Tractor with 48”V-plow,48”snow blower,&44”brush attachments ●Hand shovels where needed Snow Sacrifice Zones ●As indicated in parking lot maps in Red (figures 1-4) Special Requests ●Hand-shoveling around parking space sensors located at each lot entrance to reduce likelihood of damage.As indicated in parking lot maps in Green (figures 1-4). Maps (see below) ●Yellow:Parking lot snow removal area to be completed by Bobcat Toolcat ●Blue:Sidewalk snow removal area to be completed by Ariens Mammoth &hand shoveling ●Red:Snow sacrifice zones for snow storage throughout the season.May be extended depending on snowfall amount ●Green:Hand-shovel zones at lot entrances to reduce risk of damage to in-ground lot counter sensors 165 Figure 1-Black Public Parking Lot 166 167 Figure 3-Wilson South Public Parking Lot 168 Figure 4-Rouse Public Parking Lot 169 Memorandum REPORT TO:City Commission FROM:Tom Rogers, Senior Planner Chris Saunders, Community Development Manager Erin George, Deputy Director of Community Development Anna Bentley, Director of Community Development SUBJECT:Resolution 5401 the Bennett Properties Annexation, Annexing 36.980 acres and Adjacent Rights-of-Way, Application 22380 MEETING DATE:October 24, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION: Adopt Resolution 5401 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 Commission approved Application 22380 on April 4, 2023 to annex 36.980 acres and establish an initial zoning designation of REMU (Residential Emphasis Mixed-Use District) subject to terms of annexation and contingencies for zoning. A signed annexation agreement was received on August 18, 2023. The property is adjacent and south of Stucky Road and bounded on the east by Genesis Business Park, a County in holding, and Meadow Creek phase 1 park. Gran Cielo subdivision bounds the property on the southeast side creating an extension of South 27th Avenue with additional undeveloped property on the northwest side. Considerable development is occurring in the vicinity including the Gran Cielo subdivision, Nexus Point residential development, the Graf Street development, and the West University property annexation to the north across Stucky Road. The Future Land Use Map in the Bozeman Community Plan (BCP) 2020 designates the property as “Urban Neighborhood” which includes the REMU district as an implementing zoning district. Nearby municipal zoning to the south is R-4 (Residential High Density district) to the southeast, R-3 170 (Residential Medium Density district) to the south and southwest, and R-4 (Residential High Density district) and R-5 (Residential High Density-Mixed district) on the northwest side. The property is bordered by Stucky Road to the north (a Bozeman classified Collector street). The proposed annexation would bring in additional right of way to build out another section of Stucky Road as would be required with future development. South 27th Avenue has adequate right of way width. The property is currently hosts two residential structures being served with City sewer service which was connected through an emergency connection option the city offers. The construction of South 27th Avenue severed the septic systems from the existing homes. The Gran Cielo development had installed service adjacent to the structures. The property has a recently installed 15 inch sewer mains and 8 inch water mains (partial) running along the property to the west in South 27th Avenue and on the south side in Graf Street. In addition an existing 21 inch sewer main is in the Stucky Road ROW. UNRESOLVED ISSUES:None ALTERNATIVES:As determined by the Commission FISCAL EFFECTS:No unusual fiscal effects have been identified. No presently budgeted funds will be changed by this Annexation or Zone Map Amendment. Future development will incur costs and generate review according to standard City practices. Attachments: 22380 Bennett Annex Resolution 5401.pdf 002 Bennett Annexation Map.pdf Report compiled on: October 6, 2023 171 Version April 2020 Page 1 of 4 RESOLUTION 5401 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, PROVIDING FOR THE ANNEXATION OF CERTAIN CONTIGUOUS TRACTS OF LAND, HEREINAFTER DESCRIBED, TO THE CORPORATE LIMITS OF THE CITY OF BOZEMAN AND THE EXTENSION OF THE BOUNDARIES OF THE CITY OF BOZEMAN SO AS TO INCLUDE SAID CONTIGUOUS TRACTS, KNOWN AS THE BENNETT PROPERTIES ANNEXATION, APPLICATION 22380. WHEREAS, the City of Bozeman received a petition for annexation from Marshall and Julie Bennett requesting the City Commission to extend the boundaries of the City of Bozeman so as to include an area of land containing approximately 36.980 acres, generally located on the southeast corner of Stucky road and South 27th Avenue; and WHEREAS, an annexation staff report was prepared in accordance with the Commission's goals and policies for annexation and was presented to the Commission on April 4, 2023; and WHEREAS, a public meeting on said annexation petition was duly noticed and held on April 4, 2023; and WHEREAS, the City did not receive any written protest from the real property owners of the area to be annexed; and WHEREAS, on October 24, 2023, the Commission received the executed annexation agreement addressing all recommended terms of annexation; and 172 Version April 2020 Page 2 of 4 WHEREAS, the provision of available services, including, but not limited to, streets, rights-of-way, easements, water rights or cash-in-lieu, waivers of protest against creation of SID's, and water and sewer hookup fees, to said contiguous tracts as described is the subject of a written agreement between the City and the Landowner; and WHEREAS, the Bozeman City Commission hereby finds that the annexation of this contiguous tract is in the best interests of the City of Bozeman and the inhabitants/owners thereof. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: Section 1 That it is hereby declared that, pursuant to Title 7, Chapter 2, Part 46, Mont. Codes Ann., the following-described property, which is contiguous to the municipal boundaries of the City of Bozeman, be annexed to the City of Bozeman and that the boundaries of said City shall be extended so as to embrace and include such approximately 36.980 acres, to wit: Legal Description An area of land comprised described as follows: An area of land being Tract 1 of C.O.S. 2632, Tract 2 of C.O.S. 2725 Tract 3 of C.O.S. 2532, located in Section 23, Township 2 South, Range 5 East, Principal Meridian Montana, Gallatin County and being further described as follows: Beginning at the One-Quarter Corner between Section 14 and Section 23, being a nail in Stucky Rd; thence S 88°26'22" E, a distance of 32.86 feet, to a calculated position; thence S 88°14'14" E, a distance of 521.59 feet, to a calculated position; thence S 01°27'33" W, a distance of 1341.91 feet, to a Gaston YPC; thence S 00°33'35" E, a distance of 1204.27 feet, to a 5/8" rebar; thence S 26°05'50" W, a distance of 78.12 feet, to a 6" Dia. Fence Post; thence S 04°33'47" W, a distance of 23.20 feet, to an Allied Alum. Cap; thence N 88°54'58" W, a distance of 563.01 feet, to an Allied Alum. Cap; thence N 01°27'30" E, a distance of 280.46 feet, to an Allen Alum. Cap; 173 Version April 2020 Page 3 of 4 thence N 01°27'30" E, a distance of 415.87 feet, to a 2" Dia. Alpine Alum Cap; thence along a curve concave to the west with an arc length of 173.39 feet, a radius of 300.00 feet, a delta angle of 33°06'51", a chord bearing of N 15°05'56" W, and a chord length of 170.98 feet, to a 2" Dia. Alpine Alum Cap; thence N 31°39'21" W, a distance of 101.25 feet, to a 2" Dia. Alpine Alum Cap; thence along a curve concave to the east with an arc length of 173.39 feet, a radius of 300.00 feet, a delta angle of 33°06'51", a chord bearing of N 15°05'56" W, and a chord length of 170.98 feet, to a 2" Dia. Alpine Alum Cap; thence N 01°27'30" E, a distance of 189.86 feet, to a 2" Dia. Alpine Alum Cap; thence N 01°27'30" E, a distance of 169.67 feet, to a 2" Dia. Alpine Alum Cap; thence along a curve concave to the east with an arc length of 173.39 feet, a radius of 300.00 feet, a delta angle of 33°06'51", a chord bearing of N 18°00'55" E, and a chord length of 170.98 feet, to a 2" Dia. Alpine Alum Cap; thence N 34°34'21" E, a distance of 101.25 feet, to a 2" Dia. Alpine Alum Cap; thence along a curve concave to the west with an arc length of 74.00 feet, a radius of 300.00 feet, a delta angle of 14°07'58", a chord bearing of N 27°30'22" E, and a chord length of 73.81 feet, to a 2" Dia. Alpine Alum Cap; thence along a curve concave to the west with an arc length of 99.39 feet, a radius of 300.00 feet, a delta angle of 18°58'53", a chord bearing of N 10°56'57" E, and a chord length of 98.93 feet, to a 2" Dia. Alpine Alum Cap; thence N 01°27'30" E, a distance of 765.08 feet, the Point of Beginning. Said area being 36.980 acres more or less, along with and subject to all easements of record or apparent from a visual inspection of the property. All as depicted on the BENNETT PROPERTIES Annexation Map. Section 2 The effective date of this annexation is October 24, 2023. 174 Version April 2020 Page 4 of 4 PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the ____ day of October, 2023. ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 175 N 27TH AVENUELANTERN DRSTUCKY RDGRAF STENTERPRISE BLVD S 27TH AVEAPEX LANESHEETMADISON ENGINEERING895 TECHNOLOGY BLVDBOZEMAN, MT 59718(406) 586-02621" = 0 SCALE 100' 20050100 LEGEND BENNETT ANNEXATION LEGAL DESCRIPTION:ANNEXATION MAPBENNETT ANNEXATIONBOZEMAN, MTC1.0 ANNX MAP BENNET ANNX 176 Memorandum REPORT TO:City Commission FROM:Bernie Massey, Assistant Treasurer Laurae Clark, City Treasurer Melissa Hodnett, Finance Director SUBJECT:Resolution 5530 Intent to Modify Special Improvement Lighting District 766 for Intent to include Northwest Crossing phase 2. MEETING DATE:October 24, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Consent 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 (MCA) 7-12-4301 authorizes special improvement districts to be created to pay for the cost of operating and maintaining streetlights and to assess costs to benefitted property owners. (MCA) 7-12- 4351 authorizes the major modification of an existing special improvement lighting district. Bozeman Municipal Code Sec.38.270.030 subsection A line 4 requires that prior to final plat approval, lighting must be installed or secured. Lighting District 766 was created in November of 2021 to include only phase 1 of the Northwest Crossing development. This modification expands the district to include properties in phase 2 for which final plat approval is being submitted. The provisions in MCA 7-12-4302 through 7-12-4305 for the content of the resolution, public notice, protest, and consideration of protest that apply to the creation of a special improvement lighting district also apply to the modification of an existing special improvement lighting district authorized by this section. UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the City Commission FISCAL EFFECTS:As a result of modifying this lighting district, the City will pay the associated power bills and schedule system maintenance. Costs will be recovered by billing property owners each year on their City Assessment bill. It is estimated to cost $31.803501 per acre within the district or $1,035.84 177 annually for the entire district. On a median size lot of 3,927 square feet the annual estimated cost would be $4.26 payable semiannually. Attachments: Resolution 5530-Intent to Modify SILD 766-Northwest Crossing Ph 1-2.docx Exhibit A.pdf Exhibit B.pdf Report compiled on: September 14, 2023 178 Page 1 of 10 RESOLUTION 5530 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, DECLARING IT TO BE THE INTENTION OF THE CITY COMMISSION TO MODIFY LIGHTING DISTRICT NO. 766 (NORTHWEST CROSSING PH 1) TO INCLUDE PHASE 2 TO THIS DISTRICT AND FOR ASSESSING THE COSTS FOR MAINTENTANCE AND ENERGY THEREFORE TO BENEFITTED PROPERTY BY THE LEVY OF SPECIAL ASSESSMENT. BE IT RESOLVED by the City Commission (the “Commission”) of the City of Bozeman (the “City”), Montana, as follows: Section 1 Intention to Modify District 766,Proposed Improvements. It is the intention of this Commission to modify and establish in the City under Montana Code Annotated, Title 7, Chapter 12, Part 43, as amended, a special improvement lighting district to serve Northwest Crossing Ph 1-2(the “District”) for the purpose of, maintenance and energy costs. The city will maintain and pay energy costs for the modified district. The District will pay the maintenance and energy costs for five (5) Lumec RoadFocus LED Cobrahead 100-watt single upsweep luminaires on round tapered steel poles, mounted at 35’ per City of Bozeman standards and twenty-seven (27) Lumec RoadFocus LED Cobrahead 45-watt single upsweep luminaires on round tapered steel poles, mounted at 30’ per City of Bozeman standard. The poles will be K-KLAD over galvanized – Hunter Green. The initial monthly charge per fixture per month (the “Monthly Charge”) is estimated as follows: $5.60 per 100-watt fixture and $2.16 per 45-watt fixture or $1,035.84 annually. 179 Resolution 5530, Intent to Modify Lighting District 766 Page 2 of 10 Section 2 Number of District. The modified district is known and designated as Special Improvement Lighting District No.766 (Northwest Crossing Ph 1-2) of the City of Bozeman, Montana. Section 3 Boundaries of District. The limits and boundaries of the District are depicted on a map attached as Exhibit A hereto (which is hereby incorporated herein and made a part hereof), which boundaries are designated and confirmed as the boundaries of the District. A listing of each of the properties in the District is shown on Exhibit B hereto (which is hereby incorporated herein and made a part hereof). Section 4 Benefited Property. The District and territory included within the limits and boundaries described in Section 3 and as shown on Exhibit A are hereby declared to be the special lighting district and the territory which will benefit and be benefited by the maintenance and energy and will be assessed for the energy costs and a portion of the maintenance as described in Section 1. The maintenance and energy, in the opinion of this Commission, are of more than local and ordinary benefit. The property included within said limits and boundaries is hereby declared to be the property benefited by the maintenance and energy provided. Section 5 Assessment Methods. All properties within the District are to be assessed for a portion of the maintenance and energy costs, as specified herein. The maintenance and energy costs shall be assessed against the property in the District benefiting, the actual area method of assessment described in Sections 7-12-4323, MCA, as particularly applied and set forth in this Section 5. The annual maintenance and energy costs, estimated to be $1,035.84, shall be assessed against each lot, tract or parcel of land in the District for that part of the costs that the area of such lot, tract or parcel bears to the total area of all lots, tracts or parcels of land in the District, exclusive of streets, avenues, alleys parks and open space. The total area of the District to be assessed is 32.57 acres, 180 Resolution 5530, Intent to Modify Lighting District 766 Page 3 of 10 or 1,418,865.08 square feet, exclusive of parks and open space. The initial costs of the Improvements per acre shall be $31.803501 or $0.000730 per square foot annually. Section 6 Payment of Assessments. Special assessments for the annual maintenance and energy costs are estimatedat$1,035.84, plus any increases, as may be permitted by the Public Service Commission, and any additional authorized charges shall be levied each year against all properties in the District and shall be payable in equal semiannual installments. The first year of special assessment billing will include an additional amount not to exceed $500 for publication and mailing associated with creation of the District which shall be assessed in the same manner as the Improvements resulting in a cost not to exceed $47.155051 per acre, or $0.001083 per square foot. Section 7 Extraordinary Repair or Replacement. The maintenance and energy costs and assessments set forth in Section 1 and 5 are based on normal conditions and do not cover charges for repair and/or replacement. The City may make an additional charge to the District for costs of labor and actual material costs for repairs and/or replacement of the fixtures for damage caused by third parties and not paid by such third parties. The City will assess such costs and charges against the properties in the District in the same manner as the other assessment is made. Section 8 Discontinuation of District. If at any time after the initial term of the District a petition is presented to the City Commission, signed by the owners or agents of more than three-fourths of the total amount of property within the District, asking that the maintenance and operation of the special lighting system and the furnishing of electrical current in the District be discontinued, or if a majority of the City Commission votes to discontinue the District, the City Commission shall, by resolution, provide for discontinuing the maintenance and operation of the lighting system. If the Commission has, prior to the presentation of a petition or by a majority vote of the Commission to discontinue the District, entered into any contract for the maintenance and operation of the 181 Resolution 5530, Intent to Modify Lighting District 766 Page 4 of 10 lighting system, the maintenance and operation may not be discontinued until after the expiration of the contract. Section 9 Public Hearing; Protests. At any time within fifteen (15) days from and after the date of the first publication of the notice of the passage and approval of this resolution, any owner of real property within the District subject to assessment and taxation for the cost and expense of maintenance and energy may make and file with the City Clerk until 5:00 p.m., M.T., on the expiration date of said 15-day period (November 13, 2023) written protest against the proposed maintenance and energy costs, or against the extension or creation of the District or both, and this Commission will at its next regular meeting after the expiration of the fifteen (15) days in which such protests in writing can be made and filed, proceed to hear all such protests so made and filed; which said regular meeting will be held on Tuesday, November 21, 2023 in the Commission Room at City Hall, 121 N Rouse Avenue. Section 10 Notice of Passage of Resolution of Intention. The City Clerk is hereby authorized and directed to publish or cause to be published a copy of a notice of the passage of this resolution in the Bozeman Daily Chronicle, a newspaper of general circulation in the county on October 28, 2023 and November 4, 2023, in the form and manner prescribed by law, and to mail or cause to be mailed a copy of said notice to every person, firm, corporation, or the agent of such person, firm, or corporation having real property within the District listed in his or her name upon the last completed assessment roll for state, county, and school district taxes, at his last-known address, on or before the same day such notice is first published. PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 24th of October, 2023. ___________________________________ 182 Resolution 5530, Intent to Modify Lighting District 766 Page 5 of 10 Cynthia Andrus Mayor ATTEST: ____________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 183 Resolution 5530, Intent to Modify Lighting District 766 CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE I, the undersigned, being the duly qualified and acting recording officer of the City of Bozeman, Montana (the “City”), hereby certify that the attached resolution is a true copy of Resolution No. 5530, entitled: “A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, DECLARING IT TO BE THE INTENTION OF THE CITY COMMISSION TO MODIFY LIGHTING DISTRICT NO. 766 (NORTHWEST CROSSING PH 1) TO INCLUDE PHASE 2 TO THIS DISTRICT AND FOR ASSESSING THE COSTS FOR MAINTENTANCE AND ENERGY THEREFORE TO BENEFITTED PROPERTY BY THE LEVY OF SPECIAL ASSESSMENT.” (the “Resolution”), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Commission of the City of Bozeman at a meeting on October 24, 2023, and that the meeting was duly held by the City Commission and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. I further certify that, upon vote being taken on the Resolution at said meeting, the following Commissioners voted in favor thereof: _____ ____________________ ; voted against the same: ___ ; abstained from voting thereon: ; or were absent: . WITNESS my hand officially this 24th day of October, 2023. ___________________________________ Mike Maas City Clerk 184 Resolution 5530, Intent to Modify Lighting District 766 TO MODIFY SPECIAL IMPROVEMENT LIGHTING DISTRICT NO. 766 (NORTHWEST CROSSING PH 1) TO INCLUDE PHASE 2 CITY OF BOZEMAN, MONTANA NOTICE IS HEREBY GIVEN that on October 24, 2023, the City Commission (the “Commission”) of the City of Bozeman, Montana (the “City”), adopted a Resolution No. 5530 to modify Special Improvement Lighting District No. 766 (the “District”) for the purpose of maintaining lighting and assessing the cost for maintenance and energy to Northwest Crossing Ph 1-2, and paying maintenance and energy costs relating thereto. A complete copy of the Resolution of Intention (the “Resolution”) No. 5530 is on file with the City Clerk which more specifically describes the nature of the costs, the boundaries and the area included in the District, the location of the Improvements and other matters pertaining thereto and further particulars. A list of properties in the District and the amount of the initial assessment accompanies this notice. The Resolution and accompanying exhibits may be also viewed on the City’s website at www.bozeman.net. The District will pay the maintenance and energy costs for five (5) Lumec RoadFocus LED Cobrahead 100-watt single upsweep luminaires on round tapered steel poles, mounted at 35’ per City of Bozeman standards and twenty-seven (27) Lumec RoadFocus LED Cobrahead 45-watt single upsweep luminaires on round tapered steel poles, mounted at 30’ per City of Bozeman standard. The poles will be K-KLAD over galvanized – Hunter Green. The initial monthly charge per fixture per month (the “Monthly Charge”) is estimated as follows: $5.60 per 100-watt fixture and $2.16 per 45-watt fixture or $1,035.84 annually. All properties in the District will be assessed for their proportionate share of the costs of the Improvements on an “area basis” annually and will be payable in equal semiannual installments. The annual costs of the Improvements at the initial Monthly Charge are $1,035.84 185 Resolution 5530, Intent to Modify Lighting District 766 per year for the entire District. The total area of the District to be assessed is 32.57 acres, or 1,418,865.08square feet, exclusive of parks and open space. The initial costs of the Improvements per acre shall be $31.803501 or $0.000730 per square foot annually. On a median size lot of 3,927 square feet the annual estimated cost would be $4.26 which is payable semiannually. The annual assessments for costs of the Improvements may be increased as approved by the Public Service Commission and may be increased to cover extraordinary expenses of repair and maintenance. The first year of special assessment billing will include an additional amount not to exceed $500 for publication and mailing associated with creation of the District which shall be assess in the same manner as the Improvements resulting in a cost not to exceed $47.155051 per acre, or $0.001083per square foot. Written protests against the creation or modification of the District and the costs may be filed by an agent, person, firm or corporation owning real property within the proposed District whose property is liable to be assessed for the costs. Such protests must be delivered to the City Clerk at City Hall, 121 N Rouse Ave, Bozeman, Montana not later than 5:00 p.m., M.T., on Monday, November 13, 2023. If protests are received by the deadline, the City Commission will hear and pass upon all written protests against the creation or extension of the District, or the Improvements on Tuesday, November 21, 2023, at 6:00 p.m., in the Commission Room at City Hall 121 N Rouse Ave, Bozeman, Montana. If no protests are received, the City Commission may, on the same date, time and location, pass a Resolution authorizing the creation or modification of the district. Further information regarding the proposed District or other matters in respect thereof may be obtained from the City Clerk at City Hall, 121 N Rouse Ave, Bozeman, Montana or by telephone at (406) 582-2320. 186 Resolution 5530, Intent to Modify Lighting District 766 Dated:October 24, 2023 BY ORDER OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA _________________________________________ Mike Maas City Clerk Legal Ad Publication Dates: Saturday, October 28, 2023 Saturday, November 4, 2023 187 Resolution 5530, Intent to Modify Lighting District 766 COMMISSION RESOLUTION NO. 5530 Resolution of Intent to ModifySILD No. 766 for the purpose of maintaining lighting and assessing the cost for maintenance and energy to Northwest Crossing Ph 1-2, and paying maintenance and energy costs relating thereto. AFFIDAVIT OF MAILING STATE OF MONTANA ) : ss County of Gallatin ) Mike Maas, City Clerk, being first duly sworn, says: That I deposited a copy of the Notice in regard to the owners in Special Improvement Lighting District No. 766, as listed in Exhibit "B", in the U.S. Post Office at Bozeman, Montana, on Friday, October 27, 2023, directed to the owners at the addresses shown on Exhibit "B". ______________________________ Mike Maas City Clerk Subscribed and sworn before me this 27th day of October, 2023. (Notarial Seal) _______________________________ Printed name ___________________ Notary Public for the State of Montana Residing at: see seal My Commission expires: see seal 188 21S21S21S21S21S21S21S21S21S21S21S21S21SM FIGURE NUMBER © PROJECT NO.DRAWN BY: DSGN. BY: APPR. BY: DATE: COPYRIGHT MORRISON-MAIERLE,2023 Plotted by cooper krause on Jun/8/2023 engineers surveyors planners scientists MorrisonMaierle 2880 Technology Blvd West Bozeman, MT 59718 406.587.0721 www.m-m.net N:\6787\003-Ph1-Design+MassGrading\ACAD\Exhibits\Final Plat\SILD #677.dwg6787.003 SILD NORTHWEST CROSSING SUBDIVISION BOZEMAN MONTANA SILD #766 MODIFICATION - NWX 2.1 CPK CPK MEE 06/2023 COTTONWOOD ROADHARVEST PARKWAY TWIN LAKES AVE STREET LIGHT LEGEND EXISTING E1 EXISTING E2 NEW E2: TO BE INCORPORATED INTO SILD #766 EXISTING ELECTRIC METER (SILD #766) W. OAK STREETROSA WAYWELLSPRING AVE BRIARWOOD LANE WILDWOOD LANE DAYSPRING AVETOUCHSTONE DRIVE CURRENTLY PART OF SILD #766 FUT U R E P H A S E S NWX PHASE 1 BOUNDARY NWX PHASE 2.1 BOUNDARY 0 SCALE IN FEET 80 1608040 EXISTING ELECTRIC METER (SILD #766) 189 Phase Block Lot LID Address Acres Sq Ft Owner Name Owner Address City State Zip 1 1 1 292880 1700 Twin Lakes Ave 2.62 114,127.20 NWX Apartments LLC 1735 S 19th Ave Ste B Bozeman MT 59718 1 2 299390 1695 Dayspring Ave 0.75 32,670.00 NWX LLC 1735 S 19th Ave Ste B Bozeman MT 59718 1 3 299370 1684 Dayspring Ave 1.21 52,707.60 NWX LLC 1735 S 19th Ave Ste B Bozeman MT 59718 1 4 299380 1641 Dayspring Ave 2.013 87,686.28 NWX LLC 1735 S 19th Ave Ste B Bozeman MT 59718 1 5 299360 1642 Dayspring Ave 1.25 54,450.00 NWX LLC 1735 S 19th Ave Ste B Bozeman MT 59718 1 6 299280 1550 Twin Lakes Ave 2.46 107,157.60 NWX LLC 1735 S 19th Ave Ste B Bozeman MT 59718 1 7 299340 1575 Dayspring Ave 1.48 64,468.80 NWX LLC 1735 S 19th Ave Ste B Bozeman MT 59718 1 8 299330 1598 Dayspring Ave 0.57 24,829.20 NWX LLC 1735 S 19th Ave Ste B Bozeman MT 59718 1 9 299320 1500 Dayspring Ave 0.81 35,283.60 NWX LLC 1735 S 19th Ave Ste B Bozeman MT 59718 1 10 299300 1452 Dayspring Ave 1.09 47,480.40 NWX LLC 1735 S 19th Ave Ste B Bozeman MT 59718 1 11 299290 1438 Dayspring Ave 0.78 33,976.80 NWX LLC 1735 S 19th Ave Ste B Bozeman MT 59718 1 12 290120 1450 Twin Lakes Ave 1.4 60,984.00 NWX Building 1 LLC PO Box 4082 Bozeman MT 59772 1 13 292840 1501 Twin Lakes Ave 7.1 309,276.00 NWX Apartments LLC 1735 S 19th Ave Ste B Bozeman MT 59718 1 14 292870 1701 Twin Lakes Ave 5.26 229,125.60 NWX Apartments LLC 1735 S 19th Ave Ste B Bozeman MT 59718 2 9 1 0.12 5,227.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 9 2 0.077 3,344.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 9 3 0.108 4,719.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 9 4 0.09 3,927.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 9 5 0.077 3,344.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 9 6 0.077 3,344.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 9 7 0.077 3,344.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 9 8 0.077 3,368.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 9 9 0.08 3,481.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 9 10 0.115 5,005.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 9 11 0.077 3,344.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 9 12 0.077 3,344.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 9 13 0.077 3,344.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 9 14 0.135 5,870.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 9 15 0.108 4,708.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 9 16 0.108 4,720.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 9 17 0.108 4,724.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 9 18 0.108 4,718.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 9 19 0.108 4,702.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 EXHIBIT B Northwest Crossing Ph 1-2 190 2 9 20 0.107 4,681.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 9 21 0.111 4,852.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 9 22 0.106 4,617.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 9 23 0.105 4,575.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 9 24 0.167 7,258.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 8 29 0.073 3,172.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 8 30 0.073 3,173.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 8 31 0.073 3,173.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 8 32 0.073 3,173.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 8 33 0.073 3,173.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 11 4A 0.057 2,487.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 11 4B 0.057 2,487.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 11 5A 0.057 2,487.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 11 5B 0.057 2,487.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 11 6A 0.057 2,487.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 11 6B 0.057 2,487.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 11 7A 0.057 2,487.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 11 7B 0.131 5,724.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 11 11A 0.057 2,479.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 11 11B 0.057 2,479.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 11 12A 0.057 2,479.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 11 12B 0.057 2,479.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 11 13A 0.057 2,479.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 11 13B 0.057 2,479.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 11 14A 0.057 2,479.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 2 11 14B 0.086 3,732.00 WH Bozeman NWX 358 LLC 24911 Avenue Standford Santa Clara CA 91355 Totals 32.57 1,418,865.08 191 Memorandum REPORT TO:City Commission FROM:David Fine, Economic Development Manager Brit Fontenot, Economic Development Director Jeff Mihelich, City Manager SUBJECT:Resolution 5546 Approving an Amendment to a Development Agreement for a Project in the Midtown Urban Renewal District Known as the Lumberyard Project MEETING DATE:October 24, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION:I move to approve Resolution 5546. 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 City Commission approved a Development Agreement for the Lumberyard Project pursuant to Resolution 5505. The form of Development Agreement approved by the Commission included a proposed form of Restrictive Covenants. However, the Developer has requested that the form of Restrictive Covenants attached to and referenced in the Development Agreement be replaced with alternative restrictive covenants, substantially in the form attached to this resolution as Exhibit A (the “Revised Restrictive Covenants”). The proposed affordable housing project for the West Block parcel is utilizing low-income housing tax credits (LIHTC) from the Montana Board of Housing (MBOH). These credits come with robust enforcement mechanisms and reporting requirements that are more restrictive in terms of affordability than the form of restrictive covenants initially required by the City. For example, the term of affordability in the MBOH covenant is 50 years, whereas the City’s covenant only required 30 years of affordability. It is important for the investors and for the MBOH that the City and MBOH not conflict. Staff want to highlight two changes to the requirements of these respective covenants, which can be seen as tradeoffs for a longer term of affordability. First, the new Restrictive Covenants terminate in the event the project is acquired by foreclosure. Second, the new covenant does not include restrictions on short term rentals (STRs). Due to income qualification requirements and subleasing prohibitions for LIHTC rental units, STR use is 192 extremely unlikely. In addition, the City plans to prohibit use of the property for STRs through a separate covenant required for utilizing incentives under the City’s Affordable Housing Ordinance (AHO). UNRESOLVED ISSUES:None at this time. ALTERNATIVES:As directed by the City Commission. FISCAL EFFECTS:None. Attachments: Resolution 5546 approving changes to Lumberyard development agreement.docx Revised Restrictive Covenants Exhibit A.pdf Report compiled on: October 5, 2023 193 RESOLUTION NO. 5546 RESOLUTION APPROVING AN AMENDMENT TO A DEVELOPMENT AGREEMENT FOR A PROJECT IN THE MIDTOWN URBAN RENEWAL DISTRICT KNOWN AS THE LUMBERYARD PROJECT BE IT RESOLVED by the City Commission (the “Commission”) of the City of Bozeman, Montana (the “City”), as follows: Section 1 Recitals. 1.01.On August 15, 2023, this Commission adopted Resolution No. 5505, approving the Project (as hereinafter defined) as an urban renewal project in the Bozeman Midtown Urban Renewal District (the “District”)under the Bozeman Midtown Urban Renewal Plan. The Project consists of a two-phase residential project, the first phase of which is expected to consist of the design, engineering and construction of 21 studio apartments, 54 one-bedroom apartments, 78 two-bedroom apartments, 18 three-bedroom apartments, and related improvements, and the second phase of which is expected to consist of the design, engineering and construction of 14 studio apartments, 36 one-bedroom apartments, 52 two-bedroom apartments, 12 three-bedroom apartments, and related improvements, to be undertaken by Virga Venture I LLC (the “Developer”). The Developer expects to sell a portion of its property to a third party that will develop an affordable housing project thereon, expected to consist of not less than 90 units of housing, each affordable at 60% of area median income, and the public improvements and infrastructure to be constructed in connection with the Project will support the development of the affordable housing project. 194 Resolution 5546, Approving an Amendment to a Development Agreement for a Project in the Midtown URD Known as the Lumberyard Project 2 1.02.Pursuant to such resolution, this Commission approved a form of Development Agreement with respect to the Project, which included a requirement that restrictive covenants (the “Restrictive Covenants”) be recorded against property in the District to provide for the development of the affordable housing project. In the Development Agreement, the Restrictive Covenants are required to (i) run with the land, (ii) bind, for a period not less than 30 years from the date of issuance of a certificate of occupancy with respect to such housing units, 90 housing units to be affordable at 60% area median income (“AMI”), either as rental units or as owner- occupied units with restrictions on resale prices, with resale and rental prices tied to affordability at 60% AMI, and (iii) provide that a third-party nonprofit or government entity with experience in managing affordable housing units must manage the rental or sale of such housing units. 1.03.The form of Development Agreement approved by the Commission included a proposed form of Restrictive Covenants. However, the Developer has requested that the form of Restrictive Covenants attached to and referenced in the Development Agreement be replaced with alternative restrictive covenants, substantially in the form attached to this resolution as Exhibit A (the “Revised Restrictive Covenants”). 1.04.The Revised Restrictive Covenants (i) run with the land; (ii) bind, for a period not less than 50 years from the date that the affordable housing project is placed in service, 155 housing units to be income targeted to 60% or less of AMI; and (iii) include robust enforcement mechanisms and reporting requirements. However, the Revised Restrictive Covenants would terminate in the event that the affordable housing project is acquired by foreclosure. Section 2 Approval of the Restrictive Covenants; Amendment of the Development Agreement. 2.01.The Commission hereby finds that the Revised Restrictive Covenants are in accordance with the City’s requirements set forth in the Development Agreement. The Commission hereby approves the Revised Restrictive Covenants, substantially in the form attached hereto as Exhibit A, and approves attaching the Revised Restrictive Covenants to the 195 Resolution 5546, Approving an Amendment to a Development Agreement for a Project in the Midtown URD Known as the Lumberyard Project 3 Development Agreement as Exhibit G thereto. References in the Development Agreement to the “Restrictive Covenants” shall be read to refer to the Revised Restrictive Covenants. 2.02.The Commission hereby amends Section 3.12 of the Development Agreement to read as follows: “3.12. Affordable Housing Covenants. The Developer agrees that, as a condition to receiving any reimbursement under this Agreement, the Developer will file a restrictive covenant on the West Block, providing that any development at the West Block will include a minimum of 90 housing units (the “Restricted Units”), which will be restricted for a period not less than 30 years for use as housing affordable to households with incomes equal to 60% area median income (“AMI”). As a condition to reimbursement hereunder, the Developer shall record the restrictive covenants, substantially in the form attached hereto as Exhibit G (the “Restrictive Covenants”) against the West Block. The Restrictive Covenants must (i) run with the land, (ii) bind, for a period not less than 30 years from the date of issuance of a certificate of occupancy with respect to the Restricted Units, the Restricted Units to be affordable at 60% AMI, either as rental units or as owner-occupied units with restrictions on resale prices, with resale and rental prices tied to affordability at 60% AMI, and (iii) provide that a third- party nonprofit or government entity with experience in managing affordable housing units must manage the rental or sale of the Restricted Units robust enforcement mechanisms and reporting requirements. In addition, the Restrictive Covenants will provide that the Restricted Units are prohibited from being used, rented or made available as short term rentals, as that term is defined in the Bozeman Municipal Code. The affordability requirements in the Restrictive Covenants will be index-based, tied to AMI, and pursuant to the Restrictive Covenants, permissible rental and sale/resale prices of the Restricted Units will be based on the most recent affordability data available through the Housing and Urban Development’s Housing Availability Data System or other similar affordability data that is available at the time of rental or sale/resale. The Developer’s covenants described in this Section 3.12 are referred to herein as the “Affordable Housing 196 Resolution 5546, Approving an Amendment to a Development Agreement for a Project in the Midtown URD Known as the Lumberyard Project 4 Covenants.” The Developer acknowledges and agrees that the Affordable Housing Covenants are fundamental to the City’s agreements hereunder. The Parties acknowledge that, as development proceeds at the West Block, it may be necessary or desirable to record other instruments to implement the Affordable Housing Covenants and provide for the affordability of the Restricted Units, either in addition to or in replacement of the Restrictive Covenants to be recorded as a condition to reimbursement of the Developer under this Agreement, and the Parties agree to cooperate with respect to recording such other instruments if necessary or desirable. The Developer acknowledges that, as determined by the City, one-person household pricing relates to studios, two-person household pricing relates to one bedroom units, three-person household pricing relates to two bedroom units, and four-person household pricing relates to three bedroom units. The City and the Developer acknowledge that the Restrictive Covenants terminate in the event that the affordable housing project is acquired by foreclosure, and the City and the Developer agree that any such termination of the Restrictive Covenants shall constitute an event of default hereunder.” 2.03.Approval of the Development Agreement, amended and supplemented as described in this Section 2, is hereby ratified and confirmed. 197 Resolution 5546, Approving an Amendment to a Development Agreement for a Project in the Midtown URD Known as the Lumberyard Project 5 PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 24 day of October, 2023. ___________________________________ CYNTHIA ANDRUS Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 198 CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE I, the undersigned, being the duly qualified and acting recording officer of the City of Bozeman, Montana (the “City”), hereby certify that the attached resolution is a true copy of Resolution No. 5546 entitled: “RESOLUTION APPROVING AN AMENDMENT TO A DEVELOPMENT AGREEMENT FOR A PROJECT IN THE MIDTOWN URBAN RENEWAL DISTRICT KNOWN AS THE LUMBERYARD PROJECT” (the “Resolution”), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Commission of the City at a regular meeting on October 24, 2023, and that the meeting was duly held by the City Commission and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. I further certify that, upon vote being taken on the Resolution at said meeting, the following Commission members voted in favor thereof: ; voted against the same: ; abstained from voting thereon: ; or were absent: . WITNESS my hand and seal officially this 24 day of October, 2023. (SEAL) __________________________________ MIKE MAAS City Clerk 199 Resolution 5546, Approving an Amendment to a Development Agreement for a Project in the Midtown URD Known as the Lumberyard Project A-1 EXHIBIT A [Form of Revised Restrictive Covenants] 200 MBOH - DRC Page 1 After recording return to: Montana Board of Housing Multifamily Program P.O. Box 200528 Helena, MT 59620-0528 DECLARATION OF RESTRICTIVE COVENANTS FOR LOW-INCOME HOUSING CREDITS FOR 15Patrick Apartments THIS DECLARATION OF RESTRICTIVE COVENANTS (this "AGREEMENT"), dated as of the date of its execution specified below, by 14th& Patrick Limited Partnership, and their successors and assigns (the "Owner") is given as a condition precedent to the allocation of low-income housing credits by the Montana Board of Housing, an agency of the State of Montana (together with any successor to its rights, duties and obligations, the "Board"). W I T N E S S E T H: WHEREAS, the Owner is or will be the owner of a rental housing development located in the State of Montana on lands more particularly described in Exhibit A-1, attached hereto and incorporated herein by reference (together with all existing and later constructed buildings and improvements, the “Project”); and WHEREAS, as specified in Exhibit A-1, the land upon which the Project is located (the “Project Land”) is either owned by Owner or leased by Owner from the landowner as provided in and subject to a ground lease, and if the Project Land is leased by Owner pursuant to a ground lease (the “Lease”), such ground lease is attached as Exhibit B and incorporated herein by reference; and WHEREAS, if the Project Land is leased by Owner pursuant to a ground lease as specified in Exhibit A-1, notwithstanding anything to the contrary contained in this Agreement, the terms of the Lease shall control in the event of any conflict between this Agreement and the Lease; and WHEREAS, all of the Owner’s right, title and interest in and to the Project is subject to this Agreement, including but not limited to all buildings, structures and improvements, and, as applicable, the Project Land or the Owner’s leasehold interest in the Project Land, and as used in this Agreement, the term “Project” includes all such right, title and interest of Owner in the Project, including in the Project Land; and WHEREAS, the Board has been designated by the Governor of the State of Montana as the housing credit agency for the State of Montana to make allocations of low-income housing tax credit dollars (the "Credit") for the State and to carry out the provisions of Section 42 of the Internal Revenue Code of 1986, as amended (the "Code"); and WHEREAS, the Owner has applied to the Board for an allocation of Credit to the Project in the Credit Allocation Amount specified in Exhibit A-2, attached hereto and incorporated herein by reference (“Exhibit A-2”) (or in such other amount as is determined by the Board and set forth in IRS Form 8609 upon final allocation of the Credit); and 201 MBOH - DRC Page 2 WHEREAS, the Owner has represented and committed to the Board in the Owner's Low-Income Housing Tax Credit Application (the "Application") that, for the duration of this Agreement: (i) the Owner shall lease that certain percentage of the units in the Project specified in Exhibit A-2 as the Low-Income Occupancy Percentage (the “Low-Income Occupancy Percentage” and such units, the "Low-Income Units") to individuals or families whose income is at or below the percentage(s) of the area median gross income (as adjusted for family size) specified in Exhibit A-2 as the Income Restrictions (the “Income Restrictions” and those individuals or families meeting the Income Restrictions, the "Low-Income Tenants") as determined in accordance with the Code; (ii) the Owner shall target such percentage of the Low-Income Units to tenants whose income is at or below the percentages of median income specified in Exhibit A-2 as the Targeting Requirements (the “Targeting Requirements”); (iii) the Owner shall not charge Low-Income Tenants gross lease or rent payments (“Rent”) exceeding the percentages of Area Median Income specified in Exhibit A-2 as the Rent Restrictions (the “Rent Restrictions”)(the Low-Income Occupancy Percentage, the Income Restrictions, the Targeting Requirements and the Rent Restrictions together referred to herein as the “Occupancy Restrictions”); and in its Application represented and committed to certain additional specifications and characteristics for the Project, specified in Exhibit A-2 as Additional Project Specifications, upon which the Board relied in making its reservation of housing tax credits for the Project and which shall be binding upon the Owner and the Project; and WHEREAS, the Board has determined that the Project qualifies for a Credit allocation, subject to completion of all applicable requirements, in an amount to be determined by the Board and set forth in IRS Form 8609 upon final allocation of the Credit; and WHEREAS, the Project is eligible for a Credit allocation only if the Project will be subject to a binding commitment to maintain the Project as low-income housing for the initial 15-year compliance period plus an additional period of years, together specified in Exhibit A-2 as the Commitment Period (the “Commitment Period”), as provided in and subject to subsection 5(a), including without limitation certain Occupancy Restrictions and Transfer restrictions as set forth in this Agreement (the “Transfer Restrictions”); and WHEREAS, in the Application, the Owner committed to maintain the Project as low-income housing for the full duration of the Commitment Period; and WHEREAS, as a condition of allocation of the low-income housing tax credits as described herein, the Board’s Qualified Allocation Plan (“QAP”) requires that the Owner waive and forfeit the right to request that the Board locate a non-profit qualified buyer (the “qualified contract process”), agree to maintain the Low-Income Units through the entire Commitment Period, and agree that the Commitment Period may not be terminated early through the qualified contract process; and WHEREAS, the Code requires as a condition precedent to the allocation of the Credit that the Owner execute, deliver and record in the official land deed records of the county in which the Project is located this Agreement in order to create certain covenants running with the Project for the purpose of enforcing the Occupancy Restrictions, Transfer Restrictions and other requirements of Section 42 of the Code by regulating and restricting the use, occupancy and transfer of the Project as set forth herein; and WHEREAS, the Board further requires as a condition precedent to the allocation of the Credit that the Owner execute, deliver and record in the official land deed records of the county in which the Project is located this Agreement, in order to create certain covenants running with the Project that the Owner and the Project shall be subject to applicable requirements, including without limitation operating and replacement reserves, record- keeping, reporting, training, certification, audit, inspection and other compliance and enforcement requirements and payment of related fees to the Board, as set forth in Section 42 of the Code, and the Board’s rules, guidelines and Applicable QAP (such requirements and fees together referred to as the “Compliance Provisions”); and WHEREAS, the Board further requires as a condition precedent to the allocation of the Credit that the Owner execute, deliver and record in the official land deed records of the county in which the Project is located this Agreement, in order to create certain covenants running with the Project (the “Enforcement Provisions”) for the 202 MBOH - DRC Page 3 purpose of enforcing the Occupancy Restrictions, Transfer Restrictions, the Energy and Green Building Requirements specified in Exhibit A-3, attached hereto and incorporated herein by this reference (the “Energy and Green Building Requirements”) and Compliance Provisions (the Occupancy Restrictions, Transfer Restrictions, Energy and Green Building Requirements, Compliance Provisions and Enforcement Provisions together referred to herein as the “Covenants”); and WHEREAS, the Owner, under this Agreement, intends, declares and covenants that all Covenants set forth herein, including without limitation the regulatory and restrictive covenants governing the use, occupancy and transfer of the Project, shall be and are covenants running with the Project for the term stated herein (including without limitation any applicable Tenant Protection Period during which the Tenant Protections shall continue in effect, as set forth in subsection 5(d)) and binding upon all subsequent owners of the Project Land for such term and are not merely personal covenants of the Owner; NOW, THEREFORE, in consideration of the promises and covenants hereinafter set forth, and of other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Owner agrees as follows: Section 1. Definitions. Words and phrases used herein shall have the same meaning as set forth in Section 42 of the Code, in regulations pertaining thereto promulgated by the Department of Treasury, the Department of Housing and Urban Development or another authorized federal agency or in the Board Requirements. (a) References herein to “median income” or “Area Median Income” mean the area median gross income as adjusted for family size. (b) References herein to “Board Requirements” mean and include the Board’s rules, guidelines, Applicable QAP. (c) References herein to “Applicable QAP” mean the Board’s QAP (designated by year) that is applicable for purposes of the particular issue, process, criteria, standard, requirement, fee, determination or award as specified in the Board’s most recently adopted QAP. Section 2. Recording and Filing; Covenants To Run With the Project; Consent of Prior Lien Holders. (a) Upon execution and delivery by the Owner, the Owner shall cause this Agreement and all amendments hereto to be recorded and filed in the official public land deed records of the county in which the Project is located and shall pay all fees and charges incurred in connection therewith. Upon recording, the Owner shall immediately transmit to the Board an executed original of the recorded Agreement and any amendment showing the date of recording and recording references. The Owner acknowledges and agrees that the Board will not issue a Carryover Commitment or the Internal Revenue Service Form 8609 constituting final allocation of the Credit unless and until the Board has received the recorded executed original of the Agreement. (b) The Owner intends, declares and covenants, on behalf of itself and all future owners and operators of the Project during the term of this Agreement, that this Agreement and the Covenants, including without limitation those regulating and restricting the use, occupancy and transfer of the Project: (I) shall be and are covenants running with the Project, encumbering the Project for the term of this Agreement, binding upon the Owner's successors in title and all subsequent owners and operators of the Project, (ii) are not merely personal covenants of the Owner, and (iii) shall bind the Owner (and the benefits shall inure to the Board and any past, present or prospective tenant of the Project) and its respective successors and assigns during the term of this Agreement. The Owner hereby agrees that any and all requirements of the laws of the State of Montana to be satisfied in order for the provisions of this Agreement to constitute Project ownership restrictions and covenants running with the Project are and shall be deemed to be satisfied in full, or, in the alternate, that an equitable servitude has been created to insure that these restrictions run with the Project. For the longer of the period this Credit is claimed or the term of this Agreement, each and every contract, deed, bill of sale, assignment or other instrument hereafter executed conveying or providing for the conveyance of the Project or any portion thereof shall expressly provide 203 MBOH - DRC Page 4 that such conveyance is subject to this Agreement; provided, however, this Agreement and the Covenants shall survive and be effective regardless of whether such contract, deed, bill of sale, assignment or other instrument hereafter executed conveying or providing for the conveyance of the Project or any portion thereof provides that such conveyance is subject to this Agreement. (c) The Owner covenants to obtain a written agreement of any prior recorded lienholder on the Project, subordinating such lien to this Agreement, and the obtaining and submission to the Board of such written subordination agreement shall be a condition precedent to the issuance of Internal Revenue Service Form 8609 constituting final allocation of the Credit. Section 3. Representations and Warranties of the Owner. The Owner hereby represents and warrants as follows: (a) The Owner: (i) is an entity of the type and duly organized under the laws of the state specified under Entity Type and State in Exhibit A-2; (ii) is authorized to transact business in the State of Montana; (iii) has the power and authority to own its properties and assets and to carry on its business as now being conducted and as represented in its Credit Application; and (iv) has the full legal right, power and authority to execute and deliver this Agreement. (b) The execution, recording and performance of this Agreement by the Owner: (i) have been duly authorized by all necessary action; (ii) do not violate any provision of law, rule or regulation or any order of any court or other agency or governmental body applicable to Owner, or Owner’s properties, assets or liabilities; (iii) do not conflict with, violate or constitute a default under any provision of any indenture, agreement, mortgage, mortgage note or other instrument to which the Owner is a party or by which it or the Project is bound; and (iv) will not result in the creation or imposition of any prohibited encumbrance of any nature. (c) The Owner will, at the time of execution and delivery of this Agreement, have (i) good and marketable title to the premises constituting the Project free and clear of any lien or encumbrance (subject to encumbrances created pursuant to this Agreement or other permitted encumbrances), or (ii) a lease of the Project Land effective for a period at least as long as the Commitment Period specified in subsection 5(a). (d) There is no action, suit, investigation or proceeding at law or in equity or by or before any court, governmental instrumentality or other agency now pending or, to the knowledge of the Owner, threatened against or affecting it or any of its properties or rights which, if adversely determined, would materially impair its right to carry on business substantially as now conducted, as represented in its Credit Application or as now contemplated by this Agreement, or that would materially adversely affect its financial condition. (e) The Project constitutes or upon placement in service will constitute a qualified low-income building or qualified low-income project, as applicable, as defined in Section 42 of the Code and applicable Regulations. (f) Each unit in the Project contains or upon placement in service will contain complete facilities for living, sleeping, eating, cooking and sanitation (unless the Project qualifies as a single-room occupancy project or transitional housing for the homeless) which are to be used on other than a transient basis. (g) Each Low-Income Unit is or upon placement in service will be suitable for occupancy in accordance with Section 42 of the Code and applicable local health, safety and building codes. Section 4. Owner’s Covenants and Agreements. A. Occupancy Requirements. Owner covenants and agrees throughout the term of this Agreement that: (i) Income Election Set Aside. The Owner shall meet and comply, in accordance with Section 42 of the 204 MBOH - DRC Page 5 Code and Board Requirements, with the Income Election Set Aside in subsection (a), (b) or (c) that is specified as the Income Election Set Aside in Exhibit A-2 (the “Income Election Set Aside”): (a) 20-50 Test: At least 20% or more of the residential units in the Project are both rent-restricted and occupied by individuals whose income is 50% or less of area median income (the “20-50 Test”); (b) 40-60 Test: At least 40% or more of the residential units in the Project are both rent-restricted and occupied by individuals whose income is 60% or less of area median income (the “40-60 Test”); or (c) Average Income Test: At least 40% or more of the residential units in the Project are both rent-restricted and occupied by individuals whose income does not exceed the imputed income limitation designated by the taxpayer with respect to the respective unit, where: (I) such designated imputed income limitations shall be in 10% increments from 20% to 80% of area median gross income, (II) the average of the designated imputed income limitations shall not exceed 60% of area median gross income, and (III) the units with respect to which an imputed income limitation has been designated shall be proportionately dispersed among the different unit sizes and buildings in the Project (the “Average Income Test”). (ii) Low-Income Occupancy Percentage; Income Restrictions. The Owner shall lease the Low-Income Units (i.e., a percentage of the units in the Project that equals the Low-Income Occupancy Percentage specified in Exhibit A-2) to Low-Income Tenants (i.e., at or below the Income Restrictions specified in Exhibit A-2). (iii) Targeting Requirements. The Owner shall target such percentage of the Low-Income Units to tenants whose income is at or below the percentages of median income as set forth in the Targeting Requirements in Exhibit A-2. (iv) Rent Restrictions. The Owner shall not charge Low-Income Tenants Rent exceeding the percentages specified in the “Rent Restrictions in Exhibit A-2. (v) Changes in Targeting Requirements or Rent Restrictions. Except as provided in subsection 4.A.v.I below, the Targeting Requirements or Rent Restrictions of units may be changed only if the Board, in its sole discretion, determines that maintaining such Targeting Requirements or Rent Restrictions would cause undue hardship for the Project and approves such changes in writing. (I) To the extent permitted by federal law, the Targeting Requirements (percentages of area median gross income) assigned to specific units may be changed from time to time so long as: (A) the average of the designated imputed income limitations for all Low-Income Units subject to the Average Income Test does not exceed 60% of area median gross income at any time; (B) the assignment of the various Targeting Restrictions (percentages of area median gross income) among the various unit sizes (i.e., 1-bedroom, 2-bedroom, etc.) remain at substantially the same proportions as originally established in accordance with the Project’s Application; (C) the applicable Targeting Restriction for any unit does not change during the tenancy of any tenant; and (D) the Owner notifies the Board in writing of the changes prior to the effective date of such changes. The Board may disapprove any such changes that fail to meet the foregoing requirements upon written notice to the Owner and such disapproval shall be effective prospectively with respect to tenant rental agreements entered into after the date of such notice. The Owner shall remain solely responsible for compliance with all applicable federal tax credit set aside requirements and neither this subparagraph nor the Board’s disapproval or failure to disapprove of any such changes shall be deemed to constitute a representation or warranty by the Board of such compliance. (vi) Eviction; Rent Increases. The Owner shall not (i) evict or terminate the tenancy of an existing tenant of any low-income unit other than for good cause, or (ii) impose any increase in the Rent with respect to any low- income unit not otherwise permitted under Section 42 of the Code or Board Requirements. (vii) General Public Tenants. All Low-Income Units shall be leased and rented or made available to members of the general public who qualify as Low-Income Tenants (or otherwise qualify for occupancy of the Low-Income 205 MBOH - DRC Page 6 Units) under the Income Restrictions/Income Election Set Aside specified in Exhibit A-2. (viii) Fair Housing Act. The Owner agrees to comply fully with the requirements of the Fair Housing Act as it may from time to time be amended. (ix) Suitability for Occupancy. Each Low-Income Unit is and will remain suitable for occupancy in accordance with Section 42 of the Code and applicable local health, safety and building codes. (x) Section 8 Tenants. The Owner shall not refuse to lease any Low-Income Unit to a holder of a voucher or certificate of eligibility under Section 8 of the United States Housing Act of 1937 because of the status of the prospective tenant as such a holder. B. Transfer Restrictions. Owner covenants and agrees throughout the term of this Agreement that: (i) Sale, Transfer or Exchange Subject to Covenants. Subject to the requirements of Section 42 of the Code, Board Requirements and this Agreement, the Owner may sell, transfer or exchange the entire Project at any time, but prior to such sale, transfer or exchange the Owner shall: (a) notify in writing and obtain the written agreement of any buyer, transferee, successor or other person acquiring the Project or any interest therein that such acquisition is subject to this Agreement, Board Requirements and Section 42 of the Code and applicable regulations, including without limitation Owner training and certification requirements; (b) notify the Board in writing in accordance with the requirements of subsection B(ii); and (c) submit to the Board such completed forms, documents and other information as required by the Applicable QAP. This provision shall not act to waive any other restriction on sale, transfer or exchange of the Project or any low-income portion of the Project. The Owner agrees that the Board may void any sale, transfer or exchange of the Project if the buyer, transferee, successor or other person acquiring the Project or any interest therein fails to assume in writing the requirements of this Agreement, the Board Requirements and the requirements of Section 42 of the Code. Notwithstanding the provisions of this subsection, no portion of a building to which this Agreement applies may be sold to any person unless all of such building is sold to such person. (ii) Notification of Transfer. The Owner must provide the Board with at least 120 days advance written notice prior to offering or listing the Project or any Project real property for sale, assignment, transfer or exchange or entering into any agreement for such transaction. The Board may notify prospective buyers of any proposed offering or listing and such prospective buyers may submit offers to Owner to purchase such property. The Owner shall further notify the Board in writing within ten (10) business days of the closing of any such sale, transfer or exchange of the entire Project and shall provide the Board with the written agreement, in the form prescribed by the Board, of the buyer, transferee, successor or other person to assume the requirements of this Agreement, the Board Requirements and Section 42 of the Code, including without limitation Owner training and certification requirements. (iii) Project Retention of Reserves on Sale, Transfer or Exchange. Project replacement and operating reserves and reserve accounts required by applicable law, Board Requirements or this Agreement must be retained by the Project (and transferred to the new owner as applicable) in or as part of any sale, transfer or exchange of the Project. The Owner shall not withdraw or retain any such reserves or reserve accounts in or as part of any sale, transfer or exchange of the Project and the Owner agrees that the Board may void any sale, transfer or exchange of the Project that violates this subsection. (iv) No Demolition or Change in Use. The Owner shall not demolish any part of the Project or substantially subtract from any real or personal property of the Project or permit the use of any residential rental unit for any purpose other than rental housing in compliance with the Covenants during the term of this Agreement unless otherwise required by law. (v) Project Restoration. If the Project, or any part thereof, shall be damaged or destroyed or shall be 206 MBOH - DRC Page 7 condemned or acquired for public use, the Owner shall use its best efforts to repair and restore the Project to substantially the same condition as existed prior to the event causing such damage or destruction, or to relieve the condemnation, and thereafter to operate the Project in accordance with the terms of this Agreement. C. Energy and Green Building Requirements. (i) Conditions of Tax Credit Allocation. The Owner shall comply with the Energy and Green Building Requirements specified in Exhibit A-3. D. Compliance Provisions. Owner covenants and agrees throughout the term of this Agreement that: (i) Compliance with Applicable Requirements. The Owner shall be subject to and comply with all applicable requirements, including without limitation operating and replacement reserves, record-keeping, reporting, training, certification, audit, inspection and other compliance and enforcement requirements and payment of related fees to the Board, as set forth in Section 42 of the Code, and Board Requirements (such applicable requirements and fees together referred to as the “Compliance Provisions”) In addition to the foregoing requirements, the Owner shall comply with all requirements regarding the maintenance, distribution, use and expenditure of replacement and operating reserves as specified in the Owner’s partnership, operating or other governing owner or investor documents or agreements. (ii) Annual Compliance Certification. The Owner shall prepare and submit to the Board a certification of program compliance in the form prescribed by the Board annually on or before the 25th of the month following the assigned annual period. (iii) Tenant Income Certification; Owner’s Compliance Certificate. The Owner shall, unless waived by the Department of Treasury pursuant to Section 42 of the Code, annually obtain and maintain on file from each Low-Income Tenant residing in the Project an updated copy of each tenant's executed Tenant Income Certification and Owner’s Certificate of Continuing Compliance in the form prescribed by the Board. The Owner must submit a copy of each tenant's annual certification to the Board. The determination of whether a tenant meets the low-income requirement shall be made by the Owner at least annually on the basis of the current income of such Low-Income Tenant. (iv) Additional Records. The Owner shall retain the following information for each year for each building in the Project for at least six years after the due date for filing the federal income tax return for such year, and with respect to the first year of the credit period, for at least 6 years beyond the due date for filing the federal income tax return for the last year of the compliance period for the building: (I) the total number of residential rental units in a building (including the number of bedrooms and the size in square feet of each residential rental unit); (ii) the percentage of residential rental units in the building that are Low-Income Units; (iii) the Rent charged on each residential rental unit in the building (including any utility allowances and mandatory fees); (iv) Low-Income Unit vacancies in the building and information showing when, and to whom, the next available units were rented; (v) the annual income certification of each Low-Income Tenant by unit, including annual certifications for each continuous Low-Income Tenant; (vi) documentation to support each Low-Income Tenant's income certification, including a copy of verification of income from third parties or 6 consecutive pay stubs; (vii) the eligible basis and qualified basis of the building at the end of the first year of the credit period; and (viii) the character and use of any nonresidential portion of the building included in the eligible basis of the building. (v) Additional Compliance Monitoring. If at any point following execution of this Agreement, Section 42 of the Code or regulations implementing said section require the Board to undertake additional monitoring of the Owner’s or Project’s compliance with the Occupancy Restrictions or, alternatively, if the Board chooses to undertake additional monitoring of the Owner’s or Project’s compliance with the Occupancy Restrictions, the Owner shall take any and all actions reasonably necessary and required by the Board to substantiate the Owner's compliance with the Occupancy Restrictions and will pay a reasonable fee to the Board for such monitoring activities performed by the Board. 207 MBOH - DRC Page 8 (vi) Inspection. At least once every three years, or more frequently if determined necessary by the Board in its sole discretion, the Owner shall permit, during normal business hours and upon minimal advance notice, any duly authorized representative of the Board to inspect any building in the Project and to inspect any books and records of the Owner regarding the Project with respect to the incomes of Low-Income Tenants and Rents charged to Low-Income Tenants (including utility allowances and mandatory fees) which pertain to compliance with the Occupancy Restrictions. (vii) Additional Compliance Substantiation. The Owner shall submit any other information, documents or certifications requested by the Board which the Board shall deem reasonably necessary to substantiate the Owner's continuing compliance with the Covenants and this Agreement. (viii) Compliance with Covenants. The Owner shall comply with and shall not knowingly take or permit any action or omission that would result in a violation of the requirements of Section 42 of the Code and applicable Regulations, Board Requirements, or of this Agreement. (ix) Reliance Upon Representations. The Owner’s representations and covenants set forth herein may be relied upon by the Board and all persons interested in Project compliance under Section 42 of the Code and the applicable Regulations. E. Enforcement Provisions. Owner covenants and agrees throughout the term of this Agreement that: (i) Actions to Comply with Covenants. Owner shall take any lawful action (including without limitation amendment of this Agreement, as may be necessary in the opinion of the Board) to comply fully with (i) the Code and with all applicable rules, rulings, policies, procedures, regulations or other official statements promulgated or proposed from time to time by the United States Department of the Treasury, the Internal Revenue Service, the Department of Housing and Urban Development or any other authorized governmental agency or instrumentality pertaining to the Owner's obligations under Section 42 of the Code and affecting the Project; (ii) this Agreement and the Covenants; or (iii) Board Requirements. (ii) Action for Specific Performance Authorized. In consideration for receiving low-income housing credits for the Project and for purposes of assuring compliance of the Project and the Owner with this Agreement, Section 42 of the Code and the applicable regulations, and Board Requirements, the Owner hereby acknowledges and agrees that (a) the beneficiaries of the Owner's obligations hereunder cannot be adequately compensated by monetary damages in the event of any default hereunder, and (ii) the Board or any individual who meets the income limitation applicable under this Agreement or Section 42 of the Code (whether a prospective, present or former occupant) shall be entitled, for any breach of the provisions hereof, and in addition to all other remedies provided by law or in equity, to enforce specific performance by the Owner of its obligations under this Agreement in a Montana state court of competent jurisdiction. In the event of default by Owner under the terms of this Agreement, a Limited Partner of the Owner may cure such default on behalf of the Owner according to the provisions of this Agreement. (iii) Actions of Non-Managing Members. Notwithstanding anything contained herein to the contrary, any cure made or tendered by Owner's non-managing members shall be deemed to be a cure by Owner and shall be accepted or rejected on the same basis as if made or tendered by the Owner. Section 5. Term of Agreement. (a) Term. Except as hereinafter provided, this Agreement and the Covenants shall commence with and apply beginning on the first day on which any building which is part of the Project is placed in service and shall terminate on the end of the Commitment Period. The Owner has committed to maintaining and shall maintain the Project as Low-Income Housing subject to the terms of this Agreement for and throughout the entire Commitment 208 MBOH - DRC Page 9 Period specified in Exhibit A-2. (b) Waiver of Qualified Contract Process. Except as specifically otherwise provided in subsection 5(c), this Agreement and the Covenants shall remain binding and effective and the Owner shall comply therewith for and during the entire Commitment Period specified above. By execution and recording of this Agreement, the Owner: (i) waives and forfeits the right to request that the Board locate a non-profit qualified buyer (the “qualified contract process”); (ii) agrees to maintain the Low-Income Units through the entire Commitment Period; and (iii) agrees that the Commitment Period may not be terminated early through the qualified contract process. (c) Partial Termination on Foreclosure. The Occupancy Restrictions, Transfer Restrictions, Compliance Provisions and Enforcement Provisions specified herein, other than the Tenant Protections specified in subsection 5(d), shall terminate with respect to the Project or any Project building on the date the Project or any respective Project building is acquired by foreclosure or instrument in lieu of foreclosure (unless the Secretary of the Treasury determines that such acquisition is part of an arrangement to terminate the Occupancy Restrictions or, except as otherwise provided in the Lease, upon the date that the Lease terminates. (i) Notice of Default or Foreclosure. Owner shall notify the Board within ten business days of the filing of any judicial foreclosure action, receipt of any notice of trustee’s sale, receipt or submission of any proposal for a deed in lieu of foreclosure, receipt of any notice of default under any obligation secured by a mortgage or creation of any judgment lien with respect to the Project or any Project real property and provide MBOH with copies of the complaint, notice of trustee’s sale, deed in lieu of foreclosure proposal, default notice or judgment, as applicable. The Board may notify the United States Secretary of the Treasury if it has reason to believe that any potential foreclosure sale or deed in lieu of foreclosure is part of an arrangement to terminate the LURA restrictions. (d) Tenant Protection Period. In the event of termination as provided by subsection 5(c) above, the Tenant Protections specified in this subsection 5(d) shall remain binding and effective for a period of three years (the “Tenant Protection Period”) following such termination. During the Tenant Protection Period, the Owner shall not (i) evict or terminate the tenancy of an existing tenant of any Low-Income Unit other than for good cause, or (ii) impose any increase in the Rent with respect to any Low-Income Unit not otherwise permitted under Section 42 of the Code (the “Tenant Protections”). The Tenant Protections that apply during the Tenant Protection Period also include the Compliance Provisions and Enforcement Provisions provided hereunder with respect to compliance with and enforcement of the requirements of clauses (i) and (ii) of this subsection 5(d). The Tenant Protection Period shall survive termination of the Lease except as specifically otherwise provided for in the Lease. Section 6. Miscellaneous. (a) Severability. The invalidity of any clause, part or provision of this Agreement shall not affect the validity of the remaining portions thereof. (b) Notices. All notices to be given pursuant to this Agreement shall be in writing and shall be deemed given when mailed by certified or registered mail, return receipt requested, to the parties hereto at the addresses set forth below, or to such other address(es) as a party may from time to time designate in writing. To the Board: Montana Board of Housing P. O. Box 200528 Helena, MT 59620-0528 Attn: LIHTC Program To the Owner: See Owner’s Notice Address in Exhibit A-2. The Board and the Owner may, by notice given hereunder, designate any further or different address(es) to which subsequent notices, certificates or other communications shall be sent. 209 MBOH - DRC Page 10 (c) Amendment. The Owner agrees that it will take all actions necessary to effect amendment of this Agreement as may be necessary to comply with the Code and any and all applicable rules, regulations, policies, procedures, rulings or other official statements pertaining to the Credit. (d) Release and Indemnification. The Owner hereby agrees to pay, indemnify and hold the Board harmless from any and all claims, losses, demands, suits, judgments, costs, expenses and fees, including all reasonable attorneys' fees which may be incurred by the Board, arising from or relating to this Agreement, allocation of the Credit or recapture of the Credit. The Owner agrees to release the Board from and to indemnify the Board for any claim, loss, demand or judgment as a result of the allocation of tax credit dollars to the Project or the recapture of same by the Internal Revenue Service. (e) Attorney Fees. The Owner hereby agrees to pay the Board’s reasonable attorneys’ fees and costs incurred in enforcing this Agreement, whether the same shall be enforced by suit or otherwise. The Owner also hereby agrees to pay the Board’s costs, fees and expenses, including all reasonable fees and expenses of the Board's Counsel, which may be incurred in connection with any amendment to this Agreement, whether such amendment is at the request of the Owner or the Board. (f) Priority, Subordination or Termination of Agreement. This Agreement shall apply according to its terms and shall have priority over any subsequently recorded or any subordinated mortgage or other instrument, except as otherwise provided in any subordination agreement executed by the Board. In the event of termination as provided in subsection 5(c), the Covenants, other than the Tenant Protections specified in subsection 5(d), shall terminate, but the Tenant Protections shall thereafter remain valid and effective during the 3-year Tenant Protection Period specified in subsection 5(d) and or Section 42 of the Code. In the event of Lease termination, the Tenant Protection Period shall survive termination of the Lease except as specifically otherwise provided for in the Lease. (g) Governing Law. This Agreement shall be governed by the laws of the State of Montana and, where applicable, the laws of the United States of America. (h) Survival of Obligations. The obligations of the Owner as set forth herein and in the Application shall survive the allocation of the Credit and shall not be deemed to terminate or merge with the awarding of the allocation. (i) Agreement Controlling. Except with respect to the Lease or a Prior Declaration as provided in subsection 6(j), if applicable, the Owner shall not execute any other agreement with provisions contradictory to, or in opposition to, the provisions of this Agreement, and, in any event, the terms of this Agreement are paramount and controlling as to the rights and obligations herein set forth and supersede any other requirements in conflict herewith. (j) Conflict with Prior Declaration. If a separate Declaration of Restrictive Covenants for Low-Income Housing Credits (the “Prior Declaration”) was recorded prior to this Agreement with respect to a previous Credit award for the Project, the Prior Declaration is identified in Exhibit A-2 and shall remain effective according to its terms; provided, however, that in the event of any conflict between the terms of this Agreement and any Prior Declaration: (i) the term of this Agreement or the Prior Declaration that is more protective of or beneficial to tenants shall control and continue to apply with respect to each tenant whose tenancy existed as of the date of recording of this Agreement for so long as such tenancy shall continue; and (ii) the requirements of this Agreement shall control with respect to each tenant whose tenancy commences after the date of recording of this Agreement (regardless of whether the terms of this Agreement are more or less protective of or beneficial to tenants than the Prior Declaration). (k) Exceptions, Waivers and Variances. Subject to applicable laws, the Board may in its discretion grant an exception, waiver or variance from any restriction, requirement or other term of this Agreement, and may impose any condition(s) or limitations it deems appropriate upon any such exception, waiver or variance. As a condition of considering any request for an exception, waiver or variance, the Board may require the Owner to 210 MBOH - DRC Page 11 submit supporting information, documentation, and justification for the request. [Signature Page Follows:] 211 MBOH - DRC Page 12 IN WITNESS WHEREOF, the Owner has caused this Agreement to be executed by its duly authorized representative on: 14th & Patrick Limited Partnership., a Montana Limited Partnership EIN: 92-1523316 By: 14th & Patrick Limited Partnership 14th & Patrick GP, LLC, its General Partner By: ____________________________ Nicholas Walton, its Manager Date of Document: [SEAL] STATE OF ) ) ss. COUNTY OF ) On this day of , 20 , before me a notary public for the state of ________________________, personally appeared , the ______________________ for ______________________, the entity which is subscribed to the within instrument, and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument, the entity upon behalf of which he/she acted executed the instrument. In witness whereof, I have hereunto set my hand and affixed my notarial seal on the day and year first- above written. ________________________________ Notary Public for the State of _________ (Notarial Seal/Stamp Above) 212 MBOH - DRC Page 13 By: 14th & Patrick Limited Partnership 14th & Patrick GP, LLC, its General Partner By: ____________________________ Nicholas Walton, its Manager Date of Document: [SEAL] STATE OF ) ) ss. COUNTY OF ) On this day of , 20 , before me a notary public for the state of ________________________, personally appeared , the ______________________ for ______________________, the entity which is subscribed to the within instrument, and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument, the entity upon behalf of which he/she acted executed the instrument. In witness whereof, I have hereunto set my hand and affixed my notarial seal on the day and year first-above written. ________________________________ Notary Public for the State of _________ (Notarial Seal/Stamp Above) 213 MBOH - DRC Page 14 Exhibit A-1 (Legal Description of Project Land) ☒ The following described land upon which the Project is located is owned by the Owner and such land is subject to the terms of this Agreement. ☐ The following described land upon which the Project is located is leased by Owner from the owner of the land, as provided in and subject to the ground lease (the “Lease”) attached as Exhibit B and such land is subject to the terms of this Agreement to the extent and as provided in the Lease. The Project is located on land located in the City of Bozeman, County of Gallatin, State of Montana, more particularly described as follows: The Land referred to herein below is situated in the County of GALLATIN, State of Montana, and is described as follows: Lot 1 in Block 2 of Amended PT Land Subdivision Phase 2, tracts of land being Lots 1 and 2, Block 3, of the PT Land Phase 2 Subdivision (Plat J-498) and Lot 3A of the Amended Plat of Lot 3, Block 3, and Lot 6A of the PT Land Phase 2 Subdivision (Plat J-498A), City of Bozeman, Gallatin County, Montana, according to the official plat thereof on file and of record in the office of the County Clerk and Recorder of Gallatin County, Montana. (Plat Reference: J-498B) 214 MBOH - DRC Page 15 Exhibit A-2 1. Additional Project Specifications: 15Patrick (Family) 1500 N 15th Ave Bozeman, MT 59715 Buildings: 1 Low Income Units: 155 (67-1 bdrms at 60%, 43-2 bdrms at 60%. 45-3 bdrms at 60%) Any substantial changes to the Project from the Project as represented and described in the original Application must be approved in writing by the Board as provided in the Applicable QAP. 2. Owner’s Notice Address: 14th & Patrick Limited Partnership Reuter Walton 4450 Excelsior Boulevard, Suite 400 St. Louis Park, MN 55416 3. Entity Type and State: Entity Type: Limited Partnership State of Formation: Minnesota 4. Credit Allocation Amount: $2,355,122, annually (or such other amount as determined by the Board and set forth in IRS Form 8609 upon final allocation of the Credit). 5. Low-Income Occupancy Percentage:100% of the units will be leased to Low-Income Tenants. 6. Income Restrictions/Income Election Set-aside: Per Section 42 of the Code, the Owner has elected and the following Income Election Set Aside and Income Restrictions shall apply to the Project: a. ☐ 20-50 Test. b. ☒ 40-60 Test. c. ☐ Average Income Test. 7. Targeting Requirements: (49% and 55% targeting are not allowed with Average Income projects) Of the units will be income targeted to 20% or less of Area Median Income Tenants Of the units will be income targeted to 30% or less of Area Median Income Tenants Of the units will be income targeted to 40% or less of Area Median Income Tenants Of the units will be income targeted to 49% or less of Area Median Income Tenants Of the units will be income targeted to 50% or less of Area Median Income Tenants Of the units will be income targeted to 55% or less of Area Median Income Tenants 155 Of the units will be income targeted to 60% or less of Area Median Income Tenants 215 MBOH - DRC Page 16 Of the units will be income targeted to 70% or less of Area Median Income Tenants Of the units will be income targeted to 80% or less of Area Median Income Tenants Of the units will be income targeted to Market Tenants 8. Rent Restrictions: Of the units will have Rents based on 20% of Area Median Income Of the units will have Rents based on 30% of Area Median Income Of the units will have Rents based on 40% of Area Median Income Of the units will have Rents based on 50% of Area Median Income 155 Of the units will have Rents based on 60% of Area Median Income Of the units will have Rents based on 70% of Area Median Income Of the units will have Rents based on 80% of Area Median Income Of the units will have Rents based on the market 9. Commitment Period: The Commitment Period for the Project is 50 years (consisting of an Extended Use Period that includes the initial 15-year Compliance Period plus a period of 35 years beyond and in addition to the initial 15-year compliance period). 10. Unit amenities include but are not limited to: Air Conditioning, Dishwasher, Microwave, Washer/Dryer in unit. 11. Project or site amenities include but are not limited to: Community Room, Outdoor community area, play area, and Hotspot/Wi-Fi 12. Rent Increases For existing tenants, rent increases in any calendar year shall not exceed the lesser of any rent increase permitted under: (a) Section 42 of the Code; or (b) Board Requirements. 13. Prior Declaration (for Resyndication Projects): None 14. Type of Project: (as noted in application) (select all that apply) ☒ Family ☐ Elderly (55+) ☐ Elderly (62+) ☐ Supportive ☐ Other: 216 MBOH - DRC Page 17 EXHIBIT A-3 (Energy and Green Building Requirements) See attached Architects letter and Green Initiatives Form 217 Memorandum REPORT TO:City Commission FROM:David Fine, Economic Development Manager Brit Fontenot, Economic Development Director Jeff Mihelich, City Manager SUBJECT:Resolution 5548 Approving Certain Infrastructure Improvements as an Urban Renewal Project with Respect to the Downtown Bozeman Improvement District and the Bozeman Midtown Urban Renewal District; Making Findings with Respect Thereto and Approving the Use of Tax Increment Revenues to Reimburse Costs Thereof and Approving a Related Development Agreement for the Mendenhall Street Sanitary Sewer from 5th Avenue to Grand Avenue MEETING DATE:October 24, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION:I move to approve Resolution 5548. STRATEGIC PLAN:4.4 Vibrant Downtown, Districts & Centers: Promote a healthy, vibrant Downtown, Midtown, and other commercial districts and neighborhood centers – including higher densities and intensification of use in these key areas. BACKGROUND:The Midtown and Downtown Urban Renewal Districts host numerous 100+ year old sewer mains that do not meet current city standards and cannot accommodate new infill development. Current city policies require developers to pay the cost of upgrading these sewer mains when they are inadequate to meet new capacity demand for the project. The 5th and Main Apartments Project is located at the corner of N. 5th Avenue and Main Street, at the former location of the Bamboo Garden restaurant. The Developer of the project must upgrade the sewer main under N. 5th Ave. and W. Mendenhall St. to Grand Ave. to serve the increased demand on the system generated by the project. The project will benefit property owners along the entire extent of the route with a sewer main meeting the current standard. The new sewer main will also facilitate redevelopment in the Midtown and Downtown Urban Renewal Districts (URDs). North 5th Avenue constitutes the boundary between the Midtown URD and the Downtown URD and that boundary extends east along Mendenhall St. to N. 3rd Ave. and into the Downtown URD. By parcel area, 58% of the property area served by the new sewer main would serve the Midtown URD and 42% of the area served is inside the Downtown URD. 218 The proposed upgrade of this sewer main utilizes four sources of funds. The Developer is paying for the costs of design and construction administration and any amount over the engineer’s estimate of $1.3 million. Developer: Design and Construction Administration Costs. City Sewer Fund $500,000 Midtown URD: $464,000 (58% property area) Downtown URD: $336,000 (42% property area) Developer: Costs over $1.3M The City will reimburse $500,000 from the sewer fund upon completion of the project. Payment of the funds from the Downtown and Midtown URDs will occur when the project receives a Certificate of Occupancy upon completion. This payment timing ensures that no URD funds are spent until the project creates new taxable value—the payback mechanism to the City. The project does three good things from a public policy perspective: It replaces aging public infrastructure, it creates redevelopment potential for any property served by the new sewer main, and it facilitates new housing units with significant new taxable value. Since the developer will need to borrow money to build the sewer main, an additional agreement allows their lender to be repaid directly in the event of a default. The project requires three agreements which the City Commission is considering on today’s consent agenda. 1. Agreement for Infrastructure Improvements a. Reimbursement of $500,000 from sewer maintenance funds 2. Resolution 5548 - Development Agreement a. Reimbursement at certificate of occupancy with urban renewal funds 3. Subordination of Development Agreement and Agreement for Infrastructure Improvements a. Allows direct repayment of the lender by the City UNRESOLVED ISSUES:None at this time. ALTERNATIVES:At the direction of the City Commission. FISCAL EFFECTS:Funding for this Development Agreement is subject to future appropriations. If this agreement is approved, staff will include an appropriations request for the Downtown Urban Renewal District and the Midtown Urban Renewal District for the Fiscal Year 2025 or 2026 budget to reimburse the eligible costs of the sewer construction. Attachments: Resolution 5548 approving 5th and Main project.docx BZN Development Agreement -- 5th and Main.v3.docx 5th & Main Sewer Upgrade Option 2.pdf 219 Report compiled on: October 10, 2023 220 RESOLUTION NO. 5548 RESOLUTION APPROVING CERTAIN INFRASTRUCTURE IMPROVEMENTS AS AN URBAN RENEWAL PROJECT WITH RESPECT TO THE DOWNTOWN BOZEMAN IMPROVEMENT DISTRICT AND THE BOZEMAN MIDTOWN URBAN RENEWAL DISTRICT; MAKING FINDINGS WITH RESPECT THERETO AND APPROVING THE USE OF TAX INCREMENT REVENUES TO REIMBURSE COSTS THEREOF AND APPROVING A RELATED DEVELOPMENT AGREEMENT BE IT RESOLVED by the City Commission (the “Commission”) of the City of Bozeman, Montana (the “City”), as follows: Section 1 Recitals. 1.01.Under the provisions of Montana Code Annotated, Title 7, Chapter 15, Parts 42 and 43, as amended (the “Act”), the City is authorized to create urban renewal areas, prepare and adopt an urban renewal plan therefor and amendments thereto, undertake urban renewal projects therein, provide for the segregation and collection of tax increment with respect to property taxes collected in such areas, and apply tax increment revenues to pay eligible costs. 1.02. Pursuant to the Act and Ordinance No. 1685 adopted by the City Commission of the City (the “City Commission”)on November 27, 2006, as amended and supplemented by Ordinance No. 1925, adopted by the City Commission on December 16, 2015 (as so amended and supplemented, the “M-URD Ordinance”), the City has created the Bozeman Midtown Urban Renewal District (the “M-URD”) as an urban renewal district and has approved the Bozeman Midtown Urban Renewal Plan (the “M-URD Plan”) as an urban renewal plan in accordance with 221 Resolution 5548, Approving Infrastructure Improvements in the Downtown Bozeman Improvement District and Midtown Urban Renewal District in Connection with a Project Known as the 5 th and Main Project 2 the Act, which M-URD Plan provides for the segregation and collection of tax increment revenues with respect to the M-URD. 1.03. Pursuant to the Act and Ordinance No. 1409, adopted by the City Commission on November 20, 1995, as amended and supplemented by Ordinance No. 1628, adopted by the City Commission on March 7, 2005 (as so amended and supplemented, the “DBID Ordinance”), the City has created the Downtown Bozeman Improvement District (the “DBID”) as an urban renewal district and has approved the City of Bozeman Urban Renewal Plan (the “DBID Plan”) as an urban renewal plan in accordance with the Act, which DBID Plan provides for the segregation and collection of tax increment revenues with respect to the DBID. 1.04. Freestone on Main, LLC (the “Developer”) proposes to undertake the construction of a new residential and mixed use project, expected to consist of the design, engineering and construction of approximately 121 residential units and 1,700 square feet of leasable space for office or retail use, together with related improvements (collectively, the “Project”), on land located in the DBID at 421, 411 and 407 West Main Street, Bozeman, Montana. In connection with the Project, the Developer desires to construct improvements to the City’s municipal sanitary sewer system that will benefit the Project as well as future development in the M-URD and DBID, including the removal and replacement of aged six-inch sanitary sewer main lines with new eight-inch sanitary sewer main in Mendenhall Street from 5th Avenue to Grand Avenue and appurtenant work (the “Infrastructure Improvements”), which Infrastructure Improvements are located in the M-URD and the DBID. The Developer has requested that the City use tax increment of the DBID and the M-URD to reimburse it for a portion of the costs of the Infrastructure Improvements. Section 2 Approval of the Infrastructure Improvements as an Urban Renewal Project. The Commission hereby approves the Infrastructure Improvements as an urban renewal project under the Act, the DBID Plan and the M-URD Plan. The Infrastructure Improvements 222 Resolution 5548, Approving Infrastructure Improvements in the Downtown Bozeman Improvement District and Midtown Urban Renewal District in Connection with a Project Known as the 5 th and Main Project 3 are contemplated by and within the scope of the DBID Plan and the M-URD Plan, and the costs of the Infrastructure Improvements are eligible for tax increment financing under the Act. Section 3 Findings. The Commission hereby finds with respect to the Infrastructure Improvements as follows: a.no persons will be displaced from their housing by the Infrastructure Improvements; b.the DBID Plan, the M-URD Plan and the Infrastructure Improvements conform to the Bozeman Community Plan or parts thereof for the City as a whole; c.the DBID Plan, the M-URD Plan and the Infrastructure Improvements will afford maximum opportunity, consistent with the needs of the City as a whole, for the rehabilitation or redevelopment of the District by private enterprise; d.taking into account the use of tax increment revenues to reimburse the Developer for a portion of the Infrastructure Improvements, there is expected to be a sound and adequate financial program for the financing of the Infrastructure Improvements; and e.the Infrastructure Improvements constitute an urban renewal project within the meaning of the Act, the DBID Plan and the M-URD Plan. Section 4 Development Agreement; Use of Tax Increment. 4.01. Staff of the City’s Economic Development Department and the Developer have negotiated a Development Agreement, the form of which is attached hereto as Exhibit A. The 223 Resolution 5548, Approving Infrastructure Improvements in the Downtown Bozeman Improvement District and Midtown Urban Renewal District in Connection with a Project Known as the 5 th and Main Project 4 Development Agreement is hereby approved in substantially the form attached. The City Manager, or in the event of his absence or disability, his designee, is hereby authorized and directed to finalize, approve, execute and deliver to the Developer the Development Agreement, substantially in the form attached as Exhibit A, with such changes as such officer shall deem necessary or appropriate. The execution and delivery by an appropriate officer of the City of the Development Agreement shall be conclusive as to the approval of such officer of the terms of the Development Agreement. 4.02. The Commission hereby approves the use of tax increment revenues to reimburse the Developer for costs of the Infrastructure Improvements, subject to the terms and conditions of the Development Agreement. 224 Resolution 5548, Approving Infrastructure Improvements in the Downtown Bozeman Improvement District and Midtown Urban Renewal District in Connection with a Project Known as the 5 th and Main Project 5 PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 17th day of October, 2023. ___________________________________ CYNTHIA ANDRUS Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 225 CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE I, the undersigned, being the duly qualified and acting recording officer of the City of Bozeman, Montana (the “City”), hereby certify that the attached resolution is a true copy of Resolution No. 5548 entitled: “RESOLUTION APPROVING CERTAIN INFRASTRUCTURE IMPROVEMENTS AS AN URBAN RENEWAL PROJECT WITH RESPECT TO THE DOWNTOWN BOZEMAN IMPROVEMENT DISTRICT AND THE BOZEMAN MIDTOWN URBAN RENEWAL DISTRICT; MAKING FINDINGS WITH RESPECT THERETO AND APPROVING THE USE OF TAX INCREMENT REVENUES TO REIMBURSE COSTS THEREOF AND APPROVING A RELATED DEVELOPMENT AGREEMENT” (the “Resolution”), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Commission of the City at a regular meeting on October 17, 2023, and that the meeting was duly held by the City Commission and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. I further certify that, upon vote being taken on the Resolution at said meeting, the following Commission members voted in favor thereof: ; voted against the same: ; abstained from voting thereon: ; or were absent: . WITNESS my hand and seal officially this 17th day of October, 2023. (SEAL) __________________________________ MIKE MAAS City Clerk 226 Resolution 5548, Approving Infrastructure Improvements in the Downtown Bozeman Improvement District and Midtown Urban Renewal District in Connection with a Project Known as the 5 th and Main Project A-1 EXHIBIT A [Form of Development Agreement] 227 DEVELOPMENT AGREEMENT (Fifth and Main) This DEVELOPMENT AGREEMENT (this “Agreement”) is dated as of October 24, 2023, by and between FREESTONE ON MAIN, LLC (the “Developer”) and the CITY OF BOZEMAN, MONTANA, 121 N. Rouse Ave., Bozeman, Montana 59771 (the “City”). The Developer and the City are each individually referred to herein as a “Party” and collectively as the “Parties.” RECITALS: WHEREAS, under the provisions of Montana Code Annotated, Title 7, Chapter 15, Parts 42 and 43, as amended (the “Act”), the City is authorized to create urban renewal areas, prepare and adopt an urban renewal plan therefor and amendments thereto, undertake urban renewal projects therein, provide for the segregation and collection of tax increment with respect to property taxes collected in such areas, and apply tax increment revenues derived from projects undertaken within the urban renewal area to pay eligible costs; WHEREAS, pursuant to the Act and Ordinance No. 1685 adopted by the City Commission of the City (the “City Commission”) on November 27, 2006, as amended and supplemented by Ordinance No. 1925, adopted by the City Commission on December 16, 2015 (as so amended and supplemented, the “M-URD Ordinance”), the City has created the Bozeman Midtown Urban Renewal District (the “M-URD”) as an urban renewal district and has approved the Bozeman Midtown Urban Renewal Plan (the “M-URD Plan”) as an urban renewal plan in accordance with the Act, which M-URD Plan provides for the segregation and collection of tax increment revenues with respect to the M-URD; WHEREAS, pursuant to the Act and Ordinance No. 1409, adopted by the City Commission on November 20, 1995, as amended and supplemented by Ordinance No. 1628, adopted by the City Commission on March 7, 2005 (as so amended and supplemented, the “DBID Ordinance”), the City has created the Downtown Bozeman Improvement District (the “DBID”) as an urban renewal district and has approved the City of Bozeman Urban Renewal Plan (the “DBID Plan”) as an urban renewal plan in accordance with the Act, which DBID Plan provides for the segregation and collection of tax increment revenues with respect to the DBID; and WHEREAS, the Developer proposes to undertake the construction of a new residential and mixed use project, expected to consist of the design, engineering and construction of approximately 121 residential units and 1,700 square feet of leasable space for office or retail use, together with related improvements (collectively, the “Development”), on land located in the DBID at 421, 411 and 407 West Main Street, Bozeman, Montana, which is legally described on Exhibit B hereto (the “Land”); WHEREAS, the Developer desires to construct improvements to the City’s municipal sanitary sewer system that will benefit the Development as well as future development in the M- URD and DBID, including the removal and replacement of aged six-inch sanitary sewer main lines with new eight-inch sanitary sewer main in Mendenhall Street from 5th Avenue to Grand 228 2 Avenue and appurtenant work (the “Project”), which Project is located in the M-URD and the DBID; and WHEREAS, pursuant to Resolution No. 5548 adopted on October 24, 2023, the City Commission approved the Development as an urban renewal project under the Plan and the Act and authorized the use of tax increment revenue of the DBID and the M-URD (together, the “Districts”) to reimburse the Developer for a portion of the costs of the Project in the maximum amount of $800,000, of which up to $464,000 is expected to come from the M-URD Tax Increment (as hereinafter defined) and up to $336,000 is expected to come from the DBID Tax Increment (as hereinafter defined), subject to the terms and conditions of this Agreement; and WHEREAS, the Parties desire to enter into this Agreement which sets forth the obligations and commitments of the Parties with respect to the Development and the Project. NOW, THEREFORE, the City and the Developer, pursuant to the Act, each in consideration of the representations, covenants and agreements of the other, as set forth herein, mutually represent, covenant and agree as follows: Section 1.Definitions; Rules of Interpretation; Exhibits. 1.1.Definitions. For all purposes of this Agreement, except as otherwise expressly provided or unless the context clearly requires otherwise, the following terms have the meanings assigned to them, respectively: “Act” means Montana Code Annotated, Title 7, Chapter 15, Parts 42 and 43, as amended or supplemented. “Agreement” means this Development Agreement, dated as of October__, 2023, by and between the City and the Developer, as it may be amended or supplemented from time to time in accordance with the terms hereof. “City” means the City of Bozeman, Montana, or any successors to its functions under this Agreement. “City Commission” means the governing body of the City. “DBID” has the meaning given to it in the recitals hereof. “DBID Bond” has the meaning given to it in Section 2.1 hereof. “DBID Ordinance” has the meaning given to it in the recitals hereof. “DBID Tax Increment” means the amount received by the City pursuant to the Act from the extension of levies of Taxes (expressed in mills) against the incremental taxable value (as defined in the Act) of all Taxable Property located in the DBID, and shall include all payments in lieu of Taxes attributable to the incremental taxable value and all payments received by the City designated as replacement revenues for lost DBID Tax Increment. 229 3 “Developer” means Freestone on Main, LLC, a Delaware limited liability company, and its successors and assigns in accordance with and as permitted under this Agreement. “Developer Certificate” means the certificate attached hereto as Exhibit E. “Development” has the meaning given to it in the recitals hereof. “Districts” means, collectively, the M-URD and the DBID. “DOR” means the State of Montana Department of Revenue. “Environmental Laws and Regulations” means and includes the Federal Comprehensive Environmental Compensation Response and Liability Act (“CERCLA” or the “Federal Superfund Act”) as amended by the Superfund Amendments and Reauthorization Act of 1986 (“SARA”), 42 U.S.C. §§ 9601 et seq.; the Federal Resource Conservation and Recovery Act of 1976 (“RCRA”), 42 U.S.C. §§ 6901 et seq.; the Clean Water Act, 33 U.S.C. § 1321 et seq.; and the Clean Air Act, 42 U.S.C. §§ 7401 et seq., all as the same may be from time to time amended, and any other federal, state, county, municipal, local or other statute, code, law, ordinance, regulation, requirement or rule which may relate to or deal with human health or the environment including without limitation all land use, zoning, and stormwater control regulations as well as all regulations promulgated by a regulatory body pursuant to any statute, code, law, ordinance, regulation, requirement or rule. “Fiscal Year” means the period commencing on the first day of July of any year and ending on the last day of June of the next calendar year, or any other twelve-month period authorized by law and specified by the Commission as the City’s fiscal year. “Indemnified Parties” has the meaning given to it in Section 7.1. “Land” has the meaning given to it in the recitals hereof. “Land Use Regulations” means all federal, state and local laws, rules, regulations, ordinances and plans relating to or governing the development or use of the Land or the Development. “Milestone” of “Milestones” has the meaning given in Section 3.4 hereof. “Milestone Date” or “Milestone Dates” has the meaning given in Section 3.4 hereof. “M-URD” has the meaning given to it in the recitals hereof. “M-URD Bonds” has the meaning given to it in Section 2.1 hereof. “M-URD Ordinance” has the meaning given to it in the recitals hereof. “M-URD Tax Increment” means the amount received by the City pursuant to the Act from the extension of levies of Taxes (expressed in mills) against the incremental taxable value (as defined in the Act) of all Taxable Property located in the M-URD, and shall include all 230 4 payments in lieu of Taxes attributable to the incremental taxable value and all payments received by the City designated as replacement revenues for lost M-URD Tax Increment. “Person” means any individual, corporation, limited liability company, partnership, limited liability partnership, joint venture, association, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. “Project” has the meaning given to it in the recitals hereof. “State” means the State of Montana. “Tax Increment” means, collectively, DBID Tax Increment and M-URD Tax Increment. “Taxable Property” means all real and personal property subject to Taxes, including land, improvements and equipment. “Taxes” means all taxes levied on an ad valorem basis by any Taxing Body against the Taxable Property (exclusive of the six mill levy for university purposes levied by the State), and shall include all payments in lieu of taxes received by the City with respect to Taxable Property. “Taxing Body” means the City; the County of Gallatin, Montana; High School District No. 7 (Bozeman), Gallatin County, Montana; Elementary School District No. 7 (Bozeman), Gallatin County, Montana; the State; and any other political subdivision or governmental unit that levies or may hereafter levy or cause to be levied Taxes against property within the Districts. “Unavoidable Delay” means a delay resulting from a cause over which the Party required to perform does not have control and which cannot or could not have been avoided by the exercise of reasonable care, including but not limited to, acts of God, accidents, war, civil unrest, embargoes, strikes, unavailability of raw materials or manufactured goods, litigation, pandemics, epidemics, labor shortages, unusually inclement weather and the delays of the other Party or its contractors, agents or employees in the performance of their duties under or incident to this Agreement. 1.2.Rules of Interpretation. (a) The words “herein,” “hereof” and words of similar import, without reference to any particular section or subdivision, refer to this Agreement as a whole rather than to any of its particular sections or subdivisions. (b) References to any particular section or subdivision hereof are to the section or subdivision of this Agreement in its original signed form, unless otherwise indicated. (c) The word “or” is not exclusive but is intended to contemplate or encompass one, more or all of the alternatives conjoined. 1.3.Exhibits. The following Exhibits are attached to and by reference made a part of this Agreement: 231 5 Exhibit A: Reserved Exhibit B: Legal Description of the Land Exhibit C: Reserved Exhibit D: Milestones Exhibit E: Form of Developer Certificate Exhibit F: Nondiscrimination and Equal Pay Affirmation Section 2.Representations. 2.1.City Representations. The City hereby represents as follows: (a)Pursuant to the Act, and after public hearings duly called and held, the City by the M-URD Ordinance has duly created the M-URD and by the DBID Ordinance has duly created the DBID. (b)Pursuant to Resolution No. 5548 of the City Commission, the City approved the use of Tax Increment, if available, to reimburse the Developer for costs of the Project in a total amount not to exceed $800,000, of which up to $336,000 is expected to come from DBID Tax Increment and up to $464,000 is expected to come from M- URD Tax Increment. Subject to the terms and conditions of this Agreement, the City intends to reimburse the Developer for the Project in an amount not to exceed $800,000. (c)The DOR has advised the City that, as of January 1, 2023, the base taxable value (as defined in the Act) of the DBID is $1,328,695 and the base taxable value (as defined in the Act) of the M-URD is $3,507,723. (d)The City Commission has duly authorized the execution and delivery of this Agreement. (e)The City has issued and there is outstanding its Tax Increment Urban Renewal Revenue Refunding Bond (Downtown Bozeman Improvement District), Series 2020 (the “DBID Bond”), payable from and secured by a first lien on DBID Tax Increment. The commitment of up to $336,000 in DBID Tax Increment pursuant to this Agreement is subordinate in all respects to the pledge of DBID Tax Increment to repayment of the DBID Bond. (f)The City has issued and there is outstanding its Tax Increment Urban Renewal Revenue Bonds (Bozeman Midtown Urban Renewal District), Series 2020 (the “M-URD Bond”), payable from and secured by a first lien on M-URD Tax Increment. The commitment of up to $464,000 in M-URD Tax Increment pursuant to this Agreement is subordinate in all respects to the pledge of M-URD Tax Increment to repayment of the M-URD Bond. 232 6 2.2.Developer Representations. The Developer hereby represents as follows: (a)The Developer is a Delaware limited liability company, duly formed, validly existing and in good standing under the laws of the State of Delaware and is duly qualified to do business in the State of Montana. The Developer has the power to enter into this Agreement and by all necessary corporate action has duly authorized the execution and delivery of this Agreement. (b)The Developer has or will have good marketable title to the Land, free and clear of all liens, encumbrances and defects except such as do not materially affect the value of the Land or materially interfere with the use made and proposed to be made of the Land by the Developer. (c)The Developer has the financial capability or commitments to complete the Development and the Project. (d)The Developer is not aware of any facts the existence of which would cause the Developer to be in violation in any material respect of any Environmental Laws and Regulations applicable to the Development or the Project. The Developer has not received from any local, state or federal official any notice or communication indicating that the activities of the Developer have been, may be or will be in violation of any Environmental Laws and Regulations applicable to the Development or the Project. (e)Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions hereof is prohibited or limited by, conflicts with or results in a breach of the terms, conditions or provisions of the certificate of formation, partnership agreement or operating agreement of the Developer or any evidence of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. (f)There is no action, suit, investigation or proceeding now pending or, to the knowledge of the Developer, threatened against or affecting the Developer or its business, operations, properties or condition (financial or otherwise) before or by any governmental department, commission, board, authority or agency, or any court, arbitrator, mediator or grand jury, that could, individually or in the aggregate, materially and adversely affect the ability of the Developer to complete the Development. (g)The Developer acknowledges and agrees that the sole source of funds for reimbursing the Developer under this Agreement is DBID Tax Increment and M-URD Tax Increment. The Developer acknowledges that the commitment of DBID Tax Increment pursuant to this Agreement is in all respects subordinate to the pledge of DBID Tax Increment to the DBID Bond, and that the commitment of M-URD Tax Increment pursuant to this Agreement is in all respects subordinate to the pledge of M-URD Tax Increment to the M-URD Bonds. The Developer further acknowledges and agrees the amount of DBID Tax Increment and M-URD Tax Increment is dependent upon a number of variables, including, without limitation, the taxable value of the Development, the 233 7 number of mills levied by Taxing Bodies, and then-prevailing state laws regarding computation of DBID Tax Increment and M-URD Tax Increment. The Developer agrees that if DBID Tax Increment in the amount of $336,000 and/or M-URD Tax Increment in the amount of $464,000 is not available to the City to reimburse the Developer, the City shall have no obligation to pay to the Developer the amount of reimbursement described in Section 4 and this Agreement shall terminate as described in Section 5.2(b). Section 3.Developer Undertakings. 3.1.Construction and Maintenance of Development. The Developer hereby agrees and commits to the City that it will diligently prosecute to completion the construction of the Development in accordance with this Agreement, the site plan submitted to the City and all applicable federal, State and local laws, rules, regulations, ordinances and plans relating to or governing the development or use of the Development, including applicable Land Use Regulations and Environmental Laws and Regulations. The Developer agrees and commits to the City that construction of the Development shall be substantially complete by August 31, 2025, subject to Unavoidable Delays. The total estimated costs of the Development are expected to be $51,700,000. The Developer has the financial capacity to complete the Development, and the Developer agrees to pay all costs thereof. At all times during the term of this Agreement, the Developer will operate and maintain, preserve and keep the Development or cause the Development to be operated, maintained, preserved and kept for the purposes for which it was constructed, and with the appurtenances and every part and parcel thereof, in good repair and condition. The Developer agrees to permit the City and any of its officers, employees or agents access to the Land for the purpose of inspection of all work being performed in connection with the Development; provided, however, that the City shall have no obligation to inspect such work. 3.2.Preparation, Review and Approval of Construction Plans. In connection with the Development, the Developer, at its sole expense, shall prepare and submit construction plans, drawings, and related documents for the Development to the appropriate City officials for architectural, engineering or land use review and written approval or permits. The Developer acknowledges that no review or approval by City officials hereunder may be in any way construed by the Developer to replace, override or be in lieu of any required review, inspection, or approval by the City Planning Division, or any other building construction official review or approvals required by any State laws or local ordinances or regulations. Nothing contained in this Agreement indicates or evidences that the City has approved or will approve the Development or any portion thereof. This Agreement does not affect or limit the City’s regulatory powers with regard to the Development, including, without limitation, those relating to building permits or other permits or the payment of fees. As further described in Section 7.1, the City shall have no liability and the Developer shall hold the City harmless with respect to any increases in costs of the Development related to or arising out of delays resulting from the City’s regulatory actions or approvals. 3.3.Construction of the Project; Warranty. The Developer shall acquire, install, construct or otherwise provide the Project. The Developer acknowledges and agrees that the City is not responsible for acquiring, installing, constructing or otherwise providing the Project. The estimated costs of the Project are $1,300,000. Upon acceptance by the City of improvements completed under this Agreement, the Developer must require its contractor to 234 8 provide the City a warranty on all improvements as required by 38.270.100, BMC, and section C.9 of the City of Bozeman Plans and Specifications Review Policy. 3.4.Milestones of the Development. Certain steps in the development of the Development are listed on Exhibit D attached hereto (collectively, the “Milestones”; each a “Milestone”), together with the dates by which the Developer is obligated to complete the Milestones (collectively, the “Milestone Dates”; each as it relates to a particular Milestone, the “Milestone Date”). The Developer acknowledges and agrees that the City in reserving or offering to make available Tax Increment to reimburse it for costs of the Project necessarily means that certain Tax Increment is not available to pay or reimburse other undertakings or costs for the benefit of the Districts and that the City reasonably expects additional DBID Tax Increment as a result of completion of the Development. The Developer acknowledges and agrees that conditioning the availability of Tax Increment to reimburse it for the Project on completion or satisfaction of the Milestones by the corresponding Milestone Dates is reasonable. If the Developer is unable to complete or satisfy a Milestone by the corresponding Milestone Date, the Developer shall make a formal written request to the Director of Economic Development, with appropriate supporting material, to extend the Milestone Date and, as appropriate, subsequent Milestone Dates. The Director of Economic Development may, in his or her sole discretion, (i) determine whether such extension is appropriate and, if so, fix a new and superseding Milestone Date and also adjust other subsequent Milestone Dates, along with any other terms or conditions, or (ii) refer the request to the City Commission to either approve the extension and adjust other Milestone Dates, as appropriate, or, in its sole discretion, terminate this Agreement, in which case the City will have no obligation to reimburse the Developer hereunder. 3.5.Independent Contractor Status/Labor Relations. The Developer understands that the City is obligated to follow certain laws with respect to the expenditure of public funds, which includes Tax Increment. The Parties agree the Developer and its contractors and subcontractors, including its engineers, and their employees and agents are independent contractors for purposes of this Agreement and are not to be considered employees of the City for any purpose. As such, neither the Developer nor any of its contractors and subcontractors are to be considered subject to the terms and provisions of the City’s personnel policies and may not be considered a City employee for workers’ compensation or any other purpose. The Developer and its contractors and subcontractors are not authorized to represent the City or otherwise bind the City in any dealings between them and any other party. With respect to the Project: The Developer must require its contractor to comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, M.C.A., and the Occupational Disease Act of Montana, Title 39, Chapter 71, M.C.A., and must ensure its contractor maintains workers’ compensation coverage for all members and employees of contractor’s business, except for those members who are exempted by law. 235 9 The Developer must require its contractor furnish it with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. The Developer must provide such evidence to the City upon the City’s request. The Developer must require its contractor to give preference to the employment of bona fide Montana residents which means an individual who, at the time of employment and immediately prior to the time of employment, has lived in Montana in a manner and for a time that is sufficient to clearly justify the conclusion that the individual’s past habitation in this state has been coupled with an intention to make this state the individual’s home. The Developer must instruct its contractor that individuals who come to Montana solely in pursuit of a contract or an agreement to perform labor may not be considered to be bona fide Montana residents. The Developer must require its contractor to pay wages, fringe benefits, and expenses including travel allowances as set forth in the Montana Prevailing Wage Rate for either Highway Construction (2023) or Heavy Construction (2023), as may be applicable to the work performed, and as such wages are applicable to Gallatin County, Montana. The Parties agree the adopted wage schedules are incorporated herein. In addition, the Developer must require its contractor to pay all hourly wage employees on a weekly basis and to maintain payroll records during construction and for a period of three (3) years following acceptance of the Project by the City. Finally, the Developer must require that its contractor ensure that any person, firm or entity constructing any portion of the Project under this Agreement for which the Developer’s contractor or any of its subcontractors is responsible, is paid the applicable standard prevailing rate of wages. In the event that, during construction of the Project, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, the Developer must require its contractor to agree to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes and that the steps contractor shall take are to be left to the discretion of contractor; provided, however, that the Developer must require the contractor to bear all costs of any related legal action. The Developer must require its contractor to indemnify, defend, and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes and for any claims regarding underpaid wages. 3.6.Utilities. The Developer shall not interfere with, or construct any improvements over, any public street or utility easement without the prior written approval of the City. All connections to public utility lines and facilities shall be subject to approval of the City and any private utility company involved. The Developer at its own expense shall replace any public facilities or utilities damaged during the Development by the Developer or its agents or by others acting on behalf of or under their direction or control of the Developer. 236 10 3.7.Permits and Compliance With Laws. The Developer will obtain, in a timely manner, all required permits, licenses and approvals, and will meet all requirements of all local, state and federal laws, rules and regulations which must be obtained or met in connection with the acquisition and construction of the Development and the Project. Without limiting the foregoing, the Developer will request and seek to obtain from the City or other appropriate governmental authority all necessary land use, zoning, and building permits. The Developer must require its contractor to provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. The Developer will comply in all material respects with all Environmental Laws and Regulations applicable to the construction, acquisition, and operation of the Development and the Project, will obtain any and all necessary environmental reviews, licenses or clearances under, and will comply in all material respects with, Environmental Laws and Regulations. In addition, the Developer shall require its contractor to comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 3.8.Easements. To the extent that the Project is to be located on the Land, the Developer hereby agrees to grant to the City and applicable utility companies from time to time such easements, rights-of-way and similar licenses in a form required by the City and as are reasonably necessary to permit the City to own, operate and maintain the Project. 3.9.Nondiscrimination and Equal Pay Affirmation. The Developer agrees to require its contractor(s) to be in compliance with the City’s Nondiscrimination and Equal Pay Affirmation attached hereto as Exhibit F, as well as Title 49, Montana Code Annotated, regarding activities related to the Development and the Project. The Developer agrees that in its contracts with its contractors the Developer’s contractor will be required to require its subcontractors to comply with the City’s Nondiscrimination and Equal Pay Affirmation attached hereto as Exhibit F, as well as Title 49, Montana Code Annotated, regarding activities related to the Development and the Project. The Developer agrees to provide copies of all such contracts upon request by the City. 3.10.Performance and Payment Bonds. The Developer must require its contractor to provide performance, maintenance, and payment bonds to it for completion of the Project meeting all statutory requirements of the State of Montana, in form and substance and, without limitation, complying with the following specific requirements: (a)Require the contractor to faithfully perform all of the provisions of the contract between the Developer and the contractor. (b)Require the contractor to pay all laborers, mechanics, subcontractors, and material suppliers. 237 11 (c)Require the contractor to pay all persons who supply the contractor with provisions, provender, material, or supplies for performing the work. (d)Except as otherwise required by Montana law, the form and substance of such bond(s) must be satisfactory to the Developer and the City. (e)Bond(s) shall be executed by a responsible surety licensed in Montana and listed in the latest U.S. Dept. of Treasury Circular #570, with a Best’s rating of no less than A/XII. Said bonds shall remain in effect through the warranty period for all Improvements, and until all of the contractor’s obligations to the Developer are fulfilled. (f)The performance bond and the labor and material payment bond shall be in an amount equal to or exceeding one hundred percent (100%) of the contract amount entered into between the Developer and its contractor. (g)The Developer shall require the attorney-in-fact who executes the required bond(s) on behalf of the surety to affix thereto a certified and current copy of his or her power of attorney indicating the monetary limit of such power. (h)Every bond under this section must display the surety’s bond number. A rider including the following provision shall be attached to each bond: Surety agrees that it is obligated under the bond(s) to any successor, grantee or assignee of the Developer and the City. (i)The City and the Developer must be named as obligees on the bonds. (j)The Developer must require its contractor to deliver the required bonds to it and the City prior to the commencement of any work on the Project. (k)Prior to acceptance of the Project, the Developer’s contractor must post a maintenance bond with the City equal to 20% of the actual cost of the Project to correct any deficiencies in workmanship and/or materials which are found within the two-year warranty period. The City shall be named as an obligee on the bond. 3.11.Walkaway Provision. The Developer shall have the option, in its sole discretion and for any reason, to cease developing the Development and terminate this Agreement without penalty at any time prior to the Developer submitting a Developer Certificate (the “Walkaway Provision”). If the Developer exercises the Walkaway Provision, this Agreement shall immediately terminate and all rights and obligations of the Parties under this Agreement shall cease, except for those rights and obligations specifically identified in Section 8.3(b) in this Agreement as surviving termination. If the Developer exercises this Walkaway Provision, the Developer automatically waives any and all rights to reimbursement from the City under this Agreement. This Walkaway Provision shall not limit or prohibit any rights, claims or recourse that the City may have in connection with the Development or the Project. Section 4.City Undertakings. Subject to satisfaction of all conditions in Section 5 below, and solely from Tax Increment on hand, the City agrees to reimburse the Developer for the Project in an amount not to exceed $800,000, of which up to $336,000 is expected to come from 238 12 DBID Tax Increment and up to $464,000 is expected to come from M-URD Tax Increment. The Parties acknowledge and agree that, subject to the terms and conditions of this Agreement, the actual costs of the Project may exceed $800,000, but $800,000 is the maximum amount that the City will reimburse the Developer for the Project pursuant to this Agreement. Notwithstanding anything herein to the contrary, the maximum amount of DBID Tax Increment committed pursuant to this Agreement is $336,000 and the maximum amount of M-URD Tax Increment committed pursuant to this Agreement is $464,000. If DBID Tax Increment in the amount of $336,000 is not available, the City shall have no obligation hereunder to increase the amount of M-URD Tax Increment committed hereunder; if M-URD Tax Increment in the amount of $464,000 is not available, the City shall have no obligation hereunder to increase the amount of DBID Tax Increment committed hereunder. Section 5.Conditions and Process for Reimbursement. The City’s reimbursement of the Developer for the Project as described in Section 4 shall be subject to the following conditions and in accordance with the following procedures: 5.1.Conditions to Reimbursement. (a)(i) The Developer must have completed or satisfied each of the Milestones by the applicable Milestone Date, as such date may have been extended pursuant to Section 3.4 hereof, (ii) the City must have issued a certificate of occupancy for the Development, (iii) the Project must have been completed in its entirety and the City must have delivered to the Developer written acceptance of the Project (which may be in the form of a Certificate of Completion or such other format as required by the City), and (iv) the Developer must demonstrate to the City’s satisfaction, by a title report or other means acceptable to the City, that the Project is free of financial liens and any encumbrances affecting the Project must be acceptable to the City. (b)Reimbursement by the City for costs of the Project must be based on paid invoices for costs incurred by the Developer, its contractors and subcontractors or utility companies, which the Developer must supply to the City. The City may reject, in its sole discretion, any invoice related to the Project. The City will notify the Developer of any rejected invoice and the reason it was rejected. (c)The Parties agree that the City will have no obligation to reimburse any of the costs of the Project unless at the time the Developer submits its Developer Certificate (i) all of the Developer’s representations as set forth in Section 2.2 are true and correct, (ii) the Developer is not in breach of any covenant or undertaking as set forth in Section 3, and (iii) there shall be adequate Tax Increment on hand to pay the amount of the reimbursement and satisfy all other financial obligations related to the Districts. If any of the above conditions are not satisfied in the determination of the City, the City shall have no obligation to reimburse the Developer for the costs of the Project and the City’s determination to refrain from reimbursing, or its inability to reimburse, any of the Project shall not be or result in a default under this Agreement. 5.2.Process for Payment or Reimbursement. 239 13 (a)After receiving a certificate of occupancy for the Development, the Developer shall provide to the City a signed Developer Certificate substantially in the form attached as Exhibit E hereto and acceptable to the City, accompanied by the invoices and lien waivers from the contractors or subcontractors performing or that have performed the work to be reimbursed. In addition, the Developer agrees to provide to the City any additional information reasonably requested by the City for the City to determine whether the Developer’s request for reimbursement complies with this Agreement. (b)By the date that is 30 days after the submission by the Developer of a complete and acceptable Developer Certificate, as determined by the City, the City, subject to the terms and conditions of this Agreement, shall reimburse the Developer for the Project in an amount not to exceed $800,000, of which up to $336,000 is expected to be paid from DBID Tax Increment and up to $464,000 is expected to be paid from M- URD Tax Increment. However, if the City shall earlier determine that the Tax Increment is not sufficient to reimburse the Developer for the Project, then the City shall so inform the Developer in writing and this Agreement shall thereupon terminate. Section 6.Sources of Repayment; Covenants to Pay Taxes. 6.1.Taxes. The Developer shall pay or cause to be paid when due and prior to the imposition of penalty all Taxes and all installments of any special assessments payable with respect to the Land and the Development and any improvements thereto or extension thereof. 6.2.Maintenance of Land and Development. The Developer agrees to use its commercially reasonable best efforts to maintain and operate the Land and the Development so as to be able at all times to pay promptly and when due all property taxes levied with respect to the Land and the Development. 6.3.Injunction; Specific Performance. The Parties agree that, in the event of a breach of this Section 6 by the Developer or its successors or assigns, the City would suffer irreparable harm. Therefore, in the event the Developer or its successors or assigns fails to comply with the provisions of this Section 6, the Developer agrees that the City may pursue any remedy at law or in equity, including the remedies of injunction and specific performance. Section 7.Indemnification and Insurance. (a)The Developer releases the City and all City Commission members, board members, officers, agents, servants and employees of the City (the “Indemnified Parties”) from, and covenants and agrees that the Indemnified Parties shall not be liable for, and agrees to indemnify, defend and hold harmless the Indemnified Parties against, any loss, damage, cost (including reasonable attorneys’ fees), claim, demand, suit, action or other proceeding whatsoever (i) arising or purportedly arising out of, or resulting or purportedly resulting from, the acquisition and construction of the Development or the Project, any violation by the Developer of any agreement, condition or covenant of this Agreement, the ownership, maintenance and operation of the Development, or the presence on any portion of the Land of any dangerous, toxic or hazardous pollutants, 240 14 contaminants, chemicals, waste, materials or substances; or (ii) which is proximately caused by the Developer or its officers, agents, contractors, consultants or employees. (b)The Developer agrees to require in any contract it enters into in fulfillment of its obligations under this Agreement that it will, to the fullest extent permitted by law, require its contractors to agree in such contracts that the contractor does release, defend, indemnify, and hold harmless the Indemnified Parties from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of and expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the Indemnified Parties occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the contractor; (ii) any negligent, reckless, or intentional misconduct of any of the contractor’s agents including its subcontractors. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the indemnitee(s) which would otherwise exist as to such indemnitee(s). The indemnity under this Section the Developer must require of its contractor shall be without regard to and without any right to contribution from any insurance maintained by any Indemnified Party. Should any indemnitee described herein be required to bring an action against the Developer’s contractors or engineers to assert its right to defense or indemnification under this Agreement or under the Developer’s contractor’s or engineer’s applicable insurance policies required below the indemnitee shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Developer’s contractor(s) or engineer(s) was obligated to defend the claim(s) or was obligated to indemnify the indemnitee for a claim(s) or any portion(s) thereof. In the event of an action filed against City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. The Developer must also require its contractors and subcontractors and engineers to waive any and all claims and recourse against the City or its officers, agents or employees, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the Project except “responsibility for his own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. The obligations contained in this Section 7 shall survive termination of this Agreement. 241 15 (c)In addition to and independent from the above, the Developer shall require its contractor(s) and engineer(s) at the contractor(s)’s and engineer(s)’s expense, to secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Developer’s contractor(s) or engineer(s) in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the contractor(s) or engineer(s) retained by the Developer to perform its obligations under this Agreement and as such liabilities and obligations are included in subsection (a) of this Section. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City and the Developer must cause to be furnished to the City an accompanying certificate of insurance and accompanying endorsements demonstrating such insurance is in place in amounts not less than as follows: Workers’ Compensation – statutory; Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; Commercial General Liability - $2,000,000 per occurrence; $4,000,000 annual aggregate; Products Completed Operations - $5,000,000; Automobile Liability - $1,000,000 property damage/bodily injury per accident; and Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate. In addition to the above, the Developer must cause its contractor to purchase and maintain insurance in the amount of the full replacement cost of the Project. This insurance must: Include the interests of the City, the Developer, and the Developer’s contractor, engineers, and subcontractors each of whom is deemed to have an insurable interest and must be listed as an insured or additional insured; Be written on a Builder’s Risk “all risk” or open peril or special causes of loss policy form that shall at least include insurance for physical loss and damage to the Project, temporary buildings, false work and materials and equipment in transit and must insure against at least the following perils or cause of loss: fire, lighting, extended coverage, theft, vandalism, and malicious mischief, earthquake, collapse, debris removal, 242 16 demolition occasional by enforcement of applicable laws and regulations, and water damage (other than caused by floods); Include expenses incurred in the repair or replacement of any insured property (including but not limited to the fees and charges or engineers); Cover materials and equipment in transit for incorporation in the Project stored at the site or at another location prior to being incorporated into the Project, provided that such materials and equipment have been included in an application for payment by the Developer’s contractor and recommended for payment by the Developer’s engineers; Be endorsed to allow occupancy and partial utilization of the Project by the Developer and the City; Include testing and start-up; and Be maintained in effect until final payment is made by the City to the Developer unless otherwise agreed to in writing by the City with forty-five (45) days written notice to each additional insured. The above amounts shall be exclusive of defense costs. The City of Bozeman, its officers, agents, and employees, shall be endorsed as an additional or named insured on a primary non-contributory basis on the applicable policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a forty-five (45) day notice of cancellation or non-renewal. The City must approve all insurance coverage and endorsements prior to the Developer commencing work. In addition to the notice of cancellation to the City that must be included in the insurance policies, the Developer and its contractor(s) and engineer(s) must notify City within two (2) business days of any of their receipt of information that any required insurance coverage will be terminated or of contractor(s) or engineer(s) decision to terminate any required insurance coverage for any reason. The City must receive copies of all insurance coverages and endorsements prior to the Developer commencing construction of the Project. Section 8.General Provisions. 8.1.Conflicts of Interest; City’s Representatives Not Individually Liable. The Developer represents that it does not employ, retain, or contract with an officer or employee of the City and that no member, officer or employee of the City has a personal or financial interest, direct or indirect, in this Agreement or in the Development, or a financial interest in the Project. No member, officer or employee of the City shall be personally liable to Developer in the event of any default under or breach of this Agreement by the City, or for any amount that may become due to Developer for any obligation issued under or arising from the terms of this Agreement. 243 17 8.2.Rights Cumulative. The rights and remedies of the Parties of this Agreement, whether provided by law or by this Agreement, shall be cumulative, and the exercise by any Party hereto of any one or more of such remedies shall not preclude the exercise by such Party, at the same or different times, of any other remedy for the same default or breach or of any of its remedies for any other default or breach of the Party subject to the limitation of remedies provided herein. No waiver made by such Party with respect to the performance or the manner or time thereof, of any obligation under this Agreement, shall be considered a waiver with respect to the particular obligation of the other Party or a condition to its own obligation beyond those expressly waived in writing and to the extent thereof, or a waiver in any respect in regard to any other rights of the Party making the waiver of any obligations of the other Party. Delay by a Party hereto instituting or prosecuting any cause of action or claim hereunder shall not be deemed a waiver of any rights hereunder. 8.3.Term of Agreement. (a) This Agreement shall remain in effect until the earlier of (i) the date that is 10 days after the date the City reimburses the Developer in full hereunder, or (ii) the termination of this Agreement pursuant to Section 5.2(b) or pursuant to Section 3.11; provided that this Agreement may be earlier terminated by the City in its sole discretion at any time after failure by the Developer to complete or satisfy a Milestone by the applicable Milestone Payment Date (as such date may be extended as described in Section 3.4). (b)Notwithstanding the foregoing provisions of this Section 8.3, Sections 6, 7, and 8 of this Agreement shall in all events survive the termination of this Agreement. 8.4.Limitation on City Liability. No agreements or provisions contained in this Agreement nor any agreement, covenant or undertaking by the City contained in any document in connection with the Development or the Project shall give rise to any pecuniary liability of the City or a charge against its general credit or taxing powers, or shall obligate the City financially in any way except with respect to then-available Tax Increment. No failure of the City to comply with any term, condition, covenant or agreement herein shall subject the City to liability for any claim for damages, costs or other financial or pecuniary charge except to the extent that the same can be paid or recovered from then-available Tax Increment; and no execution on any claim, demand, cause of action or judgment shall be levied upon or collected from the general credit, general funds or taxing powers of the City (except as such constitute then-available Tax Increment). Nothing herein shall preclude a proper party in interest from seeking and obtaining specific performance against the City for any failure to comply with any term, condition, covenant or agreement herein; provided that no costs, expenses or other monetary relief shall be recoverable from the City except as may be payable from the Tax Increment. This Agreement shall not constitute or be construed to give rise to a debt of the City. 8.5.Assignment. This Agreement is unique between the City and Developer and no Party may assign any rights or privileges, or delegate any duties or obligations under this Agreement, without first obtaining the written consent of the other Party. 8.6.Successors Bound By Agreement; No Third Party Beneficiary; No Property Interest. Subject to compliance with Section 8.5, this Agreement will inure to the benefit of and be binding upon the Parties to this Agreement and their respective successors in interest and permitted assignees. This Agreement is for the exclusive benefit of the Parties, does not 244 18 constitute a third-party beneficiary agreement, and may not be relied upon or enforced by a third party. This Agreement, by itself, does not create or give rise to a property interest in the Land or the Development. 8.7.Prior Agreements. This Agreement supersedes, merges and voids any and all prior discussions, negotiations, agreements and undertakings between the Parties with respect to the subject matter of this Agreement; provided that this Section 8.7 shall not be construed to apply to the Agreement for Infrastructure Improvements between the City and the Developer dated [_______], 2023. The Parties waive and release each other from any claims, actions, or causes of action that relate in any manner to any prior discussions, negotiations, agreements and undertakings between the Parties with respect to the subject matter of this Agreement. 8.8.Entire Agreement. This Agreement, including any exhibits and attachments hereto, embodies the entire agreement and understanding of the Parties with respect to its subject matter. All Parties shall be prohibited from offering into evidence in any arbitration or civil action any terms, conditions, understandings, warranties, statements or representations, whether oral or written, with respect to the subject matter of this Agreement and that are not contained in this Agreement. 8.9.Amendments, Changes and Modifications. This Agreement may be amended and any of its terms may be modified only by written amendment authorized and signed by the Parties hereto. 8.10.Headings. The headings of articles and sections in this Agreement are inserted for convenience of reference only and do not limit or amplify the terms and provisions of the Agreement in any manner. The headings will be ignored and will not affect the construction of any provisions of this Agreement. 8.11.Notice. Any formal notice, demand or communication required or permitted by the terms of this Agreement to be given to the City or the Developer will be in writing and will be delivered to such Party either: (i) by personal hand-delivery; or (ii) by depositing the same in the United States mail, certified mail with return receipt requested, addressed to such Party at the address named below, with postage prepaid thereon. Notice will be deemed complete upon receipt of the notice pursuant to any of the foregoing methods of notice. If to City: City of Bozeman Attention: Bozeman City Manager 121 N. Rouse Ave. P.O. Box 1230 Bozeman, MT 59771 If to Developer: Freestone on Main, LLC C/O Reuter Walton Development 245 19 4450 Excelsior Boulevard, Suite 400 Minneapolis, MN 55416 The City and the Developer, by notice given hereunder, may designate different addresses to which subsequent notices, certificates or other communications should be sent. 8.12.Severability. If any provision of this Agreement is declared void or held invalid, such provision will be deemed severed from this Agreement and the remaining provisions of this Agreement will otherwise remain in full force and effect. 8.13.Duplicate Originals or Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement. 8.14.Place of Performance. The place of performance of this Agreement will be in the City of Bozeman, Gallatin County, Montana. 8.15.Governing Law. This agreement and the legal relations between the Parties hereto will be governed by and construed in accordance with the laws of the State of Montana, without giving effect to any choice of law statutes, rules, or principles. 8.16.Dispute Resolution. (a)Any claim, controversy, or dispute between the Parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each Party duly authorized to execute settlement agreements. Upon mutual agreement of the Parties, the Parties may invite an independent, disinterested mediator acceptable to the Parties to assist in the negotiated settlement discussions. (b)If the Parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the applicable law and the provisions of this Agreement. 8.17.Further Assurances and Corrective Instruments. The Parties agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Development or the Project or for carrying out the expressed intention of this Agreement. 8.18.Reports/Accountability/Public Information. Developer agrees to develop and/or provide documentation as reasonably requested by the City demonstrating the Developer’s compliance with the requirements of this Agreement. Developer shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the monies distributed to Developer pursuant to this Agreement were used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Developer shall not issue any statements, releases or information for public dissemination regarding this Agreement or the work contemplated hereunder without prior written approval of the City. 246 20 IN WITNESS WHEREOF, the Parties hereto have caused this Development Agreement to be executed as of the [_____] day of [___________], 2023. CITY OF BOZEMAN, MONTANA By:_______________________________________ Printed Name: Jeff Mihelich Title: City Manager [Signature Page to Development Agreement] 247 21 FREESTONE ON MAIN, LLC By: Name: Title: [Signature Page to Development Agreement] 248 A-1 EXHIBIT A Reserved. 249 B-1 EXHIBIT B LEGAL DESCRIPTION OF THE LAND Lots 14, 15, and the East 17 feet of Lot 26, and all of Lot 27 in Block D of Tracy's First Addition (Plat A-8) to Bozeman, Gallatin County, Montana, according to the official plat thereof on file and of record in the office of the County Clerk and Recorder of Gallatin County, Montana. ALSO, Lots 16, 17, 18, 19, 20 and 21 in Block D of Tracy's First Addition (Plat A-8) to Bozeman, Gallatin County, Montana, according to the official plat thereof on file and of record in the office of the County Clerk and Recorder of Gallatin County, Montana 250 C-1 EXHIBIT C Reserved. 251 D-1 EXHIBIT D MILESTONES MILESTONE MILESTONE DATE Commence Construction Complete Construction November 30, 2023 August 31, 2025 252 E-1 EXHIBIT E FORM OF DEVELOPER CERTIFICATE TO:City of Bozeman, Montana FROM:Freestone on Main, LLC (the “Developer”) SUBJECT:Reimbursement for Project This Developer Certificate requests $_________ for reimbursement of the Project, as defined in the Development Agreement between Freestone on Main, LLC and the City of Bozeman, Montana, dated as of ____________, 2023 (the “Development Agreement”). Capitalized terms used but not otherwise defined herein shall have the respective meanings given such terms in the Development Agreement. Pursuant to Section 5(d) of the Development Agreement, the undersigned hereby certifies on behalf of the Developer that: (a)the expenditures for which reimbursement is requested are listed in summary form in the attached schedule headed “Infrastructure Improvement Expenditures;” (b)invoices paid by the Developer corresponding to the expenditures set forth on the attached Infrastructure Improvement Expenditures schedule are appended to such schedule; (c)the amounts for which reimbursement is requested have been paid by the Developer to contractors, subcontractors, materialmen, engineers, architects or other persons who or that have performed necessary or appropriate services or supplied necessary or appropriate materials for the acquisition, construction, renovation, equipping, and installation of the Project; (d)with respect to the Project, the contractor and subcontractors were solicited and retained competitively and all persons performing work on the Project were paid the Montana prevailing wage for such work; (e)no part of the several amounts requested to be paid, as stated in such certificate, has previously been reimbursed by the City under the Development Agreement or the Agreement for Infrastructure Improvements between the City and the Developer dated [________], 2023; (f)the reimbursement of the amounts requested will not result in a breach of any of the covenants of the Developer contained in the Development Agreement; and (g)no litigation has been instituted or is threatened with regard to any amounts sought to be reimbursed, and binding and enforceable lien waivers have been obtained from all contractors, subcontractors, materialmen, and others with regard to all work related to any amounts for which reimbursement is requested. 253 E-2 The Developer represents that all of the representations of the Developer in Section 2.2 of the Development Agreement are true and correct as of the date hereof and the Developer is not in default of the performance of any of its undertakings or obligations under Section 3 of the Development Agreement as of the date hereof. Dated: _____________, 20__FREESTONE ON MAIN, LLC By: Authorized Developer Representative 254 F-1 EXHIBIT F 255 Miles 0.1 2,257 This product is for informational purposes and may not have been prepared for, or be suitable for legal,engineering, or surveying purposes. Users of this information should review or consult the primary data and information sources to ascertain the usability of the information. Feet 2630 Legend 131 Location 263 01/05/2023 Created By: Created For: Date: Title Manholes Abandoned Mains Force Mains Gravity Mains Proposed Application Received On Hold Initial Review In Review Public Notice Final Review Street Names Northeast Neighborhood Urban Renewal District Midtown Urban Renewal District North Park Urban Renewal District Downtown Tax Increment District South Bozeman Technology District Pole Yard Urban Renewal District City Limits 256 Memorandum REPORT TO:City Commission FROM:Tom Rogers, Senior Planner Chris Saunders, Community Development Manager Erin George, Deputy Director of Community Development Anna Bentley, Director of Community Development SUBJECT:Ordinance 2113, Provisional Adoption of the Bennett Properties Annexation Zone Map Amendment, Establishing Residential Emphasis Mixed Use Zoning on 36.980 acres and Adjacent Rights-of-Way, Application 22380 MEETING DATE:October 24, 2023 AGENDA ITEM TYPE:Ordinance RECOMMENDATION: Provisionally adopt Ordinance 2113. 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 Commission approved Application 22380 on April 4, 2023 to annex 36.980 acres and establish an initial zoning designation of REMU (Residential Emphasis Mixed-Use District) subject to terms of annexation and contingencies for zoning. A signed annexation agreement was received on August 18, 2023. The applicant has completed all required steps and the Commission now is asked to implement the prior zoning approval. The property is adjacent and south of Stucky Road and bounded on the east by Genesis Business Park, a County in holding, and Meadow Creek phase 1 park. Gran Cielo subdivision bounds the property on the southeast side creating an extension of South 27th Avenue with additional undeveloped property on the northwest side. Considerable development is occurring in the vicinity including the Gran Cielo subdivision, Nexus Point residential development, the Graf Street development, and the West University property annexation to the north across Stucky Road. The Future Land Use Map in the Bozeman Community Plan (BCP) 2020 designates the property as “Urban Neighborhood” which includes the REMU 257 district as an implementing zoning district. Nearby municipal zoning to the south is R-4 (Residential High Density district) to the southeast, R-3 (Residential Medium Density district) to the south and southwest, and R-4 (Residential High Density district) and R-5 (Residential High Density-Mixed district) on the northwest side. The property is bordered by Stucky Road to the north (a Bozeman classified Collector street). The proposed annexation would bring in additional right of way to build out another section of Stucky Road as would be required with future development. South 27th Avenue has adequate right of way width. The property is currently hosts two residential structures being served with City sewer service which was connected through an emergency connection option the city offers. The construction of South 27th Avenue severed the septic systems from the existing homes. The Gran Cielo development had installed service adjacent to the structures. The property has a recently installed 15 inch sewer mains and 8 inch water mains (partial) running along the property to the west in South 27th Avenue and on the south side in Graf Street. In addition an existing 21 inch sewer main is in the Stucky Road ROW. UNRESOLVED ISSUES:None ALTERNATIVES:As determined by the Commission FISCAL EFFECTS:No unusual fiscal effects have been identified. No presently budgeted funds will be changed by this Annexation or Zone Map Amendment. Future development will incur costs and generate review according to standard City practices. Attachments: 22380 Bennett ZMA Ordinance 2113.pdf 003 Bennett Annexation Zone Map.pdf Report compiled on: October 6, 2023 258 Ord 2113 Page 1 of 6 ORDINANCE 2113 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA AMENDING THE CITY OF BOZEMAN ZONING MAP TO INITIALLY DESIGNATE 36.980 AS REMU, RESIDENTIAL EMPHASIS MIXED USE DISTRICT, KNOW AS THE BENNETT PROPERTIES ZONE MAP AMENDMENT, APPLICATION 22380. WHEREAS, the City of Bozeman has adopted zoning regulations and a zoning map pursuant to Sections 76-2-301 and 76-2-302, M.C.A.; and WHEREAS, Section 76-2-305, M.C.A. allows local governments to amend zoning maps if a public hearing is held and official notice is provided; and WHEREAS, Section 76-2-307, M.C.A. states that the Zoning Commission must conduct a public hearing and submit a report to the City Commission for all zoning map amendment requests; and WHEREAS, the City of Bozeman Zoning Commission has been created by Section 2.05.2700, BMC as provided for in Section 76-2-307, M.C.A.; and WHEREAS, Chapter 38, Article 2 of the Bozeman Unified Development Code sets forth the procedures and review criteria for zoning map amendments; and WHEREAS, the proposed zone map amendment application to amend the City of Bozeman Zoning Map to establish a zoning classification of REMI (Residential Emphasis Mixed Use) for approximately 36.980 acres has been properly submitted, reviewed, and advertised; and 259 Ordinance No. 2113, Bennett Properties ZMA Page 2 of 6 WHEREAS, after proper notice, the Bozeman Zoning Commission held a public hearing on March 6, 2023 to receive and review all written and oral testimony on the request for a zone map amendment; and WHEREAS, the Bozeman Zoning Commission recommended to the Bozeman City Commission that application No. 22380 the Bennett Properties Zone Map Amendment, be approved as requested by the applicant; and WHEREAS, after proper notice, the City Commission held its public hearing on April 4, 2023 to receive and review all written and oral testimony on the request for the zone map amendment; and WHEREAS, the City Commission has reviewed and considered the zone map amendment criteria established in Section 76-2-304, M.C.A., and found that the proposed zone map amendment would be in compliance with the criteria. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: Section 1 Legislative Findings The City Commission hereby makes the following findings in support of adoption of this Ordinance: 1. The City adopted a growth policy, the Bozeman Community Plan 2020, by Resolution 5133 to establish policies for development of the community including zoning; 2. The Bozeman Community Plan 2020, Chapter 5, sets forth the policies by which the City reviews and applies the criteria for amendment of zoning established in 76-3-304, MCA; 3. Zoning, including amendments to the zoning map, must be in accordance with an adopted growth policy; 4. A staff report analyzing the required criteria for a zone map amendment, including 260 Ordinance No. 2113, Bennett Properties ZMA Page 3 of 6 accordance to the Bozeman Community Plan 2020, has found that the required criteria are satisfied; 5. The two required public hearings were advertised as required in state law and municipal code and all persons have had opportunity to review the materials applicable to the application and provide comment prior to a decision; 6. The Bozeman Zoning Commission has been established as required in state law and conducted their required public hearing; and after consideration of application materials, staff analysis and report, and all submitted public comment recommended approval of the requested REMU district. 7. The City Commission conducted a public hearing to provide all interested parties the opportunity to provide evidence and testimony regarding the proposed amendment prior to the City Commission acting on the application. 8. The City Commission considered the application materials, staff analysis and report, Zoning Commission recommendation, all submitted public comment, and all other relevant information. 9. The City Commission determines that, as set forth in the staff report and incorporating the staff findings as part of their decision, the required criteria for approval of the Bennett Properties Zone Map Amendment have been satisfied. Section 2 That the zoning district designation of the following-described property is hereby designated as REMU, Residential Emphasis Mixed Use District: An area of land comprised described as follows: An area of land being Tract 1 of C.O.S. 2632, Tract 2 of C.O.S. 2725 Tract 3 of C.O.S. 2532, located in Section 23, Township 2 South, Range 5 East, Principal Meridian Montana, Gallatin County and being further described as follows: Beginning at the One-Quarter Corner between Section 14 and Section 23, being a nail in Stucky Rd; thence S 88°26'22" E, a distance of 32.86 feet, to a calculated position; thence S 88°14'14" E, a distance of 521.59 feet, to a calculated position; thence S 01°27'33" W, a distance of 1341.91 feet, to a Gaston YPC; 261 Ordinance No. 2113, Bennett Properties ZMA Page 4 of 6 thence S 00°33'35" E, a distance of 1204.27 feet, to a 5/8" rebar; thence S 26°05'50" W, a distance of 78.12 feet, to a 6" Dia. Fence Post; thence S 04°33'47" W, a distance of 23.20 feet, to an Allied Alum. Cap; thence N 88°54'58" W, a distance of 563.01 feet, to an Allied Alum. Cap; thence N 01°27'30" E, a distance of 280.46 feet, to an Allen Alum. Cap; thence N 01°27'30" E, a distance of 415.87 feet, to a 2" Dia. Alpine Alum Cap; thence along a curve concave to the west with an arc length of 173.39 feet, a radius of 300.00 feet, a delta angle of 33°06'51", a chord bearing of N 15°05'56" W, and a chord length of 170.98 feet, to a 2" Dia. Alpine Alum Cap; thence N 31°39'21" W, a distance of 101.25 feet, to a 2" Dia. Alpine Alum Cap; thence along a curve concave to the east with an arc length of 173.39 feet, a radius of 300.00 feet, a delta angle of 33°06'51", a chord bearing of N 15°05'56" W, and a chord length of 170.98 feet, to a 2" Dia. Alpine Alum Cap; thence N 01°27'30" E, a distance of 189.86 feet, to a 2" Dia. Alpine Alum Cap; thence N 01°27'30" E, a distance of 169.67 feet, to a 2" Dia. Alpine Alum Cap; thence along a curve concave to the east with an arc length of 173.39 feet, a radius of 300.00 feet, a delta angle of 33°06'51", a chord bearing of N 18°00'55" E, and a chord length of 170.98 feet, to a 2" Dia. Alpine Alum Cap; thence N 34°34'21" E, a distance of 101.25 feet, to a 2" Dia. Alpine Alum Cap; thence along a curve concave to the west with an arc length of 74.00 feet, a radius of 300.00 feet, a delta angle of 14°07'58", a chord bearing of N 27°30'22" E, and a chord length of 73.81 feet, to a 2" Dia. Alpine Alum Cap; thence along a curve concave to the west with an arc length of 99.39 feet, a radius of 300.00 feet, a delta angle of 18°58'53", a chord bearing of N 10°56'57" E, and a chord length of 98.93 feet, to a 2" Dia. Alpine Alum Cap; thence N 01°27'30" E, a distance of 765.08 feet, the Point of Beginning. Said area being 36.980 acres more or less, along with and subject to all easements of record or apparent from a visual inspection of the property. All as depicted on the BENNETT PROPERTIES Zoning Map. Section 3 Repealer. All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force and effect. 262 Ordinance No. 2113, Bennett Properties ZMA Page 5 of 6 Section 4 Savings Provision. This ordinance does not affect the rights and duties that matured, penalties that were incurred or proceedings that were begun before the effective date of this ordinance. All other provisions of the Bozeman Municipal Code not amended by this Ordinance shall remain in full force and effect. Section 5 Severability. That should any sentence, paragraph, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this ordinance as a whole, or any part or provision thereof, other than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman Municipal Code as a whole. Section 6 Codification. This Ordinance shall not be codified but shall be kept by the City Clerk and entered into a disposition list in numerical order with all other ordinances of the City and shall be organized in a category entitled “Zone Map Amendments.” Section 7 Effective Date. This ordinance shall be in full force and effect thirty (30) days after final adoption. 263 Ordinance No. 2113, Bennett Properties ZMA Page 6 of 6 PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on the ____ day of _________, 2023. ____________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ____________________________________ MIKE MAAS City Clerk FINALLY PASSED, ADOPTED AND APPROVED by the City Commission of the City of Bozeman, Montana on second reading at a regular session thereof held on the ____ of ________________, 2023. The effective date of this ordinance is _____________, ____, 2023. _________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: _______________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 264 N 27TH AVENUELANTERN DRSTUCKY RDGRAF STENTERPRISE BLVD S 27TH AVEAPEX LANESHEETMADISON ENGINEERING895 TECHNOLOGY BLVDBOZEMAN, MT 59718(406) 586-02621" = 0 SCALE 100' 20050100 LEGEND BENNETT ANNEXATION LEGAL DESCRIPTION: ZONE MAP C1.1ZONE MAPBENNETT ANNEXATIONBOZEMAN, MTBENNET ANNX 265 Memorandum REPORT TO:City Commission FROM:Kira Peters, Assistant City Manager SUBJECT:Ordinance 2147 Final Adoption of Regulations for Camping on City Right-of- way MEETING DATE:October 24, 2023 AGENDA ITEM TYPE:Ordinance RECOMMENDATION: I move to finally 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: In 2018 the legal landscape concerning how municipalities in the 9 th Circuit regulated camping or “sit, sleep, lie” ordinances in their jurisdictions changed dramatically. Historically, most camping ordinances were misdemeanor offenses that carried the potential of a fine and/or jail time. The Martin v. Boise case held it unconstitutional to criminally punish a person who is experiencing homelessness for sitting, sleeping, or lying on public property when that person has no place else to go and there is no available shelter space. In 2022 the Johnson v. Grants Pass decision affirmed the holding in Boise and further stated that municipalities may not prohibit persons experiencing homelessness from taking necessary minimal measures to keep themselves warm and dry when they must sleep outside – including sleeping in vehicles. Both Boise and Grants Pass provide that municipalities may regulate times and locations where camping or sleeping etc. is not permitted so long as the regulations are consistent with the Constitution and holdings of these cases. In response to Boise and coupled with the pandemic, the City has not issued 266 camping citations or 72-hour parking citations to those experiencing homelessness. Over the last two years there has been an increase in the number of recreational vehicles, campers, vans, and other vehicles on the public right- of-way throughout the city where people are residing or using the right-of- way for additional storage. While the City must abide by the Boise and Grants Pass decisions, the city also has a responsibility to ensure that public rights-of-way, 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 impacting stormwater systems, and to balance community interests and concerns. Over the last two years, the city has been pulling from various authority in the municipal code and state law to request voluntary compliance from persons living on the right-of-way for basic standards of cleanliness and limiting obstructions in the right-of-way. Authority in both the municipal code and state law however were never intended to address the issues related to the unhoused living on the right-of-way and therefore are inadequate to properly address the concerns of residents and the responsibilities of the city. Some current codes carry criminal penalties or higher civil penalties, and while these codes are permissible to enforce under Boise and Grants Pass because they do not criminalize the act of camping, the city strives to codify a more compassionate enforcement approach. Ordinance 2147 seeks to provide reasonable time, place, manner restrictions for how those experiencing homelessness can legally camp on the city right- of-way and provides the city noncriminal enforcement tools when education, connection to services, and voluntary compliance is unsuccessful. On September 19, 2023, the City Commission approved first read of Ordinance 2147 (with a 4-0 vote) subject to the following amendments: - The term "involuntarily homeless" was removed in favor of the term "a person experiencing homelessness" throughout the ordinance; - Sec. 34.09.020 C.1 was amended to extend the time limit for a person to stay in any one area on the right-of-way from 5 days to 30 days; - Sec. 34.09.020 C.3.d was amended to remove the 60 decibel limit on generators; - Sec. 34.09.030 A was amended from a civil penalty of $100 to a civil penalty not to exceed $25. The term "shall" remains for consistency purposes and to 267 provide clear notice of potential penalties, but the amended language allows for the court to consider a penalty range of $0 to $25; - A new subsection was added at 34.09.030 B to require the city provide three warnings to a person before issuing a first municipal infraction under any of the time, place, manner restrictions of the ordinance. In addition to a clean final version of Ordinance 2147, track changes of the ordinance are also attached to easily see the specific edits made following the City Commission's amendments. 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 street clean is $153,000 and estimated cost of two new positions to support education and compliance is $200,000) Attachments: Final Ordinance 2147.pdf Track Changes Ordinance 2147 City Commission Amendments 9.18.23.pdf 2023 City of Bozeman Street Clean Up Project Highlights .pdf Report compiled on: October 16, 2023 268 ORDINANCE 2147 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ADOPTING REGULATIONS FOR CAMPING ON CITY RIGHT OF WAY. WHEREAS, the City of Bozeman (the “City”) is authorized by the City Charter and Montana law to establish programs and laws to protect public the health, safety and welfare of the residents of Bozeman; and WHEREAS, pursuant to its Charter, the Montana Constitution, and state law, the City may exercise any power not prohibited by the constitution, law or charter and neither the Montana Constitution, state law, or the City Charter prohibits the City Commission from adopting this Ordinance; and WHEREAS, pursuant to §7-14-4101, MCA, the City has the authority to prevent the encumbering of streets, sidewalks, alleys or public grounds with obstacles or materials; and WHEREAS, the United States Supreme Court has long recognized that a municipality has the right to regulate the use of city streets to assure the safety and convenience of the people in their use, and further, that governmental authorities have the duty and responsibility to keep their streets open and available for movement (Cox v. Louisiana, 379 U.S. 536 (1965)); and WHEREAS, in 2019, the United States Ninth Circuit Court of Appeals (Ninth Circuit) issued its decision in Martin v. Boise, 920 F.3d 584 (9th Cir. 2019), holding in part that the Cruel and Unusual Punishments Clause of the Eighth Amendment “prohibits the imposition of criminal penalties for sitting, sleeping, or lying outside on public property for homeless individuals who cannot obtain shelter;” and WHEREAS, in 2022, the Ninth Circuit issued its decision in Johnson v. City of Grants Pass, 50 F.4th 787 (9th Cir. 2022), holding local ordinances violated the Eighth Amendment to the extent the ordinances prohibited individuals from taking minimal measures to keep warm and dry while sleeping (including sleeping in vehicles); and 269 WHEREAS, currently there are approximately 200 recreational vehicles, campers, vans and other vehicles on the public right-of-way throughout the city wherein people are residing or using the right-of-way for additional storage, and the Commission finds this Ordinance necessary to ensure the public rights-of-way 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; and WHEREAS 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. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: Section 1 That the Bozeman Municipal Code is amended as follows to add a new Article to Chapter 34: Article 9. Camping on Public Right-of-Way. Sec. 34.09.010 Definitions. A. The following words, terms and phrases, when used in this article, have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: 1. “Camping” or “camp” means to pitch, erect, create, inhabit, use, or occupy camp facilities in, or otherwise inhabit, the public right-of-way. 2. “Camp facility” or “camp facilities” include but are not limited to tents, huts, temporary shelters, structures, vehicles as defined in 36.01.020, recreational vehicles with or without motive power designed for use as temporary living quarters or camping, motor homes, camping trailers, tent trailers, truck campers, camper vans, structures, or any other item used for the purpose of camping. 3. “A person experiencing homelessness” means a person that does not have the means to acquire their own shelter and who does not otherwise have access to shelter or transitional housing. 4. “Public right-of-way” means all real property (including property owned in fee or obtained through easement or dedication) administered by the city and which is used for transportation purposes, including streets, roads, bridges, alleys, sidewalks and boulevards, trails, paths, and other public ways. Sec. 34. 09.020 Camping on Public Right-of-Way is Prohibited. A. Camping on the public right-of-way within city limits is prohibited, except as provided in subsections B and C of this section. 270 B. A city employee with authority to enforce this article must refer a person experiencing homelessness camping on the public right-of-way to an available shelter facility or other available temporary housing. A person experiencing homelessness may only camp on the public right-of-way when a shelter facility or other temporary housing is not available. C. If space in a shelter facility or other temporary housing is not available, a person camping on the public right-of-way must comply with the following: 1. Time: No camping may occur in the same location on the public right-of-way for more than 30 consecutive days. No camp facilities may be located or used for camping in the same location or on the same street on the public right-of- way for more than 30 consecutive days. After 30 consecutive days a camp facility must be moved to a different named street. a. A person experiencing homelessness may apply to the city manager for written permission to exceed the length of time restrictions described above. b. Factors the city manager may consider in granting permission include but are not limited to the location of the camp facilities, the person’s employment status, site conditions, and the person’s connections to social services and the community. 2. Place: Camping on the public right-of-way is prohibited, regardless of the availability of shelter space, in the following locations: a. Adjacent to or immediately across from any parcel or lot containing a residential dwelling including lots or parcels with multi-household dwellings; b. Within 100 feet of a public entrance of any commercial business or non- profit organization; c. Adjacent to or immediately across from the boundary of any public park; d. Adjacent to or immediately across from any parcel or lot containing any public or private school, including secondary, elementary, or preschool, or any lot or parcel containing a daycare; e. Any location in violation of any posted parking signs or painted curbs prohibiting parking or otherwise limiting the hours of parking; f. Within a bike lane, street median, sidewalk, or public pathway or trail. 3. Manner: a. All camp facilities and their immediate area must be maintained in a clean and orderly manner. A clean and orderly manner includes, but is not limited to, all waste, debris and trash must be in a container and personal items, when not actively being used, must be stored inside a camp facility. b. No waste, sewage, debris, trash, personal items, or additional vehicles or trailers may be discarded of or stored in the right of way. 271 c. No fires are permitted within the public right-of-way. d. Generators must be stored and located on a paved surface. Fuel must be in containers designed for the fuel stored therein. e. Camping on the paved surface of any street in a tent, tarp, or in only sleeping bags, blankets, or other rudimentary forms of protection from the elements, is prohibited. f. No structures may be built or maintained on the public right-of-way pursuant to 34.02.050. Sec. 34.09.030 Violations; penalties A violation of 34.09.020 shall be a municipal infraction pursuant to Chapter 24, Article 2 of this Code subject to the following: A. Each violation of 34.09.020 shall be punishable by a civil penalty not to exceed twenty- five dollars. Each day a violation occurs constitutes a separate offense. B. In addition to the requirements of 24.02.030B, the city must prove by clear and convincing evidence that three warnings were given to the person prior to the issuance of the first municipal infraction under any subsection of Sec. 34. 09.020C. C. If unsanitary conditions exist, the city may abate or cause to be abated any waste, debris, trash, structure, tent, property, or item in the public right-of-way by conspicuously posting a 72-hour notice of abatement. After the 72-hour notice period, any property remaining will be considered abandoned and subject to disposal. No notice is required to abate a condition impeding traffic or when the condition poses an imminent risk to public health or safety. D. The city may remove or cause to be removed any camp facility in violation of 34.09.020.C.2 after posting a notice on or near the camp facility for at least 24 hours prior to removal. No notice is required if the camp facility is impeding traffic or poses an imminent risk to public health or safety. E. In the event a camp facility belonging to a person experiencing homelessness is towed or impounded by the city, no fees will be associated with the first or second towing or impoundment. In the event the city tows or causes to be towed a camp facility belonging to a person experiencing homelessness three (3) or more times due to violations of this article, costs of towing and impoundment may be assessed against the owner. F. This Article may be enforced by any city law enforcement officer, code enforcement officer, parking enforcement officer or other employee upon written designation by the city manager. Determinations regarding abatement or emergency removal without notice shall be made by the director of transportation and engineering or their designee. Section 2 Repealer. All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this Ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of 272 the City of Bozeman not in conflict with the provisions of this Ordinance shall remain in full force and effect. Section 3 Savings Provision. This Ordinance does not affect the rights and duties that matured, penalties that were incurred or proceedings that were begun before the effective date of this ordinance. All other provisions of the Bozeman Municipal Code not amended by this Ordinance shall remain in full force and effect. Section 4 Severability. That should any sentence, paragraph, subdivision, clause, phrase or section of this Ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this Ordinance as a whole, or any part or provision thereof, other than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman Municipal Code as a whole. Section 5 Codification. The provisions of Section 1 shall be codified as appropriate in Chapter 34 of the Bozeman Municipal Code. Section 6 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 19th day of September, 2023. ____________________________________ CYNTHIA L. ANDRUS 273 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 therefor held on the 24th day of October 2023. ____________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: _______________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ________________________________ GREG SULLIVAN City Attorney 274 ORDINANCE 2147 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ADOPTING REGULATIONS FOR CAMPING ON CITY RIGHT OF WAY. WHEREAS, the City of Bozeman (the “City”) is authorized by the City Charter and Montana law to establish programs and laws to protect public the health, safety and welfare of the residents of Bozeman; and WHEREAS, pursuant to its Charter, the Montana Constitution, and state law, the City may exercise any power not prohibited by the constitution, law or charter and neither the Montana Constitution, state law, or the City Charter prohibits the City Commission from adopting this Ordinance; and WHEREAS, pursuant to §7-14-4101, MCA, the City has the authority to prevent the encumbering of streets, sidewalks, alleys or public grounds with obstacles or materials; and WHEREAS, the United States Supreme Court has long recognized that a municipality has the right to regulate the use of city streets to assure the safety and convenience of the people in their use, and further, that governmental authorities have the duty and responsibility to keep their streets open and available for movement (Cox v. Louisiana, 379 U.S. 536 (1965)); and WHEREAS, in 2019, the United States Ninth Circuit Court of Appeals (Ninth Circuit) issued its decision in Martin v. Boise, 920 F.3d 584 (9th Cir. 2019), holding in part that the Cruel and Unusual Punishments Clause of the Eighth Amendment “prohibits the imposition of criminal penalties for sitting, sleeping, or lying outside on public property for homeless individuals who cannot obtain shelter;” and WHEREAS, in 2022, the Ninth Circuit issued its decision in Johnson v. City of Grants Pass, 50 F.4th 787 (9th Cir. 2022), holding local ordinances violated the Eighth Amendment to the extent the ordinances prohibited individuals from taking minimal measures to keep warm and dry while sleeping (including sleeping in vehicles); and 275 WHEREAS, currently there are approximately 200 recreational vehicles, campers, vans and other vehicles on the public right-of-way throughout the city wherein people are residing or using the right-of-way for additional storage, and the Commission finds this Ordinance necessary to ensure the public rights-of-way 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; and WHEREAS 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. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: Section 1 That the Bozeman Municipal Code is amended as follows to add a new Article to Chapter 34: Article 9. Camping on Public Right-of-Way. Sec. 34.09.010 Definitions. A. The following words, terms and phrases, when used in this article, have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: 1. “Camping” or “camp” means to pitch, erect, create, inhabit, use, or occupy camp facilities in, or otherwise inhabit, the public right-of-way. 2. “Camp facility” or “camp facilities” include but are not limited to tents, huts, temporary shelters, structures, vehicles as defined in 36.01.020, recreational vehicles with or without motive power designed for use as temporary living quarters or camping, motor homes, camping trailers, tent trailers, truck campers, camper vans, structures, or any other item used for the purpose of camping. 3. “Involuntarily homeless” “A person experiencing homelessness” means a person that does not have the means to acquire their own shelter and who does not otherwise have access to shelter or transitional housing. 4. “Public right-of-way” means all real property (including property owned in fee or obtained through easement or dedication) administered by the city and which is used for transportation purposes, including streets, roads, bridges, alleys, sidewalks and boulevards, trails, paths, and other public ways. Sec. 34. 09.020 Camping on Public Right-of-Way is Prohibited. A. Camping on the public right-of-way within city limits is prohibited, except as provided in subsections B and C of this section. 276 B. A city employee with authority to enforce this article must refer an individual who is involuntarily homeless a person experiencing homelessness who is camping on the public right-of-way to an available shelter facility or other available temporary housing. Individuals who are involuntarily homeless A person experiencing homelessness may only camp on the public right-of-way when a shelter facility or other temporary housing is not available. C. If space in a shelter facility or other temporary housing is not available, a person camping on the public right-of-way must comply with the following: 1. Time: No camping may occur in the same location on the public right-of-way for more than five (5) 30 consecutive days. No camp facilities may be located or used for camping in the same location or on the same street on the public right-of-way for more than five (5) 30 consecutive days. After five (5) 30 consecutive days a camp facility must be moved to a different named street. a. A person who is involuntarily homeless experiencing homelessness may apply to the city manager for written permission to exceed the length of time restrictions described above. b. Factors the city manager may consider in granting permission include but are not limited to the location of the camp facilities, the person’s employment status, site conditions, and the person’s connections to social services and the community. 2. Place: Camping on the public right-of-way is prohibited, regardless of the availability of shelter space, in the following locations: a. Adjacent to or immediately across from any parcel or lot containing a residential dwelling including lots or parcels with multi-household dwellings; b. Within 100 feet of a public entrance of any commercial business or non- profit organization; c. Adjacent to or immediately across from the boundary of any public park; d. Adjacent to or immediately across from any parcel or lot containing any public or private school, including secondary, elementary, or preschool, or any lot or parcel containing a daycare; e. Any location in violation of any posted parking signs or painted curbs prohibiting parking or otherwise limiting the hours of parking; f. Within a bike lane, street median, sidewalk, or public pathway or trail. 3. Manner: a. All camp facilities and their immediate area must be maintained in a clean and orderly manner. A clean and orderly manner includes, but is not limited to, all waste, debris and trash must be in a container and personal items, when not actively being used, must be stored inside a camp facility. 277 b. No waste, sewage, debris, trash, personal items, or additional vehicles or trailers may be discarded of or stored in the right of way. c. No fires are permitted within the public right-of-way. d. Only generators rated not to exceed 60 decibels are permitted to be operated on the right-of-way. Generators must be stored and located on a paved surface. Fuel must be in containers designed for the fuel stored therein. e. Camping on the paved surface of any street in a tent, tarp, or in only sleeping bags, blankets, or other rudimentary forms of protection from the elements, is prohibited. f. No structures may be built or maintained on the public right-of-way pursuant to 34.02.050. Sec. 34.09.030 Violations; penalties A violation of 34.09.020 shall be a municipal infraction pursuant to Chapter 24, Article 2 of this Code subject to the following: A. Each violation of 34.09.020 shall be punishable by a civil penalty not to exceed twenty- five of one hundred dollars. Each day a violation occurs constitutes a separate offense. B. In addition to the requirements of 24.02.030(B), the city must prove by clear and convincing evidence that three warnings were given to the person prior to the issuance of the first municipal infraction under any subsection of Sec. 34. 09.020C. C. If unsanitary conditions exist, the city may abate or cause to be abated any waste, debris, trash, structure, tent, property, or item in the public right-of-way by conspicuously posting a 72-hour notice of abatement. After the 72-hour notice period, any property remaining will be considered abandoned and subject to disposal. No notice is required to abate a condition impeding traffic or when the condition poses an imminent risk to public health or safety. D. The city may remove or cause to be removed any camp facility in violation of 34.09.020.C.2 after posting a notice on or near the camp facility for at least 24 hours prior to removal. No notice is required if the camp facility is impeding traffic or poses an imminent risk to public health or safety. E. In the event a camp facility belonging to an involuntarily homeless person a person experiencing homelessness is towed or impounded by the city, no fees will be associated with the first or second towing or impoundment. In the event the city tows or causes to be towed a camp facility belonging to an involuntarily homeless person a person experiencing homelessness three (3) or more times due to violations of this article, costs of towing and impoundment may be assessed against the owner. F. This Article may be enforced by any city law enforcement officer, code enforcement officer, parking enforcement officer or other employee upon written designation by the city manager. Determinations regarding abatement or emergency removal without notice shall be made by the director of transportation and engineering or their designee. Section 2 278 Repealer. All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this Ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of the City of Bozeman not in conflict with the provisions of this Ordinance shall remain in full force and effect. Section 3 Savings Provision. This Ordinance does not affect the rights and duties that matured, penalties that were incurred or proceedings that were begun before the effective date of this ordinance. All other provisions of the Bozeman Municipal Code not amended by this Ordinance shall remain in full force and effect. Section 4 Severability. That should any sentence, paragraph, subdivision, clause, phrase or section of this Ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this Ordinance as a whole, or any part or provision thereof, other than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman Municipal Code as a whole. Section 5 Codification. The provisions of Section 1 shall be codified as appropriate in Chapter 34 of the Bozeman Municipal Code. Section 6 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 19th day of September, 2023. 279 ____________________________________ 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 therefor held on the 24th day of October 2023. ____________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: _______________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ________________________________ GREG SULLIVAN City Attorney 280 2023 Street Clean Up Highlights Street/Areas Cleaned Iron Horse Haggerty/Ellis 11th Street between Oak and Baxter Hemlock Nelson Meadows and Prince Max/Kimberwicke / Rawhide Ridge & Davis Quadrant Dates of Clean Up: May 22 through June 16, 2023 (week of May 22 was pre-clean notification to urban campers) Total Clean Up Costs: $51,174 Number of city employee hours worked: 629 Trash collected/disposed: 420 cubic yards of trash Contacts with urban campers: Approximately 150 Resources Unhoused on Public Rights of Way Belonging in Bozeman 281 Memorandum REPORT TO:City Commission FROM:Jessica Ahlstrom, Water Conservation Program Manager John Alston, Director of Utilities SUBJECT:Resolution 5547 Adopting the City of Bozeman 2023 Water Conservation and Efficiency Plan MEETING DATE:October 24, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION:I hereby move that the City Commission pass, adopt, and approve Resolution 5547, approving the adoption of the City of Bozeman 2023 Water Conservation and Efficiency Plan STRATEGIC PLAN:6.1 Clean Water Supplies: Ensure adequate supplies of clean water for today and tomorrow. BACKGROUND:In 2013, the City Commission adopted an Integrated Water Resources Plan (IWRP), which identifies water supply and use policies and practices for future consideration and recommends that water conservation be a cornerstone to Bozeman’s water resource management. Specifically, the IWRP recommends that water conservation measures reduce the projected water supply/demand gap by fifty percent by the year 2062. Upon adoption, the City Commission specifically supported the implementation of education and incentive-based water conservation measures, with a recognition that regulatory measures would need to be implemented in the future. Since the adoption of the IWRP, the City has implemented numerous education and incentive-based initiatives, including but not limited to the Water Smart Bozeman education campaign, four indoor rebates, six outdoor rebates, free product giveaways, free sprinkler system assessments, free commercial site assessments, five drought tolerant demonstration gardens, a free customer water use portal, school education programming, landscape and irrigation seminars for residents and industry professionals, two educational videos about Bozeman’s water, free publications, and community event participation in which over 9,000 people have been reached. The implementation of regulatory measures began with the adoption of the 2017 Drought Management Plan. Additional regulatory measures adopted include water conservation-based rates and drought rates in 2019, a revised water adequacy policy including water efficiency offsets in 2020, the 2022 Drought Management Plan, and permanent time of day and day of week outdoor watering restrictions, also adopted in 2022. The attached 2015- 282 2022 Water Conservation Program Report provides a comprehensive review of water conservation program measures and initiatives implemented to date. The City Commission’s adoption of the IWRP, and the subsequent implementation of these conservation measures, highlights the significant role that water conservation plays in addressing the city’s long-term water supply needs. The 2023 Water Conservation Plan (Plan) will serve as an integral tool to support informed big-picture water supply management by identifying achievable water savings through the city’s water conservation program. At a more detailed scale, the Plan will serve as a flexible roadmap for water conservation program planning and implementation through the year 2040 and ensure that implemented program measures are cost- effective and realize meaningful water savings. The Plan includes a water demand analysis, conservation measure evaluation, conservation program evaluation, and implementation plan and schedule. The conservation measure and program evaluation is supported by a least cost planning decision support system (DSS) model that analyzes utility and customer costs and savings to generate a benefit/cost ratio for each program measure. Three ‘programs’, each comprising of different program measures, are included in the Plan; Program A (existing measures), Program B (recommended measures), and Program C (all measures modeled). Program measures include education, incentives, rate structures, utility infrastructure management, and policies related to water efficient growth. Regulatory measures included in the Plan will require future discussion and legislative action of the City Commission to officially enact. All program measures are subject to budgetary and staffing resources authorized by the City Commission. UNRESOLVED ISSUES:None. ALTERNATIVES:As suggested by the Commission. FISCAL EFFECTS:None. Attachments: Resolution 5547_2023 Water Conservation and Efficiency Plan.pdf Exhibit A_2023 Water Conservation and Efficiency Plan.pdf 2015-2022 Water Conservation Program Report.pdf Report compiled on: October 12, 2023 283 RESOLUTION 5547 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ADOPTING THE 2023 CITY OF BOZEMAN WATER CONSERVATION AND EFFICIENCY PLAN WHEREAS, the Bozeman City Commission is authorized, pursuant to Mont. Code Ann. § 7-13-4402 (2021), to adopt, enter into, and carry out means for securing a supply of water for the use of the City and its inhabitants; and WHEREAS, the City of Bozeman is responsible for providing current and future customers with a reliable, sustainable, and cost-effective supply of high quality drinking water at all times and is committed to making the highest and best use of our local water resources; and WHEREAS, Bozeman is a semi-arid, headwaters community dependent on limited water supplies that are subject to impacts from drought; and WHEREAS, drought events, population growth, and impacts of climate change on water supply yields, make Bozeman increasingly susceptible to water supply reliability challenges; and WHEREAS, the City of Bozeman adopted the 2013 Integrated Water Resources Plan which calls for water conservation to reduce the future water supply demand gap by fifty percent; and WHEREAS, the City of Bozeman determined that water use efficiency and conservation programs are key components of its sustainable water resource management strategy; and WHEREAS, a plan outlining achievable water savings through the implementation of various water conservation program measures is important for long term water resource management planning; and WHEREAS, education and incentive-based water conservation program measures are necessary to achieve water use reductions associated with end users in the community; and WHEREAS, the City of Bozeman sets water rates and performs water utility cost of service analyses to determine the true cost of serving each water rate customer class; and WHEREAS, strategic rate setting and water conservation based rates ensure that water rates are equitable, convey the value of Bozeman’s water, and are structured so that customers pay for the true cost of their usage; and WHEREAS, the City of Bozeman recognizes the importance of implementing water efficient growth policies in order to ensure adequate water supplies are available for future growth; and WHEREAS, the implementation of water conservation program measures is an expedient and cost effective manner in which to meet future water demands by extending the reach of current supplies; and 284 WHEREAS, a water conservation plan that serves as a planning framework while maintaining flexibility to accommodate changing priorities, budgetary resources, and water efficient technologies is paramount to successful plan implementation; and WHEREAS, the implementation of the recommended suite of measures and associated implementation plan of the 2023 Water Conservation and Efficiency Plan is subject to the availability of staffing and budgetary resources authorized by the City Commission; and WHEREAS, the 2023 Water Conservation and Efficiency Plan includes recommended regulatory measures that will require future legislative action of the City Commission to officially enact. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: Section 1 The 2023 Water Conservation and Efficiency Plan is hereby adopted to serve as a policy and planning framework for the City’s Water Conservation Division; the recommendations and implementation plan contained within it are adopted with the intent that implementation occur in a flexible or adaptive manner such that incremental progress be made towards achieving the Plan’s recommended long-range goals and objectives, recognizing that available staffing and budgetary resources may change over time. Section 2 The 2023 Water Conservation and Efficiency Plan contains water efficient growth policies that may be incorporated or identified in the City’s land use plan. Section 3 A copy of the 2023 Water Conservation and Efficiency Plan is attached as Exhibit "A" and incorporated into this Resolution. 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: 285 ___________________________________ GREG SULLIVAN City Attorney 286 mu City of Bozeman Water Conservation and Efficiency Plan February 15, 2023 Prepared by: 287 City of Bozeman Water Conservation & Efficiency Plan 2 TABLE OF CONTENTS PAGE LIST OF FIGURES ....................................................................................................................................................................4 LIST OF TABLES ......................................................................................................................................................................4 ABBREVIATIONS AND ACRONYMS ........................................................................................................................................6 EXECUTIVE SUMMARY ...........................................................................................................................................................7 Introduction ..........................................................................................................................................................................7 Program Overview ...............................................................................................................................................................7 Program Implementation ......................................................................................................................................................8 1 INTRODUCTION................................................................................................................................................................10 1.1 Overview of City of Bozeman Water System and Demand Management .................................................................10 1.2 Project Background ...................................................................................................................................................12 1.3 Purpose and Scope of Plan .......................................................................................................................................12 1.4 Plan Development .....................................................................................................................................................13 2 ANALYSIS OF WATER DEMAND .....................................................................................................................................15 2.1 Information Review and Data Collection Methods .....................................................................................................15 2.2 Production vs. Consumption ......................................................................................................................................16 2.3 Consumption by User Category ................................................................................................................................16 2.4 Historical and Current Conservation Programs .........................................................................................................18 3 CONSERVATION MEASURE EVALUATION ....................................................................................................................21 3.1 Screening of Conservation Measures .......................................................................................................................21 3.2 Conservation Measures Evaluated ............................................................................................................................24 3.3 Conservation Measures Analysis ..............................................................................................................................28 4 CONSERVATION PROGRAM EVALUATION ...................................................................................................................31 4.1 Measure Selection for Conservation Program Alternatives .......................................................................................31 4.2 Conservation Program Analysis ................................................................................................................................32 4.3 Recommended Program ...........................................................................................................................................36 5 WATER CONSERVATION IMPLEMENTATION PLAN AND SCHEDULE ........................................................................37 5.1 Monitoring Progress ..................................................................................................................................................37 5.2 Track and Update for New Codes and Emerging Technologies ................................................................................37 5.3 Proposed Implementation Schedule ..........................................................................................................................38 5.4 Five-Year Implementation Recommendations ...........................................................................................................40 5.5 Staffing Needs ...........................................................................................................................................................40 6 NEXT STEPS AND CONCLUSIONS .................................................................................................................................42 6.1 Next Steps .................................................................................................................................................................42 6.2 Conclusions ...............................................................................................................................................................43 7 REFERENCES ..................................................................................................................................................................44 APPENDIX A – HISTORICAL MONTHLY WATER USE PER ACCOUNT TYPE....................................................................45 APPENDIX B – DSS MODEL OVERVIEW ..............................................................................................................................49 APPENDIX C – PROJECTED WATER DEMANDS WITH AND WITHOUT PLUMBING CODE SAVINGS ............................52 C.1 Projected Baseline Demand ......................................................................................................................................52 288 City of Bozeman Water Conservation & Efficiency Plan 3 C.2 Estimated Plumbing Code Savings ...........................................................................................................................52 C.3 National Plumbing Code ............................................................................................................................................54 C.4 Key Baseline Potable Demand Inputs, Passive Savings Assumptions, and Resources ...........................................55 APPENDIX D – DSS MODEL MEASURE ANALYSIS, METHODOLOGY, PERSPECTIVES, AND ASSUMPTIONS ............60 D.1 Water Reduction Methodology ..................................................................................................................................60 D.2 Present Value Analysis and Perspectives on Benefits and Costs .............................................................................60 D.3 Measure Cost and Water Savings Assumptions .......................................................................................................61 APPENDIX E – INDIVIDUAL CONSERVATION MEASURE DESIGN INPUTS AND RESULTS ............................................63 Water Loss .........................................................................................................................................................................63 Tiered Rate Structure for MF .............................................................................................................................................64 AMI and Customer Water Use Portal .................................................................................................................................65 Capital Project – Retrofit City Medians with Drought Tolerant Landscaping and Efficient Irrigation ..................................66 Capital Project – Upgrade City Facility Irrigation Systems .................................................................................................67 Dedicated Irrigation Meters & Irrigation Account Rate Structure ........................................................................................68 Impact Fee Credit...............................................................................................................................................................69 Financial Incentives for Irrigation and Landscape Upgrades .............................................................................................70 Landscape Conversion or Turf Removal Rebate ...............................................................................................................71 Capital Project – HE Fixture Installation in Gov't Bldg. ......................................................................................................72 School Building Retrofit ......................................................................................................................................................73 CII High Efficiency Washer Rebate ....................................................................................................................................74 Water Budget-Based Billing and Water Budgeting.............................................................................................................75 Efficient Fixture Giveaway ..................................................................................................................................................76 Residential Efficiency Fixture Incentive Program ...............................................................................................................77 Residential Water Use Surveys .........................................................................................................................................78 Low Income Direct Installation Rebates and Leak Repair Assistance ...............................................................................79 Public Education ................................................................................................................................................................80 Contractor Efficient Outdoor Use Education and Training Programs .................................................................................81 Xeriscape Demonstration Gardens ....................................................................................................................................82 Require HE Toilets, Showerheads, Faucets, Urinals in New Development .......................................................................83 Fixture Retrofit on Resale or Name Change on Water Account .........................................................................................84 Require Irrigation Designers/Installers Be Certified ...........................................................................................................85 Mandatory Water Efficiency Offsets ...................................................................................................................................86 Landscape Ordinance – Tier 3 ...........................................................................................................................................87 APPENDIX F – CONSERVATION ANALYSIS RESULTS .......................................................................................................88 APPENDIX G – EXAMPLES OF LOCAL OUTREACH INITIATIVES ......................................................................................94 Social Media Examples ......................................................................................................................................................94 Online Examples ................................................................................................................................................................95 Print Ad Examples..............................................................................................................................................................98 APPENDIX H – COMMUNITY STAKEHOLDER CONSERVATION MEASURE SURVEYS SUMMARY AND RESULTS ......99 Water Conservation and Efficiency Plan Community Engagement Summary ...................................................................99 City of Bozeman Water Conservation Plan Survey Results ............................................................................................. 102 APPENDIX I – WATER ADEQUACY CODE ......................................................................................................................... 128 APPENDIX J – NET BLUE WATER OFFSET PILOT STUDY ............................................................................................... 130 289 City of Bozeman Water Conservation & Efficiency Plan 4 LIST OF FIGURES Figure ES-1. City of Bozeman Historical and Projected Demand ............................................................................ 9 Figure 2-1. Consumption by Customer Category in Start Year ............................................................................. 17 Figure 3-1. City of Bozeman Measure Screening Criteria ..................................................................................... 22 Figure 3-2. Conservation Program Cost of Savings per Unit Volume.................................................................... 30 Figure 4-1. Selected Conservation Program Measures ......................................................................................... 32 Figure 4-2. Conservation Program Per Capita Water Savings ............................................................................... 33 Figure 4-3. Estimated Conservation Program Utility Costs and Staffing ............................................................... 33 Figure 4-4. City of Bozeman Historical and Projected Demand ............................................................................ 35 Figure 4-5. Selected Program Details .................................................................................................................... 36 Figure 5-1. Conservation Measures Implementation Schedule (2020–2040) ...................................................... 39 Figure 5-2. Estimated Conservation Program Utility Costs and Staffing for the Recommend Program .............. 41 Figure B-1. DSS Model Main Page ......................................................................................................................... 49 Figure B-2. Sample Benefit-Cost Analysis Summary ............................................................................................. 50 Figure B-3. DSS Model Analysis Locations in the U.S. ........................................................................................... 50 Figure B-4. DSS Model Analysis Flow .................................................................................................................... 51 Figure C-1. DSS Model Overview Used to Make Potable Water Demand Projections ......................................... 53 Figure C-2. City of Bozeman Potable Water System Demands ............................................................................. 54 LIST OF TABLES Table 2-1. Data Inventory for City of Bozeman ..................................................................................................... 15 Table 2-2. City of Bozeman's Active Water Conservation Measures .................................................................... 18 Table 3-1. Community Stakeholder Surveys and Number of Responses .............................................................. 21 Table 3-2. Capital Projects Implementation Schedule and Water Savings ........................................................... 23 Table 3-3. City Operations Water Use Optimization Measures Implementation Schedule and Water Savings .. 23 Table 4-1. Conservation Program Benefit-Cost Ratios .......................................................................................... 32 Table 4-2. City of Bozeman Potable Water System Demands for Years 2025–2040 in AFY ................................. 34 Table 4-3. City of Bozeman Potable Water System Demands for Years 2025–2040 in GPCD .............................. 34 Table C-1. City of Bozeman Potable Water System Demands for Years 2025–2040 in AFY ................................. 53 Table C-2. City of Bozeman Potable Water System Demands for Years 2025–2040 in GPCD .............................. 54 Table C-3. List of Key Assumptions ....................................................................................................................... 56 Table C-4. Key Assumptions Resources ................................................................................................................. 57 Table F-1. Estimated Conservation Measure Costs and Savings ........................................................................... 89 Table F-2. Conservation Program Estimated Costs and Water Savings ................................................................ 93 290 City of Bozeman Water Conservation & Efficiency Plan 5 Table H-1. Community Stakeholder Conservation Measure Surveys Overview ................................................. 101 291 City of Bozeman Water Conservation & Efficiency Plan 6 ABBREVIATIONS AND ACRONYMS F degrees Fahrenheit acct account AF acre-feet AFY acre-feet per year AMI Advanced Metering Infrastructure AWE Alliance for Water Efficiency AWWA American Water Works Association AWWARF American Water Works Association Research Foundation CAGR compound annual population growth rate CII Commercial, Industrial, and Institutional CIP Capital Improvement Plan COM Commercial DSS Model Least Cost Planning Decision Support System Model DU Distribution Uniformity EPA ET Environmental Protection Agency Evapotranspiration FTE full-time equivalent GIS Geographic Information System GPCD gallons per capita per day gpd gallons per day GPDA gallons per day per account gpf gallons per flush gpm gallons per minute HE high efficiency HET high efficiency toilet IA Irrigation Association IAPMO International Association of Plumbing and Mechanical Officials ILI Infrastructure Leakage Index INS Institutional IWRP Integrated Water Resources Plan LI Landscape Irrigation MF Multi-Family MSMT multi-stream, multi-trajectory MSU Montana State University MWM Maddaus Water Management N/A not applicable NOAA National Oceanic and Atmospheric Administration NRW non-revenue water Plan Water Conservation Plan psi pounds per square inch R Residential REUWS Residential End Uses of Water Study SF UARL Single Family Unavoidable annual real losses WUE Water Use Efficiency 292 City of Bozeman Water Conservation & Efficiency Plan 7 EXECUTIVE SUMMARY The purpose of this Executive Summary is to briefly describe the City of Bozeman’s (City’s) Water Conservation and Efficiency Plan (Plan). The evaluation process and assumptions used to develop this Plan, as well as recommendations for future implementation, are included in this section. Introduction This Plan will enable the City to project long-range demands, identify attainable conservation goals, develop strategies, and raise awareness through the identification and prioritization of conservation measures. The Plan sets measurable targets regarding existing and future conservation initiatives through a cost-effective suite of water conservation measures1 that will help meet future water needs. The Plan also includes implementation and monitoring strategies to aid the City in establishing and administering effective conservation initiatives to achieve program goals. By combining new initiatives with existing programs as part of a comprehensive strategy for sustainable management of water supplies, the City’s conservation activities proposed within this Plan are expected to save an estimated 4,435 acre-feet per year (AFY) of water. Program Overview Beginning in 2020, Maddaus Water Management Inc. (MWM) conducted a conservation technical analysis for the City. The purpose of the analysis, as well as the foundation of the development of this Plan, was four-fold: The planning process included analyzing conservation measures and programs using the Least Cost Planning Decision Support System Model (DSS Model), developed by MWM. A screening of more than 140 measures, directed at existing customers and new development, was conducted following the methodology presented in the American Water Works Association Manual of Practice, M52 Water Conservation Programs – A Planning Manual (AWWA, 2017). 1 Though “demand management measure” is not a term used in this report, it is relevant to note that it is essentially the same as the term “water conservation measure.” So, in this report, “demand management” and “water conservation” are used interchangeably. 293 City of Bozeman Water Conservation & Efficiency Plan 8 Program Implementation The City’s Current Conservation Program scenario (referred to herein as Program A) consists of 11 measures, including measures that focus on indoor and outdoor efficiency for both Residential (RES) and Commercial, Industrial, and Institutional (CII) customers. The City’s Recommended Program (referred to herein as Program B) has 18 measures and expands on the Current Conservation Program’s foundation by including 7 additional measures soon to be implemented; they are generally cost-effective and save significant amounts of water. The additional measures in Program B include the following: • Capital Project – Retrofit City Medians with Drought Tolerant Landscaping and Efficient Irrigation • Impact Fee Credit • CII High Efficiency Washer Rebate • Low Income Direct Installation Rebates and Leak Repair Assistance • Require Irrigation Designers/Installers Be Certified • Mandatory Water Efficiency Offsets • Landscape Ordinance – Tier 3 The benefits of the City’s Recommended Program measures include: • Alignment with the City Utility Department’s goal of providing residents with the sustainable foundation to thrive by delivering quality services and public infrastructure through efficient and fiscally responsible practices. • Alignment with the guiding principle to improve local water supply reliability. • A long-term plan that models a cost-effective means to manage water supplies. • Alignment with AWWA’s G480 standard which includes the following voluntary requirements: o Dedicated staff for conservation initiative (point of contact) o Conservation and efficiency planning o Integrated resources planning o Water shortage or drought plan o Public information and education o Water waste ordinance o Universal metering and source water metering practices o Non-promotional water rate o Monthly billing based on metered use o Clear definition of water use units in gallons or liters o Landscape efficiency program o Water loss control program • Actions that support objectives outlined in the Bozeman Strategic Plan, 2013 Integrated Water Resources Plan, 2020 Climate Plan, and 2020 Bozeman Community Plan. Program C, which includes all 25 measures modeled, adds several more measures making it the most expensive suite of measures as well as the one that will achieve the most water savings. In addition to active conservation, this analysis investigates plumbing code savings, also known as passive savings. When developing the baseline water demand, the DSS Model accounts for savings due to plumbing codes. Modeling plumbing codes represents the change of fixtures to be efficient over time. Modeling and quantifying these savings helps to analyze the future GPCD. Plumbing code elements include current local and federal standards for retrofits of items such as toilets, showerheads, faucets, and pre-rinse spray valves. At this time, the plumbing code is conservative and only includes the currently adopted legislation. Based on recent history in the U.S. and Montana, as well as a continual movement toward more efficient devices, it is likely that 294 City of Bozeman Water Conservation & Efficiency Plan 9 more codes and efficient practices will be adopted in the future. If more standards are approved, they could yield additional water savings. The following figure presents historical and projected demand for the City with and without plumbing code savings in AFY. Figure ES-1. City of Bozeman Historical and Projected Demand All line types shown in the legend are presented in the graph. However, Program B and Program C demand scenarios are close in value and therefore may be somewhat indistinguishable in the figure. Recommendations for future water conservation measure implementation begin with actively tracking measure participation, projected water savings (including per capita water use reductions), program costs, and benefits. Each year the City should develop a work plan to ensure the City is on track to meet its conservation goals. This work plan should prioritize measures that contribute the most to meeting the per capita water use targets and include a review of the staffing required to adequately support program needs. If necessary, consider outsourcing to gain enough program support. Lastly, pursue funding opportunities such as state and federal grants as appropriate, retain strategic partnerships, and encourage stakeholder participation as the program evolves. Future implementation options include pursuing a statistically valid water conservation awareness study to inform program development and ensure the implementation schedule included in the Plan aligns with customer understanding and awareness of local water conservation efforts. Also consider using AMI consumption data to monitor water usage and identify instances of non-compliance with regulatory measures. 295 City of Bozeman Water Conservation & Efficiency Plan 10 1 INTRODUCTION This section provides an overview of the City of Bozeman’s (City) water system, the purpose and scope of the Water Conservation and Efficiency Plan (Plan), and a project background of the steps used to complete the Plan. 1.1 Overview of City of Bozeman Water System and Demand Management The City of Bozeman, located in Gallatin County, Montana, provides water service to approximately 14,500 metered connections, in which 73% represent single family homes and 18% represent multi-family residences. Total annual metered production during the 2020 calendar year was approximately 6,822 acre-feet (AF). Irrigation demands increase substantially during summer months (May through September), in which 50% of total residential water use goes into lawns and landscapes. The average annual water demand from 2016– 2020 was 120 GPCD (based on metered production). The City relies on snowpack and surface water for its water supply, receiving 80% of its water from the Gallatin Mountains and 20% from developed springs in the Bridger Mountains. Furthermore, the City is in a closed basin as it pertains to new water rights, making it exceptionally challenging to develop additional water supplies to meet growing demands. The City’s Water Conservation Division, under the Utilities Department, was developed after the adoption of the 2013 Integrated Water Resources Plan (IWRP), which recommends alternatives for generating additional water supplies to meet projected future demands through new supply development and demand management initiatives. Ultimately, the IWRP recommends that water conservation measures reduce the City’s projected 50-year water supply gap by 50%. To date, the Water Conservation Division has implemented various incentive and education-based program measures, with a primary focus on voluntary water conservation measures, specifically. This includes rebates for indoor and outdoor water efficient fixtures, free devices and other incentives, technical assistance, and informational resources. In 2017, the City adopted its first Drought Management Plan, which outlines four stages of drought declarations and temporary response measures to reduce demand during the declared drought, providing the City with a tool to ensure water availability for essential uses when water supplies are stressed. The Drought Management Plan was updated in 2022 to reflect changes to the City’s drought reserve and surcharge rates, drought declaration process, and drought monitoring procedure. Permanent outdoor watering restrictions, which limit outdoor watering of lawns and landscapes to three days per week only during the most efficient times of day, became effective on June 16, 2022. The implementation of these restrictions marks the City’s first notable regulatory change in effect year-after-year to ensure water use efficiency in the community. Climate The climate in the City is typically characterized by short, warm, mostly clear summers and freezing, snowy, partly cloudy winters. Annual precipitation averages about 16 inches,2 while annual ETo in the region is 39 inches.3 Throughout the year, the temperature typically varies from 13 degrees Fahrenheit (°F) to 83°F and is rarely below -7°F or above 93°F.4 2 https://www.usbr.gov/gp/agrimet/station_bozm_bozeman.html 3 https://www.usbr.gov/gp/agrimet/station_bozm_bozeman.html 4 https://www.bestplaces.net/climate/city/montana/Bozeman 296 City of Bozeman Water Conservation & Efficiency Plan 11 With a historical average of 16 inches of precipitation annually, the City is considered drought prone. The greater Bozeman area has experienced numerous drought events in the past, and future projections indicate more climate variability, including earlier peak runoffs; more precipitation in the form of rain than snow; and hotter, drier summers – likely stressing the City’s water supply. In 2017, extreme drought caused extensive impacts to agriculture in Montana and neighboring states. According to the National Oceanic and Atmospheric Administration (NOAA) National Centers for Environmental Information (NCEI), “Field crops including wheat were severely damaged and the lack of feed for cattle forced ranchers to sell off livestock” and “Montana in particular was affected by wildfires that burned in excess of 1 million acres.”5 In 2021, extremely hot and dry weather patterns emerged in Southwest Montana and persisted throughout the summer, impacting the City’s local water supplies. Local streamflow levels reached historical lows, and the volume of water available for use in Hyalite Reservoir dropped due to low inflows and likely increased usage by shareholders.6 As a result, the City declared a stage 2 drought. Outdoor watering of lawns and landscapes was limited to two days per week, and only during the most efficient times of day. As a result of drought-related water conservation efforts, system wide water demand was reduced by 23%. According to the U.S. Geological Survey’s National Climate Change Viewer, temperatures in Gallatin County are expected to increase between 2.89F and 3.46F from 2025 to 2049.7 The City’s 2019 Climate Vulnerability Assessment identified average annual temperature increases between 4.5F and 6F from 2040 to 2069. The Assessment goes on to state, “in the modeled scenarios, the timing of precipitation (e.g., winter versus spring and summer) and the form in which it will occur (e.g., rain versus snow) is anticipated to shift. This combination of increasingly warmer days with variable precipitation results in interrelated, indirect local climate impacts. For example, decreased snowpack may lead to more severe droughts in the summer and a susceptibility to wildfire risk in the watershed… The heightened susceptibility to wildfire could reduce the amount and quality of water available along with damaging ecosystems and infrastructure, limiting city-wide services available to address the impacts… As snowpack is particularly sensitive to warming trends, a decline in snowpack volume with shifts toward earlier snowmelt will impact management and allocation of local water resources, especially considering Bozeman’s limited water storage.” The City’s 2020 Climate Action Plan sets mitigation goals including a 26% reduction in emissions by 2025 (in comparison to 2008), 100% clean electricity by 2030 and carbon neutrality by 2050. 5 National Oceanic and Atmospheric Administration (NOAA) National Centers for Environmental Information (NCEI). (2022). U.S. Billion-Dollar Weather and Climate Disasters, DOI: 10.25921/stkw-7w73. https://www.ncdc.noaa.gov/billions/ 6 City of Bozeman. (2021). Drought Monitoring Tool. 7 U.S. Geological Survey (USGS). (n.d.). National Climate Change Viewer. https://www.usgs.gov/tools/national-climate- change-viewer-nccv 297 City of Bozeman Water Conservation & Efficiency Plan 12 Demographics The City has been experiencing high growth for the past seven years, at a rate of approximately 4% annually. From 1990 to 2016, the number of single-family homes in Gallatin County grew by 150%, with the majority being in the Bozeman area. Most housing is single family homes (55%), followed by multi-unit (43%), and some mobile homes. Likely reflective of the local university, Montana State University (MSU), the median age in the City is 27.8, and 58.7% of the population has a bachelor’s degree or higher. The median household income is $55,569. However, nearly 18% of the population lives below the poverty line.8 1.2 Project Background For nearly a decade, the City has experienced high growth and anticipates that this growth will continue well into the future. Since the City relies on snowpack and surface water to meet water demands, it faces imminent challenges in addition to the continued population growth, such as being drought prone, increasing climate variability, and issues surrounding the allocation of additional water rights. The City is aware of the importance of developing new water conservation goals and strengthening current ones to create a new water supply in the hopes of addressing these challenges. As such, the City initiated this project with the goal being to develop a Water Conservation & Efficiency Plan over a minimum 10-year planning period. The Plan will guide the City’s water conservation program development to achieve the demand reduction target outlined in the 2013 IWRP and other program objectives. The Plan provides an assessment of existing program measures, identifies cost-effective program measures for future consideration, sets measurable targets for existing and future conservation initiatives, and provides an implementation and monitoring plan to establish and administer cost-effective conservation initiatives to achieve program goals. 1.3 Purpose and Scope of Plan The intention of this Plan is to systematically evaluate and quantify a long-term water conservation strategy for the City’s service area extending through the year 2040. Through the identification and prioritization of conservation measures, the Plan enables the City to project long-range demands, identify attainable conservation goals, develop strategies, and raise awareness. By combining new initiatives with existing program measures, this comprehensive strategy and slate of conservation activities will contribute to a more sustainable management of water supplies for the Bozeman community. This Plan incorporates the Water Conservation Division’s goals and objectives to protect and enhance water resources through conservation to meet the IWRP’s 50-year demand reduction target through: • Establishing and strengthening the community’s water conservation ethic by o Utilizing a variety of methods to raise awareness as to the value of water, ways to conserve, and to encourage participation in initiatives, and o Providing equitable distribution of resources and incentives for all customer classes. • Ensuring adequate water supplies are available to meet current and future demands, in times of drought, for emergency response and long-term drought mitigation by o Implementing data driven decision making, and o Developing and implementing mechanisms to track current demand patterns, forecast future demands, and evaluate and modify program elements as needed. 8 U.S. Census Bureau (2020). American Community Survey 5-year estimates. Retrieved from Census Reporter profile page for Bozeman, MT. http://censusreporter.org/profiles/16000US3008950-bozeman-mt/ 298 City of Bozeman Water Conservation & Efficiency Plan 13 In addition, the Plan is intended to serve as a guide for the City regarding future water use efficiency and conservation investments and activities. It includes a functional implementation plan to establish and administer cost-effective conservation measures. Based on a preliminary analysis of the 25 individual measures, three programs (Programs A, B, and C) were designed by the City. Each of the three programs were evaluated to determine the net effect of running multiple program measures together over the 21-year analysis period (2020–2040). 1.4 Plan Development The Plan development included review of past documentation and data analyses. The City provided the following data as requested by MWM: • Prior year(s) monthly water use data for the different classes of water users • Complete descriptions of past, present, and proposed future conservation programs including historical annual participation rates and costs to the utility • Estimated staff costs for measures and measure budgets • Results of any independent analyses of water savings resulting from prior and current City programs • Historical and projected water system service area population, employment, and growth projections through the year 2040 (or other suitable end year) along with maps of the water system, and study area(s) • Customer characteristics and data needed to characterize water conservation measures such as the number of facilities or businesses of a particular type • Projected baseline water demand without additional water conservation The City worked closely with MWM to compile extensive historical data on the region, utility, conservation measures, production, consumption, weather, and various census data points. Together, these formed the foundation for MWM’s DSS Model, which prepares long-range water demand and conservation water savings projections.9 More detailed information about the DSS Model can be found in the appendices of this Plan, including a description of the assumptions, analysis, and methodology used. Based on the analysis of current water use patterns, and considering characteristics of the service area, a list of more than 140 potential conservation measures was compiled and evaluated. The evaluation included 9 The DSS Model is an “end-use” model that breaks down total water production (water demand in the service area) to specific water end uses, such as plumbing fixtures and appliance uses. It uses a bottom-up approach that allows for multiple criteria to be considered when estimating future demands, such as the effects of natural fixture replacement, plumbing codes, and conservation efforts. It also may use a top-down approach with a utility prepared water demand forecast. 299 City of Bozeman Water Conservation & Efficiency Plan 14 measures directed at existing accounts as well as new development measures to make new residential and business customers more water efficient. During the program measure evaluation process, the City utilized its “Engage Bozeman” framework to solicit input from the public to arrive at a list of 25 program measures to be selected for a detailed economic analysis and incorporation into the Plan. Detailed information about the public engagement process can be found in Appendix H of this Plan. Assumptions and results for each of the 25 individual measures and three programs (Programs A, B, and C) are described in detail in this Plan. 300 City of Bozeman Water Conservation & Efficiency Plan 15 2 ANALYSIS OF WATER DEMAND This section describes the data collection and review process; production and consumption, including weather normalization; and the City’s historical and current conservation programs. 2.1 Information Review and Data Collection Methods A thorough collection and review of information relevant to this effort was conducted by MWM and entered into the City’s Excel-based Data Collection Workbook. To help streamline the process, MWM initially entered data into the workbook from readily available sources prior to sending the file to City staff for updating and review. This included an inventory of data such as historic water use, climate trends, and demographics (Table 2-1). MWM also reviewed demand projection analyses, any available and relevant information from the City’s Geographic Information System (GIS) mapping data queries, and other service area characterization data previously developed for the City. Table 2-1. Data Inventory for City of Bozeman Data Type Data Source(s) Water Purchase and Consumption Data •Data collection workbooks with monthly consumption data •Customer classifications and number of connections •2013 Integrated Water Resources Plan •2017 Water Facility Plan Update •Daily plant production •Monthly metered consumption by customer class Non-Revenue Water •2017 Water Facility Plan Update Historical and Projected Demographics •2020 Community Plan •Recent population and employment projections •Historical population Climate and Weather Data •National Oceanic and Atmospheric Administration data •Bureau of Reclamation Agrimet (Bozeman) data •2019 Climate Vulnerability Assessment & Resiliency Strategy •2020 Climate Plan •2017 Drought Management Plan •History of droughts/wet years/abnormal years Land Use and Irrigation Data •Parcel size •Ground cover type raster Housing and Economic Data •Census 2010 and 2020 •Economy information available from the Montana Department of Labor and Industry, Bureau of Labor Statistics, Census Bureau •Taxable property assessment data Cost Data •Avoided Operations & Maintenance and Capital Costs •Water Loss Control Program Costs Conservation Activity •City of Bozeman conservation records (costs and water saved) Existing Demand Models and Future Projections •Existing strategic and master planning documents •Reports describing current demand projection methodology Integrated Water Resources Plan •2013 Integrated Water Resources Plan 301 City of Bozeman Water Conservation & Efficiency Plan 16 Additionally, using the provided consumption and account values from the City, MWM and City staff confirmed the number and types of customers within the service area. Several follow-up actions of data review were conducted between City staff and MWM to compile all relevant and valuable information and to identify the unique customer categories to be tracked. Data from each customer category was analyzed separately. Monthly production data from 1999–2020 was reviewed. Based on the City’s water billing system, residential water use was broken down into single family, multi-family, and low-income categories. Historical data was segregated into indoor and outdoor water use by customer type using the monthly billing data. Non-residential categories of use were analyzed separately. Average daily water use was expressed on a gallons-per-day-per-account basis. 2.2 Production vs. Consumption MWM analyzed historical consumption versus production data provided by City staff to calculate a non- revenue water (NRW) percentage to use for modeling. The average 2015–2019 data was used to calculate a NRW of 12.6%. Some amount of NRW, specifically the unavoidable annual real losses (UARL), is inherent in any water distribution system. A water distribution system audit and data validation identifies the volume of NRW. The City completed a water distribution system audit, level 1 validation, and real loss component analysis in 2022. This project provides the City with additional, detailed information about NRW real losses and provides a suite of recommendations to reduce real losses. 2.3 Consumption by User Category The City has a variety of customer categories utilized in its billing system. This Plan has organized users into Single Family Residential, Multi-Family, Commercial, Commercial Special, Industrial, Government, Government Special, Montana State University, Low Income and New Single Family Residential. All new single-family accounts grow in the New Single Family Residential customer category, whereas the Single Family Residential assumes no growth. Approximately 40% of total annual water use occurs in single family homes followed in magnitude by multi-family connections (24% total annual use) and commercial connections (21% total annual use). Figure 2-1 illustrates the water usage breakdowns within the City based on water use data provided in the data workbook. An average of years 2012–2017, with the exception of industrial (which used years 2018–2019 due to available data), was used to calculate the average breakdown of customer water use. 302 City of Bozeman Water Conservation & Efficiency Plan 17 Figure 2-1. Consumption by Customer Category in Start Year Weather Normalization There is a strong correlation between outdoor water use and weather patterns. Hot, dry weather generally leads to higher outdoor water use, whereas cool, wet weather leads to lower outdoor water use. As such, it is difficult to accurately compare outdoor water use savings from one year to the next, as well as project future savings, without accounting for annual fluctuations in weather. A weather normalization analysis may be performed to represent annual outdoor water use savings more accurately by effectively removing the year- to-year variability in weather patterns, allowing for an ‘apples to apples’ comparison of outdoor water demands from one year to the next. MWM used information provided in the data collection process to conduct a weather normalization analysis for the City. MWM reviewed local climate data and explored various weather normalization methodologies. The City and MWM decided to use an industry standard approach of 3- 5 years of temperature, precipitation, ET, and water demand data to perform the analysis. This selected approach was a straightforward option that used local climate data to average monthly water use based on customer class over the 5-year period to reduce the impacts of weather for any single year. An Excel-based review of historical dry, wet, and normal years was conducted and confirmed by the City. The following patterns were revealed: •2000–2006: Drought. The Bozeman area experienced moderate to extreme drought during several months between 2000 and 2006. •2018–2019: Cooler and wetter than normal. A review of customer consumption indicated there was a notable decrease in outdoor water use. •2012–2017: Normal weather. This period for weather data is representative of more normal years, which allows for a baseline average gallons per day per account (GPDA). These observations are incorporated into the conservation savings analysis to the extent that years 2017 and 2018 were selected as the basis for the indoor/outdoor water use profile representing both one dry and one wet year. After reviewing historic evapotranspiration rates MWM selected the period from 2012-2017 to be used in the DSS Model to represent ‘weather normal’ data, as these years represented typical weather patterns for Bozeman. Water demand data for each customer class was also selected during this time frame to be used in the weather normalization analysis. An average of monthly account consumption based on 303 City of Bozeman Water Conservation & Efficiency Plan 18 customer class for years 2012–2017 was used to determine the total water use per account per day for each customer class. In this way, the outdoor demand projection with and without conservation savings is weather normalized, as it is based on historical average values that consider year-to-year fluctuations in weather. The goal of this task was to accurately reflect past outdoor water use trends by taking into consideration variations in year-to-year weather in order to track and project future water use trends and savings from outdoor conservation measures. Thus, the percent of water assumed indoors and outdoors for a given account is based on weather normalized inputs. 2.4 Historical and Current Conservation Programs MWM analyzed the water conservation potential for the City’s existing conservation program measures by performing a benefit-cost analysis. This included a thorough evaluation of avoided utility and customer costs, utility and customer benefits, estimated water savings in AFY, demand reduction as GPCD of each measure, and cost savings per unit volume of water. The current conservation program is listed as “Program A” in the DSS Model. Existing conservation efforts at the City, prior to this Plan, included various incentive and education-based program measures, with a primary focus on voluntary water conservation measures specifically. This included rebate incentives for indoor and outdoor water-efficient fixtures, free devices and other incentives, technical assistance, and informational resources. Table 2-2 lists participation levels for the City’s active water conservation programs over the past five fiscal years. Table 2-2. City of Bozeman's Active Water Conservation Measures Program Measure Description Participation Numbers High Efficiency Toilet Rebate The City issues rebates for the installation of high efficiency toilets. Toilets must have the WaterSense® label. Rebate amounts differ for new construction and retrofitting old fixtures. 826 High Efficiency Showerhead Rebate The City issues rebates for the installation of high efficiency showerheads. Showerheads must have the WaterSense® label. Rebate amounts differ for new constructions and retrofitting old fixtures. 82 High Efficiency Clothes Washer Rebate The City issues rebates for the installation of high efficiency clothes washers. Clothes washers must meet CEE Tier specifications. Rebate amounts differ for new construction and replacing old appliances. 765 Showerhead Swap Out The City offers free high efficiency showerheads for customers who trade in their old, less efficient showerheads. 226 Weather Based Irrigation Controller Rebate The City offers rebates for the installation of weather-based irrigation controllers. Controllers must have the WaterSense® label. Rebate amounts differ for new construction and retrofitting old controllers. Weather-based controllers use local weather and landscape conditions to make decisions about irrigation duration and frequency to better match plant water demands. 129 Rain Sensor Rebate The City offers rebates for the installation of rain sensors for irrigation systems. Rain sensors override the irrigation system when a certain amount of rain has fallen. When the sensor dries, the system resumes normal functionality. Rebate amounts differ for new construction and retrofit projects. 78 304 City of Bozeman Water Conservation & Efficiency Plan 19 Program Measure Description Participation Numbers MSMT Sprinkler Nozzle Rebate The City offers rebates for the installation of multi-stream, multi- trajectory (MSMT) nozzles which deliver water more efficiently than standard fixed spray nozzles. The lower precipitation rate of MSMT nozzles is beneficial for the City’s “clayey” soils, and the larger water droplets are less likely to be lost to evaporation and wind drift. Rebate amounts differ for new construction and retrofit projects. 201 Drought Tolerant Plant Rebate The City offers rebates for the installation of drought tolerant perennials and shrubs, which use 75% less water than turfgrass once established. The City publishes a list of over 100 plants that qualify for the rebate program. 104 Drip Irrigation Rebate The City offers rebates for the installation of drip irrigation, which delivers water directly to plants – targeting the roots and minimizing water lost to evaporation and wind drift. 32 Turf Removal Rebate The City began offering rebates for the removal of high water use turfgrass in April 2022. Pre-approval is required, and a minimum of 100 square feet of turfgrass must be removed. 48 Community Events and Presentations The City regularly participates in community outreach events including local farmers markets and presentations at local schools and Montana State University. 8,171 Public Education Workshops The City hosts free water wise landscaping webinars that teach residents how to evaluate and transform landscapes into ‘mini watersheds’ by incorporating water smart vegetation and irrigation techniques. 527 Free Water Saving Kits The City offers water-saving kits to water customers including fix-a- leak, summer savings, brush better, shower better, and sprinkler system assessment kits. 243 Sprinkler System Assessments Trained City staff analyze customer sprinkler systems to help identify opportunities for water efficient upgrades or repairs and provide guidance on proper irrigation schedule run times specific to the site location. 362 Dropcountr Water Use Portal Dropcountr provides a free water use portal for the City’s water customers. The online portal translates water use data from meters into actionable information that can help customers set water use reduction goals and allows customers to receive leak alerts. 2,554 Demonstration Gardens The City has installed water efficient demonstration gardens throughout town to help showcase and educate residents on design and potential water savings. 50,000 visitors per year Commercial Water Use Assessments The City offers free commercial site visits and assessments that can help businesses identify water-saving improvements that are tied directly to dollar savings. 6 Public School Curriculum The City partners with educational groups to help implement the Bozeman Water Conservation and Stormwater Management curriculum throughout elementary schools in the community. 1,501 Drought Rates The City implemented a drought reserve and surcharge rate to provide financial security for the utility when revenues are decreased due to drought-related watering restrictions and to send All water customers 305 City of Bozeman Water Conservation & Efficiency Plan 20 Program Measure Description Participation Numbers a price signal to customers to reduce outdoor water usage during times of shortage. Permanent Outdoor Water Use Restrictions The outdoor watering of lawns with overhead spray irrigation is limited to three days per week and only during the most efficient times of day (not between 10am and 8pm). All water customers 306 City of Bozeman Water Conservation & Efficiency Plan 21 3 CONSERVATION M EASURE EVALUATION This section details the screening process, the analyzed conservation measures, program measure assumptions and inputs used in the DSS Model, the City’s water conservation capital improvement plan (CIP), City operations water use optimization practices, and future water efficient growth policies. 3.1 Screening of Conservation Measures The City’s goal was to develop a Plan that would result in the greatest efficiency of program administration, the lowest cost of implementation, and the greatest water savings. The measures in the Plan would also need to be designed to address water conservation across all relevant customer categories and ensure that the program would be equitable among community members. The screening process undertaken with the City’s staff and public input yielded 25 measures for further evaluation. The experience of many utilities has shown there is a reasonable limit to how many measures can be feasibly implemented at one time. Programs that consist of a large number of measures are historically difficult to implement successfully. Therefore, prioritization of measures is important both as an outcome of this planning effort and as the program is implemented. The approach to program implementation is viewed as a “living” process where opportunities may arise and be adopted as new technologies become available. Program timelines can also be adjusted, with the recognition that doing so may impact the savings objectives. An important step in updating the City’s Water Conservation Program included identification of new measures that may be appropriate and the screening of these measures to a short-list for detailed economic evaluation (benefit-cost analysis). A thorough screening process is necessary to scale a reasonable short-list of measures for evaluation in the DSS Model. This evaluation was specific to factors that were unique to the City’s service area, such as water use characteristics, economies of scale, and demographics. The overall initial list of more than 140 potential water conservation measures was drawn from MWM and City experience and a review of what other water agencies with innovative and effective conservation programs were implementing at the time. During the program measure evaluation process, City staff scored and evaluated each of the 140 measures based on quantifiable water savings, technology availability and market maturity, service area match, customer acceptance, equity, and additional service area benefits. Through this process, the list was reduced to 49 measures. At this point in the process, the City utilized its “Engage Bozeman” framework to solicit input from the public to arrive at a final list of 25 program measures to be selected for a detailed economic analysis and incorporation into the Plan. The City developed customized surveys for five stakeholder groups to capture the voice of specific groups affected by this Plan and inform the City as to which program measures would be of greatest benefit to members of the community. The surveys were available to the public from June 29–July 16, 2021. Table 3-1 shows the number of responses from the targeted groups; Appendix H contains a description of the engagement process as well as full results from the surveys. Table 3-1. Community Stakeholder Surveys and Number of Responses Stakeholder Group Targeted # of Responses Residential 354 Property Management 14 Landscapers 22 Community Developers 47 Businesses 16 307 City of Bozeman Water Conservation & Efficiency Plan 22 In this measure screening update, City staff considered the results of the survey responses outlined in Table 3- 1 when evaluating whether a measure should be included in the DSS Model. More details on the measure screening inputs and results can be found in Appendix E. Figure 3-1. City of Bozeman Measure Screening Criteria 308 City of Bozeman Water Conservation & Efficiency Plan 23 Capital Improvement Plan Development As part of the conservation measure screening task, MWM worked with City staff to develop a CIP by identifying potential projects, upgrades, and equipment that could increase water efficiency. MWM and City staff developed and evaluated a list of projects that could be implemented by the City at a reasonable cost of no more than $50,000 per project. Each project has an estimated water savings (AFY) and demand reduction (GPCD) as well as total project cost. The DSS Model benefit-cost approach was utilized to prioritize project scheduling. Projects that were considered included replacing turf medians with water efficient landscaping, installing weather-based irrigation controllers and efficient irrigation equipment in City-owned facilities, and retrofitting City-owned buildings with water efficient faucets, toilets, and urinals. These were incorporated into the DSS Model analysis as three separate capital projects. The implementation schedule of these capital projects is shown in Table 3-2. Capital projects in Program B are recommended for implementation. The elements and results of the CIP are presented alongside the other measures in the sections that follow. Table 3-2. Capital Projects Implementation Schedule and Water Savings Measure Program(s) Schedule (years) Total Measure Savings (AFY) Total Measure Savings (GPCD) Capital Project – Retrofit City Medians with Drought Tolerant Landscaping and Efficient Irrigation B, C 2027 25.5 0.28 Capital Project – Upgrade City Facility Irrigation Systems A, B, C 2023–2026 25.5 0.29 Capital Project – High Efficiency (HE) Fixture Installation in Government Building C 2025–2034 49.6 0.53 City Operations Water Use Optimization Potential operational improvements that would optimize City water use efficiency for City-owned assets were identified. These improvements are presented in Table 3-3. The water savings in AFY from the DSS Model were used to quantify water savings for individual measures to help determine any necessary GPCD reductions by customer class. The elements and results of the City water use optimization improvements are presented alongside the other measures in the sections that follow. Table 3-3. City Operations Water Use Optimization Measures Implementation Schedule and Water Savings Measure Program(s) Schedule (years) Total Measure Savings (AFY) Total Measure Savings (GPCD) Water Loss A, B, C 2022–2040 2,657.9 28.50 AMI and Customer Water Use Portal A, B, C 2020–2040 984.1 10.99 309 City of Bozeman Water Conservation & Efficiency Plan 24 Future Water Efficient Growth Policies Policies that would reduce the water use associated with new development projects (growth) were identified. These policies are presented in Table 3-4. The water savings in AFY from the DSS Model were used to quantify water savings for individual measures. The elements and results of the City water efficient growth policies are presented alongside the other measures in the sections that follow. Table 3-4. Future Water Efficient Growth Policies Implementation Schedule and Water Savings Measure Program(s) Schedule (years) Total Measure Savings (AFY) Landscape Ordinance – Tier 3 B, C 2024-2040 10600.9 Impact Fee Credit B, C 2025–2033 718.3 Mandatory Water Efficiency Offsets B, C 2033–2040 8061.9 Require HE Toilets, Showerheads, Faucets, Urinals in New Development C 2040-2040 26.85 3.2 Conservation Measures Evaluated Table 3-5 describes the 25 measures selected for analysis in the measure screening. The list includes devices or programs that can be used to achieve water conservation, methods through which the device or program can be implemented, and the distribution method or mechanism that can be used to activate the device or program. Table 3-5. Conservation Measure Descriptions Measure Name Description Tiered Rate Structure for MF Residential Tiered rates for multi-family (MF) residential customers. Existing rates would change to create an incentive to use less water. Modifications could include creating multiple tiers and increasing the rates in the upper tiers to increase the incentive to reduce landscape watering. AMI and Customer Water Use Portal Retrofit water distribution system with Advanced Metering Infrastructure (AMI) meters and associated data collector network capable of providing continuous consumption data to utility offices. Improved identification of customer leaks is a major conservation benefit. Some of the costs of these systems are offset by operational efficiencies and reduced staffing as regular meter reading and time spent opening/closing accounts are accomplished without the need for physical or drive-by meter reading. This also enables enhanced billing options and the ability to monitor unauthorized use (such as use or tampering with closed accounts or irrigation occurring outside of permitted watering windows). Customer service is improved as staff can quickly access continuous usage records to address customer inquiries. Optional feature includes online customer access to their usage, which has been shown to improve accountability and reduce water use. The City is on track to complete AMI retrofits in 2027. A water use portal such as Dropcountr, which shows water use at an hourly timescale for customers with AMI meters and sends leak alerts, allows for customers to set billing 310 City of Bozeman Water Conservation & Efficiency Plan 25 Measure Name Description thresholds and see how water use compares to more efficient neighbors. Customers without AMI capability can also see water use in Dropcountr; however, it will only be displayed on a monthly timescale. These customers will not benefit from leak alerts, nor will they benefit from setting billing thresholds. Consideration should be given to improve communication pathways between AMI meters and data collectors by expanding the system of collectors throughout the City and considering the use of cellular data. If all AMI meters are able to consistently communicate with data collectors, the City would benefit from being able to eliminate the need for drive-by reads thus reducing the costs associated with staff time. Water Budget- Based Billing and Water Budgeting Develop individualized monthly water budgets for all customers. Water budgets are linked to a rate schedule where rates per unit of water increase when customers go above their budgets or decreases if they are below their budgets. Budgets are based on size of the irrigated area and average indoor use estimates. These rates have been shown to be effective in reducing landscape irrigation demand (DeOreo, 2016; Dziegielewski, 2000). This would require a rate study and capable billing software. Residential Efficiency Fixture Incentive Program Utility would provide various rebate incentives for the installation of high efficiency indoor plumbing fixtures. Provide a rebate or voucher for the installation of a high efficiency toilet (HET, toilets flushing 1.28 gpf or less). Rebate amounts would reflect the incremental purchase cost for up to 2 toilets. Provide a rebate for the installation of high efficiency showerheads (2.0 gpm or less). Provide a rebate for efficient clothes washers to single family and multi-family homes. It is assumed that the rebates would remain consistent with relevant local and federal regulations (Department of Energy, Energy Star) and only offer the best available technology. Residential Water Use Surveys Provide free indoor and outdoor water surveys for single family and multi-family residential customers. Target those with high water use and provide a customized report to owner. Includes giveaway of efficient showerheads, aerators and toilet devices. This measure is combined with sprinkler system assessments in which irrigation systems are evaluated for signs of needed repair and opportunities to increase system efficiency, and customized watering schedules are developed. Low Income Direct Installation Rebates and Leak Repair Assistance Provide a direct installation rebate program for toilets, high incentive amount for clothes washers, and leak repair assistance. Customer leaks can go uncorrected at properties where owners are least able to pay repair costs. These programs may require that customer leaks be repaired, but either subsidize part of the repair and/or pay the cost with revolving funds that are paid back through water bills over time. Fixture Retrofit on Resale or Name Change on Water Account Work with the real estate industry to require that a certificate of compliance be submitted to the utility verifying that a plumber has inspected the property and efficient fixtures were either already in place or were installed before close of escrow. Capital Project – HE Fixture Installation in Gov't Bldg. Direct installation of high efficiency (HE) faucets, toilets, urinals, and showerheads in City facilities. 311 City of Bozeman Water Conservation & Efficiency Plan 26 Measure Name Description School Building Retrofit School retrofit program wherein schools receive a grant to replace fixtures and upgrade irrigation systems. CII High Efficiency Washer Rebate Offer rebate for commercial grade clothes washers. Target high-use facilities such as laundromats, hotels, etc. Efficient Fixture Giveaway Provide free 1.15 gallons per minute (gpm) or lower pre-rinse spray valves for commercial kitchen facilities. Provide free HE fixtures, including showerheads, faucets, aerators, pre-rinse spray valves, soil moisture meters, leak repair kits, and hose nozzles to all customer classes. Require HE Toilets, Showerheads, Faucets, Urinals in New Development Require developers to install HE toilets, lavatory faucets, kitchen faucets, and showerheads in all new development projects. IAPMO Green Building Supplemental Code is 1.5 gpm for residential lavatory faucets, 0.5 gpm for non-residential lavatory faucets, 1.8 gpm for kitchen faucets, 2.0 gpm for showerheads, 1.28 gpf for toilets, and 0.125 gpf for urinals. Consideration should be given to state code requirements which may prohibit or limit local municipalities from requiring the installation of plumbing fixtures that exceed efficiency requirements in the state-adopted plumbing code. Mandatory Water Efficiency Offsets This measure is modeled after the Net Blue water offset framework. The intent of this measure is to require developers to offset a portion, or all, of their estimated water demand from new development with efficiency projects. The City has already implemented a program supporting voluntary water offsets for new developments as part of its water adequacy requirements. See Appendix I and J for more information about the Net Blue framework and the City’s current water offset policy. Capital Project – Retrofit City Medians with Drought Tolerant Landscaping and Efficient Irrigation Retrofit turfgrass street medians with drought tolerant landscaping and efficient irrigation to serve as an example of Best Management Practices for the community and to reduce water use. Capital Project – Upgrade City Facility Irrigation Systems Perform irrigation system audits to document existing irrigation system components and retrofit with multi-stream, multi-trajectory (MSMT) nozzles, weather-based irrigation controllers, soil moisture sensors etc. as needed. Include recommended watering schedule to reduce overwatering. Dedicated Irrigation Meters & Irrigation Account Rate Structure Require dedicated irrigation meters be installed for all new commercial and multi- family residential customer classes. An irrigable area threshold would be set indicating when an account would be required to have a separate irrigation meter. Impact Fee Credit The purpose of an impact fee credit is to promote non-turf landscaping in some area of a customer's property (e.g., front yard of residential home) and more water efficient device installation indoors. A credit amount would be established to offset a portion or all of the cost a developer might incur through impact fees from installing the more 312 City of Bozeman Water Conservation & Efficiency Plan 27 Measure Name Description expensive landscaping or fixtures. Any drought tolerant plants would be included in the utility's recommended water smart plant list, or other City-approved plant list. Financial Incentives for Irrigation and Landscape Upgrades This would apply to all SF, MF, CII customers with landscapes and provide rebates for substantive landscape retrofits and the installation of water efficient upgrades. Rebates contribute towards the purchase of selected types of irrigation equipment upgrades (weather-based irrigation controllers, MSMT nozzles, rain sensors, drip irrigation). Landscape plant conversion and turf removal is not part of this measure. Landscape Conversion or Turf Removal Rebate Provide a per-square-foot incentive to remove turf and replace with low-water-use plants or permeable hardscape. Landscape conversion could include conversion of turf to low-water-use turf alternative varieties. Rebate based on dollars per square foot removed and capped at an upper limit for SF, MF, and CII. Landscape and Irrigation Contractor Efficient Outdoor Use Education and Training Programs Utility would offer, organize, and sponsor a series of educational workshops or other means for educating landscapers and contractors in efficient landscaping and irrigation principals. Utilize guest speakers, native demonstration gardens, and incentives (e.g., nursery plant coupons). Classes would include those such as Irrigation Association (IA) classes/certifications, U.S. Environmental Protection Agency (EPA) Qualified Water Efficient Landscaper course, etc. Xeriscape Demonstration Gardens Provide additional demonstration gardens showcasing drought tolerant landscaping and efficient irrigation so the community has local resources available to see these types of products and plants. Require Irrigation Designers/Installers Be Certified Require contractors be trained/certified in order to design and perform work on irrigation systems in the City. Certification might be through the IA or specialized training provided by the utility. Landscape Ordinance – Tier 3 Tier 3 of a prescriptive landscape ordinance measure would: •Restrict turfgrass installation to 35% of total landscaped area – SF •Restrict turfgrass installation to 20% of total landscaped area – MF •Restrict turfgrass installation to 20% of total landscaped area – COM Additionally, for SF, MF, and Commercial (COM) customer classes the following would apply: •Landscape Design Standards o Require adequate topsoil depth and quality o Require adequate mulch depth on bare soil o Require submittal of soil quality lab test documentation o Require drought tolerant vegetation for parkland, right-of-way •Irrigation Design Standards o Detailed irrigation plan required for parkland and plan review projects demonstrating head-to-head coverage, hydrozoning, and low-flow drip for trees/perennials/shrubs o Prohibit overhead spray in areas less than ~8 feet wide o Irrigation operation and maintenance plan (including schedule for establishment and post-establishment) •Irrigation Performance Standards o Adequate operating pressure 313 City of Bozeman Water Conservation & Efficiency Plan 28 Measure Name Description o Weather-based controller o Rain/soil moisture sensor o Nozzle maximum application rate of ~1.25 inches/hour •Large Landscape Requirements o Irrigation submeters required o Flow sensor required o Separate irrigation rate structure for all irrigation submeters Water Loss In conjunction with system accounting (maintaining a thorough annual accounting of water production, sales by customer class and quantity of water produced but not sold), include audits that identify and quantify known legitimate uses of non-revenue water (NRW) within the distribution system to determine remaining NRW losses. Goal would be to lower the Infrastructure Leakage Index (ILI) and NRW every year by a pre- determined amount based on cost-effectiveness. These programs typically pay for themselves based on savings in operational costs; saved rate revenue can be directed toward system repairs/replacement and other costs. Public Education Utilize a range of printed and digital materials to raise awareness of conservation measures available to customers, including incentive programs offered by the utility. This could include newsletters, bill stuffers, water smart indoor and outdoor guides, brochures/rack cards, newspaper ads, signs at retailers, radio ads, boosted social media posts and accompanying imagery. Provide a variety of conservation information on the City’s website and through production of videos. Conduct presentations at various community venues, MSU, local public schools. Have booths at community events such as famers markets, Catapalooza, etc. This measure would also include educational resources that are provided for free at events (shower timers, kids’ activity books and pencils). Contract services to support public educational initiatives, such as working with Green Gardens Group and Montana Outdoor Science School are also included. Also consider a program initiative with focused action like the “Take Control of your Controller” Campaign for a targeted social media-based campaign. Information about the DSS Model analysis approach to measure unit costs, water savings, and market penetrations can be found in Appendix D. Actual measure inputs used in the DSS Model to evaluate the water conservation measures selected by the City can be found in individual measure screenshots in Appendix E. 3.3 Conservation Measures Analysis MWM conducted an economic evaluation of each selected water conservation measure using the DSS Model. Appendix F presents detailed results regarding how much water each measure will save through 2040, how much each measure will cost, and the cost of water saved per unit volume if the measure were to be implemented on a stand-alone basis (i.e., without interaction or overlap from other measures that might address the same end use[s]). Dollar savings from reduced water demand was quantified annually and based on avoided costs provided by the City. While each measure was analyzed independently, it is important to note that few measures operate independently. For example, the AMI and Customer Water Use Portal measure may lead to a Landscape Conversion or Turf Removal Rebate, and Efficiency Fixture Incentive Program measures go hand-in-hand with Residential Water Use Surveys and Public Education. 314 City of Bozeman Water Conservation & Efficiency Plan 29 It should be noted that the water savings from Public Education are not double counted with other conservation measures. As a result, the costs appear significantly higher for Public Education than for other measures due to the minimal water savings estimated for the high staff time investment. However, other measures certainly would be less effective or possibly infeasible without an active public outreach program since customers would be less aware of conservation measures and participation would likely plummet. Figure 3-2 presents a comparison of each measure’s cost of water saved per unit volume. 315 City of Bozeman Water Conservation & Efficiency Plan 30 Figure 3-2. Conservation Program Cost of Savings per Unit Volume Costs are rounded to the nearest $10. 316 City of Bozeman Water Conservation & Efficiency Plan 31 4 C ONSERVATION PROGRAM EVALUATION This section provides a summary of which measures were included in each of the three conservation programs as well as which program the City selected to implement. The three programs were designed to illustrate a range of various program measure combinations and resulting water savings. The following key items were taken into consideration during measure selection for Programs A, B and C: •Existing conservation measures •Capital improvement measures •New and innovative measures •Measure equitability among customer categories •Customer demographics In addition, this section identifies and prioritizes the conservation programs and projects by cost-effectiveness and quantifiable water savings. 4.1 Measure Selection for Conservation Program Alternatives MWM developed an economic analysis to show the true cost of conducting conservation. The City’s existing conservation program was evaluated, then two additional, increasingly aggressive programs were developed for the City to consider. Using the data gathered, MWM created a list of all potential program concepts that were appropriate for the City’s service area. Factors for determining which measures should be in each program included budgeting, feasibility to implement the program, and the time at which each measure would need to be introduced to promote conservation efforts. Programs also needed to address water conservation across all relevant customer categories. These program scenarios were not intended to be rigid but rather to demonstrate the range in savings that could be generated if selected measures were run at the same time. When programs were analyzed, any overlap in water savings (and benefits) from individual measures was considered to provide a total combined water savings (and benefits). Each program is described below: •Program A: Current Measures. Current conservation program with no changes; includes 11 measures. •Program B: Recommended Measures. In addition to existing efforts, includes more customer-centric, extended programs in indoor and outdoor efficiency as well as commercial efficiency, capital improvement, and regulatory measures; includes 18 measures. This is the program that was selected by the City for implementation. •Program C: All Modeled Measures. In addition to all those above, includes expanded indoor residential efficiency requirements, including tiered rate structure for MF customers and water budget-based billing; includes all measures modeled in this effort for a total of 25 measures. Figure 4-1 presents the City’s conservation measure program scenarios, indicating which measures were selected and modeled within each program. Each program builds on the program before it, so the measures included in Program B include all measures listed in Program A and B, and Program C includes all measures listed in Program A, B, and C. 317 City of Bozeman Water Conservation & Efficiency Plan 32 Figure 4-1. Selected Conservation Program Measures 4.2 Conservation Program Analysis Table 4-1 shows the benefit-cost ratios for conservation Programs A, B and C. Each program’s present value of water savings and utility costs as well as cost of water saved can be found in Appendix F. Table 4-1. Conservation Program Benefit-Cost Ratios Conservation Program Water Utility Benefit-Cost Ratio Program A with Plumbing Code 1.84 Program B with Plumbing Code 3.43 Program C with Plumbing Code 3.09 318 City of Bozeman Water Conservation & Efficiency Plan 33 Figure 4-2 shows the per capita water savings for Programs A, B and C. Figure 4-2. Conservation Program Per Capita Water Savings All line types shown in the legend are presented in the graph. However, Program B and Program C demand scenarios are close in value and therefore may be somewhat indistinguishable in the figure. Figure 4-3 shows estimated conservation program utility costs and staffing for Programs A, B, and C. Figure 4-3. Estimated Conservation Program Utility Costs and Staffing 0 5 10 15 20 25 30 35 40 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040GPCD Program A Savings (GPCD)Program B Savings (GPCD)Program C Savings (GPCD) - 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 - 100,000.00 200,000.00 300,000.00 400,000.00 500,000.00 600,000.00 700,000.00 800,000.00 900,000.00 20242025202620272028202920302031203220332034FTE StaffAnnual Utility Program Costs, $/yearProgram A Staff Program B Staff Program C Staff Program A Dept. Utility Costs Program B Dept. Utility Costs Program C Dept. Utility Costs 319 City of Bozeman Water Conservation & Efficiency Plan 34 Staffing levels in Figure 4-3 include existing conservation program staff, however, it is important to note that these numbers have not been weight averaged or stepped based on salary, nor do they represent any additional duties expected of staff. For example, these hours may not accurately reflect the total amount of time dedicated to providing unrelated customer service, employee break periods, processing paperwork or addressing other programmatic or utility needs. Tables 4-2 and 4-3 show the water system demands for the City of Bozeman. Demand is shown in 5-year increments in acre-feet in Table 4-2 and GPCD in Table 4-3. Table 4-2 and Figure 4-4 include demand with and without plumbing code as well as projected demand with plumbing codes and three active conservation program scenarios; Figure 4-4 also includes historical demand. Table 4-2. City of Bozeman Potable Water System Demands for Years 2025–2040 in AFY AFY 2025 2030 2035 2040 Baseline Demands 8,070 9,530 11,240 13,250 Plumbing Code Savings 140 320 510 730 Demands with Plumbing Code Savings 7,930 9,210 10,730 12,520 Conservation Program A Savings 300 470 680 910 Demands with Plumbing Code and Conservation Program A Savings 7,630 8,740 10,050 11,610 Conservation Program B Savings 420 970 2,120 3,700 Demands with Plumbing Code and Conservation Program B Savings 7,510 8,240 8,610 8,820 Conservation Program C Savings 420 980 2,130 3,780 Demands with Plumbing Code and Conservation Program C Savings 7,510 8,230 8,600 8,740 All numbers in the above table are rounded to the nearest 10 AFY. Table 4-3. City of Bozeman Potable Water System Demands for Years 2025–2040 in GPCD GPCD 2025 2030 2035 2040 Baseline Demands 116 117 118 119 Plumbing Code Savings 2 4 5 7 Demands with Plumbing Code Savings 114 113 113 112 Conservation Program A Savings 4 6 7 8 Demands with Plumbing Code and Conservation Program A Savings 109 107 105 104 Conservation Program B Savings 6 12 22 33 Demands with Plumbing Code and Conservation Program B Savings 108 101 90 79 Conservation Program C Savings 6 12 22 34 320 City of Bozeman Water Conservation & Efficiency Plan 35 Demands with Plumbing Code and Conservation Program C Savings 108 101 90 79 Figure 4-4 presents historical and projected water demand in AFY given multiple scenarios. Plumbing code elements include current local and federal plumbing code standards for retrofits of items such as toilets, urinals, showerheads, faucets, and clothes washers. Figure 4-4. City of Bozeman Historical and Projected Demand All line types shown in the legend are presented in the graph. However, Program B and Program C demand scenarios are close in value and therefore may be somewhat indistinguishable in the figure. 321 City of Bozeman Water Conservation & Efficiency Plan 36 4.3 Recommended Program The City has been refining its water use efficiency program measures since 2015. Seeing the need for more up-to-date and expansive measures to meet further water use reductions, the City has elected to implement Program B (Figure 4-5) as the most forward-thinking, comprehensive option, which includes 18 of the measures modeled in this planning effort and represents a thoroughly robust program with the highest benefit-cost ratio. Measures that have been analyzed and included in the Plan are more likely to be implemented as well as deemed eligible for funding and outside partnerships. Program B provides a full range of measures, builds goodwill with partners, and is equitable by providing benefits for all categories of City customers. Figure 4-5. Selected Program Details 322 City of Bozeman Water Conservation & Efficiency Plan 37 5 W ATER CONSERVATION IMPLEMENTATION PLAN AND SCHEDULE This section presents an overview of the conservation planning options for the service area including data monitoring strategies, implementation recommendations, scheduling, and staffing needs. 5.1 Monitoring Progress Each year the progress made toward meeting the Plan’s targeted water savings will be analyzed. It is imperative to track activities and water demand for this analysis. The City tracks rebate and incentive program information in its GIS Rebate Viewer application and Microsoft Excel, which includes but is not limited to capturing the following information: •Customer information such as name, address, account number, water customer class •Rebate product information such as type (including make and model), quantity, unit water savings •Cost information such as rebate amount •Number and type of rebates or other incentives issued (including water savings details for rebates such as efficiency level of clothes washers installed through incentive program) •Number of turf removal rebates including square footage of turf removed. The City also tracks and evaluates estimated water savings achieved through its sprinkler system assessment program and number of people reached through outreach events and presentations. As the City continues to implement new Water Use Efficiency (WUE) program measures, it is recommended to continue utilizing a tracking database (Excel spreadsheet) to understand program effectiveness and support data-driven decision making. For future measures, such as those in Program B, recommendations for tracking and monitoring are as follows: •Prepare an annual performance plan in concert with the budget planning process. •Set up a method to store and manage new measure participation, cost, and compliance, especially for measures that relate to code changes (landscape ordinance) and impact fees (impact fee and mandatory offsets) to gauge successes and identify areas that need improvement. •Review plan goals in the DSS Model annually and update measure participation or other elements that are refined through experience. •Track water use to ensure the plan is on target to meet water use reduction goals. Use input from City staff and the annual work planning process as the forum to amend the plan, budget, staffing, contracting, implementation timing, etc. to stay on schedule. •Work with appropriate City departments to ensure enforcement is occurring with the Landscape Ordinance – Tier 3 measure, Impact Fee Credit measure, Mandatory Water Efficiency Offsets measure, and the Require Irrigation Designers/Installers be Certified measure. •Develop outreach and marketing plans as part of each measure’s implementation plan. Identify measure and general program outreach techniques that engage customers (e.g., use actual customer testimonials in outreach materials and presentations). 5.2 Track and Update for New Codes and Emerging Technologies It can be challenging to track the changes in the consumer marketplace for the vast array of water-using appliances and plumbing fixtures in both the residential and commercial sectors. The following are some options for tracking the latest in national standards and building codes as well as technologies and emerging trends in customer preferences: 323 City of Bozeman Water Conservation & Efficiency Plan 38 •Have staff member(s) voluntarily participate on the AWWA Water Conservation Division’s committees with attendance at the Annual Conference Committee meetings and conference calls, in particular the Water Efficiency Programs and Technology Committee. •Monitor the Alliance for Water Efficiency (AWE) for updates or changes to National Standards and Codes as well as opportunities to comment on future national changes to codes and regulations. Frequently, AWE has performance testing results posted on its websites that provide particularly useful information to consumers. •Continue being a WaterSense® Partner. Track the U.S. Environmental Protection Agency (EPA) WaterSense® posts on new technologies and updated equipment lists. •Monitor performance information that may also be available through Consumer Reports or Consortium for Energy Efficiency (http://www.cee1.org). •Attend the WaterSmart Innovations Conference (https://www.watersmartinnovations.com/) and other water efficiency-related conferences for exposure to the vendors participating in the exhibition and to gather information on emerging trends in water conservation programs. •Leverage the City process for adopting new building codes and regulations - especially building codes, to help implement proactive changes in future development in the City’s service area. •Maintain and use a network of 10-20 key contacts at progressive utilities to inquire about new technologies (e.g., through known contacts or new contacts made at conferences). •Host events with other partner utilities and applicable stakeholders on related water loss control programs or conservation measures. •Conduct surveys every three years with other water utilities to gain insight on programs and product testing. Emerging products may be worthy of pilot programs and could be attractive for grant funding projects through agencies like the U.S. EPA or U.S. Bureau of Reclamation. However, use caution when adopting new technologies that have yet to be adequately researched or evaluated. 5.3 Proposed Implementation Schedule Figure 5-1 presents an implementation schedule for Program B measures through 2040. A detailed description of each of these 18 measures can be found in Table 3-4. 324 City of Bozeman Water Conservation & Efficiency Plan 39 Figure 5-1. Conservation Measures Implementation Schedule (2020–2040) 325 City of Bozeman Water Conservation & Efficiency Plan 40 5.4 Five-Year Implementation Recommendations Recommendations to assist with implementation over the next five years: •Track any upcoming state or federal regulations regarding residential, CII, landscape, and water loss management. •Consider launching pilot studies for new measures. •Consider soliciting and tracking community input and feedback via an online or phone survey or at outreach and education events. •Consider pursuing a statistically valid water conservation awareness study. The last study was completed in 2014 at the inception of the Water Conservation Program. It would benefit the City to reassess the community’s awareness in order to inform program development and ensure the implementation schedule included in the Plan aligns with customer understanding and awareness of local water conservation efforts. •Prioritize measures that contribute the most to meeting the per capita water use targets and are relatively easy to operate with limited staff. •Consider pursuing a detailed analysis of mandatory water use efficiency offsets (scheduled for implementation in 2033), which yields the greatest water savings of all measures evaluated, to better understand the wide array of program measure costs, determine a reasonable lifetime for the measure (saturation), and ensure a smooth program implementation. •Consider working with the largest 100 water using customers to reduce water use. •Develop an annual work plan for each plan year as soon as the budget is adopted (or in concert with the budget planning process). •Form partnerships and apply for grants where appropriate. •Outsource to gain enough staff support to administer the expanded programs (as needed). •Develop analytical tools to track water use by customer class and overall per capita water use, adjusted for the weather and external factors as discussed in section 2.3.1. •Consider using AMI consumption data to monitor water usage and identify instances of non- compliance with regulatory measures. •Use the analytical tools annually to help decide on priorities for the following plan year. •Set up a database to store and manage measure participation, cost, and other data to gauge successes and areas that need improvement/added attention. •Annually update the plan to ensure the City is on track to meet conservation goals. This includes updating actual measure participation, projected water savings, and expected per capita water use reductions. 5.5 Staffing Needs As part of the analysis, staffing needs for each of the conservation programs was considered. For the recommended program to be implemented, the City of Bozeman will need to increase their full-time equivalent (FTE) staff from 3 to 5 in 2024, and gradually increase to 5.28 FTEs by 2025, and 5.8 FTEs by 2033. It is important to note that these numbers have not been weight averaged or stepped based on salary, nor do they represent any additional duties expected of staff. For example, these hours may not accurately reflect the total amount of time dedicated to providing unrelated customer service. 326 City of Bozeman Water Conservation & Efficiency Plan 41 Figure 5-2. Estimated Conservation Program Utility Costs and Staffing for the Recommend Program Funding Opportunities, Partnerships, and Stakeholder Group Participation The City has strong partnerships with other regional public agencies, neighboring utilities, and regional stakeholder groups that provide program support, such as support for outreach, building customer awareness, and maximizing participation. The City will continue to pursue future state and federal grants as appropriate, as well as maintain these existing partnerships. Each measure in the recommended water use efficiency program has both common and unique funding sources and partnership opportunities, as well as potential implementation obstacles including legal barriers. In some cases, these matters can be identified in advance, but some cannot. Partnership opportunities and funding sources may include the following: •City water use efficiency and public outreach budgets •Existing and new regional, county, and statewide partnerships such as waste management authorities and Green Business Certification organizations •State and federal grants •Local schools/university students or student organizations •Local community organizations with an interest in water efficiency such as resource conscious gardening groups/advocates and green jobs advocates •Partnerships with energy and sewer utilities - 1.0 2.0 3.0 4.0 5.0 6.0 7.0 - 100,000.00 200,000.00 300,000.00 400,000.00 500,000.00 600,000.00 700,000.00 800,000.00 20232024202520262027202820292030203120322033FTE StaffDept. Utility CostsProgram B Staff Program B Dept. Utility Costs 327 City of Bozeman Water Conservation & Efficiency Plan 42 6 NEXT STEPS AND CONCLUSIONS Current conditions have encouraged the City to choose Program B for implementation. However, water use is very dynamic and responds to changes in population, economy, weather, climate, efficiency of devices, and types of industry. As the City’s community evolves, water use and weather pattern changes may necessitate adjustments to measure implementation targets and schedules. This may include, expanding upon or scaling back various program components and measures to increase efficiency, improve benefit-cost ratios, adopt better technology or methods, or meet budget and staffing restrictions. Whether additional measures become necessary would be dependent on several factors including potential future drought conditions, compliance with the annual aggregate water use objectives as provided by the City, the City’s ability to support new and more innovative programs, community growth, and the City’s ability to develop additional water supplies. With individual measures clearly defined and water saving objectives and customer target goals measurable, the City has quantifiable performance goals to track on both an individual measure and overall program level. 6.1 Next Steps Next steps in Plan implementation include the following: •Engage in the processes to update the Montana Drought Response Plan and any other water efficiency or water loss legislation. The City should consider reviewing state documents, submit written comments as needed, and participate in public workshops and stakeholder groups. •Evaluate the effectiveness of the permanent outdoor water use restrictions, which became effective on June 16, 2022, and consider making adjustments as needed. •Continue to monitor local water supplies and engage in drought monitoring, including updating the 2022 Drought Management Plan as needed. •Review program staff needs and hire accordingly to adequately support program needs. Suggestions for Future DSS Model Updates With the level of investment in both capital projects that may be deferred due to this program and investments in the program itself, City staff should be ready with an answer to the question: “How much water has been saved and at what cost?” In addition, due to the need for ongoing water conservation efforts to maintain and attain more water savings, the City will need to track program water savings, costs, and benefits (i.e., cost savings). The following two types of updates are envisioned for the DSS Model: •Annual or more frequent model updates for monitoring costs and water savings – The conservation measure worksheets can be used to track actual activities and compare them to the planned activities defined as part of the model development for this program. It is recommended that this update be done in conjunction with the development of an annual work plan and budget. At minimum, it should happen every 3-5 years, but more frequent updates are recommended as the City expands and improves upon its data. •Recalibration of the model – The DSS Model has a base “year” of 2020. Depending on water demand and account growth rates, it is advisable to update the base year as soon as a complete year of comprehensive data is available, and on a 5-year basis thereafter. This update requires reviewing historical demand trends, future population and demand forecasts, fixture models calibration, new or updated conservation measures, and cost and water savings assumptions. Specific triggers for updates may include: •Significant changes to cost associated with water production (more than 10-20% energy or chemical cost increase or decrease would modify the “savings worksheet” and change the benefit-cost ratios). 328 City of Bozeman Water Conservation & Efficiency Plan 43 •Significant change in population or number of accounts for one of the customer categories (more than a 5% shift). •Significant changes to water system balance (e.g., more than 10% change in water losses or other parameter in the Demands Section of the DSS Model). •An updated valuation of the cost for developing additional water supplies, including infrastructure costs and the costs for purchasing additional water rights. •New codes or regulations that affect natural replacement rates of fixtures. •Alternatives for staffing versus outsource contracting or other changes to the cost of implementation of a conservation measure (change to conservation measure worksheet only). •New technologies for conservation measures being considered (change or addition of new conservation measure worksheet). •Any other change in conservation measures (i.e., updates to the measure worksheets can be changed or modified at any time without altering the water system balance worksheets or affecting fixture model calibration). 6.2 Conclusions Following is a summary of the water conservation analysis findings: •More than 65% of the City’s service area water use is associated with residential water use. Consequently, residential conservation programs will produce the most savings. The remaining 35% of the City’s service area water use is associated with commercial, industrial, government, Montana State University water use. In conjunction with plumbing codes, Program B (the Recommended Program) saves 33% of projected demand in 2040 when compared to demands in 2040 without plumbing codes or active conservation. From the utility standpoint, the average cost of water saved for Program B is $379/ AF, which is less than the avoided cost of water at $1,645/AF. Therefore, this program has the potential to reduce per capita water use in a cost-effective manner based on the implementation level of the plan. •Conservation is the least expensive means of meeting future water supply needs for the area. The implementation of these conservation measures should reduce per capita water use and has the potential to defer the need for further infrastructure expansion. Water savings in the year 2040 are an estimated 4,435 AF/yr. While the conservation actions identified can have a significant cost, the costs are even higher to not participate in conservation and instead rely on engineering solutions to address increased demand. Furthermore, with climate change, long-term drought, and challenges associated with the delivery of imported water, without conservation, additional water supplies may not be available to meet future increases in demands. •Through the DSS Model analysis, the City identified fixture costs, applicable customer classes, time period of implementation, measure lifespan, administrative costs, end uses, end-use savings per replacement, and a target number or percentage of accounts per program year. •Creating expanded water conservation efforts appears to be a feasible and cost-effective means of: o Meeting City conservation/water use reduction targets o Managing existing water supplies in a more sustainable manner o Planning for sustainable future growth incorporating water efficiency •Based on the analysis, the City has selected to implement Program B, with 18 measures, a utility benefit-cost ratio of 3.43 and a cost of water saved of $379/AF versus the estimated avoided cost of water of $1,645/AF. 329 City of Bozeman Water Conservation & Efficiency Plan 44 7 REFERENCES All links below were accessed in July 2022 unless otherwise indicated. Alliance for Water Efficiency. (2016). The Status of Legislation, Regulation, Codes & Standards on Indoor Plumbing Water Efficiency. http://www.allianceforwaterefficiency.org/Codes-Standards-White-Paper.aspx American Water Works Association (AWWA). (2017). M52 Water Conservation Programs – A Planning Manual, 2nd Edition. https://www.awwa.org/Store/Product-Details/productId/61841578 City of Bozeman Engage Bozeman Plan. (2021). https://www.bozeman.net/home/showpublisheddocument/11461/637622797246270000 Consortium for Efficient Energy website. www.cee1.org DeOreo, W.B. (2016). Residential End Uses of Water, Version 2 - 4309. Denver, Colorado: AWWA Research Foundation. https://www.waterrf.org/research/projects/residential-end-uses-water-version-2 Dziegielewski, B. (2009). Residential Water Use in Northeastern Illinois Estimating Water-use Effects of In-fill Growth versus Exurban Expansion. Prepared for the Chicago Metropolitan Agency for Planning. https://www.cmap.illinois.gov/documents/10180/14452/NE+IL+Residential+Water+Use.pdf/9a07c0d8-3733- 48c3-94f6-abaa5bad1477 Dziegielewski, B., J. C. Kiefer, W. DeOreo, P. Mayer, E. M. Opitz, G. A. Porter, G. L. Lantz, and J. O. Nelson. (2000). Commercial and Institutional End Uses of Water. Denver, Colorado: AWWA, Research Foundation and American Water Works Association with Cooperation of the U.S. Bureau of Reclamation. Catalog No.90806. 264 pp. ISBN 1-58321-035-0. http://ufdc.ufl.edu/WC13511002/00001 GMP Research, Inc. (2019). 2019 U.S. WaterSense Market Penetration Industry Report, commissioned by Plumbing Manufacturers International. https://www.safeplumbing.org/files/safeplumbing.org/documents/misc/7-1-19-WaterSense-2019-Report.pdf National Oceanic and Atmospheric Administration (NOAA) National Centers for Environmental Information (NCEI). (2022). U.S. Billion-Dollar Weather and Climate Disasters, DOI: 10.25921/stkw-7w73. https://www.ncdc.noaa.gov/billions/ Oak Ridge National Laboratory, Energy Division. (1998). “Bern Clothes Washer Study, Final Report,” prepared for U.S. Department of Energy. https://digital.library.unt.edu/ark:/67531/metadc691712/ Plumbing Efficiency Research Coalition. (2012). The Drainline Transport of Solid Waste in Buildings, PERC Phase 1 Report, Table 2-A: Water Consumption by Water-Using Plumbing Products and Appliances – 1980–2012. http://www.map-testing.com/assets/files/PERC%20Report_Final_Phase%20One_Nov%202011_v1.1.pdf U.S. Census Bureau. 2010 Census Data web page. https://www.census.gov/programs-surveys/decennial- census/data/datasets.2010.html Ibid. (2020). American Community Survey 5-year estimates. Retrieved from Census Reporter Profile page for Bozeman, MT. http://censusreporter.org/profiles/16000US3008950-bozeman-mt/ U.S. Congress. Energy Policy Act of 1992; amended in 2005. https://www.congress.gov/bill/102nd- congress/house-bill/776/text/enr; https://www.epa.gov/laws-regulations/summary-energy-policy-act; https://www.gpo.gov/fdsys/pkg/BILLS-109hr6enr/pdf/BILLS-109hr6enr.pdf U.S. Geological Survey (USGS). (n.d.). National Climate Change Viewer. https://www.usgs.gov/tools/national- climate-change-viewer-nccv 330 City of Bozeman Water Conservation & Efficiency Plan 45 APPENDIX A – HISTORICAL MONTHLY WATER USE PER ACCOUNT TYPE 331 City of Bozeman Water Conservation & Efficiency Plan 46 332 City of Bozeman Water Conservation & Efficiency Plan 47 Zero values in the above graph are due to billing issues. Negative values in the above graph are due to billing corrections. 333 City of Bozeman Water Conservation & Efficiency Plan 48 Zero values on the above graph are due to billing issues. 334 City of Bozeman Water Conservation & Efficiency Plan 49 APPENDIX B – DSS MODEL OVERVIEW DSS Model Overview: The Least Cost Planning Decision Support System Model (DSS Model) is used to prepare long-range, detailed demand projections. The purpose of the extra detail is to enable a more accurate assessment of the impact of water efficiency programs on demand and to provide a rigorous and defensible modeling approach necessary for projects subject to regulatory or environmental review. Originally developed in 1999 and continuously updated, the DSS Model is an “end-use” model that breaks down total water production (water demand in the service area) to specific water end uses, such as plumbing fixtures and appliances. The model uses a bottom-up approach that allows for multiple criteria to be considered when estimating future demands, such as the effects of natural fixture replacement, plumbing codes, and conservation efforts. The DSS Model may also use a top-down approach with a utility-prepared water demand forecast. Demand Forecast Development and Model Calibration: To forecast urban water demands using the DSS Model, customer demand data is obtained from the water agency being modeled. Demand data is reconciled with available demographic data to characterize water usage for each customer category in terms of number of users per account and per capita water use. Data is further analyzed to approximate the split of indoor and outdoor water usage in each customer category. The indoor/outdoor water usage is further divided into typical end uses for each customer category. Published data on average per capita indoor water use and average per capita end use is combined with the number of water users to calibrate the volume of water allocated to specific end uses in each customer category. In other words, the DSS Model checks those social norms from end studies on water use behavior (e.g., flushes per person per day) are not exceeded or drop below reasonable use limits. Passive Water Savings Calculations: The DSS Model is used to forecast service area water fixture use. Specific end-use type, average water use, and lifetime are compiled for each fixture. Additionally, state, and national plumbing codes and appliance standards are modeled by customer category. These fixtures and plumbing codes can be added to, edited, or deleted by the user. This process yields two demand forecasts, one with plumbing codes and one without plumbing codes. Active Conservation Measure Analysis Using Benefit-Cost Analysis: The DSS Model evaluates active conservation measures using benefit-cost analysis with the present value of the cost of water saved ($/Million Gallons or $/Acre-Feet). Benefits are based on savings in water and wastewater facility operations and Water Demand Projection Development Water Demand Breakdown by End Use Impact of Water Efficiency Measures on Each End Use Benefit-Cost Analysis and Conservation Program Selection Total Demand Reductions from Conservation Agency Info Edit Model Setup Edit Production Edit Consumption Data Edit Historical Demographics Edit Growth Projections Edit Data Collection Hide Base Year Profile Edit NRW Edit Regression Data Edit End Uses Edit Codes and Standards Edit Water Demand Scenario Edit Service Area Calibration Edit Demand Projections Edit Demand Analysis Hide Settings and Targets Edit Avoided Costs Edit Conservation Measures Edit Program Scenarios Edit Final Check Edit Conservation Analysis Hide Tables and Figures Edit Results Hide Figure B-1. DSS Model Main Page 335 City of Bozeman Water Conservation & Efficiency Plan 50 maintenance and any deferred capital expenditures. The figures on the previous page illustrate the processes for forecasting conservation water savings, including the impacts of fixture replacement due to existing plumbing codes and standards. Figure B-2. Sample Benefit-Cost Analysis Summary Model Use and Validation: The DSS Model has been used for over 20 years for practical applications of conservation planning in over 300 service areas representing 60 million people, including extensive efforts nationally and internationally in Australia, New Zealand, and Canada. Figure B-3. DSS Model Analysis Locations in the U.S. The DSS Model can use one of the following: 1) a statistical approach to forecast demands (e.g., an econometric model); 2) a forecasted increase in population and employment; 3) predicted future demands; or Measure Present Value of Water Utility Benefits Present Value of Community Benefits Present Value of Water Utility Costs Present Value of Community Costs Water Utility Benefit to Cost Ratio Community Benefit to Cost Ratio Five Years of Water Utility Costs 2020- 2025 Water Savings in 2030 (afy) Cost of Savings per Unit Volume ($/af) AMI Full AMI Implementation $3,976,434 $16,635,194 $1,566,069 $5,893,340 2.54 2.82 $320,000 133.764878 $324 RESHECWResidential Rebates for HECW $139,312 $365,447 $95,879 $200,665 1.45 1.82 $50,325 5.124572 $824 WC Water Checkup $7,648,165 $30,288,419 $6,005,949 $7,665,564 1.27 3.95 $1,382,995 239.652915 $877 IRREVALIrrigation Evaluations $1,589,488 $1,589,488 $1,918,184 $4,332,779 0.83 0.37 $443,824 98.051821 $646 CIIRebCII Water Survey Level 2 and Customized Rebate $910,720 $3,313,109 $915,904 $2,581,185 0.99 1.28 $193,725 18.753753 $1,055 NOZZLFree Sprinkler Nozzle Program $277,886 $277,886 $329,386 $455,933 0.84 0.61 $103,145 23.005687 $680 MULCHMulch Program $80,739 $80,739 $287,676 $287,676 0.28 0.28 $66,932 4.554625 $2,000 LDS Water Conserving Landscape and Irrigation Codes $1,055,819 $1,055,819 $350,316 $7,979,608 3.01 0.13 $78,568 46.098525 $161 PRV Pressure Reduction Valve Rebate $102,170 $193,972 $49,161 $132,223 2.08 1.47 $37,818 8.503521 $425 LEAK Leak Detection Device Rebate $174,130 $847,416 $306,843 $1,288,743 0.57 0.66 $80,053 6.065394 $1,895 UHET Ultra-High Efficiency Toilet Rebate $538,624 $538,624 $405,529 $761,556 1.33 0.71 $362,736 16.287780 $921 Conservation Measures Benefit Cost Analysis Benefit Cost Analysis Next B/CDIPGENSCHLanSPRRAIRAIHOTOIUHEUHELEAPRVLDSMUNOCIIRIRRWCRESAMIConserPrevio Review Data Util Cost Five Year Start Year Water Savings Year Units Benefit Cost Analysis 336 City of Bozeman Water Conservation & Efficiency Plan 51 4)a demand projection entered into the model from an outside source. For the City, baseline demand was developed based on an increase in residential population. The following figure presents the flow of information in the DSS Model Analysis. Figure B-4. DSS Model Analysis Flow 337 City of Bozeman Water Conservation & Efficiency Plan 52 APPENDIX C – PROJECTED WATER DEMANDS W ITH AND W ITHOUT PLUMBING CODE SAVINGS This section presents baseline water demands with and without the plumbing code; details regarding the national and state plumbing codes; and key inputs and assumptions used in the DSS Model, which is used to prepare long-range, detailed demand projections. This rigorous modeling approach is especially important if the project will be subject to regulatory or environmental review. C.1 Projected Baseline Demand The assumptions having the most dramatic effect on future demands are: 1) the natural replacement rate of fixtures; 2) how residential or commercial future use is projected; and 3) the percent of estimated real water losses. As described in the previous section, baseline customer category water use was determined using 2017–2017 historical monthly water use, with the exception of industrial water use using 2018–2019 monthly water use due to data. C.2 Estimated Plumbing Code Savings The DSS Model forecasts service area water fixture use. In the codes and standards part of the DSS Model, specific fixture end-use type (point of use fixture or appliance), average water use, and lifetime are compiled. Additionally, state and national plumbing codes and appliance standards for toilets, urinals, showers, and clothes washers are modeled by customer category. This approach yields two distinct demand forecasts related to plumbing code savings: 1) with plumbing codes and 2) without plumbing codes. Plumbing code measures are independent of any conservation program and are based on customers following applicable local, state, and federal laws, building codes, and ordinances. Plumbing code-related water savings are considered “passive” and reliable long-term savings and can be depended upon over time to help reduce overall system water demand. In contrast, water savings are considered “active” if a specific action unrelated to the implementation of codes and standards is taken by the utility to accomplish conservation measure savings (e.g., offering turf replacement rebates). The DSS Model incorporates the following items as a “code,” meaning that the savings are assumed to occur and therefore are “passive” savings: •The Federal Energy Policy Act of 1992 (amended in 2005) •2021 Uniform Plumbing Code (UPC) (IAPMO) The following figure conceptually describes how plumbing codes using “fixture models” are incorporated into the flow of information in the DSS Model.10 The demand projections, including plumbing code savings, further assumes no active involvement by the water utility, and that the costs of purchasing and installing replacement equipment (and new equipment in new construction) are borne solely by the customers, occurring at no direct utility expense. The inverse of the fixture life is the natural replacement rate expressed as a percent (i.e., 10 years is a rate of 10% per year). 10 Fixture models are used in the DSS Model to track individual plumbing devices and their water savings as they change and become more efficient over time. 338 City of Bozeman Water Conservation & Efficiency Plan 53 Figure C-1. DSS Model Overview Used to Make Potable Water Demand Projections The DSS Model makes water demand projections using a multi-level process. Tables C-1 and C-2 show the water system demands for the City in acre-feet in 5-year increments over the 21- year modeling period (2020–2040). Figure C-2 illustrates demands in graphical format. Both the table and the figure include historical (baseline) demand as well as demand with and without plumbing code. Table C-1. City of Bozeman Potable Water System Demands for Years 2025–2040 in AFY AFY 2025 2030 2035 2040 Baseline Demands 8,070 9,530 11,240 13,250 Plumbing Code Savings 140 320 510 730 Demands with Plumbing Code Savings 7,930 9,210 10,730 12,520 All numbers in the above table are rounded to the nearest 10 AFY. 339 City of Bozeman Water Conservation & Efficiency Plan 54 Table C-2. City of Bozeman Potable Water System Demands for Years 2025–2040 in GPCD GPCD 2025 2030 2035 2040 Baseline Demands 116 117 118 119 Plumbing Code Savings 2 4 5 7 Demands with Plumbing Code Savings 114 113 113 112 Figure C-2. City of Bozeman Potable Water System Demands C.3 National Plumbing Code The Federal Energy Policy Act of 1992, as amended in 2005, mandates that only fixtures meeting the following standards can be installed in new buildings: •Toilet – 1.6 gal/flush maximum •Urinals – 1.0 gal/flush maximum •Showerhead – 2.5 gal/min at 80 pounds per square inch (psi) •Residential faucets – 2.2 gal/min at 60 psi •Public restroom faucets – 0.5 gal/min at 60 psi •Dishwashing pre-rinse spray valves – 1.6 gal/min at 60 psi Replacement of fixtures in existing buildings is also governed by the Federal Energy Policy Act, which mandates that only devices with the specified level of efficiency (as shown above) can be sold as of 2006. The net result of the plumbing code is that new buildings will have more efficient fixtures and old inefficient fixtures will slowly be replaced with new, more efficient models. The national plumbing code is an important piece of 340 City of Bozeman Water Conservation & Efficiency Plan 55 legislation and must be carefully taken into consideration when analyzing the overall water efficiency of a service area. In addition to the plumbing code, the U.S. Department of Energy regulates appliances, such as residential clothes washers, further reducing indoor water demands. Regulations to make these appliances more energy efficient have driven manufactures to dramatically reduce the amount of water these machines use. Generally, front-loading washing machines use 30-50% less water than conventional models (which are still available). In this analysis, the DSS Model forecasts a gradual transition to high efficiency clothes washers (using 12 gallons or less) so that by the year 2025 that will be the only type of machine available for purchase. In addition to the industry becoming more efficient, rebate programs for washers have been successful in encouraging customers to buy more water efficient models. Given that machines last about 10 years, eventually all machines on the market will be the more water efficient models. Energy Star clothes washers have a water factor of 6.0 or less – the equivalent of using 3.1 cubic feet (or 23.2 gallons) of water per load. The maximum water factor for residential clothes washers under current federal standards is 6.5. The water factor equals the number of gallons used per cycle per cubic foot of capacity. Prior to the year 2000, the water factor for a typical new residential clothes washer was around 12. In March 2015, the federal standard reduced the maximum water factor for top- and front- loading machines to 8.4 and 4.7, respectively. In 2018, the maximum water factor for top-loading machines was further reduced to 6.5. For commercial washers, the maximum water factors were reduced in 2010 to 8.5 and 5.5 for top- and front-loading machines, respectively. Beginning in 2015, the maximum water factor for Energy Star certified washers was 3.7 for front-loading and 4.3 for top-loading machines. In 2011, the U.S. Environmental Protection Agency estimated that Energy Star washers comprised more that 60% of the residential market and 30% of the commercial market (Energy Star, 2011). A new Energy Star compliant washer uses about two-thirds less water per cycle than washers manufactured in the 1990s. C.4 Key Baseline Potable Demand Inputs, Passive Savings Assumptions, and Resources The following table presents the key assumptions and references that are used in the DSS Model in determining projected demands with plumbing code savings. 341 City of Bozeman Water Conservation & Efficiency Plan 56 Table C-3. List of Key Assumptions Parameter Model Input Value, Assumptions, and Key References Model Start Year for Analysis 2020 Water Demand Factor Year (Base Year) Customer Category Breakdown: 2012–2017, except 2018–2019 for industrial. Indoor Basis: 2017–2018, 2018–2019 for industrial. Population Projection Source Based on average compound annual population growth rate (CAGR) from 2000–2020 of 3.16% Starting with 2020 actual census population Employment Projection Source May 2019 Bozeman Area Labor Report Avoided Cost of Water $1,645/AF (based on future avoided capital expansions) Parameter Potable Water System Base Year Water Use Profile Customer Categories Start Year Accounts Total Water Use Distribution Demand Factors (gpd/acct) Indoor Use % 2020 Residential Indoor Water Use (GPCD) Single Family Residential 9,960 40% 214 49% 42 Multi-Family 2,503 24% 520 77% 42 Commercial 1,066 21% 1,061 71% N/A Commercial Special 113 2.2% 1,037 33% N/A Industrial 1 1.1% 57,135 71% N/A Government 48 1.5% 1,709 29% N/A Government Special 9 0.3% 1,756 41% N/A Montana State University 19 9% 23,983 59% N/A Low Income 155 0.4% 145 54% N/A New Single Family Residential 1 0% 292 33% N/A Total/Avg 13,875 100% N/A 74% N/A 342 City of Bozeman Water Conservation & Efficiency Plan 57 Table C-4. Key Assumptions Resources Parameter Resource Residential End Uses Key Reference: AWWA Research Foundation (AWWARF) Report “Residential End Uses of Water, Version 2 - 4309” (DeOreo, 2016). Table 2-A. Water Consumption by Water-Using Plumbing Products and Appliances -1980–2012. PERC Phase 1 Report. Plumbing Efficiency Research Coalition. 2013. http://www.map-testing.com/content/info/menu/perc.html Model Input Values are found in the “End Uses” section of the DSS Model on the “Breakdown” worksheet. Non-Residential End Uses, percent Key Reference: AWWARF Report "Commercial and Institutional End Uses of Water” (Dziegielewski, 2000 – Appendix D: Details of Commercial and Industrial Assumptions, by End Use). Model Input Values are found in the “End Uses” section of the DSS Model on the “Breakdown” worksheet. Efficiency Residential Fixture Current Installation Rates U.S. Census, Housing age by type of dwelling plus natural replacement plus rebate program (if any). Key Reference: GMP Research, Inc. (2019). 2019 U.S. WaterSense Market Penetration Industry Report. Key Reference: Consortium for Efficient Energy (www.cee1.org). Model Input Values are found in the “Codes and Standards” green section of the DSS Model by customer category fixtures. Water Savings for Fixtures, gal/capita/day Key Reference: AWWARF Report “Residential End Uses of Water, Version 2 - 4309” (DeOreo, 2016). The City supplied data on costs and savings; professional judgment was made where no published data was available. Key Reference: California Energy Commission, Staff Analysis of Toilets, Urinals and Faucets, Report # CEC-400-2014-007-SD, 2014. Model Input Values are found in the “Codes and Standards” green section on the “Fixtures” worksheet of the DSS Model. Non-Residential Fixture Efficiency Current Installation Rates Key Reference: 2010 U.S. Census, Housing age by type of dwelling plus natural replacement plus rebate program (if any). Assume commercial establishments built at same rate as housing, plus natural replacement. California Energy Commission, Staff Analysis of Toilets, Urinals and Faucets, Report # CEC-400-2014-007-SD, 2014. Model Input Values are found in the “Codes and Standards” green section of the DSS Model by customer category fixtures. Residential Frequency of Use Data, Toilets, Showers, Faucets, Washers, Uses/user/day Key Reference: AWWARF Report “Residential End Uses of Water, Version 2 - 4309” (DeOreo, 2016). Summary values can be found in the full report: http://www.waterrf.org/Pages/Projects.aspx?PID=4309 Key Reference: California Energy Commission, Staff Analysis of Toilets, Urinals and Faucets, Report # CEC-400-2014-007-SD, 2014. Key Reference: Alliance for Water Efficiency, The Status of Legislation, Regulation, Codes & Standards on Indoor Plumbing Water Efficiency, January 2016. Model Input Values are found in the “Codes and Standards” green section on the “Fixtures” worksheet of the DSS Model and confirmed in each “Service Area Calibration End Use” worksheet by customer category. 343 City of Bozeman Water Conservation & Efficiency Plan 58 Parameter Resource Non-Residential Frequency of Use Data, Toilets, Urinals, and Faucets, Uses/user/day Key References: Estimated based on AWWARF Report "Commercial and Institutional End Uses of Water” (Dziegielewski, 2000 – Appendix D: Details of Commercial and Industrial Assumptions, by End Use). Key Reference: California Energy Commission, Staff Analysis of Toilets, Urinals and Faucets, Report # CEC-400-2014-007-SD, 2014. Fixture uses over a 5-day work week are prorated to 7 days. Non-residential 0.5gpm faucet standards per Table 2-A. Water Consumption by Water-Using Plumbing Products and Appliances - 1980–2012. PERC Phase 1 Report. Plumbing Efficiency Research Coalition, 2012. http://www.map- testing.com/content/info/menu/perc.html Model Input Values are found in the “Codes and Standards” green section on the “Fixtures” worksheet of the DSS Model and confirmed in each “Service Area Calibration End Use” worksheet by customer category. Natural Replacement Rate of Fixtures (percent per year) Residential Toilets 2%-4% Non-Residential Toilets 2%-3% Residential Showers 4% (corresponds to 25-year life of a new fixture) Residential Clothes Washers 10% (based on 10-year washer life). Key References: “Residential End Uses of Water” (DeOreo, 2016) and “Bern Clothes Washer Study, Final Report” (Oak Ridge National Laboratory, 1998). Residential Faucets 10% and Non-Residential Faucets 6.7% (every 15 years). CEC uses an average life of 10 years for faucet accessories (aerators). A similar assumption can be made for public lavatories, though no hard data exists and since CII fixtures are typically replaced less frequently than residential, 15 years is assumed. CEC, Analysis of Standards Proposal for Residential Faucets and Faucet Accessories, a report prepared under CEC’s Codes and Standards Enhancement Initiative, Docket #12-AAER-2C, August 2013. Model Input Value is found in the “Codes and Standards” green section on the “Fixtures” worksheet of the DSS Model. Residential Future Water Use Increases Based on Population Growth and Demographic Forecast Non-Residential Future Water Use Increases Based on Employment Growth and Demographic Forecast Fixture Estimates Determining the current level of efficient fixtures in a service area while evaluating passive savings in the DSS Model is part of the standard process and is called “initial fixture proportions.” MWM reconciled water efficient fixtures and devices installed within the City of Bozeman service area and estimated the number of outstanding inefficient fixtures. MWM used the DSS Model to perform a saturation analysis for toilets, urinals, showerheads, faucets, and clothes washers. The process included a review of age of buildings from census data, number of rebates per device, and assumed natural replacement rates. MWM presumed the fixtures that were nearing saturation and worth analysis would include residential toilets and residential clothes washers. In 2014, the Water Research Foundation updated its 1999 Residential End Uses of Water Study (REUWS). Water utilities, industry regulators, and government planning agencies consider it the industry benchmark for single family home indoor water use. This Plan incorporates recent study results which reflect the change to the profile of water use in residential homes including adoption of more water efficient fixtures over the 15 344 City of Bozeman Water Conservation & Efficiency Plan 59 years that transpired from 1999 to 2014. REUWS results were combined with City historical rebate and billing data to enhance and verify assumptions made for all customer accounts, including saturation levels on the above-mentioned plumbing fixtures. The DSS Model presents the estimated current and projected proportions of these fixtures by efficiency level within the City’s service area. These proportions were calculated by: • Using standards in place at the time of building construction; • Taking the initial proportions of homes by age (corresponding to fixture efficiency levels); • Adding the net change due to natural replacement; then • Adding the change due to rebate measure minus the "free rider effect.”11 Further adjustments were made to initial proportions to account for the reduction in fixture use due to lower occupancy and based on field observations. The projected fixture proportions do not include any future active conservation measures implemented by the City. More information about the development of initial and projected fixture proportions can be found in the DSS Model “Codes and Standards” section. The DSS Model is capable of modeling multiple types of fixtures, including fixtures with different designs. For example, currently toilets can be purchased that flush at a rate of <1.0 gpf, 1.28 gpf or 1.6 gpf. So, the DSS Model utilizes fixture replacement rates to determine what type of fixture should be used for a new construction installation or replacement. The replacement of the fixtures is listed as a percentage within the DSS Model. A value of 100% would indicate that all the toilets installed would be of one particular flush volume. A value of 75% means that three out of every four toilets installed would be of that particular flush volume. All the Fixture Model information and assumptions were carefully reviewed and accepted by City staff. The DSS Model provides inputs and analysis of the number, type, and replacement rates of fixtures for each customer category (e.g., single family toilets, commercial toilets, residential clothes washers). For example, the DSS Model incorporates the effects of the 1992 Federal Energy Policy Act on toilet fixtures. A DSS Model feature determines the “saturation” of 1.6 gpf toilets as the 1992 Federal Energy Policy Act was in effect from 1992–2014 for 1.6 gpf toilet replacements. Further consideration and adjustments were made to replacement rates to account for the reduction in fixture use and wear, due to lower occupancy and based on field observations. 11 It is important to note that in water conservation program management the “free rider effect” occurs when a customer applies for and receives a rebate on a targeted high efficiency fixture that they would have purchased even without a rebate. In this case, the rebate was not the incentive for their purchase but a “bonus.” Rebate measures are designed to target customers needing financial incentive to install the more efficient fixture. 345 City of Bozeman Water Conservation & Efficiency Plan 60 A PPENDIX D – DSS MODEL MEASURE ANALYSIS, METHODOLOGY, PERSPECTIVES, AND ASSUMPTIONS Throughout the planning process, the City and MWM conducted more than 20 meetings, primarily in an effort to complete the DSS Model, which is robust for each of the 25 measures modeled. In the model, the City identified fixture costs, applicable customer classes, time period of implementation, measure life, administrative costs, end uses, end-use savings per replacement, and a target number or percentage of accounts per program year. D.1 Water Reduction Methodology Each conservation measure targets a particular water use, such as indoor single family water use. Targeted water uses are categorized by water user group and by end use. Targeted water user groups include single family residential; multi-family residential; commercial, industrial, and institutional; and so forth. Measures may apply to more than one water user group. Targeted end uses include indoor and outdoor use. The targeted water use is important to identify because the water savings are generated from reductions in water use for the targeted end use. For example, a residential retrofit conservation measure targets single family and multi-family residential indoor use, and in some cases specifically shower use. When considering the water savings potential generated by a residential retrofit, one considers the water saved by installing low-flow showerheads in single family and multi-family homes. The market penetration goal for a measure is the extent to which the product or service related to the conservation measure occupies the potential market. The market penetration goal identifies how many fixtures, rebates, surveys, and so forth that the wholesale customer would have to offer or conduct over time to reach its water savings goal for that conservation measure. This is often expressed in terms of the number of fixtures, rebates, or surveys offered or conducted per year. The potential for error in market penetration goal estimates for each measure can be significant because the estimates are based on previous experience, chosen implementation methods, projected utility effort, and funds allocated to implement the measure. The potential error can be corrected through reevaluation of the measure as the implementation of the measure progresses. For example, if the market penetration required to achieve specific water savings turns out to be different than predicted, adjustments to the implementation efforts can be made. Larger rebates or additional promotions are often used to increase the market penetration. The process is iterative to reflect actual conditions and helps to ensure that market penetration and needed savings are achieved regardless of future variances between estimates and actual conditions. In contrast, market penetration for mandatory ordinances can be more predictable with the greatest potential for error occurring in implementing the ordinance change. For example, requiring dedicated irrigation meters for new accounts through an ordinance can assure an almost 100% market penetration for affected properties. The City is constantly examining when a measure might reach saturation. Baseline surveys are the best approach to having the most accurate information on market saturation. This was considered when analyzing individual conservation measures where best estimates were made. MWM was not provided with any baseline surveys for this analysis, but discussions were held with the City regarding what the saturation best estimates were within its service area. D.2 Present Value Analysis and Perspectives on Benefits and Costs The determination of the economic feasibility of water conservation programs involves comparing the costs of the programs to the benefits provided using the DSS Model, which calculates the cost effectiveness of conservation measure savings at the end-use level. For example, the model determines the amount of water a toilet rebate program saves in daily toilet use for each single-family account. 346 City of Bozeman Water Conservation & Efficiency Plan 61 Present value analysis using present day dollars and a real discount rate of 3% is used to discount costs and benefits to the base year. From this analysis, benefit-cost ratios of each measure are computed. When measures are put together in programs, the model is set up to avoid double counting savings from multiple measures that act on the same end use of water. For example, multiple measures in a program may target toilet replacements. The model includes assumptions to apportion water savings between the multiple measures. Economic analysis can be performed from several perspectives, based on which party is affected. For planning water use efficiency programs for utilities, perspectives most used for benefit-cost analyses are the “utility” perspective and the “community” perspective. The “utility” benefit-cost analysis is based on the benefits and costs to the water provider. The “community” benefit-cost analysis includes the utility benefit and costs together with account owner/customer benefits and costs. These include customer energy and other capital or operating cost benefits plus costs of implementing the measure beyond what the utility pays. The utility perspective offers two advantages. First, it considers only the program costs that will be directly borne by the utility. This enables the utility to fairly compare potential investments for saving versus supplying increased quantities of water. Second, revenue shifts are treated as transfer payments, which means program participants will have lower water bills and non-participants will have slightly higher water bills so that the utility’s revenue needs continue to be met. Therefore, the analysis is not complicated with uncertainties associated with long-term rate projections and retail rate design assumptions. It should be noted that there is a significant difference between the utility’s savings from the avoided cost of procurement and delivery of water and the reduction in retail revenue that results from reduced water sales due to water use efficiency. This budget impact occurs slowly and can be accounted for in water rate planning. Because it is the water provider’s role in developing a water use efficiency plan that is vital in this study, the utility perspective was primarily used to evaluate elements of this report. The community perspective is defined to include the utility and the customer costs and benefits. Costs incurred by customers striving to save water while participating in water use efficiency programs are considered, as well as benefits received in terms of reduced energy bills (from water heating costs) and wastewater savings, among others. Water bill savings are not a customer benefit in aggregate for reasons described previously. Other factors external to the utility, such as environmental effects, are often difficult to quantify or are not necessarily under the control of the utility. They are therefore frequently excluded from economic analyses, including this one. The time value of money is explicitly considered. Typically, the costs to save water occur early in the planning period whereas the benefits usually extend to the end of the planning period. For this reason, a planning period of 10 years or longer is used because costs and benefits that occur beyond 10 years have little influence on the total present value of costs and benefits. The value of all future costs and benefits is discounted to the first year in the DSS Model (the base year) at the real interest rate of 3.01%. The DSS Model calculates this real interest rate, adjusting the current nominal interest rate (assumed to be approximately 6.1%) by the assumed rate of inflation (3.0%). The formula to calculate the real interest rate is: (nominal interest rate – assumed rate of inflation) / (1 + assumed rate of inflation) Cash flows discounted in this manner are herein referred to as “Present Value” sums. D.3 Measure Cost and Water Savings Assumptions Appendix E presents more detail on the assumptions and inputs used in the City’s DSS Model to evaluate each water conservation measure. Assumptions regarding the following variables were made for each measure: • Targeted Water User Group End Use – Water user group (e.g., single family residential) and end use (e.g., indoor or outdoor water use). 347 City of Bozeman Water Conservation & Efficiency Plan 62 • Utility Unit Cost – Cost of rebates, incentives, and contractors hired to implement measures. The assumed dollar values for the measure unit costs were closely reviewed by staff and are found to be adequate for each individual measure. The values in most cases are in the range of what is offered by other water utilities in the region. • Retail Customer Unit Cost – Cost for implementing measures that is paid by retail customers (i.e., the remainder of a measure’s cost that is not covered by a utility rebate or incentive). • Utility Administration and Marketing Cost – The cost to the utility for administering the measure, including consultant contract administration, marketing, and participant tracking. The mark-up is sufficient (in total) to cover conservation staff time, general expenses, and overhead. Costs are determined for each of the measures based on industry knowledge, experience, and data provided by the City. Costs may include incentive costs, usually determined on a per-participant basis; fixed costs, such as marketing; variable costs, such as the cost to staff the measures and to obtain and maintain equipment; and a one-time set-up cost. The set-up cost is for measure design by staff or consultants, any required pilot testing, and preparation of materials that are used in marketing the measure. Measure costs are estimated each year through 2040. Costs are spread out depending on the length of the implementation period for the measure and estimated voluntary customer participation levels. Lost revenue due to reduced water sales is not included as a cost because the water use conservation measures evaluated herein generally take effect over a long span of time. This span is sufficient to enable timely rate adjustments, if necessary, to meet fixed cost obligations and savings on variable costs such as energy and chemicals. The unit costs vary according to the type of customer account and implementation method being addressed. For example, a measure might have a different cost for a residential single-family account than for a residential multi-family account, or for a rebate versus an ordinance requirement or a direct installation implementation method. Typically, water utilities have found there are increased costs associated with achieving higher market saturation, such as more water efficiency surveys per year. The DSS Model calculates the annual costs based on the number of participants each year. The general formula for calculating annual utility costs is: • Annual Utility Cost = Annual market penetration rate x total accounts in category x unit cost per account x (1+administration and marketing markup percentage) • Annual Customer Cost = Annual number of participants x unit customer cost • Annual Community Cost = Annual utility cost + annual customer cost Data necessary to forecast water savings of measures include specifics on water use, demographics, market penetration, and unit water savings. Savings normally develop at a measured and predetermined pace, reaching full maturity after full market penetration is achieved. This may occur 3–10 years after the start of implementation, depending upon the implementation schedule. For every water use efficiency activity or replacement with more efficient devices, there is a useful life. The useful life is called the “Measure Life” and is defined to be how long water use conservation measures stay in place and continue to save water. It is assumed that measures implemented because of codes, standards, or ordinances (e.g., toilets) would be “permanent” and not revert to an old inefficient level of water use if the device needed to be replaced. However, some measures that are primarily behavior-based, such as residential surveys, are assumed to need to be repeated on an ongoing basis to retain the water savings (e.g., homeowners move away, and the new homeowners may have less efficient water using practices). Surveys typically have a measure life of about five years. 348 City of Bozeman Water Conservation & Efficiency Plan 63 APPENDIX E – INDIVIDUAL CONSERVATION MEASURE DESIGN INPUTS AND RESULTS Water Loss 2040 $25,000 Targets 2040 10.1% Water Savings (afy) 2040 317.184717 Overview Name Water Loss Description Results In conjunction with system accounting (maintaining a thorough annual accounting of water production, sales by customer class and quantity of water produced but not sold), include audits that identify and quantify known legitimate uses of non-revenue water in order to determine remaining non-revenue water losses. Goal would be to lower the Infrastructure Leakage Index (ILI) and non- revenue water every year by a pre-determined amount based on cost-effectiveness. These programs typically pay for themselves based on savings in operational costs (and saved rate revenue can be directed more to system repairs/replacement and other costs). Average Water Savings (afy) 126.565576 Lifetime Savings - Present Value ($) Utility Years to Complete Backlog 20 Abbr 1 Category 2 Measure Type Community $391,935 Benefit to Cost Ratio 3 Time Period First Year 2022 Backlog Costs Total Backlog Work Costs $500,000 Utility 8.75 Community 8.75 $3,431,066 Community $3,431,066 Lifetime Costs - Present Value ($) Utility $391,935 Utility 2020 $0 Cost of Savings per Unit Volume ($/af) Utility $147 Comments Total GPCD Reduction 3.0 Target • Start Year: 2022 • Annual Target is <10% leakage, decreasing ILI • Annual Budget: $25,000 for professional audit services • The $25k for professional services will come from the conservation budget. Additional funding to implement infrastructure improvements will come from the operations budget. Costs Maintenance Costs Annual Maintenance Costs $25,000 2024 $25,000 2025 $25,000 2026 $25,000 2021 $0 2022 $25,000 2023 $25,000 2031 $25,000 2032 $25,000 2027 $25,000 2028 $25,000 2029 $25,000 2039 $25,000 Projected NRW Percent 2020 12.6% 2021 2036 $25,000 2037 $25,000 2038 $25,000 2033 $25,000 2034 $25,000 2035 $25,000 2030 $25,000 2025 12.1% 2026 11.9% 2027 11.8% 12.6% 2022 12.5% 2023 12.3% 2024 12.2% 2031 11.3% 2032 11.1% 2033 11.0% 2028 11.7% 2029 11.5% 2030 11.4% 2037 10.5% 2038 10.3% 2039 10.2% 2034 10.9% 2035 10.7% 2036 10.6% 2021 0.000000 2022 9.535745 2023 19.674150 Total Savings 2020 0.000000 80.449008 2029 94.847081 2024 30.443780 2025 41.874404 2026 53.997044 2039 291.286143 2036 221.108062 2037 243.301415 2038 266.676599 2033 161.124122 2034 180.066948 2035 200.046069 2030 110.074780 2031 126.170159 2032 143.172850 2027 66.844021 2028 Units Water Loss 349 City of Bozeman Water Conservation & Efficiency Plan 64 Tiered Rate Structure for MF Price Elasticity -0.08 -0.05 -0.16 Utility Costs Annual Maintenance Cost $9,000 Consumer Price Index Annual Increase 2% Rate Study Cost $20,000 Rate Study Frequency (every # yrs.)5 Overall Indoor Outdoor Community $68,754 Benefit to Cost Ratio Community 0.65 Cost of Savings per Unit Volume ($/af) Utility $831 Utility 0.65 2037 1.0 4%2037 11.571351 2020 0.0 0% 2037 $9,000 $0 $9,000 2021 $0 $0 $0 2022 $0 2023 $0 $0 $0 2024 $0 Overview Name Tiered Rate Structure for MF Results Tiered rates for MF customers. Existing rates would be changed to create an incentive to use less water. Modifications could include adjusting the tiers, or adjusting the rates in the upper tiers, to increase the incentive to reduce landscape watering. 2036 3.9%1.9% Description 2039 3.9%1.9% 2040 3.9%1.9% 2037 3.9% Comments Planned Rate Increases Change Year Price Incr (%) Price Incr Adjusting for Inflation Customer Class Customer Class 2 Time Period First Year 2035 Abbr 2 Category 2 Measure Type 5 2035 3.9%1.9% 1.9% 2038 3.9%1.9%Utility $68,754 Average Water Savings (afy) 3.940306 Utility $44,808 Lifetime Savings - Present Value ($) Community $44,808 Lifetime Costs - Present Value ($) 2020 $0 $0 $0 First Year of Rate Study 2035 First Year Index 1.0 > Start year 2035 > Per Bozeman 2019 COSA/rate study, MF price elasticity peak and off-peak overall avg @ - 0.075. Indoor elasticity of -0.05 based on Washington County Water Conservancy District, Utah (WCWCD) 2021 rate study. Likely NOT accurate since Bozeman uses unmetered wells for MF irrigation. > $20K rate study per Bozeman staff and previous rate study costs and $9K/yr. maintenance per WCWCD 2021 rate study costs. > Bozeman would enact rate increases annually, but for design purposes assume average increase every year. An average 1.9% increase for MF rates from 2019-2024 was assumed above annual inflation. Adjusting future price increase is based off of known current information for potential future rate increase. Costs Utility Customer Total (Community) 0.0000002020 Projected Price Index Price Index Cumulative Index Increase 2034 $0 $0 $0 2035 $29,000 $0 $29,000 $0 $0 2026 $0 2029 $0 $0 $0 2030 $0 $0 $0 $0 $0 2023 0.0 0% 2024 0.0 0% 2026 0.0 0% 2033 0.000000 2027 0.000000 2028 0.000000 2029 0.000000 2024 0.000000 2025 2026 0.000000 0.0 0% 2030 0.0 $0 $0 0.0 0% $0 $0 2030 0.000000 2031 0.000000 2032 0.000000 2021 0.0 0% 2022 0.0 0% 2040 $29,000 $0 $29,000 2038 $9,000 $0 $9,000 2031 $0 $0 $0 2032 $0 $0 $0 2036 $9,000 $0 $9,000 2033 $0 $0 $0 2039 1.1 8% 2025 $0 2039 $9,000 $0 $9,000 2027 $0 $0 $0 2028 $0 $0 $0 2036 1.0 2% 2033 0.0 0% 2034 0% 2027 2028 0.000000 2038 1.1 6% 0.0 0% 2031 0.0 0% 2032 0.0 0% 0.0 0% 2025 0.0 0% 2034 0.000000 2035 3.739146 2040 1.1 10% 2035 1.0 0% Water Savings Total Savings (afy) 2038 15.672493 2039 19.902572 2040 24.265922 2021 0.000000 2022 0.000000 2023 0.000000 2036 7.594935 2029 Add Rate Increase Delete Delete Delete Delete Delete Delete Units Tiered Rate Structure for MF 350 City of Bozeman Water Conservation & Efficiency Plan 65 AMI and Customer Water Use Portal #################### #################### ############ #################### #################### #################### #################### ###### ########## #################### ######## #################### #################### #################### ########## ######## ######## #################### ############ Abbr 3 Category 2 Measure Type 1 Overview Name AMI and Customer Water Use Portal INGGSMSU##### Time Period First Year 2020 Last Year 2040 Measure Length 21 MF $225.00 $500.00 1 Measure Life Permanent ##### Years 15 Repeat C $225.00 $500.00 1 Fixture Cost per Device Utility Customer Fix/Acct R $225.00 $500.00 1 G $225.00 $500.00 1 GS $225.00 $500.00 1 CS $225.00 $500.00 1 IN $225.00 $500.00 1 Markup Percentage 10% Description Customer Classes RMFCCSNew_SF $225.00 $500.00 1 Administration Costs MSU $225.00 $500.00 1 LI $225.00 $500.00 1 GGSMSULINew_SFToilets LINew_SFEnd Uses RMFCCSINBaths Other Non-Lavatory/Kitchen Faucets Irrigation Urinals Lavatory Faucets Showers Dishwashers Clothes Washers Process $2,461,181 Lifetime Costs - Present Value ($) Utility $481,541 Community $1,454,351 Comments Results Average Water Savings (afy) 46.859732 Lifetime Savings - Present Value ($) Utility $1,338,233 Community Pools Wash Down Car Washing External Leakage Outdoor Cooling Kitchen Spray Rinse Internal Leakage Utility $489 End Use Savings Per Replacement % Savings/Acct Avg GPD/Acct Benefit to Cost Ratio Utility 2.78 Community 1.69 Cost of Savings per Unit Volume ($/af) C Internal Leakage 90.0%45.0 CS Internal Leakage 90.0%34.7 R Internal Leakage 90.0%14.1 MF Internal Leakage 90.0%53.9 GS Internal Leakage 90.0%72.2 MSU Internal Leakage 90.0%1,403.7 IN Internal Leakage 90.0%4,077.4 G Internal Leakage 90.0%50.1 MF Irrigation 5.0%99.8 C Irrigation 5.0%242.4 LI Internal Leakage 90.0%10.6 R Irrigation 5.0%91.2 G Irrigation 5.0%942.1 GS Irrigation 5.0%806.6 CS Irrigation 5.0%537.9 IN Irrigation 5.0%11,943.3 R External Leakage 90.0%7.7 MF External Leakage 90.0%8.4 MSU Irrigation 5.0%7,260.7 LI Irrigation 5.0%54.9 IN External Leakage 90.0%1,145.2 G External Leakage 90.0%84.5 C External Leakage 90.0%21.7 CS External Leakage 90.0%48.3 LI External Leakage 90.0%4.6 New_SF Internal Leakage 90.0%13.0 GS External Leakage 90.0%72.4 MSU External Leakage 90.0%696.2 Targets % of Accts Targeted/Yr.0.600% Only Affects New Accts FALSE New_SF Irrigation 5.0%162.3 New_SF External Leakage 90.0%13.7 2020 $18,731 $1,873 $20,604 2021 $19,260 $1,926 $21,186 Costs Fixture CostsAdmin Costs Util Total 2024 $20,949 $2,095 $23,044 2025 $21,548 $2,155 $23,703 2022 $19,805 $1,981 $21,786 2023 $20,368 $2,037 $22,405 2028 $23,464 $2,346 $25,811 2029 $24,144 $2,414 $26,559 2026 $22,167 $2,217 $24,384 2027 $22,805 $2,281 $25,086 2032 $26,317 $2,632 $28,949 2033 $27,088 $2,709 $29,797 2030 $24,846 $2,485 $27,330 2031 $25,570 $2,557 $28,127 $3,043 $33,469 2034 $27,884 $2,788 $30,672 2035 $28,705 $2,870 $31,575 2040 $33,221 $3,322 $36,544 Targets R MF C 2038 $31,329 $3,133 $34,462 2039 $32,260 $3,226 $35,486 2036 $29,552 $2,955 $32,507 2037 $30,427 2021 60 15 7 1 0 New_SF Total 2020 60 15 6 1 0 0 0 CS IN G GS MSU LI 0 0 0 1 2 86 0 1 0 83 0 0 0 1 3 8820226016710 0 0 0 1 5 9120236016710 0 0 0 1 7 9320246017710 0 0 0 1 8 9620256018810 0 0 0 1 10 9920266018810 0 0 0 1 12 10120276019810 0 0 0 1 14 10420286019810 0 0 0 1 16 10720296020910 0 0 0 1 18 11020306020910 0 0 0 1 20 11420316021910 0 0 0 1 23 117203260221010 0 0 0 1 25 120203360231010 0 0 0 1 27 124203460231010 0 0 0 1 30 128203560241110 0 0 0 2 32 131203660251110 0 0 0 2 35 135203760251110 1 0 0 2 38 139203860261210 1 0 0 2 40 143203960271210 1 0 0 2 43 148204060281310 2021 7.418447 2022 11.316483 2023 15.345813 Water Savings Total Savings (afy) 2020 3.647609 58.263030 2027 32.862744 2028 37.614784 2029 42.525633 2024 19.510668 2025 23.815413 2026 28.264554 > Retrofit system with AMI meters and associated network capable of providing continuous consumption data to Utility offices. Improved identification of system and customer leaks is a major conservation benefit. Some of the costs of these systems are offset by operational efficiencies and reduced staffing, as regular meter reading and those for opening and closing accounts are accomplished without the need for physical or drive-by meter reading. Also enables enhanced billing options and ability to monitor unauthorized use (such as use/tampering with closed accounts or irrigation if time of day or days per week are regulated). Customer service is improved as staff can quickly access continuous usage records to address customer inquiries. Optional features include online customer access to their use, which has been shown to improve accountability and reduce water use. A ten year change-out would be a reasonable objective. > Dropcountr water use portal which shows water use at an hourly timescale for customers with AMI meters, as well as sends leak alerts, allows for customers to set billing thresholds, and see how water use compares to neighbors and efficient neighbors. Customers without AMI capability can also see water use in Dropcountr, however it will only be displayed at a monthly timescale - these customers will not benefit from leak alerts nor will they benefit from setting billing thresholds. • Utility Cost: Based on Dept. measure annual cost of ~$19.2K. Though Bozeman pays $1.35 per meter for Dropcountr, with a total budget of $36,000/year, with a start year of 14,230 accounts, the cost is ~$19.2K. Utility cost per meter increase, as the targets are only assumed accounts that have and fix leaks. Not included in the cost: $170 per AMI Meter upgrade with 800 retrofits a year. This is $136k/year through 2025. However this is coming from operations budget, therefore not included in the utility cost. Costs for AMI infrastructure, such as additional gateways to transmit water use data, will come from operations budget. • Admin Markup: Per Dropcountr data provided by Bozeman, admin time includes customer Dropcountr inquiries, water use research, QAQC, and meeting preparation. Average time spent in summer is ~25-35 hours/month, and the average time spent in winter is ~20-25 hours/month. With an average annual time spent of ~60 hours. Fully staff burden rate is $29.92/hr. Average annual admin cost if 60 hours X $29.92 = $1,795.20. Admin cost updated to be a percentage to represent 1 hour of staff time per account. • Customer Cost: Assumed average cost for leak repair • End Use Water Savings: AMI savings based on significant reductions to leakage and irrigation end uses. Savings based on San Francisco Public Utilities Commission (SFPUC) case study per Julie Ortiz ppt at 2019 Peer-to-Peer “AMI: Everything you need to know to run a successful program." Savings are estimated to be 20%-50% on leakage, assumes average of 30% (internal and external) with a potential additional 5% savings on all other end uses due to behavioral changes, 5% savings to irrigation. For this measure, water savings increased to 90% on leak end use since ONLY leaking customers are targeted, not all. • Targets: Approx. based off of Dropcountr/Neptune meter data leak alerts and adjusted to meter data backfilling/meter communication lag. 2039 82.069818 2040 84.799664 2036 74.381091 2037 76.863155 2038 79.425204 2033 63.861961 2034 69.646992 2035 71.976511 2030 47.600407 2031 52.844389 2032 Method: Units Method: Target Method: View:View Units AMI and Customer Water Use Portal 351 City of Bozeman Water Conservation & Efficiency Plan 66 Capital Project – Retrofit City Medians with Drought Tolerant Landscaping and Efficient Irrigation #################### ## ## ## ## ## ## ## ## ## ## ## ## ## Water Savings Total Savings (afy) 2020 0.000000 • Utility Cost: Costs for installation of project will likely come from Streets budget, therefore not included in the utility cost. Per Bozeman staff, a budget of approx. ~$15k for design cost for the Valley Center median project. • Admin Markup: Assumes 1% admin cost • Customer Cost: No customer costs • End Use Water Savings: Savings assumes measure targets GS account with only irrigation end use. Assume the median project will be approximately 28,619 square feet to yield an average annual savings of 20.7 gal/sq.ft. x 28,619 sq.ft. =592,393 gal/yr/site on average (or 1,622 gpd/site). • Targets: Only City water median project is the Valley Center project. Therefore only one project. Not including well irrigated sites as model is potable water only. Costs Fixture Costs Admin Costs Util Total 2020 $0 $0 $0 Targets GS Total 2020 0 0 Overview Name Capital Project - Retrofit City Medians with Drought Tolerant Landscaping and Efficient Irrigation INGGSMSULINew_SFTime Period First Year 2027 Last Year 2027 Measure Length 1 Abbr 4 Category 2 Measure Type 1 Markup Percentage 1% Description Retrofit turfgrass street medians with drought tolerant landscaping and efficient irrigation to serve as an example of Best Management Practices (BMPs) to the community and reduce water use. Customer Classes RMFCCSGS $15,000.00 $0.00 1 Administration Costs Measure Life Permanent TRUE Fixture Cost per Device Utility Customer Fix/Acct End Uses RMFCCSINShowers Dishwashers Clothes Washers Process GGSMSULINew_SFToilets Comments Wash Down Car Washing External Leakage Outdoor Cooling Results Average Water Savings (afy) 1.212077 Lifetime Savings - Present Value ($) Utility $33,510 Community Pools Kitchen Spray Rinse Internal Leakage Baths Other Non-Lavatory/Kitchen Faucets Irrigation Urinals Lavatory Faucets Benefit to Cost Ratio Utility 2.51 Community 2.51 Cost of Savings per Unit Volume ($/af) $33,510 Lifetime Costs - Present Value ($) Utility $13,365 Community $13,365 GS Irrigation 1,622.0 806.6 Targets # of Accts Targeted/Yr.1 Utility $525 End Use Savings Per Replacement Savings GPD/Acct Avg GPD/Acct 2022 $0 $0 $0 2023 $0 $0 $0 2021 $0 $0 $0 2026 $0 $0 $0 2027 $15,000 $150 $15,150 2024 $0 $0 $0 2025 $0 $0 $0 2030 $0 $0 $0 2031 $0 $0 $0 2028 $0 $0 $0 2029 $0 $0 $0 2034 $0 $0 $0 2035 $0 $0 $0 2032 $0 $0 $0 2033 $0 $0 $0 $0 $0 2036 $0 $0 $0 2037 $0 $0 $0 2021 0 0 2022 2040 $0 $0 $0 2038 $0 $0 $0 2039 $0 2025 0 0 2026 0 0 0 0 2023 0 0 2024 0 0 2029 0 0 2030 0 0 2027 1 1 2028 0 0 2033 0 0 2034 0 0 2031 0 0 2032 0 0 2039 0 0 2040 0 0 2023 0.000000 2024 0.000000 2025 0.000000 2037 0 0 2038 0 0 2035 0 0 2036 0 0 1.818115 2030 1.818115 2031 1.818115 2026 0.000000 2027 1.818115 2028 1.818115 2038 1.818115 2039 1.818115 2040 1.818115 2035 1.818115 2036 1.818115 2037 1.818115 2032 1.818115 2033 1.818115 2034 1.818115 2029 2021 0.000000 2022 0.000000 Method: Units Method: Target Method: View:View Units Capital Project -Retrofit City Medians with Drought Tolerant Landscaping and Efficient Irrigation 352 City of Bozeman Water Conservation & Efficiency Plan 67 Capital Project – Upgrade City Facility Irrigation Systems #################### #### #### #### #### #### #### #### #### #### #### #### #### #### 2037 1.646328 2038 1.646328 2037 $0 $0 $0 2038 $0 $0 $0 2037 0 0 0 2038 0 0 0 2035 0 0 0 2036 0 0 0 2036 1.646328 2033 1.646328 2034 1.646328 2035 1.646328 2030 1.646328 2031 1.646328 2032 1.646328 2027 1.646328 2028 1.646328 2029 1.646328 2024 0.411582 2025 Total Savings (afy) 2020 0.000000 Water Savings 0.823164 2026 1.234746 2021 0.000000 2022 0.000000 2023 0.000000 0 0 2031 0 0 0 2032 0 0 0 2033 0 0 0 2034 0 2029 0 0 0 2030 0 0 0 2027 1 1 2 2028 0 0 0 2025 1 1 2 2026 1 1 2 2023 0 0 0 2024 1 1 2 2031 $0 $0 $0 2032 $0 $0 $0 2029 $0 $0 $0 2030 $0 $0 $0 2036 $0 $0 $0 2033 $0 $0 $0 2034 $0 $0 $0 2035 $0 $0 $0 2027 $21,000 $651 $21,651 2028 $0 $0 $0 2025 $21,000 $651 $21,651 2026 $21,000 $651 $21,651 2023 $0 $0 $0 2024 $21,000 $651 $21,651 2021 $0 $0 $0 2022 $0 $0 $0 Fixture Costs Admin Costs Util Total 2020 $0 $0 $0 G GS Total 2020 0 0 0 • Utility Cost: $8k per system to complete all upgrades identified in an audit and convert to CICS. Plus $20k total for labor (~ $2,500 per site). Total Utility cost of $10,500 • Admin Markup: Assumes an average of 11 hours per project, with approx. 6 hours for field audit and 5 hours for office time. Assumes admin time is at the Water Conservation Technician fully burdened rate of $29.92. This is ~$330 per project and can vary (less time/more time) depending on the project. • Customer Cost: No cost to customer • End Use Water Savings: The water savings are based on the following from the 2018 Landscape Rebate Water Savings Study from Valley Water: > The annual water savings for replacing timer-based automatic irrigation controllers with weather-based irrigation controllers with rain shut-off devices were statistically significant each year following conversion, incrementally increased each year following conversion, and were on average 9 gal/ft2/yr. or an average of 27% > The annual water savings for replacing old sprinklers with high-efficiency nozzles was 1,243 gal/unit/yr. on average or an average of 15.3% >Annual savings for replacing old sprinklers with high-efficiency nozzles including pressure regulation and/or check valves were significant in the first year following conversion, saving 1,661 gal/unit/yr. on average, or an average of 18%. > Total average irrigation savings is 20.1% > Soil moisture sensor savings may be 20% of irrigation use based on more than 10 California site water use reports conducted over multiple months in years 2015-2017 as provided by Brian Holland www.sustainablewatersavings.com. Studies show a range of 20%-60% savings for trained soil moisture sensor device installation and site management. A lower savings estimate is assumed for layperson usage and non-drought normal planning years. The manufacturer claims device batteries last 10-12 years. > Leakage: assumes 10% leakage savings from updating and monitoring of equipment. • Targets: total of 8 facilities in time period. • Start year: 2024 based on availability of funding. Comments Wash Down Car Washing External Leakage Outdoor Cooling Costs Targets # of Accts Targeted/Yr.1 Targets G Irrigation 20.1%942.1 G External Leakage 10.0%84.5 GS External Leakage 10.0%72.4 Utility $3,076 End Use Savings Per Replacement % Savings/Acct Avg GPD/Acct Cost of Savings per Unit Volume ($/af) $34,097 Lifetime Costs - Present Value ($) Utility $78,495 Community $78,495 0.43 Community 0.43 Pools Kitchen Spray Rinse Internal Leakage Baths Other Non-Lavatory/Kitchen Faucets Irrigation Urinals Lavatory Faucets Showers Dishwashers Clothes Washers Process End Uses RMFCCSINGS Irrigation 1.215147 Lifetime Savings - Present Value ($)LINew_SFToilets 20.1%806.6 Utility $34,097 Community GGSMSUBenefit to Cost Ratio Utility 1 Measure Life Permanent TRUE Time Period First Year 2024 Last Year 2027 Measure Length 4 Fixture Cost per Device Utility Customer Fix/Acct G $10,500.00 $0.00 Overview Name Capital Project - Upgrade City Facility Irrigation Systems INGGSMSUResults Average Water Savings (afy) Customer Classes RMFCCSLINew_SF2021 0 0 0 2022 0 0 0 Abbr 5 Category 2 Measure Type 1 Markup Percentage 3% Description Perform irrigation system audits to document existing irrigation system components and retrofit with MSMT nozzles, weather based irrigation controllers, soil moisture sensors etc. as needed. Include recommended watering schedule to reduce overwatering. GS $10,500.00 $0.00 1 Administration Costs 2039 1.646328 2040 1.646328 2039 $0 $0 $0 2040 $0 $0 $0 2039 0 0 0 2040 0 0 0 Method: Units Method: Target Method: View:View Units Capital Project -Upgrade City Facility Irrigation Systems 353 City of Bozeman Water Conservation & Efficiency Plan 68 Dedicated Irrigation Meters & Irrigation Account Rate Structure #################### ############ ########## ############ ############ ############ ############ ###### ######## ############ ## ############ ############ ############ ## ## ## ############ ########## 2021 0.000000 2022 0.000000 2023 0.000000 2020 0.000000 2028 2024 0.000000 2025 0.000000 2026 0.000000 2035 2.930842 0.913326 2032 1.393057 2027 0.000000 2039 5.232634 2036 3.478160 2037 4.043817 2038 4.628429 2033 0.000000 2029 0.000000 2030 0.449142 2031 1.888857 2034 2.401266 2039 62 31 3 0 1 0 92 2038 60 30 3 0 1 0 95 2037 59 29 3 0 1 0 98 2036 57 28 3 0 1 0 89 2035 55 27 3 0 1 0 86 2034 53 26 3 0 1 0 84 2033 52 25 3 0 1 0 81 2032 50 25 3 0 1 0 78 2031 49 24 3 0 1 0 76 2030 47 23 2 0 1 0 73 2029 0 0 0 0 0 0 0 2028 0 0 0 0 0 0 0 2027 0 0 0 0 0 0 0 2026 0 0 0 0 0 0 0 2025 0 0 0 0 0 0 0 2024 0 0 0 0 0 0 0 2023 0 0 0 0 0 0 0 2022 0 0 0 0 0 0 0 0 0 0 2020 0 0 0 0 0 0 0 0 0 2039 $5,109 $920 $6,029 Targets 2037 $4,790 $862 $5,652 2038 $4,947 $890 $5,837 2035 $4,491 $808 $5,299 2036 $4,638 IN $835 $5,473 2033 $4,210 $758 $4,968 2034 $4,348 $783 $5,131 2031 $3,947 $710 $4,657 2032 $4,076 $734 $4,810 2029 $0 2021 0 0 $0 $0 2030 $3,822 $688 $4,510 2027 $0 $0 $0 2028 $0 $0 $0 2025 $0 $0 $0 2026 $0 $0 $0 2020 $0 $0 $0 2023 $0 $0 $0 2024 $0 $0 $0 2021 $0 $0 $0 2022 $0 $0 $0 G External Leakage 1.5%84.5 GS External Leakage 1.5%72.4 Fixture Costs Admin Costs Util Total G GS Total Water Savings Total Savings (afy)MF C CS CS External Leakage 1.5%48.3 IN External Leakage 1.5%1,145.2 MF External Leakage 1.5%8.4 C External Leakage 1.5%21.7 G Irrigation 3.0%942.1 GS Irrigation 3.0%806.6 CS Irrigation 3.0%537.9 IN Irrigation 3.0%11,943.3 MF Irrigation 3.0%99.8 C Irrigation 3.0%242.4 Utility $1,343 End Use Savings Per Replacement % Savings/Acct Avg GPD/Acct Utility 0.92 Community 0.22 Cost of Savings per Unit Volume ($/af) $41,168 Lifetime Costs - Present Value ($) Utility $44,601 Community $189,974 Comments Results Average Water Savings (afy) 1.581744 Lifetime Savings - Present Value ($) Utility $41,168 Community Pools Wash Down Car Washing External Leakage Outdoor Cooling Kitchen Spray Rinse Internal Leakage Baths Other Non-Lavatory/Kitchen Faucets Irrigation Urinals Lavatory Faucets Benefit to Cost Ratio Showers Dishwashers Clothes Washers Process GGSMSULINew_SFToilets End Uses RMFCCSINCCSINGGSMSUAdministration Costs Markup Percentage 18% Description This measure would require that dedicated irrigation meters be installed for all new customer classes except R, NEW SF, MSU, and LI. An irrigable area threshold would be set indicating when an account would be required to have a separate irrigation meter. G $52.00 $200.00 1 GS $52.00 $200.00 1 CS $52.00 $200.00 1 IN $52.00 $200.00 1 MF $52.00 $200.00 1 C $52.00 $200.00 1 Measure Life Permanent TRUE Fixture Cost per Device Utility Customer Fix/Acct Time Period First Year 2030 Last Year 2040 Measure Length 11 Abbr 6 Category 2 Measure Type 1 Overview Name Dedicated Irrigation Meters & Irrigation Account Rate Structure Customer Classes RMFLINew_SF2040 5.857088 • Utility Cost: Cost for the meter will come from the operations department budget, not water conservation. This measure will only be targeting new accounts and not retrofitting. Because a rate study would be included as part of this measure, an assumed conservation dept. utility cost of $15,000 is included for the rate study. Assumes rate study would be every 5 years, therefore $15k x 3 (2030, 2035, 2040) = $45k over time period of the measure - distributed annually. This breaks outs to an annual cost of ~$4,100 for the 11 year time period. • Admin Markup: minimal for water conservation dept. tracking only (occasional). Assumes approx. 200 hours of staff time to set up an average rate of $38.39/hr. which is an average between Water conservation manager (fully burdened cost = $46.86/hr.) and water conservation technician (fully burdened cost = $29.92/hr.). Most of the staff time is assumed to be during the start up of the program. This time is spread out through the length of the measure. • Customer Cost: Cost for checking leaks, etc. There will be no cost to customer for the meter. • End Use Water Savings: Using variance program and Aurora program estimates that, on average, customers are 15% over budget or "expected" water use. Customers will become slightly more efficient on average due to the cost of being inefficient so assume 1.5%-3% savings. Minimal savings are assumed to avoid a double count with the Landscape Ordinance measure. • Targets: This measure is not a retrofit measure and is only targeting new accounts. 45% of new development is targeted. Costs 2040 $5,277 $950 $6,226 2040 64 32 3 0 1 0 101 Targets % of Accts Targeted/Yr.45.000% Only Affects New Accts TRUE Method: Units Method: Target Method: View:View Units Dedicated Irrigation Meters & Irrigation Account Rate Structure 354 City of Bozeman Water Conservation & Efficiency Plan 69 Impact Fee Credit #################### ########## #### ########## ########## ########## ########## #### #### ########## ###### ########## ########## ########## ###### ###### ###### ########## #### MF Wash Down MF Car Washing MF External Leakage C External Leakage CS External Leakage C Cooling CS Cooling LI Toilets New_SF Toilets LI Lavatory Faucets New_SF Lavatory Faucets LI Showers • Utility Cost: No conservation department cost. There would be an impact fee credit, likely the same amount as the customer cost to install the more efficient fixtures and landscaping (warranting the credit). • Admin Markup: Admin of the program is ~4 staff hrs. per account for compliance ($29.92/hr. is the fully burdened water conservation cost, assuming 15% of new MF, C, and CS, LI, and NEW_SF accounts are participating). • Customer Cost: Customer cost represents the impact fee with 20% "credit" removed. The average 2020 impact fee for residential properties (SF, RES, Duplexes, Townhomes, and ADUs) was $6,902. The average 2020 impact fee for commercial properties was $9,884. The customer cost displayed in this model is the impact fee MINUS 20% assumed credit. • End Use Water Savings: Overall savings across all end uses is 20% • Targets: Assumes 15% of new accounts would participate. • Time Period: As this measure sunsets, the "Mandatory Offsets" measure will begin. Start year 2025 - hiring/conducting an impact fee study fiscal year 2022, so a credit would likely be adopted by 2025. 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 2039 60.831997 2040 54.806135 2036 61.185411 2037 61.063232 2038 60.945547 2033 61.583076 2034 61.444875 2035 61.312480 2030 39.344478 2031 46.548602 2032 53.958776 2027 18.875319 2028 25.513772 2029 32.334875 2024 0.000000 2025 6.123842 2026 12.413842 2021 0.000000 2022 0.000000 2023 0.000000 Water Savings Total Savings (afy) 2020 0.000000 0 2040 0 0 0 0 0 0 2039 0 0 0 0 0 0 2038 0 0 0 0 0 0 2037 0 0 0 0 0 0 2036 0 0 0 0 0 0 2035 0 0 0 0 0 85 2034 0 0 0 0 0 0 2033 17 8 1 1 57 80 2032 17 8 1 1 56 83 2031 16 8 1 1 54 75 2030 16 8 1 1 52 77 2029 15 7 1 1 51 70 2028 15 7 1 1 49 73 2027 14 7 1 1 48 66 2026 14 7 1 1 46 68 2025 13 6 1 1 45 0 2024 0 0 0 0 0 0 2023 0 0 0 0 0 0 2022 0 0 0 0 0 0 2021 0 0 0 0 0 LI New_SF Total 2020 0 0 0 0 0 0 2040 $0 $0 $0 Targets MF C CS 2038 $0 $0 $0 2039 $0 $0 $0 2036 $0 $0 $0 2037 $0 $0 $0 2034 $0 $0 $0 2035 $0 $0 $0 2032 $1 $9,086 $9,087 2033 $1 $9,086 $9,087 2030 $1 $9,086 $9,087 2031 $1 $9,086 $9,087 2028 $1 $9,086 $9,087 2029 $1 $9,086 $9,087 2026 $1 $9,086 $9,087 2027 $1 $9,086 $9,087 2024 $0 $0 $0 2025 $1 $9,086 $9,087 2022 $0 $0 $0 2023 $0 $0 $0 2020 $0 $0 $0 2021 $0 $0 $0 Costs Fixture CostsAdmin Costs Util Total Targets % of Accts Targeted/Yr.15.000% Only Affects New Accts TRUE LI External Leakage 20.0%4.6 New_SF External Leakage20.0%13.7 LI Car Washing 20.0%2.6 New_SF Car Washing20.0%7.8 LI Wash Down 20.0%2.6 New_SF Wash Down 20.0%7.8 LI Pools 20.0%1.3 New_SF Pools 20.0%3.9 LI Irrigation 20.0%54.9 New_SF Irrigation 20.0%162.3 LI Non-Lavatory/Kitchen Faucets20.0%9.7 New_SF Non-Lavatory/Kitchen Faucets20.0%11.9 LI Other 20.0%3.4 New_SF Other 20.0%4.1 LI Baths 20.0%2.0 New_SF Baths 20.0%2.5 LI Internal Leakage 20.0%10.6 New_SF Internal Leakage20.0%13.0 LI Clothes Washers 20.0%12.9 New_SF Clothes Washers20.0%15.8 LI Dishwashers 20.0%0.9 New_SF Dishwashers20.0%1.2 14.9 New_SF Showers 20.0%18.2 5.2 6.4 19.1 23.3 46.6 103.4 21.7 48.3 4.8 8.4 MF Pools 20.0%2.4 4.8 C Irrigation 20.0%242.4 CS Irrigation 20.0%537.9 CS Non-Lavatory/Kitchen Faucets20.0%22.4 MF Irrigation 20.0%99.8 MF Non-Lavatory/Kitchen Faucets20.0%49.2 C Non-Lavatory/Kitchen Faucets20.0%48.3 C Other 20.0%37.5 CS Other 20.0%20.8 MF Baths 20.0%10.2 MF Other 20.0%17.0 C Internal Leakage 20.0%45.0 CS Internal Leakage 20.0%34.7 CS Kitchen Spray Rinse 20.0%17.4 MF Internal Leakage 20.0%53.9 CS Process 20.0%48.6 C Kitchen Spray Rinse 20.0%37.5 CS Clothes Washers 20.0%52.1 C Process 20.0%105.1 MF Clothes Washers 20.0%65.5 C Clothes Washers 20.0%112.6 C Dishwashers 20.0%45.0 CS Dishwashers 20.0%20.8 CS Showers 20.0%31.3 MF Dishwashers 20.0%4.8 MF Showers 20.0%75.7 C Showers 20.0%67.6 C Lavatory Faucets 20.0%56.8 CS Lavatory Faucets 20.0%26.3 CS Urinals 20.0%20.8 MF Lavatory Faucets 20.0%26.5 CS Toilets 20.0%52.1 C Urinals 20.0%45.0 MF Toilets 20.0%96.8 C Toilets 20.0%150.1 Utility $97 % Savings/Acct Avg GPD/Acct Benefit to Cost Ratio Utility 13.74 Community 0.36 Cost of Savings per Unit Volume ($/af) % Savings/Acct Avg GPD/Acct End Use Savings Per Replacement $1,220,446 Lifetime Costs - Present Value ($) Utility $69,679 Community $3,396,050 Comments Results Average Water Savings (afy) 34.204107 Lifetime Savings - Present Value ($) Utility $957,338 Community Pools Wash Down Car Washing External Leakage Outdoor Cooling Kitchen Spray Rinse Internal Leakage Baths Other Non-Lavatory/Kitchen Faucets Irrigation Urinals Lavatory Faucets Showers Dishwashers Clothes Washers Process $5,521.98 1 GGSMSULINew_SFToilets LINew_SFEnd Uses RMFCCSINCCSINGGSMSUMF $0.01 $5,521.98 1 The purpose of an impact fee credit is to promote non-turf landscaping in some area of a customer's property - might be the front yard of residential homes. It is also designed to promote more water efficient device installation indoors. A credit amount would be established to offset any cost a developer might incur from installing the more expensive landscaping or fixtures. Any plants would come off the utility's recommended xeriscape/low water plant list. This measure also includes indoor water use. C $0.01 $7,907.46 1 CS $0.01 $7,907.46 1 Administration Costs Annual Admin Costs $9,086 Description LI $0.01 $5,521.98 1 New_SF $0.01 Time Period First Year 2025 Last Year 2033 Measure Length 9 Fixture Cost per Device Utility Customer Fix/Acct Abbr7 Category 2 Measure Type 1 Overview NameImpact Fee Credit Customer Classes RMFMeasure Life Permanent ##### Years 15 Repeat ##### Method: Units Method: Target Method: View:View Units Impact Fee Credit 355 City of Bozeman Water Conservation & Efficiency Plan 70 Financial Incentives for Irrigation and Landscape Upgrades #################### ########## #### ########## ########## ########## ########## #### ## ########## ###### ########## ########## ########## ###### ###### ###### ########## #### Comments 1.3962902020 MFR 10113502020$17,831$3,791$14,0412020 • Utility Cost: The City's outdoor rebate amount is dependent on if the account is new construction or a retrofit. > WBIC: up to $250 for retrofit and up to $150 for new construction > HE Nozzles: up to $5/nozzle (min of 5) for retrofit and up to $3/nozzle (min of 5) for new construction > Rain Sensors: Up to $50 for retrofit and up to $30 for new construction > Drip irrigation equipment: Up to $250 for both retrofit and new construction > Utility unit cost is derived by average number of annual rebates from 2017 - 2020, with a higher utility cost for CII/MF, assuming that they would purchase more HE nozzles and sq. ft. of drip area. • Admin Markup: Assumes admin time spent processing outdoor rebates is 2.5 hours/week. This is ~130 staff hours annually processing outdoor rebates. Admin time assumes 130 hours a year at fully burdened rate for water conservation technician ($29.92/hr.). 130 x $29.92 = ~$3,900 annually. • Customer Cost: Customer costs per account will vary significantly based on devices. • End Use Water Savings: The water savings are based on the following from the 2018 Landscape Rebate Water Savings Study from Valley Water: > The annual water savings for replacing timer-based automatic irrigation controllers with weather-based irrigation controllers with rain shut-off devices were statistically significant each year following conversion, incrementally increased each year following conversion, and were on average 9 gal/ft2/yr. or an average of 27% > The annual water savings for replacing old sprinklers with high-efficiency nozzles were 1,243 gal/unit/yr. on average. or an average of 15.3% >Annual savings for replacing old sprinklers with high-efficiency nozzles including pressure regulation and/or check valves were significant in the first year following conversion, saving 1,661 gal/unit/yr. on average, or an average of 18%. > Total average irrigation savings is 20.1% > Soil moisture sensor savings may be 20% of irrigation use is based on more than 10 California site water use reports conducted over multiple months in years 2015-2017 as provided by Brian Holland www.sustainablewatersavings.com. Studies show a range of 20%-60% savings for trained soil moisture sensor device installation and site management. A lower savings estimate is assumed for layperson usage and non-drought normal planning years. The manufacturer claims device batteries last 10-12 years. • Targets: Per historical outdoor rebate data provided by Bozeman staff, annual average number of outdoor rebates for both retrofit and new build from 2017 - 2020 is ~50. This excludes HE nozzles, as it is assumed accounts that get one set of outdoor rebate devices will likely get nozzles as well. Targets increased in the model, as the City would like to target more accounts. NEW_SF accounts not included as they should already have proper landscape and irrigation equipment per the landscape ordinance measures. 2039 16.176557 2035 15.465497 2036 15.634844 2037 15.809683 2032 14.988706 2033 15.142593 2034 15.301469 2029 14.555439 2030 14.695279 2031 14.839652 2026 2028 13.035384 2023 5.659117 2024 7.106057 2025 8.566702 2038 15.990193 2021 2.804643 2022 4.225451 Water Savings Total Savings (afy) 10.041497 2027 11.530900 74 2039 50 23 1 0 1 75 2038 50 22 1 0 1 73 2037 50 21 1 0 1 73 2036 50 21 1 0 1 71 2035 50 20 1 0 1 72 2034 50 19 1 0 1 70 2033 50 19 1 0 1 71 2032 50 18 1 0 1 69 2031 50 18 1 0 1 69 2030 50 17 1 0 1 68 2029 50 17 1 0 1 68 2028 50 16 1 0 1 67 2027 50 16 1 0 1 67 2026 50 15 1 0 1 0 1 66 2025 50 15 1 0 1 66 2024 50 14 1 0 1 $4,506 $21,194 1 0 1 64 65 2023 50 14 1 0 1 65 2022 50 13 1 64 2021 50 13 2039 $17,349 $4,684 $22,034 2038 $17,122 $4,623 $21,745 $4,396 $20,676 2037 $16,901 $4,563 $21,465 2035 $16,481 $4,450 $20,931 2036 $16,688 2033 $16,086 $4,343 $20,429 2034 $16,280 2031 $15,715 $4,243 $19,957 2032 $15,897 $4,292 $20,189 2029 $15,366 $4,149 $19,515 2030 $15,537 $4,195 $19,733 2027 $15,038 $4,060 $19,099 2028 $15,199 $4,104 $19,303 2025 $14,731 $3,977 $18,708 2026 $14,882 $4,018 $18,900 2024 $14,584 $3,938 $18,521 2021 $14,170 $3,826 $17,996 2022 $14,304 $3,862 $18,166 FALSE Costs Fixture Costs Admin Costs Util Total Only Affects New Accts Targets CS IN LI Total LI Irrigation 20.1%54.9 Targets % of Accts Targeted/Yr.0.500% CS Irrigation 20.1%537.9 IN Irrigation 20.1%11,943.3 Utility $348,144 Community $532,466 R Irrigation 20.1%91.2 MF Irrigation 20.1%99.8 Utility $1,396 End Use Savings Per Replacement % Savings/Acct Avg GPD/Acct Utility $336,346 Community Pools Urinals Lavatory Faucets Showers Dishwashers Clothes Washers Process GGSMSULINew_SFToilets Benefit to Cost Ratio Utility 0.97 Community 0.63 Cost of Savings per Unit Volume ($/af) $336,346 Lifetime Costs - Present Value ($) Wash Down Car Washing External Leakage Outdoor Cooling Kitchen Spray Rinse Internal Leakage Baths Other Non-Lavatory/Kitchen Faucets Irrigation End Uses RMFCCSINCCSINGGSMSULINew_SFAdministration Costs Markup Percentage 27% Description For SF, MF, CII customers with landscape, provide a Smart Landscape Rebate Program with rebates for substantive landscape retrofits or installation of water efficient upgrades; Rebates contribute towards the purchase of selected types of irrigation equipment upgrades (weather- based irrigation controllers, MSMT nozzles, rain sensors, drip irrigation). Rebate for residential accounts and up to 50% more for commercial customers. Landscape conversion and turf removal is not part of this measure. IN $300.00 $300.00 1 LI $200.00 $100.00 1 MF $300.00 $300.00 1 CS $300.00 $300.00 1 Fixture Cost per Device Utility Customer Fix/Acct R $200.00 $100.00 1 Measure Life Permanent FALSE Years 10 Repeat FALSE Time Period First Year 2020 Last Year 2040 Measure Length 21 Abbr8 Category 2 Measure Type 1 Overview NameFinancial Incentives for Irrigation and Landscape Upgrades Customer Classes RMFResults Average Water Savings (afy) 11.873091 Lifetime Savings - Present Value ($) 2040 16.3689662040$17,584 $4,748 $22,332 2040 50 23 1 0 1 76 2023 $14,442 $3,899 $18,341 Method: Units Method: Target Method: View:View Units Financial Incentives for Irrigation and Landscape Upgrades 356 City of Bozeman Water Conservation & Efficiency Plan 71 Landscape Conversion or Turf Removal Rebate #################### ############ ###### ############ ############ ############ ############ ###### #### ############ ###### ############ ############ ############ ###### ###### ###### ############ ###### 82.834546 2039 88.471188 2040 94.211569 C Irrigation 25.0%242.4 Only Affects New Accts FALSE 56.093031 2034 61.259474 2035 66.513839 2036 71.859085 2037 77.298267 31.482741 2029 36.250658 41.093098 2031 46.012565 2032 51.011651 2023 8.678877 2024 13.108994 2025 17.602281 2026 22.160859 2027 26.786923 Water Savings Total Savings (afy) 2020 0.000000 2021 0.000000 2022 4.309874 2 142 2 143 2 145 2 146 2 148 % of Accts Targeted/Yr.1.000% Costs Fixture CostsAdmin Costs Util Total 2020 $0 $0 $0 Targets R MF C CS IN LI Total 2020 0 91.2 MF Irrigation 25.0%99.8 CS Irrigation 25.0%537.9 IN Irrigation 25.0%11,943.3 Comments • Utility Cost: Assume rebate of $1/sq. foot of turf removed which equates to approximately 25% of total project cost. Assume MF/CII utility costs ($2,000) and SF costs ($450) are based on average irrigable area of 4,033 sq ft from the low size assumptions workbook for landscape ordinance measures). Assume large sites have more than one meter, therefore large sites can qualify for multiple rebates to make it a worthwhile effort with a higher total site incentive value. • Admin Markup: Assumes staff time to run the measure (including pre and post site inspections). • Customer Cost: Remaining cost to update landscape site • End Use Water Savings: Water savings based Bozeman analysis that a typical participant in this program removes 1,000 SF of turf and replaces it with drought tolerant vegetation, they will reduce total outdoor water use by ~20%. If they remove 1,500 SF, they will reduce use by 30%. • Targets: NEW_SF accounts not included as they should already have proper landscape and irrigation equipment per the landscape ordinance measures. Results Average Water Savings (afy) 42.716168 Lifetime Savings - Present Value ($) Utility $1,167,822 Community $1,167,822 Lifetime Costs - Present Value ($) Utility $2,596,488 Community $20,569,483 Benefit to Cost Ratio Utility 0.45 Community 0.06 Cost of Savings per Unit Volume ($/af) Utility $2,895MSULINew_SFEnd Uses MSULINew_SFRMFRMFName Measure Life Permanent #####CCSINGGSCCSINGGSOverview Landscape Conversion or Turf Removal Rebate 9 2 1 Customer Classes Time Period First Year 2022 Last Year 2040 Measure Length 19 Abbr Category Measure Type Utility Customer Fix/Acct R $450.00 $2,000.00 1 Years 20 Repeat ##### Fixture Cost per Device IN $2,000.00 $18,000.00 1 Administration Costs MF $2,000.00 $18,000.00 1 C $2,000.00 $18,000.00 1 LI $450.00 $2,000.00 1 Non-Lavatory/Kitchen Faucets Irrigation Pools Wash Down Car Washing Toilets Urinals Lavatory Faucets Showers Dishwashers Clothes Washers Process Kitchen Spray Rinse Internal Leakage Baths Other $0 $0 End Use Savings Per Replacement % Savings/Acct Avg GPD/Acct R Irrigation 25.0% LI Irrigation 25.0%54.9 Markup Percentage 10% Description Provide a per square foot incentive to remove turf and replace with low water use plants or permeable hardscape. Landscape conversion could include conversion of turf to lower-water-using turf varieties. Rebate based on dollars per square foot removed, and capped at an upper limit for SF, MF and CII. External Leakage Outdoor Cooling CS $2,000.00 $18,000.00 1 $145,365 2023 Targets 2023 $126,709 $12,671 $139,380 12 1 2022 $124,117 $12,412 $136,529 2021 0 0 0 0 0 2022 100 100 27 2021 $0 2028 $140,998 $14,100 $155,098 2029 $144,143 $14,414 $158,557 2026 $135,005 $13,500 $148,505 2027 $137,953 $13,795 $151,748 2024 $129,385 $12,939 $142,324 2025 $132,150 $13,215 2032 $154,210 $15,421 $169,631 2033 $157,788 $15,779 $173,567 2030 $147,391 $14,739 $162,130 2031 $150,745 $15,075 $165,820 $17,331 $190,643 2034 $161,483 $16,148 $177,631 2035 $165,300 $16,530 $181,829 2038 $177,516 $17,752 $195,268 2039 $181,859 0 2024 100 28 12 1 0 2036 $169,241 $16,924 $186,165 2037 $173,312 0 2026 100 $18,186 $200,044 2040 $186,343 $18,634 $204,978 30 13 1 0 2025 100 29 13 1 0 2028 100 32 14 1 0 2027 100 31 14 1 0 2030 100 34 15 2 0 2029 100 33 15 2 0 2032 100 36 16 2 0 2031 100 35 16 2 0 2034 100 39 17 2 0 2033 100 38 17 2 0 2036 100 41 18 2 0 2035 100 40 18 2 2 0 2039 100 45 20 2 0 2038 100 44 20 2 0 2037 100 42 19 2 0 2040 100 47 21 2 149 2 151 2 153 2028 3 166 2030 3 168 3 170 3 173 2038 2 154 2 156 2 158 2 160 2 162 3 164 2033 0 0 0 2 141271110 0 0 0 0 0 Method: Units Method: Target Method: View:View Units Landscape Conversion or Turf Removal Rebate 357 City of Bozeman Water Conservation & Efficiency Plan 72 Capital Project – HE Fixture Installation in Gov't Bldg. #################### ## ## ## ## ## ## ## ## ## ## ## ## ## Comments • Utility Cost: Per "Facility Park Indoor" worksheet provided by City of Bozeman (9-22-2021), average number of toilets and urinals to be upgraded across facilities is ~4 toilets, and ~1 urinal. Per the Senior Center Retrofit Cost worksheet in the updated file (dated 11/23/2021), the project cost $9,359 for 15 toilets, 2 urinals, toilet seats, and installation material, labor, diagnostic fee and permit. Scaled cost to average number of toilets/urinals to be replaced comes out to $2,717. Rounded utility cost to $3,000 to account for addition of showerheads and faucets. • Admin Markup: 10% admin time for conservation staff to facilitate this measure (inventory, checking, etc.) Approx. 10 hours of water conservation technician staff time per project. • Customer Cost: No cost to customers. • End Use Water Savings: Savings based off of Water Savings from Senior Center Plumbing Fixture Retrofit Project (toilets, urinals, faucets) provided by the City of Bozeman. Percent change from pre- to post- retrofit was 41.44% savings. > Toilets: Assumes 25% of old toilets are high flow (3.5 gpf) and 75% are 1.6 gpf. All toilets getting replaced with 1.28 gpf. (25% of toilets have 63% savings and 75% of toilets have 20% savings, for total savings of 30%) > Urinals: Assumes 1.0 gpf urinals replaced with pint urinals. > Lavatory Faucets: Assumes 2.5 gpm faucets replaced with 0.5 gpm faucets. > Showerheads: Assumes 2.5 gpm showerheads replaced with 1.8 gpm showerheads. > Kitchen/Non-Lavatory faucets: Assumes 2.5 gpm faucets replaced with 1.0 gpm faucets. • Targets: Based on the "Facility Park Indoor" worksheet provided by City of Bozeman (9-22-2021), approximately 30 City Owned indoor sites to be retrofitted over a 10 year period. Can target 3 sites per year. 2039 4.314017 2040 4.314017 2036 4.314017 2037 4.314017 2038 4.314017 2033 3.882616 2034 4.314017 2035 4.314017 2030 2.588410 2031 3.019812 2032 3.451214 2027 1.294205 2028 1.725607 2029 2.157009 2024 0.000000 2025 0.431402 2026 0.862803 2021 0.000000 2022 0.000000 2023 0.000000 Water Savings Total Savings (afy) 2020 0.000000 2039 0 0 2040 0 0 2037 0 0 2038 0 0 2035 0 0 2036 0 0 2033 3 3 2034 3 3 2031 3 3 2032 3 3 2029 3 3 2030 3 3 2027 3 3 2028 3 3 2025 3 3 2026 3 3 2023 0 0 2024 0 0 0 0 2021 0 0 2022 0 0 2040 $0 $0 $0 Targets G Total 2020 2038 $0 $0 $0 2039 $0 $0 $0 2036 $0 $0 $0 2037 $0 $0 $0 2034 $9,000 $900 $9,900 2035 $0 $0 $0 2032 $9,000 $900 $9,900 2033 $9,000 $900 $9,900 2030 $9,000 $900 $9,900 2031 $9,000 $900 $9,900 2028 $9,000 $900 $9,900 2029 $9,000 $900 $9,900 2026 $9,000 $900 $9,900 2027 $9,000 $900 $9,900 2024 $0 $0 $0 2025 $9,000 $900 $9,900 2022 $0 $0 $0 2023 $0 $0 $0 2020 $0 $0 $0 2021 $0 $0 $0 Costs Fixture Costs Admin Costs Util Total G Non-Lavatory/Kitchen Faucets 60.0%36.9 Targets # of Accts Targeted/Yr.3 G Lavatory Faucets 80.0%43.3 G Showers 28.0%50.1 G Toilets 31.0%100.2 G Urinals 88.0%30.1 Utility $1,686 End Use Savings Per Replacement % Savings/Acct Avg GPD/Acct Benefit to Cost Ratio Utility 0.81 Community 0.95 Cost of Savings per Unit Volume ($/af) $79,816 Lifetime Costs - Present Value ($) Utility $83,620 Community $83,620 Results Average Water Savings (afy) 2.362438 Lifetime Savings - Present Value ($) Utility $67,522 Community Pools Wash Down Car Washing External Leakage Outdoor Cooling Kitchen Spray Rinse Internal Leakage Baths Other Non-Lavatory/Kitchen Faucets Irrigation Urinals Lavatory Faucets Dishwashers Clothes Washers Process GGSMSULINew_SFToilets End Uses RMFCCSINShowers Markup Percentage 10% Description Direct install high efficiency faucets, toilets, urinals and showerheads in City facilities. Customer Classes RMFCCSG $3,000.00 $0.00 1 Administration Costs Measure Life Permanent TRUE Fixture Cost per Device Utility Customer Fix/Acct Time Period First Year 2025 Last Year 2034 Measure Length 10 Abbr10 Category 2 Measure Type 1 Overview NameCapital Project - HE Fixture Installation in Gov't Bldg.INGGSMSULINew_SFMethod: Units Method: Target Method: View:View Units Capital Project -HE Fixture Installation in Gov't Bldg. 358 City of Bozeman Water Conservation & Efficiency Plan 73 School Building Retrofit #################### ## ## ## ## ## ## ## ## ## ## ## ## ## ## Overview NameSchool Building Retrofit INGGSMSULINew_SFAbbr11 CCSResults Average Water Savings (afy) Customer Classes RMFC $5,000.00 $5,000.00 1 Administration Costs Measure Life Permanent TRUE Fixture Cost per Device Time Period First Year 2030 Last Year 2040 Measure Length 11 Category Comments Utility Customer Fix/Acct End Uses RMFCCSINShowers Dishwashers 2 Measure Type 1 Markup Percentage 3% Description School retrofit program wherein school receives a grant to replace fixtures and upgrade irrigation systems. Wash Down Car Washing External Leakage Outdoor Cooling Kitchen Spray Rinse Internal Leakage Baths Other Non-Lavatory/Kitchen Faucets Irrigation 0.528181 Lifetime Savings - Present Value ($) Utility $14,264 Community Pools Urinals Lavatory Faucets Benefit to Cost Ratio Clothes Washers Process GGSMSULINew_SFToilets Utility 0.33 Community 0.22 Cost of Savings per Unit Volume ($/af) $19,049 Lifetime Costs - Present Value ($) Utility $43,372 Community $85,481 C Toilets 15.0%150.1 C Urinals 15.0%45.0 Utility $3,910 End Use Savings Per Replacement % Savings/Acct Avg GPD/Acct C Dishwashers 15.0%45.0 C Clothes Washers 15.0%112.6 C Lavatory Faucets 15.0%56.8 C Showers 15.0%67.6 C Internal Leakage 15.0%45.0 C Other 15.0%37.5 C Process 15.0%105.1 C Kitchen Spray Rinse 15.0%37.5 C Non-Lavatory/Kitchen Faucets 15.0%48.3 C Irrigation 15.0%242.4 C Cooling 15.0%46.6 2020 $0 $0 $0 2021 $0 $0 $0 Costs Fixture Costs Admin Costs Util Total 2021 0.000000 • Utility Cost: $5,000 utility cost assumes replacement of high use toilets and some irrigation system improvement (where applicable). • Admin Markup: Assumes 3-5 hours of staff time, at the water conservation technician's full burdened rate of $29.92/hr. This would include pre- and post- inspections and paperwork. • Customer Cost: Assumes cost of installation and remainder of devices. • End Use Water Savings: Savings similar to CII survey and incentive measures combined. • Targets: Per Public Schools file provided by City of Bozeman staff, there are 13 public schools in the service area. Assumes 1 school targeted per year. # of Accts Targeted/Yr.1 C External Leakage 15.0%21.7 Targets 2024 $0 $0 $0 2025 $0 $0 $0 2022 $0 $0 $0 2023 $0 $0 $0 2028 $0 $0 $0 2029 $0 $0 $0 2026 $0 $0 $0 2027 $0 $0 $0 2032 $5,000 $150 $5,150 2033 $5,000 $150 $5,150 2030 $5,000 $150 $5,150 2031 $5,000 $150 $5,150 $150 $5,150 2034 $5,000 $150 $5,150 2035 $5,000 $150 $5,150 2040 $5,000 $150 $5,150 Targets C Total 2020 2038 $5,000 $150 $5,150 2039 $5,000 $150 $5,150 2036 $5,000 $150 $5,150 2037 $5,000 2023 0 0 2024 0 0 0 0 2021 0 0 2022 0 0 2027 0 0 2028 0 0 2025 0 0 2026 0 0 2031 1 1 2032 1 1 2029 0 0 2030 1 1 2035 1 1 2036 1 1 2033 1 1 2034 1 1 2039 1 1 2040 1 1 2037 1 1 2038 1 1 2022 0.000000 2023 0.000000 Water Savings Total Savings (afy) 2020 0.000000 0.000000 2028 0.000000 2029 0.000000 2024 0.000000 2025 0.000000 2026 0.000000 2039 1.670091 2040 1.832783 2036 1.177993 2037 1.342734 2038 1.506753 2033 0.678948 2034 0.846153 2035 1.012482 2030 0.171412 2031 0.341651 2032 0.510804 2027 Method: Units Method: Target Method: View:View Units School Building Retrofit 359 City of Bozeman Water Conservation & Efficiency Plan 74 CII High Efficiency Washer Rebate #################### ## ## ## ## ## ## ## ## ## ## ## ## ## ## Abbr 12 Category 2 Measure Type 1 Overview Name CII High Efficiency Washer Rebate INGGSMSUResults Average Water Savings (afy) 3.659664 Lifetime Savings - Present Value ($)LINew_SFDescription Offer rebate for commercial grade clothes washers. Target high-use facilities such as laundromats, hotels, etc. Customer Classes RMFCCSC $500.00 $1,500.00 4 Administration Costs Measure Life Permanent TRUE Fixture Cost per Device Utility Customer Fix/Acct Time Period First Year End Uses RMFCCSINMarkup Percentage 3% 2028 Last Year 2037 Measure Length 10 Wash Down Car Washing External Leakage Outdoor Cooling Kitchen Spray Rinse Internal Leakage Baths Other Non-Lavatory/Kitchen Faucets Irrigation Utility $101,734 Community Pools Urinals Lavatory Faucets Showers Dishwashers Clothes Washers Process GGSMSULINew_SFToilets Benefit to Cost Ratio Utility 0.38 Community 0.17 Cost of Savings per Unit Volume ($/af) $177,152 Lifetime Costs - Present Value ($) Utility $270,166 Community $1,057,055 C Clothes Washers 45.0%112.6 Targets % of Accts Targeted/Yr.1.000% Utility $3,515 End Use Savings Per Replacement % Savings/Acct Avg GPD/Acct FALSE Costs Fixture CostsAdmin Costs Util Total Water Savings Comments • Utility Cost: Rebated value of $500 per washer. Up to 4 washers rebated per site to include laundromats in the service area. There are approx. 5. Assumes laundromats would get more than 4, and other sites 4 or less. • Admin Markup: Staff time to run program. Assumes ~2 hours per account rebate at conservation technician fully burdened rate of $29.92/hr. • Customer Cost: Commercial clothes washers cost between $900- $2,500. Customer cost assumes average cost of $2,000. Therefore the remainder of cost after $500 rebate is $1,500. • End Use Water Savings: Water savings between conventional and Energy Star machines is 45% from Energy Star commercial clothes washer website. https://www.energystar.gov/products/commercial_clot hes_washers • Targets: targeting 1% of CI accounts. 2020 $0 $0 $0 2021 $0 $0 $0 Only Affects New Accts 2024 $0 $0 $0 2025 $0 $0 $0 2022 $0 $0 $0 2023 $0 $0 $0 2028 $28,074 $842 $28,917 2029 $29,057 $872 $29,929 2026 $0 $0 $0 2027 $0 $0 $0 2032 $32,216 $966 $33,182 2033 $33,344 $1,000 $34,344 2030 $30,074 $902 $30,976 2031 $31,127 $934 $32,060 $1,148 $39,410 2034 $34,511 $1,035 $35,546 2035 $35,718 $1,072 $36,790 2040 $0 $0 $0 Targets C Total 2020 2038 $0 $0 $0 2039 $0 $0 $0 2036 $36,969 $1,109 $38,078 2037 $38,262 2023 0 0 2024 0 0 0 0 2021 0 0 2022 0 0 2027 0 0 2028 14 14 2025 0 0 2026 0 0 2031 16 16 2032 16 16 2029 15 15 2030 15 15 2035 18 18 2036 18 18 2033 17 17 2034 17 17 2039 0 0 2040 0 0 2037 19 19 2038 0 0 2022 0.000000 2023 0.000000 2024 0.000000 Total Savings (afy) 2020 0.000000 2021 0.000000 1.622464 2030 2.476530 2025 0.000000 2026 0.000000 2027 0.000000 2040 9.353202 2037 9.353202 2038 9.353202 2039 9.353202 2034 6.202364 2035 7.216726 2036 8.266592 2031 3.360489 2032 4.275385 2033 5.222304 2028 0.797280 2029 Method: Units Method: Target Method: View:View Units CII High Efficiency Washer Rebate 360 City of Bozeman Water Conservation & Efficiency Plan 75 Water Budget-Based Billing and Water Budgeting #################### ###### ###### ###### ###### ###### ###### ###### ###### ###### ###### ###### ###### ###### ###### 2040 16.0011672040$109,151 $7,641 $116,791 2040 100 47 72 218 2021 $0 $0 $0 2022 $0 $0 $0 Fixture Costs Abbr 13 Category 2 Measure Type 1 Overview Name Water Budget-Based Billing and Water Budgeting Customer Classes RMFLINew_SFCCSINGMeasure Life Permanent FALSE Years 8 Repeat FALSE Time Period First Year 2028 Last Year 2040 Measure Length 13 GSMSUAdministration Costs Markup Percentage 7% MF $500.00 $50.00 1 New_SF $500.00 $50.00 1 Fixture Cost per Device Utility Customer Fix/Acct R MSU$500.00 $50.00 1 LINew_SFToilets End Uses RMFCCSINResults Average Water Savings (afy) 6.518884 Lifetime Savings - Present Value ($) Utility $173,161 Community Pools Kitchen Spray Rinse Internal Leakage Utility Baths Other Non-Lavatory/Kitchen Faucets Irrigation Urinals Lavatory Faucets Showers Dishwashers Clothes Washers Process GGSBenefit to Cost Ratio Utility 0.17 Community 0.16 Cost of Savings per Unit Volume ($/af) $173,161 Lifetime Costs - Present Value ($) Utility $996,508 Community $1,089,640 R Irrigation 10.0%91.2 MF Irrigation 10.0%99.8 $7,279 End Use Savings Per Replacement % Savings/Acct Avg GPD/Acct Costs Targets Water Savings • Utility Cost: Water Budgeting software like Waterfluence at $50 per site. Assuming a five-year investment per site, unit cost is set at $500 per 10 year site monitoring fee. Monitoring fee is adjusted to account for accounts coming online over the program duration. • Admin Markup: ~1 hr. staff time per SF/MF/CII meter targeted to run program ($38/hr. is average burdened rate of Water Conservation Manager ($46.86/hr.) and Water Conservation Technician ($29.92/hr.)). • Customer Cost: Customer cost represents average cost to implement any water savings actions done by customers as a result of their budget. • End Use Water Savings: Using variance program and Aurora program estimates, on average, customers are 15% over budget or "expected" water use. Customers will become slightly more efficient on average due to the cost of being inefficient. • Targets: 1% of accounts targeted annually will have water savings % of Accts Targeted/Yr.1.000% Only Affects New Accts FALSE New_SF Irrigation 5.0%162.3 Targets Comments Wash Down Car Washing External Leakage Outdoor Cooling Description This measure would develop individualized monthly water budgets for all customers. Water budgets are linked to a rate schedule where rates per unit of water increase when a customer goes above their budget, or decreases if they are below their budget. Budgets are based on size of the irrigated area and average indoor use estimates. These rates have been shown to be effective in reducing landscape irrigation demand (AWWARF Reports). Would require rate study and capable billing software. Admin Costs Util Total 2020 $0 $0 $0 2025 $0 $0 $0 2026 $0 $0 $0 2023 $0 $0 $0 2024 $0 $0 $0 $85,443 2030 $82,122 $5,749 $87,871 2027 $0 $0 $0 2028 $77,654 $5,436 $83,090 2033 $89,367 $6,256 $95,623 2034 $91,937 R MF 2025 0 0 2028 100 32 2031 100 35 2034 100 39 2029 $79,853 $5,590 New_SF Total 2031 $84,462 $5,912 $90,375 2032 $86,877 $6,081 $92,958 2020 0 0 0 0 2021 0 0 0 0 2022 0 0 0 2039 $106,054 $7,424 $113,478 2038 $103,052 $7,214 $110,266 $6,436 $98,372 2037 $100,142 $7,010 $107,152 2035 $94,587 $6,621 $101,208 2036 $97,322 $6,813 $104,134 0 2023 0 0 0 0 2024 0 0 0 0 0 0 2026 0 0 0 0 2027 0 0 0 0 24 155 2029 100 33 27 160 2030 100 34 30 164 34 169 2032 100 36 38 174 2033 100 38 42 179 46 184 2035 100 40 50 189 2036 100 41 54 195 2037 100 42 58 200 2038 100 44 63 206 2039 100 45 67 212 2020 0.000000 2021 0.000000 2022 0.000000 2038 15.160808 2039 15.574452 2035 13.994360 2036 14.371144 2037 14.759835 2032 8.395526 2033 Total Savings (afy) 0.000000 2027 0.000000 2028 1.592137 2023 0.000000 2024 0.000000 2025 0.000000 2026 10.212063 2034 12.077822 2029 3.226405 2030 4.904136 2031 6.626705 Method: Units Method: Target Method: View:View Units Water Budget-Based Billing and Water Budgeting 361 City of Bozeman Water Conservation & Efficiency Plan 76 Efficient Fixture Giveaway #################### ########## ## ########## ########## ########## ########## ## ## ########## ######## ########## ########## ########## ######## ######## ######## ########## ## Abbr14 Category 2 Measure Type 1 Overview NameEfficient Fixture Giveaway INGGSMSULINew_SFResults Average Water Savings (afy) 15.363863 Lifetime Savings - Present Value ($) R $10.05 $15.00 1 MF $10.05 $15.00 4 Measure Life Permanent TRUE Fixture Cost per Device Utility Customer Fix/Acct Time Period First Year 2020 Last Year 2040 Measure Length 21 Markup Percentage 1% Description > Provide free 1.15 gpm (or lower) spray nozzles for commercial and possibly free installation for the rinse and clean operation in restaurants and other commercial kitchens. Thousands have been replaced in California going door to door; very cost-effective because saves hot water. > Utility would buy high efficiency showerheads and faucets, aerators in bulk and give them away at Utility office or community events. > Utility would provide free high efficiency fixtures for. This may include: HE showerheads, aerators, pre-rinse spray valves, soil moisture sensors, hose nozzles Customer Classes RMFCCSNew_SF $10.05 $15.00 1 Administration Costs C $35.00 $15.00 1 LI $10.05 $15.00 1 Comments End Uses RMFCCSINShowers Dishwashers Wash Down Car Washing External Leakage Outdoor Cooling Kitchen Spray Rinse Internal Leakage Baths Other Non-Lavatory/Kitchen Faucets Irrigation Utility $440,160 Community Pools Urinals Lavatory Faucets Benefit to Cost Ratio Clothes Washers Process GGSMSULINew_SFToilets Utility 21.28 Community 14.58 Cost of Savings per Unit Volume ($/af) $695,484 Lifetime Costs - Present Value ($) Utility $20,682 Community $47,689 R Lavatory Faucets 11.0%6.9 MF Lavatory Faucets 11.0%26.5 Utility $64 End Use Savings Per Replacement % Savings/Acct Avg GPD/Acct R Showers 40.0%19.8 MF Showers 40.0%75.7 C Lavatory Faucets 6.1%56.8 LI Lavatory Faucets 11.0%5.2 C Kitchen Spray Rinse 40.0%37.5 R Non-Lavatory/Kitchen Faucets 5.0%12.9 C Showers 40.0%67.6 LI Showers 40.0%14.9 LI Non-Lavatory/Kitchen Faucets 5.0%9.7 R Irrigation 5.0%91.2 MF Non-Lavatory/Kitchen Faucets 5.0%49.2 C Non-Lavatory/Kitchen Faucets 5.0%48.3 5.0%54.9 New_SF Lavatory Faucets 11.0%6.4 MF Irrigation 5.0%99.8 C Irrigation 5.0%242.4 FALSE Costs Fixture CostsAdmin Costs Util Total LI New_SF • Utility Cost: Based on the "Free Products" worksheet provided by City of Bozeman (9-22-2021), a Leak Detection Kit costs $12.05, a Summer Savings Tool Kit cost $9.65, a Shower Better Kit costs $4.23, and a Brush Better Kit costs $10.79. Per the breakdown of the Leak Detection Kit, faucet aerator costs $1.66. Utility Unit Cost is based on weighted average of kits. See "Free Products" sheet. Increased cost for COM and MSU to account for PRSV (~$25). 1.5 nozzles can be found per CII account per Tso & Koehler 2005 report "Pre- rinse Spray Valve Programs: How are they really doing?" • Admin Markup: Admin time for this measure is included in survey and outreach measures. • Customer Cost: Assumes minimal cost for installation. • End Use Water Savings: > Lavatory Faucets: SF/MF/LI: Assumes 2.2 gpm aerators are replaced with 1.2 gpm aerators. Assumes only 25% are installed. COM: Assumes 2.2 gpm aerators are replaced with 0.5 gpm. Fixture analysis in green section, 60% of lavatory commercial aerators are already at 0.5 gpm, but a remaining 32% are at 2.2 gpm. Therefore, it is assumed 32% of the savings is taken in and that only 25% of those are actually installed. > Kitchen Faucets: R, MF, LI, and COM assumes a 2.2 gpm aerator is replaced with a 1.8 aerator. Assumes only 25% are installed. > Showerheads: City gives away and "SWAP"s showerheads. They provide 1.5 gpm showerheads. Per the end uses in green section of model, majority of showerheads in service area are 2.5 gpm. Therefore assumed savings for showerheads is 40% with 100% installation rate. Assumes all are installed as part of the SWAP program. > City provides free "summer savings kit" which includes a hose spray nozzle, rain gauge, drip gauge, and soil moisture sensor. Assumes conservative savings from kit for irrigation. > NEW_SF: New homes would only be required to have the flow rates required by the state-adopted uniform plumbing code installed (1.6 gpf toilets, 2.5 gpm SH, 2.2 gpm faucets), so there would still be opportunity to see water savings and include participation from new SF homes. Therefore same savings applied as RES and LI. • Targets: based on the weighted average of what was given away in 2020 and 2021. Assumes the Sprinkler Kit was only given away to SF and LI accts in the weighted average, and all other kits were giveaways to SF, MF, and LI. See "Free Products" sheet. NEW_SF homes would only be required to have the flow rates required by the state-adopted uniform plumbing code installed (1.6 gpf toilets, 2.5 gpm SH, 2.2 gpm faucets), therefore there will still be an opportunity to see water savings and include participation from new SF homes. New_SF Irrigation 5.0%162.3 Targets % of Accts Targeted/Yr.0.360% New_SF Showers 40.0%18.2 New_SF Non-Lavatory/Kitchen Faucets 5.0%11.9 LI Irrigation 2020 $863 $9 $871 2021 $888 $9 $897 Only Affects New Accts Targets R MF C 2021 2.480736 2024 $971 $10 $981 2025 $1,001 $10 $1,011 2022 $915 $9 $924 2023 $943 $9 $952 2028 $1,094 $11 $1,105 2029 $1,128 $11 $1,139 2026 $1,031 $10 $1,041 2027 $1,062 $11 $1,073 $13 $1,285 2030 $1,162 $12 $1,174 2031 $1,198 $12 $1,210 2034 $1,311 $13 $1,324 2035 $1,352 Total 2020 36 9 4 1 0 49 2032 $1,234 $12 $1,247 2033 $1,272 51 2022 36 10 2040 $1,574 $16 $1,589 2039 $1,526 $15 $1,542 $14 $1,365 2038 $1,481 $15 $1,495 2036 $1,393 $14 $1,407 2037 $1,436 $14 $1,451 4 1 2 52 2021 36 9 4 1 1 54 2024 36 10 4 1 4 55 2023 36 10 4 1 3 57 2026 36 11 5 1 6 58 2025 36 11 5 1 5 60 2028 36 12 5 1 8 62 2027 36 11 5 1 7 63 2030 36 12 5 1 11 65 2029 36 12 5 1 10 67 2032 36 13 6 1 14 69 2031 36 13 6 1 12 71 2034 36 14 6 1 16 73 2033 36 14 6 1 15 75 2036 36 15 7 1 19 78 2035 36 14 6 1 18 80 2038 36 16 7 1 23 82 2037 36 15 7 1 21 85 2040 36 17 8 1 26 87 2039 36 16 7 1 24 2022 3.744795 2023 5.027730 Water Savings Total Savings (afy) 2020 1.233256 10.391793 2028 11.800216 2029 13.239242 2024 6.331790 2025 7.659182 2026 9.012078 2039 29.834935 2040 31.767587 2036 24.367005 2037 26.136956 2038 27.958833 2033 19.345973 2034 20.973774 2035 22.646700 2030 14.710776 2031 16.216731 2032 17.761043 2027 Method: Units Method: Target Method: View:View Units Efficient Fixture Giveaway 362 City of Bozeman Water Conservation & Efficiency Plan 77 Residential Efficiency Fixture Incentive Program #################### #### #### #### #### #### #### #### #### #### #### #### #### #### #### 2029 39.834222 2030 43.669487 2026 28.148752 2027 32.072920 2028 35.968410 2023 16.218966 2024 20.220139 2025 24.197059 2020 4.083300 2021 8.148925 2022 12.194739202210027126 2023 100 27 127 2024 100 28 128 2020 100 25 125 2021 100 26 125 R MF Total 2025 100 2030 100 34 134 2029 100 33 133 29 129 2028 100 32 132 2026 100 30 130 2027 100 31 131 2030 $16,645 $3,329 $19,974 2028 $16,407 $3,281 $19,688 2029 $16,524 $3,305 $19,829 $3,259 $19,552 2024 $15,973 $3,195 $19,168 2025 $16,077 $3,215 $19,292 2026 $16,183 $3,237 $19,420 2027 $16,293 $18,931 2023 $15,873 $3,175 $19,047 2020 $15,590 $3,118 $18,708 2021 $15,681 $3,136 $18,818 MF Clothes Washers 11.3%65.5 Targets Fixture CostsAdmin Costs Util Total • Utility Cost: > Toilets: The City issues different rebate amounts depending on the age of the toilet. $125/toilet installed prior to 1996 (3.5 gpf), $50/toilet installed after 1996 (1.6 gpf), and $25 for new construction (new in 2021). > Clothes Washers: $150 rebate for retrofits and $100 rebate for new construction. > See "Measure 15 Calcs" sheet. Utility cost is a weighted average of previous HET and HECW rebates. > Average SH rebate of $15, but historically there have been between 10 & 100 accounts participating in the showerhead rebate measure, so only half this cost is assumed per account targeted. • Admin Markup: Staff time to process rebates. • Customer Cost: Remaining cost of device • End Use Water Savings: > Toilets: Based on the historical toilet rebates of R and MF toilets in the last 5 years, R was 34% Post-1996, and MF was 64% Post-1996. Assumes pre-1996 rebates are a 3.5 gpf toilet being replaced by a 1.28 gpf toilet and post- 1996 toilets are 1.6 gpf toilets being replaced with a 1.28 gpf toilet. See "Measure 15 Calcs" sheet > Clothes Washers: According to their website, ENERGY STAR certified clothes washers use about 45% less water than regular washers (assumes 23 gallon per load is reduced to 13 gallon per load). Since only 1 of 4 MF units is expected to replace their washer, assume 25% of the 45% savings. > Showers: Historically there have been between 10 & 100 accounts participating in the showerhead rebate measure, so assume 1/2 the savings from replacing >2.5 gpm showerheads with < 1.75 gpm showerheads on all targeted accounts. • Targets: NEW_SF excluded from this measure as the new homes should already be equipped with efficient fixtures. Total Savings (afy) % of Accts Targeted/Yr.1.000% Only Affects New Accts FALSE Costs Water Savings R Showers 15.0%19.8 MF Showers 15.0%75.7 R Clothes Washers 45.0%17.1 R Toilets 49.0%25.3 MF Toilets 36.0%96.8 Utility $388 End Use Savings Per Replacement % Savings/Acct Avg GPD/Acct Pools Wash Down Car Washing External Leakage Outdoor Cooling Kitchen Spray Rinse Internal Leakage Baths Other Non-Lavatory/Kitchen Faucets Irrigation Process GGSMSULINew_SFToilets Utility $1,265,438 Community Urinals Lavatory Faucets Benefit to Cost Ratio Utility 3.59 Community 2.03 Cost of Savings per Unit Volume ($/af) $1,678,094 Lifetime Costs - Present Value ($) Utility $352,510 Community $824,633CCSINGGSMSU Showers Dishwashers Clothes Washers Administration Costs Markup Percentage 20% Description > Utility would provide various rebate incentives for the installation of high efficiency indoor plumbing fixtures. > Leak detection technology system that allows for remote shutoff with a smart phone interface. Target second homes that are vacant, which could leak for extensive periods while left unattended. > Provide a rebate or voucher for the installation of a high efficiency toilet (HET, Toilets flushing 1.28 gpf or less). Rebate amounts would reflect the incremental purchase cost and have been at least $80 (for up to 2 toilets). > Provide a rebate for efficient washing machines to single family homes and apartment complexes that have common laundry rooms. It is assumed that the rebates would remain consistent with relevant state and federal regulations (Department of Energy, Energy Star) and only offer the best available technology. > Provide a rebate to encourage homeowner to purchase an efficient dishwasher (meeting certain water efficiency standards, such as a limit on the gallons/load) when replacing an existing dishwasher. R $127.50 $200.00 1 MF $115.50 $200.00 1 Lifetime Savings - Present Value ($) Measure Life Permanent TRUE Fixture Cost per Device Utility Customer Fix/Acct Time Period First Year 2020 Last Year 2040 Measure Length 21 End Uses RMFCCSIN135 Abbr15 Category 2 Measure Type 1 Overview NameResidential Efficiency Fixture Incentive Program Customer Classes RMFLINew_SFResults Average Water Savings (afy) 43.313118 2031 47.473452 Comments 2022 $15,776 $3,155 2032 $16,898 $3,380 $20,278 100 36 136 2032 51.265478 2031 $16,770 $3,354 $20,124 Targets 2031 100 35 2040 $18,085 $3,617 $21,702 2032 2033 2036 2039 2036 $17,455 $3,491 $20,946 2037 $17,605 $3,521 $21,126 2038 $17,760 $3,552 $21,312 2033 $17,031 $3,406 $20,437 2034 100 39 138 2035 100 40 140 2039 $17,920 $3,584 $21,504 2034 $17,168 $3,434 $20,601 2035 $17,309 $3,462 $20,771 2040 100 47 146 2037 70.141070 2038 73.916425 2039 77.697105 2040 81.485201 2037 100 42 142 2038 100 44 143 2033 55.048408 2034 58.824934 2035 62.597612 2036 66.368879 100 45 145 100 41 141 100 38 137 Method: Units Method: Target Method: View:View Units Residential Efficiency Fixture Incentive Program 363 City of Bozeman Water Conservation & Efficiency Plan 78 Residential Water Use Surveys #################### ###### ###### ###### ###### ###### ###### ###### ###### ###### ###### ###### ###### ###### ###### CommentsSort of current measure. In 2021 offered sprinkler system assessments. No indoor surveys in 2021. Would not bring SHs, aerators etc. to sprinkler assessments. • Utility Cost: Assume SH, aerators, toilet dye tabs, and other water-saving devices distributed per site @ ~$10/site for "kit" materials. Kits given away at these surveys include leak detection kits and summer savings tool kits. • Admin Markup: Per 2021 staffing of a full time summer intern and partial dedicated staff time in summer, approx. 8 hrs./survey @ average combined rate of ~$23/hr. includes, prep, assessment time and follow-up. > Late May to Early Sept (assume 3 months) = ~12 weeks. Assumes 40 intern hours/week @ short term fully burdened rate of $16.23 and 2 FTE's 20 hrs./week @ water conservation technician fully burdened rate of $29.92. 960 hours/year for 116 surveys = 8 hours/survey including prep, assessment and follow-up. Approx. admin cost per survey is $191 based on rates. > Due to the increase in number of surveys (double than what is currently happening), City will need an increase of more staff. • Customer Cost: Minimal for device installation and assessment follow-up actions. • End Use Water Savings: Outdoor Savings: > Based on Bozeman data from 2018-2021 we found that the average home that participated in this program saved 1,776 gallons/week during peak season (July – Aug) through the implementation of the recommended watering schedule. This assumes that the participant adopted the recommended schedule. It does not include any water savings assumptions for other retrofits or repairs that were recommended Indoor savings assumes 25% of accounts install SH and aerators and use toilet dye tabs to reduce leaky toilets. > Assumes 2.2 gpm aerators are replaced with 1.2 gpm aerators. Assumes only 25% are installed. > City gives away and "SWAP"s showerheads. They provide 1.5 gpm showerheads. Per the end uses in the green section of model, the majority of showerheads in the service area are 2.5 gpm. Therefore, assumed savings for showerheads is 40%. Assumes 25% are installed. > New_SF: assumes similar savings as RES, however irrigation savings are reduced as they should already have efficient savings per landscape codes. Per Bozeman: "data show that new SF homes over-water landscapes, and these are the homeowners that generally need assistance from us." • Annual Target: Bozeman will increase their current target to ~200/yr. Assumes some sites would receive sprinkler assessment only, some indoor survey only, and some a combination. Per 4/12/2022 email from Bozeman, target 1.25% of accounts. • Other: Will roll indoor and outdoor together. • Additional Notes: As of 2021 two FTE's each spend 20 hours/week for sprinkler system assessments, plus a full time summer intern. Sprinkler assessments run May-Sept. Total performed: 2016 - 24, 2017 - 42, 2018 - 65, 2019 - 61, 2020 - 91, 2021 - 116. Popular program with waitlist - need more staff support. 2037 $4,627 $37,000 $41,627 2038 $4,767 $37,000 $41,767 2038 44.171046 2039 45.4906902039$4,912 $37,000 $41,912 2039 125 57 84 265 2038 125 55 78 258 2035 125 50 62 236 2034 10 2037 42.89315620371255373250 2034 2029 125 41 34 125 39 25 2028 125 2033 $4,110 $37,000 $41,110 2034 $4,233 $37,000 $41,233 2031 $3,874 $37,000 $40,874 2032 $3,990 $37,000 $40,990 2035 $4,360 $37,000 $41,360 39.298494 2035 40.457991 2031 36.039860 2032 37.090419 2033 38.176306 2028 33.083568 2029 34.038606 2030 35.023698 2025 30.388859 2026 31.259674 Total Savings (afy) 2020 5.609583 2021 11.362922 125 38 21 184 125 34 17.266048 2023 23.325090 2024 29.546285 2027 32.157586 2022 37 18 179 Costs 2025 125 2026 2023 2024 35 14 174 Targets 7 165 2020 125 31 0 156 2025 125 48 57 230 200 2021 125 32 3 160 169 125 2030 125 43 38 205 2027 40 30 189 194 Water Savings 2033 125 47 52 223 2031 125 44 43 211 2032 125 45 47 217 2022 125 33 R MF New_SF Total 2029 $3,652 $37,000 $40,652 2030 $3,761 $37,000 $40,761 2027 $3,444 $37,000 $40,444 2028 $3,547 $37,000 $40,547 $40,345 2024 $3,155 $37,000 $40,155 2021 $2,892 $37,000 $39,892 2022 $2,977 $37,000 $39,977 $3,248 $37,000 $40,248 2026 $3,345 $37,000 Fixture CostsAdmin Costs Util Total 2020 $2,810 $37,000 $39,810 2023 $3,065 $37,000 $40,065 New_SF Non-Lavatory/Kitchen Faucets 7.0%11.9 New_SF Irrigation 15.0%162.3 New_SF Lavatory Faucets 11.4%6.4 New_SF Showers 10.0%18.2FALSE New_SF External Leakage 50.0%13.7 Targets % of Accts Targeted/Yr.1.250% Only Affects New Accts 50.0%7.7 MF External Leakage 50.0%8.4 R Irrigation 25.0%91.2 MF Irrigation 20.0%99.8 R External Leakage R Non-Lavatory/Kitchen Faucets 7.0%12.9 MF Non-Lavatory/Kitchen Faucets 7.0%49.2 R Internal Leakage 1.0%14.1 MF Internal Leakage 1.0%53.9 R Showers 10.0%19.8 MF Showers 10.0%75.7 R Lavatory Faucets 11.4%6.9 MF Lavatory Faucets 11.4%26.5 $1,035 End Use Savings Per Replacement % Savings/Acct Avg GPD/Acct Benefit to Cost Ratio Utility 1.32 Community 1.39 Cost of Savings per Unit Volume ($/af) $1,043,723 Lifetime Costs - Present Value ($) Utility $719,661 Community $752,788 Results Average Water Savings (afy) 33.104240 Lifetime Savings - Present Value ($) Utility $953,503 Community Pools Wash Down Car Washing External Leakage Outdoor Cooling Kitchen Spray Rinse Internal Leakage Utility Baths Other Non-Lavatory/Kitchen Faucets Irrigation Urinals Lavatory Faucets Showers Dishwashers Clothes Washers Process GGSMSULINew_SFToilets LINew_SFEnd Uses RMFCCSINCCSINGGSMSUAnnual Admin Costs $37,000 Description Indoor and outdoor water surveys for SF and MF residential customers. Target those with high water use and provide a customized report to owner. Includes giveaway of efficient shower heads, aerators, toilet devices. This measure is combined with sprinkler assessments. MF $10.00 $5.00 5 New_SF $10.00 $5.00 1 Utility Customer Fix/Acct R $10.00 $5.00 1 Administration Costs ##### Time Period First Year 2020 Last Year 2040 Measure Length 21 Fixture Cost per Device 67 243 Abbr 16 Category 2 Measure Type 1 Overview Name Residential Water Use Surveys Customer Classes RMFMeasure Life Permanent ##### Years 5 Repeat 2040 46.8533052040$5,060 $37,000 $42,060 2040 125 58 90 273 2036 41.6558482036$4,492 $37,000 $41,492 2036 125 51 Method: Units Method: Target Method: View:View Units Residential Water Use Surveys 364 City of Bozeman Water Conservation & Efficiency Plan 79 Low Income Direct Installation Rebates and Leak Repair Assistance #################### ## ## ## ## ## ## ## ## ## ## ## ## ## ## Overview Name Low Income Direct Installation Rebates and Leak Repair Assistance INGGSMSULINew_SFResults Average Water Savings (afy) Time Period First Year 2025 Last Year 2040 Measure Length 16 Abbr 17 Category 2 Measure Type 1 Markup Percentage 33% Description Provide direct installation rebate program for toilets, high incentive amount for clothes washers, and leak repair assistance. Customer leaks can go uncorrected at properties where owners are least able to pay costs of repair. These programs may require that customer leaks be repaired, but either subsidize part of the repair and/or pay the cost with revolving funds that are paid back with water bills over time. Program will also include an option to replace inefficient plumbing fixtures at low- income residences. Customer Classes RMFCCSLI $360.00 $0.00 1 Administration Costs Measure Life Permanent TRUE Fixture Cost per Device Utility Customer Fix/Acct End Uses RMFCCSINDishwashers Clothes Washers Process GGSMSULINew_SFToilets Comments Outdoor Cooling 1.825352 Lifetime Savings - Present Value ($) Utility $50,685 Community Pools Wash Down Car Washing External Leakage Kitchen Spray Rinse Internal Leakage Baths Other Non-Lavatory/Kitchen Faucets Irrigation Urinals Lavatory Faucets Showers Benefit to Cost Ratio Utility 0.72 Community 1.02 Cost of Savings per Unit Volume ($/af) $71,329 Lifetime Costs - Present Value ($) Utility $70,151 Community $70,151 LI Toilets 20.0%19.1 LI Lavatory Faucets 45.5%5.2 Utility $1,830 End Use Savings Per Replacement % Savings/Acct Avg GPD/Acct LI Clothes Washers 5.0%12.9 LI Internal Leakage 20.0%10.6 LI Showers 40.0%14.9 LI Dishwashers 5.0%0.9 LI Non-Lavatory/Kitchen Faucets 18.0%9.7 LI Irrigation 10.0%54.9 LI Baths 5.0%2.0 LI Other 5.0%3.4 Water Savings • Utility Cost: cost of 1 toilet (~$300), 1 SH (~$15), 4 aerators per unit ($1.5 each = $6 total) as well as site survey and fixture installation by contractor. • Admin Markup: staff time to administer measure and conduct water use survey. Assumes approx. 4 hours of staff time at the fully burdened water conservation technician rate of $29.92/hr. • Customer Cost: none. City would work with the customer to differ upfront costs of remaining cost of device. • End Use Water Savings: Assumes site survey and upgrade of fixtures to HE: toilet (1.6 gpf replaced with a 1.28), SH (2.5 gpm replaced with a 1.5 gpm)and aerators (Lavatory 2.2 gpm replaced with a 1.2 gpm; Kitchen 2.2 gpm replaced with 1.8 gpm). • Targets: 5% of LI per year yields 75% of all LI over the measure time period. LI Car Washing 10.0%2.6 LI External Leakage 10.0%4.6 LI Pools 10.0%1.3 LI Wash Down 10.0%2.6 Targets % of Accts Targeted/Yr.5.000% Only Affects New Accts FALSE Targets LI Total Total Savings (afy) 2021 $0 $0 $0 2022 $0 $0 $0 Fixture CostsAdmin Costs Util Total 2020 $0 $0 $0 0 2020 0.000000 2025 $3,260 $1,076 $4,335 2026 $3,363 $1,110 $4,472 2023 $0 $0 $0 2024 $0 $0 $0 2029 $3,692 $1,218 $4,910 2030 $3,808 $1,257 $5,065 2027 $3,469 $1,145 $4,614 2028 $3,578 $1,181 $4,759 $4,449 $1,468 $5,917 2036 $4,590 $1,515 $6,104 $3,929 $1,296 $5,225 2032 $4,053 $1,337 $5,390 2023 0 0 2020 0 0 2021 0 0 2022 0 0.000000 2025 0.239469 2026 0.486504 2021 0.000000 2022 0.000000 2023 0.000000 2036 3.429602 2037 3.777446 2033 2.448705 2034 2.765553 2035 3.092413 2030 1.555216 2031 1.843830 2032 2.141563 2027 0.741346 2028 1.004241 2029 1.275444 2024 Costs 2038 $4,884 $1,612 $6,496 2039 $5,039 $1,663 $6,701 2033 $4,181 $1,380 $5,560 2034 $4,313 $1,423 $5,736 2031 2037 $4,735 $1,562 $6,297 2035 13 13 2031 11 11 2028 10 10 2029 10 10 2032 11 11 2036 13 13 2034 12 12 2035 12 12 2024 0 0 2025 9 9 2026 2038 4.13628120381414 9 9 11 2033 12 12 2030 11 2027 10 10 2037 2039 4.506456 2040 4.8883292040$5,198 $1,715 $6,913 2040 14 14 2039 14 14 Method: Units Method: Target Method: View:View Units Low Income Direct Installation Rebates and Leak Repair Assistance 365 City of Bozeman Water Conservation & Efficiency Plan 80 Public Education #################### ###### ###### ###### ###### ###### ###### ###### ###### ###### ###### ###### ###### ###### ###### Utilize a range of printed and digital materials to raise awareness of conservation measures available to customers, including incentive programs offered by the Utility. This can include newsletters, bill stuffers, water smart planting guides, brochures/rack cards, newspaper ads, signs at retailers, radio ads, boosted social media posts and accompanying imagery. Provide a variety of conservation information on the city web site, and production of videos. Conduct presentations at various community venues, MSU, local public schools. Have booths at community events such as famers markets, Catapalooza, etc. Also consider a focused program initiative with focused action like: “Take Control of your Controller” Campaign for a focused social media based campaign. This measure would also include educational resources that are provided for free at events (shower timers, kids activity books, kids pencils). Contract services to support public educational initiatives such as working with G3 and MOSS are also included. Abbr 18 Category 2 Measure Type 1 Overview Name Public Education Customer Classes RMFLINew_SFMeasure Life Permanent ##### Years 2 Repeat ##### Time Period First Year 2020 Last Year 2040 Measure Length 21 Fixture Cost per Device Utility Customer Fix/Acct R $14.00 $5.00 1 Administration Costs Markup Percentage 10% Description MF $14.00 $5.00 1 New_SF $14.00 $5.00 1 End Uses RMFCCSINCCSINGGSMSUDishwashers Clothes Washers Process GGSMSULINew_SFToilets Comments Results Average Water Savings (afy) 104.446140 Lifetime Savings - Present Value ($) Utility $3,008,536 Community Pools Wash Down Car Washing External Leakage Outdoor Cooling Kitchen Spray Rinse Internal Leakage Baths Other Non-Lavatory/Kitchen Faucets Irrigation Urinals Lavatory Faucets Showers Benefit to Cost Ratio Utility 1.35 Community 1.06 Cost of Savings per Unit Volume ($/af) $3,122,408 Lifetime Costs - Present Value ($) Utility $2,227,983 Community $2,951,354 R Toilets 0.3%25.3 MF Toilets 0.3%96.8 Utility $1,016 End Use Savings Per Replacement % Savings/Acct Avg GPD/Acct R Showers 0.3%19.8 MF Showers 0.3%75.7 R Lavatory Faucets 0.3%6.9 MF Lavatory Faucets 0.3%26.5 R Clothes Washers 0.3%17.1 MF Clothes Washers 0.3%65.5 R Dishwashers 0.3%1.2 MF Dishwashers 0.3%4.8 R Baths 0.3%2.7 MF Baths 0.3%10.2 R Internal Leakage 0.3%14.1 MF Internal Leakage 0.3%53.9 R Non-Lavatory/Kitchen Faucets 0.3%12.9 MF Non-Lavatory/Kitchen Faucets 0.3%49.2 R Other 0.3%4.5 MF Other 0.3%17.0 R Pools 0.3%2.2 MF Pools 0.3%2.4 R Irrigation 5.0%91.2 MF Irrigation 5.0%99.8 R Car Washing 0.3%4.4 MF Car Washing 0.3%4.8 R Wash Down 0.3%4.4 MF Wash Down 0.3%4.8 New_SF Toilets 0.3%23.3 New_SF Lavatory Faucets 0.3%6.4 R External Leakage 0.3%7.7 MF External Leakage 0.3%8.4 New_SF Clothes Washers 0.3%15.8 New_SF Internal Leakage 0.3%13.0 New_SF Showers 0.3%18.2 New_SF Dishwashers 0.3%1.2 New_SF Non-Lavatory/Kitchen Faucets 0.3%11.9 New_SF Irrigation 5.0%162.3 New_SF Baths 0.3%2.5 New_SF Other 0.3%4.1 New_SF Car Washing 0.3%7.8 New_SF External Leakage 0.3%13.7 New_SF Pools 0.3%3.9 New_SF Wash Down 0.3%7.8 Costs Fixture CostsAdmin Costs Util Total Targets % of Accts Targeted/Yr.50.000% Only Affects New Accts FALSE Targets R MF New_SF Water Savings Total Savings (afy) 2022 $92,125 $9,212 $101,337 2023 $94,680 $9,468 $104,147 2020 $87,248 $8,725 $95,973 2021 $89,649 $8,965 $98,613 2026 $102,838 $10,284 $113,122 2027 $105,731 $10,573 $116,304 2024 $97,315 $9,731 $107,046 2025 $100,033 $10,003 $110,037 2030 $114,971 $11,497 $126,468 2031 $118,247 $11,825 $130,072 2028 $108,716 $10,872 $119,587 2029 $111,795 $11,179 $122,974 2034 $128,712 $12,871 $141,583 2035 $132,422 Total 2020 4,980 1,252 1 6,232 2032 $121,628 $12,163 $133,790 2033 $125,114 $12,511 $137,626 2021 4,980 1,291 132 2040 $152,811 $15,281 $168,092 2039 $148,476 $14,848 $163,323 $13,242 $145,664 2038 $144,273 $14,427 $158,700 2036 $136,250 $13,625 $149,875 2037 $140,199 $14,020 $154,219 6,403 2022 4,980 1,332 269 6,580 2023 4,980 1,374 409 6,763 2024 4,980 1,417 554 6,951 2025 4,980 1,462 703 7,145 2026 4,980 1,508 857 7,346 2027 4,980 1,556 1,016 7,552 2028 4,980 1,605 1,180 7,765 2029 4,980 1,656 1,349 7,985 2030 4,980 1,708 1,524 8,212 2031 4,980 1,762 1,704 8,446 2032 4,980 1,818 1,890 8,688 2033 4,980 1,875 2,081 8,937 2034 4,980 1,935 2,279 9,194 2035 4,980 1,996 2,483 9,459 2036 4,980 2,059 2,693 9,732 2037 4,980 2,124 2,910 10,014 2038 4,980 2,191 3,134 10,305 2039 4,980 2,260 3,365 10,605 2040 4,980 2,332 3,603 10,915 2021 72.783780 2022 75.819066 2023 78.950003 2039 144.866436 2040 150.185072 2036 129.873244 2037 134.715379 2038 139.711517 2033 116.225298 2034 • Utility Cost: $75K/yr. for advertising and marketing + $9K/yr. for green gardening classes for residents by a contractor + $7K for MOSS Project WET + $1k for public events and presentations for a total of approx. $92k/yr. • Admin Markup: staff time to support classes, marketing, etc. Approximately 235 hours annually. Admin cost assumes average of fully burden rate for water conservation manager ($46.86/hr.). and water conservation technician($29.92/hr.) for an average of $38.39/hr. The annual admin cost comes out to ~$9,022/yr. • Customer Cost: some since there will be green landscaping implementation costs by those customers who attend the green gardening class. • End Use Water Savings: Public info water savings range is 0.1%-0.5% on each end use. Assumed the average of 0.25% with higher on outdoor since the green gardening classes will result in higher savings for class attendees. Since there is higher targeted outdoor education, higher irrigation savings. • Targets: 50% of residential accounts per yr. 120.632612 2035 125.180482 2030 103.805388 2031 107.815681 2032 111.954342 2020 35.655199 92.492107 2028 96.147348 2029 99.917211 2024 82.179664 2025 85.511210 2026 88.947894 2027 Method: Units Method: Target Method: View:View Units Public Education 366 City of Bozeman Water Conservation & Efficiency Plan 81 Contractor Efficient Outdoor Use Education and Training Programs #################### ########## #### ########## ########## ########## ########## #### #### ########## ###### ########## ########## ########## ###### ###### ###### ########## #### R Irrigation 10.0%91.2 New_SF Irrigation 10.0%162.3 Targets 10.0%242.4 CS Irrigation 10.0%537.9 Cost of Savings per Unit Volume ($/af) Utility $103 End Use Savings Per Replacement % Savings/Acct Avg GPD/Acct MF Irrigation 10.0% 2036 71.570233 2037 74.276569 2038 77.070150 2039 79.953794 2040 82.930408 2031 59.254646 2032 61.564023 2033 63.947828 2034 66.408465 2035 68.948413 2026 48.745231 2027 50.715954 2028 52.750174 2029 54.849941 2030 57.017371 2021 16.908606 2022 25.894350 2023 35.249646 2024 44.986399 2025 46.836020 86 9 228 1,015 89 9 248 1,045 92 10 269 1,075 75 8 152 904 81 9 189 958 83 9 208 986 78 8 170 931 2025 498 146 63 7 70 785 66 7 86 807 2023 498 137 59 6 41 742 2024 498 142 61 6 55 763 2021 498 129 55 6 13 701 2022 498 133 57 6 27 721 2024 $4,500 $1,344 $5,844 2025 $4,629 $1,344 $5,973 Targets R MF C CS New_SF Total 2020 498 125 53 6 0 682 $5,482 2022 $4,255 $1,344 $5,599 2023 $4,376 $1,344 $5,720 Costs Fixture CostsAdmin Costs Util Total 2020 $4,025 $1,344 $5,369 Water Savings Total Savings (afy) 2020 8.280880 % of Accts Targeted/Yr.5.000% Only Affects New Accts FALSE Irrigation Pools Wash Down Car Washing External Leakage Outdoor Cooling 99.8 Results Average Water Savings (afy) 54.674243 Lifetime Savings - Present Value ($) Utility $1,553,720 Community $1,553,720 Community $117,749 Benefit to Cost Ratio Utility 13.20 Community 13.20 Showers Dishwashers Clothes Washers Process Kitchen Spray Rinse Internal Leakage Baths Other Non-Lavatory/Kitchen Faucets Overview Contractor Efficient Outdoor Use Education and Training Programs 19 2 1 Fixture Cost per Device CS $5.90 $0.00 1 Customer Classes INGGSMSULINew_SFEnd Uses ING$1,344 $6,105 2026 498 151 Abbr Category Measure Type Utility Customer Fix/Acct R $5.90 $0.00 1 MF $5.90 $0.00 1 C $5.90 Urinals Lavatory Faucets Name Measure Life Permanent ##### Years 5 Repeat ##### Time Period First Year 2020 Last Year 2040 Measure Length 21 GSMSULINew_SFLifetime Costs - Present Value ($) Utility $117,749 $0.00 1 New_SF $5.90 $0.00 1 Administration Costs Annual Admin Costs $1,344 CCSCCSRMFToilets RMFC Irrigation Comments 2027 $4,898 $1,344 $6,242 2028 $5,040 $1,344 $6,384 498 1562027 2028 498 161 • Utility Cost: City hosts 1 class per year, and costs approx. $4,000 to host one class. Additionally City pays $500 to QWEL annually. > Utility cost per fixture is scaled to be utility fixture cost * targeted accounts, therefore the annual cost is ~$4,500 (Class cost + QWEL cost) • Admin Markup: Admin time includes 20 hours for the class, plus another 15 hours for class outreach, organization, etc. Assumes an average fully burdened rate for water conservation manager ($46.86/hr.) and water conservation technician($29.92/hr.) for an average of $38.39/hr. @ 35 hours = $1,344 • Customer Cost: No cost to customer. • End Use Water Savings: 10-15% savings since this is a participatory education measure. It might be higher. Additional savings will be captured under rebate measures, assuming contractor participation in those measures. • Targets: Assumes water savings from the educated contractors would occur in large landscape sites, such as HOAs/Multifamily Properties and Commercial Properties. Would like to reach 30 contractors annually. Assumes the 30 contractors affects 5% SF, New_SF, MF and CII Accounts annually. 2021 $4,138 $1,344 Description Utility would offer, organize and sponsor a series of educational workshops or other means for educating landscapers and contractors in efficient landscaping and irrigation principals. Utilize guest speakers, native demonstration gardens, incentives, such as a nursery plant coupon. Classes such as Irrigation Association classes/certifications, QWEL, etc. 2026 $4,761 2029 $5,185 $1,344 $6,529 2030 $5,336 $1,344 $6,680 2029 498 166 68 7 102 830 70 7 118 854 73 8 135 879 2039 $6,926 $1,344 $8,270 2040 $7,132 $1,344 $8,476 2037 $6,533 $1,344 $7,877 2038 $6,726 $1,344 $8,070 2035 $6,163 $1,344 $7,507 2036 $6,345 $1,344 $7,689 2033 $5,817 $1,344 $7,161 2034 $5,987 $1,344 $7,331 2031 $5,491 $1,344 $6,835 2032 $5,651 $1,344 $6,995 498 2033 498 188 2034 193 2030 498 171 2031 498 176 2032 498 182 2035 498 200 2036 498 206 2039 498 2037 498 2038 498 106 11 360 1,2092040498233 226 212 219 96 10 291 1,107 1,140 102 11 337 1,174 99 10 313 Method: Units Method: Target Method: View:View Units Contractor Efficient Outdoor Use Education and Training Programs 367 City of Bozeman Water Conservation & Efficiency Plan 82 Xeriscape Demonstration Gardens #################### #### #### #### #### #### #### #### #### #### #### #### #### #### #### Comments • Utility Cost: One project every 5 years, which is approx. $75k/project for design and infrastructure. Museum garden project cost on the conservation budget is $25k. Assumes similar utility cost. Since the project is assumed every 5 years, annual cost is ~$5,000. • Admin Markup: minimal admin time. • Customer Cost: assumes some cost to update landscaping. • End Use Water Savings: Savings represent irrigation savings for those participants who take action by replacing turf with xeriscape or replacing irrigation equipment. Conservative value as it is an estimate on who would be inspired. Assumes NEW_SF accounts would also be exposed, but with half the savings as they should already have efficient landscaping if the landscape ordinance is adopted. • Targets: Per Bozeman staff, there are currently ~ 50,000 annual Bozeman residents visiting the museum garden each year. Assuming 4 people per household, this would be approx. 12,500 residential accounts visiting. Assuming in a future setting less people will be exposed to the garden, as the gardens would be standalone and not required to walkthrough to access a museum. Assuming 50% would be exposed in new gardens, so 6,250 accounts. Assume 5% of these visitors (exposed accounts) would take some sort of action which would be ~300 accounts. Including NEW_SF, but with half the savings assumption as existing accounts. 2039 23.235065 2035 20.970610 2036 21.510585 2037 22.067624 2032 19.447915 2033 19.939773 2034 20.447175 2029 18.060907 2030 18.508936 2031 18.971123 2026 2028 17.626602 2023 12.661405 2024 16.018406 2025 16.401892 2038 22.642265 6.182115 2022 9.383448 2039 299 202 501 2038 299 188 487 137 436 2031 299 102 401 2032 299 113 412 16.797496 2027 17.205601 2029 299 81 380 2030 299 91 390 2027 299 61 360 2028 Water Savings Total Savings (afy) 2037 299 175 473 2035 299 149 448 2036 299 162 460 2033 299 125 424 2034 299 2020 3.055057 2021 299 71 370 2025 299 42 341 2026 299 51 350 2023 299 25 323 2024 299 33 332 299 16 315 R New_SF Total 2020 299 0 299 2039 $8,011 $401 $8,412 $339 $7,118 2034 $6,969 $348 $7,317 2031 $6,417 $321 $6,738 2032 $6,595 Targets 2037 $7,575 $379 $7,954 2038 $7,790 $389 $8,179 2035 $7,164 $358 $7,523 2036 $7,366 2021 299 8 307 2022 $368 $7,735 2033 $6,779 $330 $6,925 2029 $6,076 $304 $6,380 2030 $6,244 $312 $6,556 2027 $5,756 $288 $6,044 2028 $5,914 $296 $6,210 2025 $5,456 $273 $5,729 2026 $5,604 $280 $5,884 $5,173 $259 $5,432 2024 $5,312 $266 $5,578 2021 $4,908 $245 $5,153 2022 $5,039 $252 $5,290 Targets % of Accts Targeted/Yr.3.000% Only Affects New Accts FALSE R Irrigation 10.0%91.2 New_SF Irrigation 5.0%162.3 $316 End Use Savings Per Replacement % Savings/Acct Avg GPD/Acct Benefit to Cost Ratio Utility 4.31 Community 0.62 Cost of Savings per Unit Volume ($/af) $497,501 Lifetime Costs - Present Value ($) Utility $115,505 Community $803,036 Results Average Water Savings (afy) 17.380029 Lifetime Savings - Present Value ($) Utility $497,501 Community Pools Wash Down Car Washing External Leakage Outdoor Cooling Kitchen Spray Rinse Internal Leakage Utility Baths Other Non-Lavatory/Kitchen Faucets Irrigation Urinals Lavatory Faucets Showers Dishwashers Clothes Washers Process GGSMSULINew_SFToilets LINew_SFEnd Uses RMFCCSINMarkup Percentage 5% Description Provide additional demonstration gardens showcasing drought tolerant landscaping and efficient irrigation so that the community has local resources available to see these products/plants. Customer Classes RMFCCSNew_SF $16.00 $100.00 1 Administration Costs Fixture Cost per Device Utility Customer Fix/Acct R $16.00 $100.00 1 Measure Life Permanent ##### Years 5 Repeat ##### Time Period First Year 2020 Last Year 2040 Measure Length 21 Abbr 20 Category 2 Measure Type 1 Overview Name Xeriscape Demonstration Gardens INGGSMSU2040 23.8465982040$8,240 $412 $8,652 2040 299 216 515 Fixture Costs Admin Costs Util Total 2020 $4,781 $239 $5,020 Costs 2023 Method: Units Method: Target Method: View:View Units Xeriscape Demonstration Gardens 368 City of Bozeman Water Conservation & Efficiency Plan 83 Require HE Toilets, Showerheads, Faucets, Urinals in New Development #################### ############## ######## ############## ############## ############## ############## #### ###### ############## ###### ############## ############## ############## ######## ###### ###### ############## ######## Name Overview 2 1 Customer Classes MFCCSINGGSMSULINew_SFFirst Year 2040 Last Year 2040 Measure Length 1 Abbr Category Measure Type Markup Percentage 10% Description Require developers to install high-efficient toilets, lavatory faucets, kitchen faucets, and showerheads. IAPMO Green Building Supplemental Code is 1.5 gpm for residential lavatory faucets, 0.5 gpm for non-residential lavatory faucets, 1.8 gpm for kitchen faucets and 2.0 gpm for showerheads, 1.28 gpf for toilets, 0.125 gpf for urinals. MF $9.60 $250.00 3 C $38.39 $300.00 3 New_SF $9.60 $250.00 1 MSU $38.39 $300.00 3 LI $9.60 RRRequire HE Toilets, Showerheads, Faucets, Urinals in New Development 21 IN $38.39 $300.00 3 G $38.39 $300.00 3 Measure Life Permanent TRUE Utility Customer Fix/Acct Time Period Fixture Cost per Device End Uses 2022 $0 $0 $0 2023 $0 $0 $0 $250.00 1 2020 $0 $0 $0 2021 $0 $0 $0 Fixture CostsAdmin Costs Util Total Administration Costs 2026 $0 $0 $0 2027 $0 $0 $0 2024 $0 $0 $0 2025 $0 $0 $0 $0 2028 $0 $0 $0 2029 $0 $0 $0 2034 $0 $0 $0 2035 2022 2025 2031 2037 $0 $0 2030 $0 $0 $0 2031 $0 $0 $0 2032 $0 $0 $0 2033 2040 $17,482 $1,748 $19,230 2039 $0 $0 $0 $0 $0$0 2038 $0 $0 $0 2036 $0 $0 $0 2037 $0 $0 $0 0 0 2021 0 0 MF C 2020 0 0 0 0 2024 0 0 2023 0 0 2028 0 0 2027 0 0 2026 0 0 0 0 2030 0 0 2029 0 0 2034 0 0 2033 0 0 2032 0 0 0 0 2036 0 0 2035 0 0 2040 143 72 2039 0 0 2038 0 0 IN G MSU LI New_SF Total 0 0 0 0 0 0MFCCSINGGSMSULINew_SFToilets Urinals Lavatory Faucets Showers Dishwashers Clothes Washers Process Kitchen Spray Rinse Internal Leakage Baths Other Non-Lavatory/Kitchen Faucets Irrigation Pools Wash Down Car Washing External Leakage Outdoor Cooling Comments • Utility Cost: Represents random inspections by utility staff to ensure validity of code implementation. Assuming 1 hour for single family and 2 for MF/CII on average per site (door to door). Since only a sample will be inspected, actual utility time represents 15 minutes for SF and 1 hour for MF/CII. Assume a typical unit has 2 toilets, 1 showerhead, 2 bath aerators, and 1 kitchen aerator replaced as needed. Non-residential units are assumed to have 1 urinal. Assume multiple units per non-SF account. Average hourly rate of $38.39 is used. This is an average of the water conservation manager fully burdened rate of $46.86 and the water conservation technician fully burdened rate of $29.92 • Admin Markup: represents additional staff time to run measure (i.e. scheduling, coordinating with planning, etc.) • Customer Cost: Represents any fixture cost to comply with standards. CII cost accounts for urinals as well. Cost is the difference in standard vs. efficient devices. • End Use Water Savings: Savings from this code measure assume 2.2 gpm faucets, 2.5 showerheads, 1.6 gpf toilets and 1.0 gpf urinals are replaced with 1.2 gpm bathroom aerators, 1.8 gpm kitchen aerators, 1.8 gpm showerheads, 1.28 gpf toilets, and 0.125 gpf urinals. • Targets: 100% of new accts (aka new development). Regular SF not selected, as all new SF growth is in NEW_SF category. Results Average Water Savings (afy) 1.278431 Lifetime Savings - Present Value ($) Utility $32,967 Community $42,766 Lifetime Costs - Present Value ($) Utility $13,440 Community $220,684 Benefit to Cost Ratio Utility 2.45 Community 0.19 Cost of Savings per Unit Volume ($/af) Utility $501 End Use Savings Per Replacement % Savings/Acct Avg GPD/Acct MF Toilets 20.0%96.8 C Toilets 20.0%150.1 IN Toilets 20.0%6,116.1 C Urinals 87.5%45.0 IN Urinals 87.5%2,446.4 MF Lavatory Faucets 45.5%26.5 C Lavatory Faucets 45.5%56.8 49.2 C Non-Lavatory/Kitchen Faucets 18.2%48.3 IN Lavatory Faucets 45.5%3,082.5 MF Showers 28.0%75.7 C Showers 28.0%67.6 IN Showers 28.0%1,223.2 MF Non-Lavatory/Kitchen Faucets 18.2% TargetsCosts New_SF Showers 28.0%18.2 New_SF Non-Lavatory/Kitchen Faucets 18.2%11.9 43.3 MSU Lavatory Faucets 45.5%1,212.8 LI Lavatory Faucets 45.5%5.2 G Showers 28.0%50.1 MSU Showers 28.0%1,403.7 LI Showers 28.0% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2029 0.000000 2020 0.000000 2021 0.000000 2022 0.000000 2023 0.000000 2024 0.000000 2028 0.000000 G Urinals 87.5%30.1 MSU Urinals 87.5%842.2 G Lavatory Faucets 45.5% 2025 0.000000 Total Savings (afy) Water Savings Only Affects New Accts TRUE 14.9 G Non-Lavatory/Kitchen Faucets 18.2%36.9 MSU Non-Lavatory/Kitchen Faucets 18.2%1,033.1 LI Non-Lavatory/Kitchen Faucets G Toilets 20.0%100.2 MSU Toilets 20.0%2,807.3 LI Toilets 20.0%19.1 IN Non-Lavatory/Kitchen Faucets 18.2%2,625.8 New_SF Toilets 20.0%23.3 New_SF Lavatory Faucets 45.5%6.4 18.2%9.7 Targets % of Accts Targeted/Yr.100.000% 0 0 0 0 0 0 2033 0.000000 2030 0.000000 2031 0.000000 2032 0.000000 2026 0.000000 2027 0.000000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2034 0.000000 2035 0.000000 2036 0.000000 2037 0.000000 0 3 1 9 476 704 2038 0.000000 2039 0.000000 2040 26.847044 0 0 0 0 Method: Units Method: Target Method: View:View Units Require HE Toilets, Showerheads, Faucets, Urinals in New Development 369 City of Bozeman Water Conservation & Efficiency Plan 84 Fixture Retrofit on Resale or Name Change on Water Account #################### #### #### #### #### #### #### #### #### #### #### #### #### #### #### 2039 0.000000 2035 0.000000 2036 0.000000 2037 0.000000 2032 0.000000 2033 0.000000 2034 0.000000 2029 0.000000 2030 0.000000 2031 0.000000 2026 2028 0.000000 2023 0.000000 2024 0.000000 2025 0.000000 2038 0.000000 0.000000 2022 0.000000 2039 0 0 0 2038 0 0 0 0 0 2031 0 0 0 2032 0 0 0 0.000000 2027 0.000000 2029 0 0 0 2030 0 0 0 2027 0 0 0 2028 Water Savings Total Savings (afy) 2037 0 0 0 2035 0 0 0 2036 0 0 0 2033 0 0 0 2034 0 2020 0.000000 2021 0 0 0 2025 0 0 0 2026 0 0 0 2023 0 0 0 2024 0 0 0 0 0 0 R MF Total 2020 0 0 0 2039 $0 $0 $0 $0 $0 2034 $0 $0 $0 2031 $0 $0 $0 2032 $0 Targets 2037 $0 $0 $0 2038 $0 $0 $0 2035 $0 $0 $0 2036 $0 2021 0 0 0 2022 $0 $0 2033 $0 $0 $0 2029 $0 $0 $0 2030 $0 $0 $0 2027 $0 $0 $0 2028 $0 $0 $0 2025 $0 $0 $0 2026 $0 $0 $0 $0 $0 $0 2024 $0 $0 $0 2021 $0 $0 $0 2022 $0 $0 $0 Targets % of Accts Targeted/Yr.4.210% Only Affects New Accts FALSE R Showers 28.0%19.8 R Non-Lavatory/Kitchen Faucets 18.2%12.9 R Toilets 20.0%25.3 R Lavatory Faucets 45.5%6.9 MF Showers 28.0%75.7 MF Non-Lavatory/Kitchen Faucets 18.2%49.2 MF Toilets 20.0%96.8 MF Lavatory Faucets 45.5%26.5 Utility $1,782 End Use Savings Per Replacement % Savings/Acct Avg GPD/Acct Utility 0.69 Community 0.27 Cost of Savings per Unit Volume ($/af) $27,479 Lifetime Costs - Present Value ($) Utility $29,759 Community $100,229 Comments Results Average Water Savings (afy) 0.795248 Lifetime Savings - Present Value ($) Utility $20,507 Community Pools Wash Down Car Washing External Leakage Outdoor Cooling Kitchen Spray Rinse Internal Leakage Baths Other Non-Lavatory/Kitchen Faucets Irrigation Urinals Lavatory Faucets Benefit to Cost RatioMSU Showers Dishwashers Clothes Washers Process GGSMSULIToilets 1 MF $38.39 $100.00 3 End Uses RMFCCSINNew_SFWork with the real estate industry to require a certificate of compliance be submitted to the Utility verifying that a plumber has inspected the property and efficient fixtures were either already there, or were installed, before close of escrow. Measure Life Permanent TRUE Fixture Cost per Device Utility Customer Fix/Acct Time Period First Year 2040 Last Year 2040 Measure Length 1 Administration Costs Markup Percentage 10% Description R $38.39 $100.00 Abbr 22 Category 2 Measure Type 1 Overview Name Fixture Retrofit on Resale or Name Change on Water Account Customer Classes RMFLINew_SFCCSINGGS2040 16.700204 • Utility Cost: Represents random inspections by utility staff to ensure validity of code implementation. Assuming 1 hour for single family and 2 for MF on average per site, assuming inspections are random. Assume a typical unit has 2 toilets, 1 showerhead, 2 bath aerators, and 1 kitchen aerator replaced as needed. Assume multiple units per non-SF account. Average hourly rate of $38.39 is an average of the water conservation manager fully burdened rate of $46.86 and the water conservation technician fully burdened rate of $29.92) • Admin Markup: 10% cost represents staff time to administer the measure. • Customer Cost: Represent any fixture cost to comply with standards. • End Use Water Savings: Savings from this code measure assume 2.2 gpm faucets, 2.5 gpm showerheads, 1.6 gpf toilets and 1.0 gpf urinals are replaced with 1.2 gpm bathroom aerators, 1.8 gpm kitchen aerators, 1.8 gpm showerheads, 1.28 gpf toilets, and 0.125 gpf urinals. • Targets: Target % percent of accounts is a conservative assumption for recent resale and water account change rates. Average resale rate for the service area from 2018 - 2021 is 4.21%. New_SF not included, as it is assumed new housing would already have efficient fixtures in place. 2040 $38,708 $3,871 $42,579 2040 419 196 616 Fixture Costs Admin Costs Util Total 2020 $0 $0 $0 Costs 2023 Method: Units Method: Target Method: View:View Units Fixture Retrofit on Resale or Name Change on Water Account 370 City of Bozeman Water Conservation & Efficiency Plan 85 Require Irrigation Designers/Installers Be Certified #################### ############## ######## ############## ############## ############## ############## #### ######## ############## ###### ############## ############## ############## ###### ###### ###### ############## ######## 4 1 360 1,214 Water Savings 2039 197.204717 2040 215.567188 Total Savings (afy) 33.980348 2029 46.206038 2030 58.905435 2031 72.093800 2032 85.786884 2033 100.000946 2034 2039 $9,043 $90 $9,134 2040 $9,312 $93 $9,405 Targets 2039 498 226 102 11 4 1 337 1,179 2040 498 233 106 11 Abbr Category Measure Type Name Measure Life Permanent TRUE Utility Customer Fix/Acct Time Period First Year 2026 Last Year 2040 Measure Length 15 1 CS $7.67 R $7.67 $100.00 1 MF $7.67 $100.00 1 Other Non-Lavatory/Kitchen Faucets Irrigation Pools Wash Down Car Washing G $7.67 $100.00 1 GS $7.67 $100.00 1 New_SF $7.67 $100.00 1 Administration Costs Markup Percentage 1% 2022 $0 $0 $0 2023 $0 $0 $0 Require design/installation of irrigation systems by trained/certified contractors. Certification might be through the Irrigation Association (IA) and/or specialized training provided by utility. Model after program in Cary, North Carolina. 2021 $0 $0 $0 Fixture CostsAdmin Costs 2020 $0 Costs 2026 $6,216 $62 $6,278 2027 $6,395 $64 $6,459 2024 $0 $0 $0 2025 $0 $0 $0 2030 $6,966 $70 $7,036 2031 $7,169 $72 $7,241 2028 $6,579 $66 $6,645 2029 $6,770 $68 $6,838 2035 $8,047 $80 $8,128 2032 $7,378 $74 $7,452 2033 $7,594 $76 $7,670 GGSMSULINew_SFEnd Uses 2038 $8,782 $88 $8,870 2036 $8,285 $83 $8,367 2037 $8,529 $85 $8,615 2034 $7,817 $78 $7,895 Overview Require Irrigation Designers/Installers Be Certified 23 2 1 Fixture Cost per Device Customer Classes RMFCCSINResults Average Water Savings (afy) 75.024097 Lifetime Savings - Present Value ($) Utility $1,996,839 Community Description New_SFToilets Urinals Lavatory Faucets Showers Dishwashers Clothes Washers Process Kitchen Spray Rinse RMFCCSINGGSMSULIC $7.67 $100.00 Internal Leakage Baths $1,996,839 Lifetime Costs - Present Value ($) Utility $91,321 Community $1,270,158 Benefit to Cost Ratio Utility 21.87 Community 1.57 $0 $0 % of Accts Targeted/Yr.5.000% Only Affects New Accts FALSE Cost of Savings per Unit Volume ($/af) Utility $58 End Use Savings Per Replacement % Savings/Acct Avg GPD/Acct CS Irrigation 10.0%537.9 $100.00 1 External Leakage Outdoor Cooling Comments Util Total R MF C CS G GS New_SF Total • Utility Cost: WC would hold the trainings. Assumes they would host one IA class and two QWEL classes each year, for a budget of about ~$8k/year. • Admin Markup: Minimal allocation of additional staff time to enforce the measure. • Customer Cost: Cost to customers represents more efficient system devices AND better trained labor. • End Use Water Savings: 10-15% savings since participatory education measure. Might be higher. Additional savings will be captured under rebate measures, assuming contractor participation in those measures. • Targets: 10% of accounts would be affected by having certified landscapers. Assumes water savings from the certified contractors would occur in large landscape sites, such as HOAs/Multifamily Properties and Commercial Properties. Would like to reach 50 contractors annually. Assumes the 50 contractors affects 5% SF, MF and CII Accounts annually (around ~1,000 properties) This measures assumes costs and savings from rebates in other measures are not included / double counted here. • Time period: Starts in year 2026 per commission meeting direction on 2/15/22. 2020 0 0 0 0 0 0 0 0 2021 0 0 0 0 0 0 0 0 2022 0 0 0 0 0 0 0 0 2023 0 0 0 0 0 0 0 0 2024 0 0 0 0 0 0 0 0 2025 0 0 0 0 0 0 0 0 2026 498 151 66 7 3 1 86 810 2027 498 156 68 7 3 1 102 834 2028 498 161 70 7 3 1 118 858 2029 498 166 73 8 3 1 135 883 2030 498 171 75 8 3 1 152 908 962 2031 498 176 78 8 3 1 170 935 2025 0.000000 2026 10.891426 2027 22.213585 2028 2035 498 200 89 9 4 1 248 1,049 2032 498 182 81 9 3 1 189 2020 0.000000 2021 0.000000 2022 0.000000 2023 0.000000 2024 0.000000 114.752771 2035 130.059686 R Irrigation 10.0%91.2 MF Irrigation 10.0%99.8 C Irrigation 10.0%242.4 G Irrigation 10.0%942.1 GS Irrigation 10.0%806.6 New_SF Irrigation 10.0%162.3 Targets 2036 498 206 92 10 4 1 269 1,080 228 1,019 2033 498 188 83 9 4 1 208 990 2034 498 193 86 9 4 1 2036 145.939576 2037 162.410902 2038 179.49272520384982199910413131,145 2037 498 212 96 10 4 1 291 1,112 Method: Units Method: Target Method: View:View Units Require Irrigation Designers/ Installers Be Certified 371 City of Bozeman Water Conservation & Efficiency Plan 86 Mandatory Water Efficiency Offsets #################### ######## #### ######## ######## ######## ######## #### #### ######## #### ######## ######## ######## #### #### #### ######## #### CS Toilets CS Urinals CS Lavatory Faucets CS Showers CS Dishwashers CS Clothes Washers CS Process CS Kitchen Spray Rinse CS Other CS Non-Lavatory/Kitchen Faucets CS Irrigation CS Cooling New_SF Toilets 52.1 End Use Savings Per Replacement % Savings/Acct Avg GPD/Acct 537.9 22.4 20.8 17.4 48.6 52.1 20.8 31.3 26.3 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 23.3 103.4 2028 0 0 0 0 0 0 0 2022 2025 0 0 0 2026 0 0 0 2027 0 0 0 2022 0 0 0 2023 0 0 0 2024 0 0 0 2028 $0 $0 $0 2027 $0 $0 $0 $0 $0 2026 $0 $0 $0 2024 $0 $0 $0 2025 $0 $0 $0 2023 $0 % of Accts Targeted/Yr New_SF Pools 100.0% 90.000% Only Affects New Accts TRUE Costs 4.1 New_SF Non-Lavatory/Kitchen Faucets100.0%11.9 New_SF Irrigation 100.0%162.3 C CS 2020 0 0 0 2021 0 0 0 Pools Wash Down Car Washing External Leakage Outdoor 2022 $0 $0 $0 MF 2020 $0 $0 $0 2021 $0 $0 $0 Fixture CostsAdmin Costs Util Total This measure is modeled after the Net Blue water offset framework. The intent of this measure is to require developers to offset a portion of their estimated water demand from new development with efficiency projects. Irrigation 62.62 Community 0.95 Cost of Savings per Unit Volume ($/af) Utility $20 % Savings/Acct Avg GPD/Acct MF Toilets 100.0%96.8 C Toilets 100.0%150.1 Baths Other Non-Lavatory/Kitchen Faucets 100.0% 100.0% 20.8CCSINGGSGGSRMFEnd Uses MSULINew_SFCS $0.01 $3,750.00 1 MF $0.01 $3,750.00 1 C $0.01 $3,750.00 1 Measure Life Permanent TRUE Utility Customer Fix/Acct Time Period First Year 2033 Last Year 2040 Measure Length 8 Fixture Cost per Device Abbr Category Measure Type Name MFCCSINOverview Mandatory Water Efficiency Offsets 24 2 R1 Customer Classes MSULINew_SFNew_SF $0.01 $3,750.00 1 Administration Costs Annual Admin Costs $26,986 Description Toilets Urinals Lavatory Faucets Showers Dishwashers Clothes Washers Process Kitchen Spray Rinse Internal Leakage Cooling Comments • Utility Cost: No cost to conservation budget. • Admin Markup: Assumes 4 hours per account for enforcement, communication, and inspections, using an average hourly rate of $38.39, which is an average of the water conservation manager fully burdened rate of $46.86 and the water conservation technician fully burdened rate of $29.92) • Customer Cost: Cost to developer to install net zero system (efficient fixtures and greywater devices) or offset at another location. Customer cost of $3,750 per account is derived from City's calculation of total cost to offset 1 AF of water. • End Use Water Savings: This measure would require that 100% of demand from new development be offset through efficiency projects prior to approval - effectively eliminating demand associated with new development. This could be achieved by partially reducing use onsite, and/or completing retrofit projects offsite in order to save the amount of water equal to the demand of the new development. Therefore, the end use water savings for this measure is 100%. • Targets: Since mandatory measure, 90% of new accounts for MF and CII properties (assumes not 100% will comply) • Time Period: This measure is intended to start up after the "Impact Fee Credit" measure ends. Starts when demand is expected to exceed supply. Results Average Water Savings (afy) 383.902051 Lifetime Savings - Present Value ($) Utility $10,070,272 Community $12,149,589 Lifetime Costs - Present Value ($) Utility $160,818 Community $12,739,514 Benefit to Cost Ratio Utility C Urinals 100.0%45.0 MF Lavatory Faucets 100.0%26.5 56.8 MF Showers 100.0%75.7 C Showers 100.0%67.6 MF Dishwashers 100.0%4.8 C Lavatory Faucets 100.0% 45.0C Dishwashers 100.0% MF Clothes Washers 100.0%65.5 C Clothes Washers 100.0%112.6 C Process 100.0%105.1 37.5 MF Baths 100.0%10.2 MF Other 100.0%17.0 C Other 100.0%37.5 C Kitchen Spray Rinse 100.0% 49.2 C Non-Lavatory/Kitchen Faucets100.0%48.3 MF Irrigation 100.0%99.8 C Irrigation 100.0%242.4 MF Non-Lavatory/Kitchen Faucets100.0% 2.4 MF Wash Down 100.0%4.8 MF Car Washing 100.0%4.8 C Cooling 100.0%46.6 MF Pools 100.0% New_SF Other 100.0% New_SF Dishwashers 100.0%1.2 New_SF Clothes Washers 100.0%15.8 New_SF Baths 100.0%2.5 0 0 0 New_SF Total 0 0 0 0 0.000000 2026 0.000000 Total Savings (afy) 2020 0.000000 2021 0.000000 0.000000 18.2 New_SF Lavatory Faucets 100.0%6.4 New_SF Showers 100.0% 3.9 New_SF Wash Down 100.0%7.8 New_SF Car Washing 100.0%7.8 Targets 2029 $0 $0 $0 Water Savings 2029 0.000000 2027 0.000000 2028 0.000000 0 0 0 0 0 0 0 2023 0.000000 2024 0.000000 2025 2030 $0 $0 $0 2031 $0 $0 $0 2032 $0 $0 $0 2033 $5 $26,986 $26,991 2034 $5 $26,986 $26,991 2035 $5 $26,986 $26,992 2036 $6 $26,986 $26,992 2037 $6 $26,986 $26,992 2038 $6 $26,986 $26,992 2039 $6 $26,986 $26,992 2040 $6 $26,986 $26,992 Targets 2029 0 0 0 0 0 2030 0 0 0 0 0 2031 0 0 0 0 0 2032 0 0 0 0 0 2033 103 51 5 345 504 2034 107 53 6 356 521 2035 110 54 6 367 537 2036 114 56 6 379 554 2037 117 58 6 391 572 2038 121 60 6 403 590 2039 125 62 7 416 609 2040 129 65 7 429 629 2030 0.000000 2031 0.000000 2032 0.000000 2033 209.647839 2034 425.061008 2040 1852.131339 2035 646.477941 2036 874.138956 2037 1108.286909 2038 1349.167790 2039 1597.031293 Method: Units Method: Target Method: View:View Units Mandatory Water Efficiency Offsets 372 City of Bozeman Water Conservation & Efficiency Plan 87 Landscape Ordinance – Tier 3 #################### ######## #### ######## ######## ######## ######## #### #### ######## #### ######## ######## ######## #### #### #### ######## #### 2039 1193.174335 2040 1290.735434 2036 919.072745 2037 1007.444232 2038 1098.778241 2033 670.785799 2034 750.835191 2035 833.567458 2030 445.876908 2031 518.389650 2032 593.332074 2027 242.139968 2028 307.827211 2029 375.714891 2024 57.577510 2025 117.083155 2026 178.581671 2021 0.000000 2022 0.000000 2023 0.000000 Water Savings Total Savings (afy) 2020 0.000000 2040 129 72 8 370 578 2039 125 69 7 359 560 2038 121 67 7 348 542 2037 117 65 7 337 526 2036 114 63 7 327 509 2035 110 60 6 317 493 2034 107 58 6 307 478 2033 103 56 6 298 463 2032 100 54 6 288 449 2031 97 53 6 280 435 2030 94 51 5 271 421 2029 91 49 5 263 408 2028 89 47 5 255 396 2027 86 46 5 247 383 2026 83 44 5 239 371 2025 81 43 5 232 360 0 0 2021 0 0 0 0 0 2024 78 41 4 225 349 2023 0 0 0 0 0 2040 $578 $180,819 $181,396 2039 $560 $180,819 $181,379 $180,819 $181,312 2038 $542 $180,819 $181,361 2036 $509 $180,819 $181,328 2037 $526 $180,819 $181,344 2034 $478 $180,819 $181,297 2035 $493 Total 2020 0 0 0 0 0 2032 $449 $180,819 $181,268 2033 $463 $180,819 2022 0 0 0 $181,282 2030 $421 $180,819 $181,240 2031 $435 $180,819 $181,254 2028 $396 $180,819 $181,214 2029 $408 $180,819 $181,227 2026 $371 $180,819 $181,190 2027 $383 $180,819 $181,202 2024 $349 $180,819 $181,167 2025 $360 $180,819 $181,179 2022 $0 $0 $0 2023 $0 $0 $0 2020 $0 $0 $0 2021 $0 $0 $0 Targets Enter Annual Targets Below Costs Fixture Costs Admin Costs Util Total New_SF Targets MF C CS CS Irrigation 115.9%537.9 New_SF Irrigation 33.0%162.3 MF Irrigation 138.7%99.8 C Irrigation 257.2%242.4 Utility $235 End Use Savings Per Replacement % Savings/Acct Avg GPD/Acct Benefit to Cost Ratio Utility 5.45 Community 2.83 Cost of Savings per Unit Volume ($/af) $13,597,493 Lifetime Costs - Present Value ($) Utility $2,495,120 Community $4,805,122 Comments • Utility Cost: Minimal utility cost. It is assumed utility cost would be reimbursed by developers. • Admin Markup: Fixed annual cost represents 5,548 staff hours. Admin time assumes split 50/50 time for education and outreach, set up, and tracking effectiveness QAQC between technician rate and manager rate. Additionally, admin time includes 100% technician time for plan review, compliance inspection, and follow up for building permit for BO projects, and other building permit review and compliance inspections for BPR projects. Fully burdened technician rate is $29.92/hr. Fully burdened water conservation manager rate is $46.86/hr. It is assumed 3.12 FTEs will be needed. • Customer Cost: Cost to comply with ordinance by putting in proper landscaping. • End Use Water Savings: savings are based on the estimated annual irrigation water use per account. It is assumed that MF and Commercial accounts will have a turf limit of 20% of irrigable area (~2,884 sq.ft. of area for MF and 6,551 sq.ft. of area for COM). It is assumed that New_SF accounts will have a turf limit of 35% of irrigable area (~ 1,412 sq.ft.) Water savings are calculated using the percent difference of the current average turf and non- turf area water budget to the 20% turf/ 80% non-turf irrigable area budgets for MF and COM, and 40% turf/60% non-turf irrigable area budgets. Savings inputs above the average account type irrigation use reflects the much higher irrigation use by new accounts. The average account's average irrigation use volume is based on both lower and higher water use by customer category accounts. This measure targets the higher than average water using accounts. • Targets: Assumed 90% of new multi-family accounts and 100% of new commercial and commercial special accounts are targeted. Assumes 80% of "new" New_SF accounts are targeted. Results Average Water Savings (afy) 504.805546 Lifetime Savings - Present Value ($) Utility $13,597,493 Community Pools Wash Down Car Washing External Leakage Outdoor Cooling Kitchen Spray Rinse Internal Leakage Baths Other Non-Lavatory/Kitchen Faucets Irrigation Urinals Lavatory Faucets Showers Dishwashers Clothes Washers Process GGSMSULINew_SFToilets LINew_SFEnd Uses RMFCCSINCCSINGGSMSUAdministration Costs Annual Admin Costs $180,819 Description TIER 3 of a prescriptive landscape ordinance measure would: > Restrict turfgrass installation to 35% of total landscaped area - SF > Restrict turfgrass installation to 20% of total landscaped area - MF > Restrict turfgrass installation to 20% of total landscaped area - COM Additionally for SF, MF, and COM customer classes there will be the following: > Landscape Design Standards: • Require 6" of topsoil - tilled w/ OM (4 cu yds./1,000 sq ft. of landscape area) • Require 3" mulch on bare soil (5% can be left uncovered for habitat) • Require submittal of soil quality lab test documentation • Drought tolerant vegetation requirement for parkland, ROW > Irrigation Design Standards: • Detailed irrigation plan required for parkland and Plan Review (PR) projects • Head to head coverage • Hydro zoning • Low flow drip for trees/perennials/shrubs • No OH spray permitted in areas less than 10 ft wide • Irrigation O&M plan (including schedule for establishment and post-establishment) • Irrigation performance requirement of 70% DU (verified by certified 3rd party contractor) > Irrigation Performance Standards: • Adequate operating pressure • Weather based controller • Rain/soil moisture sensor • Nozzle max. application rate of 1.25 in/hr. > Large Landscape Requirements: • Irrigation submeters required • Flow sensor required • Separate irrigation rate structure for all irrigation submeters (more $$) CS $1.00 $1,000.00 1 New_SF $1.00 $200.00 1 MF $1.00 $500.00 1 C $1.00 $1,000.00 1 Measure Life Permanent TRUE Fixture Cost per Device Utility Customer Fix/Acct Time Period First Year 2024 Last Year 2040 Measure Length 17 Abbr 27_L_OrdT3 Category 2 Measure Type 1 Overview Name Landscape Ordinance - Tier 3 Customer Classes RMFMethod: Units Method: Target Method: View:View Units Landscape Ordinance -Tier 3 373 City of Bozeman Water Conservation & Efficiency Plan 88 APPENDIX F – CONSERVATION ANALYSIS RESULTS This appendix presents benefit and cost analysis results for individual conservation measures and overall conservation programs. Table F-1 presents how much water the measures will save through 2045, how much they will cost, and the cost of saved water per unit volume if the measures were to be implemented on a stand- alone basis (i.e., without interaction or overlap from other measures that might address the same end use or uses). Savings from measures which address the same end use(s) are not additive; the model uses impact factors to avoid double counting in estimating the water savings from programs of measures.12 This is why a measure like Public Education may show a distorted cost in comparison to water saved. Most, if not all, measures rely on public awareness. However, it is important to note that water savings are more directly attributable to an “active” measure, like a toilet rebate, than the less “active” public education/awareness measure that informs the community of the active measure. Since interaction between measures has not been accounted for in Table F-1, it is not appropriate to include totals at the bottom of the table. However, the table is useful to give a close approximation of the cost effectiveness of each measure. Cost categories are defined as follows: • Utility Costs – Costs the City will incur, as a water utility, to operate a measure, including administrative costs. • Utility Benefits – The avoided cost of producing water at the identified rate $1,645/AF. • Customer (Community) Costs – Those costs customers will incur to implement a measure in the City’s conservation program and maintain its effectiveness over the life of the measure. • Customer (Community) Benefits – The additional savings, such as energy savings resulting from reduced use of hot water. These savings are additional as customers also would have reduced water bills (since the Utility Costs and Benefits transfer to the customers). • Community Costs – Includes Utility Costs plus Customer Costs. • Community Benefits – Includes Utility Benefits plus Customer Benefits. The column headings in Table F-1 are defined as follows: • Present Value (PV) of Utility and Community Costs and Benefits ($) = the present value of the 21-year time stream of annual costs or benefits, discounted to the base year. • Utility Benefit to Cost Ratio = PV of Utility Benefits divided by PV of Utility Costs over 21 years. • Community Benefit to Cost Ratio = (PV of Utility Benefits plus PV of customer energy savings) divided by (PV of Utility Costs plus PV of Customer Costs), over 21 years. • Five Years of Water Utility Costs ($) = sum of annual Utility Costs for 2023–2028. Measures start in the years as specified for each measure shown in Appendix E. Utility costs include administrative costs and staff labor. • Water Savings in 2040 (AFY) = water saved in acre-feet per year. • Cost of Savings per Unit Volume ($/AF) = PV of Utility Costs over 21 years divided by the 21-year water savings. The analysis period is 2020–2040. This value is compared to the utility’s avoided cost of water as one indicator of the cost effectiveness of conservation efforts. Note that this value somewhat minimizes the cost of savings because program costs are discounted to present value, but water benefits are not. 12 For example, if two measures are planned to address the same end use and both save 10% of the prior water use, then the net effect is not the simple sum of 20%. Rather, it is the cumulative impact of the first measure reducing the use to 90% of what it was originally, without the first measure in place. Then, the revised use of 90% is reduced by another 10% (10% x 90% = 9%) to result in the use being 81% (90% - 9% = 81%). In this example, the net savings is 19%, not 20%. Using impact factors, the model computes the reduction as follows, 0.9 x 0.9 = 0.81 or 19% water savings. 374 City of Bozeman Water Conservation & Efficiency Plan 89 Table F-1. Estimated Conservation Measure Costs and Savings Measure Present Value of Water Utility Benefits Present Value of Community Benefits Present Value of Water Utility Costs Present Value of Community Costs Water Utility Benefit to Cost Ratio Communit y Benefit to Cost Ratio Five Years of Water Utility Costs 2023– 2028 Water Savings in 2040 (AFY) Water Savings in 2040 (GPCD) Cost of Savings per Unit Volume ($/AF) Commercial Capital Project – HE Fixture Installation in Gov't Bldg. $67,522 $79,816 $83,620 $83,620 0.81 0.95 $29,700 4.31 0.04 $1,686 School Building Retrofit $14,264 $19,049 $43,372 $85,481 0.33 0.22 $0 1.83 0.02 $3,910 CII High Efficiency Washer Rebate $101,734 $177,152 $270,166 $1,057,055 0.38 0.17 $0 9.35 0.08 $3,515 Require HE Toilets, Showerheads, Faucets, Urinals in New Development $32,967 $42,766 $13,440 $220,684 2.45 0.19 $0 26.85 0.24 $501 Mandatory Water Efficiency Offsets $10,070,272 $12,149,589 $160,818 $12,739,514 62.62 0.95 $0 1,852.13 16.64 $20 Irrigation Capital Project – Retrofit City Medians with Drought Tolerant Landscaping and Efficient Irrigation $33,510 $33,510 $13,365 $13,365 2.51 2.51 $15,150 1.82 0.02 $525 Capital Project – Upgrade City $34,097 $34,097 $78,495 $78,495 0.43 0.43 $86,604 1.65 0.01 $3,076 375 City of Bozeman Water Conservation & Efficiency Plan 90 Measure Present Value of Water Utility Benefits Present Value of Community Benefits Present Value of Water Utility Costs Present Value of Community Costs Water Utility Benefit to Cost Ratio Communit y Benefit to Cost Ratio Five Years of Water Utility Costs 2023– 2028 Water Savings in 2040 (AFY) Water Savings in 2040 (GPCD) Cost of Savings per Unit Volume ($/AF) Facility Irrigation Systems Dedicated Irrigation Meters & Irrigation Account Rate Structure $41,168 $41,168 $44,601 $189,974 0.92 0.22 $0 5.86 0.05 $1,343 Impact Fee Credit $957,338 $1,220,446 $69,679 $3,396,050 13.74 0.36 $27,260 54.81 0.49 $97 Financial Incentives for Irrigation and Landscape Upgrades $336,346 $336,346 $348,144 $532,466 0.97 0.63 $93,569 16.37 0.15 $1,396 Landscape Conversion or Turf Removal Rebate $1,167,822 $1,167,822 $2,596,488 $20,569,483 0.45 0.06 $727,322 94.21 0.85 $2,895 Contractor Efficient Outdoor Use Education and Training Programs $1,553,720 $1,553,720 $117,749 $117,749 13.20 13.20 $29,884 82.93 0.75 $103 Xeriscape Demonstration Gardens $497,501 $497,501 $115,505 $803,036 4.31 0.62 $28,667 23.85 0.21 $316 Require Irrigation Designers/Installers Be Certified $1,996,839 $1,996,839 $91,321 $1,270,158 21.87 1.57 $12,737 215.57 1.94 $58 376 City of Bozeman Water Conservation & Efficiency Plan 91 Measure Present Value of Water Utility Benefits Present Value of Community Benefits Present Value of Water Utility Costs Present Value of Community Costs Water Utility Benefit to Cost Ratio Communit y Benefit to Cost Ratio Five Years of Water Utility Costs 2023– 2028 Water Savings in 2040 (AFY) Water Savings in 2040 (GPCD) Cost of Savings per Unit Volume ($/AF) Landscape Ordinance – Tier 3 $13,597,493 $13,597,493 $2,495,120 $4,805,122 5.45 2.83 $724,738 1,290.74 11.60 $235 Residential Tiered Rate Structure for MF $44,808 $44,808 $68,754 $68,754 0.65 0.65 $0 24.27 0.22 $831 AMI and Customer Water Use Portal $1,338,233 $2,461,181 $481,541 $1,454,351 2.78 1.69 $118,622 84.80 0.76 $489 Water Budget- Based Billing and Water Budgeting $173,161 $173,161 $996,508 $1,089,640 0.17 0.16 $0 16.00 0.14 $7,279 Efficient Fixture Giveaway $440,160 $695,484 $20,682 $47,689 21.28 14.58 $5,057 31.77 0.29 $64 Residential Efficiency Fixture Incentive Program $1,265,438 $1,678,094 $352,510 $824,633 3.59 2.03 $96,479 81.49 0.73 $388 Residential Water Use Surveys $953,503 $1,043,723 $719,661 $752,788 1.32 1.39 $201,257 46.85 0.42 $1,035 Low Income Direct Installation Rebates and Leak Repair Assistance $50,685 $71,329 $70,151 $70,151 0.72 1.02 $13,421 4.89 0.04 $1,830 Fixture Retrofit on Resale or Name Change on Water Account $20,507 $27,479 $29,759 $100,229 0.69 0.27 $0 16.70 0.15 $1,782 377 City of Bozeman Water Conservation & Efficiency Plan 92 Measure Present Value of Water Utility Benefits Present Value of Community Benefits Present Value of Water Utility Costs Present Value of Community Costs Water Utility Benefit to Cost Ratio Communit y Benefit to Cost Ratio Five Years of Water Utility Costs 2023– 2028 Water Savings in 2040 (AFY) Water Savings in 2040 (GPCD) Cost of Savings per Unit Volume ($/AF) Community & Education Public Education $3,008,536 $3,122,408 $2,227,983 $2,951,354 1.35 1.06 $550,657 150.19 1.35 $1,016 System Water Loss $3,431,066 $3,431,066 $391,935 $391,935 8.75 8.75 $125,000 317.18 2.85 $147 Additional information about the water reduction methodology, perspectives on benefits and costs, and assumptions about present value parameters and measure costs/savings can be found earlier in this Plan in Appendix D. 378 City of Bozeman Water Conservation & Efficiency Plan 93 The following table shows each conservation program’s present value of water savings and utility costs, as well as cost of water saved. See Appendix D for a more detailed explanation of present value. Table F-2. Conservation Program Estimated Costs and Water Savings Conservation Program Water Utility Present Value of Water Savings Water Utility Present Value of Utility Costs Water Utility Cost of Water Saved ($/AF) Program A with Plumbing Code $13,699,000 $7,451,000 $730 Program B with Plumbing Code $36,469,000 $10,621,000 $380 Program C with Plumbing Code $36,816,000 $11,901,000 $420 Costs presented in the table above are directly attributable to the City’s conservation department only. Present value costs and savings are rounded to nearest $1,000. 379 City of Bozeman Water Conservation & Efficiency Plan 94 APPENDIX G – EXAMPLES OF LOCAL OUTREACH INITIATIVES Social Media Examples 380 City of Bozeman Water Conservation & Efficiency Plan 95 Online Examples 381 City of Bozeman Water Conservation & Efficiency Plan 96 382 City of Bozeman Water Conservation & Efficiency Plan 97 383 City of Bozeman Water Conservation & Efficiency Plan 98 Print Ad Examples 384 City of Bozeman Water Conservation & Efficiency Plan 99 APPENDIX H – COMMUNITY STAKEHOLDER CONSERVATION M E ASURE SURVEY S SUMMARY AND RESULTS Water Conservation and Efficiency Plan Community Engagement Summary Program Measure Evaluation and Selection Process To develop this Plan, a series of program measures were evaluated in collaboration with the City of Bozeman. This evaluation was specific to the factors that were unique to the City’s service area, such as water use characteristics, economies of scale, and demographics. The overall initial list of more than 140 potential water conservation measures was drawn from MWM and the City’s experience, and a review of what other water agencies with innovative and effective conservation programs were implementing at the time. The City scored and evaluated each of these measures based on quantifiable water savings, technology availability and market maturity, service area match, customer acceptance, equity, and additional service area benefits. Through this process, the list was reduced to 49 measures. After shortening the original list from 140 to 49 program measures, the City solicited input from the community. Engaging the community during this portion of the Plan development process was crucial to ensuring that the City develops programs that would be supported and widely adopted within the community. Engage Bozeman and the Survey Development Process In 2021, the City of Bozeman adopted and launched a community engagement initiative called Engage Bozeman to gather input from the community. Engage Bozeman strives to create opportunities and pathways for residents to interact with the City by taking part in finding solutions and contributing to decisions that affect them. The first step of the Engage Bozeman process is to define the decision- making process. This means identifying what decisions need to me made, who will make them, and what information will be considered. To start the community engagement process, the City evaluated these questions and came to the following conclusions: •The decision that needs to be made is what program measures will undergo a detailed economic analysis and then be added into the Plan. •The decision makers will be City staff, MWM, City Management, and the City Commission. •To make this decision, input from the public will be crucial to selecting program measures that will be well received and widely adopted within the community. The next step in the community engagement process was to define the level of engagement. To do this the City utilized the International Association for Public Participation (IAP2) engagement spectrum.13 The IA2P engagement spectrum outlines the levels of engagement and helps determine how the community will contribute to the process and what the expectations are for achieving a given level of engagement. 13 https://www.bozeman.net/home/showpublisheddocument/11461/637622797246270000 385 City of Bozeman Water Conservation & Efficiency Plan 100 The City decided that somewhere between “consult” and “involve” was the desired level of public participation. This was chosen on the basis that the public is not ultimately making the decision, but their input is still valued and will be considered in the decision-making process. To get the public’s input, a suite of surveys was developed to share with various stakeholders. Developing the Surveys The first step in developing the surveys was to identify key stakeholder groups that would be directly impacted by the outcome of the Plan. The groups identified were residents, businesses, landscape and irrigation contractors, developers, and property management companies. The next step was to take the list of program measures being evaluated and identify which stakeholder groups would either be impacted by the measure or would potentially be interested in voicing their opinion about the measure. Once all the measures were aligned with corresponding groups, a customized survey was developed 386 City of Bozeman Water Conservation & Efficiency Plan 101 for each stakeholder group. Each survey question was strategically and mindfully created to ensure that every stakeholder would understand the measure. Each question corresponded directly with one or more program measures. At the end of each survey, participants could elect to stay updated on the progress of the Plan. Outreach and Results To distribute the surveys to the various stakeholder groups the City utilized existing stakeholder email lists and a variety of outreach methods. The surveys were publicly available for 18 days (June 29–July 16, 2021). Direct email lists were utilized for businesses, landscape and irrigation contractors, developers, and property managers. The survey targeting residents was advertised more heavily to include a more diverse group of respondents. To accomplish this, the City utilized its eNotification tool, which includes email lists for various City topics and departments. The survey was also released on social media and through word-of-mouth at local events such as the farmer’s market. Coincidentally, the survey was made public as the City declared a stage 2 drought. This brought more attention to water conservation in general, and the local newspaper, the Bozeman Daily Chronicle, wrote an article about the Plan development and linked the survey. After this was published, there was a spike in resident survey submissions. In total, 453 people completed the surveys. Information gathered from survey submissions was used to shorten the list of program measures from 49 to 25.These 25 program measures were selected for inclusion in the Plan and underwent a detailed benefit-cost analysis. Table H-1. Community Stakeholder Conservation Measure Surveys Overview Stakeholder Group Residents Businesses Landscape & Irrigation Contractors Developers Property Managers # of Survey Participants 354 16 22 47 14 # of Survey Questions 11 9 9 10 9 Outreach Method(s) Direct email to City email list members, social media, article in the Bozeman Daily Chronicle, word-of- mouth Direct email, local business list serve groups Direct email Direct email Direct email The following pages contain the results from the suite of surveys. 387 City of Bozeman Water Conservation & Efficiency Plan 102 City of Bozeman Water Conservation Plan Survey Results The City of Bozeman is currently developing a water conservation plan that will guide the water conservation program for the next 20 years. Input and feedback from local stakeholders is important to ensure that the plan aligns with the goals and needs of the community. To obtain this input the City developed surveys for various stakeholder groups. We appreciate you taking the time to take the resident survey and provide us with your input. The next step of the water conservation plan development process is evaluating program measures to determine which measures will be included in the plan. The survey results will be utilized during this process by providing valuable insight on which program measures the local community supports and opposes. However, the survey results will not solely determine which measures are included in the plan. Other criteria such as achievable water savings, available technology/market maturity, service area match, customer equity, etc. will all be considered in determining which measures are included in the plan. A summary of the residents’ survey results is included below. Resident Survey Details Number of Survey Participants: 354 Outreach Methods: Direct email to City email list members, social media, article in the Bozeman Daily Chronicle, word of mouth Survey Dates: 6/29/2021 – 7/16/2021 Part 1: Programs and Regulations The water conservation plan will include recommendations for regulatory change, new programs and initiatives, water rate changes, etc. Your input will help prioritize which of these initiatives are included in the plan. Of the following, please indicate the level you would support or oppose the following programs and regulations. (0 = Strongly Oppose, 5 = Strongly Support) 1473 1615 1593 1280 1530 1428 6. Establish a school grant program for schools to retrofit inefficient plumbing fixtures and outdoor sprinkler systems with more efficient products. 5. Develop water efficient landscape design standards for new development projects. 4. Require that the sprinkler systems in new commercial developments and 5 or more unit residential properties have weather-based controllers and high efficiency nozzles. 3. Require realtors to submit proof to the City that verifies a plumber has inspected the property and efficient fixtures were either already installed or were installed. 2. Require the installation of high-efficiency toilets, lavatory faucets, kitchen faucets, and showerheads in all new developments. 1. Programs dedicated to removing barriers for low income residents to participate in water conservation programs. Overall score of each program measure Summary of Programs & Regulations 388 City of Bozeman Water Conservation & Efficiency Plan 103 12 11 21 44 72 192 0 50 100 150 200 250 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 1. Programs dedicated to removing barriers for low income residents to participate in water conservation programs. For example, some best practice programs to be considered include: direct installation toilet rebate program, higher rebate amount for clot 14 10 10 22 46 251 0 50 100 150 200 250 300 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 2. Require the installation of high-efficiency toilets, lavatory faucets, kitchen faucets, and showerheads in all new developments. 33 17 31 49 61 163 0 20 40 60 80 100 120 140 160 180 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 3. Require realtors to submit proof to the City that verifies a plumber has inspected the property and efficient fixtures were either already installed or were installed before the close of escrow. 12 2 10 19 36 275 0 50 100 150 200 250 300 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 4. Require that the sprinkler systems in new commercial developments and residential properties with 5 or more units have weather-based controllers and high efficiency sprinkler nozzles. 389 City of Bozeman Water Conservation & Efficiency Plan 104 Part 2: Water Rates The water conservation plan will include recommendations for changes to Bozeman's current water rate structure. All of the water rate options being evaluated are designed to curb excessive outdoor water use by sending price signals to customers. Bozeman currently uses a tiered rate structure for single family customers that includes four tiers. This ensures customers pay for the true cost of their usage and keeps the cost of water for essential uses to a minimum. As water usage increases and moves into higher tiers, the per unit price of water increases. 12 4 8 11 28 291 0 50 100 150 200 250 300 350 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 5. Develop water efficient landscape design standards for new development projects. These standards may include: climate appropriate landscaping, turf ratios to reduce the amount of high water use turf grass in the landscape, water smart plant selection, 12 4 8 11 28 291 0 50 100 150 200 250 300 350 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 6. Establish a school grant program for schools to retrofit inefficient plumbing fixtures and outdoor sprinkler systems with more efficient products. 1208 1509 1435 9. Develop monthly water budgets for outdoor water use. Water budgets estimate how much water is needed to maintain a healthy landscape. Water budgets would be designed specifically for your landscape. 8. For commercial and large landscape accounts, install irrigation-only water meters to measure outdoor water use and create a billing rate specifically for irrigation. 7. Adopt tiered rates for commercial and multi-family units (single family tiered rates will remain in effect). Overall score of each program measure Summary of Water Rates 390 City of Bozeman Water Conservation & Efficiency Plan 105 19 6 15 42 52 214 0 50 100 150 200 250 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 7. Adopt tiered rates for commercial and multi-family units (single family tiered rates will remain in effect). 13 4 11 35 57 231 0 50 100 150 200 250 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 8. For commercial and large landscape accounts, install irrigation-only water meters to measure outdoor water use and create a billing rate specifically for irrigation. 29 13 40 66 63 134 0 20 40 60 80 100 120 140 160 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 9. Develop monthly water budgets for outdoor water use. Water budgets estimate how much water is needed to maintain a healthy landscape. Water budgets would be designed specifically for your landscape and would be based on factors such as size of irrigate 391 City of Bozeman Water Conservation & Efficiency Plan 106 Part 3: Incentives and Resources 238 171 172 215 206 255 Purchases of water-smart plants Turf area conversions to low water-using turf varieties (rebate per sq foot) Turf area conversions to permeable surfaces (permeable pavers, mulch, etc.) Turf area conversions to water-smart plants (rebate per sq foot) Leak detection devices / flow sensors High efficiency indoor fixtures and appliances (toilets, faucets, showerheads, clothes washers) Overall score of each program measure 10. Which of the following rebates would you use (residential and commercial)? Select all that apply. 230 76 159 121 136 166 206 85 181 City staff dedicated to working with developers and local designers on water efficient development. Educational resources and awareness campaigns (print media, social media, bill stuffers, etc.) Free efficient fixtures (faucet aerators, showerheads, hose nozzles, etc.) Free indoor water use surveys to identify ways to increase efficiency Free workshops and educational sessions about efficient outdoor water use and landscape choices More water smart demonstration gardens around town Online water use portal to track your water use (Dropcountr) School education programs / classroom outreach Sprinkler system assessments / outdoor water use surveys Overall score of each program measure 11. What resources would you benefit the most? Select all that apply. 392 City of Bozeman Water Conservation & Efficiency Plan 107 City of Bozeman Water Conservation Plan Survey Results The City of Bozeman is currently developing a water conservation plan that will guide the water conservation program for the next 20 years. Input and feedback from local stakeholders is important to ensure that the plan aligns with the goals and needs of the community. To obtain this input the City developed surveys for various stakeholder groups. We appreciate you taking the time to take the business survey and provide us with your input. The next step of the water conservation plan development process is evaluating program measures to determine which measures will be included in the plan. The survey results will be utilized during this process by providing valuable insight on which program measures the local community supports and opposes. However, the survey results will not solely determine which measures are included in the plan. Other criteria such as achievable water savings, available technology/market maturity, service area match, customer equity, etc. will all be considered in determining which measures are included in the plan. A summary of the business’ survey results is included below. Business Survey Details Number of Survey Participants: 16 Outreach Methods: Direct email Survey Dates: 6/29/2021 – 7/16/2021 Survey Participants Restaurant/Bar 33% Retail 14% Medical Services 5% Gym/Exercise Facility 5% Office 5% Other 38% Survey Participants 393 City of Bozeman Water Conservation & Efficiency Plan 108 Part 1: Programs and Regulations The water conservation plan will include recommendations for regulatory change, new programs and initiatives, water rate changes, etc. Your input will help prioritize which of these initiatives are included in the plan. Of the following, please indicate the level you would support or oppose the following programs and regulations. (0 = Strongly Oppose, 5 = Strongly Support) 70 75 25 63 4. Require dedicated irrigation meters in multi-family and commercial developments (new developments and renovation projects), and large landscapes. 3. Develop water efficient landscape design standards for new development projects. 2. Require that the sprinkler systems in new commercial developments and residential properties with 5 or more units have weather-based controllers and high efficiency sprinkler nozzles. 1. Require realtors to submit a certificate of compliance to the City that verifies a plumber has inspected the property and efficient fixtures were either already installed or were installed before close of escrow. Overall score of each program measure Summary of Programs & Regulations 394 City of Bozeman Water Conservation & Efficiency Plan 109 0 11 1 2 1 11 0 2 4 6 8 10 12 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 1. Require realtors to submit a certificate of compliance to the City that verifies a plumber has inspected the property and efficient fixtures were either already installed or were installed before close of escrow. 0 0 0 0 0 16 0 2 4 6 8 10 12 14 16 18 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 2. Require that the sprinkler systems in new commercial developments and residential properties with 5 or more units have weather-based controllers and high efficiency sprinkler nozzles. 0 0 0 0 0 16 0 2 4 6 8 10 12 14 16 18 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 3. Develop water efficient landscape design standards for new development projects. These standards may include: climate appropriate landscaping, turf ratios to reduce the amount of high water use turf grass in the landscape, water smart plant selection, 0 0 1 0 2 13 0 2 4 6 8 10 12 14 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 4. Require dedicated irrigation meters in multi-family and commercial developments (new developments and renovation projects), and large landscapes. 395 City of Bozeman Water Conservation & Efficiency Plan 110 Part 2: Water Rates The water conservation plan will include recommendations for changes to Bozeman's current water rate structure. All of the water rate options being evaluated are designed to curb excessive outdoor water use by sending price signals to customers. Bozeman currently uses a tiered rate structure for single family customers that includes four tiers. This ensures customers pay for the true cost of their usage and keeps the cost of water for essential uses to a minimum. As water usage increases and moves into higher tiers, the per unit price of water increases. 65 68 64 7. Develop monthly water budgets for outdoor water use. Water budgets estimate how much water is needed to maintain a healthy landscape. Water budgets would be designed specifically for your landscape. 6. For commercial and large landscape accounts, install irrigation-only water meters to measure outdoor water use and create a billing rate specifically for irrigation. 5. Adopt tiered rates for commercial and multi-family units (single family tiered rates will remain in effect). Overall score of each program measure Summary of Water Rates 396 City of Bozeman Water Conservation & Efficiency Plan 111 1 0 0 3 2 10 0 2 4 6 8 10 12 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 5. Adopt tiered rates for commercial and multi-family units (single family tiered rates will remain in effect). 0 0 0 1 2 12 0 2 4 6 8 10 12 14 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 6. For commercial and large landscape accounts, install irrigation-only water meters to measure outdoor water use and create a billing rate specifically for irrigation. 0 1 1 1 2 11 0 2 4 6 8 10 12 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 7. Develop monthly water budgets for outdoor water use. Water budgets estimate how much water is needed to maintain a healthy landscape. Water budgets would be designed specifically for your landscape and would be based on factors such as size of irrigate 397 City of Bozeman Water Conservation & Efficiency Plan 112 Part 3: Incentives and Resources 9 12 14 10 10 9 6 9 8 A standard rebate for commercial equipment (ice machines, steamers, dishwashers, x-ray machines, etc.) High efficiency commercial clothes washers High efficiency indoor fixtures and appliances (toilets, faucets, showerheads, clothes washers) Irrigation equipment (weather-based irrigation controllers, irrigation nozzles rain sensors, drip irrigation equipment) Leak detection devices/flow sensors Purchase of water-smart plants Turf area conversions to low water-using turf varieties (rebate per sq foot) Turf area conversions to permeable surfaces (permeable pavers, mulch, etc.) Turf area conversions to water-smart plants (rebate per sq foot) Overall score of each program measure 10. Which of the following rebates would you use (residential and commercial)? Select all that apply. 6 9 8 9 8 11 8 9 6 Awards to showcase local projects City staff dedicated to working with developers and local designers on water efficient development Educational resources and awareness campaigns (print media, social media, bill stuffers, etc.) Free efficient fixtures (faucet aerators, showerheads, hose nozzles, etc.) Indoor water use surveys to identify opportunities to increase efficiency Local certified water efficient landscapers (ex. the City would host courses to certify local landscapers) Online water use portal to track water use (Dropcountr) Sprinkler system assessments / outdoor use surveys Workshops and educational sessions Overall score of each program measure 11. What resources would you benefit the most? Select all that apply. 398 City of Bozeman Water Conservation & Efficiency Plan 113 City of Bozeman Water Conservation Plan Results The City of Bozeman is currently developing a water conservation plan that will guide the water conservation program for the next 20 years. Input and feedback from local stakeholders is important to ensure that the plan aligns with the goals and needs of the community. To obtain this input the City developed surveys for various stakeholder groups. We appreciate you taking the time to take the development survey and provide us with your input. The next step of the water conservation plan development process is evaluating program measures to determine which measures will be included in the plan. The survey results will be utilized during this process by providing valuable insight on which program measures the local community supports and opposes. However, the survey results will not solely determine which measures are included in the plan. Other criteria such as achievable water savings, available technology/market maturity, service area match, customer equity, etc. will all be considered in determining which measures are included in the plan. A summary of the development survey results is included below. Development Survey Details Number of Survey Participants: 47 Outreach Methods: Direct email Survey Dates: 6/29/2021 – 7/16/2021 399 City of Bozeman Water Conservation & Efficiency Plan 114 Part 1: Programs and Regulations The water conservation plan will include recommendations for regulatory change, new programs and initiatives, water rate changes, etc. Your input will help prioritize which of these initiatives are included in the plan. Of the following, please indicate the level you would support or oppose the following programs and regulations. (0 = Strongly Oppose, 5 = Strongly Support) 168 133 141 131 180 187 111 179 8. Develop an impact fee credit for developers that will offset some of the costs associated with more expensive water smart landscaping. 7. Local landscape ordinance for new development that would aim to reduce outdoor water through the implementation of landscape and irrigation performance and design standards, including requiring a maximum applied water allowance for all landscapes. 6. Require dedicated irrigation meters in multi-family and commercial developments (new developments and renovation projects), and large landscapes. 5. Require the design and installation of sprinkler systems be completed by water efficient certified contractors. The City would host training to certify the contractors. 4. Develop water efficient landscape design standards for new development projects. 3. Require that the sprinkler systems in new commercial developments and residential properties with 5 or more units have weather-based controllers and high efficiency sprinkler nozzles. 2. Require realtors to submit a certificate of compliance to the City that verifies a plumber has inspected the property and efficient fixtures were either already installed or were installed before close of escrow. 1. Require the installation of high-efficiency toilets, lavatory faucets, kitchen faucets, and showerheads in all new developments. Overall score of each program measure Summary of Programs & Regulations 400 City of Bozeman Water Conservation & Efficiency Plan 115 5 1 3 4 10 24 0 5 10 15 20 25 30 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 1. Require that the sprinkler systems in new commercial developments and residential properties with 5 or more units have weather-based controllers and high efficiency sprinkler nozzles. 12 7 7 6 3 12 0 2 4 6 8 10 12 14 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 2. Require realtors to submit a certificate of compliance to the City that verifies a plumber has inspected the property and efficient fixtures were either already installed or were installed before close of escrow. 5 0 2 5 7 28 0 5 10 15 20 25 30 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 3. Require that the sprinkler systems in new commercial developments and residential properties with 5 or more units have weather-based controllers and high efficiency sprinkler nozzles. 4 0 4 8 7 24 0 5 10 15 20 25 30 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 4. Develop water efficient landscape design standards for new development projects. These standards may include: climate appropriate landscaping, turf ratios to reduce the amount of high water use turf grass in the landscape, water smart plant selection, 401 City of Bozeman Water Conservation & Efficiency Plan 116 10 4 8 6 2 17 0 2 4 6 8 10 12 14 16 18 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 5. Require the design and installation of sprinkler systems be completed by water efficient certified contractors. The City would host training to certify the contractors. 9 3 1 9 5 17 0 2 4 6 8 10 12 14 16 18 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 6. Require dedicated irrigation meters in multi-family and commercial developments (new developments and renovation projects), and large landscapes. 8 4 5 9 8 17 0 2 4 6 8 10 12 14 16 18 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 7. Local landscape ordinance for new development that would aim to reduce outdoor water through the implementation of landscape and irrigation performance and design standards, including requiring a maximum applied water allowance for all landscapes. 7 1 3 6 7 23 0 5 10 15 20 25 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 8. Develop an impact fee credit for developers that will offset some of the costs associated with more expensive water smart landscaping. 402 City of Bozeman Water Conservation & Efficiency Plan 117 Part 2: Incentives and Resources 23 19 18 20 27 30 36 Purchases of water-smart plants Turf area conversions to low water-using turf varieties (rebate per sq foot) Turf area conversions to permeable surfaces (permeable pavers, mulch, etc.) Turf area conversions to water-smart plants (rebate per sq foot) Leak detection devices / flow sensors Indoor fixtures and appliances (toilets, faucets, showerheads, clothes washers) Irrigation equipment (weather-based irrigation controllers, irrigation nozzles rain sensors, drip irrigation equipment) Overall score of each program measure 10. Which of the following rebates would you use (residential and commercial)? Select all that apply. 13 24 16 20 11 12 22 25 13 26 Local certified water efficient landscapers (ex. the City would host courses to certify local landscapers). City staff dedicated to working with developers and local designers on water efficient development. Workshops and education sessions geared toward developers Workshops and educational sessions Awards to showcase local projects Indoor water use surveys to help identify ways to increase efficiency Sprinkler System Assessments (outdoor water use surveys) Free efficient fixtures (faucet aerators, showerheads, hose nozzles, etc.) Educational resources and awareness campaigns (print media, social media, bill stuffers, etc.) Online water use portal to track water use (Dropcountr) Overall score of each program measure 11. What resources would you benefit the most? Select all that apply. 403 City of Bozeman Water Conservation & Efficiency Plan 118 City of Bozeman Water Conservation Plan Survey Results The City of Bozeman is currently developing a water conservation plan that will guide the water conservation program for the next 20 years. Input and feedback from local stakeholders is important to ensure that the plan aligns with the goals and needs of the community. To obtain this input the City developed surveys for various stakeholder groups. We appreciate you taking the time to take the landscaping community survey and provide us with your input. The next step of the water conservation plan development process is evaluating program measures to determine which measures will be included in the plan. The survey results will be utilized during this process by providing valuable insight on which program measures the local community supports and opposes. However, the survey results will not solely determine which measures are included in the plan. Other criteria such as achievable water savings, available technology/market maturity, service area match, customer equity, etc. will all be considered in determining which measures are included in the plan. A summary of the landscape community survey results is included below. Landscape Survey Details Number of Survey Participants: 22 Outreach Methods: Direct email Survey Dates: 6/29/2021 – 7/16/2021 Survey Participants Owner of landscaping company 23% Owner of irrigation company 16% Employee of landscaping or irrigation company 13% Landscape designer 19% Landscape architect 16% Other 13% Survey Participants 404 City of Bozeman Water Conservation & Efficiency Plan 119 Part 1: Programs and Regulations The water conservation plan will include recommendations for regulatory change, new programs and initiatives, water rate changes, etc. Your input will help prioritize which of these initiatives are included in the plan. Of the following, please indicate the level you would support or oppose the following programs and regulations. (0 = Strongly Oppose, 5 = Strongly Support) 71 76 85 71 89 95 6. Develop an impact fee credit for developers that will offset some of the costs associated with more expensive water smart landscaping. 5. Local landscape ordinance for new development that would aim to reduce outdoor water through the implementation of landscape and irrigation performance and design standards, including requiring a maximum applied water allowance for all landscapes. 4. Require dedicated irrigation meters in multi-family and commercial developments (new developments and renovation projects), and large landscapes. 3. Require the design and installation of sprinkler systems be completed by water efficient certified contractors. The City would host training to certify the contractors. 2. Develop water efficient landscape design standards for new development projects. 1. Require that the sprinkler systems in new commercial developments and residential properties with 5 or more units have weather-based controllers and high efficiency sprinkler nozzles. Overall score of each program measure Summary of Programs & Regulations 405 City of Bozeman Water Conservation & Efficiency Plan 120 0 1 1 2 4 14 0 2 4 6 8 10 12 14 16 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 1. Require that the sprinkler systems in new commercial developments and residential properties with 5 or more units have weather-based controllers and high efficiency sprinkler nozzles. 0 1 4 0 5 12 0 2 4 6 8 10 12 14 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 2. Develop water efficient landscape design standards for new development projects. These standards may include: climate appropriate landscaping, turf ratios to reduce the amount of high water use turf grass in the landscape, water smart plant selection, 2 2 4 1 7 6 0 1 2 3 4 5 6 7 8 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 3. Require the design and installation of sprinkler systems be completed by water efficient certified contractors. The City would host training to certify the contractors. 2 0 3 0 6 11 0 2 4 6 8 10 12 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 4. Require dedicated irrigation meters in multi-family and commercial developments (new developments and renovation projects), and large landscapes. 406 City of Bozeman Water Conservation & Efficiency Plan 121 3 0 2 3 4 5 0 1 2 3 4 5 6 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 5. Local landscape ordinance for new development that would aim to reduce outdoor water through the implementation of landscape and irrigation performance and design standards, including requiring a maximum applied water allowance for all landscapes. 4 1 1 4 4 8 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 6. Develop an impact fee credit for developers that will offset some of the costs associated with more expensive water smart landscaping. 4 1 3 3 4 6 0 1 2 3 4 5 6 7 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 7. Develop monthly water budgets for outdoor water use. Water budgets estimate how much water is needed to maintain a healthy landscape. Water budgets would be designed specifically for your landscape and would be based on factors such as size of irrigate 407 City of Bozeman Water Conservation & Efficiency Plan 122 Part 2: Incentives and Resources 7 13 10 12 11 6 Drip irrigation High efficiency irrigation nozzles Purchases of water-smart plants Rain sensors Turf area conversions to low water-using turf varieties (rebate per sq foot) Turf area conversions to permeable surfaces (permeable pavers, mulch, etc.) Overall score of each program measure 10. Which of the following rebates would you use (residential and commercial)? Select all that apply. 9 9 11 10 5 9 8 Awards to showcase local projects City staff dedicated to working with developers and local designers on water efficient development Educational resources and awareness campaigns (print media, social media, bill stuffers, etc.) Free workshops and educational sessions about efficient outdoor water use and landscaping More demonstration gardens around town Sprinkler system assessments / outdoor water use surveys Water smart landscaping classes (ex. Irrigation Association classes) hosted by the City for local landscapers Overall score of each program measure 11. What resources would you benefit the most? Select all that apply. 408 City of Bozeman Water Conservation & Efficiency Plan 123 City of Bozeman Water Conservation Plan Survey Results The City of Bozeman is currently developing a water conservation plan that will guide the water conservation program for the next 20 years. Input and feedback from local stakeholders is important to ensure that the plan aligns with the goals and needs of the community. To obtain this input the City developed surveys for various stakeholder groups. We appreciate you taking the time to take the property management survey and provide us with your input. The next step of the water conservation plan development process is evaluating program measures to determine which measures will be included in the plan. The survey results will be utilized during this process by providing valuable insight on which program measures the local community supports and opposes. However, the survey results will not solely determine which measures are included in the plan. Other criteria such as achievable water savings, available technology/market maturity, service area match, customer equity, etc. will all be considered in determining which measures are included in the plan. A summary of the property management survey results is included below. Property Management Survey Details Number of Survey Participants: 14 Outreach Methods: Direct email Survey Dates: 6/29/2021 – 7/16/2021 Part 1: Programs and Regulations The water conservation plan will include recommendations for regulatory change, new programs and initiatives, water rate changes, etc. Your input will help prioritize which of these initiatives are included in the plan. Of the following, please indicate the level you would support or oppose the following programs and regulations. (0 = Strongly Oppose, 5 = Strongly Support) 55 61 64 42 58 5. Require dedicated irrigation meters in multi-family and commercial developments (new developments and renovation projects), and large landscapes. 4. Develop water efficient landscape design standards for new development projects. 3. Require that the sprinkler systems in new commercial developments and residential properties with 5 or more units have weather-based controllers and high efficiency nozzles. 2. Require realtors to submit a certificate of compliance to the City that verifies a plumber has inspected the property and efficient fixtures were installed. 1. Require the installation of high-efficiency toilets, lavatory faucets, kitchen faucets, and showerheads in all new developments. Overall score of each program measure Summary of Programs & Regulations 409 City of Bozeman Water Conservation & Efficiency Plan 124 0 0 2 2 2 8 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 1. Require the installation of high- efficiency toilets, lavatory faucets, kitchen faucets, and showerheads in all new developments. 3 1 2 1 1 6 0 1 2 3 4 5 6 7 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 2. Require realtors to submit a certificate of compliance to the City that verifies a plumber has inspected the property and efficient fixtures were either already installed or were installed before close of escrow. 0 0 0 2 2 10 0 2 4 6 8 10 12 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 3. Require that the sprinkler systems in new commercial developments and residential properties with 5 or more units have weather-based controllers and high efficiency sprinkler nozzles. 0 0 1 2 2 9 0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 4. Develop water efficient landscape design standards for new development projects. These standards may include: climate appropriate landscaping, turf ratios to reduce the amount of high water use turf grass in the landscape, water smart plant selection, 410 City of Bozeman Water Conservation & Efficiency Plan 125 Part 2: Water Rates The water conservation plan will include recommendations for changes to Bozeman's current water rate structure. All of the water rate options being evaluated are designed to curb excessive outdoor water use by sending price signals to customers. Bozeman currently uses a tiered rate structure for single family customers that includes four tiers. This ensures customers pay for the true cost of their usage and keeps the cost of water for essential uses to a minimum. As water usage increases and moves into higher tiers, the per unit price of water increases. 0 0 2 1 2 8 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 5. Require dedicated irrigation meters in multi-family and commercial developments (new developments and renovation projects), and large landscapes. 53 54 46 8. Develop monthly water budgets for outdoor water use. Water budgets estimate how much water is needed to maintain a healthy landscape. Water budgets would be designed specifically for your landscape. 7. For commercial and large landscape accounts, install irrigation-only water meters to measure outdoor water use and create a billing rate specifically for irrigation. 6. Adopt tiered rates for commercial and multi-family units (single family tiered rates will remain in effect). Overall score of each program measure Summary of Water Rates 411 City of Bozeman Water Conservation & Efficiency Plan 126 0 1 1 3 1 6 0 1 2 3 4 5 6 7 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 6. Adopt tiered rates for commercial and multi-family units (single family tiered rates will remain in effect). 0 2 1 1 3 7 0 1 2 3 4 5 6 7 8 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 7. For commercial and large landscape accounts, install irrigation-only water meters to measure outdoor water use and create a billing rate specifically for irrigation. 0 1 2 2 3 6 0 1 2 3 4 5 6 7 0 1 2 3 4 5Number of Responses0 = Strongly Oppose, 5 = Strongly Support 8. Develop monthly water budgets for outdoor water use. Water budgets estimate how much water is needed to maintain a healthy landscape. Water budgets would be designed specifically for your landscape and would be based on factors such as size of irrigated area. 412 City of Bozeman Water Conservation & Efficiency Plan 127 Part 3: Incentives and Resources 12 11 13 10 11 5 Free efficient fixtures (faucet aerators, showerheads, hose nozzles, etc.) High efficiency Indoor fixtures and appliances (toilets, faucets, showerheads, clothes washers) High efficiency sprinkler system equipment (weather-based sprinkler system controllers, sprinkler nozzles, rain sensors, drip irrigation equipment) Leak detection / flow sensors Purchases of water-smart plants Turf area conversions to low water-using turf varieties (rebate per sq foot) Overall score of each program measure 10. Which of the following rebates would you use (residential and commercial)? Select all that apply. 9 4 8 9 7 5 9 City staff dedicated to working with developers and local designers on water efficient development. Educational resources and awareness campaigns (print media, social media, bill stuffers, etc.) Free indoor water use surveys Free workshops and educational sessions about efficient outdoor water use and landscape choices Local certified water efficient landscapers (ex. the City would host courses to certify local landscapers) Online water use portal to track water use (Dropcountr) Sprinkler system assessments / outdoor water use surveys Overall score of each program measure 11. What resources would you benefit the most? Select all that apply. 413 City of Bozeman Water Conservation & Efficiency Plan 128 APPENDIX I – WATER ADEQU A CY CODE 414 City of Bozeman Water Conservation & Efficiency Plan 129 415 City of Bozeman Water Conservation & Efficiency Plan 130 APPENDI X J – NET BLUE WATER OFFSET P ILOT S TUDY 416 City of Bozeman Water Conservation & Efficiency Plan 131 417 City of Bozeman Water Conservation & Efficiency Plan 132 418 City of Bozeman Water Conservation & Efficiency Plan 133 419 City of Bozeman Water Conservation & Efficiency Plan 134 420 City of Bozeman Water Conservation & Efficiency Plan 135 421 City of Bozeman Water Conservation & Efficiency Plan 136 422 City of Bozeman Water Conservation & Efficiency Plan 137 423 City of Bozeman Water Conservation & Efficiency Plan 138 424 City of Bozeman Water Conservation & Efficiency Plan 139 425 City of Bozeman Water Conservation & Efficiency Plan 140 426 City of Bozeman Water Conservation Program Report 2015-2022 427 000000 2015-2022 City of Bozeman Water Conservation Program Report Contents Introduction .................................................................................................................................................. 4 2013 Integrated Water Resources Plan .................................................................................................... 4 Program Goals........................................................................................................................................... 4 Water Demand.......................................................................................................................................... 4 Historical and Current Trends: All Customer Classes............................................................................ 4 Seasonal and Residential Trends .............................................................................................................. 7 Water Conservation Rebates and Free Products.......................................................................................... 9 Indoor Rebates.......................................................................................................................................... 9 Outdoor Rebates.....................................................................................................................................10 Rebate Incentive Water Savings Achieved .............................................................................................11 Free Products ..........................................................................................................................................12 Education, Outreach and Engagement.......................................................................................................13 Website Resources..................................................................................................................................13 Water Conservation Videos ....................................................................................................................13 Water Smart Bozeman Campaign...........................................................................................................14 Bozeman Water Smart Guides................................................................................................................14 Water Smart Planting Guide...............................................................................................................15 Water Smart Indoor Guide..................................................................................................................15 Irrigation Outreach Campaign ................................................................................................................15 Drought Campaign ..................................................................................................................................16 Dropcountr Water Use Portal .................................................................................................................17 Sprinkler System Assessments ................................................................................................................18 2015-2022 City of Bozeman Water Conservation Program Report 1 | Page 428 Commercial Water Audits/Site Assessments..........................................................................................19 Customer Engagement Resources......................................................................................................20 Drought Tolerant Demonstration Gardens.............................................................................................20 Museum of the Rockies.......................................................................................................................20 City Hall ...............................................................................................................................................21 N. 7th Ave. Street Medians ..................................................................................................................21 Bozeman Public Library.......................................................................................................................22 N 27th Ave. Street Medians .................................................................................................................22 Bozeman Public Safety Center ............................................................................................................22 Events and Presentations........................................................................................................................22 Bozeman Farmers’ Market..................................................................................................................22 Fix-a-Leak Week..................................................................................................................................23 Montana State University’s Catapalooza............................................................................................23 Sweet Pea Festival Parade ..................................................................................................................23 Water Bottle Fill Station......................................................................................................................23 Water Wise Landscaping Seminars.........................................................................................................24 Landscape and Irrigation Industry Education and Course Offerings ......................................................24 Irrigation Association Classes..............................................................................................................25 Qualified Water Efficient Landscaper Classes.....................................................................................25 Kid Activity Kits........................................................................................................................................25 Project WET School Curriculum ..............................................................................................................26 Utility Management....................................................................................................................................27 Senior Center Bulk Retrofit .....................................................................................................................27 City Park Central Irrigation Control System ............................................................................................27 City Facility Aerator Installation..............................................................................................................27 City Facility Irrigation Audits...................................................................................................................28 Sunset Hills Cemetery and Lindley Park Water Conservation Project....................................................28 Utility Water Loss Audit ..........................................................................................................................30 Net Blue Water Offset Project ................................................................................................................30 Community Projects....................................................................................................................................31 HRDC Low Income Bulk Retrofit Project.................................................................................................31 MSU Native Grasses Project ...................................................................................................................31 Drought Management ................................................................................................................................32 2015-2022 City of Bozeman Water Conservation Program Report 2 | Page 429 Tiered Rate Structure..................................................................................................................................34 Permanent Outdoor Water Use Restrictions..............................................................................................34 Exemptions..........................................................................................................................................35 Enforcement .......................................................................................................................................35 Water Conservation Plan ............................................................................................................................35 2015-2022 City of Bozeman Water Conservation Program Report 3 | Page 430 Introduction 2013 Integrated Water Resources Plan The 2013 Integrated Water Resources Plan (IWRP) is a proactive long-range plan which resulted from the City of Bozeman’s recognition that continued population growth will occur into the future and eventually result in water demands that will exceed available water supplies. The City’s existing water supply sources are finite; thus, new supplies must be developed, and demand must be reduced to meet projected future needs. The IWRP identifies water supply and use policies and practices for future consideration and recommends that water conservation be cornerstone to Bozeman’s water resource management. Specifically, the IWRP recommends that roughly fifty percent of the projected water supply/demand gap be reduced through water conservation. Water conservation, also known as demand management, generates additional water supply for the future by using water more efficiently today. The City Commission’s adoption of the IWRP and the IWRP Implementation Plan highlights the significant role that water conservation plays in addressing the city’s long-term water supply needs. Program Goals The goal of the City of Bozeman’s Water Conservation Program is to protect and enhance water resources through conservation in order to meet the IWRP’s 50-year demand reduction target. The program objectives include (i) establishing and strengthening the community’s water conservation ethic; (ii) ensuring adequate supplies are available to meet current and future customer demands; (iii) ensuring adequate supplies are available in times of drought for emergency response and long term drought mitigation. The strategies implemented to facilitate the achievement of the goal include (i) providing an equitable distribution of water conservation benefits throughout all of the customer classes and the community; (ii)utilizing a variety of methods to raise awareness of the value of water, ways to conserve, and to encourage participation in initiatives; and (iii) developing mechanisms to track and forecast demands and evaluate and modify elements of the Program as needed. Water Demand Historical and Current Trends: All Customer Classes As population continues to grow in Bozeman, total water demand is increasing at a much lower rate. As illustrated in Figure 1, total population has grown by over 106% from 2000 to 2022 while total water use has only increased by roughly 26% over this time, indicating that water use efficiency is becoming more commonplace among customers, especially in recent years (2014-2022). This trend is likely a result of the City’s Water Conservation Program initiatives, changing development patterns, and the Energy Policy Act of 1992, which set maximum flow rates and flush volumes for bathroom fixtures. 2015-2022 City of Bozeman Water Conservation Program Report 4 | Page 431 2000 -2022 Population and Total Water Demand {gallons) All Customer Classes 60,000 .... .... .... .... .... 50,000 2,000 ····•••• V) C _Q ...... ····· ••••• 40,000 C n:, (.9 1,500 ·········••• •••• ···••••• 0 ~~-:.:; '+-0 ~~---· n:, V) ~~---········· ::::, C 30,000 g- .Q ~ ·•••• o.. 1,000 ~ 20,000 500 10,000 0 0 -TOTAL CUSTOMER USE (GAL) -POPULATION Figure 1. Population and Total Water Demand (gallons) from 2000 – 2022 for All Customer Classes Figure 2 displays the average proportion of annual water demand consumed by each of the City’s customer classes. Residential customers (single family and multi-family) represent 64% of total annual water demand. Over 13,000 of the 14,750+ connections in the City’s service area are residential. Commercial customers consume about 23% of total annual demand, with MSU (8%), government (3%), and industrial (2%) accounts making up the rest. 2015-2022 City of Bozeman Water Conservation Program Report 5 | Page 432 Annual Water Demand by Customer Class (2022) ■ Commercial ■ Government ■ Industrial ■ MSU ■ Multi-Family ■ Single Family Figure 2. Percent Annual Water Demand by Customer Class (2022) Water consumption is often characterized by daily per person use, measured in gallons per capita per day (GPCD), which can serve as a useful indication of water conservation program effectiveness such that it accounts for population growth. When evaluating GPCD demand and correlating these trends to program effectiveness, it is important to look at demand trends over the course of multiple years, as year to year fluctuations in weather can have a large impact on outdoor water use. For these purposes, the total annual average GPCD is calculated as total annual water use (measured as the sum of annual demand from each metered connection; includes all customer classes) divided by service area population divided by 365 days. Evaluating GPCD demand using this formula provides average demand trends across all customer classes, which is necessary for informed program planning and evaluation, and provides guidance as to where program efforts should be focused. total annual demand from all metered connections Total Annual Average GPCD = _______________________________________________ service area population / 365 days GPCD can also be calculated to identify trends in water use among a specific customer class or during certain times of the year by adjusting the variables outlined in the equation above. 2015-2022 City of Bozeman Water Conservation Program Report 6 | Page 433 Population & Gallons Per Capita Per Day (GPCD) Water Demand (2013-2022) 60,000 140 120 50,000 •••••··· ••••••·· ••••··· •••••···· 100 40,000 •••••••····· C 0 :;:; 80 0 (11 ::i 30,000 u a.. a. 0 60 \.9 a.. 20,000 40 10,000 20 0 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 -GPCD (Demand) ~POPULATION 116 GPCD 100 GPCD Figure 3. Gallons Per Capita Per Day Water Demand and Population (2013-2022); All Customer Classes Total annual average GPCD demand has exhibited a downward trend despite population growth and an increase in metered connections over the last ten years. Specifically, total annual average GPCD from 2013-2017 was 116, and total annual average GPCD from 2018-2022 was 100, as illustrated in Figure 3. This represents a total 5-year average GPCD decrease of 14% since the inception of the Water Conservation Program.1 Seasonal and Residential Trends Due to the high proportion of residential water demand and the high outdoor water use observed within the residential customer classes, evaluating residential water use trends is important to best target Water Conservation Program efforts. Residential water demand fluctuates significantly throughout the year, as much of the water consumed in the summer months is used on lawns and landscapes. Figure 4 illustrates water demand patterns for all customer classes throughout the year. Summer season demands from June through September increase dramatically across the single family customer class. 1 The Water Conservation Program initiatives began in 2014, after the adoption of the 2013 Integrated Water Resources Plan (except for the toilet rebate program, which began in 2008). 2015-2022 City of Bozeman Water Conservation Program Report 7 | Page 434 Monthly Water Demand by Customer Class (2013 -2022) 140 120 100 ■ Commercial ■ Government ~ 80 .2 ro ■ Industrial lD 60 C ■MSU .Q ~ ■ 40 Multi-Family ,: I.. II L II ■ Single Family I.. 111..111..1 I. I.I I. •• 1..ill 1JI 1.. II Figure 4. Average Monthly Water Demand by Customer Class (2016-2022) Total annual average residential water demand, which includes the single family and multi-family customer classes only, has declined overall over the last ten years from 75 GPCD in 2013 to 58 GPCD in 2022. Peak average residential demand (observed during the months of July and August when outdoor watering is at its highest), has also declined overall, from 148 GPCD in 2013 to 113 GPCD in 2022. Summer water use trends (specifically, use that occurs in June through September) can fluctuate dramatically from one year to the next due to the strong correlation between outdoor water use and local weather conditions. Specifically, outdoor water use trends closely with net evapotranspiration (net ET). Net ET is the sum of precipitation received and water lost to evaporation and plant transpiration and represents the amount of supplemental irrigation water required to maintain plant health (in units of inches). The higher the net ET, the more water plants require to remain healthy, and the more supplemental irrigation is applied to maintain plant health. This relationship is demonstrated in Figure 5, which shows single family water use trends against net ET trends. 2015-2022 City of Bozeman Water Conservation Program Report 8 | Page 435 Average Single Family Seasonal Water Use {2016-2020) Gallons Per Meter Per Day {GPMD) 600 9 500 8 V, Q) 7 .<::: 400 u 0 .!: ~ 6 " 0.. ',:)_ "' C: / 66o/cl 5 300 ~ E ::) Q) 0 4 I-w z -~ 200 Q) $ "' 3 2 1 0 I March I I 0 January I 100 February April May June July August September October I November I December I -Indoor Use (GPMD) -Outdoor Use (GPMD) Average Net ET 10 Figure 5. Average Single Family Seasonal Water Use (2016-2020) represented as Gallons per Meter per Day2 On average, 70% of total single family water use in the summer months goes to watering lawns and landscapes. Based on the data included in Figure 5, in peak months of July and August, when conditions are exceptionally hot and dry, the average single family home consumes about 480 gallons of water p er day. Of the 480 gallons consumed per home per day in July and August, only 113 are used inside the home for essential uses. Water Conservation Rebates and Free Products The Water Conservation Program provides free water saving products and offers rebate incentives for the installation of high efficiency indoor fixtures and appliances, as well as outdoor irrigation components and water-efficient landscaping. Free products and rebate incentives are a critical, cost- effective initiative to help achieve real, measurable water savings throughout the community. Indoor Rebates Indoor rebates are offered to water customers for the installation of WaterSense® labeled high efficiency toilets and showerheads, as well as high efficiency clothes washers that meet CEE Tier® specification, which use at least 20% less water than standard counterparts without compromising performance. Table 1 displays the total number of indoor rebate products installed from 2015 – 2022. Complimentary high efficiency showerheads provided to residents through the Showerhead SWAP Program are included in the showerhead rebate data in Table 1. Three high efficiency urinal rebates were also issued in 2022. 2 2021 and 2022 water use data were excluded from this graph because they were not representative of the correlation between outdoor water use and net ET due to a Stage 2 drought declaration in 2021 in which outdoor watering was limited to two days per week, and the implementation of permanent outdoor watering restrictions in 2022 which limited outdoor watering to three days per week. 2015-2022 City of Bozeman Water Conservation Program Report 9 | Page 436 10 | Page Table 1. Number of Indoor Rebate Products Installed (2015 - 2022) 2015 2016 2017 2018 2019 2020 2021 2022 Toilets Pre-19963 162 225 122 122 75 72 70 61 Toilets Post-1996 28 160 97 188 61 33 80 50 Clothes Washers 158 127 135 140 93 94 50 47 Showerheads N/A 1 155 143 152 58 28 19 Outdoor Rebates Outdoor rebates are offered to water customers for the installation of high efficiency irrigation system components, drought tolerant plants, and the removal of high water use turfgrass. More specifically, rebates are provided for the following: 1. Weather-based ‘smart’ irrigation controllers use local weather and landscape conditions to make decisions about sprinkler system watering duration and frequency to best match plant water needs. 2. Multi-stream, multi-trajectory (MSMT) nozzles deliver water more efficiently than fixed spray nozzles, in which 50% of the water can be lost to evaporation and wind drift. 3. Rain sensors override the sprinkler system when a certain amount of rain has fallen to shut off the system. When the sensor dries, it opens the connection to allow the system to resume normal operations. 4. Drip irrigation delivers water directly to plant roots, minimizing water lost to evaporation, wind drift and runoff. 5. Drought tolerant plants require less maintenance than turfgrass and use 75% less water. 6. Turf removal results in significantly decreased outdoor water use when replaced with drought tolerant plants or other p ervious material. 2015 2016 2017 2018 2019 2020 2021 2022 MSMT Nozzles 150 664 1015 1144 707 633 2157 496 WaterSense® Irrigation Controllers 6 13 16 35 26 19 20 17 Rain Sensors 6 7 18 20 15 11 3 2 Drip Irrigation N/A N/A 8 12 7 3 5 8 Drought Tolerant Plants N/A N/A 16 18 20 21 31 43 Turf Removal N/A N/A N/A N/A N/A N/A N/A 48 Table 2. Number of Outdoor Rebate Products Installed (2015 – 2022) 4 Table 2 outlines the total number of outdoor rebate products installed from 2015-2022. The drip irrigation and drought tolerant plant rebates began in 2017. The turf removal rebate began in 2022. 3 High efficiency toilets that replace standard counterparts installed prior to 1996 are assumed to result in a higher water savings due to the Energy Policy Act of 1992, which decreased the standard flush volume from 3.5 gallons/flush to 1.6 gallons/flush. As such, the installation of a high efficiency toilet in place of a ‘pre-1996’ toilet is issued a higher rebate amount than those installed after 1996 (i.e., ‘post-1996’). 4 The WaterSense® irrigation controller, MSMT nozzle, and rain sensor values represent total products installed. The drip irrigation, drought tolerant plant, and turf removal values represent total rebates issued. Actual quantities of drip irrigation components and drought tolerant plants installed, as well as square footage of turf removed, are much higher. 2015-2022 City of Bozeman Water Conservation Program Report 437 Rebate Incentive Water Savings Achieved It is estimated that over 20.3 million gallons of water have been saved through the City’s indoor rebates from 2015-2022, as represented in Figure 6. Estimated Water Savings by Indoor Rebated Product (2015-2022) 4,000,000 3,000,000 "C ■-., C: ~ C: u 0 2,000,000 "' C: -2 -.; \:, 1,000,000 -- 2015 2016 2017 2018 2019 2020 2021 2022 Installation Year ■ Toilets ■ Clothes Washers ■ Showerheads Figure 6. Estimated gallons of water saved through the City’s indoor rebate program (2015 – 2022) It is estimated that over 7.9 million gallons of water have been saved through City’s outdoor rebates from 2015-2022, as represented in Figure 7. Estimated Water Savings by Outdoor Rebated Products by Year (2015-2022) 1,500,000 1,200,000 "C ., ., C: "' C: 900,000 u 0 "' C: -2 600,000 -.; l.!l 300,000 2015 2016 2017 2018 2019 2020 2021 2022 Installation Year ■ Nozzles ■ Smart Controllers ■ Rain Sensors ■ Drip ■ DT Plant ■ Turf Removal Figure 7. Estimated gallons of water saved through the City’s outdoor rebate program (2015 – 2022) 2015-2022 City of Bozeman Water Conservation Program Report 11 | Page 438 It is estimated that 28.2 million gallons of water is saved annually through all rebated products installed from 2015 – 2022. This is enough water to support 346 single family homes or 692 multifamily residences. Free Products The Water Conservation Program provides free water saving fixtures and products to water customers to encourage water efficiency and ensure that water conservation is accessible and equitable for all City water users. Free products are provided to reduce indoor and outdoor water use. Indoor Products Toilet Dye Tabs: Simple blue dye tabs dropped into the toilet tank which will cause the toilet bowl to turn blue if a leaking toilet flapper is detected. 3” Universal Toilet Flappers: If a water customer detects a leak using a toilet dye tab, they likely need to replace their toilet flapper. The City has 3” universal toilet flappers available for all City water users, which are compatible with most modern toilets. Toilet Tank Displacement Bags: Toilet tank displacement bags can be filled with water and placed inside the tank to achieve the required water level in the tank, while decreasing the water needed to actually flush the toilet. This product is only recommended for toilets rated at 3.5 gallons/flush or greater. Faucet Aerators: Faucet aerators introduce air into the stream of water on a faucet, thus decreasing water consumption without compromising pressure. 1.0 gallon/minute WaterSense® labeled dual- thread faucet aerators are available for household use and 0.5 gallon/minute WaterSense® labeled aerators are available for commercial use. From 2019 to 2022, the City has given out over 350 aerators which have the potential of saving over 3,300 gallons a day. Showerheads: Free high efficiency 1.5 gallon/minute WaterSense® labeled showerheads are offered to customers through the Showerhead SWAP program. Customers must bring in their old inefficient showerhead to swap it out for a new, high efficiency showerhead. Standard showerheads use 2.5+ gallons/minute, meaning residents can save over one gallon of water for every minute of showering. The number of showerheads provided to water customers free of charge is included in the ‘Showerheads’ section in Table 1. Shower Timers: It’s easy to lose track of time in the shower. A five minute shower timer reminds residents to only take 5 minute showers. A suction cup included on the back of the timer allows for the timer to attach directly onto the shower wall. Fix-A-Leak Kits: The contents of this kit are included in a water-proof bag for easy under-the-sink storage and equips residents with all of the knowledge and supplies needed to fix common household leaks. The kit includes an assortment of hose bibs and O-rings, Teflon tape, silicone grease, toilet dye tabs, a drip gauge, shower timer, and a faucet aerator. It also includes an informative plumbing guide created by the Alliance for Water Efficiency to empower residents to identify and fix leaks themselves, eliminating costs associated with hiring a professional plumber. 2015-2022 City of Bozeman Water Conservation Program Report 12 | Page 439 Pre-Rinse Spray Valves (PRSVs): Traditional PRSVs are rated at 3 gallons/minute or higher. The City’s 1.15 gallon/minute spray valves decrease the water used to spray down dishes without compromising water pressure and performance, ensuring the spray down is effective. Outdoor Products: Summer Savings Kits: This kit includes a positive pressure handheld garden hose nozzle, a soil moisture sensor, and rain gauge. These items equip residents to water only when the soil requires it, and eliminate wasteful watering associated with continuous spray hose end sprinklers. Mulch: Self-serve arborist wood mulch is available at two locations in the City. A 3-to-4-inch layer of mulch around trees, shrubs, and other garden plants has been shown to dramatically decrease plant watering needs by retaining soil moisture. Education, Outreach and Engagement Education, outreach and engagement efforts are the foundation of the City’s Water Conservation Program. Without a robust public outreach initiative, water customers will be unaware of the need to conserve water and resources available to reduce water use. Website Resources The first phase of the Water Conservation Division’s website went live in March 2015 and included information about the value of water, the benefits of water conservation, water resource planning information, the 2014 Bozeman Awareness and Conservation Survey, applications for indoor rebates, a home use water calculator, and other resources. As the Water Conservation Program continues to grow, so does the Program’s website content. The website now includes numerous subpages, including but not limited to residential and commercial indoor rebates, residential and commercial outdoor rebates, free products, information about the Dropcountr free water use portal, drought management, permanent outdoor watering restrictions, sprinkler system assessments, commercial water audits, drought tolerant demonstration gardens, and a suite of water-smart educational resources with indoor and outdoor water use efficiency tips and information. Next steps for the Division’s website include developing and displaying a weekly recommended watering schedule catered to Bozeman residents during the summer months, additional educational resources, and an interactive dashboard displaying Program achievements. Program achievements are a direct reflection of community efforts in advancing water c onservation. These efforts serve as an excellent example that it takes each and every one of us to conserve water for the future and that together these efforts make a big impact. All outreach materials produced, whether in print, online, or on the radio, direct customers to the Utilities Department website where the Water Conservation webpages can be accessed for more information. Water Conservation Videos In 2017, the Water Conservation Program created a video titled “Water in Bozeman: The Big Picture”, which is made available on the Program website. The four-and-a-half-minute video tells the story of 2015-2022 City of Bozeman Water Conservation Program Report 13 | Page 440 Bouman relles on snowpack for Its water supply, with BOo/, coming from snowmell in the Gallatin Range, which feeds Bozeman Creek Qnd Hyalite Creek. The other 20'!. comes from a developed spring at the headwaters of Lyman Creek in the Bridger Range. Bozeman enjoys extremely high-quality waler, but quantity Is llmlted. With only 16 Inches of average annual precipitation, Bozeman is considered semi-arid and droughl•prone. where Bozeman’s water comes from and why conserving Bozeman’s limited water supplies is so important. The video also highlights how the Water Conservation Program is working with schools to inform students on where their water comes from and how they can work together to conserve it. In 2022, the Water Conservation Division worked in collaboration with the City’s Communication and Engagement team to develop a video titled “What’s the Plan? Bozeman’s Water Future”, which is made available on the Utilities Department website. The two-minute video describes Bozeman’s finite water supplies and efforts the City is undertaking to ensure that it can meet growing demands into the future. Water Smart Bozeman Campaign Many Bozeman residents do not know where their water comes from, nor do they recognize the finite nature of the City’s water supply. Without this understanding, residents are less likely to recognize the importance of conserving water supplies now to ensure a reliable water supply for the future. Information about Bozeman’s water supply is regularly incorporated into the Program’s outreach materials. Outreach materials are accompanied by the Program’s slogan, ‘Water Smart Bozeman: Doing One Thing Makes A Difference’, which is intended to convey the importance of everyone doing their part to save water to ensure a reliable Iwater supply for Bozeman’s future. re mage 1. Water-Smart Bozeman campaign image that educates sidents about where Bozeman’s water comes from Bozeman Water Smart Guides To support ongoing Water Smart Bozeman campaign efforts, print publications were prepared to educate the community about the many innovative and impactful ways residents can take action to conserve water in their daily lives. 2015-2022 City of Bozeman Water Conservation Program Report 14 | Page 441 Water Smart Planting Guide In 2016, the Water Conservation Program produced the first annual Water Smart Planting Guide. Distributed every spring as a supplement in the Bozeman Daily Chronicle, this 31 page booklet includes information on Bozeman’s water supply, drought information, recommended outdoor watering practices, understanding and evaluating your irrigation system, landscape and soil health tips, composting instructions, outdoor rebate information, tips for DIY landscape makeovers, examples of how the City is doing its part to conserve water, and 10 pages of drought tolerant plants that qualify for a rebate. After being distributed in the Chronicle, the Guide is made available to residents at local plant nurseries, City offices, demonstration garden sites, and other outreach events throughout the summer months. A digital copy is made available online. Image 2. Cover of the 2022 edition of the Water Smart Plant Guide Water Smart Indoor Guide In 2022, the Water Conservation Program developed a Water Smart Indoor Guide to be made available to residents throughout the year. This 15-page booklet includes information on Bozeman’s drought management, how water is used among various fixtures in the home, understanding your utility statement, identifying and repairing leaks, replacing fixtures, commercial indoor water use audits and incentives, kid activities, how the City is doing its part to conserve indoor water use, and other tips and tricks for reducing indoor water use. After being distributed in the Bozeman Daily Chronicle, the Guide is made available to residents at City offices. A digital copy is made available online. Image 3. Cover of the Water Smart Indoor Guide Irrigation Outreach Campaign With roughly fifty percent of total annual residential water use going into lawns and landscapes in the summer, outdoor water use efficiency education is 2015-2022 City of Bozeman Water Conservation Program Report 15 | Page 442 paramount to Program efforts. The irrigation outreach campaign began in 2016 and runs from May through August each year. It includes information on efficient lawn watering and maintenance practices, how to incorporate drought tolerant plantings into your landscape, outdoor rebates, and more. The campaign includes print ads in the Bozeman Daily Chronicle, online ads, social media ads, and radio ads. The distribution of the Water Smart Planting Guide in the Bozeman Daily Chronicle marks the kick- off of the irrigation campaign. The campaign also includes the distribution of utility statement stuffers to educate water customers on how to most efficiently manage lawn and landscape watering throughout the summer. DROUGHT MET ATER SMART BOZE ----- ~ ~~ : { CRtBATE l~fBozeman 'r---• INSTALL ~ I WAlER SMART 1 PROGRA~/ SPRINKLER 1-~----:--:---;--:l 1 I • It 11 ,, 1 l The c1tu of Bozeman 1s currently r 1 PRODUCJr CONDmDNS I ---- EXPERIENCING NORMAL I for uour lawn ,thapoens: and landscape. Water conservaon Is always encouraged. •ll~CllJ ........ W'1tf~Olllr ..... ,tlt Image 4. A drought campaign advertisement informing residents about the current drought conditions in Bozeman Drought Campaign Upon the adoption of the Drought Management Plan in January 2017, the Program developed a drought education campaign. Due to the unpredictable nature of drought events, it is important to educate community members about drought even during normal or wet years. The Water Conservation Program does this by creating social media posts and print ads that inform the community about Bozeman’s finite water supplies and drought prone climate regardless of season or current drought conditions. The Water Conservation Program carefully considers drought outreach needs based upon local drought conditions at any given time. Messaging will occur on a regular basis and adjust in scope and frequency pursuant to the declared drought stage (if applicable). The Bozeman drought meter was developed as a simple, clear way of communicating current drought conditions to residents. The drought meter is published on the weather page in the Bozeman Daily Chronicle every Friday from June through September and is included on the City’s website. 2015-2022 City of Bozeman Water Conservation Program Report 16 | Page 443 Dropcountr Water Use Portal A key component to using water more efficiently is understanding how it is being used to begin with. The free Dropcountr water use portal provides water customers with the information needed to understand how they are using water inside and outside their home or business, and in turn empowers them to reduce their use. The customer-facing tool, HOME, provides water customers with the ability to track their water use at the yearly/monthly/daily timescale, compare use to similar households and utility-developed water use goals, set usage alerts to manage their bill, see which rate tiers their use falls within (single family customers), and receive leak alerts.5 Water use goals provided in HOME are specific to each customer account. The goal is based on a ‘per person per day’ indoor water use efficiency standard and applied to the number of people in the household. If the customer selects ‘sprinkler system’ in their Dropcountr profile, the goal adjusts during summer months to reflect efficient outdoor water use, which is based on the customer’s irrigable area and net evapotranspiration values for that month. As of 2022, over 3,000 customers are registered for Dropcountr. The water utility tool, CLEAR, provides City staff with geospatially represented end-use information to inform water conservation program efforts. This includes filtering customer accounts for numerous attributes such as account type, consumption, parcel size, percent-irrigated area, etc. Your Personal Water Portal Helping you save water and money. Register today! ,1: dropcountr ,.,.,,,.,.,,, Image 5. Advertisement for the Dropcountr Water Use Portal 17 | Page Image 6. An advertisement generated to promote sprinkler system assessments on the water conservation webpage 5 Daily water usage and leak alerts are only available to water customers with AMI meters that communicate consistently with City data collectors receiving hourly water use data. The City’s water meter replacement program is actively replacing all older meters with AMI meters capable of this data transfer. Customers without AMI meters capable of this functionality are able to access monthly water usage in Dropcountr and benefit from its many other features. 2015-2022 City of Bozeman Water Conservation Program Report 444 Sprinkler System Assessments Roughly fifty percent of annual residential water use goes into lawns and landscapes in the summer. Single family residential customers comprise the city’s largest water user class and the majority of these homes have automatic in-ground sprinkler systems. Over time, even the most efficiently designed irrigation system will begin to break down. In absence of a regular maintenance schedule, minor operation and performance problems can continue for months resulting in excessive water use and poor irrigation efficiency. Sunken sprinkler heads that do not “pop- up” properly, misaligned spray patterns that throw water onto hardscapes, and broken or missing sprinkler heads resulting from snow plowing or mower damage can result in significant water waste if gone unnoticed and unrepaired. Many homeowners do not know the proper duration and frequency for watering lawns, and thus set their irrigation timers to water their landscape more than necessary. In many cases, homeowners “set it and forget it”, or attempt to fix performance issues by overwatering problem areas regardless of the cause. This leads to water waste and often times could be prevented with minor irrigation system adjustments, repairs, and/or upgrades. The Water Conservation Program offers free sprinkler system assessments to address high outdoor water use observed among residential customers in the summer. Sprinkler system assessments are an effective tool for identifying problems within an irrigation system that could be leading to water waste. This free service to residents consists of three main components: (1) site inspection to identify needs of system repairs or opportunities for increasing system efficiency, (2) system performance testing to determine the effectiveness and rate at which the system applies water to the landscape, (3) a customized watering schedule tailored to site conditions and plant water demands. Together, each component of the sprinkler system assessment can result in substantial water savings once the recommended watering schedule and performance upgrades are implemented by the homeowner. Water conservation staff have been trained and certified by the Irrigation Association as landscape irrigation auditors to offer the best service to residents. After performing the sprinkler system assessment, a detailed report is sent to the resident outlining recommendations for improving system efficiency along with a recommended watering schedule and site map outlining sprinkler heads on the property. By the end of the 2022 irrigation season, water conservation staff had completed 457 sprinkler system assessments. It is estimated that 670,000 gallons of water per year is being saved through the implementation of recommended watering schedules (includes all 454 assessments and excludes efficiency repair recommendations). Over 9,000 individual issues were identified and suggested for repair to the homeowner. Additional water savings are likely achieved through system repairs implemented by the homeowner; however, an analysis of those savings estimated has not been completed. Image 7. Water conservation technicians performing a residential sprinkler system assessment 2015-2022 City of Bozeman Water Conservation Program Report 18 | Page 445 Table 3. Sprinkler System Assessment (SSA) Data (2016 - 2022) 2016 2017 2018 2019 2020 2021 20226 Total Number of SSAs 24 42 65 60 91 106 69 457 Sprinkler system issues identified 363 92 828 987 2,579 2,523 2,378 9,750 Watering time reduction (min) -1,394 939 8,114 4,724 11,058 31,924 6,798 66,489 Estimated water savings (gal) --220,823 14,064 127,900 217,286 91,133 671,206 Commercial Water Audits/Site Assessments Bozeman commercial water customers account for about 24% of total City-wide water demand, which is largely comprised of various hospitality and tourism-based establishments. Garnering support for water conservation among the commercial sector is valuable to the City, yet challenging to achieve. Business operators are often so busy with day-to-day operational needs, they are left with little time to consider and implement water efficiency measures in the workplace. With this in mind, City staff began offering free site assessments in 2020 to assist businesses with making water-smart decisions in their workplace. From 2020 to 2022, six commercial site assessments were completed by City staff, resulting in a cumulative savings of approximately 991,000 gallons annually. Table 4. Quantity of efficient fixture retrofits installed and associated water savings for commercial water use assessment participants (2020-2022) Fixture Retrofit Quantity installed Total annual savings (gal) Aerator 178 199,528 Showerhead 135 358,021 Toilet 85 330,602 Pre-rinse Spray Valve 2 11,499 Custom Rebate 2 91,761 Total 402 991,411 Table 4 outlines the total number of water-efficient fixtures installed by commercial water use assessment participants from 2020-2022. During the site assessment, trained staff visit the commercial facility to assess all water consuming fixtures. Each fixture is inspected for leaks and its flow rate is measured in order to determine its existing water usage. On-site installation of high efficiency, WaterSense® labeled fixtures including faucet aerators, showerheads, and pre-rinse spray valves is also provided during the assessment in order to deliver immediate and measurable water savings for the business. Following the conclusion of the assessment, City staff generate a customized report for the business featuring tailored recommendations to increase water efficiency, information on available water fixture rebates, and a customized return-on-investment spreadsheet to demonstrate the cost-effectiveness of 6 In 2022 the number of sprinkler system assessments were significantly reduced due to wet weather conditions that resulted in increased cancellations. 2015-2022 City of Bozeman Water Conservation Program Report 19 | Page 446 WATER SMART BOZEMAN. We'nnot tll{1Qa In tlle towel ■ BiDlll wt ,__.,,:i;r.~&T"-=.w•• .......... rd ................ ..... ... w..... ...,.. .... ,. =,1:w.n:e11•:,: :..---~-- L-~~~~:!l ~~NT--J;IIAzEl!!;M;.6.!!NLl IDIMiONE IBIN6MIKE! A DIITTREhtl:. ;;&;;;i -FlNI DI/I MORE AT BDZEMANWArrR.COII water-efficient retrofits in the workplace. Customized rebate offerings are also generated by staff to meet the unique needs of each facility. Customer Engagement Resources To assist hospitality establishments with water conservation messaging to guests, engagement signage was created by City staff. Hotel linen reuse cards were developed, which instruct guests to hang up their towels and forego laundering. Restaurant coasters and table tents were also created, informing customers that water is served only by request. All customer engagement signage is freely available to commercial water customers for use at any time. However, during a declared Stage 2 drought and above, towel and linen- reuse signage will be required for all lodging establishments. Image 8. City-provided customer engagement signage for lodging establishments Drought Tolerant Demonstration Gardens Water smart demonstration gardens were installed throughout the City to showcase the beauty of drought tolerant landscapes and inspire the community to adopt similar gardens within their own landscapes. The Water Conservation Division and the Strategic Services Department collaborated to create an interactive online map of the demonstration gardens, making information about these water- saving gardens accessible for all. The demonstration gardens consume at least 75% less water than traditional turfgrass landscapes and feature sustainable, pollinator-friendly landscape designs intended to minimize maintenance and conserve water. Museum of the Rockies The Water Conservation Division partnered with Montana State University and Museum of the Rockies in 2018 to showcase efficient irrigation techniques and low water use plants suited for Bozeman's semi- arid climate. The garden beds feature a variety of water-smart and native drought tolerant plants designed to flower all season long. The plants selected are long-lived, hardy to this region, and create abundant food sources for local pollinator species. Inside the Museum of the Rockies, community members can find an informative brochure that explains water efficient practices implemented in the gardens, an extensive plant list, and the most recent version of the Water Smart Planting Guide. 2015-2022 City of Bozeman Water Conservation Program Report 20 | Page 447 Image 9. Interpretive signage at the Museum of the Rockies garden Image 10. Drought tolerant bunchgrasses at Bozeman City Hall Image 11. Bozeman Public Library garden Image 12. Drought tolerant perennials at the Museum of the Rockies City Hall The Water Conservation and Stormwater Divisions joined efforts in 2017 to install a demonstration garden at City Hall. The garden features permeable pavers which assist in reducing stormwater runoff, efficient drip irrigation and water smart landscaping that reduces water use. A City Hall water wise garden brochure was created to inform the community about alternatives to impermeable pavement and provide guidance on the many plant varieties and irrigation practices that reduce outdoor water use. N. 7th Ave. Street Medians In 2015, The City installed drought tolerant shrubs, perennials and grasses in the medians on North 7th Avenue between the blocks of Aspen and Villard Street. The North 7th Ave. street medians provide a great example of how the right plants can thrive in harsh environments, where they are subject to pollution and heat island effects. These medians not only add a splash of color for City commuters but also use over 80% less water than turfgrass medians across town. 2015-2022 City of Bozeman Water Conservation Program Report 21 | Page 448 Bozeman Public Library Installed in 2019, drought tolerant plantings are featured along the west side of the Bozeman Public Library. Representing a colorful alternative to turfgrass, the raised beds use at least 75% less water than standard turfgrass. The garden boxes utilize low-volume drip irrigation to efficiently deliver water directly onto plant roots, eliminating water lost to evaporation and wind drift. N 27th Ave. Street Medians In 2021, water wise landscaping was installed along the North 27th medians, extending from the blocks of Oak St. to Baxter Lane. The landscaping in these medians feature a Fescue grass seed mix that provides an example of an alternative lawn to Kentucky bluegrass. Select medians provide colorful drought tolerant plantings in a unique design as well. Bozeman Public Safety Center Installed in 2022, the landscaped area at the Bozeman Public Safety Center is comprised of only 12.5% turfgrass, with drought tolerant fescue grass (60.5%) and drought tolerant perennials and shrubs (27%) making up the rest of the area. Turfgrass was used in select areas to emphasize building entries and provide space for outdoor activities. Efficient subsurface drip irrigation was installed in the boulevards to eliminate water waste from overhead spray irrigation, while trees were connected to separate irrigation valves to allow for watering during times of drought related watering restrictions. Events and Presentations Water conservation staff participate in several community events every year to educate residents on where Bozeman’s water comes from and how they can do their part to conserve it. Water Conservation Program outreach efforts include structured educational presentations targeted for specific community groups as well as informal ‘tabling events’, in which staff provide water efficiency information to residents who stop by to learn about water conservation. Some of these events include Music on Main, Bozeman Farmer’s Market, MOSS Watershed Festival, Gallatin Valley Earth Day Festival, YMCA summer camps, and Montana State University’s Catapalooza. Structured educational presentations were made to college students and faculty, landscape professionals, Inter Neighborhood Council presentations, and many more. Summaries of select community events are included below. Bozeman Farmers’ Market Since 2016, water conservation staff have been attending the Bozeman Farmers’ Market. This community outreach event elevates public knowledge of Program initiatives and ways residents can save water. The water conservation booth provides water-saving resources, fun trivia questions to get residents thinking about their water resources, and overall education regarding daily water use choices. Image 13. Water Conservation Technician, Chelsey Trevino, leading outreach activities at Bozeman's Summer Farmers' Market 2015-2022 City of Bozeman Water Conservation Program Report 22 | Page 449 Fix-a-Leak Week The U.S. Environmental Protection Agency’s (EPA) WaterSense® Program Fix-a-Leak Week initiative provides the Water Conservation Program with a unique opportunity to educate residents about identifying and repairing household leaks. In 2022, water conservation staff set up a booth outside of ACE Hardware during Bozeman’s Run to the Pub. Prizes included a water efficient toilet and a water- saving shower flower, which were raffled to residents who stopped by the water conservation booth. Free fix-a-leak kits, toilet dye tablets and toilet flappers were provided to residents and an ACE Hardware staff member with plumbing experience participated in this event so that residents could receive a hands-on explanation of how to repair leaky toilets. Montana State University’s Catapalooza Catapalooza is an annual event hosted by Montana State University where students can engage with around 400 local vendors and organizations. Water conservation staff have made multiple appearances at Catapalooza to provide students with information about Bozeman’s water supply and the importance of water conservation. Sweet Pea Festival Parade In 2022, water conservation staff joined in the Sweet Pea Parade, handing out about 150 water conservation bags to parade attendees. These bags included free water-saving resources such as toilet dye tablets, aerators, and educational materials. Water Bottle Fill Station The water bottle fill station was purchased in 2015 and provides residents with an opportunity to fill reusable water bottles with Bozeman’s high quality drinking water at events. The water bottle fill station is decorated with water conservation related informational decals and has made an appearance at approximately 120 community events from 2016 to 2022. Image 14. A live toilet leak repair demonstration on Main Street to celebrate EPA WaterSense® Fix-A-Leak Week Image 15. Water Conservation staff educating MSU students about Bozeman's limited water supplies during Catapalooza Image 16. Water Conservation staff handing out goodies during the annual Sweet Pea Festival parade 2015-2022 City of Bozeman Water Conservation Program Report 23 | Page 450 24 | Page Public Outreach Impacts 2500 2000 "'Cl Q) .s:::. 1500 u m Q) 0::: Q) 1000 c.. 0 Q) a.. 500 0 2016 2017 2018 I 2019 • 2020 2021 2022 ■ Community Events ■ Educational Presentations Figure 8. People reached through community events and educational presentations (2016-2022)7 Water Wise Landscaping Seminars In 2021 and 2022, the City hired Green Gardens Group, LLC. to host a series of online landscaping courses targeted at homeowners. This EPA WaterSense® accredited Watershed Wise Landscape Webinar Series provided comprehensive and free guidance to water customers regarding landscaping basics, turf removal and organic maintenance, irrigation efficiency, composting and soil health, and drought tolerant landscape design. Taught by experienced landscape designers through a series of five interactive online courses, this seminar provided water customers with information needed to transform their landscape, improve water quality and reduce outdoor water use. Course content was customized for the City of Bozeman and offered to customers throughout the months of May and June. Considering the limitations imposed on in-person outreach events due to COVID-19 in 2021, these online courses provided the community with an opportunity to safely engage and learn about outdoor water use efficiency. Landscape and Irrigation Industry Education and Course Offerings Providing educational opportunities for landscape and irrigation professionals is paramount to achieving Water Conservation Program outdoor water use efficiency goals. As such, the City hosts professional training classes for local landscape and irrigation professionals to receive the education needed to design and install efficient irrigation systems and landscapes. 7 Due to staff shortages in 2019 and isolation impacts of COVID-19 in 2020, outreach opportunities were limited resulting in fewer people reached in those years. 2015-2022 City of Bozeman Water Conservation Program Report 451 Irrigation Association Classes The Irrigation Association offers a suite of classes for landscape and irrigation professionals to provide them with the knowledge needed to install and maintain efficient irrigation systems. Landscape certification classes hosted in Bozeman through the Irrigation Association include: Certified Landscape Irrigation Auditor-Certified Landscape Irrigation Auditors (CLIAs) are professionally trained to quantify and analyze landscape irrigation water use by performing practical, repeatable, and defensible tests. A CLIA can professionally collect site data, make recommendations for system repairs and maintenance needs, develop irrigation schedules based on the site’s irrigation uniformity and efficiency, and work with water managers and property owners to manage overall irrigation water use. Certified Irrigation Contractor-Certified Irrigation Contractors (CIC) have met advanced qualifications necessary for installing, repairing, and maintaining irrigation systems to meet contract specifications and requirements while demonstrating an understanding of basic hydraulic, mechanical, and electrical irrigation concepts. While executing projects, a CIC will exercise a basic understanding of good business practices, abide by the legal rights and obligations of the construction contract, and adhere to Montana licensing laws and codes. Qualified Water Efficient Landscaper Classes In 2021, the City was approved as a professional certifying organization through the EPA to begin offering the WaterSense® Qualified Water Efficient Landscaper (QWEL) course to local landscape and irrigation professionals. This 20-hour course covers topics such as Bozeman’s local water supply, creating sustainable landscapes, the role of soil in water efficiency, calculating water budgets, irrigation system componentry, irrigation maintenance and troubleshooting, performing an irrigation system audit, irrigation scheduling for landscape needs, and information on water efficient technology. After completing this free 20-hour course, participants may take an exam to become a QWEL certified landscape or irrigation professional. Bozeman’s first QWEL course was hosted in December 2022. Twenty-seven professionals attended the course and 14 of the attendees received the QWEL certification. Kid Activity Kits The City offers free educational kid activity kits that teach where the City gets its water from and ways to save water at home. Each kid activity kit comes with an activity sheet that guides them in calculating their water use. Kit offerings include the Brush Better Kit, Shower Better Kit and the Can-Do Sprinkler Test Kit. The Brush Better and Shower Better Kits teach ways to reduce bathroom water use and the Can-Do Sprinkler Test Kit provides kids with an opportunity to do their own sprinkler system assessment. 2015-2022 City of Bozeman Water Conservation Program Report 25 | Page 452 Image 17. The "Brush Better" kid activity kit includes a toothbrush, 2-minute brush timer, stickers, toilet leak detecting dye tabs, and an educational activity sheet. Project WET School Curriculum In 2015, the Water Conservation and Stormwater Divisions worked with Project WET to create the Bozeman Water Conservation and Stormwater Management Educator Guide to be used in local schools at the 5th and 6th grade level. The Educator Guide includes five place-based, hands-on lessons about water quality, water conservation, and watershed literacy. The Water Conservation Division worked closely with Project WET to host teacher trainings that would allow teachers to feel confident incorporating the lessons into their curriculum. Water Conservation and Storm Water Management Educato r Guide Image 18. The cover of the Project WET curriculum guide 2015-2022 City of Bozeman Water Conservation Program Report 26 | Page 453 From 2015 – 2018, teachers taught the curriculum to over 1,300 students. In 2018, Project WET revised the curriculum to target 5th grade learning objectives specifically and submitted the curriculum to the Bozeman School District for adoption as a base resource, which would make it part of the mandatory science curriculum. The Educator’s Guide was instead adopted as a supplementary resource for teachers to add into their standard science curriculum voluntarily. In 2022, the City of Bozeman and Montana Outdoor Science School (MOSS) entered into an agreement to implement the Bozeman Water Conservation and Stormwater Management Educator Guide Curriculum – Direct Student Engagement Program (Program). Six 5th grade classrooms totaling 173 students participated in the City’s 2022 Program with MOSS. Table 5. Project WET School Curriculum Participation (2015 - 2022) School Year8 # of Participating Teachers # of Participating Students 2015 3 81 2016 5 473 2017 7 492 2018 2 260 2022 6 173 Utility Management Senior Center Bulk Retrofit In October 2016, the Water Conservation Division partnered with the City Facilities Division to install high efficiency fixtures in the Senior Center. This included the installation of 18 high efficiency WaterSense® labeled toilets and two high efficiency WaterSense® labeled urinals. An analysis of water consumption since the retrofit shows that the Senior Center is using 41% less water than it did before the installation of high efficiency plumbing fixtures. This project has also resulted in water bills that are 26% lower than they were before the installation of these products. City Park Central Irrigation Control System In 2016, the Water Conservation Division partnered with the Parks Department to select a Central Irrigation Control System (CICS) for use at City Parks. The CICS allows for remote access to all park irrigation systems connected to the CICS. This provides City staff with the ability to program, monitor, and adjust irrigation control settings without needing to travel to each location. The CICS also includes ‘smart’ technology that allows for automatic program adjustments based on weather and includes flow sensing to identify leaks and send leak alerts to City staff. City Facility Aerator Installation In 2018, the Water Conservation Division partnered with the City Facilities Division to retrofit all lavatory faucets in City facilities with 0.5 gallon/minute faucet aerators, which is estimated to reduce hand washing water use by nearly 80% compared to pre-existing standard faucet aerator flows. 8 The curriculum was not implemented in the 2020 and 2021 school year due to COVID-19 (2020) and the City’s transition to the Direct Student Engagement Program with MOSS (2021). 2015-2022 City of Bozeman Water Conservation Program Report 27 | Page 454 City Facility Irrigation Audits In 2021 and 2022 water conservation staff completed a total of three irrigation audits (also referred to as sprinkler system assessments) at City facilities, including City Hall, Fire Station 3, and the Stiff Professional Building. Each assessment was followed by the development of a comprehensive report outlining specific issues observed in each irrigation zone, recommendations for repairs, recommendations for increasing system efficiency, a system site map, and recommended watering schedules for early summer, mid (peak) summer, and late summer/early fall. Next steps include collaborating with the City Facilities Division to identify opportunities to implement report recommendations. Sunset Hills Cemetery and Lindley Park Water Conservation Project The Sunset Hills Cemetery and Lindley Park Water Conservation Project installed infrastructure to convey the City’s irrigation water right on Bozeman Creek efficiently and effectively to Sunset Hills Cemetery to be used for irrigation. Prior to the completion of this project, the City spent roughly $25,000.00 per year to use treated, potable water to irrigate the lands at Sunset Hills Cemetery. The completion of this project not only reduces operating costs for the City, but it also conserves over 11 million gallons of potable water previously used to irrigation the cemetery, increases availability of domestic water supplies during periods of drought, reduces safety risks to city staff associated with operation of the original Bozeman Creek diversion structure, and increases instream flows for fish habitat. The scope of this project included the following work: • Replacement of the original Bozeman Creek diversion to Story Ditch with a new automated diversion and aquatic species passage rock ramp; • Installation of 800 feet of 24-inch diameter pipeline to convey water from the diversion point to pump station; • Construction of a 1,250 gallon per minute pump station on Story Ditch; • Construction of 850 feet of pipeline from the pump station to the irrigation system at Sunset Hills Cemetery; and • Leak detection of the existing irrigation system at Sunset Hills Cemetery. Image 19. Installation of Automated Diversion Structure 2015-2022 City of Bozeman Water Conservation Program Report 28 | Page 455 Image 20. Installation and Measurement of Aquatic Species Rock Ramp pipeline ,& Original diversion structure --Original ditch conveyance ■ New pump station Image 21. Sunset Hills Cemetery and Lindley Park Water Conservation Project The project was completed in 2019 and was funded by the City of Bozeman, the Bureau of Reclamation WaterSMART Water and Energy Efficiency Grant Program, and the Montana Department of Natural Resource Renewable Resource Grant and Loan Program. 2015-2022 City of Bozeman Water Conservation Program Report 29 | Page 456 Utility Water Loss Au dit The Utility Department proactively manages water loss through proactive leak detection, customer meter replacement, and careful customer meter reading data management. To better understand the impact of current practices and identify opportunities to augment those practices, an American Water Works Association (AWWA) utility water loss audit, including a review of current water loss management practices and a real loss component analysis (RLCA), was completed in 2021. An AWWA water loss audit compares the volume of water supplied with the volume of authorized uses in a year to calculate the volume of water loss. The volume of water loss can be split into two important types of loss that are managed differently, real loss and apparent losses. Real losses are physical leaks in the distribution system before customer meters. Apparent losses are nonphysical losses that occur when water is successfully delivered to customers but is not measured or recorded accurately. The RLCA subdivides the volume of real losses from the water audit into categories to help identify the most appropriate loss management strategies. Although some amount of leakage is inherent in any distribution system, the findings and recommendations from this audit are critical for providing staff with the information needed to prioritize and implement future water efficiency projects in a manner that is most cost effective and achieves the greatest amount of water savings. Net Blue Water Offset Project The Net Blue Water Offset Project was a partnership between the Alliance for Water Efficiency (AWE), a stakeholder-based nonprofit organization dedicated to the efficient and sustainable use of water, and the Water Conservation Division to develop a water neutral growth incentive or policy for the City of Bozeman. This project was based upon the Net Blue Toolkit, which was developed by AWE in collaboration with cities from across the country. The Toolkit includes a water demand offset ordinance template and methodology workbook to use in creating policies for water-neutral community growth in new developments. This includes methods for offsetting the projected water demand of new development through implementation of water efficiency measures to create a neutral or reduced impact on water supplies. These water demand offset policies may include the following conditions: mandatory or incentivized, applied to indoor or outdoor water use, required for all new developments or only those with a water demand above a specific threshold, implemented through offsite or onsite efficiency measures, in effect throughout the year or only in times of drought, presented as an alternative to cash-in-lieu fee requirements or included in addition to cash-in-lieu fee requirements; applied to various development types,; or established to offset the development’s entire water demand or only a portion of the demand. This project provided City staff with additional water efficiency, community planning, and legal policy support, which resulted in the development of a revised water adequacy policy (adopted in 2020) and a revised Water Adequacy Administrative Procedures Manual (WAPM). The water adequacy policy and WAPM outlines voluntary water efficiency offset incentives that developers may pursue to reduce their water demand, which in turn reduces their cash-in-lieu of water right fees associated with meeting water adequacy requirements in new development. 2015-2022 City of Bozeman Water Conservation Program Report 30 | Page 457 Community Projects HRDC Low Income Bulk Retrofit Project HRDC properties bathroom fixture replacement project was a partnership with HRDC and the Water Conservation Division to upgrade HRDC’s single family and multi-family properties by installing high efficiency bathroom fixtures in all bathrooms. The multi-family retrofits were completed in December 2015, and the single family residence retrofits were completed in January 2016. The multi-family properties that participated in this program achieved a 35% reduction in annual consumption the year following product installation when compared to the 5-year average consumption prior to installation. Single family properties realized a 22% reduction in annual consumption the year following product installation when compared to the 5-year average consumption prior to installation. These retrofits provided water, energy and monetary savings for families in need who might not otherwise be able to participate in the City’s rebate initiatives. MSU Native Grasses Project In an effort to identify various native grass cultivars that can thrive with little or no supplemental irrigation after establishment, no fertilizer and infrequent mowing, the Water Conservation and Streets Divisions partnered with Montana State University Professor of Plant Sciences, Tracy Dougher, to study how various drought tolerant native grasses perform under extreme landscape conditions. Two street medians were used as test sites to develop protocols for use throughout the city. The project was intended to provide the development community with viable drought tolerant grass alternatives to consider when designing landscapes and determining water requirements for a project. After the completion of the study, Dr. Dougher provided results to City staff, indicating which grass cultivars were most successful. Results from this study were used to directly inform the development and installation of seed mixes used in the N 27th Ave. median and the Bozeman Public Safety Center demonstration sites. 2015-2022 City of Bozeman Water Conservation Program Report 31 | Page NATIVE GRASSES PROJECT 1'\~111i'/1 f~1 •l1.:,,~~I 1~,1 i-11~,,,p t,il\~l .:111\1 )1 11·'• J-~-.· d·1)\'1 .~ J, '11 .,\',{~I .. tl''11i'• J, • • A partnership b~een • 1\ ,, ,, -~~~,~~~ ~.~~~~~~,~"T _M._[;lg~T~~ f'4'•■re tnt-■llm \lllll W'.UW.limm.ull.'3'1trcan (tldl lfrt llh1H Cemm.':llbn ta). Image 22. The Native Grasses Project was conducted in collaboration with Montana State University Professor, Dr. Tracy Dougher. 458 Image 23. A North 27th traffic median with a drought tolerant fescue blend seed mix Drought Management In 2017, the City adopted its first Drought Management Plan to reduce water usage during times of shortage. The Plan includes a drought vulnerability assessment, drought monitoring and declaration framework, targeted drought communication strategies, drought response measures, and drought response enforcement. Water conservation staff monitor drought conditions throughout the year through a drought monitoring tool, which evaluates local water supply data and regional drought indices to evaluate current drought status. The drought monitoring tool generates a composite drought score, which correlates to drought stages outlined in the Drought Management Plan to provide City staff with needed information to evaluate drought risk and make recommendations for a drought declaration, as needed. Four stages of drought are outlined in the Plan, increasing in severity from Stages 1 through 4. Each stage includes an achievable system-wide water reduction target which correlates to the response measures recommended for each stage. Stage 1 Drought Watch Stage 2 Drought Advisory Stage 3 Drought Warning Stage 4 Drought Emergency Conserving water is encouraged, but not mandatory. •0-22% drought surcharge Mandatory outdoor watering restrictions begin. •10-39% drought surcharge Lawn watering ban in effect. Outdoor water use is restricted. •20-100% drought surcharge Water is rationed for essential uses only. •25-200% drought surcharge 2015-2022 City of Bozeman Water Conservation Program Report 32 | Page 459 EXPECTED INCREASE AMOUNT BASED ON DECLARED DROUGHT STAGE I STAGE 1 ] STAGE 2 I STAGE 3 I STAGE 4 Single Family Residential Tier 1 (0-6 HCF) 0.0% 10.0% 20.0% 25.0% Tier 2 (6-25 HCF) 21.9% 39.6% 100.0% 200.0% Tier 3 (25-55 HcF·) 21.9% 39.4% 100.0% 200.0% Tier 4 (55+ HCF) 21.8% 39.4% 100.0% 200.0% Multi-Family Residential 15.6% 23.8% 23.8% 25.0% Commercial 15.6% 25.0% 25.0% 25.0% •10% system wide •20% system wide •30% system wide •40% system wide water reduction water reduction water reduction water reduction target target target target In 2019, the City adopted drought surcharge and drought reserve utility rates for water customers. The drought reserve is a $0.08 charge per hundred cubic feet of water (HCF) that is applied to all Bozeman water customers regardless of drought conditions. Drought surcharges only go into effect during a declared drought and vary based on customer class and volumetric use. Drought reserve and surcharges are intended to mitigate financial impacts to the water utility resulting from decreased revenue from watering restrictions, as well as incentivize water conservation specifically during times of drought. Image 24. A chart used in outreach materials that guides water customers through utility bill drought surcharges In the summer of 2021, the City experienced drought conditions that resulted in a Stage 2 drought declaration. Response measures limiting outdoor water use to two days per week were enacted and drought surcharges went into effect. Throughout the course of the drought declaration, a communications campaign was in effect with a goal of reaching water customers to inform them of drought conditions, mandatory response measures, and surcharges. By the .end of the drought declaration, total system-wide water use was reduced by 23%, exceeding the 20% reduction goal associated with a Stage 2 drought declaration. This water use reduction demonstrates that the Bozeman community did their part to reduce use during times of shortage, successfully ensuring that the utility had water to support essential uses. The drought declaration of 2021 prompted updates to the City’s drought declaration process, resulting in the development and adoption of the 2022 Drought Management Plan. 2015-2022 City of Bozeman Water Conservation Program Report 33 | Page 460 Tiered Rate Structure Tiet 1: 0-6 HCF• Normal, essential/indoor water use. • The average indoor water use for an average home in Bozeman is4.7 HCF • The cost per un it (HCF) of water in this tier has decreased from the previous Tier 1 rates, making water for essential use now more affordable ► Tiet 2: 6-25 Her Responsible outdoor water use. • An average home watering their lawn to meet, and not exceed , the average needs of the lawn during the summer months will fall into this tier. ► Tier 3: 25-55 HCF• Inefficient outdoor water use. • This size of this tier is based on the amount of water needed to apply twice as much water to your lawn as is required in peak season (July/August) when conditions are exceptionally hot and dry. ► Tiet 4: 55+ HCF• Excessive outdoor water use. • Water used is more than twice the amount of water needed to meet peak lawn watering needs in the summer. • HCf (hua<ired cubic feet) fr equ•I to l<UJ 90l/oi,s. Image 25. The single-family tiered rate billing structure encourages water conservation among residents by keeping volumetric rates lower for customers who use water efficiently. In 2019, the City Commission adopted revised water rates based on a cost of service analysis that identified the true cost of serving each utility customer class. A tiered, inclining block rate was developed for the single family customer class to ensure that customers pay for the true cost of usage, keeping the cost of water for essential uses low, and sending a price signal that speaks to the value of Bozeman’s limited water supplies. In a tiered, inclining block rate structure, the cost of water per unit used increases from one tier to the next. Each of the four tiers were sized based on Bozeman-specific water use and parcel size data to accurately capture water for essential uses (tier 1), responsible outdoor use (tier 2), inefficient outdoor use (tier 3), and excessive outdoor use (tier 4). This type of rate structure ensures that water rates are equitable among a customer class with widely varying outdoor water use patterns. Permanent Outdoor Water Use Restrictions The months of May through September often lend to hot and dry summer conditions in Bozeman. When these conditions occur, city-wide water demand increases substantially due to the watering of lawns and landscapes. Turfgrass lawns are usually irrigated by means of overhead spray irrigation and require about 15 gallons of supplemental irrigation per square foot, per irrigation season in order to maintain a healthy appearance. 2015-2022 City of Bozeman Water Conservation Program Report 34 | Page 461 In 2022, the Bozeman City Commission adopted mandatory permanent time of day and day of week outdoor watering restrictions for the use of overhead spray irrigation. Restrictions are permanently in effect every year, regardless of conditions and apply to all systems connected to city water for irrigation. These restrictions limit watering only during the most efficient times of the day and require that a property irrigate no more than three days per week. PUBLIC PARKS, ODD-HUMBER PRIVATE OPEH SPACES, PHYSICAL ADDRESS PHYSICAL ADDRESS STREET RIGHT OF WAYS WATER YOUR LAWH WATER YOUR LAWH WED • :FRI • SUH WATER YOUR LAWH TU·TR ·SAT MOH • WED • :FRI Image 26. Time of day and day of week restrictions for the use of overhead spray irrigation apply to all residents connected to City of Bozeman water supplies. Exemptions A 45-day exemption is permitted for the installation of new sod on a property to accommodate establishment watering needs. Irrigation for the purposes of sprinkler installation, repair, and maintenance is also permitted anytime to ensure that systems function efficiently and can be repaired as quickly as possible. Hand watering with a positive shut-off nozzle and the use of low-volume drip irrigation for the purposes of irrigating food gardens and ornamental landscape plants is always permitted. Bozeman residents connected to private wells are not required to comply with the permanent watering restrictions, but voluntary participation is always encouraged by staff. Criteria were developed for special circumstances in which an exemption or relaxation from the water restrictions is required. All criteria are outlined in Administrative Order 2023-02: Outdoor Water Use Restrictions Administrative Procedures Manual. Enforcement Water conservation staff rely primarily upon community notifications to identify cases of non- compliance throughout the City. Residents can contact the Water Conservation Division by phone, email or online survey to report non-compliance. Upon receipt of a notification, City staff directly contacts the property owner to inform them of the non-compliance. Repeat violators will be contacted by water conservation staff via door hangers and certified mail, urging compliance. Eventually, water service at the violator’s property may be discontinued and fines may be issued. Water Conservation Plan Water conservation is an integral part of the City’s long term water resource planning efforts and essential to ensuring that the City can meet future demands as it continues to grow. Recognizing the important role that water conservation plays in meeting future water demands, the City hired a 2015-2022 City of Bozeman Water Conservation Program Report 35 | Page 462 consultant with expertise in water conservation plan development to create a robust, 20-year water conservation plan for the City. The plan evaluates various program measures through the lens of qualitative and quantitative screening criteria to determine which measures are best suited for implementation in Bozeman. Quantitative screening criteria include a benefit cost analysis for each program measure considered for implementation. This analysis provides the City with an understanding of achievable water savings for each individual program measure, as well as budgetary and staffing needs required to successfully implement each measure. Image 27. Cover of the 2023 Water Conservation Plan The water conservation plan serves as a framework for Program planning. However, it is important to recognize that City priorities evolve, resources fluctuate, water use patterns change, water-efficient technologies rapidly improve -- and that plan implementation needs to be adaptable to these and other changing circumstances. As such, the City identified a need to have a planning tool capable of capturing these changing circumstances to maintain flexibility in Program planning and implementation while accurately capturing water savings projections. To meet this need, the City was provided with a 2015-2022 City of Bozeman Water Conservation Program Report 36 | Page 463 populated Least Cost Planning Decision Support System Model (DSS Model) from its consultant. The DSS Model was used to prepare long-range, detailed demand projections, and includes extra detail to enable a more accurate assessment of the impact of water efficiency programs on demand, and provide a rigorous and defensible modeling approach necessary to support staff in informed program decision making. The water conservation plan will be brought to the Bozeman City Commission for adoption in late 2023 and will serve as a guide for future program development as well as inform City of Bozeman long term strategic water resource management. 2015-2022 City of Bozeman Water Conservation Program Report 37 | Page 464 Memorandum REPORT TO:City Commission FROM:Melissa Hodnett, Finance Director SUBJECT:Biennial Budget Discussion MEETING DATE:October 24, 2023 AGENDA ITEM TYPE:Finance RECOMMENDATION:Ask questions and provide guidance on whether the City should move forward with a biennial budgeting process. STRATEGIC PLAN:7.3 Best Practices, Creativity & Foresight: Utilize best practices, innovative approaches, and constantly anticipate new directions and changes relevant to the governance of the City. Be also adaptable and flexible with an outward focus on the customer and an external understanding of the issues as others may see them. BACKGROUND:Biennial budgeting is a budgeting system in which governments and organizations plan and allocate financial resources for a two-year period instead of the traditional annual budgeting cycle. It is useful because it can provide greater fiscal stability, enhance long-term planning, and reduce the time and administrative burden associated with annual budgeting. Biennial budgets allow for a more comprehensive and strategic approach to financial management, as they enable a longer horizon for decision-making and can facilitate better alignment with an organization's or government's strategic goals and initiatives. This presentation is intended to discuss those benefits, and potential drawbacks. UNRESOLVED ISSUES:N/A ALTERNATIVES:The City could continue to use an annual budget. FISCAL EFFECTS:There will be no significant budget impacts. Montana Code still requires the City to adopt and expend within an annual budget which will still be formally adopted by City Commission each year. Each year 1 of the biennium would continue to include budget presentations on each department, and the preparation of a biennial budget document. Each year 1 will contain presentations focusing on changes to the initial biennium budget, and a preparation of a budget in brief. Report compiled on: October 13, 2023 465