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12-12-23 City Commission Meeting Agenda and Packet Materials
A. Call Special Meeting to Order - 4:30 PM - Commission Room, City Hall, 121 North Rouse B. Pledge of Allegiance and a Moment of Silence C. Changes to the Agenda D. Authorize Absence E. FYI F. Commission Disclosures G. Consent THE CITY COMMISSION OF BOZEMAN, MONTANA REGULAR MEETING AGENDA Tuesday, December 12, 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. 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 Executive Session City Manager Annual Performance Evaluation(City Commission) 1 G.1 Accounts Payable Claims Review and Approval (Waters) G.2 Authorize the City Manager to Sign the Building Code Enforcement Program Agreed Upon Procedures Engagement Letter for Fiscal Year 2023.(Hodnett) G.3 Authorize the City Manager to Sign a Memorandum of Understanding with American Jobs for America's Youth Montana for a Summer Jobs Internship Program(DiTommaso) G.4 Residential Lease Agreement for City-Owned House at Water Treatment Plant (Giuttari) G.5 Authorize the City Manager to sign an Interlocal Agreement, a Memorandum of Agreement Establishing the Gallatin Valley Metropolitan Planning Process (3Cs Agreement), and the Designation Letter to the Montana Governor for the Gallatin Valley Metropolitan Planning Organization(Ross) G.6 Authorize the City Manager to Sign a Letter of Agreement Accepting a Donation from the Bozeman Public Library Foundation for Furniture and Equipment for Phase 2 of the Bozeman Public Library Renovation Project(Henderson) G.7 Authorize the City Manager to Sign a Second Amendment to the Professional Services Agreement with Design 5 Landscape Architecture to Continue Providing Design Services for the Downtown Bozeman Alleyways Beautification Project through completion of project.(Staley) G.8 Resolution 5402, Adoption of Annexation for the South 3rd Annexation, Annexing 1.17 acres and Adjacent Rights-of-Way, Application 21161( Rogers) G.9 Resolution 5426, Adoption of Annexation for the 6590 Davis Lane Annexation, Annexing 8.55 acres and Adjacent Rights-of-Way, Application 21443( Rogers) G.10 Resolution 5557 to Establish Compliance with IRS Reimbursement Bond Regulations(Hodnett) G.11 Resolution 5561, Authorizing Prime Change Order 21 with Langlas and Associates for Construction of the Bozeman Public Safety Center(Winn) G.12 Ordinance 2114 Provisional Adoption to Establish an Initial Zoning Designation of R-3 (Residential Medium Density District) in Association with the Annexation of 1.17 Acres, the South 3rd Annexation, Application 21161( Rogers) G.13 Ordinance 2120 Provisional Adoption to Establish an Initial Zoning Designation of B-2M (Community Business-Mixed District) in Association with the Annexation of 8.55 Acres, the 6590 Davis Lane Annexation, Application 21443( Rogers) H. Public Comment This is the time to comment on any matter falling within the scope of the Bozeman City Commission. There will also be time in conjunction with each agenda item for public comment relating to that item but you may only speak once per topic. Please note, the City Commission cannot take action on any item which does not appear on the agenda. All persons addressing the City Commission shall speak in a civil and courteous manner and members of the audience shall be 2 I. Action Items I.1 Public Hearing and Work Session on a Petition to Establish a Municipal Housing Authority(Fontenot) I.2 Resolution 5545 Establishing Animal License Fees (Hodnett) I.3 Resolution 5558, Adoption of the Fiscal Years (FY) 25-29 Capital Improvement Plan (CIP)(Hodnett) J. FYI / Discussion K. Adjournment 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. City Commission meetings are open to all members of the public. If you have a disability that requires assistance, please contact our ADA Coordinator, Mike Gray, at 582-3232 (TDD 582-2301). Commission meetings are televised live on cable channel 190 and streamed live on our Meeting Videos Page. 3 Memorandum REPORT TO:City Commission FROM:Mayor Cyndy Andrus Deputy Mayor Terry Cunningham Commissioner Jennifer Madgic Commission Christopher Coburn SUBJECT:City Manager Annual Performance Evaluation MEETING DATE:December 12, 2023 AGENDA ITEM TYPE:Administration RECOMMENDATION:Discuss the City Manager Annual Performance Evaluation The Mayor may close the meeting to the public pursuant to Sect. 2-3-203(3), MCA, during the time discussion relates to a matter of individual privacy if and only if the Mayor determines the demands of individual privacy clearly exceed the merits of public disclosure. The right of individual privacy may be waived by the individual about whom the discussion pertains and, in that event, the meeting must be open. STRATEGIC PLAN:7.1 Values-Driven Culture: Promote a values-driven organizational culture that reinforces ethical behavior, exercises transparency and maintains the community’s trust. BACKGROUND:City Manager Mihelich's performance evaluation is contractually required to occur in December of each year. UNRESOLVED ISSUES:None ALTERNATIVES:Have the evaluation on a later date in December. FISCAL EFFECTS:None Report compiled on: November 27, 2023 4 Memorandum REPORT TO:City Commission FROM:Nadine Waters, Accounts Payable Clerk Nicole Armstrong, Accounts Payable Clerk Rhonda Edwards, Accounts Payable Clerk Aaron Funk, City Controller Melissa Hodnett, Finance Director SUBJECT:Accounts Payable Claims Review and Approval MEETING DATE:December 12, 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. Please provide approval for checks dated December 6, 2023 , as there was no commission meeting on December 5, 2023. 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. 5 Report compiled on: November 29, 2023 6 Memorandum REPORT TO:City Commission FROM:Melissa Hodnett, Finance Director SUBJECT:Authorize the City Manager to Sign the Building Code Enforcement Program Agreed Upon Procedures Engagement Letter for Fiscal Year 2023. MEETING DATE:December 12, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Approve the authorization of the City Manager to sign the Building Inspection Agreed Upon Procedures Engagement Letter for Fiscal Year 2023. STRATEGIC PLAN:7.5. Funding and Delivery of City Services: Use equitable and sustainable sources of funding for appropriate City services, and deliver them in a lean and efficient manner. BACKGROUND:Administrative Rule (ARM) 24.301.208 requires an independent auditor to perform and Agreed-Upon Procedures (AUP) engagement for compliance over the building code enforcement program. The AUP engagement letter for fiscal year 2023 is with the audit firm Eide Bailly, LLP. UNRESOLVED ISSUES:None. ALTERNATIVES:None. FISCAL EFFECTS:None, this agreement is included in the annual audit budget. Attachments: City of Bozeman 2023_Building AUP_Engagement Letter.pdf Report compiled on: October 13, 2023 7 What inspires you, inspires us. | eidebailly.com 7001 E. Belleview Ave., Ste. 700 | Denver, CO 80237-2733 | TF 866.740.4100 | T 303.770.5700 | F 303.770.7581 | EOE 1 October 13, 2023 Honorable Mayor and Members of City Commission City of Bozeman 121 N. Rouse Ave. City of Bozeman, MT 59715 This letter sets forth our understanding for applying agreed-upon procedures to the City of Bozeman’s adherence to Administrative Rule (ARM) 24.301.208 building code of for the period ended June 30, 2023. The City of Bozeman is responsible for adherence to Administrative Rule (ARM) 24.301.208. This engagement is solely for the purpose of reporting our findings regarding the adherence to Administrative Rule (ARM) 24.301.208 (see Attachment A to this agreement for specific details). This report is intended for use by the City of Bozeman and the Montana State Department of Labor and Industry and is expected to be restricted to the use of these specified parties. Prior to the completion of the engagement, you agree to provide us with written agreement and acknowledgment that the procedures performed are appropriate for the intended purpose of the engagement as noted above. As part of our engagement, we will request from management or those charged with governance, written confirmation concerning representations made to us in connection with the agreed upon procedures. This will include confirmation that we have obtained from all necessary other parties’ agreement to the procedures and acknowledgement that the procedures performed are appropriate for their purposes. You agree to provide such confirmation. We will conduct our engagement in accordance with the attestation standards for agreed-upon procedures engagements established by the American Institute of Certified Public Accountants. We are responsible for carrying out the procedures and reporting findings in accordance with these standards. We have no responsibility to determine the differences between the procedures to be performed and the procedures that we would have determined to be necessary had we been engaged to perform another form of attestation engagement. Our report will list the procedures performed and our findings. Our report will be addressed to the mayor and members of city commission and will be intended for use by and restricted to the use of the specified parties as identified above. Our report will contain such restricted-use language. Should we have any reservations with respect to the subject matter, we will discuss them with you before the report is issued. We have no responsibility to update our report for events and circumstances occurring after the date of our report. 8 2 During the course of the engagement, we will only provide confidential engagement documentation to you via Eide Bailly’s secure portal or other secure methods, and request that you use the same or similar tools in providing information to us. Should you choose not to utilize secure communication applications, you acknowledge that such communication contains a risk of the information being made available to unintended third parties. Similarly, we may communicate with you or your personnel via e-mail or other electronic methods, and you acknowledge that communication in those mediums contains a risk of misdirected or intercepted communications. Should you provide us with remote access to your information technology environment, including but not limited to your financial reporting system, you agree to (1) assign unique usernames and passwords for use by our personnel in accessing the system and to provide this information in a secure manner; (2) limit access to “read only” to prevent any unintentional deletion or alteration of your data; (3) limit access to the areas of your technology environment necessary to perform the procedures agreed upon; and (4) disable all usernames and passwords provided to us upon the completion of procedures for which access was provided. We agree to only access your technology environment to the extent necessary to perform the identified procedures. Professional standards prohibit us from being the sole host and/or the sole storage for your financial and non- financial data. As such, it is your responsibility to maintain your original data and records and we cannot be responsible to maintain such original information. By signing this engagement letter, you affirm that you have all the data and records required to make your books and records complete. We plan to begin our procedures in October 2023 and, unless unforeseeable problems are encountered, the engagement should be completed by November 30, 2023. Paul Kane, CPA is the engagement partner for the services specified in this letter. Responsibilities include supervising services performed as part of this engagement and signing or authorizing another qualified firm representative to sign the agreed-upon procedures report. With respect to any nonattest services we perform, we agree to perform the following: Prepare or assist with preparing financial statements in conformity with U.S. generally accepted accounting principles based on information provided by you. We will not assume management responsibilities on behalf of the City of Bozeman. The City of Bozeman’s management understands and agrees that any advice or recommendation we may provide in connection with our engagement are solely to assist management in performing its responsibilities. The City of Bozeman’s management is responsible for (a) making all management decisions and performing all management functions; (b) assigning a competent individual to oversee the services; (c) evaluating the adequacy of the services performed; (d) evaluating and accepting responsibility for the results of the services performed; and (e) establishing and maintaining internal controls, including monitoring ongoing activities. Our responsibilities and limitations of the nonattest engagement are as follows: •We will perform the services in accordance with applicable professional standards, including Attestation standards for agreed-upon procedures engagements established by the American Institute of Certified Public Accountants. •This engagement is limited to the agreed-upon procedures previously outlined. Our firm, in its sole professional judgment, reserves the right to refuse to do any procedure or take any action that could be construed as making management decisions or assuming management responsibilities. 9 3 Our fees are based on the amount of time required at various levels of responsibility, plus actual out-of-pocket expenses, including administrative charges. Invoices are payable upon presentation. Our fee for the engagement will be $7,000. We will notify you immediately of any circumstances we encounter that could significantly affect this initial fee. Whenever possible, we will attempt to use the City of Bozeman’s personnel to assist in the preparation of information. This effort could substantially reduce our time requirements and facilitate the timely conclusion of our procedures. The ability to perform and complete our engagement consistent with the estimated fee included above depends upon the quality of your underlying accounting records and the timeliness of your personnel in providing information and responding to our requests. To assist with this process, we will provide you with a Prepared-by- Client (PBC) request that identifies the information required to perform our engagement, as well as a planned timeline for the engagement. A failure to provide this information in an accurate and timely manner may result in an increase in our fees and/or a delay in the completion of our engagement. We may be requested to make certain engagement documentation available to outside parties, including regulators, pursuant to authority provided by law or regulation or applicable professional standards. If requested, access to such engagement documentation will be provided under the supervision of Eide Bailly LLP’s personnel. Furthermore, upon request, we may provide copies of selected engagement documentation to the outside party, who may intend, or decide, to distribute the copies of information contained therein to others, including other governmental agencies. We will be compensated for any time and expenses, including time and expenses of legal counsel, we may incur in making such engagement documentation available or in conducting or responding to discovery requests or participating as a witness or otherwise in any legal, regulatory, or other proceedings as a result of our Firm’s performance of these services. You and your attorney will receive, if lawful, a copy of every subpoena we are asked to respond to on your behalf and will have the ability to control the extent of the discovery process to control the costs you may incur. Should our relationship terminate before our agreed upon procedures are completed and a report issued, you will be billed for services to the date of termination. All bills are payable upon receipt. A service charge of 1% per month, which is an annual rate of 12%, will be added to all accounts unpaid 30 days after billing date. If collection action is necessary, expenses and reasonable attorney’s fees will be added to the amount due. We will maintain the confidentiality of your personal information and will apply procedures to protect against any unauthorized release of your personal information to third parties. We agree to retain our attest documentation or workpapers for a period of at least eight years from the date of our report. We may use third party service providers and/or affiliated entities (including Eide Bailly Shared Services Private Limited), whether located within or outside the United States, (collectively, “service providers”) in order to facilitate delivering our services to you. Our use of service providers may require access to client information by the service provider. We will take reasonable precautions to determine that they have the appropriate procedures in place to prevent the unauthorized release of confidential information to others. We will remain responsible for the confidentiality of client information accessed by such service provider and any work performed by such service provider. 10 4 Neither of us may use or disclose the other’s confidential information for any purpose except as permitted under this engagement letter or as otherwise necessary for Eide Bailly to provide the services. Your confidential information is defined as any information you provide to us that is not available to the public. Eide Bailly’s confidential information includes our documentation for this engagement. Our documentation shall at all times remain the property of Eide Bailly LLP. The confidentiality obligations described in this paragraph shall supersede and replace any and all prior confidentiality and/or nondisclosure agreements (NDAs) between us. Eide Bailly LLP is a member of HLB International, a worldwide organization of accounting firms and business advisors, (HLB). Each member firm of HLB, including Eide Bailly LLP is a separate and independent legal entity and is not owned or controlled by any other member of HLB. Each member firm of HLB is solely responsible for its own acts and omissions and no other member assumes any liability for such acts or omissions. Neither Eide Bailly LLP, nor any of its affiliates, are responsible or liable for any acts or omission of HLB or any other member firm of HLB and hereby specifically disclaim any and all responsibility, even if Eide Bailly LLP, or any of its affiliates are aware of such acts or omissions of another member of HLB. Eide Bailly LLP formed The Eide Bailly Alliance, a network for small to mid-sized CPA firms across the nation. Each member firm of The Eide Bailly Alliance, including Eide Bailly LLP, is a separate and independent legal entity and is not owned or controlled by any other member of The Eide Bailly Alliance. Each member firm of The Eide Bailly Alliance is solely responsible for its own acts and omissions and no other member assumes any liability for such acts or omissions. Neither Eide Bailly LLP, nor any of its affiliates, are responsible or liable for any acts or omission of The Eide Bailly Alliance or any other member firm of The Eide Bailly Alliance and hereby specifically disclaim any and all responsibility, even if Eide Bailly LLP, or any of its affiliates are aware of such acts or omissions of another member of The Eide Bailly Alliance. MEDIATION Any disagreement, controversy or claim arising out of or related to any aspect of our services or relationship with you (hereafter a “Dispute”) shall, as a precondition to litigation in court, first be submitted to mediation. In mediation, the parties attempt to reach an amicable resolution of the Dispute with the aid of an impartial mediator. Mediation shall begin by service of a written demand. The mediator will be selected by mutual agreement. If we cannot agree on a mediator, one shall be designated by the Montana Eighteenth Judicial District Court, Gallatin County, Montana. Mediation shall be conducted with the parties in person in Bozeman, Montana. Each party will bear its own costs in the mediation. The fees and expenses of the mediator will be shared equally by the parties. Neither party may commence a lawsuit until the mediator declares an impasse. LIMITATION OF LIABILITY Eide Bailly LLP and its partners, affiliates, officers and employees (collectively “Eide Bailly”) shall not be responsible for any misstatements in your financial statements that we may fail to detect as a result of misrepresentations or concealment of information by any of your owners, directors, officers or employees. The exclusive remedy available to you for any alleged loss or damages arising from or related to Eide Bailly’s services or relationship with you shall be the right to pursue claims for actual damages that are directly caused by Eide Bailly’s breach of this agreement or Eide Bailly’s violation of applicable professional standards. In no event shall Eide Bailly’s aggregate liability to you exceed ten times fees paid under this agreement, nor shall Eide Bailly ever be liable to you for incidental, consequential, punitive or exemplary damages. Please sign and return the attached copy of this letter to indicate your acknowledgment of, and agreement with, the arrangements for our engagement including our respective responsibilities. 11 5 We appreciate the opportunity to be your certified public accountants and look forward to working with you and your staff. Respectfully, __________________________ Paul Kane, CPA Assurance Partner *************************************************************** RESPONSE: This letter correctly sets forth our understanding. Acknowledged and agreed on behalf of the City of Bozeman, Montana by: Name: _______________________________________________________________ Title: ________________________________________________________________ Date: ________________________________________________________________ 12 6 ATTACHMENT A Agreed Upon Procedures: 1) We will determine if the City’s accounting records fully document the collection and expenditure of all fees and charges related to the Building Code Enforcement Program during the 2023 fiscal year. 2) We will compare the financial information included in the 2023 “Annual Report” submitted to the State Building Codes Bureau to corresponding information in the City’s accounting records and verify the information was the same. 3) From selected fiscal year 2023 building permit application, we will compare permit fees charged to the permit fee schedule established by the City and approved by the State Building Codes Bureau, and we will verify that the fees were the same. 4) From the selected fiscal year 2023 building permit applications, we will compare the total building permit fee paid to the amount credited to the Building Code Enforcement Program, and we will verify that the amounts agree and that no portion of the fee was diverted to other functions of the government. 5) We will examine selected fiscal year 2023 expenditures and other charges made from Building Code Enforcement Program-related fees to determine that all were necessary and reasonable costs directly and specifically identifiable to the enforcement of building codes, (with the exception of indirect costs charged to the Building Code Enforcement Program- see procedures 7 and 8 below). 6) We will examine selected fiscal year 2023 expenditures from the Building Code Enforcement Program to determine if any portion of permit fees collected were used to support fire departments, planning, zoning, or other activities, except to the extent that employees of those programs provided direct plan review, inspection or other building code enforcement services for the Building Code Enforcement Program. If so, we will obtain documentation from the government that supports the performance of these direct services and that documents that these costs were apportioned to the Building Code Enforcement Program on a basis supported by time sheets. 7) For indirect costs allocated to the Building Code Enforcement Program in fiscal year 2023, we will verify that the basis used to allocate costs to the Building Code Enforcement Program was the same basis used to allocate indirect costs to other proprietary funds of the City, and we will verify that indirect costs waived for any other proprietary fund of the City were also waived for the Building Code Enforcement Program. 8) For indirect costs charged to the Building Code Enforcement Program in fiscal year 2023, we will verify that they were limited to those costs allowed under 2CFR200. 9) For transfers out of the Building Code Enforcement Program Fund in fiscal year 2023, we will obtain detailed documentation from the City that describes the purposes and eventual uses of these transfers, and we will verify that these purposes and uses were in accordance with allowable expenditures as addressed in the procedures performed above. 13 7 10)We will verify that 0.5% of fiscal year 2023 revenues from plan reviews and building permits (not including revenues from electrical, mechanical or plumbing permits) collected during the year were remitted to the State Department of Labor and Industry for the building codes education program. 11)We will determine whether the reserve account (fund balance) exceeds the amount needed to support the Building Code Enforcement program for twelve months. If so, we will verify that the City has taken steps to reduce permit fees. 14 Memorandum REPORT TO:City Commission FROM:Jesse DiTommaso, Economic Development Specialist Brit Fontenot, Economic Development Director SUBJECT:Authorize the City Manager to Sign a Memorandum of Understanding with American Jobs for America's Youth Montana for a Summer Jobs Internship Program MEETING DATE:December 12, 2023 AGENDA ITEM TYPE:Agreement - Agency/Non-profit RECOMMENDATION:Authorize the City Manager to sign a memorandum of understanding with American Jobs for America's Youth Montana for a summer jobs internship program. STRATEGIC PLAN:2.3 Workforce Development: Support education and workforce development initiatives to improve the skills of our citizens. BACKGROUND:Career exploration provides students with the opportunity to apply what they like and learn in the classroom to a career and postsecondary education. Gallatin Valley has a number of industries that support high-wage jobs. By exposing students via paid internships and mentorships to some of the available opportunities in Gallatin Valley, we can support the local workforce, reduce barriers of entry to some careers, and provide a way for local students to stay in Bozeman even as the cost of living continues to rise. The Summer Jobs Program (SJP), a program from American Jobs for America's Youth, matches participants with a paid work experience, provides a paid foundational work skills training, and connects students with an adult mentor for the summer. SJP participants are high school students and recent graduates eager to develop their work skills and explore their career options. Through the program, students gain skills, experience, and professional networks that prepare them for success in future endeavors. The work skills students learn and practice serve them well both in and out of the workforce. At the same time, the program grows the workforce pipeline and strengthens the local economy by connecting motivated youth to local employers. The City of Bozeman along with American Jobs for American Youth would facilitate the program with the Bozeman School District, Gallatin College, and the Montana Office of Public Instruction for a second year of Summer Jobs Program in Bozeman during the Summer of 2024. 15 UNRESOLVED ISSUES:None. ALTERNATIVES:As recommended by the City Commission. FISCAL EFFECTS:The City is responsible for providing the student stipends upon successful completion of the work skills training. The stipend is $50 per student with a maximum of 15 students ($750), which is available in the economic development department budget. Attachments: 231121 Bozeman AJAY MT MOU 2024 w AJAY MT signature.pdf Report compiled on: December 23, 2022 16 MOU AJAY MT & City of Bozeman – SJP 2024, page 1 Memorandum of Understanding between American Jobs for America’s Youth Montana and City of Bozeman This memorandum of understanding (MOU) outlines the terms and understanding between American Jobs for America’s Youth Montana (“AJAY MT”), with a business address of P.O. Box 923, Helena MT 59624, and the City of Bozeman (“City”), with a business address of 121 N. Rouse Ave., Bozeman, MT 59715, collectively referred to as “Parties”, in order to implement the Summer Jobs Program in the Bozeman area in 2024. WHEREAS, the City and AJAY MT wish to establish a working relationship for the purpose of fostering economic development within Bozeman; and WHEREAS, the City and AJAY MT mutually value fostering life and work skills for youth by collaborating with schools, community partners, and local businesses; and WHEREAS, the City and AJAY MT mutually recognize that young Montanans deserve to have access to meaningful work and professional support; and WHEREAS, the City and AJAY MT mutually understand that secure employment is linked to housing stability and mental health; and WHEREAS, this collaboration supports Bozeman Strategic Plan 1.0, An Engaged Community, and 5.3, Partnerships for Education and Learning. NOW THEREFORE THE PARTIES AGREE AS FOLLOWS: 1. Purpose and Scope The Summer Jobs Program (SJP) provides youth with valuable work experience, skills development, and mentorship. Through this partnership, Bozeman youth and employers will benefit from the SJP. The SJP aims to build work skills and develop social networks to help Bozeman youth better understand and pursue their goals, ultimately developing the local workforce pipeline. The City, with the support of AJAY MT, will strive to serve at least ten (10) area youth through SJP, matching them with local mentors and employers. The program effectiveness will be evaluated via mid-summer and end-of-summer evaluations completed by participating students, mentors, and employers. 2. Parties’ Roles and Tasks. ● SJP Local Implementation Lead Organization (City) and Local Coordinator -– The City coordinates the local implementation of the Summer Jobs Program model including identifying a local coordinator to be the primary point of contact. ● AJAY MT - provides ongoing guidance and technical support to communities implementing SJP. AJAY MT provides training curricula, program materials, implementation strategies, and program evaluation. AJAY MT leverages statewide partnerships to enhance local programs and maximize program impact. 17 MOU AJAY MT & City of Bozeman – SJP 2024, page 2 ● SJP Community Implementation Committee - a dedicated collaborative group from across the community works with AJAY MT to support a successful Summer Jobs Program. This committee plays an important role in ensuring the execution of the SJP by providing logistical support to the lead organization and to participating businesses, students, mentors, and schools. ● Host Employers - commit to hosting SJP participants with a meaningful work experience that pays more than minimum wage; offer a supportive environment; and provide ongoing, effective feedback to maximize the experience for both the employer and the student. ● Youth Participants - SJP serves young adults (15-19 years old) interested in growing their work skills and expanding their professional network. Interested participants complete an application, a program interest interview, work skills training, employer hiring process, and mentoring. Communities determine priority age range. ● SJP Mentors - adult volunteers commit to meeting with participants to help students process their work experience, identify future goals, help them grow their professional skills, and expand their professional network. This document outlines the finer details of each responsibility and a comprehensive action plan timeline. 3. Roles and Responsibilities of City: A. Planning & Coordination ● SJP Implementation Planning Committee: City will convene the local committee, involving key stakeholders to ensure comprehensive planning and successful execution. ● Committee Meetings: City will organize and facilitate weekly or biweekly SJP committee meetings from January through May, promoting collaboration and effective coordination among all parties. AJAY MT will attend Bozeman SJP committee meetings remotely. ● Communication: City will maintain regular communication among local team and with AJAY Montana to evaluate progress and outcomes, fostering a proactive and responsive approach to program support. ● City will actively build and maintain positive community relations, ensuring strong ties with the community, which is essential for the program’s success. ● City will organize and host two events - a summer kick-off and an end of program celebration - ensuring their successful execution. B. Recruitment & Work Experience Placements ● Recruitment of Participants: City will actively engage in recruiting a minimum number of student participants, and corresponding number of prospective employers and mentors for the SJP. AJAY MT will develop applications for students, employers, and mentors. ● Student Interviews: City is responsible for coordinating and overseeing the interview process with potential students, either by directly coordinating interviews or overseeing other members 18 MOU AJAY MT & City of Bozeman – SJP 2024, page 3 of the Implementation Committee. ● Work Experience Placements: City will lead the effort of matching students with prospective employers and mentors. C. Program Support: ● Issue Resolution: City will be responsible for promptly addressing and resolving any issues that may arise during the program involving students, mentors, or employers. SJP does not moderate human resource issues, yet can support students and employers regarding options. ● Work Skills Assessments: City will distribute and collect work skills pre-assessments and post- assessments, ensuring the evaluation process is consistent. ● Evaluations: Program effectiveness will be evaluated via mid-summer and end-of-summer evaluations completed by participating students, mentors, and employers. AJAY MT will create and collect evaluations and City will provide support of distribution and collection of evaluations. ● Completion Certificates: AJAY MT will provide certificates and City will print and distribute final certificates. D. Orientation & Training ● Mentor and Supervisor Orientations: In partnership with AJAY MT, City will facilitate mentor and supervisor orientations, ensuring all participants are adequately prepared for their roles. ● Student Work Skills Training: In partnership with AJAY MT, City will provide essential work skills training to students. This can be through a partnership with another organization, online option, or direct delivery. E. Program Paperwork and Documentation ● Website Content: City will provide AJAY MT with partner logos and community specific information for the program’s website to ensure accurate and up-to-date information is available to the community. AJAY MT will keep website up-to-date. ● City will update a shared program spreadsheet to reflect current participant status. (Students, Employers, and Mentors) ● City will provide and/or collect feedback to improve the quality of SJP. F. Financial Responsibilities ● City will provide funding for student stipends upon successful completion of the work skills training. ● City will fund a casual summer kick-off and a program celebration late in the summer. 19 MOU AJAY MT & City of Bozeman – SJP 2024, page 4 4. Terms This MOU is effective November 1, 2023, through October 30, 2024, covering planning and implementation of the 2024 Summer Jobs Program in Bozeman. In October 2024, both parties may elect to mutually reestablish partnership terms. Either party may terminate this MOU upon 30 days written notice without penalties or liabilities. 5. Miscellaneous. A. Notices. Notices to the Parties shall be directed as follows: If to the City:Jesse DiTommaso (economic development specialist) at jditommaso@bozeman.net, 406-579-2494 If to AJAY MT: Gabrielle Eklund Rowley (executive director) at gerowley@americanjobs4youth.org, 406-490-4954, or PO Box 923 Helena MT 59624 Any notice sent to a Party under this MOU shall be in writing and shall be effective when received by the recipient. Each Party may change the address at which it is to receive notices by providing written notice of its new address for notices to the other Party. B. Governing Law; Venue. This MOU shall be governed by the law of the State of Montana. The Parties expressly agree to the exclusive jurisdiction of the courts of Gallatin County, Montana. C. Liberal Construction. This MOU shall be liberally construed to achieve the successful completion of the grant. If any provision in this MOU is found to be ambiguous, an interpretation consistent with the spirit of collaboration and the mutual goals and objectives of the Parties shall be favored over any interpretation that would be inconsistent with such purposes and goals. D. Severability. If any provision of this MOU is found to be invalid, the remainder of the provisions of this MOU shall not be adversely affected. E. Entire Agreement; Amendment; Assignment. This instrument sets forth the entire understanding of the Parties with respect to the grant and supersedes all prior discussions, negotiations, understandings, or agreements relating to the MOU, all of which agreements or understandings are merged into this MOU. No alteration, amendment or modification of this MOU shall be valid or binding unless contained in a written amendment signed by both Parties. F. Successors. The terms, conditions, commitments, restrictions and understandings set forth in this MOU shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. G. Captions. The captions in this MOU have been inserted solely for convenience of reference and are not a part of this instrument and shall have no effect upon construction or interpretation. H. No Partnership or Agency. Neither Party shall be considered a partner nor agent of the other Party, and this MOU does not create a partnership or principal-agent relationship between the Parties. Neither Party shall have any right, power or authority to create any obligation, expressed or implied, on behalf of the other Party. The joint effort being formed by the City and AJAY MT is not a separate legal entity and neither the City nor AJAYMT shall have the right to 20 MOU AJAY MT & City of Bozeman – SJP 2024, page 5 bind the other Party vis a vis any third party. The purpose of the collaboration is to work together to complete the objectives of this MOU and achieve the Parties’ common goals as stated in the Recitals above. While the City and AJAY MT may cooperate in the creation of other projects in the future, the Parties acknowledge and agree that this MOU is unique and the terms of this MOU shall not create a binding precedent with respect to any future projects. I. Indemnity and Release. AJAY MT agrees to indemnify, defend and hold the City harmless from and against any and all liability to any third party for or from loss, damage or injury to persons or property in any manner arising out of, or incident to, negligent acts, errors, omissions, or willful misconduct by AJAY MT in the performance of its work on this MOU. The Parties shall be solely responsible for any contracts they enter into or other obligations or liabilities incurred by such party in connection with their respective roles under this MOU and the grant. J. Insurance. The City will maintain insurance coverage for personal injury and property damage suffered by the City’s officials, employees, and agents arising out of or related to this MOU. The City will further maintain professional liability covered for the City’s officials, employees, and agents arising out of or related to this MOU. AJAY MT warrants and represents that it will maintain personal injury and property damage, and professional liability coverage for its officers, employees, and agents while acting within the scope their employment. The parties further agree that nothing contained in this MOU shall be construed or interpreted as denying to either party any remedy or defense available to such party under the laws of the State of Montana. K. Nondiscrimination and Equal Pay. The Parties agree that all hiring by the Parties of persons performing this Agreement shall be on the basis of merit and qualifications. The Parties will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Parties 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 Parties shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. The Parties shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. AJAY MT 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). AJAY MT must report to the City any violations of the Montana Equal Pay Act that AJAY MT has been found guilty of within 60 days of such finding for violations occurring during the term of this Agreement. AJAY MT shall require these nondiscrimination terms of its sub-contractors providing services under this Agreement. L. Compliance with Laws. The Parties 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. 21 MOU AJAY MT & City of Bozeman – SJP 2024, page 6 M. Nonwaiver. 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 condition or to pursue any available legal or equitable rights in the event of any subsequent default or breach. N. Attorney’s Fees and Costs. In the event it becomes necessary for either Party of this Agreement 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 shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel to include City Attorney. O. 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. P. Counterparts. This Agreement may be executed in counterparts, which together constitute one instrument. Q. Advertising. Either Party may advertise or share information concerning this MOU in any form and with any media without the consent of the other Party subject to any specific restrictions detailed in the MOU. R. 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. By signing below, each Party agrees and acknowledges that this Memorandum of Understanding accurately reflects their mutual understanding, and that each of them agrees to be bound by the terms and conditions of this Memorandum of Understanding. _______________________________ _______________________________ City Representative AJAY MT Representative _______________________________ Gabrielle Eklund Rowley 11/21/2023 Printed name Date Printed name Date 22 Memorandum REPORT TO:City Commission FROM:Jennifer A. Giuttari, Assistant City Attorney Greg Sullivan, City Attorney SUBJECT:Residential Lease Agreement for City-Owned House at Water Treatment Plant MEETING DATE:December 12, 2023 AGENDA ITEM TYPE:Agreement - Legal RECOMMENDATION:Authorize the City Manager, or their designee, to sign the residential lease agreement for city-owned house at Water Treatment Plant. STRATEGIC PLAN:6.1 Clean Water Supplies: Ensure adequate supplies of clean water for today and tomorrow. BACKGROUND:The city recognizes that it is beneficial for the City to have a Water Treatment Plant ("Plant") employee living near the Plant. Because of this, the city leases a city-owned single family house to a city employee. The city's residential lease agreement for its house at the Water Treatment Plant was last updated in 2003. The attached lease agreement is an updated and revised lease agreement. UNRESOLVED ISSUES:None. ALTERNATIVES:As determined by the City Commission. FISCAL EFFECTS:None. Attachments: 221204 Sourdough House LL-T Agmt.pdf Report compiled on: November 29, 2023 23 1 LEASE This Lease Agreement (“Lease”), made and entered into this ____ day of _________, 2023 by and between the City of Bozeman, Montana, a self-governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 N Rouse Ave. Bozeman, Montana, 59715, hereinafter referred to as “City,” and Jill Miller, 7022 Sourdough Canyon Road, Bozeman, Montana, 59715, hereinafter referred to as “Lessee.” The City and Lessee may be referred to collectively as “Parties.” It is mutually understood and agreed by and between the Parties the following: 1. Premises. The Lessee agrees to lease 7022 Sourdough Canyon Road, Bozeman, Montana (“Premises”). The Premises include a three (3)-bedroom/two (2)-bath, single-family home, garage and immediate yard area of the single-family home owned by the City of Bozeman located within the gated vicinity of the City's Water Treatment Plant (“Plant”). There are three (3) keys to the Premises. Lessee may possess two (2) keys. One (1) key must be kept on-site at the Plant. 2. Employment Status. Lessee is employed by the City as the Superintendent at the Plant. While it is beneficial for the City to have a Plant employee living near the Plant, this Lease does not bind the Parties to any obligations outside of the terms and conditions of employment. 3. Term. The term for this Lease for the Premises is three (3) years, beginning January 1, 2024. If Lessee’s employment with the City terminates for any reason, this Lease will terminate concurrently with employment status. See paragraph 11 of this Lease for provisions regarding Lessee’s obligation to vacate the premises upon separation from employment. 4. Rent and Deposit. a. Rent. For the entirety of this Lease, Lessee must pay rent monthly beginning on the first of every month, with the funds being applied to the previous month's rent. Lessee’s rent is not a part of their compensation for employment, and therefore is exempt from the housing rates established by the Montana Department of Labor. Lessee agrees to have the rental sum automatically deducted from their monthly paycheck from the City, beginning with the January 2024 paycheck. The City does not consider the difference between the rental amount for the Premises and the Montana Workers’ Compensation housing rates to be a benefit to the employee that needs to be included for premium or potential benefits calculations. Dates Monthly Rent Year 1: January 1, 2024 – December 31, 2024 $800.00 Year 2: January 1, 2025 – December 31, 2025 $900.00 Year 3: January 1, 2026 – December 31, 2026 $1,000.00 b. Deposit. Lessee understands and agrees that no lease deposit is required. However, upon 24 2 termination of the Lease, Lessee and the City will jointly inspect the property, and any property damage identified and not repaired by Lessee to the City’s satisfaction will be repaired by the City. In this instance, the cost of the repairs will be withheld from Lessee’s next monthly paycheck or final paycheck, whichever the case may be. 5. Utilities. Gas, water, electricity, and sewer utilities are included in the Rent due, as listed in paragraph 4 of this Lease for the entire Premises. Lessee is permitted to use the Plant’s garbage dumpster, at no additional cost, to dispose of their personal garbage. 6. Lessee’s Obligations. a. Lessee must comply with all obligations primarily imposed upon tenants by applicable provisions of building and housing codes materially affecting health and safety; keep that part of the premises that the tenant occupies and uses as reasonably clean and safe as the condition of the premises permits; dispose from the dwelling unit all ashes, garbage, rubbish, and other waste in a clean and safe manner; use in a reasonable manner all electrical, plumbing, sanitary, heating, ventilating, air-conditioning, and other facilities and appliances, including elevators, in the premises; and conduct oneself and require other persons on the premises with the Lessee’s consent to conduct themselves in a manner, that will not disturb the neighbors' peaceful enjoyment of the premises; b. Lessee may not destroy, deface, damage, impair, or remove any part of the premises or permit any person to do so; c. Lessee may not engage or knowingly allow any person to engage in any activity on the premises that creates a reasonable potential that the premises may be damaged or destroyed or that neighboring tenants may be injured; d. Lessee, at their own expense, must maintain the Premises and keep them in the same condition as when they took possession, including but not limited to light fixtures and bulbs as well as all daily maintenance, cleaning and upkeep. Further, Lessee is responsible for caring for the grounds, including but not limited to, mowing, watering, snow removal of the sidewalk in front of the house on the Premises, and fence maintenance for any fencing Lessee installs. Lessee is responsible for maintaining carbon monoxide and smoke detectors; e. Lessee will not make any changes or alterations to the property without having first obtained the written consent of the City; f. Lessee is responsible for maintaining in good and safe working order and condition the Galaxy refrigerator, and the General Electric washer and dryer, which Lessee purchased and which are considered their personal property; and 7. The City’s Obligations. a. The City is responsible for maintaining in good and safe working order and condition all electrical, plumbing, sanitary, heating ventilating, air-conditioning, and other appliances supplied by the City. The City’s maintenance and repair obligations do not include any appliances purchased and installed by Lessee; b. The City must comply with the requirements of applicable building and housing codes materially affecting health and safety in effect at the time of original construction in all dwelling units where construction is completed after July 1, 1977; c. The City must make repairs and do whatever is necessary to put and keep the premises in a fit and habitable condition, except when it is the Lessee’s responsibility as set forth in paragraph 6 of this Lease or otherwise required by law; 25 3 d. The City must keep all areas of the Water Treatment Plant that are adjacent to the Premises in a clean and safe condition; e. The City must provide and maintain appropriate receptacles and conveniences for the removal of ashes, garbage, rubbish, and other waste incidental to the occupancy of the Premises and arrange for their removal; f. The City must supply running water and reasonable amounts of hot water at all times and reasonable heat; and g. The City must install an approved carbon monoxide detector, in accordance with rules adopted by the Department of Labor and Industry, and an approved smoke detector, in accordance with rules adopted by the Department of Justice on the Premises. The City must verify the carbon monoxide detector and the smoke detector in the dwelling unit are in good working order prior to the Lease effective date. h. If City needs to enter the Premises, City must provide Lessee with 72-hours’ notice unless there is a case of emergency, which means an extraordinary occurrence beyond the Lessee’s control requiring immediate action to protect the Premises or Lessee. A case of emergency may include the interruption of essential services, including heat, electricity, gas, running water, hot water, and sewer and septic system service, or life-threatening events in which the Lessee or the City has reasonable apprehension of immediate danger to the Lessee or others. 8. Re-Possession of Premises Upon Termination. When this Lease terminates, Lessee will re-deliver possession of the Premises, including all affixed improvements, to the City in as good condition and state of repair as the same shall be at the time this Lease takes effect, reasonable wear, tear and damage by the elements excepted. Lessee agrees to provide the City with the two (2) keys in their possession upon Lease termination. 9. Use of the Premises. It is understood and agreed that Lessee is entering into this Lease for the purposes of using the Premises for their personal residence, and includes only the Lessee and their immediate family. Immediate family is defined as Lessee’s spouse or significant other, and children. The names of all persons residing in the house under this Lease must be provided to the City upon execution of the Lease, and upon any change of residents in writing. For visitors staying longer than seven (7) days, Lessee must first obtain permission from City prior to the beginning of the visitor’s stay. Lessee agrees that their guests will not access any areas at the Plant for which the guest is unauthorized to enter. 10. No Right to Sub-Lease or Use the Premises as a Short-Term Rental. Lessee shall not assign or sublet the Premises to any individual. Lessee is prohibited from using the Premises as a short-term rental, as defined by the Bozeman Municipal Code. 11. Pets. Pets may be allowed with the written consent of City, which must be obtained before pet(s) is brought onto premises. 12. Default. Lessee agrees that the terms of this Lease, any rules and regulations that may be established pursuant to paragraph 14(a) of this Lease, constitutes an independent condition of Lessee’s right to possess the Premises. Lessee’s failure to comply with one (1) or more such terms or conditions constitutes a default of this Lease. 26 4 13. Cancellation of Lease. At any time prior to this Lease terminating, either Party may terminate this lease for any reason. Should the City wish to terminate the agreement, it will give Lessee sixty (60) days’ notice of its intention to do so. Lessee will give the City at least two (2)- weeks' notice of their intention to terminate the lease for any reason. Should the City terminate Lessee from their employment, Lessee will be required to vacate, surrender the Premises, and return all keys to the City within 72-hours of their employment termination date. Notice by either party must be in-writing and, if sent to the City, must be provided to the individual listed in paragraph 14(f). Lessee’s notice must specify the effective date of the termination. Further, it is agreed that if the Premises are damaged by fire or other casualty as to be rendered to be untenable or virtually unusable, this Lease will terminate and come to an end with no penalty to either party. 14. Indemnification. Lessee agrees to indemnify, defend and hold City harmless of and from any and all liability, damage, expense, cause of action, suits, claims or judgments resulting from injury to persons or property occurring upon the Premises or which arise out of the use or occupancy thereof by Lessee, Lessee’s agents, employees, invitee or guests. 15. Insurance. Lessee understands and agrees that City’s insurance will not cover loss of Lessee’s personal belongings. Lessee agrees to maintain and pay for general renter's and liability insurance at all times that this Lease is valid and in effect. Lessee’s insurance must name the City as an "additional insured" under the liability policy or policies. All insurance must remain in effect for the entire Lease term including any extensions. The policy or policies will contain a provision that no cancellation will be effective without thirty (30) days written notice to the City and Lessee. Annually, Lessee must provide the City with proof of insurance. 16. Miscellaneous Covenants and Provisions. a. Lessee agrees to conform to such any rules and regulations regarding the Premises that the City establishes. b. Neither Lessee nor the City shall be deemed to have waived any provision of this Lease unless such waiver is in writing signed by the City and Lessee. c. All modifications of this Lease must be in writing. d. The obligations and conditions of this Lease are deemed continuing and any forbearance by the City to enforce forfeiture on the occasion of one (1) or more breaches of this Lease, shall not be construed as a waiver of the right to enforce such forfeiture on any subsequent breach. e. Unless otherwise provided herein, all notices prescribed herein shall be written and served by registered mail and directed to the City at Post Office Box 1230, Bozeman, Montana 59771-1230, Attention: Director of Utilities, or such other place as the City may specify in writing, and to Lessee at 7022 Sourdough Canyon Road, Bozeman, Montana, 59715, or at such other place as Lessee may specify in writing. f. In the event it is necessary for either Party to bring any action to enforce the terms and covenants of this agreement, the prevailing party shall be entitled to reasonable attorney fees including fees and salary paid by the City to the City Attorney or other in-house counsel. g. This Lease must be interpreted according to the laws of the State of Montana. Venue in any dispute arising from this agreement shall be in the Eighteenth Judicial District, Gallatin County, Montana. 27 5 h. It is mutually agreed that time shall be of the essence of this Lease, that the terms hereof shall bind the heirs, personal representatives, successors and assigns of the parties and that all prior understandings of the Parties, either written or oral are merged herein and that this document constitutes the entire understanding of the Parties. i. The provisions of this Lease are severable and the invalidity or unenforceability of any provision of this Lease shall not affect or impair any other provision. j. Lessee agrees to keep the property free of all liens during the existence of this Lease or any renewals thereof and it is expressly agreed that the City shall not be liable for any obligation incurred on or in connection with said premises by Lessee unless otherwise herein provided. It is agreed that no liens may be filed against the City’s interest herein by reason of such obligation. 17. Acknowledgment and Waiver. As a Plant employee, Lessee is fully aware that hazardous chemicals are maintained at the Plant. Lessee acknowledges the detrimental health effects of a hazardous chemical leak for, and on behalf of, all persons residing or visiting the leased premises. Lessee further acknowledges the Plant operates 24-hours per day, 365 days per year, and that Plant personnel access and leave the Plant via the driveway between the house and garage covered under this Lease. Lessee further acknowledges that because the Plant operates 24-hours a day, maintenance work, equipment, and motors will generate noise, and that the noise may constantly occur throughout a 24-hour period. IN WITNESS WHEREOF, date effective as written above. LESSOR: CITY of BOZEMAN By: _________________________________ City Manager LESSEE: By:___________________________________ Jill Miller 28 Memorandum REPORT TO:City Commission FROM:Nicholas Ross, Director of Transportation and Engineering SUBJECT:Authorize the City Manager to sign an Interlocal Agreement, a Memorandum of Agreement Establishing the Gallatin Valley Metropolitan Planning Process (3Cs Agreement), and the Designation Letter to the Montana Governor for the Gallatin Valley Metropolitan Planning Organization MEETING DATE:December 12, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign an Interlocal Agreement, a Memorandum of Agreement Establishing the Gallatin Valley Metropolitan Planning Process (3Cs Agreement), and the Designation Letter to the Montana Governor for the Gallatin Valley Metropolitan Planning Organization STRATEGIC PLAN:1.3 Public Agencies Collaboration: Foster successful collaboration with other public agencies and build on these successes. BACKGROUND:Bozeman and the surrounding urbanized area surpassed a population of 50,000 people in the 2020 Census, which triggers the requirement under federal law (23 U.S.C. 134) to form a Metropolitan Planning Organization (MPO). An MPO is a planning organization for regional transportation needs. The MPO plans for future regional transportation demand, engages with the public, and prioritizes investment in transportation projects using federal funds. In order to establish an MPO for the Bozeman area, certain agreements must be completed between the joining parties and an official Designation Request letter must be sent to the Governor of Montana for approval. First, the Interlocal Agreement establishes how local governments will manage, staff, fund, and share responsibilities of the MPO. This document identifies the jurisdiction to receive and administer federal MPO funding on behalf of the MPO, the jurisdiction that will host the MPO and its staff, and details regarding various additional issues. The joining parties of the Interlocal Agreement include the city of Bozeman, city of Belgrade, and Gallatin County. Second, the 3-C's Agreement addresses the continuing, cooperative, and comprehensive transportation planning process for the MPO. This document establishes name and purpose of the MPO and its committees, the function, 29 membership, and responsibilities of said committees, and general planning process. The joining parties of the 3-C's Agreement include city of Bozeman, city of Belgrade, Gallatin County, Gallatin Valley Urban Transportation District and Montana Department of Transportation. The Designation Letter then identifies the designated entity that will serve as the MPO, which has been agreed to be the Gallatin Valley Transportation Policy Coordinating Committee. UNRESOLVED ISSUES:None ALTERNATIVES:None FISCAL EFFECTS:The Gallatin Valley MPO will primarily be funded through reimbursable Federal planning funds. The city of Bozeman will be responsible for 50% of additional costs incurred through the administration of the MPO. Attachments: MPO ILA Final 22 1 23.pdf 3-C-Cooperative Agreement FINAL 12 1 23 .pdf MPO Designation Request Letter.pdf Report compiled on: November 30, 2023 30 Return to: Gallatin County 311 West Main Street Bozeman, MT 589715 Attn: Nicole (Cola) Rowley Deputy Gallatin County Administrator Interlocal Agreement for the Gallatin Valley MPO Page 1 of 6 INTERLOCAL AGREEMENT FOR TRANSPORTATION PLANNING SERVICES BETWEEN GALLATIN COUNTY, CITY OF BOZEMAN, AND CITY OF BELGRADE This Interlocal Agreement (“Agreement”) is made pursuant to Title 7, Chapter 11, Part 1, Montana Code Annotated (“MCA”) among Gallatin County (“County”), a political subdivision of the State of Montana with principle offices at 311 West Main Street, Bozeman, Montana 59715; the City of Bozeman (“Bozeman”), a self-governing municipality with principal offices at 121 North Rouse Avenue, Bozeman, Montana 59715, and the City of Belgrade (“Belgrade”), a self-governing municipality with principal offices at 91 East Central Avenue, Belgrade, Montana 59714 (collectively “Parties”). WHEREAS, the Parties have the authority to enter into this Agreement pursuant to Sections 7-11-101 through 7-11-108, MCA; and WHEREAS, data from the 2020 Census indicates the population in the greater Bozeman area required for establishing a Metropolitan Planning Organization has been exceeded requiring the creation of a Metropolitan Planning Organization; and WHEREAS, the Parties represent the affected local units of government representing 75 percent of the population in the entire metropolitan area; and WHEREAS, the Parties find and agree that it is in the best interests of the citizens of each government entity to cooperate in and maintain a comprehensive transportation planning process and establish a Metropolitan Planning Organization. NOW, THEREFORE, in consideration of the mutual promises, benefits, and covenants made herein, the Parties agree as follows: 1. PURPOSE OF INTERLOCAL AGREEMENT. The purpose of this Agreement is to facilitate the creation of the Gallatin Valley Metropolitan Planning Organization (the “Gallatin Valley MPO”). The Gallatin Valley MPO will enhance the ability of the Parties to carry out planning, coordination and integration of activities necessary to maintain a comprehensive, cooperative, and continuing multi-agency transportation planning process. The Gallatin Valley MPO must include the Montana Department of Transportation and the Gallatin Valley Urban Transportation District and thus creation of the MPO is formally memorialized through a separate “Memorandum of Agreement Establishing the Gallatin Valley Metropolitan Transportation Process and Creating the Gallatin Valley Transportation Coordinating Committee (the “MOA for the Gallatin Valley MPO”). The purpose of this Agreement, therefore, is to establish 31 Interlocal Agreement for the Gallatin Valley MPO Page 2 of 6 understandings and commitments from the Parties as to how to fund and administer the Gallatin Valley MPO. 2. ADMINISTRATION. 2.1 Bozeman will be the host agency and perform all administrative functions of the Gallatin Valley MPO, including receipt and administration of federal funds, staffing, payroll, record and information management. 2.2 Bozeman will provide office space, information technology, and all equipment necessary to provide staff support for the Gallatin Valley MPO. 2.3 All real and personal property necessary for the Parties to create and operate the Gallatin Valley MPO will be acquired and owned by Bozeman. 2.4 Unless a conflict exists, legal services for the Gallatin Valley MPO’s functions shall be carried out by the Bozeman City Attorney’s Office. If a conflict exists, the Bozeman City Attorney must notify the Transportation Policy Coordinating Committee (“TPCC”) members. In such a case, the Parties will work cooperatively to retain alternative counsel. 2.5 Bozeman is authorized, subject to consultation with the TPCC of the Gallatin Valley MPO, as established pursuant to the MOA for the Gallatin Valley MPO, to enter all contracts necessary to perform the functions of the Gallatin Valley MPO. In doing so, all such contracts will be subject to Bozeman’s contracting and procurement policies. 3. STAFFING. 3.1 The principal employee (“Employee”) assigned to the Gallatin Valley MPO will be a Bozeman employee. The TPCC will create a staffing committee to advise Bozeman during the hiring process of the Employee. The staffing committee will consist of the following members of the TPCC: (1) Bozeman Mayor, or designee; (2) Bozeman Commissioner, or designee; (3) Belgrade City Manager, or designee; (4) Gallatin County Commission Chair, or designee. Additional personnel hired specifically for the Gallatin Valley MPO will be Bozeman employees and will report to the Employee. Bozeman must follow its employment policies for all employees hired to provide services to the MPO. 3.2 Each Party may also donate their own employees to support the Gallatin Valley MPO; if so, any such additional staff support provided by Belgrade or the County to support the Gallatin Valley MPO will not be considered employees of the Gallatin Valley MPO or of Bozeman. In such a case, each Party will provide office space and all necessary equipment for their staff as needed, at no cost to the other Parties or the Gallatin Valley MPO. Such employees are subject to the employment policies of the organization that employs them. 32 Interlocal Agreement for the Gallatin Valley MPO Page 3 of 6 As such, each party shall be responsible for all claims arising from its respective employer/employee relationships with respect to any donated employee of the Party during any time that the employee of the Party is working on Gallatin Valley MPO matters. For the purpose of this agreement, elected and appointed public officials are included in the employer/employee relationship. Examples of the employer/employee relationship include selection, termination, discipline, benefits, and equal employment opportunity issues. Each Party shall provide its own Workers' Compensation coverage as provided by law with respect to any donated employee of the Party during any time that the employee of the Party is working on Gallatin Valley MPO matters. 3.3 Bozeman will be responsible for reporting and payment of retirement systems contributions for its employees. Gallatin County and Belgrade will be responsible for reporting and payment of retirement system contributions for any employee provided by them to assist with the Gallatin Valley MPO. 4. FUNDING/ADDITIONAL COVERED PARTY. 4.1 The Gallatin Valley MPO will be allocated federal funding. Bozeman, on behalf of the Gallatin Valley MPO in its capacity as the host agency, may seek reimbursement from federal funds allocated to the Gallatin Valley MPO for all costs which are eligible for reimbursement pursuant to federal law. For any costs of administering the Gallatin Valley MPO not eligible for Federal funding, Bozeman shall pay 50%, Gallatin County shall pay 25%, and Belgrade shall pay 25% of additional funding necessary for the completion of core functions of the Gallatin Valley MPO. 4.2 Grant match, project, or non-core function costs will be divided equally between the Parties, or divided as agreed between the Parties on an equitable basis regarding a specific project. Each Party shall anticipate costs that will be required in addition to federal funding and submit budget requests during the annual budgeting processes. Expenditures by the Gallatin Valley MPO shall not exceed amounts budgeted by the Parties. 4.3 Nothing herein subjects the Parties’ non-federally funded transportation projects to this Agreement if such projects are funded solely through a Party’s own capital improvement plan. 4.4 Bozeman will seek to acquire through the Montana Municipal Interlocal Authority (the “MMIA”) an additional covered party endorsement providing liability coverage through the MMIA Memorandum of Liability Coverage for the TPCC of the Gallatin Valley MPO. Such coverage will not cover individual members of the TPCC or individual members of the Transportation Technical Advisory Committee (TTAC). The Parties agree to reimburse Bozeman for costs of providing such coverage, including a party’s share of any deductible owed by the 33 Interlocal Agreement for the Gallatin Valley MPO Page 4 of 6 City, pursuant to the allocation provided in this section. Such endorsement will be limited to liability coverage only as provided for in the MMIA’s Memorandum of Liability Coverage. 5. DATA COLLECTION AND SHARING. Each Party to this Agreement shall be responsible to participate in data collection, tracking and sharing in their respective jurisdiction as needed to support the work of the Gallatin Valley MPO. 6. RETAINED AUTHORITY. Each Party to this Agreement shall retain jurisdiction over roadways within their respective jurisdictions. The Gallatin Valley MPO will coordinate project specifics among the respective jurisdictions as needed through the MPO planning process. 7. REQUEST FOR ASSISTANCE. Each Party to this Agreement may request reasonable assistance from the Gallatin Valley MPO or any other Party on local transportation planning matters. Such assistance shall be provided at no cost to the requesting Party. 8. REQUEST FOR MODIFICATION. The Parties agree to participate in discussions regarding modifications to this Agreement in the event of a significant change in relative populations of the respective jurisdictions. 9. EFFECTIVE DATE. This Agreement shall be effective on the date the last party executes this Agreement and its effectiveness is contingent upon designation of the MPO entity by the Governor of Montana 10. NO SEPARATE LEGAL ENTITY. This Agreement does not create a separate legal entity. 11. TERM. This Agreement shall be perpetual, unless modified or terminated as provided in this Agreement. 12. AMENDMENT. The terms and conditions of this Agreement may not be amended except by an instrument in writing executed by the Parties. 13. TERMINATION. Any party may terminate its participation in this Agreement when its governing body adopts a resolution for termination and it serves written notice of intent to terminate on the other Parties, not less than six months before the end of the current fiscal year. 14. NON-WAIVER. Waiver by any party of strict performance of any provision of this Agreement shall not be a waiver of or prejudice to any of the party’s rights to require strict performance of the same provision in the future or of any other provisions. 15. REPRESENTATIVES. The Parties’ primary representative for purposes of this Agreement shall be each Party’s chief administrative officer or designee. 34 Interlocal Agreement for the Gallatin Valley MPO Page 5 of 6 16. 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. 17. 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. 18. APPLICABLE LAW AND VENUE. This Agreement shall be governed by the laws of the State of Montana and any action to enforce any right or obligation shall be brought in the Eighteenth Judicial District Court of Montana. 19. 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. 20. RECORDATION. The County will be responsible for filing an executed copy of this Agreement with the Gallatin County Clerk and Recorder and the Montana Secretary of State as required by Section 7-11-107, MCA. GALLATIN COUNTY, MONTANA By: ________________________________ Date: _____________________________ Chair, Board of County Commissioners ATTEST: ____________________________ Gallatin County Clerk and Recorder CITY OF BOZEMAN, MONTANA By: _______________________________ Date: _____________________________ Bozeman City Manager ATTEST: _______________________________ Bozeman City Clerk 35 Interlocal Agreement for the Gallatin Valley MPO Page 6 of 6 CITY OF BELGRADE By: ______________________________ Date: _____________________________ Belgrade City Manager ATTEST: _______________________________ Belgrade City Clerk 36 Agreement Establishing the Gallatin Valley Metropolitan Transportation Planning Organization Page 1 of 10 MEMORANDUM OF AGREEMENT ESTABLISHING THE GALLATIN VALLEY METROPOLITAN TRANSPORTATION PLANNING PROCESS AND CREATING THE GALLATIN VALLEY TRANSPORTATION POLICY COORDINATING COMMITTEE This Agreement is made by and between the City of Bozeman, hereinafter referred to as “Bozeman,” the City of Belgrade, hereinafter referred to as “Belgrade”, the Gallatin County, hereinafter referred to as "County", Montana Department of Transportation hereinafter referred to as “MDT,” and the Gallatin Valley Urban Transportation District, hereinafter referred to as “Gallatin Valley UTD.” The above entities are collectively referred to as the “Parties.” WHEREAS, 23 U.S.C. § 134, 23 U.S.C. § 150, and 49 U.S.C. § 5303 require a Metropolitan Planning Organization (MPO) be designated for each metropolitan area with a population of 50,000 or greater, as a condition of the receipt of Federal highway and transit funds, and that the metropolitan area has a continuing, cooperative, and comprehensive performance-based multimodal transportation planning process that provides for: consideration and implementation of projects, strategies, and services, that consider supporting economic vitality by enabling global competitiveness, productivity, and efficiency; increase and emphasize the safety, preservation, and security of the transportation system for motorized and non- motorized users; increase accessibility, mobility, integration, and connectivity of the transportation system for people and freight; protect and enhance the environment, promote energy conservation, improve the quality of life, and promote consistency between transportation improvements and State and local planned growth and economic development patterns; promote efficient system management and operation; emphasize the preservation of the existing transportation system; improve the resiliency and reliability of the transportation system and reduce or mitigate stormwater impacts of surface transportation; and enhance travel and tourism; and WHEREAS, Bozeman, Belgrade, and the County entered into an Interlocal Agreement on _____________, 2023, that establishes each entity’s responsibilities and commitments in creating, administering, and financing the Gallatin Valley Metropolitan Planning Organization (“Gallatin Valley MPO”); and WHEREAS, the Parties desire to continue to cooperate in the transportation planning process now in progress and further desire to ensure transportation planning is an integral part of continuing, cooperative, and comprehensive transportation planning; and, WHEREAS, the Parties desire to take a performance-driven, outcome-based approach to 37 Agreement Establishing the Gallatin Valley Metropolitan Transportation Planning Organization Page 2 of 10 transportation planning and programming linking investment decision making to the achievement of performance targets; and, WHEREAS, upon execution of this Agreement, the Parties hereby establish the Gallatin Valley Transportation Policy Coordinating Committee (TPCC) as the official planning agency for purposes of the Parties’ responsibility to establish a MPO and request the Governor of the State of Montana designate the same as the Gallatin Valley MPO; and, WHEREAS, upon execution of this Agreement and designation by the Governor of Montana, the TPCC shall be the official governing body of the Gallatin Valley MPO Metropolitan Transportation Planning Process, thus having final local approval of all Federal Surface Transportation Program-Urban Funded transportation projects in the Gallatin Valley Metropolitan Planning Area (MPA), as well as approval of the Metropolitan Transportation Plan, the Transportation Improvement Plan, and the Unified Planning Work Program, and any other required MPO documents; and, WHEREAS, the Gallatin Valley UTD operates a transit system and maintains responsibility for providing district residents with safe and reliable transit service, as well as implementing improvements to meet changing travel needs and as such is a member of the Gallatin Valley MPO and the TPCC; and, WHEREAS, MDT is responsible for assuring that the planning, design, approvals and environmental clearances, construction, and maintenance of state and federally-designated highway system facilities provide for the benefit of the traveling public in a safe and efficient manner in accordance with Title 23 United States Code (U.S.C.) and related federal regulation and guidance and Title 60, Montana Code Annotated (MCA); and, WHEREAS, 23 U.S.C. § 104 (d) and 49 U.S.C. § 5303 provide planning funds (PL and Section 5303) for the purpose of carrying out metropolitan transportation planning requirements of Section 134 of Title 23, USC; and, WHEREAS, Bozeman, on behalf of the Gallatin Valley MPO and as host agency for the Gallatin Valley MPO, shall execute or cause to be executed separate agreements with MDT for the distribution of PL and Section 5303 funds; and, WHEREAS, Bozeman, on behalf of the Gallatin Valley MPO and as host agency for the Gallatin Valley MPO, shall execute or cause to be executed separate agreements with MDT for the roles and responsibilities for the development of financial plans that support the transportation plan, transportation improvement program, and annual listing of obligated projects; and, 38 Agreement Establishing the Gallatin Valley Metropolitan Transportation Planning Organization Page 3 of 10 WHEREAS, Bozeman, on behalf of the Gallatin Valley MPO and as host agency for the Gallatin Valley MPO shall execute or cause to be executed separate agreements with MDT for the roles and responsibilities for air quality conformity; and developing and sharing performance data, setting performance targets, reporting targets, and tracking progress towards meeting targets. NOW, THEREFORE, the Parties mutually agree: I. The TPCC is established as the policy and governing board of the Gallatin Valley MPO to cooperatively carry out transportation planning and programming in the Gallatin Valley Metropolitan Planning Area through the following established forum and process. II. The TPCC must carry out the metropolitan transportation planning process and work cooperatively to develop the Long-Range Transportation Plan, the Transportation Improvement Program, the Unified Planning Work Program, and any amendments or updates to these plans. The TPCC shall have the ultimate authority and responsibility to approve all plans and programs related to Public Participation, Transportation Planning, the Scope of Services, and the Work Program. The TPCC shall have the ultimate authority and responsibility to approve the allocation of federal PL and section 5303 funding to the transportation planning projects established pursuant to the transportation planning process as outlined in this Agreement. The TPCC shall coordinate transportation planning with providers of transportation services and transportation infrastructure. III. The Transportation Policy Coordinating Committee (TPCC) shall consist of the following: A. Voting Members: 1. Bozeman Mayor or designee; 2. Bozeman Commissioner appointed by the Bozeman Commission or designee; 3. Belgrade City Manager or designee; 4. Gallatin County Commission Chair or designee; 5. Montana Department of Transportation (MDT) District Administrator or designee; 6. Gallatin Valley UTD Chair or designee; and 7. At-large member elected by all other TPCC members. The at-large member shall have education and/or experience in transportation engineering or planning. The at-large member may only be selected following an application process determined by the TPCC. A tie vote for the at-large member is a failed vote. 39 Agreement Establishing the Gallatin Valley Metropolitan Transportation Planning Organization Page 4 of 10 B. Non-Voting Members: 1. Division Administrator, Federal Highway Administration, or designee; and 2. Region 8 Administrator, Federal Transit Administration, or designee C. Proxy voting is prohibited. D. Additional non-voting members of the TPCC may be established and appointed by a majority of the membership of the TPCC if such an appointment is determined to be necessary or useful by the committee. IV. The Parties hereby also establish the Transportation Technical Advisory Committee (TTAC). The TTAC shall provide the TPCC with technical advice necessary to carry out the continuing, comprehensive, and cooperative (3-C) transportation planning process in the Gallatin Valley MPA. The TTAC shall, at a minimum, consist of the following members: A. Voting Members: 1. Bozeman Director of Community Development or designee; 2. Bozeman Director of Transportation and Engineering or designee; 3. Belgrade Director of Community Development or designee 4. Belgrade City Engineer or designee; 5. County Chief Planning Officer or designee; 6. County Engineering Director or designee; 7. MDT Statewide and Urban Planning Supervisor or designee; 8. MDT District Preconstruction Engineer or designee; 9. Gallatin Valley UTD Director or designee; 10. Gallatin Valley UTD Operations Coordinator or designee; and 11. Montana State University Associate Vice President, Facilities Management or designee. B. Non-Voting Members: 1. Bozeman/Yellowstone International Airport Manager of Operations or designee 2. Gallatin City-County Health Officer or designee 3. Representative of Bozeman School District 7 or designee 4. Representative of Belgrade School District 44 or designee 5. Representatives from Bozeman’s, Belgrade’s, and the County’s planning or transportation related boards or commissions, as determined by each governing body. 40 Agreement Establishing the Gallatin Valley Metropolitan Transportation Planning Organization Page 5 of 10 Additional non-voting members of the TTAC may be established by the TPCC and if such positions are created, such members shall be appointed by nomination and approval by a majority of the voting members of TTAC, with final approval by TPCC. C. Members of the TTAC must represent specific technical skills and various jurisdictional multimodal viewpoints such as, schools, public health, etc. D. Each member of the TTAC may designate an alternate to serve in the member’s absence via written notice to the TTAC Chairperson. E. Designees may serve on a meeting-by-meeting basis or on a permanent basis. V. Public Participation. Procedures for encouraging public participation for the TPCC and the TTAC must be adopted by the TPCC. These procedures will describe methods to obtain additional local input in the planning process consistent with 23 C.F.R. §450 and Montana law. VI. Transportation Planning. The TPCC must conduct continuing, cooperative and comprehensive transportation planning in that portion of the Gallatin Valley that is expected to become urbanized during the forecast period as determined by federal law. This area shall be referred to as the Gallatin Valley MPA. The MPA must be approved by the TPCC and designated by the Montana Governor after the effective date of this Agreement. VII. Scope of Services. The transportation planning process the Gallatin Valley MPO must follow must be: A. Cooperative, Comprehensive, and Continuing: 1. Cooperative in that the County, Bozeman, Belgrade, MDT, and the Gallatin Valley UTD shall cooperatively accomplish the transportation planning process in response to the needs and changes occurring in the Gallatin Valley MPA. The Gallatin Valley MPO and MDT must coordinate their respective targets for performance measurement to ensure consistency to the maximum extent practicable. This includes, but is not limited to, identifying how performance-based planning provisions will be cooperatively implemented. 41 Agreement Establishing the Gallatin Valley Metropolitan Transportation Planning Organization Page 6 of 10 2. Comprehensive in that all elements affecting the Gallatin Valley MPA transportation planning must be considered. These elements and requirements are described in various documents published by the U. S. Department of Transportation. 3. Continuing in that the transportation planning process must continue indefinitely and shall be maintained as long as this Agreement is in force. B. The transportation planning process the Gallatin Valley MPO must follow will involve conducting the following general activities: 1. Establish a coordinated process for the collection and sharing of performance data, the selection of performance targets, reporting targets, and tracking progress towards meeting targets for the Gallatin Valley MPA; 2. Collect, maintain, analyze, and disseminate basic planning information, financial information and plans, and engineering data to support the development of the metropolitan transportation plan, annual listing of projects and transportation improvement program; 3. Serve the public and private sectors, by providing current information concerning plans, programs, projects, recommendations, and implementation schedules; 4. Prepare, update, and revise long and short-range transportation plans to consider all transportation modes in the transportation planning area; develop transportation improvement programs for implementation of transportation plans; prepare, update, and revise a public involvement plan; and, conduct air quality conformity determinations, to the extent required, for new or revised transportation plans and improvement programs; 5. Prepare and distribute transportation related materials, including but not limited to studies, reports, maps, plans, and annual listing of obligated projects, for documentation and information purposes; participate in transportation related meetings and seminars, at all levels of government; coordinate planning and plan implementation activities; and, conduct public information and involvement programs; and 6. Research, investigate, and develop estimating, forecasting, and related planning procedures. 42 Agreement Establishing the Gallatin Valley Metropolitan Transportation Planning Organization Page 7 of 10 VIII. Work Program – The TPCC must approve an annual Unified Planning Work Program (UPWP), which defines the urban transportation and transportation related planning activities to be conducted by the Gallatin Valley MPO, regardless of funding sources. The UPWP must include: A. A brief discussion of program objectives and accomplishments, including performance targets, during the previous 12-month period; and B. A description of major activities to be performed during the next year, the entity responsible for performing the work, the resulting work expected to be completed and a summary of the total amounts and sources of federal and other funds. IX. General provisions governing this Agreement are as follows: A. Effective Date. This Agreement shall be effective upon the date of execution by all parties to the Agreement. This Agreement is contingent upon designation by the Governor of Montana of the TPCC as the MPO for the Gallatin Valley. B. Amendments. Any amendments to the terms of this Agreement, as detailed herein, must be agreed to, in writing, by the parties. C. Bylaws. Both the TPCC and the TTAC must comply with bylaws to give effect to the purposes of this Agreement. TPCC bylaws must be approved by the TPCC. TTAC bylaws must be approved by the TPCC. D. Term of Agreement. This Agreement shall be perpetual, unless amended as provided in paragraph 2.B., above or terminated. Any party may terminate its interests and obligations under this Agreement by giving at least six months’ written notice to the other Parties. E. Non-Waiver. Waiver by any party of strict performance of any provision of this Agreement shall not be a waiver of or prejudice to any of the party’s rights to require strict performance of the same provision in the future or of any other provisions. F. 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. G. No Non-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. 43 Agreement Establishing the Gallatin Valley Metropolitan Transportation Planning Organization Page 8 of 10 H. Applicable Law. This Agreement shall be governed by the laws of the State of Montana and any action to enforce any right or obligation shall be brought in the Eighteenth Judicial District Court of Montana. I. 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 #### 44 Agreement Establishing the Gallatin Valley Metropolitan Transportation Planning Organization Page 9 of 10 IN WITNESS WHEREOF, the parties hereto have affixed their hands and seals the day and year first above written. APPROVED FOR CITY OF BOZEMAN Bozeman City Manager ATTEST: _______________________________ Bozeman City Clerk APPROVED FOR GALLATIN COUNTY _______________________________ Chair, Board of County Commissioners ATTEST: Gallatin County Clerk and Recorder APPROVED FOR CITY OF BELGRADE _______________________________ Belgrade City Manager ATTEST: _______________________________ Belgrade City Clerk 45 Agreement Establishing the Gallatin Valley Metropolitan Transportation Planning Organization Page 10 of 10 APPROVED FOR GALLATIN VALLEY URBAN TRANSPORTATION DISTRICT Chair, Gallatin Valley Urban Transportation District APPROVED FOR STATE OF MONTANA DEPARTMENT OF TRANSPORTATION Rail, Transit, and Planning Division Administrator, Montana Department of Transportation Legal Counsel, Montana Department of Transportation 46 December 5, 2023 Malcolm Long, Director Montana Department of Transportation 2701 Prospect Ave. Helena, MT 59623 Subject: Gallatin Valley MPO Designation Request The purpose of this letter is to request MDT’s assistance to obtain Governor Gianforte’s designation of the Gallatin Valley Transportation Policy Coordinating Committee as the Metropolitan Planning Organization (MPO) for the Bozeman Urban Area and the designation of the Gallatin Valley Urban Transportation District (GVUTD) as the recipient of Federal Transit Administration (FTA) funding for the metropolitan area on behalf of the City of Bozeman, Gallatin County, and the City of Belgrade. To carry out the metropolitan transportation planning process, 23 U.S.C. §134 requires an urban area with a population of more than 50,000 as delineated by the decennial census be designated an MPO. The US Census Bureau determined the 2020 Census Bozeman Urban Area population was 59,080 necessitating the formation of an MPO. MPO designation must be made by the Governor, in agreement with the units of local government that represent at least 75 percent of the urban area. The Gallatin Valley Transportation Policy Coordinating Committee meets this requirement. This letter, signed by all affected local jurisdictions, serves as our request to establish the Gallatin Valley MPO pending Governor designation. FTA makes funding available to urbanized areas for transit capital, operating assistance, and transportation-related planning (e.g., 49 U.S.C. 5307). The Gallatin Valley Urban Transportation District is the public transit provider for the area. The City of Bozeman, Gallatin County, and City of Belgrade are requesting that GVUTD be designated as the recipient of available FTA funds. If you have questions regarding this letter, please contact Nicholas Ross, City of Bozeman Director of Transportation and Engineering, at (406) 582-2315 or at nross@bozeman.net. Thank you in advance for your assistance. Sincerely, Jeff Mihelich Bozeman City Manager Date: ________________ Neil Cardwell Belgrade City Manager Date: ________________ Zach Brown Gallatin County Commission Chairperson Date: ________________ 47 copies: Nicholas Ross, Bozeman Director of Transportation and Engineering Levi Ewan, Gallatin County Engineer Tom Eastwood, City of Belgrade Engineer Cyndy Andrus, Bozeman Mayor Russ Nelson, Belgrade Mayor Geno Liva, MDT Butte District Administrator Carol Strizich, MDT Multimodal Planning Bureau Chief Mitch Buthod, MDT Statewide and Urban Section Supervisor Beth Clarkson, MDT Butte District Planner 48 Memorandum REPORT TO:City Commission FROM:Jon Henderson, Strategic Services Director SUBJECT:Authorize the City Manager to Sign a Letter of Agreement Accepting a Donation from the Bozeman Public Library Foundation for Furniture and Equipment for Phase 2 of the Bozeman Public Library Renovation Project MEETING DATE:December 12, 2023 AGENDA ITEM TYPE:Agreement - Agency/Non-profit RECOMMENDATION:Authorize the City Manager to Sign a Letter of Agreement Accepting a Donation from the Bozeman Public Library Foundation for Furniture and Equipment for Phase 2 of the Bozeman Public Library Renovation Project STRATEGIC PLAN:5.1 Civic and Cultural Infrastructure: Expand Bozeman's civic and cultural "infrastructure" as the city grows. BACKGROUND:This Letter of Agreement confirms the understanding reached by all parties and sets forth the terms and conditions of a contribution by the Bozeman Public Library Foundation to the City of Bozeman for furniture and equipment for Phase 2 of the Bozeman Public Library Renovation project. Details of the project and the specific responsibilities of each party are outlined in the Agreement between the Bozeman Public Library, the Bozeman Public Library Foundation, and the City of Bozeman signed and executed on August 17, 2021. UNRESOLVED ISSUES:None. ALTERNATIVES:As directed by the City Commission. FISCAL EFFECTS:Current project estimates total $5,677,534.00 to include all phases of pre- construction and construction services. To date, the Library Foundation has provided funding to the City totaling $4,710,671.83, and the City has committed $437,000.00 in support of the project through the Library Depreciation Fund. This Agreement accepts furniture and equipment assets totaling $174,486.11. Attachments: Bozeman Public Library Expansion Project - Furniture and Equipment Acceptance - Letter of Agreement - Phase 2.pdf Report compiled on: November 20, 2023 49 50 Letter of Agreement December 5, 2023 RE: Furniture and Equipment Acceptance for the Bozeman Public Library Expansion— Letter of Agreement – Phase 2 This letter of agreement (the “Agreement”) confirms the understanding reached by the parties and sets forth the terms and conditions of a contribution by the Bozeman Public Library Foundation (“BPLF”) to the City of Bozeman (“City”) for the acceptance of furniture and equipment for the Bozeman Public Library Expansion. 1. Parties to the Agreement and Notices: a. For BPLF Contact: Janay Johnson, Director Address: 626 East Main; Bozeman MT 59715 b. For City of Bozeman Contact: Cyndy Andrus, Mayor Address: 121 N. Rouse Ave; Bozeman MT 59715 2. Background: Furniture and equipment for the Bozeman Public Library Expansion project was procured directly by the Bozeman Public Library Foundation. This Agreement acknowledges the transfer of these assets totaling $174,486.11 to the City of Bozeman, as further defined in Exhibit A. Details of the project and the specific responsibilities of each party are outlined in the Agreement between the Bozeman Public Library, the Bozeman Public Library Foundation, and the City of Bozeman signed and executed on August 17, 2021. 3. BPLF Responsibilities: a. Transfer of all physical assets and background materials related to the procurement of furniture. 4. City of Bozeman Responsibilities: a. Document and maintain all physical assets and background materials related to the procurement of furniture. 5. Acceptance: 51 By signing below, the undersigned represent that they are authorized to act on behalf of their respective parties and to bind their respective parties to the terms of this Agreement, and that the undersigned parties have read, understand and agree to the above. Bozeman Public Library Foundation: Signed: ____________________________ Janay Johnson, Director Date: ______________________________ City of Bozeman: Signed: _____________________________ Jeff Mihelich, City Manager Date: _______________________________ 52 Contracted Vendor Contract Date Contract Amount Paid to Date Amount Owed Fndn FFE Transfer to City Contract Design Associates 8/5/2022 97,130.59$ 97,130.59$ -$ 97,130.59$ 360 Office Solutions 9/22/2022 60,475.02$ 60,475.02$ -$ 60,475.02$ Office Solutions & Services 4/7/2023 35,305.76$ 38,860.76$ -$ 38,860.76$ Contract Design Associates 4/19/2023 111,045.83$ 109,364.93$ -$ 2,669.98$ 106,694.95$ Fndn - 1 side table, 1 table, 2 chairs Non-Contracted Vendor Purchase Date Amount Paid Webstaurant - receptacles 2/28/2023 2,574.92$ 2,574.92$ UPLIFT - desks, chairs, file cabs 4/7/2023 11,277.00$ 3,057.93$ 8,219.07$ Fndn - 2 desks, 2 chairs, 2 file cabs 360 Office Solutions - shelving 4/21/2023 1,118.18$ 1,118.18$ UPLIFT - privacy screens 5/19/2023 298.00$ 298.00$ Fndn - 2 privacy screens Rypen - fndn storage 5/31/2023 2,887.00$ 2,887.00$ Fndn - 2 storage cabinets Versare - room divider 8/24/2023 1,986.00$ 1,986.00$ Total Expenses 325,972.40$ 8,912.91$ 317,059.49$ 325,972.40$ Direct FFE in budget $289,261.53 Transfer of Assets Phase 1 3/28/2023 160,180.53$ Transfer of Assets Phase 2 174,486.11$ Vendor Purchase Date Amount Paid Transfer to City Bambu 3D Printer 6/17/2023 1,511.99$ 1,511.99$ GlowForge Laser Cutter 6/28/2023 6,640.00$ 6,640.00$ Nintendo Switch (Amazon)11/6/2023 1,427.16$ 1,427.16$ 10 MacBook Air (Apple)11/14/2023 8,028.00$ 8,028.00$ Total Expenses 17,607.15$ 17,607.15$ 17,607.15$ Direct Equip in budget $20,000.00 Total Paid 343,579.55$ Total to Transfer 334,666.64$ Renovation Direct FFE Purchases Renovation Direct Equipment Purchases 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 Memorandum REPORT TO:City Commission FROM:Ellie Staley, Executive Director Downtown Bozeman Partnership SUBJECT:Authorize the City Manager to Sign a Second Amendment to the Professional Services Agreement with Design 5 Landscape Architecture to Continue Providing Design Services for the Downtown Bozeman Alleyways Beautification Project through completion of project. MEETING DATE:December 12, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign the Second Amendment to the Professional Services Agreement with Design 5 Landscape Architecture to continue providing design services for the Downtown Bozeman Alleyways Beautification Project through completion of project. STRATEGIC PLAN:4.4 Vibrant Downtown, Districts & Centers: Promote a healthy, vibrant Downtown, Midtown, and other commercial districts and neighborhood centers – including higher densities and intensification of use in these key areas. BACKGROUND:Attached is a copy of the Second Amendment to the Professional Services Agreement with Design 5 Landscape Architecture to continue providing design services for the Bozeman Alleyways Beautification Project through the completion of the project. The City entered into a Professional Services Agreement with Design 5 on September 27, 2022 to provide these services. The original agreement included an estimated cost of $37,500 and due to an extended deadline and unforeseen electrical engineering services, an additional amendment, extending the deadline to approve funding for these overages is requested due to the delay in the construction phase of this project. Upon concurrence of the Commission, this amendment will extend the contract for continued design services for the Downtown Bozeman Alleyway Beautifications Project at an hourly basis and will also include subcontractor for unforeseen electrical engineering work. All other provisions of the original agreement remain unchanged. UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the City Commission 75 FISCAL EFFECTS:Due to the delay of rebidding this project, the need for Design 5 to provide guidance until the project is under a general contractor is necessary. The time spent on bidding will be billed hourly and is outside of the $37,500 contracted amount for design. This includes preparing the bid documents, answering questions from contractors, pre-bid meeting, etc. There is an additional estimated cost for unexpected electrical engineering work at appx. $2,500, as we engaged a local contractor to assist with the photometric and lighting plan, including connection details to the power source in the parking garage. Overages will be billed at an hourly rate if amendment is approved and not to exceed $15,000. Attachments: PSA Second Amendment_Alleyways Beautification Project.pdf Report compiled on: November 30, 2023 76 Second Amendment to Professional Services Agreement for the Bozeman Alleyways Beautification Project FY 2023-2024 Page 1 of 3 SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT THIS SECOND AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT FOR the Bozeman Alleyways Beautification Project (Phase 2), dated 27th day of September, 2022 (the “Agreement”) is made and entered into this 12th day of December 2023, by and between the CITY OF BOZEMAN, MONTANA, a self governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City,” and Design.5 Landscape Architecture, hereinafter referred to as “Contractor.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree to amend the Agreement as follows: 1.Not To Exceed. Due to an extended bidding timeline and unexpected electrical engineering subcontractor work, the not to exceed provision at the end of the scope of work shall be increased by $15,000 for FY24. 2.Scope of Work. Scope of work is unchanged from original agreement. 3.Term/Effective Date. This amended agreement is effective upon adoption and will expire on the 30th day of September, 2024, unless earlier terminated in accordance with the agreement. 4.Nondiscrimination and Equal Pay: Section 14 of the Agreement is replaced in its entirety with the following: The Contractor agrees that all hiring by Contractor of persons performing this Agreement shall be on the basis of merit and qualifications. The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an 77 Second Amendment to Professional Services Agreement for the Bozeman Alleyways Beautification Project FY 2023-2024 Page 2 of 3 age, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. Contractor represents it is, and for the term of this Agreement will be, in compliance with the requirements of the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act). Contractor must report to the City any violations of the Montana Equal Pay Act that Contractor has been found guilty of within 60 days of such finding for violations occurring during the term of this Agreement. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 1.Agreement still valid. All remaining terms and provisions of the Agreement remain valid. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** 78 Second Amendment to Professional Services Agreement for the Bozeman Alleyways Beautification Project FY 2023-2024 Page 3 of 3 IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA DESIGN 5 ARCHITECTURE By________________________________ By_____________________________ Jeff Mihelich, City Manager Print Name: Title: APPROVED AS TO FORM By_______________________________ Greg Sullivan, Bozeman City Attorney 79 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 5402, Adoption of Annexation for the South 3rd Annexation, Annexing 1.17 acres and Adjacent Rights-of-Way, Application 21161 MEETING DATE:December 12, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Adopt Resolution 5402 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 21161 on February 1, 2022 to annex 1.17 acres and establish an initial zoning designation of R-3 (Residential Medium Density District) subject to terms of annexation and contingencies for zoning. Final documents and easements were approved by the Engineering Department on November 6, 2023. A signed annexation agreement was received on November 7, 2023. The property is on the west side of south 3rd Avenue and to the southeast of the Museum of the Rockies property. The property underwent a Growth Policy Amendment in December 2021 to change the designation from PLI to Urban Neighborhood, see Resolution No. 5367. Subsequently an application to annex the property and establish an initial municipal zoning of R-3 was submitted, reviewed, and approved. South 3rd Avenue is a designated collector street in the Bozeman Transportation Plan. This annexation will bring in additional right of way to build out South 3rd Avenue to the full city street classification as would be required with future development. The Future Land Use Map in the Bozeman Community Plan (BCP) 2020 designates the property as “Urban Neighborhood” which includes the R-3 district as an implementing zoning district. The property currently hosts a detached single-household residential 80 structure connected to an individual well and septic system. 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: 2913-00821 11x17 ANNEX 4-11-22.pdf 21161 South 3rd Annex Resolution 5402.pdf 21161 S 3rd Annexation Agreement.pdf Report compiled on: November 20, 2023 81 82 Version April 2020 Page 1 of 3 RESOLUTION 5402 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 SOUTH 3RD ANNEXATION, APPLICATION 21161. WHEREAS, the City of Bozeman received a petition for annexation from CBJ, LLC requesting the City Commission to extend the boundaries of the City of Bozeman so as to include an area of land containing approximately 01.17 acres, addressed at 2303 South 3rd 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 February 1, 2022; and WHEREAS, a public meeting on said annexation petition was duly noticed and held on February 1, 2022; and WHEREAS, the City did not receive any written protest from the real property owners of the area to be annexed; and WHEREAS, on December 5, 2023, the Commission received the executed annexation agreement addressing all recommended terms of annexation; and WHEREAS, the provision of available services, including, but not limited to, streets, 83 Version April 2020 Page 2 of 3 rights-of-way, easements, water rights or cash-in-lieu, waivers of protest against creation of SID's, and water and sewer hookup fees, to said contiguous tracts as described is the subject of a written agreement between the City and the Landowner; and WHEREAS, the Bozeman City Commission hereby finds that the annexation of this contiguous tract is in the best interests of the City of Bozeman and the inhabitants/owners thereof. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: Section 1 That it is hereby declared that, pursuant to Title 7, Chapter 2, Part 46, Mont. Codes Ann., the following-described property, which is contiguous to the municipal boundaries of the City of Bozeman, be annexed to the City of Bozeman and that the boundaries of said City shall be extended so as to embrace and include such approximately 1.17 acres, to wit: Legal Description A Tract of Land described as Tract 1 of Certificate of Survey 3052, located in the Northeast One Quarter of Section 24, Township 2 South, Range 5 East and a City of Bozeman ROW tract described in Fm174Pg2512 and located within the Northwest One Quarter of Section 19, Township 2 South, Range 6 East, all which are within the Principal Meridian Montana, Gallatin County, Montana and more particularly described as follows: Beginning at a point (POB), that is a 2" Brass Cap in a Metal Monument Box, and which is the Northeast Corner of Section 24, Township 2 South, Range 5 East, Principal Meridian Montana, Gallatin County, Montana; • thence S 89° 53' 31" E, along the line common to sections 18 and 19 of said T2S, R6E, a distance of 45.00 feet to a point; • thence leaving said section line and running S 00° 06' 29" W along the eastern boundary of said Fm174Pg5212 deed parcel, a distance of 165.05 feet to a point; • thence N 89° 53' 31" W, a distance of 45.00 feet to a point on the range line and the line common to sections 19 and 24; 84 Version April 2020 Page 3 of 3 • thence S 88° 58' 09" W, a distance of 263.98 feet to a point; • thence N 00° 06' 11" E, a distance of 164.97 feet to a point on the line common to sections 13 and 24 of said T2S, R5E; • thence N 88° 57' 03" E, a distance of 264.00 feet along said line common to sections 13 and 24 to the POB. Said Tract being 50,970 square feet or 1.17 acres more or less, along with and subject to all easements of record. Section 2 The effective date of this annexation is December 5, 2023. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the ______ day of ______________, 2023. ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 85 SOUTH 3rd ANNEXATION Agreement 1 Inter-office Original to: City of Bozeman City Clerk PO Box 1230 Bozeman, MT 549771-1230 SOUTH 3rd ANNEXATION AGREEMENT THIS AGREEMENT made and entered into this ______ day of __________________, 2023, by and between the CITY OF BOZEMAN, a self-governing municipal corporation organized and existing under its Charter and the laws of the State of Montana with offices at 121 N. Rouse Avenue, Bozeman, Montana 59771-0640, hereinafter referred to as "City", and CBJ, LLC, PO Box 327, Bozeman, MT 59771, hereinafter referred to as "Landowner". WITNESSETH: WHEREAS, Landowner is owner in fee of a tract of certain real property, hereinafter referred to as the SOUTH 3rd ANNEXATION situated in Gallatin County, Montana, and more particularly described as follows: An area of land comprised described as follows: A Tract of Land described as Tract 1 of Certificate of Survey 3052, located in the Northeast One Quarter of Section 24, Township 2 South, Range 5 East and a City of Bozeman ROW tract described in Fm174 Pg2512 and located within the Northwest One Quarter of Section 19, Township 2 South, Range 6 East, all which are within the Principal Meridian Montana, Gallatin County, Montana and more particularly described as follows: 86 SOUTH 3rd ANNEXATION Agreement 2 Beginning at a point (POB), that is a 2" Brass Cap in a Metal Monument Box, and which is the Northeast Corner of Section 24, Township 2 South, Range 5 East, Principal Meridian Montana, Gallatin County, Montana; thence S 89° 53' 31" E, along the line common to sections 18 and 19 of said T2S, R6E, a distance of 45.00 feet to a point; thence leaving said section line and running S 00° 06' 29" W along the eastern boundary of said Fm174Pg5212 deed parcel, a distance of 165.05 feet to a point; thence N 89° 53' 31" W, a distance of 45.00 feet to a point on the range line and the line common to sections 19 and 24; thence S 88° 58' 09" W, a distance of 263.98 feet to a point; thence N 00° 06' 11" E, a distance of 164.97 feet to a point on the line common to sections 13 and 24 of said T2S, R5E; thence N 88° 57' 03" E, a distance of 264.00 feet along said line common to sections 13 and 24 to the POB. Said Tract being 50,970 square feet or 1.17 acres more or less, along with and subject to all easements of record. All as depicted on the SOUTH 3rd ANNEXATION Map. WHEREAS, the Landowner petitioned the City for annexation to the City of said tract of land; and WHEREAS, the SOUTH 3rd ANNEXATION is not within the corporate limits of the City or other municipality and may therefore be annexed to the City in accordance with the provisions of this Agreement and Title 7, Chapter 2, Part 46, Mont. Code Ann.; and WHEREAS, all parties recognize the annexation of the SOUTH 3rd ANNEXATION pursuant to Section 7-2-4601, et seq., Mont. Code Ann. will allow the SOUTH 3rd ANNEXATION to connect to and utilize City services, including municipal water and sewer service, parks and recreation, fire and police services, and the City’s transportation system; and WHEREAS, Section 7-2-4610, Mont. Code Ann. provides that a municipality and landowner can agree to the provisions of services to the area to be annexed; and 87 SOUTH 3rd ANNEXATION Agreement 3 WHEREAS, the parties recognize additional development on the SOUTH 3rd ANNEXATION will impact area parks, recreation, transportation, police, and fire services, and that future improvements may require additional public infrastructure street improvements including transportation for traffic circulation and the provisions of parks, recreation, police, and fire services; and WHEREAS, the Landowner finds this Agreement will provide for the most satisfactory and dependable water supply and sewer supply or service, and provide transportation, parks, recreation, police and fire service for development of the SOUTH 3rd ANNEXATION; and WHEREAS, the parties have determined that it is in the best interests of the City and Landowner, and in furtherance of the public health, safety and welfare of the community to enter into and implement this Agreement. WITNES S ETH : IN CONSIDERATION of the mutual covenants and agreements herein contained, the parties hereto agree as follows: 1. Recitals The above recitals are true and correct. 2. Annexation The Landowner filed an application for annexation of the SOUTH 3rd ANNEXATION with the City on April 7, 2021. By execution of this Agreement, the City manifests its intent to annex the SOUTH 3rd ANNEXATION tract pursuant to the terms and conditions of this Agreement. Subject to the provisions of Title 7, Chapter 2, Part 46, Mont. Code Ann. the City shall, upon execution of this Agreement, adopt a Resolution of Annexation of the SOUTH 3rd ANNEXATION. Further, upon the execution of this Agreement, the Landowner shall do all things required by this Agreement and all things 88 SOUTH 3rd ANNEXATION Agreement 4 necessary and proper to aid and assist the City in carrying out the terms, conditions and provisions of this Agreement and to effect the annexation of the SOUTH 3rd ANNEXATION. 3. Services Provided The City will, upon annexation, make available to the SOUTH 3rd ANNEXATION existing City services only to the extent currently available, or as provided in this Agreement. 4. Municipal Water Service Defined The term "municipal water service" as is used in this agreement shall be the service which is supplied by the City in accordance with Chapter 40, Article 2, Bozeman Municipal Code, as amended, as well as any other terms and conditions which apply to the City's provision of municipal water service but does not include the extension of lines or construction of necessary improvements at any cost to the City for delivery of water to and within the SOUTH 3rd ANNEXATION. Nothing in this Agreement shall obligate the City to pay for right-of-way acquisition, engineering, construction, and other costs for the delivery of water to or within the SOUTH 3rd ANNEXATION to include, but not limited to, any impact fees, hook-up, connection, or development charges which have been or may be established by the City. 5. Municipal Sewer Service Defined The term "municipal sewer service" as is used in this Agreement shall be the service which is supplied by the City in accordance with Chapter 40, Article 3, Bozeman Municipal Code, as amended, as well as any other terms and conditions which apply to the City's provision of this service but does not include the extension of lines or construction of necessary improvements at any cost to the City for collection of sewage at and within the SOUTH 3rd ANNEXATION. Nothing in this Agreement shall obligate the City to pay for right-of-way acquisition, engineering, construction, and other costs for the 89 SOUTH 3rd ANNEXATION Agreement 5 collection of sewage services to or within the SOUTH 3rd ANNEXATION to include, but not limited to, any impact fees, hookup, connection, or development charges which may be established by the City. 6. Water and Sewer Connections Landowner understands and agrees that the existing residence on the property must be connected to City water and sewer utilities. Water and sewer services must be constructed in accordance with design and specifications approved by the City prior to the installation of the water and sewer lines. Landowner must contact the City Water and Sewer Superintendent to obtain details of construction requirements. Landowner must notify the City Water and Sewer Superintendent a minimum of 48 hours prior to construction of the services and disconnection of the well and septic system abandonment. Landowner further understands and agrees that prior to connection to the City water and sewer system, the existing on-site sewage treatment system must be properly abandoned and certification provided to the City Water and Sewer Superintendent that the abandonment occurred. The applicant must report the abandonment to the Gallatin City County Health Department. In addition to abandonment of the septic tank and leach field, the applicant must demonstrate that the sanitary sewer service to the septic tank has been completely disconnected from the old septic system prior to connection to the City sanitary sewer system. Any wells presently used for domestic purposes may be retained for irrigation only, with no physical connection to domestic water piping. Certification that there is no physical connection between an on-site well and the domestic water piping must be provided. The City Water and Sewer Superintendent may perform an inspection of the property and certify that the disconnection of the well and septic system abandonment are properly completed. Landowner understands and agrees that if Landowner fails to properly abandon the existing system and/or fails to disconnect the existing well from the domestic water piping as required herein the City may upon ten day's written notice to the Landowner 90 SOUTH 3rd ANNEXATION Agreement 6 terminate water and/or sewer services to the property. Costs of all disconnects and/or subsequent reconnects shall be borne by Landowner. 7. Water Rights The Landowner specifically recognizes and agrees that provisions for water rights or cash in-lieu of water rights shall be provided upon further development or subdivision of the property in accordance with Section 38.410.130, Bozeman Municipal Code and as may be amended. The amount of water rights or cash-in-lieu thereof due at the time of further development or subdivision of the property will be calculated based on the annual demand for volume of water the development will require multiplied by the most current annual unit price in effect on the date the water rights are transferred or payment-in-lieu of water rights is to be made to the City. As such, the Landowner acknowledges that the rates for cash in-lieu of water rights may increase over time as established by Resolution of the City Commission. As such, the Landowner acknowledges that the rates for cash in-lieu of water rights may increase over time as established by Resolution of the City Commission. Domestic water demand from the single residential house falls below the City threshold (0.25AF). Therefore, no cash-in-lieu of water is required. 8. Comprehensive Water and Water Design Report Prior to future development of the property the City may require the Landowner to have prepared by a Professional Engineer, at Landowner’s sole expense, a comprehensive design report evaluating existing capacity of sewer and water utilities in the area. The report must include hydraulic evaluations of each utility for both existing and post-development demands, and the report findings must demonstrate adequate capacity to serve the full development of the land. If adequate infrastructure capacity is not available for the proposed development, the report must identify necessary water or wastewater system improvements necessary for the proposed development. If improvements to this water or wastewater system are necessary, the Landowner agrees prior to development of the SOUTH 3rd ANNEXATION 91 SOUTH 3rd ANNEXATION Agreement 7 to complete, at Landowner’s expense, the necessary system improvements to serve the proposed development. 9. Future Development Limitations The Landowner shall be responsible for installing all facilities required to provide full municipal services to the property in accordance with the City’s Infrastructure Master Plans and all City regulations, policies and guidelines that may be in effect at the time of any future development. Thus, Landowner understands and agrees Landowner has no right, either granted or implied, for it to further develop any of the SOUTH 3rd ANNEXATION until it is verified by the City that the necessary municipal services, including but not limited to police and fire protection, parks and recreation, transportation, and sewer and water capacity, are available to all or a portion of the SOUTH 3rd ANNEXATION. Notice is thus provided to the Landowner that prior to additional development of the property, the Landowner will be solely responsible for installing, at Landowner’s sole expense, any facilities or infrastructure required to provide full municipal services to the SOUTH 3rd ANNEXATION in accordance with the City’s infrastructure plans, adopted Growth Policies/Community Plans, and all other city regulations, policies and guidelines that may be in effect at the time of development. 10. Stormwater Master Plan Landowner understands and agrees a Stormwater Master Plan for the SOUTH 3rd ANNEXATION for a system designed to remove solids, oils, grease, and other pollutants from the runoff from public streets and other impermeable surfaces may be required to be provided to and approved by the City Engineer at the time of any future development. The plan must demonstrate that adequate treatment of runoff from public streets, other impermeable surfaces, and all future lots will be achieved by providing spot elevations, flow direction arrows, detention and/or retention basin details (including basin sizing calculations and basin typical sections), outlet structure details, and culvert capacity 92 SOUTH 3rd ANNEXATION Agreement 8 calculations. The plan must also locate and provide easements for adequate drainage ways within the SOUTH 3rd ANNEXATION to transport treated runoff to the stormwater receiving channel. The plan shall include site grading and elevation information, typical stormwater detention/retention basin and discharge structure details, basin sizing calculations, and stormwater maintenance plan. Landowner recognizes the City may require such Stormwater Master Plan to be implemented in all or part as a condition of approval of development of the SOUTH 3rd ANNEXATION. 11. Waiver of Right-to-Protest Special Districts A. Landowner shall execute a Waiver of Right-to-Protest Creation of Special Improvement Districts or Special Districts for street and transportation improvements including design and engineering, paving and subsurface improvements, curb and gutter, sidewalk, stormwater drainage facilities for a) South 3rd Avenue from West Kagy Boulevard and West Graf Street. The Landowner agrees such SID or special districts will provide a mechanism for the fair and equitable assessment of construction and maintenance costs for such improvements. The waiver is attached hereto as Exhibit “A” and is hereby incorporated in and made a part of this Agreement. B. Landowner shall execute a Waiver of Right-to-Protest Creation of Special Improvement Districts or Special Districts for Intersection improvements including lighting, signalization / channelization, paving, curb/gutter, sidewalk, and storm drainage for a) South 3rd Ave and West Kagy Blvd, and b) South 3rd Ave and West Graf Street. The Landowner agrees such SID or special districts will provide a mechanism for the fair and equitable assessment of construction and maintenance costs for such improvements. The waiver is attached hereto as Exhibit “B” and is hereby incorporated in and made a part of this Agreement. C. Landowner agrees that in the event an SID is not utilized for the completion of these improvements as described in subsections A and B above, the Landowner shall participate in an 93 SOUTH 3rd ANNEXATION Agreement 9 alternative financing method for the completion of said improvements on a fair share, proportionate basis as determined by the City on the basis of the square footage of property, taxable valuation of the property, traffic contribution from the development or a combination thereof. 12. Public Street and Utility Easements The Landowner understands and agrees that a public street and utility easement must be provided at the time Landowner returns the signed annexation agreement for (45) feet from the centerline of the existing ROW for South 3rd Avenue along South 3rd Avenue property frontage as depicted in the Bozeman Transportation Master Plan prior to the adoption of Resolution of Annexation. The Right-of- Way must be executed using the City’s standard language. A ten foot private utility easement must be provided along the property’s South 3rd Avenue frontage prior to the adoption of Resolution of Annexation. The executed easement must be delivered to the City Engineering Department. The easement must be executed on the City’s standard easement form. The Landowner, at its sole expense, has created such easements in a location and form agreeable to the City and the easements will be filed at the Gallatin County Clerk and Recorder’s Office. The Landowner further understands and agrees that additional public street and utility easements may be required for delivery of municipal services with future development and such easement shall be provided at the Landowner’s sole expense. 13. Street Improvements The Landowner understands and agrees that at the time of future development the portion of Bridger Drive and its related transportation infrastructure fronting the SOUTH 3rd ANNEXATION must be improved to a City standard. 94 SOUTH 3rd ANNEXATION Agreement 10 14. Impact Fees Landowner acknowledges that annexation and development of their property will impact the City’s existing street, water and sewer infrastructure, and the City’s fire service. As approved by the City, the Landowner and its successors must pay: A) Fire impact fees equal to the amount per Chpt. 2, Art. 6. Div. 9 BMC, or as amended, at time of issuance of a building permit. B) Transportation impact fees equal to the amount per Chpt. 2, Art. 6. Div. 9 BMC, or as amended, at time of issuance of a building permit. C) Water impact fees as required by Chpt. 2, Art. 6. Div. 9 BMC, or as amended, at the time of connection to city water services. D) Sewer impact fees as required by Chpt. 2, Art. 6. Div. 9 BMC, or as amended, at the time of connection to city sewer services. The amount of impact fee the Landowner or its successors pay for connection to the city’s water and sewer services, if any, shall be calculated based on the provisions of the Bozeman Municipal Code, as amended, in effect at the time of application for a permit to connect. The amount of street or fire impact fees to be paid, if any, shall be calculated based on the provisions of the Bozeman Municipal Code, as amended, in effect at the time an application for building permit is submitted. Landowner further understands and agrees that any improvements, either on-site or off-site, necessary to provide connection of the SOUTH 3rd ANNEXATION municipal services and which are wholly attributable to the property as determined exclusively by the city are considered “project related improvements” as defined in Chapter 2, Article 6, Division 9, Bozeman Municipal Code, as amended, and as such, are not eligible for impact fee credits. If Landowner defaults on this condition at the time such is to be performed, and should default not be remedied or corrected within thirty (30) days after written notice by City to the Landowner and Landowner/Developer of such default, City may at its option: A) Declare the amounts owing for impact fees immediately due and payable and City shall have the right and privilege to take legal action against Landowners for the collection of such sum, including the entry of any judgment. In addition, the City 95 SOUTH 3rd ANNEXATION Agreement 11 may, at its option, enforce payment of such amount by levying an assessment on the property. B) Elect any other remedy available to City under the laws of the State of Montana. 15. Charges and Assessments Landowner understands and agrees that after this Agreement is recorded the SOUTH 3rd ANNEXATION will be subject to City charges and assessments for arterial and collector streets, street maintenance, and tree maintenance on the same basis as all other properties in the City. 16. Additional Terms The parties recognize these documents must be filed and of record with the Gallatin County Clerk and Recorder prior to the sale of any land within the SOUTH 3rd ANNEXATION. The parties further agree that the City may file these documents at any time. 17. Governing Law and Venue This agreement shall be construed under and governed by the laws of the state of Montana. In the event of litigation, venue is in the Eighteenth Judicial District Court, in and for County of Gallatin, State of Montana. 18. Attorney’s Fees In the event it becomes necessary for either party to this Agreement to retain an attorney to enforce any of the terms or conditions of this Agreement, then the prevailing party shall be entitled to reasonable attorney’s fees and costs, to include the salary and costs of in-house counsel including City Attorney. 19. Waiver No waiver by either party of any breach of any term, covenant or agreement shall be deemed a waiver of the same or any subsequent breach of this same or any other term, covenant or agreement. No covenant, term or agreement shall be deemed waived by either party unless waived in writing. 96 SOUTH 3rd ANNEXATION Agreement 12 20. Invalid Provision The invalidity or unenforceability of any provision of this agreement shall not affect the other provisions hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provision were omitted. 21. Modifications or Alterations No modifications or amendment of this Agreement shall be valid unless evidenced by a writing signed by the parties hereto. 22. No Assignment It is expressly agreed that the Landowner and/or Landowner/Developer shall not assign this Agreement in whole or in part without prior written consent of the City. 23. Successors This Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties hereto and their respective heirs, successors and assigns and specifically to any subsequent purchaser of the annexed property. 24. Covenants to Run with the Land The parties intend that the terms of this Agreement shall benefit the SOUTH 3rd ANNEXATION and shall be covenants running with the land and shall not expire at their deaths or upon transfer of ownership of the property. The undersigned Landowner affirms that they have authority to enter into this Agreement and to bind themselves to this Agreement. 97 SOUTH 3rd ANNEXATION Agreement 13 IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed the day and year first above written. DATED this _____ day of __________________, 2023. LANDOWNER _________________________________________ CBJ, LLC By: Brett Boeckel Title: ________________________ STATE OF ____________ ) :ss COUNTY OF __________ ) On this ________ day of ____________________, 2023, before me, the undersigned, a Notary Public for the State of , personally appeared Brett Boeckel, known to me to be the _________________ of __CBJ, LLC__ that executed the within instrument, and acknowledged to me that they executed the same for and on behalf of landowner. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. (SEAL) _________________________________________ (Printed Name Here) Notary Public for the State of _________ Residing at _______________________ My Commission Expires:____________ (Use 4 digits for expiration year) 98 SOUTH 3rd ANNEXATION Agreement 14 IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed the day and year first above written. DATED this _____ day of __________________, 2023. LANDOWNER _________________________________________ CBJ, LLC By: Cole Robertson Title: ________________________ STATE OF ____________ ) :ss COUNTY OF __________ ) On this ________ day of ____________________, 2023, before me, the undersigned, a Notary Public for the State of , personally appeared Cole Robertson known to me to be the _________________ of __CBJ, LLC__ that executed the within instrument, and acknowledged to me that they executed the same for and on behalf of landowner. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. (SEAL) _________________________________________ (Printed Name Here) Notary Public for the State of _________ Residing at _______________________ My Commission Expires:____________ (Use 4 digits for expiration year) 99 SOUTH 3rd ANNEXATION Agreement 15 IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed the day and year first above written. DATED this _____ day of __________________, 2023. LANDOWNER _________________________________________ CBJ, LLC By: Julien Morice Title: ________________________ STATE OF ____________ ) :ss COUNTY OF __________ ) On this ________ day of ____________________, 2023, before me, the undersigned, a Notary Public for the State of , personally appeared Julien Morice known to me to be the _________________ of __CBJ, LLC__ that executed the within instrument, and acknowledged to me that they executed the same for and on behalf of landowner. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. (SEAL) _________________________________________ (Printed Name Here) Notary Public for the State of _________ Residing at _______________________ My Commission Expires:____________ (Use 4 digits for expiration year) 100 SOUTH 3rd ANNEXATION Agreement 16 CITY OF BOZEMAN ____________________________________ By: Jeff Mihelich, City Manager ATTEST: ________________________________ Mike Maas, City Clerk STATE OF MONTANA ) :ss COUNTY OF GALLATIN ) On this _____ day of , 2023, before me, a Notary Public for the state of Montana, personally appeared Jeff Mihelich and Mike Maas, known to me to the persons described in and who executed the foregoing instrument as Interim City Manager and City Clerk respectively, of the City of Bozeman, whose names are subscribed to the within instrument and acknowledged to me that they executed the same for and on behalf of said City. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. (SEAL) _________________________________________ (Printed Name Here) Notary Public for the State of Montana Residing at _______________________ My Commission Expires:____________ (Use 4 digits for expiration year) 101 SOUTH 3rd ANNEXATION Agreement 17 EXHIBIT “A” WAIVER OF RIGHT TO PROTEST CREATION OF SPECIAL IMPROVEMENT DISTRICTS SOUTH 3rd AVENUE ANNEXATION The undersigned owner of the real property situated in the County of Gallatin, State of Montana, and more particularly described as follows: A Tract of Land described as Tract 1 of Certificate of Survey 3052, located in the Northeast One Quarter of Section 24, Township 2 South, Range 5 East and a City of Bozeman ROW tract described in Fm174Pg2512 and located within the Northwest One Quarter of Section 19, Township 2 South, Range 6 East, all which are within the Principal Meridian Montana, Gallatin County, Montana and more particularly described as follows: Beginning at a point (POB), that is a 2" Brass Cap in a Metal Monument Box, and which is the Northeast Corner of Section 24, Township 2 South, Range 5 East, Principal Meridian Montana, Gallatin County, Montana; thence S 89° 53' 31" E, along the line common to sections 18 and 19 of said T2S, R6E, a distance of 45.00 feet to a point; thence leaving said section line and running S 00° 06' 29" W along the eastern boundary of said Fm174Pg5212 deed parcel, a distance of 165.05 feet to a point; thence N 89° 53' 31" W, a distance of 45.00 feet to a point on the range line and the line common to sections 19 and 24; thence S 88° 58' 09" W, a distance of 263.98 feet to a point; thence N 00° 06' 11" E, a distance of 164.97 feet to a point on the line common to sections 13 and 24 of said T2S, R5E; thence N 88° 57' 03" E, a distance of 264.00 feet along said line common to sections 13 and 24 to the POB. Said Tract being 50,970 square feet or 1.17 acres more or less, along with and subject to all easements of record. IN CONSIDERATION of receiving approval for annexation of the subject property from the City of Bozeman, along with accompanying rights and privileges and for other and valuable consideration, the receipt of which is hereby acknowledged, and in recognition of the transportation 102 SOUTH 3rd ANNEXATION Agreement 18 impacts to South 3rd Avenue from West Kagy Blvd and West Graf Street which will be caused by the development of the above-described property, the owner has waived and does hereby waive for itself, its successors and assigns forever the right to protest the creation of one or more special improvement districts for the design and engineering, construction and maintenance of following improvements: for street and transportation improvements including design and engineering, paving and subsurface improvements, curb and gutter, sidewalk, stormwater drainage facilities for a) South 3rd Avenue Drive from West Kagy Blvd and West Graf Street. Landowner agrees the City has the sole right to control the design and construction of such improvements and may include any of the above components and others necessary to ensure such improvements comply with all adopted City infrastructure plans and requirements. Further, the Landowner waives its right or to make any written protest against the size or area or creation of the district be assessed in response to a duly passed resolution of intention to create one or more special improvement districts which would include the above-described property. In the event a SID is not utilized for the completion of these improvements, the developer agrees to participate in an alternate financing method for the completion of said improvements on a fair share, proportionate basis as determined by the City on the basis of the square footage of property, taxable valuation of the property, traffic contribution from the development or a combination thereof. This waiver is made for the benefit of the property described herein shall be a covenant running with the land. The terms, covenants and provisions of this waiver shall extend to, and be binding upon the successors-in-interest and assigns of the Landowner. 103 SOUTH 3rd ANNEXATION Agreement 19 DATED this _____ day of __________________, 2023. LANDOWNER _________________________________________ CBJ, LLC By: Brett Boeckel Title: ________________________ STATE OF ____________ ) :ss COUNTY OF __________ ) On this ________ day of ____________________, 2023, before me, the undersigned, a Notary Public for the State of , personally appeared Brett Boeckel, known to me to be the _________________ of __CBJ, LLC__ that executed the within instrument, and acknowledged to me that they executed the same for and on behalf of landowner. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. (SEAL) _________________________________________ (Printed Name Here) Notary Public for the State of _________ Residing at _______________________ My Commission Expires:____________ (Use 4 digits for expiration year) 104 SOUTH 3rd ANNEXATION Agreement 20 DATED this _____ day of __________________, 2023. LANDOWNER _________________________________________ CBJ, LLC By: Cole Robertson Title: ________________________ STATE OF ____________ ) :ss COUNTY OF __________ ) On this ________ day of ____________________, 2023, before me, the undersigned, a Notary Public for the State of , personally appeared Cole Robertson known to me to be the _________________ of __CBJ, LLC__ that executed the within instrument, and acknowledged to me that they executed the same for and on behalf of landowner. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. (SEAL) _________________________________________ (Printed Name Here) Notary Public for the State of _________ Residing at _______________________ My Commission Expires:____________ (Use 4 digits for expiration year) 105 SOUTH 3rd ANNEXATION Agreement 21 DATED this _____ day of __________________, 2023. LANDOWNER _________________________________________ CBJ, LLC By: Julien Morice Title: ________________________ STATE OF ____________ ) :ss COUNTY OF __________ ) On this ________ day of ____________________, 2023, before me, the undersigned, a Notary Public for the State of , personally appeared Julien Morice known to me to be the _________________ of __CBJ, LLC__ that executed the within instrument, and acknowledged to me that they executed the same for and on behalf of landowner. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. (SEAL) _________________________________________ (Printed Name Here) Notary Public for the State of _________ Residing at _______________________ My Commission Expires:____________ (Use 4 digits for expiration year) 106 SOUTH 3rd ANNEXATION Agreement 22 EXHIBIT “B” WAIVER OF RIGHT TO PROTEST CREATION OF SPECIAL IMPROVEMENT DISTRICTS SOUTH 3rd ANNEXATION The undersigned owner of the real property situated in the County of Gallatin, State of Montana, and more particularly described as follows: A Tract of Land described as Tract 1 of Certificate of Survey 3052, located in the Northeast One Quarter of Section 24, Township 2 South, Range 5 East and a City of Bozeman ROW tract described in Fm174Pg2512 and located within the Northwest One Quarter of Section 19, Township 2 South, Range 6 East, all which are within the Principal Meridian Montana, Gallatin County, Montana and more particularly described as follows: Beginning at a point (POB), that is a 2" Brass Cap in a Metal Monument Box, and which is the Northeast Corner of Section 24, Township 2 South, Range 5 East, Principal Meridian Montana, Gallatin County, Montana; thence S 89° 53' 31" E, along the line common to sections 18 and 19 of said T2S, R6E, a distance of 45.00 feet to a point; thence leaving said section line and running S 00° 06' 29" W along the eastern boundary of said Fm174Pg5212 deed parcel, a distance of 165.05 feet to a point; thence N 89° 53' 31" W, a distance of 45.00 feet to a point on the range line and the line common to sections 19 and 24; thence S 88° 58' 09" W, a distance of 263.98 feet to a point; thence N 00° 06' 11" E, a distance of 164.97 feet to a point on the line common to sections 13 and 24 of said T2S, R5E; thence N 88° 57' 03" E, a distance of 264.00 feet along said line common to sections 13 and 24 to the POB. Said Tract being 50,970 square feet or 1.17 acres more or less, along with and subject to all easements of record. IN CONSIDERATION of receiving approval for annexation of the subject property from the City of Bozeman, along with accompanying rights and privileges and for other and valuable consideration, the receipt of which is hereby acknowledged, and in recognition of the intersection 107 SOUTH 3rd ANNEXATION Agreement 23 impacts to a) South 3rd Ave and West Kagy Boulevard, and b) South 3rd Ave and West Graf Street which will be caused by the development of the above-described property, the owner has waived and does hereby waive for itself, its successors and assigns forever the right to protest the creation of one or more special improvement districts for the including lighting, signalization / channelization, paving, curb/gutter, sidewalk, and storm drainage for a) South 3rd Ave and West Kagy Boulevard, and b) South 3rd Ave and West Graf. Landowner agrees the City has the sole right to control the design and construction of such improvements and may include any of the above components and others necessary to ensure such improvements comply with all adopted City infrastructure plans and requirements. Further, the Landowner waives its right or to make any written protest against the size or area or creation of the district be assessed in response to a duly passed resolution of intention to create one or more special improvement districts which would include the above-described property. In the event a SID is not utilized for the completion of these improvements, the developer agrees to participate in an alternate financing method for the completion of said improvements on a fair share, proportionate basis as determined by the City on the basis of the square footage of property, taxable valuation of the property, traffic contribution from the development or a combination thereof. This waiver is made for the benefit of the property described herein shall be a covenant running with the land. The terms, covenants and provisions of this waiver shall extend to, and be binding upon the successors-in-interest and assigns of the Landowner. 108 SOUTH 3rd ANNEXATION Agreement 24 DATED this _____ day of __________________, 2023. LANDOWNER _________________________________________ CBJ, LLC By: Brett Boeckel Title: ________________________ STATE OF ____________ ) :ss COUNTY OF __________ ) On this ________ day of ____________________, 2023, before me, the undersigned, a Notary Public for the State of , personally appeared Brett Boeckel, known to me to be the _________________ of __CBJ, LLC__ that executed the within instrument, and acknowledged to me that they executed the same for and on behalf of landowner. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. (SEAL) _________________________________________ (Printed Name Here) Notary Public for the State of _________ Residing at _______________________ My Commission Expires:____________ (Use 4 digits for expiration year) 109 SOUTH 3rd ANNEXATION Agreement 25 DATED this _____ day of __________________, 2023. LANDOWNER _________________________________________ CBJ, LLC By: Cole Robertson Title: ________________________ STATE OF ____________ ) :ss COUNTY OF __________ ) On this ________ day of ____________________, 2023, before me, the undersigned, a Notary Public for the State of , personally appeared Cole Robertson known to me to be the _________________ of __CBJ, LLC__ that executed the within instrument, and acknowledged to me that they executed the same for and on behalf of landowner. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. (SEAL) _________________________________________ (Printed Name Here) Notary Public for the State of _________ Residing at _______________________ My Commission Expires:____________ (Use 4 digits for expiration year) 110 SOUTH 3rd ANNEXATION Agreement 26 DATED this _____ day of __________________, 2023. LANDOWNER _________________________________________ CBJ, LLC By: Julien Morice Title: ________________________ STATE OF ____________ ) :ss COUNTY OF __________ ) On this ________ day of ____________________, 2023, before me, the undersigned, a Notary Public for the State of , personally appeared Julien Morice known to me to be the _________________ of __CBJ, LLC__ that executed the within instrument, and acknowledged to me that they executed the same for and on behalf of landowner. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. (SEAL) _________________________________________ (Printed Name Here) Notary Public for the State of _________ Residing at _______________________ My Commission Expires:____________ (Use 4 digits for expiration year) 111 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 5426, Adoption of Annexation for the 6590 Davis Lane Annexation, Annexing 8.55 acres and Adjacent Rights-of-Way, Application 21443 MEETING DATE:December 12, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Adopt Resolution 5426 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 21443 on June 28, 2022 to annex 8.55 acres and establish an initial zoning designation of B-2M (Community Business-Mixed) subject to terms of annexation and contingencies for zoning. Final documents and easements were received by the Applicant on July 19, 2023. A signed annexation agreement has been received. The property is bordered by Davis Lane to the west (a Bozeman classified minor arterial street). The proposed annexation would bring in additional right of way to build out Davis Lane to the full city street classification as would be required with future development. The Future Land Use Map in the Bozeman Community Plan (BCP) 2020 designates the property as “Community Commercial Mixed Use” which includes the B-2M district as an implementing zoning district. The property currently hosts a detached single-household residential structure connected to an individual well and septic system. The property is surrounded to the north, east, and south by other similar residential properties utilizing individual well and septic systems. There is an existing 24 inch sanitary sewer pipe in Davis Lane. Water supply is installed in adjacent streets of Galloway and Kimerwicke Streets west of Davis Lane. 112 UNRESOLVED ISSUES:Non 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: 21443 DavisLaneProperty_Annexation&ZoningMap.pdf 21443 6590 Davis Lane Annex Resolution 5426.pdf 21443 6590 Davis Lane Annex Agreement 7-11-2023.pdf Report compiled on: November 20, 2023 113 114 Version April 2020 Page 1 of 3 RESOLUTION 5426 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 6590 DAVIS LANE ANNEXATION, APPLICATION 21443. WHEREAS, the City of Bozeman received a petition for annexation from S&S Davis, LLC requesting the City Commission to extend the boundaries of the City of Bozeman so as to include an area of land containing approximately 8.55 acres, addressed at 6590 Davis Lane; 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 June 7, 2022; and WHEREAS, a public meeting on said annexation petition was duly noticed and held on June 7, 2022; and WHEREAS, the City did not receive any written protest from the real property owners of the area to be annexed; and WHEREAS, on December 5, 2023, the Commission received the executed annexation agreement addressing all recommended terms of annexation; and WHEREAS, the provision of available services, including, but not limited to, streets, 115 Version April 2020 Page 2 of 3 rights-of-way, easements, water rights or cash-in-lieu, waivers of protest against creation of SID's, and water and sewer hookup fees, to said contiguous tracts as described is the subject of a written agreement between the City and the Landowner; and WHEREAS, the Bozeman City Commission hereby finds that the annexation of this contiguous tract is in the best interests of the City of Bozeman and the inhabitants/owners thereof. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: Section 1 That it is hereby declared that, pursuant to Title 7, Chapter 2, Part 46, Mont. Codes Ann., the following-described property, which is contiguous to the municipal boundaries of the City of Bozeman, be annexed to the City of Bozeman and that the boundaries of said City shall be extended so as to embrace and include such approximately 8.55 acres, to wit: Legal Description A tract of land being the Tract shown on Film 9, Page 45, located in the Southwest One-Quarter of Section 35, Township 1 South, Range 5 East, Principal Meridian Montana, City of Bozeman, Gallatin County, Montana, and being more particularly described as follows: Beginning at a point which bears North 0124’03” East a distance of 994.81 feet from the Southwest Section Corner of said Section 35, said point being the Southwest corner of said Tract; thence North 0124’03” East, along the West line of said Section 35, a distance of 636.34 feet; thence South 7209’59” East, a distance of 1046.17 feet to a point on the Southwest One-Sixteenth line of said Section 35; thence North 8906’03” West, along said One-Sixteenth line a distance of 341.62 feet; thence South 0125’16” West, along the East line of the Southwest One-Quarter of the Southwest One-Quarter of the Southwest One-Quarter a distance of 331.51 feet; thence North 8906’31” West, a distance of 661.73 feet to the point of beginning; Said tract of land being 8.55 acres, along with and subject to any existing easements. 116 Version April 2020 Page 3 of 3 All as depicted on the 6590 Davis Lane Annexation Map. Section 2 The effective date of this annexation is December 5, 2023. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the ____ th day of _____________, 2023. ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 117 6590 DAVIS LANE PROPERTIES Annexation Agreement 1 Inter-office Original to: City of Bozeman City Clerk PO Box 1230 Bozeman, MT 549771-1230 6590 DAVIS LANE PROPERTY ANNEXATION AGREEMENT THIS AGREEMENT made and entered into this ______ day of __________________, 2023, by and between the CITY OF BOZEMAN, a self-governing municipal corporation organized and existing under its Charter and the laws of the State of Montana with offices at 121 N. Rouse Avenue, Bozeman, Montana 59771-0640, hereinafter referred to as "City", and S&S Davis LLC, 640 Taylor Street, Suite 2200, Fort Worth, TX 76102 hereinafter referred to as "Landowner". The effective date of this Agreement shall be the date upon which the Bozeman City Commission adopts a resolution creating the 6590 Davis Lane Property and authorizing execution of this Agreement. WITNESSETH: WHEREAS, Landowner is owner in fee of a tract of certain real property, hereinafter referred to as the 6590 DAVIS LANE PROPERTIES ANNEXATION or “Property” situated in Gallatin County, Montana, and more particularly described as follows: An area of land comprised described as follows: Tract 1 of COS 3053, a parcel of land located in Section 35, Township One South (T1S), Range Five East (R5E) of Principal of Meridian Montana, Gallatin County, Montana, and more particularly described as follows: 118 6590 DAVIS LANE PROPERTIES Annexation Agreement 2 All as depicted on the 6590 DAVIS LANE PROPERTIES ANNEXATION Map. WHEREAS, the Landowner petitioned the City for annexation to the City of said tract of land; and WHEREAS, the 6590 DAVIS LANE PROPERTIES is not within the corporate limits of the City or other municipality and may therefore be annexed to the City in accordance with the provisions of this Agreement and Title 7, Chapter 2, Part 46, Mont. Code Ann.; and WHEREAS, all parties recognize the annexation of the 6590 DAVIS LANE PROPERTIES pursuant to Section 7-2-4601, et seq., Mont. Code Ann. will allow the 6590 DAVIS LANE PROPERTIES to connect to and utilize City services, including municipal water and sewer service, parks and recreation, fire and police services, and the City’s transportation system; and WHEREAS, Section 7-2-4610, Mont. Code Ann. provides that a municipality and landowner can agree to the provisions of services to the area to be annexed; and WHEREAS, the parties recognize additional development on the 6590 DAVIS LANE PROPERTIES will impact area parks, recreation, transportation, police, and fire services, and that future 119 6590 DAVIS LANE PROPERTIES Annexation Agreement 3 improvements may require additional public infrastructure street improvements including transportation for traffic circulation and the provisions of parks, recreation, police, and fire services; and WHEREAS, the Landowner finds this Agreement will provide for the most satisfactory and dependable water supply and sewer supply or service, and provide transportation, parks, recreation, police and fire service for development of the 6590 DAVIS LANE PROPERTIES; and WHEREAS, the parties have determined that it is in the best interests of the City and Landowner, and in furtherance of the public health, safety and welfare of the community to enter into and implement this Agreement. WITNES S ETH : IN CONSIDERATION of the mutual covenants and agreements herein contained, the parties hereto agree as follows: 1. Recitals The above recitals are true and correct. 2. Annexation The Landowner filed a complete application for annexation of the 6590 DAVIS LANE PROPERTIES with the City on March 4, 2021. By execution of this Agreement, the City manifests its intent to annex the 6590 DAVIS LANE PROPERTIES tract pursuant to the terms and conditions of this Agreement. Subject to the provisions of Title 7, Chapter 2, Part 46, Mont. Code Ann. the City shall, upon execution of this Agreement, adopt a Resolution of Annexation of the 6590 DAVIS LANE PROPERTIES. Further, upon the execution of this Agreement, the Landowner shall do all things required by this Agreement and all things necessary and proper to aid and assist the City in carrying out the terms, conditions and provisions of this Agreement and to effect the annexation of the 6590 DAVIS LANE PROPERTIES. 120 6590 DAVIS LANE PROPERTIES Annexation Agreement 4 3. Services Provided The City will, upon annexation, make available to the 6590 DAVIS LANE PROPERTIES existing City services only to the extent currently available, or as provided in this Agreement. 4. Municipal Water Service Defined The term "municipal water service" as is used in this Agreement shall be the service which is supplied by the City in accordance with Chapter 40, Article 2, Bozeman Municipal Code, as amended, as well as any other terms and conditions which apply to the City's provision of municipal water service but does not include the extension of lines or construction of necessary improvements at any cost to the City for delivery of water to and within the 6590 DAVIS LANE PROPERTIES. Nothing in this Agreement shall obligate the City to pay for right-of-way acquisition, engineering, construction, and other costs for the delivery of water to or within the 6590 DAVIS LANE PROPERTIES to include, but not limited to, any impact fees, hook-up, connection, or development charges which have been or may be established by the City. 5. Municipal Sewer Service Defined The term "municipal sewer service" as is used in this Agreement shall be the service which is supplied by the City in accordance with Chapter 40, Article 3, Bozeman Municipal Code, as amended, as well as any other terms and conditions which apply to the City's provision of this service but does not include the extension of lines or construction of necessary improvements at any cost to the City for collection of sewage at and within the 6590 DAVIS LANE PROPERTIES. Nothing in this Agreement shall obligate the City to pay for right-of-way acquisition, engineering, construction, and other costs for the collection of sewage services to or within the 6590 DAVIS LANE PROPERTIES to include, but not limited to, any impact fees, hookup, connection, or development charges which may be established by the City. 121 6590 DAVIS LANE PROPERTIES Annexation Agreement 5 6. Water and Sewer Connections Landowner understands and agrees that water and sewer services must be constructed in accordance with design and specifications approved by the City prior to the installation of the water and sewer lines. Landowner must contact the City Water and Sewer Division to obtain details of construction requirements. Landowner further understands and agrees that prior to connection to the City water and sewer system, any existing on-site sewage treatment system must be properly abandoned and certification provided to the City Water and Sewer Division that the abandonment occurred. The Landowner must report the abandonment to the Gallatin City County Health Department. In addition to abandonment of the septic tank and leach field, the applicant must demonstrate that any sanitary sewer line has been completely disconnected from any existing septic system prior to the Landowner connecting the to the City sanitary sewer system. Any wells presently used for domestic purposes may be retained for irrigation only, with no physical connection to municipal domestic water piping. Certification that there is no physical connection between any on-site well and a domestic water line coming from the City’s water supply must be provided. The City Water and Sewer Division may perform an inspection of the property and certify that the disconnection of the well and septic system abandonment are properly completed. Landowner understands and agrees that if Landowner fails to properly abandon any existing septic system and/or fails to disconnect any existing well from the domestic water piping as required herein the City may upon ten day’s written notice to the Landowner terminate water and/or sewer services to the property. Costs of all disconnects and/or subsequent reconnects shall be borne by Landowner. 7. Water Rights The Landowner specifically recognizes and agrees that provisions for water rights or cash in-lieu of water rights shall be provided upon further development or subdivision of the property in accordance with Section 38.410.130, Bozeman Municipal Code and as may be amended. The amount of water rights 122 6590 DAVIS LANE PROPERTIES Annexation Agreement 6 or cash-in-lieu thereof due at the time of further development or subdivision of the property will be calculated based on the annual demand for volume of water the development will require multiplied by the most current annual unit price in effect on the date the water rights are transferred or payment-in-lieu of water rights is to be made to the City. As such, the Landowner acknowledges that the rates for cash in-lieu of water rights may increase over time as established by Resolution of the City Commission. The Landowner must perform a water rights search to determine if any exist for this property. The Landowner must transfer any water rights that exist for this property to the City of Bozeman prior to development that the City of Bozeman determines are useful for city purposes. If insufficient water rights exist, the Landowner must pay cash in lieu of water rights, in an amount determined by the Director of Utilities, prior to development. 8. Comprehensive Water and Water Design Report Prior to future development of the property the City may require the Landowner to have prepared by a Professional Engineer, at Landowner’s sole expense, a comprehensive design report evaluating existing capacity of sewer and water utilities in the area. The report must include hydraulic evaluations of each utility for both existing and post-development demands, and the report findings must demonstrate adequate capacity to serve the full development of the land. If adequate infrastructure capacity is not available for the proposed development, the report must identify necessary water or wastewater system improvements necessary for the proposed development. If improvements to this water or wastewater system are necessary, the Landowner agrees prior to development of the 6590 DAVIS LANE PROPERTIES to complete, at Landowner’s expense, the necessary system improvements to serve the proposed development. 9. Future Development Limitations The Landowner shall be responsible for installing all facilities required to provide full municipal services to the property in accordance with the City’s Infrastructure Master Plans and all City regulations, 123 6590 DAVIS LANE PROPERTIES Annexation Agreement 7 policies and guidelines that may be in effect at the time of any future development. Thus, Landowner understands and agrees Landowner has no right, either granted or implied, for it to further develop any of the 6590 DAVIS LANE PROPERTIES until it is verified by the City that the necessary municipal services, including but not limited to police and fire protection, parks and recreation, transportation, and sewer and water capacity, are available to all or a portion of the 6590 DAVIS LANE PROPERTIES. Notice is thus provided to the Landowner that prior to additional development of the property, the Landowner will be solely responsible for installing, at Landowner’s sole expense, any facilities or infrastructure required to provide full municipal services to the 6590 DAVIS LANE PROPERTIES in accordance with the City’s infrastructure plans, adopted Growth Policies/Community Plans, and all other city regulations, policies and guidelines that may be in effect at the time of development. 10. Stormwater Master Plan Landowner understands and agrees a Stormwater Master Plan for the 6590 DAVIS LANE PROPERTIES for a system designed to remove solids, oils, grease, and other pollutants from the runoff from public streets and other impermeable surfaces may be required to be provided to and approved by the City Engineer at the time of any future development in accordance with Chapter 40, Article 3, Bozeman Municipal Code, as amended, as well as any other terms and conditions which apply to the City's provision of this service. The plan must demonstrate that adequate treatment of runoff from public streets, other impermeable surfaces, and all future lots will be achieved by providing spot elevations, flow direction arrows, detention and/or retention basin details (including basin sizing calculations and basin typical sections), outlet structure details, and culvert capacity calculations. The plan must also locate and provide easements for adequate drainage ways within the 6590 DAVIS LANE PROPERTIES to transport treated runoff to the stormwater receiving channel. The plan shall include site grading and elevation information, typical stormwater detention/retention basin and discharge structure details, basin sizing calculations, and stormwater maintenance plan. Landowner recognizes the City may require such 124 6590 DAVIS LANE PROPERTIES Annexation Agreement 8 Stormwater Master Plan to be implemented in all or part as a condition of approval of development of the 6590 DAVIS LANE PROPERTIES. 11. Waiver of Right-to-Protest Special Districts A. Landowner shall execute a Waiver of Right-to-Protest Creation of Special Improvement Districts or Special Districts for street and transportation improvements including design and engineering, paving and subsurface improvements, curb and gutter, sidewalk, stormwater drainage facilities for: a. Street improvements to North 27th Avenue (Thomas Drive) between Baxter Lane and Catamount Street including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage. b. Street improvements to Davis Lane between Baxter Lane and Cattail Street including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage. c. Street improvements to Hunters Way (Blackbird Drive) between Baxter Lane and Cattail Street including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage. d. Street improvements to Windward Way (Park Creek Avenue) between Baxter Lane and Cattail Street including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage. e. Street improvements to Equestrian Lane (Sartain Street) between Davis Lane and North 19th Avenue including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage. f. Street improvements to Rawhide Ridge between North 19th Avenue and Hunters Way including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage. g. Street improvements to Kimberwicke between Davis Lane and North 19th Avenue including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage. h. Street improvements to Cattail Street between Davis Lane and North 19th Avenue including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage. i. Street improvements to Hoover Way between Georgia Marlie Lane and the subject property including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage. j. Street improvements to Renee Way between Georgia Marlie Lane and the subject property including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage. The Landowner agrees such SID or special districts will provide a mechanism for the fair and equitable assessment of construction and maintenance costs for such improvements. The waiver is attached hereto as Exhibit “A” and is hereby incorporated in and made a part of this Agreement. 125 6590 DAVIS LANE PROPERTIES Annexation Agreement 9 B. Landowner shall execute a Waiver of Right-to-Protest Creation of Special Improvement Districts (“SID”) or Special Districts for Intersection improvements including lighting, signalization and channelization, paving, curb/gutter, sidewalk, and storm drainage for: a. Intersection improvements at Cattail Street and North 27th Avenue including lighting, signalization/channelization, paving, curb/gutter, sidewalk, and storm drainage. b. Intersection improvements at Cattail Street and Davis Lane including lighting, signalization/channelization, paving, curb/gutter, sidewalk, and storm drainage c. Intersection improvements at Cattail Street and North 19th Avenue including lighting, signalization/channelization, paving, curb/gutter, sidewalk, and storm drainage d. Intersection improvements at Baxter Lane and Davis Lane including lighting, signalization/channelization, paving, curb/gutter, sidewalk, and storm drainage e. Intersection improvements at North 27th Avenue and Baxter Lane including lighting, signalization/channelization, paving, curb/gutter, sidewalk, and storm drainage. The Landowner agrees such SID or special districts will provide a mechanism for the fair and equitable assessment of construction and maintenance costs for such improvements. The waiver is attached hereto as Exhibit “B” and is hereby incorporated in and made a part of this Agreement. C. Landowner agrees that in the event an SID is not utilized for the completion of these improvements as described in subsections A and B above, the Landowner shall participate in an alternative financing method for the completion of said improvements on a fair share, proportionate basis as determined by the City on the basis of the square footage of property, taxable valuation of the property, traffic contribution from the development or a combination thereof. 12. Public Street and Utility Easements The Landowner understands and agrees that a public street and utility easement must be provided at the time Landowner returns the signed annexation agreement for the portion of Davis Lane that is adjacent to its Property, which is classified as a Minor Arterial in the Bozeman Transportation Master Plan (TMP), which has a minimum right-of-way (“ROW”) width of one hundred (100) feet. 126 6590 DAVIS LANE PROPERTIES Annexation Agreement 10 The Landowner must provide its respective Davis Lane ROW section from the centerline of the existing ROW or the entire section (if the street section resides within the proposed annexation area) as a public street and utility easement where Davis Lane is adjacent to the Property. The Landowner, at its sole expense, has created such easements in a location and form agreeable to the City and the easements will be filed at the Gallatin County Clerk and Recorder’s Office. The Landowner further understands and agrees that additional public street and utility easements may be required for delivery of municipal services with future development, and in such event, the easement shall be provided at the Landowner’s sole expense. 13. Street Improvements The Landowner understands and agrees that at the time of future development the portion of Davis Lane and its related transportation infrastructure fronting the 6590 DAVIS LANE PROPERTIES must be improved to a City standard. The City may allow phasing of street improvements coordinated with development areas. 14. Impact Fees Landowner acknowledges that annexation and development of their property will impact the City’s existing street, water and sewer infrastructure, and the City’s fire service. As approved by the City, the Landowner and its successors must pay: A) Fire impact fees equal to the amount per Chpt. 2, Art. 6. Div. 9 BMC, or as amended, at time of issuance of a building permit. B) Transportation impact fees equal to the amount per Chpt. 2, Art. 6. Div. 9 BMC, or as amended, at time of issuance of a building permit. C) Water impact fees as required by Chpt. 2, Art. 6. Div. 9 BMC, or as amended, at the time of connection to city water services. D) Sewer impact fees as required by Chpt. 2, Art. 6. Div. 9 BMC, or as amended, at the time of connection to city sewer services. The amount of impact fee the Landowner or its successors pay for connection to the city’s water and sewer services, if any, shall be calculated based on the provisions of the Bozeman Municipal Code, 127 6590 DAVIS LANE PROPERTIES Annexation Agreement 11 as amended, in effect at the time of application for a permit to connect. The amount of street or fire impact fees to be paid, if any, shall be calculated based on the provisions of the Bozeman Municipal Code, as amended, in effect at the time an application for building permit is submitted. Nothing in this Agreement shall be construed to abridge Landowner’s rights, under Chapter 2, Article 6, Division 9 of the Bozeman Municipal Code, to apply for, claim or assert credits, exemptions or refunds from the imposition of impact fees. Landowner further understands and agrees that any improvements, either on-site or off-site, necessary to provide connection of the 6590 DAVIS LANE PROPERTIES to municipal services and which are wholly attributable to the Property as determined exclusively by the city are considered “project related improvements” as defined in Chapter 2, Article 6, Division 9, Bozeman Municipal Code, as amended, and as such, are not eligible for impact fee credits. If Landowner defaults on this condition at the time such is to be performed, and should default not be remedied or corrected within thirty (30) days after written notice by City to the Landowner and Landowner/Developer of such default, City may at its option: A) Declare the amounts owing for impact fees immediately due and payable and City shall have the right and privilege to take legal action against Landowners for the collection of such sum, including the entry of any judgment. In addition, the City may, at its option, enforce payment of such amount by levying an assessment on the property. B) Elect any other remedy available to City under the laws of the State of Montana. 15. Charges and Assessments Landowner understands and agrees that after this Agreement is recorded the 6590 DAVIS LANE PROPERTIES will be subject to City charges and assessments for arterial and collector streets, street maintenance, and tree maintenance on the same basis as all other properties in the City. 128 6590 DAVIS LANE PROPERTIES Annexation Agreement 12 16. Additional Terms The parties recognize these documents must be filed and of record with the Gallatin County Clerk and Recorder prior to the sale of any land within the 6590 DAVIS LANE PROPERTIES. The parties further agree that the City may file these documents at any time. 17. Governing Law and Venue This agreement shall be construed under and governed by the laws of the state of Montana. In the event of litigation, venue is in the Eighteenth Judicial District Court, in and for County of Gallatin, State of Montana. 18. Attorney’s Fees In the event it becomes necessary for either party to this Agreement to retain an attorney to enforce any of the terms or conditions of this Agreement, then the prevailing party shall be entitled to reasonable attorney’s fees and costs, to include the salary and costs of in-house counsel including City Attorney. 19. Waiver No waiver by either party of any breach of any term, covenant or agreement shall be deemed a waiver of the same or any subsequent breach of this same or any other term, covenant or agreement. No covenant, term or agreement shall be deemed waived by either party unless waived in writing. 20. Invalid Provision The invalidity or unenforceability of any provision of this agreement shall not affect the other provisions hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provision were omitted. 21. Modifications or Alterations No modifications or amendment of this Agreement shall be valid unless evidenced by a writing signed by the parties hereto. 129 6590 DAVIS LANE PROPERTIES Annexation Agreement 13 22. No Assignment It is expressly agreed that the Landowner and/or Landowner/Developer shall not assign this Agreement in whole or in part without prior written consent of the City. 23. Successors This Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties hereto and their respective heirs, successors and assigns and specifically to any subsequent purchaser of the annexed property. 24. Covenants to Run with the Land The parties intend that the terms of this Agreement shall benefit the 6590 DAVIS LANE PROPERTIES and shall be covenants running with the land and shall not expire at their deaths or upon transfer of ownership of the property. The undersigned Landowner affirms that they have authority to enter into this Agreement and to bind themselves to this Agreement. 130 6590 DAVIS LANE PROPERTIES Annexation Agreement 14 IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed the day and year first above written. DATED this _____ day of __________________, 2023. LANDOWNER _________________________________________ S&S Davis, LLC By: Jennifer Salazar Title: Vice President STATE OF MONTANA ) :ss COUNTY OF GALLATIN ) On this ________ day of ____________________, 2023, before me, the undersigned, a Notary Public for the State of Montana, personally appeared Jennifer Salazar, known to me to be the Vice President of S&S Davis, LLC and the Landowner that executed the within instrument, and acknowledged to me that they executed the same for and on behalf of landowner. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. (SEAL) _________________________________________ (Printed Name Here) Notary Public for the State of Montana Residing at _______________________ My Commission Expires:____________ (Use 4 digits for expiration year) 131 6590 DAVIS LANE PROPERTIES Annexation Agreement 15 CITY OF BOZEMAN ____________________________________ By: Jeff Mihelich, City Manager ATTEST: ________________________________ Mike Maas, City Clerk STATE OF MONTANA ) :ss COUNTY OF GALLATIN ) On this _____ day of , 2023, before me, a Notary Public for the state of Montana, personally appeared Jeff Mihelich and Mike Maas, known to me to the persons described in and who executed the foregoing instrument as Interim City Manager and City Clerk respectively, of the City of Bozeman, whose names are subscribed to the within instrument and acknowledged to me that they executed the same for and on behalf of said City. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. (SEAL) _________________________________________ (Printed Name Here) Notary Public for the State of Montana Residing at _______________________ My Commission Expires:____________ (Use 4 digits for expiration year) 132 6590 DAVIS LANE PROPERTIES Annexation Agreement 16 EXHIBIT “A” WAIVER OF RIGHT TO PROTEST CREATION OF SPECIAL IMPROVEMENT DISTRICTS 6590 DAVIS LANE PROPERTIES ANNEXATION The undersigned owner (“Landowner”) of the real property situated in the County of Gallatin, State of Montana, and more particularly described as follows: Tract 1 of COS 3053, a parcel of land located in Section 35, Township One South (T1S), Range Five East (R5E) of Principal of Meridian Montana, Gallatin County, Montana, and more particularly described as follows: All as depicted on the 6590 DAVIS LANE PROPERTIES Annexation Map. IN CONSIDERATION of receiving approval for annexation of the Property from the City of Bozeman, along with accompanying rights and privileges and for other and valuable consideration, the receipt of which is hereby acknowledged, and in recognition of the transportation impacts to: a. Street improvements to North 27th Avenue (Thomas Drive) between Baxter Lane and Catamount Street including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage. b. Street improvements to Davis Lane between Baxter Lane and Cattail Street including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage. c. Street improvements to Hunters Way (Blackbird Drive) between Baxter Lane and 133 6590 DAVIS LANE PROPERTIES Annexation Agreement 17 Cattail Street including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage. d. Street improvements to Windward Way (Park Creek Avenue) between Baxter Lane and Cattail Street including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage. e. Street improvements to Equestrian Lane (Sartain Street) between Davis Lane and North 19th Avenue including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage. f. Street improvements to Rawhide Ridge between North 19th Avenue and Hunters Way including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage. g. Street improvements to Kimberwicke between Davis Lane and North 19th Avenue including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage. h. Street improvements to Cattail Street between Davis Lane and North 19th Avenue including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage. i. Street improvements to Hoover Way between Georgia Marlie Lane and the subject property including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage. j. Street improvements to Renee Way between Georgia Marlie Lane and the subject property including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage. which will be caused by the development of the above-described Property, the Landowner has waived and does hereby waive for itself, its successors and assigns forever the right to protest the creation of one or more special improvement districts for the design and engineering, construction and maintenance of following improvements: for street and transportation improvements including design and engineering, paving and subsurface improvements, curb and gutter, sidewalk, stormwater drainage facilities, broadband, and other dry utilities for the aforementioned street improvements. Landowner agrees the City has the sole right to control the design and construction of such improvements and may include any of the above components and others necessary to ensure such improvements comply with all adopted City infrastructure plans and requirements. Further, the Landowner waives its right or to make any written protest against the size or area or creation of the 134 6590 DAVIS LANE PROPERTIES Annexation Agreement 18 district be assessed in response to a duly passed resolution of intention to create one or more special improvement districts (“SID”) which would include the Property. In the event a SID is not utilized for the completion of these improvements, the developer agrees to participate in an alternate financing method for the completion of said improvements on a fair share, proportionate basis as determined by the City on the basis of the square footage of Property, taxable valuation of the property, traffic contribution from the development or a combination thereof. This waiver is made for the benefit of the Property and shall be a covenant running with the land. The terms, covenants and provisions of this waiver shall extend to, and be binding upon the successors-in-interest and assigns of the Landowner. 135 6590 DAVIS LANE PROPERTIES Annexation Agreement 19 DATED this _____ day of __________________, 2023. LANDOWNER _________________________________________ S&S Davis, LLC By: Jennifer. Salazar Title: Vice President STATE OF MONTANA) :ss COUNTY OF GALLATIN) On this ________ day of ____________________, 2023, before me, the undersigned, a Notary Public for the State of Montana, personally appeared Jennifer Salazar, known to me to be the Vice President of S&S Davis, LLC and the Landowner that executed the within instrument, and acknowledged to me that he executed the same for and on behalf of Landowner. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. (SEAL) _________________________________________ (Printed Name Here) Notary Public for the State of Montana Residing at _______________________ My Commission Expires:____________ (Use 4 digits for expiration year) 136 6590 DAVIS LANE PROPERTIES Annexation Agreement 20 EXHIBIT “B” WAIVER OF RIGHT TO PROTEST CREATION OF SPECIAL IMPROVEMENT DISTRICTS 6590 DAVIS LANE PROPERTIES The undersigned owner (“Landowner”) of the real property situated in the County of Gallatin, State of Montana, and more particularly described as follows: Tract 1 of COS 3053, a parcel of land located in Section 35, Township One South (T1S), Range Five East (R5E) of Principal of Meridian Montana, Gallatin County, Montana, and more particularly described as follows: All as depicted on the 6590 DAVIS LANE PROPERTIES Annexation Map. IN CONSIDERATION of receiving approval for annexation of the subject Property from the City of Bozeman, along with accompanying rights and privileges and for other and valuable consideration, the receipt of which is hereby acknowledged, and in recognition of the intersection impacts to: a. Intersection improvements at Cattail Street and North 27th Avenue including lighting, signalization/channelization, paving, curb/gutter, sidewalk, and storm drainage. b. Intersection improvements at Cattail Street and Davis Lane including lighting, signalization/channelization, paving, curb/gutter, sidewalk, and storm drainage 137 6590 DAVIS LANE PROPERTIES Annexation Agreement 21 c. Intersection improvements at Cattail Street and North 19th Avenue including lighting, signalization/channelization, paving, curb/gutter, sidewalk, and storm drainage d. Intersection improvements at Baxter Lane and Davis Lane including lighting, signalization/channelization, paving, curb/gutter, sidewalk, and storm drainage e. Intersection improvements at North 27th Avenue and Baxter Lane including lighting, signalization/channelization, paving, curb/gutter, sidewalk, and storm drainage. which will be caused by the development of the Property, the Landowner has waived and does hereby waive for itself, its successors and assigns forever the right to protest the creation of one or more special improvement districts for the including lighting, signalization / channelization, paving, curb/gutter, sidewalk, and storm drainage. Landowner agrees the City has the sole right to control the design and construction of such improvements and may include any of the above components and others necessary to ensure such improvements comply with all adopted City infrastructure plans and requirements. Further, the Landowner waives its right or to make any written protest against the size or area or creation of the district be assessed in response to a duly passed resolution of intention to create one or more special improvement districts which would include the Property. In the event a SID is not utilized for the completion of these improvements, the Landowner agrees to participate in an alternate financing method for the completion of said improvements on a fair share, proportionate basis as determined by the City on the basis of the square footage of the Property, taxable valuation of the Property, traffic contribution from the development or a combination thereof. This waiver is made for the benefit of the Property and shall be a covenant running with the land. The terms, covenants and provisions of this waiver shall extend to, and be binding upon the successors-in-interest and assigns of the Landowner. 138 6590 DAVIS LANE PROPERTIES Annexation Agreement 22 DATED this _____ day of __________________, 2023. LANDOWNER _________________________________________ S&S Davis, LLC By: Jennifer. Salazar Title: Vice President STATE OF MONTANA) :ss COUNTY OF GALLATIN) On this ________ day of ____________________, 2023, before me, the undersigned, a Notary Public for the State of Montana, personally appeared Jennifer Salazar, known to me to be the Vice President of S&S Davis, LLC and the Landowner that executed the within instrument, and acknowledged to me that he executed the same for and on behalf of Landowner. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. (SEAL) _________________________________________ (Printed Name Here) Notary Public for the State of Montana Residing at _______________________ My Commission Expires:____________ (Use 4 digits for expiration year) 139 Memorandum REPORT TO:City Commission FROM:Melissa Hodnett, Finance Director SUBJECT:Resolution 5557 to Establish Compliance with IRS Reimbursement Bond Regulations MEETING DATE:December 12, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION:I move to approve the resolution to establish compliance with IRS reimbursement bond regulations. STRATEGIC PLAN:7.5. Funding and Delivery of City Services: Use equitable and sustainable sources of funding for appropriate City services, and deliver them in a lean and efficient manner. BACKGROUND:In order for the City to reimburse itself for expenditures with debt proceeds, treasury regulations require a Commission resolution declaring the official intent to reimburse expenditures with bond proceeds. Project expenditures for the Lindley Center, Bogert Pool, and the City Hall Renovation have either begun or are anticipated to begin within the year. The proposed resolution is presented solely for purposes of establishing compliance with treasury regulations and does not bind the City to make any expenditures, incur any indebtedness, or proceed with projects. UNRESOLVED ISSUES:None ALTERNATIVES:City financial plans assume debt funding for the projects included in this resolution, and additional funding would need to be identified for these projects to move forward if the resolution is not approved. FISCAL EFFECTS:Debt service associated with any debt proceeds are consistent with long- term financial models. Attachments: 23.12.12-Reimbursement Resolution.docx Report compiled on: June 29, 2023 140 1 RESOLUTION NO. 5557 RESOLUTION RELATING TO THE FINANCING OF EXPENDITURES INCURRED FROM FACILITIES INFRASTRUCTURE PROJECTS;ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE BE IT RESOLVED by the City Commission (the “Commission”) of the City of Bozeman, Montana (the “City”), as follows: Section 1 Recitals. The United States Department of Treasury has promulgated final regulations governing the use of proceeds of tax-exempt bonds, all or a portion of which are to be used to reimburse the City for project expenditures paid by the City prior to the date of issuance of such bonds. Those regulations (Treasury Regulations, Section 1.150-2) (the “Regulations”) require that the City adopt a statement of official intent to reimburse an original expenditure not later than 60 days after payment of the original expenditure. The Regulations also generally require that bonds be issued and the reimbursement allocation be made from the proceeds of such bonds within 18 months (or three years, if the reimbursement bond issue qualifies for the “small issuer” exception from the arbitrage rebate requirement) after the later of (i) the date the expenditure is paid or (ii) the date the project is placed in service or abandoned, but (unless the issue qualifies for the “small issuer” exception from the arbitrage rebate requirement) in no event more than three years after the date the expenditure is paid. The Regulations generally permit reimbursement of capital expenditures and costs of issuance of the bonds. 1.01.The City desires to comply with requirements of the Regulations with respect to certain projects and costs hereinafter identified. 141 2 Section 2 Official Intent Declaration. 2.01.The City intends to expend funds related to design and construction of facilities infrastructure projects including a City Hall Renovation, and improvements to the Lindley Center and Bogert Pool which not included in the General Obligation Bond approved by voters. 2.02.Other than (i) expenditures to be paid or reimbursed from sources other than the Bonds (as hereinafter defined), (ii) expenditures permitted to be reimbursed under the transitional provision contained in Section 1.150-2(j)(2) of the Regulations, (iii) expenditures constituting preliminary expenditures within the meaning of Section 1.150-2(f)(2) of the Regulations, or (iv) expenditures in a “de minimus” amount (as defined in Section 1.150-2(f)(1) of the Regulations), no expenditures for the Projects have heretofore been paid by the City and no expenditures will be paid by the City until after the date of this Resolution. 2.03.The City reasonably expects to reimburse some or all of the expenditures made for costs of the Projects out of proceeds of bonds, in one or more series, in an estimated maximum aggregate principal amount of $5 million (the “Bonds”) after the date of payment of all or a portion of the costs of the Project. All reimbursed expenditures shall be capital expenditures or extraordinary working capital expenditures, a cost of issuance of the Bonds or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Regulations. 2.04.As of the date hereof, there are no City funds reserved, allocated on a long-term basis or otherwise set aside (or reasonably expected to be reserved, allocated on a long-term basis or otherwise set aside) to provide permanent financing for the portion of the Projects expected to be financed, other than pursuant to the issuance of the Bonds. The statement of intent contained in this resolution, therefore, is determined to be consistent with the City’s budgetary and financial circumstances as they exist or are reasonably foreseeable on the date hereof. 2.05.The City Finance Director shall be responsible for making the “reimbursement allocations” described in the Regulations, being generally the transfer of the appropriate amount of proceeds of the Bonds to reimburse the source of temporary financing used by the City to make prior payment of the costs of the Projects. Each allocation shall be evidenced by an entry on the official books 142 3 and records of the City maintained for the Bonds or the Projects and shall specifically identify the actual original expenditure being reimbursed. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 12th day of December, 2023. ___________________________________ CYNTHIA ANDRUS Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 143 4 CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE I, the undersigned, being the duly qualified and acting recording officer of the City of Bozeman, Montana (the “City”), hereby certify that the attached resolution is a true copy of Resolution No. 5448 entitled: “RESOLUTION RELATING TO THE FINANCING OF EXPENDITURES INCURRED FROM FACILITIES INFRASTRUCTURE IMPROVEMENT PROJECTS; ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE” (the “Resolution”), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Commission of the City at a regular meeting on December 12, 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 ____ day of ___________, 20__. (SEAL) __________________________________ MIKE MAAS City Clerk 144 Memorandum REPORT TO:City Commission FROM:Chuck Winn, Assistant City Manager SUBJECT:Resolution 5561, Authorizing Prime Change Order 21 with Langlas and Associates for Construction of the Bozeman Public Safety Center MEETING DATE:December 12, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Approve Resolution 5561, Authorizing Prime Change Order 21 with Langlas and Associates for Construction of the Bozeman Public Safety Center. STRATEGIC PLAN:3.1 Public Safety: Support high quality public safety programs, emergency preparedness, facilities, and leadership. BACKGROUND:On July 27, 2020, the City Commission approved the Guaranteed Maximum Price (GMP) Amendment for Construction of the Bozeman Public Safety Center as a part of the General Construction/Construction Manager agreement. This amendment contains provisions for altering the conditions of the agreement as authorized by the owner (City) to include additional work and credits resulting in an increase to the GMP of $8,862.18. The change order includes additional work to add modified louvers to the building air intakes to limit the infiltration of snow into the HVAC systems. The Safety Center budget contains both owner and contractor contingencies to address unforeseen conditions, scope gaps, and owner requested changes. While every reasonable attempt was made to include everything in the original project plans and specs, projects of this size and complexity require changes during construction. The changes included in this request are reasonable and are within existing contingency amounts and overall project budget as authorized by the City Commission. UNRESOLVED ISSUES:None. ALTERNATIVES:As suggested by the Commission. FISCAL EFFECTS:The net amount of Change Order 21 is within the approved contingency amounts and authorized project budget. Attachments: Resolution_5561_CO21.docx Prime Change Order 21_LL Signed (003).pdf 145 Report compiled on: April 7, 2023 146 Version April 2020 RESOLUTION 5561 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, WHEREAS,the City Commission did, on July 27, 2020, authorize award of the Guaranteed Maximum Price (GMP) Amendment for Construction of the Bozeman Public Safety Center with Langlas and Associates; and WHEREAS,Section 7-5-4308, Montana Code Annotated, provides that any such alterations for modification of the specifications and/or plans of the contract be made by resolution; and WHEREAS, it has become necessary in the prosecution of the work to make alterations and modifications to the specifications and/or plans of the contract. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, that the proposed modifications and/or alternates to the GMP Amendment for Construction of the Bozeman Public Safety Center, as contained in Change Order #21, attached hereto, be and the same are hereby approved; and the City Manager is hereby authorized and directed to execute the contract change order for and on behalf of the City; and the City Clerk is authorized and directed to attest such signature. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 5th day of December, 2023. ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: 147 Version April 2020 ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 148 Langlas & Associ.itcs GENERAL CONTRACTORS PRIME CHANGE ORDER # 21 PROJECT: Bozeman Public Safety Center 907 N. Rouse Ave. Bozeman, MT 59715 DATE: PROJECT# ORIG. CONTRACT DATE: PROJECT MANAGER: 10/17/2023 19426 08.05.19 Loren Cantrell Langlas & Associates, Inc. is directed to make the following changes in this Contract: CE No. Description Cost ADD (DEDUCT) FROM CONTRACT AMOUNT 163 Snow Infiltration Modifications $ 28,256.36 164 Digital Siqnaae System Return $ (19,614.18} TOTAL$ 8,642.18 CHANGES TO CONSTRUCTION CONTINGENCY Construction Contingency Amount Prior to this Change Order $ 0.00 - Total Construction Contingency Change with this Change Order $- Contract Time shall be Modified as Follows: Authorization for Work Described Above: Owner City of Bozeman 121 N. Rouse Ave. Bozeman, MT 59715 Name Date New Construction Contingency Amount $ 0.00 Original Contract Sum: $ 238,788.00 Net Change by Previously Authorized Change Orders: $ 37,105,026.99 ---'--"'----Contract Sum Prior to this Change Order: $ 37,343,814.99 Total this Change Order: $ 8,642.18 ----------New Contract Sum: $37,352,457.17 Contract Time is unchanged. Contractor Langlas & Associates, Inc. 1019 E. Main St., Suite 101 9715 Date Under penalty of law (including perjury and/or false/fraudulent claims against the State), the above signed on behalf of the Contractor hereby certifies, warrants, and guarantees that this claim made for Work on this Contract is a true statement of the costs, adjustments and/or time sought and is fully documented and supported under the contract between the parties. 149 Change Estimate Report Project:Bozeman Public Safety Center CE No:163 Project #19426 Revision #1 Change Source: Snow Infiltration Memo Date:9/5/2023 Description:Snow Infiltration Modifications Category Description Quantity Unit Unit Cost Total ADD $- Modifications/Additions as described in the "Snow Infiltration Memo"; Option 1 1 sum $26,940.71 $26,940.71 $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- SUBTOTAL $26,940.71 GC/CM Business Insurance 0.625%$168.38 CM Fee 3.2%$867.50 Bond 1.0%$279.77 TOTAL $28,256.36 150 Material/Labor Direct Costs Qty Material Unit Price Material Cost Labor Hrs Labor Rate/Hr Labor Cost Ductmate Drain, Access Doors, Piping to Floor Sink 2 $153 $305.99 10 $95.00 $1,900.00 $0.00 $95.00 $0.00 $0.00 $95.00 $0.00 $0.00 $95.00 $0.00 $0.00 $95.00 $0.00 $0.00 $95.00 $0.00 $0.00 $95.00 $0.00 Misc. Plumbing Materials $15.30 Demolition 1 $0.00 20 $95.00 $1,900.00 Receive, Install new hood, birdscreen, filters 1 $3,597 $3,597.34 30 $95.00 $2,850.00 $0.00 $95.00 $0.00 $0.00 $95.00 $0.00 Misc. Sheet Metal Materials $179.87 $0.00 $125.00 $0.00 $0.00 $125.00 $0.00 $0.00 $125.00 $0.00 Misc. Sheet Metal Materials $0.00 $4,098.50 $6,650.00 2 $105.00 $210.00 2 $105.00 $210.00 2 $105.00 $210.00 $630.00 SUMMARY Materials (detail above)$4,098.50 Equipment Rent 750.00 Subsistence 304.00 Lodging Costs 750.00 Mileage (Total Miles X $1.25) Subtotal $5,902.50 $885.37 Labor (detail above)$7,280.00 Subcontractors: JCI $11,220.00 - - - $12,342.00 Bond (If Applicable)$264.10 Y CGR 1% State Tax (If Applicable)$266.74 Y TOTAL AMOUNT DUE $26,940.71 Sheet Metal Shop Fabrication: Sheet Metal: WORK MOD / SMALL PROJECT PRICING WORKSHEET Job Name: Bozeman Public Safety Center Description: ACE Snow Infilatration Memo - Option#1 Date: 6/6/2023 PRICING IS GOOD FOR 30 DAYS AFTER DATE ABOVE. Plumbing: Supervision: Plumbing Supervision Sheet Metal Supervision Total Material/Labor Direct Costs Subcontractors with 10% Overhead & Profit PM Time Total Supervision 15% Overhead & Profit Comm. Drive/Bid Prep forms/Change Order Worksheet 151 © Johnson Controls P Page 1 of 7 Created on: 06/20/2023 Proposal Date: 06/20/2023 To: Central Plumbing & Heating From: Brandon Karroll 3701 River Drive North 1185 N 14th Ave, Suite 4 Great Falls, MT 59405 Bozeman, MT 59715 Office (406)-586-2004 Fax (406)-586-2764 Mobile (406)-223-0253 Brandon.Fillon.Karroll@jci.com Attn: Ryan Calbick Project: Bozeman Public Safety Center Snow Infiltration Recommendations 121 N Rouse Avenue Bozeman, MT 59715 Pricing: Base Option #1 Eleven Thousand Two Hundred Twenty-Two Dollars and No Cents $11,220.00 ERV Option #2 Add Two Thousand Five Hundred Twenty-Nine Dollars and No Cents $2,529.00 Scope of Work Johnson Controls, Inc. is pleased to provide the following scope of work and pricing for an extension of the Johnson Controls Metasys Building Automation System for the Bozeman Public Safety Center based on a Memo prepared by Associated Construction Engineering, Inc. and dated April 14th, 2023. Johnson Controls will provide engineering, submittals, coordination with other trades, controls installation, programming, graphics, technical startup, complete system checkout, and customer training for the Bozeman Public Safety Center Snow Infiltration Recommendations project. All new controls are to be tied into the existing building’s Metasys building automation system. AHU-2 / Air Handling Unit (Quantity 1) • Recommendation: Solar wall intake is open all the time unless discharge air temperature gets too hot. By doing this, the bypass damper behind louver L-1 will be closed or partially closed during the winter months, thus reducing the amount of snow infiltration. 1. JCI to furnish programming modifications and verification of controls to meet the recommended sequence of operations. 152 © Johnson Controls P Page 2 of 7 Created on: 06/20/2023 ▪ Includes revising solar wall preheat function and economizer sequence of operations to meet the recommendation. ▪ Includes furnishing and installing new Outdoor Air Humidity Sensor and calculating dew point for accurate control of solar wall and outdoor air during snow/weather event. AHU-3 / Air Handling Unit (Quantity 1) • Recommendation: Forcing unit into minimum ventilation damper position during snow events. Install moisture sensor in duct, if moisture is sensed, damper goes to minimum position. 1. JCI to furnish and install moisture sensor, programming modifications, and verification of controls to meet the recommended sequence of operations. ▪ Includes revising economizer sequence of operations to include moisture sensor function ▪ Includes utilizing new Outdoor Air Humidity Sensor mentioned above and calculating dew point for accurate control of minimum outdoor air during snow/weather event. ▪ Includes furnishing and installing new moisture sensor ERV-1 / Energy Recovery Unit (Quantity 1) • Recommendation: Provide hood with electric heating element, provide moisture sensor to interlock with heat pad control. 1. JCI to furnish and install moisture sensor, programming modifications, and verification of controls to meet the recommended sequence of operations. ▪ Includes furnishing and installing new moisture sensor ▪ Includes furnishing and installing new heat pad relay for moisture sensor interlock COMMISSIONING / TEST & BALANCE / TRAINING / WARRANTY ▪ Includes necessary site visits for test and balance contractor coordination and system commissioning. ▪ Includes (00) hours of on-site owner/operator training. ▪ Includes labor warranty for (01) year from date of owner’s acceptance of a certificate of substantial completion. ▪ Includes JCI material warranty for (03) years from manufacturer’s date. 153 © Johnson Controls P Page 3 of 7 Created on: 06/20/2023 Exclusions & Clarifications (applies to all sections) 1. Pricing assumes normal working hours, Mon-Fri, 7am to 4pm. Excludes all off-hours work. 2. Excludes furnishing and/or installation of the following unless noted otherwise in this proposal; a. Fire Smoke Dampers (FSD), Smoke Control Dampers (SCDs) Fire/Smoke Detectors or associated power and control wiring b. Control Dampers c. Starters, Disconnects or Variable Speed Drives d. Line-Voltage Thermostats, Thermal Switches or Pushbutton Switches e. Lighting Integration or Lighting Controls f. Line voltage power g. Mechanical Equipment h. Access Doors i. Thermometers, Thermowells or Pressure Gauges j. Control Valves k. Airflow Measuring Stations l. Metering Devices 3. Excludes all 120v power to controllers, transformers or any other applicable devices. Thermostat conduit rough-in provided by Div.26. 4. Excludes any demolition work unless noted otherwise in this proposal. 5. Low voltage cabling will be installed using plenum rated cables without conduit in concealed, accessible locations. Where exposed or subject to damage, EMT conduit will be used. This applies to all control work. 6. Excludes any work or services associated or connected with the identification, abatement, cleanup, control, removal or disposal of hazardous materials or substances, including but not limited to asbestos or PCBs. 7. Start-up and/or verification of factory-installed controls to be provided by others. 8. Excludes Mineral Insulated Cable or work associated with the installation, procurement or wiring of said cable. 9. Excludes Maintenance or troubleshooting not associated with the scope of work described above. 10. Excludes Air or Water test & balancing 11. Work associated with occupancy/motion detector(s) 12. Excludes 3rd Party Commissioning or commissioning assistance unless noted otherwise in this proposal. 13. Excludes liquidated damages. 14. All invoices are net thirty (30) days. 15. Excludes any and all items not specifically mentioned in the document above. PLEASE FILL OUT IF YOU WILL BE PROVIDING JOHNSON CONTROLS WITH YOUR CONTRACT IN THE NEAR FUTURE 1. Will retention be withheld? (circle one) YES NO if yes, how much________% 2. If you are providing your contract to Johnson Controls for this project, what are the payment terms stated in your contract? ______________________________________________ 3. Email address for sending invoices ___________________________________________ 4. Is a P.O. needed for invoices, if yes, please provide P.O. __________________________? 5. Is certified payroll required? (circle one) YES NO • If yes, are the reports (circle one) • STATE CERTIFIED PAYROLL or FEDERAL DAVIS BACON WAGE 6. Please provide an email address for emailing certified payroll reports (if applicable): ______________________________________________________________________ 154 © Johnson Controls P Page 4 of 7 Created on: 06/20/2023 Signatures This proposal is hereby accepted, and Johnson Controls is authorized to proceed with the work, subject however, to credit approval by Johnson Controls. This proposal is Valid for 30 Calendar days Signature Signature Company: Name: Name: Brandon Karroll PO #: Title: Sales Engineer Construction Date: CUSTOMER APPROVAL: Please check the applicable box indicating Customer Purchase Order (PO) Requirements: ▢ No PO Required ▢ Single PO Required for Initial Term ▢ Annual PO Required Select this checkbox if you prefer paperless invoice delivery. Invoices should be emailed to the following Accounts Payable email address in Lieu of standard US mail (if applicable): ▢ AP Email Address: ______________________________________________________________ Standard Terms and Conditions – U.S.A. and Canada (1) AGREEMENT AND LIMITATIONS. This document (the “Agreement”) sets forth the terms and conditions of any sale by Seller of the specified product, equipment or services indicated on the reverse side hereof or attachment and is expressly made conditional on the assent of Buyer (hereinafter “Buyer”) to these Standard Terms and Conditions. Buyer’s acceptance of any part of the product, equipment or services sold or Buyer’s instructions to Seller to begin work or to ship any product or equipment after receipt of these Standards Terms and Conditions shall constitute such assent, and a waiver of all terms and conditions in its purchase order or similar document which are different from or additional to those set forth herein. Seller’s failure to object to provisions contained in any communication from Buyer shall not be deemed a waiver of these Standard Terms and Conditions. References to “products” or “equipment” herein shall mean the product and equipment to be furnished by Seller as identified on the applicable Seller Quotation. These Standard Terms and Conditions may be modified or rescinded only by a writing signed by authorized representatives of both Seller and Buyer. . (2) TERMINATION OR MODIFICATION. Accepted orders may by cancelled or modified by Buyer only with Seller's express written consent. If cancellation or modification is allowed, Buyer agrees to pay to Seller all expenses incurred and damage sustained by Seller on account of such cancellation or modification, plus a reasonable profit. (3) PRICE, SHIPMENT, AND PAYMENT. Prices on accepted orders are firm for a period of 90 days from date of acceptance. Prices for products may be adjusted by Seller, upon notice to Buyer at any time prior to shipment, to reflect any increase in Seller’s cost of raw materials (e.g., steel, aluminum) incurred by Seller after issuance of Seller’s applicable proposal or quotation. Price and delivery is F.O.B. point of manufacture, unless otherwise provided. Unless otherwise agreed to in writing by Seller, all payments are due net thirty (30) days from the date of invoice. Seller may, at its sole option, have the right to make any delivery under this Agreement payable on a cash or payment guarantee before-shipment basis. In the case of export sales, unless otherwise agreed to in writing by Seller, all payments are to be by means of a confirmed irrevocable letter of credit. Invoicing disputes must be identified in writing within 21 days of the date of invoice. Payments of any disputed amounts are due and payable upon resolution. All other amounts remain due within 30 days. In the event of Buyer’s default, the balance of any outstanding amounts will be immediately due and payable. Failure to make payments when due will give Seller, without prejudice to any other right or remedy, the right to: (i) stop performing any services, withhold deliveries of equipment and other materials, terminate or suspend any unpaid software licenses, and/or terminate this Agreement; and (ii) charge Buyer interest on the amounts unpaid at a rate equal to the lesser of one and one half (1.5) percent per month or the maximum rate permitted under applicable law, until payment is made in full. Shipments to Buyer with outstanding invoices unpaid after thirty (30) days will be suspended until all overdue invoices are paid or be made on a cash-in-advance basis only, in Seller’s sole discretion. 155 © Johnson Controls P Page 5 of 7 Created on: 06/20/2023 (4) DEPOSIT. Buyer agrees to pay a deposit equal to 50% of the sell price (pre-tax) prior to Seller performing work. Seller will generate an invoice for the 50% deposit within three business days after Seller’s receipt of a written agreement or order from Buyer. Seller will not commence work until receipt of the deposit. (5) TAXES. All prices exclude federal, harmonized, state/provincial and local use, sales or similar applicable taxes. Such taxes, if applicable, will appear as separate items on the invoice unless Buyer provides a tax exemption certificate that is acceptable to taxing authorities. (6) DELIVERY. The delivery date(s) provided by Seller for the product and equipment is only an estimate and is based upon prompt receipt of all necessary information from Buyer. The delivery date(s) is subject to and shall be extended by delays caused by strikes, fires, accidents, shortages of labor or materials, embargoes, or delays in transportation, compliance with government agency or official requests, or any other similar or dissimilar cause beyond the reasonable control of Seller. FAILURE TO DELIVER WITHIN THE TIME ESTIMATED SHALL NOT BE A MATERIAL BREACH OF CONTRACT ON SELLER'S PART. If Buyer causes Seller to delay shipment or completion of the product or equipment, Seller shall be entitled to any and all extra cost and expenses resulting from such delay. (7) LIMITED WARRANTY. Seller warrants that the product and equipment furnished by Seller under this Agreement will be of good quality and that the services provided by Seller will be provided in a good and workmanlike manner for a period of twelve (12) months from initial product startup, or eighteen (18) months from product shipment, whichever occurs first (the “Warranty Period”) unless such Warranty Period is modified by Seller’s proposal. Alongside this limited warranty, for all new York™ air or water-cooled chillers and/or Metasys™ building automation systems installed in the US and Canada and sold through Seller owned and operated branches,Seller also provides a Year One Service Agreement for such equipment, the scope, limitations, terms and conditions of which are at https://www.johnsoncontrols.com/yearoneservice (collectively, “Year One Service”). Seller will not provide a credit against purchase price if offered Year One Service is declined. No warranty is provided for third- party products and equipment installed or furnished by Seller. Such products and equipment are provided with the third-party manufacturer’s warranty to the extent available, and Seller will transfer the benefits together with all limitations of that manufacturer’s warranty to Buyer. This warranty does not cover failures caused in whole or in part by (i) improper installation or maintenance performed by anyone other than Seller; (ii) improper use or application; (iii) corrosion; (iv) normal deterioration; (v) operation beyond rated capacity, (vi) the use of replacement parts or lubricants which do not meet or exceed Seller’s specifications, or (vii) if Seller’s serial numbers or warranty date decals have been removed or altered. To qualify for warranty consideration for products or equipment, at the earlier of the Buyer’s discovery of the defect or the time at which the Buyer should have discovered the defect; Buyer must immediately notify Seller in writing for instructions on warranty procedures. Seller's sole obligation for defective services shall be to repair or to replace defective parts or to properly redo defective services. All replaced equipment becomes Seller’s property. THIS WARRANTY IS EXCLUSIVE AND IN LIEU OF ALL OTHER EXPRESS OR IMPLIED WARRANTIES INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WHICH ARE HEREBY DISCLAIMED. THESE WARRANTIES ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THOSE OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. Seller makes no and specifically disclaims all representations or warranties that the services, products, software or third party product or software will be secure from cyber threats, hacking or other similar malicious activity or will detect the presence of, or eliminate, treat, or mitigate the spread, transmission, or outbreak of any pathogen, disease, virus or other contagion, including but not limited to COVID 19. (8) INDEMNIFICATION, REMEDIES AND LIMITATIONS OF LIABILITY. In addition to Paragraph 8 below regarding patents, Buyer agrees that Seller shall be responsible only for such injury, loss, or damage caused by the intentional misconduct or the negligent act or omission of Seller. In the event Buyer claims Seller has breached any of its obligations under the Agreement, whether of warranty or otherwise, Seller may request the return of the goods and tender to Buyer the purchase price theretofore paid by Buyer, and in such event, Seller shall have no further obligation under the Agreement except to refund such purchase price upon redelivery of the goods. If Seller so requests the return of the goods, the goods shall be redelivered to Seller in accordance with Seller's instructions and at Seller's expense. The remedies contained in these Standard Terms and Conditions shall constitute the sole recourse of Buyer against Seller for breach of any of Seller's obligations under the Agreement, whether of warranty or otherwise. To the maximum extent permitted by law, in no event shall Seller and its affiliates and their respective personnel, suppliers and vendors (“JCI Parties”) be liable to Buyer or any third party under any cause of action or theory of liability, even if advised of the possibility of such damages, for any: (a) special, indirect, incidental, punitive, or consequential damages; (b) lost profits, revenues, data, customer opportunities, business, anticipated savings or goodwill; (c) business interruption; or (d) data loss or other losses arising from viruses, ransomware, cyber-attacks or failures or interruptions to network systems. In any case, the entire aggregate liability of the JCI Parties under this Agreement for all damages, losses and causes of action, whether in contract, tort (including negligence), or otherwise) shall be limited to the purchase price paid by Buyer hereunder.. (9) PATENTS. Seller shall defend, or at its option settle, any action against Buyer brought by a third party to the extent that the action is based upon a claim that the products or equipment provided under the Agreement in the United States infringes any U.S. patents or copyrights 9or in Canada infringes on any Canadian patents or copyrights), or misappropriates any trade secrets of a third party (“Claim”), provided that: (i) Buyer gives Seller prompt written notice of any such Claim, (ii) Buyer gives Seller full authority to defend or settle any such Claim, and (iii) Buyer gives Seller proper and full information and assistance, at Seller’s expense (except for Buyer’s employees’ time) to defend or settle any such Claim. Seller will pay those costs and damages finally awarded against Buyer in the action that are specifically attributable to the claim or those costs and damages agreed to in a monetary settlement of the action. THE FOREGOING IS IN LIEU OF ANY WARRANTIES OF NONINFRINGEMENT, WHICH ARE HEREBY DISCLAIMED. The foregoing obligation of Seller does not apply with respect to products or equipment or portions or components thereof (a) not supplied by Seller, (b) made in whole or in part in accordance to Buyer or owner specifications, (c) which are modified after shipment by Seller, if the alleged infringement related to such modification, (d) combined with other products, processes or materials where the alleged infringement relates to such combination, (e) where Buyer continues allegedly infringing activity after being notified thereof and/or after being informed of modifications that would have avoided the alleged infringement without significant loss of performance or functionality, or (f) where Buyer’s use of the product or equipment is incident to an infringement not resulting primarily from the product or equipment; Buyer will indemnify Seller and its officers, directors, agents, and employees from all damages, settlements, attorneys’ fees and expenses related to a claim of infringement, misappropriation, defamation, violation of rights of publicity or privacy excluded from Seller’s indemnity obligation herein. (10) GOVERNING LAW. For any goods or work performed in the U.S., the formation and performance of the Agreement shall be governed by the laws of the State of Wisconsin, U.S.A. For any goods or work performed in Canada, the Agreement shall be governed by the laws of Ontario. Other than claims for unpaid contract amounts by Seller, any action for breach of the Agreement or any covenant or warranty must be commenced within one year after the cause of action has accrued unless such provision is not permitted by applicable law. (11) DISPUTE RESOLUTION. Seller shall have the sole and exclusive right to determine whether any dispute, controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be submitted to a court of law or arbitrated. The venue for any such arbitration shall be in Milwaukee, Wisconsin for U.S. sales, and Toronto, Ontario for Canadian sales. The arbitrator’s award may be confirmed and reduced to judgment in any court of competent jurisdiction. In the event the matter is submitted to a court, Seller and Buyer hereby agree to waive their right 156 © Johnson Controls P Page 6 of 7 Created on: 06/20/2023 to trial by jury and covenant that neither of them will request trial by jury in any such litigation. Buyer will pay all of Seller’s reasonable collection costs (including legal fees and expenses). (12) SOFTWARE AND DIGITAL SERVICES. Use, implementation, and deployment of the software and hosted software products (“Software”) offered under these terms shall be subject to, and governed by, Seller’s standard terms for such Software and Software related professional services in effect from time to time at https://www.johnsoncontrols.com/techterms(collectively, the “Software Terms”). Applicable Software Terms are incorporated herein by this reference. Other than the right to use the Software as set forth in the Software Terms, Seller and its licensors reserve all right, title, and interest (including all intellectual property rights) in and to the Software and improvements to the Software. The Software that is licensed hereunder is licensed subject to the Software Terms and not sold. If there is a conflict between the other terms herein and the Software Terms, the Software Terms shall take precedence and govern with respect to rights and responsibilities relating to the Software, its implementation and deployment and any improvements thereto. Notwithstanding any other provisions of this Agreement, unless otherwise set forth herein, the following terms apply to Software that is provided to Buyer on a subscription basis (i.e., a time limited license or use right), (each a “Software Subscription”): Each Software Subscription provided hereunder will commence on the date the initial credentials for the Software are made available (the “Subscription Start Date”) and will continue in effect until the expiration of the subscription term noted herein. At the expiration of the Software Subscription, such Software Subscription will automatically renew for consecutive one (1) year terms (each a “Renewal Subscription Term”), unless either party provides the other party with a notice of non-renewal at least ninety (90) days prior to the expiration of the then-current term. To the extent permitted by applicable law, Software Subscriptions purchases are non-cancelable and the sums paid nonrefundable. Fees for Software Subscriptions shall be paid annually in advance, invoiced on the Subscription Start Date and each subsequent anniversary thereof. Unless otherwise agreed by the parties in writing, the subscription fee for each Renewal Subscription Term will be priced at Seller’s then-applicable list price for that Software offering. Any use of Software that exceeds the scope, metrics or volume set forth in this Agreement will be subject to additional fees based on the date such excess use began. (13) PRIVACY. Seller as Processor: Where Seller factually acts as Processor of Personal Data on behalf of Buyer (as such terms are defined in the DPA) the terms at www.johnsoncontrols.com/dpa(“DPA”) shall apply. Seller as Controller: Seller will collect, process and transfer certain personal data of Buyer and its personnel related to the business relationship between it and Buyer (for example names, email addresses, telephone numbers) as controller and in accordance with Seller’s Privacy Notice at https://www.johnsoncontrols.com/privacy. Buyer acknowledges Seller’s Privacy Notice and strictly to the extent consent is mandatorily required under applicable law, Buyer consents to such collection, processing and transfer. To the extent consent to such collection, processing and transfer by Seller is mandatorily required from Buyer’s personnel under applicable law, Buyer warrants and represents that it has obtained such consent. (14) CONNECTED EQUIPMENT SERVICES. Certain equipment sold hereunder includes by default Seller’s Connected Equipment Services. Connected Equipment Services is a data-analytics and monitoring Software platform that uses a cellular or network connection to gather equipment performance data to assist Seller in advising Buyer on (and Buyer in better understanding) such equipment’s health, performance or potential malfunction. If Buyer’s equipment includes Connected Equipment Services, such services will be on by default and the remote connection will continue to connect to Buyer’s Equipment through the full equipment lifecycle, unless Buyer specifically requests in writing that Seller disable the remote connection or Seller discontinues or removes such remote connection. For more information on whether your particular equipment includes Connected Equipment Services, a subscription to such services and the cost, if any, of such subscription, please see your applicable order, quote, proposal, or purchase documentation or talk to your Seller sales representative. If Buyer’s equipment includes Connected Equipment Services, Seller will provide a cellular modem or other gateway device (“Gateway Device”) owned by Seller or Buyer will supply a network connection suitable to establish a remote connection with Buyer’s applicable equipment to permit Seller to use Connected Equipment Services to perform first-year and extended warranty services as well as other services, including troubleshooting, quarterly health reports, remote diagnostic and monitoring and aftermarket services. For certain subscriptions, Buyer will be able to access equipment information from a mobile or smart device using Connected Equipment Service’s mobile or web app. Any Gateway Devices provided hereunder shall remain Seller’s property, and Seller may upon reasonable notice access and remove such Gateway Device and discontinue services in accordance with the Software Terms. If Buyer does not permit Seller to connect via a connection validated by Seller for the equipment or the connection is disconnected by Buyer, and a service representative must therefore be dispatched to the Buyer site, then the Buyer will pay Seller at Seller’s then-current standard applicable contract regular time and/or overtime rate for services performed by the service representative. Seller disclaims any obligation to advise Buyer of any possible equipment error or malfunction. Buyer acknowledges that, while Connected Equipment Services generally improve equipment performance and services, Connected Equipment Services does not prevent all potential malfunction, insure against all loss or guarantee a certain level of performance and that Seller shall not be responsible for any injury, loss, or damage caused by any act or omission of Seller related to or arising from the monitoring of the equipment under Connected Equipment Services. (15) MISCELLEANEOUS (a) CHANGES OF CONSTRUCTION AND DESIGN: Seller reserves the right to change or revise the construction and design of the products or equipment purchased by Buyer, without liability or obligation to incorporate such changes to products or equipment ordered by Buyer unless specifically agreed upon in writing reasonably in advance of the delivery date for such products or equipment. Buyer agrees to bear the expense of meeting any changes or modifications in the scope of this Agreement or in local code requirements which become effective after Seller has accepted Buyer’s order. (b) CHARACTER OF PRODUCT AND SECURITY INTEREST: The goods delivered by Seller under the terms of the Agreement shall remain personal property and retain its character as such no matter in what manner affixed or attached to any structure or property. Buyer grants Seller a security interest in said goods, any replacement parts and any proceeds thereof until all sums due Seller have been paid to it in cash. This security interest shall secure all indebtedness or obligations of whatsoever nature now or hereafter owing Buyer to Seller. Buyer shall pay all expenses of any nature whatsoever incurred by Seller in connection with said security interest.Notwithstanding anything to the contrary contained herein, the terms of this Agreement shall be subject to the mechanics lien legislation applicable to the location where the work will be performed. (c) INSURANCE: Buyer agrees to insure the goods delivered under the Agreement in an amount at least equal to the purchase price against loss or damage from fire, wind, water or other causes. The insurance policies are to be made payable to Seller and Buyer in accordance with their respective interests, and when issued are to be delivered to Seller and held by it. Failure to take out and maintain such insurance shall entitle Seller to declare the entire purchase price to be immediately due and payable and shall also entitle Seller to recover possession of said goods. (d) INSTALLATION: If installation by the Seller is included within the Seller’s Quotation, Buyer shall provide all of the following at its own expense and at all times pertinent to the installation: i) free, dry, and reasonable access to Buyer’s premises; and ii) proper foundations, lighting, power, water and storage facilities reasonably required. If any change in the scope of this Agreement or schedule for performance is ordered or directed by the Buyer (or any other party to the installation other than Seller) or any Force Majeure Event causes an increase in the cost or time required 157 © Johnson Controls P Page 7 of 7 Created on: 06/20/2023 for Seller’s performance of the work, Buyer shall make an upward equitable adjustment in the contract price or time of performance or both. Seller’s additional costs, plus reasonable overhead and profit, shall be paid in full no later than 30 days from completion of such work. (e) COMPLIANCE WITH LAWS: Seller’s obligations are subject to the export administration and control laws and regulations of the United States and Canada. Buyer shall comply fully with such applicable laws and regulation in the export, resale or disposition of purchased products or equipment. Quotations or proposals made, and any orders accepted by Seller from a Buyer outside the United States or Canada are with the understanding that the ultimate destination of the products or equipment is the country indicated therein. Diversion of the products or equipment to any other destination contrary to the United States or Canada, as applicable, is prohibited. Accordingly, if the foregoing understanding is incorrect, or if Buyer intends to divert the products or equipment to any other destination, Buyer shall immediately inform Seller of the correct ultimate destination. (f) BUYER RESPONSIBILITIES: Buyer is solely responsible for the establishment, operation, maintenance, access, security and other aspects of its computer network (“Network”) and shall supply Seller secure Network access for providing its services. Products networked, connected to the internet, or otherwise connected to computers or other devices must be appropriately protected by Buyer and/or end user against unauthorized access. Buyer is responsible to take appropriate measures, including performing back-ups, to protect information, including without limit data, software, or files (collectively “Data”) prior to receiving the service or products. (g) FORCE MAJUERE: Seller shall not be liable, nor in breach or default of its obligations under this Agreement, for delays, interruption, failure to render services, or any other failure by Seller to perform an obligation under this Agreement, where such delay, interruption or failure is caused, in whole or in part, directly or indirectly, by a Force Majeure Event. A “Force Majeure Event” is a condition or event that is beyond the reasonable control of Seller, whether foreseeable or unforeseeable, including, without limitation, acts of God, severe weather (including but not limited to hurricanes, tornados, severe snowstorms or severe rainstorms), wildfires, floods, earthquakes, seismic disturbances, or other natural disasters, acts or omissions of any governmental authority (including change of any applicable law or regulation), epidemics, pandemics, disease, viruses, quarantines, or other public health risks and/or responses thereto, condemnation, strikes, lock-outs, labor disputes, an increase of 5% or more in tariffs or other excise taxes for materials to be used on the project, fires, explosions or other casualties, thefts, vandalism, civil disturbances, insurrection, mob violence, riots, war or other armed conflict (or the serious threat of same), acts of terrorism, electrical power outages, interruptions or degradations in telecommunications, computer, network, or electronic communications systems, data breach, cyber-attacks, ransomware, unavailability or shortage of parts, materials, supplies, or transportation, or any other cause or casualty beyond the reasonable control of Seller. If Seller’s performance of the work is delayed, impacted, or prevented by a Force Majeure Event or its continued effects, Seller shall be excused from performance under the Agreement. Without limiting the generality of the foregoing, if Seller is delayed in achieving one or more of the scheduled milestones set forth in the Agreement due to a Force Majeure Event, Seller will be entitled to extend the relevant completion date by the amount of time that Seller was delayed as a result of the Force Majeure Event, plus such additional time as may be reasonably necessary to overcome the effect of the delay. To the extent that the Force Majeure Event directly or indirectly increases Seller’s cost to perform the services, Buyer is obligated to reimburse Seller for such increased costs, including, without limitation, costs incurred by Seller for additional labor, inventory storage, expedited shipping fees, trailer and equipment rental fees, subcontractor fees or other costs and expenses incurred by Seller in connection with the Force Majeure Event. (h) ONE-YEAR CLAIMS LIMITATION: No claim or cause of action, whether known or unknown, shall be brought against Seller more than one year after the claim first arose. Except as provided for herein, Seller’s claims must also be brought within one year. Claims for unpaid contract amounts are not subject to the one-year limitation. T&C Version: 7/29/2021 158 Reference: Salesman: 2/15/23 1 of 1QUOTATION Estimate No: MSS HAL 105082 - 1MISTOP (Division of Acme Mfg. Corp.) 6532 Tower Lane Claremore, OK 74019 (800) 647-8671 Toll Free (918) 266-3091 Fax Revised 6/6/2023 Part Number Item Description Qty Cost Ea.Tot Cost Wt. Ea Tot Wt Class SOLD TO: BPSC 3701 RIVER DRIVE NORTH CENTRAL PLUMBING & HEATING GREAT FALLS, MT 59405 FAX: PROJECT: PHONE: M166 OFFICE: ATTENTION:RYAN CALBICK CUSTOMER NO: 406-727-0000 CARRIER: FOB: FREIGHT:ALLOWED CLAREMORE, OK OLD DOMINION * Main Office WHI31X60X38 A05 FR1 WALL HOOD INTAKE Alum .050 31"H x 60"L x 38"D, 1" Filter Rack 2 $1,326.17 $2,652.34 106 200 212 Tags: Two Stack MSS35X60X1 S04 V208 SnoStop Panel 35 H x 60 L x 1 T 304 Stainless Steel 208 Volt/60/1 180 Watt/Sf 2 $2,656.66 $5,313.32 46 85 92 Tags: 2,888 watts ea, 13.9 amps ea TOTALS: F.O.B. CLAREMORE, OK. 304 LBS $945.00 $8,910.66 Freight Tot WtTot PcsClass 2 212200 2 9285 304 4 Thank You For The Opportunity To Quote Hal Lewis 159 DETAIL A A MISTOP (Division of Acme Mfg. Corp.) 6532 Tower LaneClaremore, OK 74019 (800) 647-8671 Toll Free (918) 266-3091 FaxDescription 1 2 3 ALUM. WEATHER HOOD 2" ALUM. MATING FLANGE SNOSTOP PANEL H:\EngineeringShared\Dcaddata\MISTOP\Submittals\Submittal-MSS-WHI-Stack2 A "H" Dim SnoStop A B A C DD A C CBD Dimensional Information Tag 38" 60" 38" 66" 31" 31" 36" 66" 3) 20"x36"x1" washable mesh AL filters 3) 20"x36"x1" washable mesh AL filters Hood Material 26 gauge, painted flat black, utilize black screws and anchors, install 3/4" birdscreen at wall ERV-1 OPT 1 160 Change Estimate Report Project:Bozeman Public Safety Center CE No:164 Project #19426 Revision # Change Source: Owner's Request Date:10/10/2023 Description:Digital Signage System Return Return of digital signage system per the request of the City of Bozeman. Category Description Quantity Unit Unit Cost Total DEDUCT FROM CONTINGENCY $- 27B.2740 Digital Sign Operating System (1)sum $18,700.92 $(18,700.92) $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- SUBTOTAL $(18,700.92) GC/CM Business Insurance 0.625%$(116.89) CM Fee 3.2%$(602.17) Bond 1.0%$(194.20) TOTAL $(19,614.18) 161 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 2114 Provisional Adoption to Establish an Initial Zoning Designation of R-3 (Residential Medium Density District) in Association with the Annexation of 1.17 Acres, the South 3rd Annexation, Application 21161 MEETING DATE:December 12, 2023 AGENDA ITEM TYPE:Ordinance RECOMMENDATION:Provisionally adopt Ordinance 2114 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 21161 on February 1, 2022 to annex 1.17 acres and establish an initial zoning designation of R-3 (Residential Medium Density District) subject to terms of annexation and contingencies for zoning. Final documents and easements were received by the Applicant on October 5, 2023. The property is on the west side of south 3rd Avenue and to the southeast of the Museum of the Rockies property. The property underwent a Growth Policy Amendment in December 2021 to change the designation from PLI to Urban Neighborhood, see Resolution No. 5367. Subsequently an application to annex the property and establish an initial municipal zoning of R-3 was submitted, reviewed, and approved. South 3rd Avenue is a designated collector street in the Bozeman Transportation Plan. This annexation will bring in additional right of way to build out South 3rd Avenue to the full city street classification as would be required with future development. The Future Land Use Map in the Bozeman Community Plan (BCP) 2020 designates the property as “Urban Neighborhood” which includes the R-3 district as an implementing zoning district. The property currently hosts a detached single-household residential 162 structure connected to an individual well and septic system. 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: 2913-00821 11x17 ZMA 4-11-22.pdf 21161 South 3rd ZMA Ordinance 2114.pdf Report compiled on: November 20, 2023 163 164 Ord 2114 Page 1 of 5 ORDINANCE 2114 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA AMENDING THE CITY OF BOZEMAN ZONING MAP TO ESTABLISH INITIAL ZONING OF R-3, RESIDENTIAL MEDIUM DENSITY DISTRICT, KNOWN AS THE SOUTH 3RD ZONE MAP AMENDMENT, APPLICATION 21161. 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 municipal zoning on 1.17 acres to R-3 (Residential Medium Density District) has been properly submitted, reviewed, and advertised; and 165 Ordinance No. 2114, South 3rd ZMA Page 2 of 5 WHEREAS, after proper notice, the Bozeman Zoning Commission held a public hearing on January 3, 2022 to receive and review all written and oral testimony on the request for a zone map amendment; and WHEREAS, the Bozeman Zoning Commission recommended to the Bozeman City Commission that application No. 21161 the South 3rd Zone Map Amendment, be approved as requested by the applicant; and WHEREAS, after proper notice, the City Commission held its public hearing on February 1, 2022, to receive and review all written and oral testimony on the request for the zone map amendment; and WHEREAS, the City Commission has reviewed and considered the zone map amendment criteria established in Section 76-2-304, M.C.A., and found that the proposed zone map amendment would be in compliance with the criteria. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: Section 1 That the zoning district designation of the following-described property is hereby designated as R-3, Residential Medium Density District: An area of land comprised described as follows: Beginning at a point (POB), that is a 2" Brass Cap in a Metal Monument Box, and which is the Northeast Corner of Section 24, Township 2 South, Range 5 East, Principal Meridian Montana, Gallatin County, Montana; • thence S 89° 53' 31" E, along the line common to sections 18 and 19 of said T2S, R6E, a distance of 45.00 feet to a point; • thence leaving said section line and running S 00° 06' 29" W along the eastern boundary of said Fm174Pg5212 deed parcel, a distance of 165.05 feet to a point; 166 Ordinance No. 2114, South 3rd ZMA Page 3 of 5 • thence N 89° 53' 31" W, a distance of 45.00 feet to a point on the range line and the line common to sections 19 and 24; • thence S 88° 58' 09" W, a distance of 263.98 feet to a point; • thence N 00° 06' 11" E, a distance of 164.97 feet to a point on the line common to sections 13 and 24 of said T2S, R5E; • thence N 88° 57' 03" E, a distance of 264.00 feet along said line common to sections 13 and 24 to the POB. Said Tract being 50,970 square feet or 1.17 acres more or less, along with and subject to all easements of record. Section 2 Repealer. All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force and effect. Section 3 Savings Provision. This ordinance does not affect the rights and duties that matured, penalties that were incurred or proceedings that were begun before the effective date of this ordinance. All other provisions of the Bozeman Municipal Code not amended by this Ordinance shall remain in full force and effect. Section 4 Severability. That should any sentence, paragraph, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this ordinance as a whole, or any part or provision thereof, other than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman Municipal Code as a whole. 167 Ordinance No. 2114, South 3rd ZMA Page 4 of 5 Section 5 Codification. This Ordinance shall not be codified but shall be kept by the City Clerk and entered into a disposition list in numerical order with all other ordinances of the City and shall be organized in a category entitled “Zone Map Amendments.” Section 6 Effective Date. This ordinance shall be in full force and effect thirty (30) days after final adoption. 168 Ordinance No. 2114, South 3rd ZMA Page 5 of 5 PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on the ______ 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 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:Ordinance 2120 Provisional Adoption to Establish an Initial Zoning Designation of B-2M (Community Business-Mixed District) in Association with the Annexation of 8.55 Acres, the 6590 Davis Lane Annexation, Application 21443 MEETING DATE:December 12, 2023 AGENDA ITEM TYPE:Ordinance RECOMMENDATION:Provisionally adopt Ordinance 2120 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 21443 on June 28, 2022 to annex 8.55 acres and establish an initial zoning designation of B-2M (Community Business-Mixed) subject to terms of annexation and contingencies for zoning. Final documents and easements were received by the Applicant on July 19, 2023. A signed annexation agreement has been received. The property is bordered by Davis Lane to the west (a Bozeman classified minor arterial street). The proposed annexation would bring in additional right of way to build out Davis Lane to the full city street classification as would be required with future development. The Future Land Use Map in the Bozeman Community Plan (BCP) 2020 designates the property as “Community Commercial Mixed Use” which includes the B-2M district as an implementing zoning district. The property currently hosts a detached single-household residential structure connected to an individual well and septic system. The property is surrounded to the north, east, and south by other similar residential properties utilizing individual well and septic systems. There is an existing 24 inch sanitary sewer pipe in Davis Lane. Water supply is installed in adjacent streets of Galloway and Kimerwicke Streets west of 170 Davis Lane. 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: 21443 DavisLaneProperty_Annexation&ZoningMap.pdf 21443 6590 Davis Lane ZMA Ordinance 2120.pdf Report compiled on: November 20, 2023 171 172 Ord 2120 Page 1 of 5 ORDINANCE 2120 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA AMENDING THE CITY OF BOZEMAN ZONING MAP TO INITIALLY DESIGNATE 8.55 ACRES AS B-2M, COMMUNITY BUSINESS MIXED DISTRICT, KNOWN AS THE 6590 DAVIS LANE ZONE MAP AMENDMENT, APPLICATION 21443. WHEREAS, the City of Bozeman has adopted zoning regulations and a zoning map pursuant to Sections 76-2-301 and 76-2-302, M.C.A.; and WHEREAS, Section 76-2-305, M.C.A. allows local governments to amend zoning maps if a public hearing is held and official notice is provided; and WHEREAS, Section 76-2-307, M.C.A. states that the Zoning Commission must conduct a public hearing and submit a report to the City Commission for all zoning map amendment requests; and WHEREAS, the City of Bozeman Zoning Commission has been created by Section 2.05.2700, BMC as provided for in Section 76-2-307, M.C.A.; and WHEREAS, Chapter 38, Article 2 of the Bozeman Unified Development Code sets forth the procedures and review criteria for zoning map amendments; and WHEREAS, the proposed zone map amendment application to amend the City of Bozeman Zoning Map to establish a zoning classification of B-2M (Community Business Mixed) for approximately 8.55 acres has been properly submitted, reviewed, and advertised; and WHEREAS, after proper notice, the Bozeman Community Development Board acting in their capacity as the Zoning Commission held a public hearing on June 6, 2022 to receive and review all written and oral testimony on the request for a zone map amendment; and 173 Ordinance No. 2120, 6590 Davis Lane ZMA Page 2 of 5 WHEREAS, the Bozeman Zoning Commission recommended to the Bozeman City Commission that application No. 21443 the 6590 Davis Lane Zone Map Amendment, be approved as requested by the applicant; and WHEREAS, after proper notice, the City Commission held its public hearing on June 28, 2022, to receive and review all written and oral testimony on the request for the zone map amendment; and WHEREAS, the City Commission has reviewed and considered the zone map amendment criteria established in Section 76-2-304, M.C.A., and found that the proposed zone map amendment would be in compliance with the criteria. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: Section 1 That the zoning district designation of the following-described property is hereby designated as B-2M, Community Commercial Mixed District: An area of land comprised described as follows: A tract of land being the Tract shown on Film 9, Page 45, located in the Southwest One- Quarter of Section 35, Township 1 South, Range 5 East, Principal Meridian Montana, City of Bozeman, Gallatin County, Montana, and being more particularly described as follows: Beginning at a point which bears North 01°24’03” East a distance of 994.81 feet from the Southwest Section Corner of said Section 35, said point being the Southwest corner of said Tract; thence North 01°24’03” East, along the West line of said Section 35, a distance of 636.34 feet; thence South 72°09’59” East, a distance of 1046.17 feet to a point on the Southwest One-Sixteenth line of said Section 35; thence North 89°06’03” West, along said One-Sixteenth line a distance of 341.62 feet; thence South 01°25’16” West, along the East line of the Southwest One-Quarter of the Southwest One-Quarter of the Southwest One- Quarter a distance of 331.51 feet; Thence North 89°06’31” West, a distance of 661.73 feet to the point of beginning; Said tract of land being 8.55 acres, along with and subject to any existing easements. 174 Ordinance No. 2120, 6590 Davis Lane ZMA Page 3 of 5 All as depicted on the 6590 DAVIS LANE PROPERTIES Annexation Map. Section 2 Legislative Findings The City Commission hereby makes the following findings in support of adoption of this Ordinance: 1. The City adopted a growth policy, the Bozeman Community Plan 2020, by Resolution 5133 to establish policies for development of the community including zoning; 2. The Bozeman Community Plan 2020, Chapter 5, sets forth the policies by which the City reviews and applies the criteria for amendment of zoning established in 76-3-304, MCA; 3. Zoning, including amendments to the zoning map, must be in accordance with an adopted growth policy; 4. A staff report analyzing the required criteria for a zone map amendment, including accordance to the Bozeman Community Plan 2020, has found that the required criteria are satisfied; 5. The two required public hearings were advertised as required in state law and municipal 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 B-2M 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 6590 Davis Lane Zone Map Amendment have been satisfied. 175 Ordinance No. 2120, 6590 Davis Lane ZMA Page 4 of 5 Section 3 Repealer. All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force and effect. Section 4 Savings Provision. This ordinance does not affect the rights and duties that matured, penalties that were incurred or proceedings that were begun before the effective date of this ordinance. All other provisions of the Bozeman Municipal Code not amended by this Ordinance shall remain in full force and effect. Section 5 Severability. That should any sentence, paragraph, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this ordinance as a whole, or any part or provision thereof, other than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman Municipal Code as a whole. Section 6 Codification. This Ordinance shall not be codified but shall be kept by the City Clerk and entered into a disposition list in numerical order with all other ordinances of the City and shall be organized in a category entitled “Zone Map Amendments.” Section 6 Effective Date. This ordinance shall be in full force and effect thirty (30) days after final adoption. 176 Ordinance No. 2120, 6590 Davis Lane ZMA Page 5 of 5 PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on the ____th day of _____________ 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 177 Memorandum REPORT TO:City Commission FROM:Renata Munfrada, Community Housing Program Coordinator David Fine, Economic Development Program Manager Brit Fontenot, Economic Development Department Director Greg Sullivan, City Attorney Jeff Mihelich, City Manager SUBJECT:Public Hearing and Work Session on a Petition to Establish a Municipal Housing Authority MEETING DATE:December 12, 2023 AGENDA ITEM TYPE:Policy Discussion RECOMMENDATION:Please refer to Commission Memorandum. 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:On July 8, 2023, the City of Bozeman received a petition to create a MHA. In accordance with 7-15-4403, MCA, the City Commission must conduct a public hearing at which it will determine the need for an authority in the city and surrounding area. Noticing for this public hearing was published on December 3, 2023, and December 10, 2023. The Commission Memorandum provides background information related to the petition, the evolution of housing authorities, federal funding, the statutory framework for a municipal housing authority (MHA) in Montana, the role of the Federal government in funding a MHA, a discussion of Montgomery County, Maryland’s programs, information related to the work of the Gallatin County Housing Coalition on public housing authorities, financing MHA operations and projects in Montana, and other issues such as the role of cooperative agreements and the issues related to land use and zoning. We provide a detailed section toward the end of the Commission Memorandum on the statutory determinations and criteria including a discussion on urban camping in context of the statutory determinations the Commission must make. And, perhaps most importantly, we discuss the impact on the City’s existing community housing program if a MHA is created. Finally, we provide two alternative motions and unresolved issues. 178 Please refer to the full Commission Memorandum, which is linked. UNRESOLVED ISSUES:Please refer to Commission Memorandum. ALTERNATIVES:As directed by the City Commission. FISCAL EFFECTS:Please refer to Commission Memorandum. Attachments: Public Housing Authorities Memo FINAL 12 12 2023.pdf 08-07-23 Petition for Municipal Housing Authority.pdf Housing Authorities in Montana.pdf Housing Authority Map.pdf Meeting Transcript - RHC Housing Authority Workgroup Meeting #1.pdf Meeting Summary - Workgroup Meeting #1.pdf Meeting Transcript - RHC Housing Authority Workgroup Meeting #2.pdf Meeting Summary - Workgroup Meeting #2.pdf Report compiled on: October 24, 2023 179 1 | P a g e Memorandum REPORT TO: City Commission FROM: Renata Munfrada, Community Housing Program Coordinator Greg Sullivan, City Attorney David Fine, Development and Housing Program Manager Brit Fontenot, Economic Development Department Director Jeff Mihelich, City Manager SUBJECT: Public Hearing on a Petition to Establish a Municipal Housing Authority MEETING DATE: December 12, 2023 AGENDA ITEM TYPE: Public Hearing RECOMMENDATION: The Commission must conduct a public hearing and at the hearing make the statutory determination whether there is a need for a municipal housing authority in the City and surrounding areas. The criteria for the determinations are detailed in this memorandum. 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. On July 8, 2023, the City of Bozeman received a petition to create a MHA. In accordance with 7-15-4403, MCA, the City Commission must conduct a public hearing at which it will determine the need for an authority in the city and surrounding area. Noticing for this public hearing was published on December 3, 2023, and December 10, 2023. This memorandum provides background information related to the petition, the evolution of housing authorities, federal funding, the statutory framework for a municipal housing authority (MHA) in Montana, the role of the Federal government in funding a MHA, a discussion of Montgomery County, Maryland’s programs, information related to the work of the Gallatin County Housing Coalition on public housing authorities, financing MHA operations and projects in Montana, and other issues such as the role of cooperative agreements and the issues related to land use and zoning. We provide a detailed section toward the end of the memorandum on the statutory determinations and criteria including a discussion on urban camping in context of the statutory determinations the Commission must make. And, perhaps most importantly, we discuss the impact on the City’s existing 180 2 | P a g e community housing program if a MHA is created. Finally, we provide two alternative motions and unresolved issues. The statutes that control a MHA in Montana are found at Title 7, Chpt. 15, Parts 44 and 45, MCA (referred to throughout this memorandum as the “Montana Municipal Housing Authorities Act”, or the “MMHAA”). Introduction to Findings and Determination Criteria As noted, the Montana Legislature first established enabling legislation authorizing municipalities to establish a MHA in 1935. 7-15-4401, MCA, lists findings and policies supporting the statutory framework. We do not list these findings and policy statements here but please know these provide important background for the purposes and operations of a MHA. Pursuant to 7-15-4406, MCA, the City Commission must make the following determinations: a) whether unsanitary or unsafe inhabited dwelling accommodations exist in the city and the surrounding area; and/or b) whether there is a lack of safe or sanitary dwelling accommodations in the city and the surrounding area available for all the inhabitants thereof. Pursuant to 7-15-4407, MCA, in making the above determinations, the Commission must consider: 1. The physical condition and age of buildings; 2. The degree of overcrowding; 3. The percentage of land coverage; 4. The light and air available to the inhabitants of such dwelling accommodations; 5. The size and arrangement of the rooms; 6. The sanitary facilities; and 7. The extent to which conditions exist in such buildings which endanger life or property by fire or other causes. Staff’s suggested findings related to the above determinations and criteria are provided later in the memorandum. We recommend that the above findings be evaluated on a City-wide basis; that is, the Commission should consider the entirety of the City’s housing stock when making the determinations required by 7-15-4407, MCA. If the Commission determines either or both of the conditions listed above exist, the City must draft an ordinance authorizing the Mayor to appoint seven commissioners to act as the authority. If the Commission determines neither of these conditions exist, it must adopt a resolution denying the petition. We will bring you either the ordinance or resolution at a later date. If the Commission determines to establish a MHA, the ordinance mentioned above is not effective until it has been approved by a majority vote of the registered electors within the city limits voting either at a special election scheduled in conjunction with a regular or primary election or at a general election. 7-15- 4408, MCA. 181 3 | P a g e Evolution of Housing Authorities The Federal government and the State of Montana first enacted legislation in the 1930s to provide legislative frameworks for the establishment of the administration of low-income housing. The purpose of these statutes was to recognize significant issues facing the housing market including, foremost the ageing and unsafe and unsanitary condition of urban housing. In Montana, the Montana Municipal Housing Authority Act (the MMHAA) was first adopted in 1935 to provide an authority, independent of a municipality, to obtain financial assistance for a housing project primarily in the form of federal grants and loans. The initial purpose behind municipal housing authorities in Montana remains basically the same today as it was in the 1930s: to alleviate unsanitary and unsafe dwelling accommodations in Montana’s urban areas that result from the overcrowding of land, improper planning, excessive land coverage, lack of adequate light, air and space, unsanitary design and arrangement, lack of proper sanitary facilities, and the existence of conditions which endanger life or property by fire or other causes. 7-15-4401, MCA. Over the course of time, the Federal government has significantly reduced federal funding for the development of publicly owned housing. Statutory Framework and Powers of Housing Authorities in Montana Under Montana law, a MHA is a separate legal entity from the City and has powers and duties independent of the City. General Powers of a MHA We believe it is important to note that if the City determines to establish a MHA, the MHA will have all the powers granted it by Montana law. As such, except in the limited circumstances related to the City loaning the MHA funds, the City cannot limit, broaden, or control through its own ordinances, the powers and procedures established under Montana law which are related to a MHA. Once established, the MHA acts as an independent entity. As noted above, if the Commission establishes a MHA, the Commission must first adopt an ordinance authorizing the Mayor to appoint seven commissioners to act as the authority. A City official (be it a Commissioner or employee) cannot be appointed to act as a commissioner of a MHA. If the Commission creates a MHA, it is a separate unit of government, and the Commission will have no control over its functions and operations beyond the Mayor’s appointment of the authority’s commissioners. Process for Creation of a MHA Again, even if approved by the City Commission, the ordinance is not effective until it has been adopted by a majority of voters of the City. Even though the MHA would have jurisdiction outside the City limits (see below) the only eligible voters are voters of the City. If the voters approve the ordinance, the City must then file for incorporation of the housing authority with the Montana Secretary of State. Upon incorporation, the housing authority “shall constitute a public body and a body corporate and politic…” 7- 15-4411, MCA. As such, a MHA is a legal entity with specific powers authorized to be established by the City pursuant to statutes adopted by the Montana Legislature. 182 4 | P a g e Boundaries of a MHA The boundaries of a MHA include the City and the area within 10 miles from the territorial boundaries of the City. See attached map showing the City and the area that would be within the MHA’s jurisdiction. The MHA as established by the City cannot include the whole of or any part of another city unless a resolution declaring there is a need for such authority to exercise its powers within the other city has been adopted by the governing body of the other city. 7-15-4413, MCA. Thus, a MHA can operate (including establishing housing projects) outside of the City limits. For purposes of this agenda item, the jurisdiction of the proposed MHA excludes the city of Belgrade. MHA as Non-Profit/Control A MHA in Montana must be not-for-profit and, as noted, is made up of seven commissioners who have a term of office of five years. The commissioners control the powers of a MHA. Once created, the City Commission no longer controls the powers of the authority. See 7-15-4431, MCA – 7-15-4439, MCA. Cooperation The MHA has broad authority under Montana law including cooperating with the State, a county, and other cities on a number of issues, including those enumerated at 7-15-4416, MCA. Rather than include this lengthy list in this memorandum, please consider reviewing the statute at the link provided. See below for more information on cooperative agreements and the City’s financial and operational support of a MHA. Initial Funding/City Advancing Funds An important consideration for the Commission is funding of the authority during its first year and subsequent years. For the first year following incorporation, the City must make an estimate of the expenses and overhead of the housing authority. The Commission must then appropriate such amount to the authority and shall cause such appropriated money to be paid to the MHA as a donation. 7-15-4417, MCA. See State ex rel. Helena Housing Authority v. City Council of City of Helena, 108 Mont. 347 (1939) (determining funding for first year is a mandatory duty of the City once City establishes a MHA). See the unresolved issues section for more information on the amount of such funding. Beyond the first year, the City is not obligated by law to continue to fund the MHA; however, the City may continue to make donations or “advances” to the authority in sums as the City in its discretion may determine. 7-15-4418, MCA. If the City advances money to the MHA beyond the first year, the MHA, when it has money available, must reimburse the City for all advances made to it by way of a loan. 7-15-4419, MCA. Dissolution of a MHA The City Commission may by resolution dissolve a municipal housing authority if, after the lapse of two years, no housing project has been commenced and no contract has been signed by the City Commission with the MHA providing for contributions by the City either in cash or by tax remissions or exemptions in aid or support of any such housing project. 7-15-4422, MCA; 7-15-4423, MCA; 183 5 | P a g e Powers of a MHA Under 7-15-4451, MCA, a MHA shall: “(1) exercise public powers and have all the powers necessary or convenient to carry out and effectuate the purposes of [the MMHAA] including the following powers to: (2) (a) sue and be sued; (b) have a seal and alter the same at pleasure; (c) have perpetual succession; (d) make and execute contracts and other instruments necessary or convenient to the exercise of the powers of the authority; (e) make and from time to time amend and repeal bylaws and rules, not inconsistent with this part and part 45, to carry into effect the powers and purposes of the authority. (3) In addition to all of the other powers herein conferred upon it, an authority may do all things necessary and convenient to carry out the powers expressly given in this part and part 45.” A few other important considerations regarding the powers of a MHA (see 7-15-4458, MCA – 7-15-4462, MCA): • Prepare, carry out, and operate housing projects, • Take over by purchase, lease, or otherwise any housing project located within its boundaries undertaken by any government; • Arrange with the City for the furnishing, planning, replanning, installing, opening, or closing of streets, options, or property rights for the furnishing of property or services in connection with a project; • Lease or rent dwelling or other accommodations or any of the lands, buildings, structures, or facilities embraced in any housing project and to establish and revise the rents or charges therefor; • Provide for low-rent housing for elderly families; • Investigate into living, dwelling, and housing conditions and into the means and methods of improving such conditions; • Enter upon any building or property in order to conduct investigations or to make surveys or soundings; • Make available its findings on conditions to agencies charged with the duty of abating or requiring the correction of nuisances or like conditions or of demolishing unsafe or unsanitary structures; • Purchase lease, obtain options upon, or acquire any real or personal property • Acquire by eminent domain any real property (see 7-15-4460, MCA; 7-15-4462, MCA) • Own, hold clear, and improve property; and • Insure property or operations of the MHA. Payment-in-Lieu of Taxes A MHA may also agree to make payments from its rentals to local and state governments in lieu of taxes. This is discretionary on the part of a MHA. 7-15-4464, MCA; 7-15-4465, MCA. 184 6 | P a g e Insurance An important operational component of the MHA is that it will not be eligible for liability, property, employees benefits, and workers compensation coverage through the Montana Municipal Interlocal Authority. Role of Federal Government in Funding Public Housing At the time of establishment of federal law related to local housing authorities in the 1930s, the federal government took a direct role in providing money to fund public housing, using local housing authorities as its agent to build and operate public housing. Over the past few decades, the federal government has significantly decreased its presence in the provision of public housing. Only a few federal housing funding tools remain. These few remaining tools, including housing choice vouchers and low-income housing tax credits (LIHTC) subsidize housing access indirectly through non-federal housing development and ongoing rent subsidies. Section 8 and Housing Choice Vouchers Section 8 includes two programs: the Housing Choice Voucher program (subsidies families can use to rent housing of their choice in the private market) and the project-based voucher program, which is rental assistance that is attached to a unit of non-federally or privately owned housing. The Housing Choice Voucher program was established in 1974. The HCV program has three primary goals: 1. To provide affordable, stable, and safe housing for households living on very low incomes; 2. To reduce concentrated geographic poverty; and 3. To improve housing and neighborhood choice for families. In Gallatin County, the HCV program is funded by the federal Department of Housing & Urban Development (HUD) and administered by the Montana Department of Commerce’s Montana Housing program. Due to geographical limitations, Montana Housing enters a contractual relationship with non- profit partners throughout Montana to carry out HUD requirements for administering many of the rental assistance programs. These contractors are known as Field Agencies. Bozeman HRDC IX is the Field Agency serving Gallatin, Meagher, and Park counties. There is currently a waiting list for Housing Choice Vouchers in Gallatin County. In many instances, the vouchers do not completely cover the costs of housing. Due to the relatively high rental rates allowed by a high area median income in Gallatin County, even many LIHTC units do not qualify for vouchers. HUD is not creating any new Housing Choice Vouchers. A MHA would need to work with Montana Housing to take over administration of existing vouchers that is provided through HRDC as Montana Housing’s field agent. While local control in a MHA might streamline the ability to project-base vouchers, this capability still exists with state management of the HCV program. The cost for a MHA to take over administration of this program is currently unknown. 185 7 | P a g e Reduction in Federal Financing As noted, since the adoption of the first Federal legislation supporting publicly owned housing in the 1930s, the role of Federal support in direct financial support for low-income housing has significantly decreased. The federal Housing Act of 1937 provided direct financial support from the Federal government for housing projects. This was the case for decades until the Faircloth Amendment, a provision of the Quality Housing and Work Responsibility Act of 1998. The Faircloth Amendment states, “a public housing agency may not use any of the amounts allocated for the agency from the capital fund or operating fund for the purpose of constructing any public housing units, if such construction would result in a net increase from the number of public housing units owned, assisted, or operated by the public housing agency on October 1, 1999, including any public housing units demolished as part of any revitalization effort.” In other words, the Faircloth Amendment prevents housing authorities from constructing and maintaining more public housing units than they had in 1999. A MHA must now operate under “Faircloth Limits,” the number of units eligible for federal funding under the amendment. But because of funding constraints, those limits are often substantially higher than the number of units that housing authorities currently maintain. Since Gallatin County does not have any federally owned units, the creation of a MHA would not allow the MHA to obtain direct federal funding to create any new housing units. Initially, Congress authorized the federal government to issue bonds to finance the development of new public housing and public housing authorities were required to set rents at levels necessary to meet basic operating costs, i.e., no federal subsidies were provided for operations or capital improvements. By the 1950s and 1960s, as properties were aging and as the predominant incomes of new residents were lower than what would be required to adequately maintain the housing, public housing authorities were no longer able to meet operating needs solely based on the rents that residents could afford. A new MHA will not cause the community to receive more federal resources to construct housing or create an abundance of new housing vouchers or provide local access to new sources of funding from the federal government. The history of Federal funding is revealing. As noted, Congress has not provided any funds to build new public housing units since the mid-1990s. And funding for rental assistance has fallen sharply over the last 12 years, largely driven by rigid caps on non-defense discretionary programs that policymakers enacted as part of the Budget Control Act of 2011. Left unchanged, budget caps have driven housing assistance spending to the lowest level since 1980, relative to the size of the economy. Since 1981, there has been no large-scale funding for new public housing at the federal level. One consequence of this funding and regulatory system is that it is difficult for housing authorities to engage in long-term planning, given the uncertainty, or lack of, funding. However, even more importantly, it is difficult under the public housing funding structure to seek long-term mortgage capital, which is essential to the construction and preservation of multifamily housing. 186 8 | P a g e Gallatin County Regional Housing Coalition facilitated by One Valley Community Foundation – Housing Authority Workgroup One Valley Community Foundation facilitates the Regional Housing Coalition (RHC) comprised of community housing stakeholders from around Gallatin County. The RHC formed a workgroup to work with representatives of the petitioners to learn more about housing authorities. The Housing Authority Workgroup held three meetings and transcripts and summaries of these meetings are included in the packet. Key takeaways from the meetings as provided by One Valley Community Foundation are provided here and lightly edited for clarity. The following takeaways are not conclusions of City staff but rather are statements made by participants in the workgroups. Any legal conclusions in the following takeaways regarding the powers of a MHA, bonding, etc. have not been verified by the City Attorney’s Office. Workgroup Meeting #1 Key Takeaways Subject Matter Experts: • Sam Oliver, Executive Director, Missoula Housing Authority • Lori Davidson, former Executive Director, Missoula Housing Authority • Michael O’Neil, Helena Housing Authority Purpose of Housing Authorities The group learned a great deal about the history and use of public housing authorities from the heads of the Missoula and Helena Housing Authorities: • Housing authorities were created as a mechanism to receive federal funds specifically for deeply affordable housing development/ownership, and that the overwhelming majority of these funds no longer exist. • Housing authorities can operate as a public entity. A nonprofit can also serve the core functions of a housing authority. • n the State of Montana, housing authorities do not have special powers to initiate bonds that either Gallatin County or City of Bozeman do not already have. • Public housing authorities are less cost effective than nonprofit housing authorities, and are eligible for fewer funding options. HRDC already acts as a housing authority for the region as they receive and disperse all the public funding streams that would be accessible to a MHA. Workgroup Meeting #2 Key Takeaways Subject Matter Experts: • Daniel Sidder, Director of Housing Whitefish • Nathan Bilyeu, Bond Counsel, Gallatin County and Bond Counsel, Montana Board of Housing Housing Authorities as Non-Profits Daniel Sidder, the Executive Director of Housing Whitefish, explained that the Whitefish Housing Authority created a nonprofit arm called Housing Whitefish. This was due to the fact that the Whitefish Housing Authority was having difficulty raising funds for the development of affordable housing, and a nonprofit structure could access funding streams that the housing authority is restricted from (e.g. private and philanthropic dollars). 187 9 | P a g e State Limitations on Public Housing Ownership Nathan Bilyeu indicated the State of Montana has placed statutory income limitations on housing authority property ownership. • County housing authorities only allowed to own or manage property for residents “of low income”, meaning a county housing authority cannot own “mixed-income” buildings that include market rate or workforce attainable/missing middle housing (MCA 7-15-2121). • This means that technically speaking, the City of Bozeman could build, own, and rent workforce attainable/ missing middle housing, but a Housing Authority could not. • Nathan [Bilyeu] indicated that the statutory language regarding housing authorities is outdated and highlights a need for legislative changes to allow Montana housing authorities to be more effective. Local Bonding Significant time was spent on this topic as it is central to the petitioners’ vision and is the crux of the conversation. • There is potential for using a revenue bond as an enterprise fund similar to what is used for the creation of water treatment plants. What would be needed is a bank willing to take on the security without any tax backing. (Note: A revenue bond pays itself back using revenue generated by the entity created by the bond). Securing this type of financing at a large scale would be exceedingly difficult. • Further exploration into the nuances of bonding is needed. Workgroup Meeting #3 Key Takeaways Subject Matter Experts: Dan Silverman, Vice President of Public Affairs, Housing Opportunities Commission, Montgomery County Maryland Zachary Marks, Senior Vice President, Real Estate, Housing Opportunities Commission, Montgomery County Maryland Robert Struckman, Senior Western Field Representative, AFL-CIO One Valley Community Foundation has not completed its summary for this meeting. A recording of the Workgroup Meeting is available on YouTube. Montgomery County, Maryland Housing Authority The petitioners indicate interest in using a financial tool created by the Montgomery County Maryland housing authority, the Housing Opportunities Commission (HOC). The tool, the Housing Production Fund (HPF), is a revolving loan fund used to drive mixed-income housing development with a significant number of permanently affordable units. The HOC issued $100 million in revenue bonds to provide gap financing to privately developed mixed- income projects during construction and leasing stabilization. Once projects are stabilized, the HOC uses 188 10 | P a g e more traditional housing financial tools to purchase the projects and operate them as public housing. Regardless of whether the units are operated with public ownership, gap financing is a powerful tool that can help the market create long-term affordable housing. City staff met with staff from the Housing Opportunities Commission of Montgomery County (HOC) as part of a regional working group facilitated by One Valley Community Foundation. Officials from the HOC opined that using a powerful financial tool like the HPF does not necessarily require the legacy structure of a housing authority. “As far as a public housing authority, I think the only reason to go that route is if you're trying to get additional federal funds, whether it's vouchers or any other authorities you would need a housing authority for. But for this [concept of social housing in your region], I don't think there's any particular advantage." (Ken Silverman, Vice President of Government Affairs for the HOC) If the housing authority structure had not existed for decades under a legal framework unique to Maryland, an authority would not have been necessary to use the HPF tool. Housing authorities in Maryland operate under different enabling legislation than housing authorities in Montana. For example, the enumerated powers of a housing authority in Maryland includes “allow[ing] a number of residents of a housing project [] to have incomes above the levels for persons of eligible income, if the number does not exceed the percentage allowed in the [housing authority’s] articles of incorporation, which may not exceed 80%.” Md. Code Ann., Housing & Community Development, § 12- 503. Maryland thus permits a housing authority to develop and operate a housing project that includes a majority of market rate housing. In Montana, the same level of flexibility for a MHA does not appear to exist. Under Montana law, a MHA may only establish a housing project “to provide safe and sanitary dwelling accommodations for persons of low income.” 7-15-4402(12), MCA. Persons of low income means, “persons or families who lack the amount of income that is necessary, as determined by the authority undertaking the housing project, to enable them without financial assistance, to live in decent, safe, and sanitary dwellings without overcrowding.” 7-15-4402(16), MCA. While the MMHAA does not set a percentage of the area median income as a threshold for a person of low income (leaving that determination to the MHA), Montana law clearly does not authorize a MHA to develop mixed low- income and market-rate housing. Financing & Bonding Powers of a Housing Authority in Montana The MMHAA authorizes a MHA to procure financing independent of the City. As noted above, the City may grant or loan the MHA funds. In addition, establishing a MHA will authorize the MHA to issue bonds. 7-15-4501, MCA. The bonding authority of a MHA is independent of the bonding authority of a municipality. The bonds the MHA may issue are of two type types. First, the bonds a MHA issues can be payable “exclusively from the income and revenues of the housing project financed with the proceeds of such bonds or with such proceeds together with the proceeds of a grant from the federal government to aid in financing the construction thereof.” Secondly, the bonds may be payable: 189 11 | P a g e “exclusively from the income and revenues of certain designated housing projects, whether or not they were financed in whole or in part with the proceeds of such bonds; provided, however, that the credit of the authority shall not be pledged to the payment of such bonds, but such bonds shall be payable only (and the bonds shall so state on their face) from the revenues of the designated housing project or projects and the funds received from the sale or disposal thereof and, if the authority so determines, shall be additionally secured by a trust indenture pledging such revenues or, in certain instances as hereinafter provided, by a mortgage of the property comprising such designated housing project or projects and the revenue therefrom.” The bonds issued by a MHA are not, pursuant to Montana law, a debt of a city or of the state and “neither the state nor any such city or municipality shall be liable thereon, nor in any event shall they be payable out of any funds or properties other than those of the authority.” 7-15-4503, MCA. In addition to the authority of a MHA to issue bonds, an authority has the power to borrow money. 7-5- 4502, MCA. Interestingly, in connection with a loan, the MHA may agree to “limitations upon its right to dispose of any housing project or to undertake additional housing projects” and also “in connection with any loan by a government, to agree to limitations upon the exercise of any powers conferred upon the authority [pursuant to the MMHAA].” Another important consideration is whether a municipality, absent creation of a MHA, has the authority to issue bonds similar in nature to those authorized by a MHA; that is, whether a city can issue revenue bonds payable against revenue from rents of an affordable housing project in the same way a MHA can. The City, on its own and without the authority of a MHA, cannot use the bonding provisions of the MMHAA. Second, the Montana statutes governing a city’s general obligation bonds do not list affordable housing as a permissible undertaking. Nor do the Montana statutes on revenue bonds specifically authorize the sale of revenue bonds for affordable housing. City Relationship with MHA (Cooperative Agreement/Funding/Staff Support) As noted above, the MMHAA authorizes the MHA to cooperate with other governmental entities. A standard, although historic, procedure at the creation of a MHA is for the City which created the MHA to enter into a “cooperative agreement” with the MHA. Cooperative agreements implement statutory authority. Under 7-15-4416, MCA, a MHA “shall have the power to arrange with the state, its subdivisions and agencies, and any county, city, or municipality of the state, to the extent that it is within the scope of each of their respective functions”: • To provide services “customarily provided” by the City “to be rendered for the benefit” of the MHA and “the occupants of any housing project”; • To “provide and maintain parks and sewage, water, and other facilities adjacent to or in connection with housing projects”; and 190 12 | P a g e • to change the city or municipality map or to plan, replan, zone, or rezone any part of the city or municipality. In addition, the City may: • grant, sell, convey, or lease any of its property to a housing authority or the United States of America or any agency thereof; and • enter into any agreement to open, close, pave, install, or change the grade of streets, roads, roadways, alleys, sidewalks, or other such facilities; to change the city or municipality map; or to plan, replan, zone, or rezone any part of the city or municipality. If the Commission creates a MHA, the Commission should consider to what extent the City will support the MHA both in the first year and beyond. Services the MHA will most likely at startup and long-term include financial, human resource, information technology, project management, and legal. Absent the City cooperating and providing those services, the MHA commissioners will need to develop the capacity for this work. Finally, the MMHAA also authorizes a City to gift, grant, sell, or lease property to a MHA “without appraisal, public notice, advertisement, or public bidding.” And a city “may incur the entire expense of any such public improvement located within its territorial boundaries without assessment against abutting property owners.” Land Use and Zoning The cooperation statute discussed above authorizes a MHA to “enter into any agreement […] to plan, replan, zone, or rezone any part of the city.” 7-15-4416(2)(a)(ii)(C), MCA. Montana law also states, “[a]ll housing projects of [a MHA] shall be subject to the planning, zoning, sanitary, and building laws, ordinances, and regulations applicable to the locality in which the housing project is situated. 7-15-4455, MCA. Absent a direct contractual provision in a cooperative agreement that would require the City to rezone an area at the request of a MHA, the City retains discretion to exercise its zoning authority. However, in 1940, the Montana Supreme Court, indicated a city, when it creates a MHA, makes an affirmative decision to employ the MHA statutes and thus a city has an ongoing obligation to act in furtherance of the purposes of a MHA. State ex rel. Great Falls Housing Authority v. City of Great Falls, 110 Mont. 318 (1940). The implication is that the general authority of a municipality may be superseded when a city determines to establish a MHA. See 7-15-4440, MCA (“Insofar as the provisions of the [MMHAA] are inconsistent with the provision of any other law, the provisions of the [MMHAA] shall be controlling”). The City Attorney cautions that no Montana case has evaluated this relationship since this 1940s case. The changes in the powers of municipalities established in the 1973 Montana Constitution (particularly, the creation of self-government powers) may affect how a court would review these issues. Nevertheless, it is clear that once a city establishes a MHA the city is obligated to take action in furtherance of the objectives of the MHA possibly implicating the City Commission’s planning zoning authority. 191 13 | P a g e Statutory Findings and Determination Criteria As noted, the Bozeman City Commission must determine: a. Whether unsanitary or unsafe inhabited dwelling accommodation exist in the city and the surrounding area; and/or b. Whether there is a lack of safe or sanitary dwelling accommodation in the city and surrounding area available for all the inhabitants thereof. The criteria required by state law for determining whether dwelling accommodations are unsafe or unsanitary are as follows: 1. The physical condition and age of buildings; 2. The degree of overcrowding; 3. The percentage of land coverage; 4. The light and air available to the inhabitants of such dwelling accommodations; 5. The size and arrangement of the rooms; 6. The sanitary facilities; and 7. The extent to which conditions exist in such buildings which endanger life or property by fire or other causes. We provide a few basic concepts to assist in the required findings: • Unsafe dwelling accommodations requires a review of the structural elements of buildings including: floors, stairs, walls, and roofs; maintaining all common areas such as hallways and stairways; keeping electrical, plumbing, sanitary, heating, ventilation, and elevators; supplying cold and hot water and heat in reasonable amount at reasonable times and; keeping known environmental hazards such as lead paint dust and asbestos from posing a significant danger. • The unsanitary condition of a dwelling refers to situations that may cause the dwelling to be in poor habitable condition or unfit for habitation. For example, it may be the presence of mold or fungus, vermin, rodents, or contaminated air. A dwelling unit for habitation is in such a condition as to be a serious danger to the health and safety of its occupants or the public. The findings provided below are developed when analyzing the City as a whole. Analysis of Statutory Criteria for Determining Whether Dwelling Accommodations are Unsafe or Unsanitary Physical Condition and Age of Buildings The unsafe and unsanitary living conditions of the Great Depression and Progressive Era that led to the creation of housing authorities do not exist in Bozeman today as a result of strict building codes that have been adopted by the State and the City. According to data from the American Community Survey, the median age of homes in Bozeman is 24 years. Nearly 42% of Bozeman’s existing housing was built in the 192 14 | P a g e last two decades – over 22,000 units – with only 7.5% built before 1940. According to a recent NBC Montana story, Bozeman ranks 7th for the newest homes in the nation. As a result, the majority of housing in Bozeman is built to standards that did not exist when housing authorities were first created. Montana first adopted a statewide building code in 1947. The purpose of a building permit is to safeguard the public health, safety, and general welfare through structural strength, means of egress facilities, stability, sanitation, adequate light and ventilation, energy conservation, and safety to life and property from fire and other hazards attributed to the built environment and to provide safety to firefighters and emergency responders during emergency operations. A building permit is required prior to the start of construction for any non-exempt building being built, remodeled, moved, or undergoing a change of occupancy. The City adopted zoning in 1935, through Ordinance 661. It has been in place since and has been updated and replaced over a dozen times as needs of the community have changed. Building codes were adopted in 1937, by Ordinance 784. Given the above, this criterion is not supportive of the required statutory determinations. Degree of Overcrowding Overcrowding for dwelling accommodations is a condition where the number of occupants exceeds the capacity of the dwelling space available. The effects of crowding can be broadly defined as the hazards associated with inadequate space within the dwelling for living, sleeping, and household activities. The U.S. Department of Housing and Urban Development (HUD) asserts that overcrowding essentially means there are too many people in a dwelling for the number of rooms it contains. According to the US Census Bureau, the estimated population of Bozeman, as of July 1, 2022, was 56,123 residents and 20,988 housing units, with that average number of persons per household at 2.26 persons. In Montana, only 1.9% of occupied housing units have more than one person per room. While there certainly are dwellings where occupancy is greater than the average, given the age of Bozeman’s housing stock and the existence of building and zoning codes that are protective of overcrowding, on a city-wide basis this criterion is not supportive of the required statutory determinations. Percentage of Land Coverage Percent of land coverage refers to the human constructions on the land’s surface. Currently, Bozeman has a land area of 20.60 square miles. In 2022, an average of 6.3 dwelling units per acre existed in the City. Another concept to evaluate the overcrowding of land is how much land in Bozeman is undeveloped or vacant. Vacant land is land that is currently developed and ready to be occupied by buildings but is unoccupied. Undeveloped land is land that is not ready to be occupied by buildings (needs to be subdivided; needs infrastructure). Based on data from the 2022 Land Use Inventory report, 10.3% of total land within Bozeman City limits is undeveloped and 10.2% of land is vacant. Given Bozeman’s long history of land use planning and its comprehensive development regulations, when analyzed on a city-wide basis, this criterion is not supportive of the required statutory determinations. 193 15 | P a g e Light and Air Available to Inhabitants The context of this criteria is related to the nature of dense urban neighborhoods at the time of the adoption of federal housing programs and zoning after the Great Depression and were proposed to address health, safety and welfare issues including the provision of light and air. This is a historical term and has been a part of Bozeman’s zoning regulations since the adoption of zoning in the City. In Montana, in the adoption of zoning regulations, a municipality must consider, “the reasonable provision of adequate light and air.” 76-2-304, MCA. The City of Bozeman’s zoning code implements the statutory requirement, thus requiring all new construction to be built with adequate windows, ventilation, and setbacks. The purpose is to ensure that all buildings reasonably provide for adequate light and air. Because Bozeman adopted zoning in 1935 and a building code in 1937, the vast majority or dwelling accommodations in the City have adequate light and air available to the inhabitants. As such, when analyzed on a city-wide basis, this criterion is not supportive of the required statutory determinations. Size and Arrangement of Rooms At the time when the Housing Act of 1937 was enacted, many low-income residents lived in overcrowded, unsanitary, and unsafe housing. Many lived in large tenement buildings, which were low quality, large apartment buildings that could house many families, virtually one on top of another. Construction of the tenement building was typically quick and usually poorly done. Families that lived in the tenements were crammed into 300-400 square foot apartments that featured a single. Tenements were overwhelmingly defective in size, arrangement, supplies of water, warmth, and ventilation; additionally, the yards, sinks, and sewers were in bad condition. In addition to the tenement spaces being poorly built, they were also not very well lit or ventilated. Fresh air could not circulate in the rooms and there was often no plumbing. Because of the overcrowding of these buildings, as well as the poor quality of materials used to construct them, disease ran rampant as well as disasters such as building fires. The size and arrangement of the rooms in these tenements led to overcrowded, run-down buildings, lack of air and light, and low-quality living conditions. Since the vast majority of Bozeman’s housing stock was built after the implementation of modern zoning and building codes, on city-wide basis, this criterion is not supportive of the required statutory determinations. Sanitary Facilities This criterion evaluates whether sanitary sewage disposal is available to dwelling accommodations in the City and surrounding area. As noted, the majority of Bozeman’s current housing stock has been constructed after the establishment of zoning and building codes and after the establishment of laws regulating disposal of sewage. In addition, the City has a modern Water Reclamation Facility (WRF). Within the City of Bozeman, the majority of existing development is connected to the City’s WRF. It is undeniable that some of the sanitary sewage facilities within the area of the proposed MHA (specifically, outside the City) may have exceeded the useful life of the facility and may be inadequately treating sewage. However, when this criterion is evaluated on a whole, given the current legal framework for 194 16 | P a g e sanitary facilities and the age of the housing stock, this criterion is not supportive of the required statutory determinations. Another aspect the Commission should consider is potable water. The vast majority of dwelling accommodations within the City are connected to the City’s potable water system. Outside the City, many properties have individual wells. While there may be issues of water quality with individual wells, when the criteria is evaluated on a city-wide basis, clean water for domestic purposes is available. Extent to which Conditions Exists which Endanger Life or Property by Fire and Other Causes As noted, the majority of the housing stock in Bozeman has been constructed after the establishment of building and zoning codes the purpose of which is to be protective of life and property. Because the State of Montana has not authorized local governments to adopt the International Property Maintenance Code (IPMC), it is undeniable that as housing ages, a lack of maintenance may result in unsafe conditions. Without the ability to enforce the IPMC, the City’s ability to ensure all residential structures in the community are free from conditions which may endanger life or property. The only building and fire inspections that occur outside of Bozeman City limits are those conducted by the State of Montana. The City does not have building and fire inspection authority outside of City limits. This will not change if a MHA is established. Bozeman Municipal Code states that all developments must be planned, designed, constructed, and maintained so as to minimize risk of fire and to permit the effective and efficient suppression of fires in order to protect persons and property. The placement of structures must minimize the potential for flame spread and permit adequate access for firefighting equipment, and adequate firefighting facilities must be provided, including an adequate and accessible water supply and water distribution system. Additionally, National Fire Protection Association standards for hydrant systems must be met. Occasionally, the fire department receives calls from residents with concerns about fire safety in residential units. The fire department receives roughly 24 complaints annually regarding the safety of multifamily residential units. These complaints can vary from landlord tenant issues like mold, heat not working, ownership not keeping up with routine maintenance, etc. to actual life safety building and fire code issues. Unfortunately, the fire department has no jurisdiction or authority over single family homes, so when these calls come in, the fire department can only give advice and recommendations. The building department sporadically receives calls from the public regarding building safety and dilapidated structures. Unfortunately, absent the authority to adopt and enforce the IPMC, the building inspectors lack jurisdiction to inspect unsafe and unsanitary conditions on private property without consent of the property owner. Given the above, when considering this criterion on a city-wide basis and given the age of Bozeman’s housing stock and the existence of comprehensive building and fire codes and inspections, this criterion is not supportive of the required statutory determinations. 195 17 | P a g e Conclusion The increase in the availability of rentals is important to our conclusion. The City has seen a recent surge in apartment construction resulting in an apartment vacancy rate in Bozeman up significantly from an annual average of 1.3% in 2021 and 1.5% in 2022 to a present vacancy rate of 8.2% (“Bozeman 2023 Economic and Market Update”, Economic and Planning Systems, Inc.). After reviewing the findings and criterion required by state law, staff does not find that the criterion have been met. When considered on a city-wide basis, unsafe and unsanitary dwelling accommodations, as defined by the criterion are uncommon in Bozeman. Additionally, we cannot find there is a lack of safe and sanitary dwelling accommodations in the City and surrounding area. Unhoused Encampments We provide the following analysis to address the relationship between unhoused encampments and the required statutory determinations and criteria to establish a MHA. We believe an important consideration in context of the petition is whether establishing a MHA is a viable mechanism to ensure those who are experiencing homeless can obtain affordable and stable housing. In this consideration, we suggest the Commission distinguish between the City’s (and its partners’) efforts related to providing emergency, transitional, and affordable housing on one hand and the City’s efforts related to health and safety of the urban encampments on the other. While Bozeman has undeniably experienced significant growth in the number of unhoused individuals over the past few years, a variety of factors influence whether someone has access to safe and stable housing. These include loss of income, change in family structure, the high cost and low availability of housing, and issues related to physical and mental health and substance abuse. We recognize that prior to the Covid pandemic Bozeman’s vacancy rate for rental housing was low and this was only exacerbated by the pandemic. The increase in persons experiencing homelessness in Bozeman is clearly a result of, in part, a lack of affordable housing. The City, and its partners including the HRDC, Family Promise, etc. have made significant efforts to fund services to the unhoused including establishing programs for emergency shelters, programs for transitional housing, and grants for the development of affordable housing units. For HRDC’s development of a 24/7/365 emergency shelter, the City allocated $241,920 in 2023, to keep the shelter open year-round and Gallatin County donated $2 million for the construction of a new shelter. HRDC plans to spend upwards of $15 million over the next 12 to 18 months to complete the shelter. Yearly operating costs are expected to hover around $2M. The shelter will offer 130 beds and six family suites for the area’s homeless population, and include resources for health care, addiction treatment and housing assistance. Clearly, the effort to develop a 24/7/365 shelter available to all persons experiencing homelessness will still require focused effort on the part of all in our community but significant progress is being made. 196 18 | P a g e In addition to development for an emergency shelter, other opportunities exist for the unhoused to gain access to emergency and transitional housing. For information please see HRDC’s homeless services webpage and the webpage for Family Promise of Gallatin Valley. In addition, it is clear there are indications the City’s efforts to address the affordable housing crisis may be making a difference. As noted, rental vacancy rates have increased and rental prices are stabilizing. And over the past two years, the City and its partner, the Gallatin Housing Impact Fund, have committed over $15.8 million to assist in the development of 592 units of affordable housing and 1,774 new housing units. For more information, please see the Community Housing Program Update from September 12, 2023. Not only are the City’s financial tools making a difference, but the City’s planning and regulatory efforts are also aimed at increasing the total number of housing units in the City to address market conditions. This includes regulatory incentives through the City’s Affordable Housing Ordinance. The above efforts are important to consider when determining whether the existence of the unhoused and urban encampments in Bozeman would necessitate the establishment of a MHA. And the City’s direct services to the unhoused community should also be taken into consideration when determining whether a MHA is a viable tool to address urban camping. Foremost, we suggest the Commission consider the recent cleanup efforts and the current work to establish the Neighborhood Services program. In 2022, and again in June of 2023 (and recently in an effort to begin working under Ordinance 2147), City staff coordinated several projects to remove abandoned vehicles, clean garbage, and connect those in the encampments with services. Given the City’s efforts on multiple fronts, and when considering the statutory determinations on a city- wide basis, Staff finds the conditions facing the unhoused are not supportive of the required statutory determinations. Impact on Existing Housing Programs Establishing a MHA, because of the challenges with financing discussed above, may result in the City needing to significantly assist the MHA. This could result in the City having to make decisions about the allocation of scarce housing resources. Currently, the City’s Community Housing fund was allocated $3.4m of general fund money to provide financial incentives to the development of affordable housing. The MHA may face challenges to raise sufficient capital to construct a meaningful project without direct subsidy from the City. Because there is no current identified MHA project, it is not known how the first or subsequent projects will be funded. Given the above, to address the lack of affordable housing in the community generally, in terms of not only Bozeman’s growing unhoused population, but also in terms of Bozeman workforce and business vitality, the Commission should consider whether providing financial assistance to a MHA would be the best use of scarce affordable housing resources. The City’s Community Housing Program is using its resources to produce results. A recent presentation to the City Commission showed the following metrics of success: 197 19 | P a g e • 11 mixed and low-income developments • 1,774 new units • 592 income restricted units We believe the Commission should consider the combined efforts the community has been making over the past few years in developing affordable housing. As noted above, in part through the City’s own efforts, the vacancy rate for Bozeman has increased and the price of rental housing stock is showing signs it could be leveling off. The City’s current affordable housing programs has resulted in hundreds of income-restricted housing units. Without the addition of new resources, we believe it is likely the creation of an MHA will divert resources away from the City’s successful community housing efforts. Next Steps Depending on the decision of the Commission, staff will bring back an ordinance establishing the MHA authorizing the Mayor to appoint seven commissioners to act as the MHA and preparing the same for an election or bring a resolution denying the petition. Recommended Motions Option 1: (establishing a MHA): Having considered public comment and based on the findings articulated by the Commission, I move establish a municipal housing authority for Bozeman and the area within 10 miles of the city limits and request the City Manager bring the Ordinance to the Commission for provisional adoption authorizing the Mayor to appoint the seven commissioners. Option 2 (denying the petition): Having considered public comment, I hereby move to adopt the findings in the staff report dated December 12, 2023, and move to deny the petition and request the City Manager present to the Commission a resolution denying the petition. Unresolved Issues Costs of Establishing a MHA We have not estimated the amount of money the City must provide to the MHA to fund the first year of its operations. This amount would most likely include standard personnel and operating costs such as office facilities, insurance, information technology, other equipment, legal and financial services, and project management. In addition, as no specific housing project or financing tool has been identified, the exact financing package a MHA would develop to finance the construction and operation of a housing project is unresolved and as such the City’s long-term support of a MHA project is unknown. City Bonding & Mill Levy/Creating a Housing Production Fund The petitioners indicated an interest in using the Housing Production Fund (HPF) tool as it exists in Montgomery County, Maryland. While we determined that Montana law does not allow MHA to own market rate housing units and it may only own and operate low-income units, a large revolving loan fund could be valuable in stimulating affordable housing. We have not yet ascertained whether Montgomery County HOC’s method of creating a revenue stream against which revenue bonds could be issued is legal in Montana. A newly created MHA would have no revenue against which to bond without establishing a 198 20 | P a g e legal source of revenue against which bonds may be issued. It would have no portfolio of units generating income and no immediate source of equity to build an income generating project. Discovering legal, bondable revenue sources is essential to making revenue bonds a viable source of revolving loan funds for a new MHA. More research about what is possible is required to make these determinations. Finally, if the Commission is interested in evaluating options for the City to financially support a MHA we will need to conduct further research, including discussions with the City’s bond counsel. Attachments 08-07-23 Petition for Municipal Housing Authority.pdf Meeting Transcript - RHC Housing Authority Workgroup Meeting #1.pdf Meeting Transcript - RHC Housing Authority Workgroup Meeting #2.pdf Meeting Summary - Workgroup Meeting #1.pdf Meeting Summary - Workgroup Meeting #2.pdf Housing Authority Map.pdf Housing Authorities in Montana.pdf 199 200 201 202 203 204 HOUSING AUTHORITIES IN MONTANA These Housing Authorities may have public housing units, project based units and vouchers available for those in need of housing assistance. Anaconda Housing Authority 10 Main St PO Box 1350 Anaconda MT 59711 406-563-2921 (PHONE) 406-563-5309 (FAX) Apsaalooke Nation Housing Authority PO Box 99 Crow Agency MT 59022 406-638-2665 (PHONE) 406-638-2668 (FAX) Billings Housing Authority 2415 1st Ave N Billings MT 59101 406-338-5031 (PHONE) 406-245-0387 (FAX) Blackfeet Housing Authority 625 Southwest Boundary Street PO Box 1350 Browning MT 59417 406-338-5031 (PHONE) Butte Housing Authority 220 Curtis Street Butte MT 59701 406-782-6461 (PHONE) 406-782-6473 (FAX) Chippewa-Cree Housing Authority 75 Laredo Road RR1 Box 567 Box Elder MT 59521 406-395-4370 (PHONE) 406-395-4249 (FAX) Dawson County Housing Authority 1032 6th Street SW Glendive MT 59270 406-433-1978 (PHONE) 406-433-8115 (FAX) Fort Belknap Housing Authority Route L, PO Box 61 Harlem MT 59526 406-353-2601 (PHONE) Fort Peck Housing Authority 503 6th Avenue PO Box 667 Poplar MT 59255 406-768-3459 (PHONE) 406-768-5489 (FAX) Glasgow Housing Authority 435 Division Street PO Box 1126 Glasgow MT 59230 406-228-4942 (PHONE) 406-228-8062 (FAX) Great Falls Housing Authority 1500 Chowen Springs Loop Great Falls MT 59405 406-453-4311 (PHONE) 406-727-5566 (FAX) Helena Housing Authority 812 Abbey Street Helena MT 59601 406-442-7970 (PHONE) 406-442-0574 (FAX) Miles City Housing Authority 310 N. Jordan Miles City MT 59301 406-234-3433 (PHONE) Missoula Housing Authority 1235 34th Street Missoula MT 59801 406-549-4113 (PHONE) 406-549-6406 (FAX) Montana Department of Commerce 301 S Park Suite 240 PO Box 200545 Helena MT 59620 406-841-2830 (PHONE) 406-841-2810 (FAX) Northern Cheyenne Housing Authority Hwy 39N PO Box 327 Lame Deer MT 59043 406-477-6419 (PHONE) Poplar Housing Authority (City of) 315 G St W PO Box 667 Poplar MT 59255 406-768-3240 (PHONE) Richland County Housing Authority 1032 6th Street SW Sidney MT 59270 406-443-1978 (PHONE) 406-433-8115 (FAX) Ronan Housing Authority 21 2nd Ave SW PO Box 128 Ronan MT 59864 406-676-5900 (PHONE) 406-676-5902 (FAX) Salish & Kootenai Housing Authority 56243 Highway 93 N PO Box 38 Pablo MT 59855 406-675-4491 (PHONE) 406-675-4495 (FAX) Whitefish Housing Authority 100 Fourth Street E Whitefish MT 59937 406-862-4143 (PHONE) 406-862-4165 (FAX) 205 206 207 208 209 210 211 212 213 214 215 216 RHC Housing Authority Workgroup Meeting #1 | 1Initiative of One Valley Community Foundation MEETING SUMMARY: Regional Housing Coalition Housing Authority Workgroup Meeting #1 10.23.2023 | 12:30pm-2:00pm MEETING #1 KEY TAKEAWAYS NEED FOR STATE FUNDING The heads of the Missoula and Helena Housing Authorities argued that the State should provide $100m annually for affordable housing development, either through grants or tax incentives. They stressed that Montana is one of the few states in the country that doesn’t allocate general fund dollars for some type of affordable housing development. PURPOSE OF HOUSING AUTHORITIES The group learned a great deal about the history and use of public housing authorities (PHA’s) from the heads of the Missoula and Helena Housing Authorities. • PHA’s were created as a mechanism to receive federal funds specifically for deeply affordable housing development/ownership, and that the overwhelming majority of these funds no longer exist. • Housing Authorities can operate as a public entity. A nonprofit can also serve the core functions of a PHA. • In the State of Montana, PHA’s do not have special powers to initiate bonds that either Gallatin County or City of Bozeman do not already have. • PHA’s are less cost effective than nonprofit housing authorities, and are eligible for fewer funding options. • HRDC already acts as a PHA for the region as they receive and disperse all the public funding streams that would be accessible to a PHA. PARTICIPANTS • Jennifer Boyer Gallatin County Commission • Zeth Stone Bozeman DSA • Elizabeth Marum Bozeman DSA • Renata Munfrada City of Bozeman • David Fine City of Bozeman • Brit Fontenot City of Bozeman • Benjamin Finegan Bozeman Tenants United • Heather Grenier HRDC IX • Kara Meier Bozeman Health • Christel Chvilicek Family Promise • Sam Oliver Missoula Housing Authority - Subject Matter Expert • Lori Davidson Missoula Housing Authority - Subject Matter Expert • Michael O’Neil Helena Housing Authority - Subject Matter Expert • Mark Bond One Valley Community Foundation - Facilitator 217 RHC Housing Authority Workgroup Meeting #1 | 2Initiative of One Valley Community Foundation FEDERAL TRENDS The federal government has trended away from public housing ownership, (e.g. funding reductions in the ‘80’s and the Faircloth amendment of 1999). • The Bozeman area already is unable to effectively disperse all the rental assistance vouchers allocated to them through HRDC. VISION OF SOCIAL HOUSING The petitioners’ hope for a PHA is to ensure transparency by utilizing a public housing mechanism. They envision housing that is publicly owned and aimed at serving “mixed-income”, including market rate, workforce attainable/ missing middle housing, and deeply affordable housing. • This is a different model than what PHA’s are traditionally intended for, as they are traditionally built to assist very low income households. • The petitioners’ vision is for housing that would be financed using large-scale municipal revenue bonds without voter approval, and rents from the publicly owned units will pay back the bonds. • The petitioners would not want to utilize conduit bonds as they can be given to nonprofit or not-for-profit organizations, which goes against their aims of the transparency offered by a public entity like a PHA. • All housing development under the petitioners’ model would exclusively utilize unionized contractors. 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 RHC Housing Authority Workgroup Meeting #2 | 1Initiative of One Valley Community Foundation MEETING SUMMARY: Regional Housing Coalition Housing Authority Workgroup Meeting #2 11.8.2023 | 12:30pm-2:00pm MEETING #2 KEY TAKEAWAYS PARTICIPANTS • Mark Bond Committee Engagement Manager, One Valley Community Foundation • Daniel Sidder Director of Housing Whitefish • Renata Munfrada Community Housing Program Coordinator, City of Bozeman • Jennifer Boyer Gallatin County Commission • Elizabeth Marum Member of Bozeman DSA • Chris Austin Member of Bozeman DSA Housing Working Group • Nathan Bilyeu Bond Counsel, Gallatin County • Heather Grenier HRDC IX • David Fine Housing and Urban Renewal Program Coordinator, City of Bozeman • Christel Chvilicek Executive Director, Family Promise • Alanah Griffith Pro Bono Counsel, Big Sky Housing Trust PHA’S AS NONPROFITS Daniel Sidder, the Executive Director of Housing Whitefish, explained that the Whitefish Housing Authority created a nonprofit arm of their PHA called Housing Whitefish. This was due to the fact that the Whitefish PHA was having difficulty raising funds for the development of affordable housing, and a nonprofit structure could access funding streams that the PHA is restricted from (e.g. private and philanthropic dollars). STATE LIMITATIONS ON PUBLIC HOUSING OWNERSHIP Nathan Bilyeu, general counsel to the Montana Board of Housing and bond counsel to Gallatin County, indicated that the State of Montana has placed statutory income limitations on PHA property ownership. • PHA’s that serve counties are only allowed to own or manage property for residents “of low income”, meaning PHA’s cannot own “mixed-income” buildings that include market rate or workforce attainable/missing middle housing (MCA 7-15-2121). • This means that technically speaking, the City of Bozeman could build, own, and rent workforce attainable/ missing middle housing, but a Housing Authority could not. • Nathan indicated that the statutory language regarding housing authorities is outdated and highlights a need for legislative changes to allow Montana housing authorities to be more effective. LOCAL BONDING Significant time was spent on this topic as it is central to the petitioners’ vision and is the crux of the conversation. • Voter approval is needed for most housing bond options currently available locally, including any bonds issued through a potential PHA. Past attempts to this end have been unsuccessful in Gallatin County. • There is potential for using a revenue bond as an enterprise fund similar to what is used for the creation of water treatment plants. What would be needed is a bank willing to take on the security without any tax backing. (Note: A revenue bond pays itself back using revenue generated by the entity created by the bond). Securing this type of financing at a large scale would be exceedingly difficult. • Further exploration into the nuances of bonding is needed. 242 Memorandum REPORT TO:City Commission FROM:Melissa Hodnett, Finance Director SUBJECT:Resolution 5545 Establishing Animal License Fees MEETING DATE:December 12, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Move to approve Resolution 5545 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: Section 8.02.020 Bozeman Municipal Code (BMC) requires that every person, other than owners or keepers of commercial kennels, owning, keeping, or harboring any dog or cat over six months of age within the corporate limits of Bozeman shall cause such dog or cat to be registered, numbered, and licensed annually with the city department of finance and shall pay for such license an amount as set by resolution of the city commission. Until recently, all pet licensing renewals were done manually on an annual basis, and payments could only be taken in person or by mail. A new contract with Open Gov, Inc. was approved by the City Commission on November 14, 2023 which allows citizens to apply for and renew their pet licenses online. With the implementation of the new software, the finance department analyzed the fees we are currently charging for pet licenses, which have not been increased for more than 20 years. The rates proposed were developed to support the cost of the new software and personnel assigned to billing and collecting animal license fees, in addition to comparisons to neighboring communities to ensure reasonableness. UNRESOLVED ISSUES:None ALTERNATIVES:The City could continue to support the cost of collecting animal licensing fees with property tax and other discretionary General Fund Revenues. 243 FISCAL EFFECTS:The City is estimated to generate approximately $60K in revenues per year with the increased fees proposed. The revenue goes into the General Fund where it supports payment for the licensing software, staff time dedicated to billing and collection of licensing fees, and animal control officers. The remaining program costs are covered by property tax revenues. Attachments: 23.12.05 FY24 Fee Change Notice Animal License.docx 23.12.05-Resolution to Establish Animal License Fees.docx Report compiled on: August 10, 2023 244 NOTICE HEARING ON THE ADOPTION OF COMMISSION RESOLUTION NO. 5545 ESTABLISHING ANIMAL LICENSING FEES FOR THE CITY OF BOZEMAN. NOTICE IS HEREBY GIVEN, that said Commission Resolution No. 5545, is now on file in the office of the City Clerk of the City of Bozeman, subject to inspection of all persons interested, for a period of six (6) days from the date of first publication; that Tuesday, December 5, 2023, at 6:00 p.m. at a regular session of the Commission of the City of Bozeman. This has been designated as the time and place when and where the Commission will hear and pass upon any and all objections that may be made to the final passage and adoption of Commission Resolution No. 5545 and the rate setting; and that said Resolution will be finally passed and adopted at said regular session of said Commission, subject to such corrections and amendments that may be made upon objections made and filed with the City Clerk as provided by law. Under Commission Resolution No. 5545, animal licensing fees are proposed to be effective starting January 1, 2024. If you have a disability that requires assistance, please contact the City of Bozeman’s ADA Coordinator, Mike Gray, mgray@bozeman.net, at 582-3232 (TDD 582-2301). If you have questions about proposed fees, please contact Finance Director, Melissa Hodnett, mhodnett@bozeman.net at 582-2318. Dated this 20 th day of November, 2023. __________________________________ Mike Maas, City Clerk Legal Ad Publish: Saturday, November 25, 2023 Saturday, December 2, 2023 245 Version February 2023 RESOLUTION 5545 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANAESTABLISHING ANIMAL LICENSE FEES WHEREAS,Section 8.02.020 Bozeman Municipal Code (BMC) requires that every person, other than owners or keepers of commercial kennels, owning, keeping, or harboring any dog or cat over six months of age within the corporate limits of Bozeman shall cause such dog or cat to be registered, numbered, and licensed annually with the city department of finance and shall pay for such license an amount as set by resolution of the City Commission. WHEREAS,Section 8.02.060 BMC requires every person that owns, keeps, or harbors an exotic animal shall make application to the city commission for a special license in the manner provided in section 8.02.050 and said license shall only be issued according to procedures and criteria specified therein. WHEREAS,Section 8.02.070 BMC permits up to 15 female domestic chicken (hens) per permit holder and allows the city commission to establish a fee by resolution, and revise from time to time. WHEREAS,Section 8.02 BMC contains all City policies and procedures related to animal licensing and acquiring a license. WHEREAS,the City Commission of the City of Bozeman, following notice and public hearing, resolves to establish a new schedule of fees for pet licenses. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: 246 Version February 2023 Fee Schedule Effective 1/1/24 Animal License Current Fee New Fee Unit Dog Spayed or Neutered $10.00 $25.00 Annually Dog Unaltered $25.00 $40.00 Annually Cat Spayed or Neutered $5.00 $15.00 Annually Cat Unaltered $10.00 $25.00 Annually Kennel License (more than 2 dogs or 2 cats)$50.00 $50.00 Annually Exotic Animal $25.00 $25.00 Annually Chicken Permit 1-6 Hens $25.00 $25.00 One Time Chicken Permit 7-15 Hens $50.00 $50.00 One Time Replacement (lost) Tag Fee $2.00 $5.00 As requested Late Fee $5.00 $5.00 As needed PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the _____ day of ___________________, 20____. ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 247 Memorandum REPORT TO:City Commission FROM:Melissa Hodnett, Finance Director Kaitlin Johnson, Budget Analyst SUBJECT:Resolution 5558, Adoption of the Fiscal Years (FY) 25-29 Capital Improvement Plan (CIP) MEETING DATE:December 12, 2023 AGENDA ITEM TYPE:Finance RECOMMENDATION:Approve Resolution 5558 adopting the FY25-29 CIP 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: We are proud to present to you the City of Bozeman 2025 - 2029 Capital Improvement Plan (CIP). This five-year Capital Improvement Plan (CIP) is a commitment to improving and maintaining the City of Bozeman’s infrastructure, facilities, parks, and roads to aid in the vision of Bozeman being the most livable place. Staff have taken a great deal of time and care in preparing this document and the proposed projects and plans. The CIP includes any planned expenditure of $25,000 or greater, that results in the acquisition of an asset with a useful life of three years or more, with a few exceptions such as large consulting services type projects. The five-year plan includes long-range plans for current facilities while balancing level of service standards, intergenerational equity, and potential rate/assessment impacts. The proposed plan can be found on the City’s website Under Finance and select Budget and Financial Reports at: https://www.bozeman.net/government/finance/budget-and-financial- reports. The CIP is presented in compliance with State and municipal code. State law requires the City to maintain a CIP for Development Impact Fee Funds. This CIP provides the schedules and cost projections required under Montana Code Annotated (MCA) 7-6-1602(2). In Article 5.06 of the adopted City Charter, the City Manager is responsible for preparing and submitting a 248 multi-year capital program to the City Commission no later than December 15th for the ensuing fiscal year. The CIP process begins in September of each year, when Finance works in coordination with City departments and the City Manager’s Office to recommend projects to the City Commission. The proposed CIP is developed in coordination with the City’s many long-range plans such as the Transportation Plan and the Water and Sewer Treatment and Collection Plan. Many of the City’s long-term plans establish level of service standards that are critical to planning for the needs of current and future City residents. In some cases, such as water quality and wastewater discharge, standards are established or guided by outside regulating bodies. Adoption of the CIP does not provide budget authority or bind the City in any way to perform a particular project. The adopted CIP is used as a guide in January through June as City staff work through the budget development process. During this time, departments will identify operational needs, Human Resources and Finance will assist with cost projections for next year, and more extensive financial modeling will occur to balance operational needs, capital needs and revenue projections and requirements. The result is the City Manager’s Recommended Budget which is typically presented to the City Commission in May and June and adopted in June. UNRESOLVED ISSUES: The planning process for capital purchases and capital infrastructure happens in many stages. The proposed CIP is one of the first stages in that process. It is a planning document that will be used to guide future budgetary proposals but does not guarantee funding for any specific project. During budget development, departments will identify operational needs that will require revenues in addition to what is required to complete this capital plan. Additional financial modeling will occur to balance projects, debt issuances and rate/assessment impacts. Projects will not be initiated unless funding is secured. ALTERNATIVES: If the Commission would like to make suggestions for changes to the planned CIP Work Sessions, please do so tonight. FISCAL EFFECTS: The City's Capital Improvement Plan is a mid-range plan, adopted annually 249 that identifies five years plus of capital infrastructure projects, equipment purchases, and other capital purchases that have been identified to maintain or improve City services. The CIP is a planning document and will be used as a guide for future budgetary proposals, but it does not guarantee funding for any specific project or commit the City to future purchases. More extensive financial models and potential rate impacts will be analyzed during the budget process and used to guide the City Manager's Recommended Budget. Attachments: Resolution 5558 - CIP_FY25-29.docx Report compiled on: November 20, 2023 250 RESOLUTION 5558 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, WHEREAS, the City of Bozeman Charter Article 5.07 requires the City Manager to submit a multi- year capital program. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, that:theCapitalImprovement PlanforFiscalYears2025 to2029,asattached hereto and by this reference made a part here to of, is herebyadopted. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 12th day of December, 2023. CYNTHIA L. ANDRUS Mayor ATTEST: MIKE MAAS City Clerk APPROVED AS TO FORM: GREG SULLIVAN City Attorney 251